How PSEi member stocks performed — July 24, 2020
Here’s a quick glance at how PSEi stocks fared on Friday, July 24, 2020.
China June pork imports jump 128.4% year-on-year
BEIJING (Reuters) – China imported 400,000 tonnes of pork in June, customs data showed on Thursday, up 128.4% from the same month a year earlier, as a months-long buying spree continued as importers try to help plug a domestic shortage.
China’s pork output declined by about a fifth in the first half of 2020 after an epidemic of African swine fever killed millions of pigs in the country last year.
The imports mark the fourth straight month of pork shipments of around 400,000 tonnes, double the volume of earlier records.
January to June pork imports were up 142.7% at 2.12 million tonnes.
Imports of pork including offal in June came to 540,000 tonnes, up 102.5% from a year earlier, bringing total imports for this year to end-June to 2.82 million tonnes, the data also showed.
Customs had earlier this month highlighted the huge meat imports in June.
Intake is expected to fall in coming months, however, after China started testing containers of frozen food for the presence of the coronavirus, slowing the trade.
China has also suspended imports from dozens of overseas suppliers after coronavirus outbreaks among workers.
Beef imports including offal in June were 180,000 tonnes, up 31.2% from a year earlier, said customs, with shipments for first-half 2020 reaching 1.01 million tonnes. Offal made up only a fraction of the combined imports.
Renewables industry pushes for ‘green’ stimulus programs
SUPPORTERS of green energy are urging the government to highlight renewables in its economic recovery plan, saying that such a measure will make the economy more resilient while generating jobs.
Ahead of President Rodrigo R. Duterte’s fourth State of the Nation Address, the Power for People (P4P) Coalition said stimulus measures in the pipeline must “build the Filipinos’ resilience against future ecological and economic crises” while mitigating the impact of the global coronavirus pandemic over the short term.
“We need a green stimulus program which at once provides livelihood and transitions our economies towards a sustainable future,” the group said in a statement over the weekend.
P4P reminded the President of previous policy statements boosting renewables development, which it touted as “key” to the recovery.
“Renewable energy development, especially in the form of microgrids, would provide clean and affordable electricity while creating job opportunities and offering solutions for 100% electrification, and is key to national recovery,” it said.
In March, when the coronavirus disease 2019 (COVID-19) was declared a pandemic, the International Energy Agency told world leaders to make large-scale renewable energy investments the core of their governments’ pandemic responses as “it will bring the twin benefits of stimulating economies and accelerating clean energy transitions.”
Both the country’s solar and energy efficiency industries have sought to participate in the government’s post-pandemic stimulus plan.
The coalition also asked the government to expedite refunds to power users after many bills during the lockdown were disputed as too high, and to expand relief for power consumers due to the disruption to livelihoods caused by the pandemic.
In May, complaints mounted due to high electricity bills, leading legislators to probe the power industry and its regulators. Billing issues were blamed on the application of the advisories issued by the Department of Energy and the Energy Regulatory Commission during the quarantine period.
Power companies were unable to deploy meter readers during the quarantine, and they were allowed to bill according to estimated previous consumption. — Adam J. Ang
GOCC subsidies surge in June, led by NFA, PhilHealth
THE national government released P69.161 billion worth of subsidies to government-owned and -controlled corporations (GOCCs) in June, with 83% going to the National Food Authority (NFA) and Philippine Health Insurance Corp. (PhilHealth).
According to the Bureau of the Treasury, June subsidies rose 882.4% year on year and were up 132.1% compared to May levels.
Some 45% or P31.25 billion went to the National Food Authority, up 1,394% higher than the P2.091 billion it had in the same month last year.
PhilHealth received P26.173 billion, which accounts for 37.8% of the total. It did not receive a subsidy in June 2019.
Other GOCCs that received budget support last month were the National Housing Authority with P7.46 billion, the National Irrigation Administration P2.45 billion, and the Small Business Corp. P500 million.
Other GOCCs that received at least P100 million were the Bases Conversion Development Authority, the Subic Bay Metropolitan Authority, and the Philippine Heart Center.
Not receiving financial support during the month were the Social Security System, the Philippine Tobacco Administration, the Philippine Fisheries Development Authority, Intercontinental Broadcasting Corporation (IBC-13), the Credit Information Corp., the National Power Corp., the National Electrification Administration and the Local Water Utilities Administration.
In the six months to June, the government released P169.53 billion worth of subsidies to GOCCs.
