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The risk of downplaying Chinese gray zone operations against the Philippines

One year ago, at midnight of June 9, 2019, a Chinese fishing vessel suddenly rammed and sank a wooden Filipino fishing boat, the F/B Gim Vir 1, which was anchored at the Reed Bank. The captain of the ill-fated Gim Vir 1 claimed that the incident was deliberate since the crew of the Chinese vessel saw his fishing vessel before the collision. Ship captain Jonnel Insigne observed that the Chinese vessel turned its lights on seconds before it rammed the Gim Vir 1. It fled the scene with its lights off after the smaller and wooden Filipino boat began to sink with all its catch and equipment.

He told reporters that they expected the Chinese crew would pick them out of the water after their boat sank. The Chinese vessel, however, immediately left the Filipinos alone in the dark, cold, and dangerous waters of the South China Sea. The 22 Filipino fishermen abandoned their boat and struggled to keep themselves afloat and alive for more than six hours. Fortunately, a Vietnamese fishing vessel rescued all the Filipino fishermen.

SPOOKING THE PHILIPPINE NAVY
On Aug. 15, 2019, Philippine Defense Secretary Delfin Lorenzana announced the incursion of several People’s Liberation Army’s Navy (PLAN) warships into the country’s territorial waters without prior coordination with the Armed Forces of the Philippines (AFP). Based on an AFP report written after a routine Maritime Domain Awareness (MDA) operation in the southern Philippine island of Tawi-Tawi, the four Chinese warships passed through the country’s porous southern backdoor. It was then observed that the ships’ sailing pattern appeared to be highly suspicious as they were zigzagging and not sailing straight as civilian ships should do when performing the rights of innocent passage. Thus, these warships’ transit in Philippine waters could not be considered innocent passage because they followed a curved course. Secretary Lorenzana opined that China was taunting the Philippines because the Chinese warships’ Automatic Identification System (AIS) was switched off and ignored the radio communications from the AFP units that were observing their passage in Sibutu Straits in Tawi-Tawi.

On Feb. 17 this year, a PLAN corvette directed its Gun Control Director (GCD) against the Philippine Navy’s (PN) newly acquired anti-submarine corvette the BRP Conrado Yap (PS-39) in the Spratlys. While it was on its way to Rizal (Commodore Reef) Reef Detachment, the BRP Conrad Yap established radar contact with another gray ship, a PLAN corvette with bow number 514. The PS-39 visually observed that PLAN ship’s GCD was pointed on it. The GCD is a mechanical or electronic computer that continuously calculates trigonometric firing solutions used to designate and to track potential targets and transmits targeting data to direct the weapon firing crew. The BRP Conrado Yap’s crew members claimed that the Chinese ship’s gun-firing mechanism was aimed at them. If the corvette’s GCD was indeed pointed at the PS-39, then this is the first time that a PLAN warship directly threatened a Philippine public vessel in the South China Sea.

CHINESE GRAY ZONE OPERATIONS
These maritime incidents are examples