The GOCC subsidy budget this year was trimmed by P5.1 billion to P191 billion after the government realigned funds to support the pandemic containment effort.
The government subsidizes GOCCs to cover operational expenses not supported by their revenue. — Beatrice M. Laforga
More fiscal measures needed as inflows dwindle
FISCAL measures to support the economy need to compensate for the major drop in foreign exchange inflows as the pandemic drags on, according to the International Institute of Finance (IIF).
“Foreign exchange flows to emerging markets have dried up and countries like the Philippines have to rely on domestic policy to support the recovery,” IIF Deputy Chief Economist Elina Ribakova told BusinessWorld in an e-mail.
Ms. Ribakova said fiscal spending during this crisis needs to be directed towards health, households, and businesses.
“It is important to explore all (and new) tools to address the pandemic. Swift policy response is critical to support business and consumer confidence,” she added.
As lockdowns shut down most economies, foreign direct investment inflows into the Philippines fell 67.9% year on year to $11 million in April, according to the central bank. This total was the lowest since May 2019.
The passage of tax reform measures is expected to encourage investment by defining the playing field they can expect to operate in. The proposed Corporate Recovery and Tax Incentives for Enterprises Act, which will immediately bring down corporate income tax to 25% from the current 30% and to 20% by 2027, was left pending in Congress before it adjourned.
ARISE (Accelerated Recovery and Investments Stimulus for the Economy) bill, a P1.3-trillion stimulus package with allotments for mass testing, wage subsidies, and assistance for small businesses, among others, also failed to passed Congress before the break.
On the monetary side, the Bangko Sentral ng Pilipinas has slashed key policy rates by 175 basis points (bps) this year, reducing the overnight reverse repurchase, lending, and deposit rates to 2.25%, 2.75%, and 3.75%, respectively.
Reserve requirements for banks have also been cut by a total of 300 bps. The Monetary Board is authorized to reduce by 400 bps this year.
“In the case of the Philippines there is room for further cuts on the margin, but the focus should be on the fiscal policy response,” Ms. Ribakova said. — Luz Wendy T. Noble
PHL, ADB sign $27-million loan to modernize LGUs
THE government and the Asian Development Bank (ADB) signed a $26.5-million (P1.4 billion) loan agreement earlier this month that will improve LGUs’ (local government units) capacity to generate revenue via digitized processes.
In a statement over the weekend, the Department of Finance (DoF) said Finance Secretary Carlos G. Dominguez III and ADB Country Director for the Philippines Kelly Bird signed the agreement on July 1.
The loan has a 28-year maturity period, inclusive of a nine-year grace period. It will take effect this month.
The loan will help support the $29.8-billion Local Governance Reform project.
The ADB approved the loan on June 29.
Mr. Dominguez said the program will improve the capacity of LGUs to assess and appraise property values and allow them to boost revenue from real property taxes. This includes using a digital property valuation database.
“This financial assistance from the ADB… will help LGUs close the digital divide in their respective localities as they pursue property valuation and tax reforms to generate more revenues, in step with President Duterte’s goal to modernize Philippine taxation and spell greater fiscal autonomy for our local governments,” he was quoted as saying.
The program will also enhance the administrative and oversight functions of the Bureau of Local Government Finance (BLGF), an arm of the DoF, over the treasury and assessment operations of local governments.
The project also aims to train licensed property appraisers and assessors and raise property valuation methods to international standards.
The implementing agencies of the project are the BLGF; the Bureau of Internal Revenue; the Budget department; the Department of Interior and Local Government; and the Department of Information and Communications Technology. — Beatrice M. Laforga
PHL improves access to water, sanitation, hygiene facilities
THE Philippines made headway in providing adequate water, sanitation, and hygiene (WASH) facilities in 2019, according to the Philippine Statistics Authority’s (PSA) Annual Poverty Indicators Survey (APIS).
The 2019 APIS indicates that 93.7% of 25.310 million families have access to basic-service level handwashing facilities or handwashing facilities on-premises with soap and water last year, up from 76.9% in 2017.
Those with “limited” access, defined as having a handwashing facility on-premises without soap and/or water, fell to 4.2% from 8.4% previously.
The PSA noted the survey’s questions related to WASH were primarily intended to monitor the achievement of Sustainable Development Goals (SDGs), particularly SDG No. 6, which aims to “ensure availability and sustainable management of water and sanitation for all.”
Around 69.9% of families have a handwashing facility in the form of a fixed facility (sinks or taps) in the dwelling unit in 2019, up from 51.7% in 2017. Meanwhile, those with “mobile objects” such as buckets and fixed facilities in yards and plots account for 13.1% (from 16.1%) and 10.7% of households (from 13.1%), respectively.
Those with no access to handwashing facilities account for 2.8% of all families, down from 13.9% in 2017. In terms of the availability of soap, 82.9% of families have a bar or liquid soap, 43% have detergent soap, while 1% have ”other,” and 0.3% say they use ash, soil, or sand.
In urban areas, 93.9% of families had access to handwashing facilities, compared with 91.8% in rural areas.
Families in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) had the highest share of families with handwashing facilities with limited service and those without such facilities in 2019 at 15.1% and 14.1%, respectively. The share of families with limited services in the region last year rose from 12.4% in 2017, those without handwashing facilities significantly declined from 55.2% previously.
DRINKING WATER
The survey showed that around 96% of 25.310 million families have access to an improved source of drinking water. This compared to around 94% of 24.354 million families in the previous survey.
The top three sources of drinking water were water refilling stations from an improved source, which accounted for 45.2% (up from 37.7%) of the total, followed by piped water into dwellings at 20.4% (from 20.3%), and tube wells or boreholes at 9.7% (from 12%).
Of those families surveyed, 85.2% reported that water was always sufficient. For others, it was either that water was “not available from source” (11.1%), the water source was not “accessible” (1.3%), or that water was “too expensive” (0.4%).
In addition, four in every five families — or 78.8% — did not treat their drinking water to ensure it is safe. This was higher than 76.6% reported previously.
SANITATION
The report surveyed for sanitation facilities, defined by the PSA as those “designed to hygienically separate excreta from human contact.”
In 2019, 81.6% had “basic service-level sanitation” or the use of improved facilities that are not shared with other households, significantly higher than the 73.7% in 2017.
The proportion of families using basic sanitation level services ranged from 32.7% in the BARMM to 90.2% in the Cagayan Valley.
University of Asia and the Pacific (UA&P) School of Economics Senior Economist Cid L. Terosa called the improvements made in WASH “remarkable” and beyond expectations.
“The availability of handwashing, drinking water, and sanitation facilities is correlated with better health conditions… Given the emphasis on handwashing and personal hygiene because of the pandemic, the results seem to show that the government has laid the groundwork for people to assiduously follow health protocols,” Mr. Terosa said in an e-mail.
“Given these results, the government can focus more on conditions for disease transmission that are not related to water and sanitation facilities,” he added.
In a separate e-mail, Asian Institute of Management Economist and Adjunct Faculty, John Paolo R. Rivera said that while these improvements were expected given rising incomes and the implementation of the government’s poverty alleviation programs, much work remains to be done in making these gains sustainable.
“These improvements, particularly in access to water and sanitation, helped in protecting households against coronavirus to some extent as frequent handwashing and good sanitation are key to preventing the spread of the virus. However, it is necessary but not sufficient,” Mr. Rivera said, noting the pandemic has eroded the improvements in reducing poverty due to losses in jobs and incomes.
“Given the impacts of the pandemic, the poverty situation will worsen which will make it more challenging for households to access not only water and sanitation but also other basic necessities such as food, clothing, housing, healthcare. The social amelioration program can only do so much and requires timely and continuous funding to make it sustainable. Otherwise, any gains we made in the battle against poverty will be eroded,” Mr. Rivera explained.
UA&P’s Mr. Terosa said the Philippines will likely show better results in the WASH indicators in future surveys, provided that the country can recover quickly from the economic slump brought about by the pandemic.
“Although development indicators will clearly worsen this year because of the pandemic, my long-term view as regards water and sanitation infrastructure is positive because the country has seemingly achieved sufficient critical mass,” Mr. Terosa said.
“Also, the improvement of water and sanitation facilities can advance the alleviation of poverty in the future since the creation of a healthy society and nation is a prerequisite for greater labor productivity and better human capital.” — Jobo E. Hernandez
Impairment considerations during COVID-19
(First of two parts)
The unprecedented disruption caused by the COVID-19 pandemic has brought economies to a standstill — shutting down markets, halting international and domestic trade, forcing businesses to close, and displacing workers on a massive scale. Governments are grappling with the situation, struggling to come up with measures to combat the disease and preparing record stimulus programs to help keep their respective economies afloat while balancing this against the need to protect their citizens. This pandemic has reset the way we live, dictating what is considered the new normal, and drastically impacting financial markets around the world.
It is turning swiftly into a critical situation, notably for industries such as travel, hospitality, retail and entertainment. Financial markets are reeling and businesses have had to shut down with revenue reduced to zero, dwindling cash, overdue debt, limited accessible to capital, and assets that have become stale, unusable and unproductive. This begs the question: Is there still value left for businesses and the assets that remain in their balance sheets?
Companies reporting their financial performance and condition will be hard-pressed to report the influence of the pandemic on their businesses and on the value of their long-lived assets, including goodwill. These assets are the bread and butter of most companies, comprising a substantial portion of their asset portfolio. Given the unfolding impact of this crisis, there is a rebuttable presumption that the recoverability of their assets may be put into question.
The first part of our previous article published on July 13, COVID-19 Pandemic and its Accounting Implications, briefly discussed the impairment of non-financial assets. We will now discuss the sets of accounting, disclosure and financial reporting matters related to annual and interim impairment review that companies must consider.
TIMING OF ASSESSMENT
For financial reporting purposes, Philippine Accounting Standard (PAS) 36, Impairment, requires an entity to assess, at the end of each reporting period, whether there is any impairment for an entity’s non-financial assets. Non-financial assets include, among others, property, plant and equipment, intangibles, and goodwill. For goodwill and intangible assets with indefinite useful lives, the standard requires an annual impairment test and a testing of when indicators of impairment exist. The reporting period can be quarterly, semi-annual, annual or any other periods that regulations may require. An entity that is required to prepare an interim report (i.e., listed companies and public companies) needs to assess if there are any indicators of impairment or if there is a need to perform impairment testing on its assets at the end of each interim period and not only at year-end.
EXISTENCE OF IMPAIRMENT INDICATORS
Except for the mandatory annual testing for goodwill and intangible assets with indefinite useful lives, an entity must first determine if there are indicators of impairment (i.e., events or changes in circumstances suggesting that the carrying amount of an asset may no longer be recoverable). The pandemic and its corresponding effects (e.g., the Enhanced Community Quarantine) are likely indicators of impairment but the analysis should go beyond the surface. Determining indicators of impairment requires significant judgment, as well as identification of the events and circumstances that really drive and determine the value of the assets. The source of information can be internal or external. High-level indicators might include changes in macroeconomic conditions, industry and market considerations, cost factors, overall financial performance and other relevant entity-specific events. Specific circumstances can include, among others, the decline in stock and commodity prices, fall of market interest rates, manufacturing plant and shop closures, distribution and supply chain issues, reduced demand or selling prices, and limits to accessing capital. Indicators can vary for each business and type of asset, but the assessment must be robust enough before concluding whether such indicators of impairment are present and thus require impairment testing.
PERVASIVE EFFECTS OF THE PANDEMIC
As the search for proper intervention against this pandemic continues, the more uncertain the financial market becomes. Measures must be taken to anticipate further impact from this crisis.
In the second part of this article, we continue our discussion by covering how to estimate the recoverable amount of an asset, the recognition and reversal of impairment, and providing detailed disclosure on assumptions used in impairment assessment.
This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.
Meynard A. Bonoen is an Assurance Partner of SGV & Co.
CHR asks gov’t to divulge real coronavirus score in prisons
By Vann Marlo M. Villegas, Reporter
THE Commission on Human Rights (CHR) has taken the government of President Rodrigo R. Duterte to task for lack of transparency in reporting coronavirus deaths inside the country’s jails and prisons.
“We call out the Bureau of Corrections and the Department of Justice for their lack of transparency and non-cooperation,” the agency said in a statement at the weekend. It added that it would look at the complaints of inmates’ families.
With 215,000 prisoners nationwide, Philippine jails and prisons are overfilled more than five times their official capacity, making it the most overcrowded prison system in the world, according to the World Prison Brief (WPB).
As of 2017, it had 933 jails — seven national prisons and 926 city, district, municipal and provincial jails, which are not enough to contain inmates, three-quarters of whom are at the pre-trial stage, WPB said on its website.
Many jails in the Philippines fail to meet the minimum United Nations standards given inadequate food, poor nutrition and unsanitary conditions.
The commission said prison and detention facilities in the Philippines are among the “direst places.”
The country’s jails had a congestion rate of 534% as of March 2020, it said, citing the Bureau of Jail Management
and Penology.
The country’s prisons, where convicted criminals stay, had a congestion rate of 302% as of December, it added.
The human rights body said it had sent letters to the Justice department seeking the list of inmates who died of the coronavirus and those who had been quarantined. It had not received a response 15 days after, it said.
The statement comes after Jaybee Sebastian, a drug convict at the national penitentiary in Muntinlupa City, supposedly died of the virus.
He was one of those who testified against opposition Senator Leila M. de Lima, who is now in jail for alleged drug trafficking.
The agency said the government should respect its mandate and work with it on various concerns about prisoners and prison workers.
Justice Secretary Menardo I. Guevarra said he had sought the list of dead prisoners from prison officials. He has also ordered the National Bureau of Investigation to probe the deaths of nine high-profile inmates, including Mr. Sebastian.
The Justice chief said they were “trying to uncover strange things happening” at the Bureau of Corrections. “It is not fair to say that the department has not been transparent about the conditions at the BuCor,” he told reporters in a Viber message.
The Human Rights commission said information about the prisoners’ deaths must be divulged so the government can craft measures to contain the pandemic inside jails.
The Justice department last week said 21 prisoners had died of the coronavirus.
COVID-19 infections top 80,000 — DoH
THE Department of Health (DoH) reported 2,110 new coronavirus infections on Sunday, bringing the total to 80,448.
The death toll rose to 1,932 after 39 more patients died, while recoveries increased by 382 to 26,110, it said in a bulletin.
There were now 52,406 active cases, 90% of which were mild, 9% did now show symptoms and less than 1% were either severe or critical, DoH said. More than 1.2 million people have been tested.
DoH on Friday said it takes almost 12 days for COVID-19 (coronavirus disease 2019) cases to double. The death rate was down to 2.6% as of July 22 from 6.7% in April, it said.
Meanwhile, the Food and Drug Administration (FDA) warned the public against buying so-called coronavirus vaccines sold locally or online.
“There is no vaccine which has completed clinical trials to prove its safety and efficacy,” it said in an advisory. “The FDA has not yet approved any vaccine for use against COVID-19.”
The agency said such products pose health risks. “Likewise, selling and dispensing of registered products by unauthorized establishments or individuals is prohibited.”
Also on Sunday, the Philippine Coast Guard reported 77 new coronavirus infections among its staff, bringing the total 503, it said in a statement on Sunday.
The workers had been pulled out from their stations and were given treatment, it said. There were now 248 COVID-19 cases at the agency, it said.
It also said 96 more workers have recovered from the illness, bringing the total of those who have gotten well to 255.
“The Command conducts regular swab tests and ensures that its frontline personnel are equipped with sufficient supplies of vitamins, personal protective equipment sets and other medical supplies in the performance of their duties,” it said.
Meanwhile, the Bureau of Immigration will close its main office in Manila for disinfection on Monday and Tuesday after three employees tested positive for the virus.
Employees at the main office will undergo rapid antibody tests during the two-day suspension of operations, Immigration Commissioner Jaime H. Morente said in a statement. Positive employees must take swab tests for confirmation.
“Given the high number of people who troop to our main building everyday to transact business, we have to take all precautionary measures to prevent the transmission of this virus in our office premises,” he said.
He added that he had approved the recommendation of Deputy Commissioner Aldwin F. Alegre to require officials and employees at the main office to take rapid antibody tests every month. — Vann Marlo M. Villegas
DoLE says P2.5-B fund for OFWs has run out
GOVERNMENT AID for overseas Filipino workers (OFWs) amid a coronavirus pandemic has surpassed its limits, prompting the Labor department to seek more funds.
“It has already exceeded the 250,000 OFW beneficiaries of the P2.5-billion emergency fund for COVID-19-affected migrant workers,” the Department of Labor and Employment (DoLE) said in a statement on Sunday.
The agency had received about half-a-million applications from Filipino migrant workers, half of which were approved, it said.
DoLE said P2.232 billion of the P2.5-billion program fund had been released to beneficiaries as of July 21. Migrant workers get a one-time cash out of P10,000 under the program.
The agency earlier said the funding was only good for 250,000 beneficiaries. It is seeking P2.5 billion more from Congress.
DoLE said more than 100,000 OFWs who got stranded had been sent home to their provinces.
“More than 106,200 overseas Filipino workers repatriated by the government amid the coronavirus pandemic have been transported to their home provinces,” it said. — Gillian M. Cortez
Regional Updates (07/26/20)
Cebu Pacific appeals for standard airport regulations from local governments
BUDGET CARRIER Cebu Pacific has called for common protocols from local governments hosting airports, citing that varying regulations makes it difficult to rebuild their network of flights, especially domestic services. “Without the standardization of these regulations, we’re actually having a hard time rebuilding the network because as each LGU (local government unit) comes up or gives us their requirements, we will also have to inform our passengers on what the requirements are. Everything’s very fluid. That is the challenge for us today,” Candice A. Iyog, Cebu Pacific vice-president for marketing and customer service, said in a virtual presser Friday. “There are a lot of restrictions so that is what we are managing on a day-to-day basis as we rebuild the network. The challenge for us is we do recognize that there is a need to limit air travel to essential travel only, at the same time we need to strike a better balance. Our hope is we start opening domestic to assist in the recovery of the industry,” she added. Ms. Iyog said the Air Carrier Association in the Philippines, wherein the airline is a member, has already sent letters to the Civil Aviation Authority of the Philippines and LGUs requesting for standardized regulations. — Maya M. Padillo
Pangasinan health chief assures province not going back to strict lockdown
PANGASINAN OFFICIALS are not planning to revert the province to a strict lockdown despite recording its highest daily record of positive cases at 23 on July 24. In a statement on Sunday, Provincial Health Officer Anna Ma. Teresa S. de Guzman said Pangasinan, which has one of the biggest populations in the country at about three million, “has not reached the critical zone” based on the classification guidelines from the COVID-19 national task force. As of July 25, the province has recorded 203 cases, with 115 recoveries and 10 deaths. The 78 active cases include 72 in different towns and six in the independent city of Dagupan. Last week, officials of the Dagupan-based Region 1 Medical Center, the biggest government-run hospital in the province, called for a return of the province to the strict enhanced community quarantine category. “Based on our review of the case data in Pangasinan, we really expected that the numbers would go up because we have been conducting expanded mass testing and strengthened our active case finding activities following a directive from Governor Amado I. Espino III,” Ms. De Guzman said in Filipino. Mr. Espino, in the same statement, said the increase in COVID-19 (coronavirus disease 2019) cases may also be partly attributed to returning residents who were stranded elsewhere in the country, mostly in Metro Manila.
Davao airport under review for OFW one-stop-shop
THE DAVAO International Airport (DIA) is undergoing assessment for a one-stop processing center for returning overseas Filipino workers (OFWs) to further disperse international passenger traffic who are required to undergo health and quarantine protocols. “The national government is conducting inspection in Davao International Airport if there is a possibility to establish a one-stop-shop,” said Mayor Sara Duterte-Carpio of Davao City, where the airport is located. Such one-stop-shops have been set up at the airports in Manila, Clark, and Cebu. “In a one-stop-shop, an OFW will be tested and will be brought to a hotel, and once the test result is available, the OFW may proceed to the LGU (local government unit) of destination and proceed to home quarantine, and for those positives, they will be brought to a hospital. The national government is looking if this is doable in DIA,” the mayor said. The city government started implementing last week the requirement for arriving passengers to have a negative RT-PCR test released in the previous 72 hours for immediate exit from the airport. Those who do not have a valid test result can avail of free testing at the airport, but will have to stay at the designated 50-bed holding center for up to 48 hours. — Maya M. Padillo
Bangsamoro lawmakers call for use of P200-M emergency fund for healthcare workers
A RESOLUTION calling on the Bangsamoro Ministry of Health to provide additional incentives to health workers was filed last week, proposing the use of an allocation provided under the regional government’s emergency fund. “Despite Bangsamoro health workers’ deplorable conditions — overworked, underpaid, unsafe, and unsupported — they are now in the forefront of fighting the deadly virus across the nation, to the extent that some health workers have succumbed or fallen victims to the coronavirus,” reads part of the resolution authored by parliament members Amir Mawallil, Baintan Adil-Ampatuan, and Sittie Shahara Mastura. “The salaries of healthcare workers in the country are below the daily minimum cost of living, and fall short compared to the remuneration other countries pay for the same profession, hence, the substantial difference in salaries and benefits of health workers in the country is the main reason that drives Bangsamoro health workers to work abroad,” it said. The resolution proposes the use of a P200-million fund allocated for the health sector under the Quick Response Fund of the Office of the Chief Minister. The Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) has about 2,000 regular health workers. As of July 24, BARMM has recorded 423 coronavirus cases, with 128 recoveries and eight deaths.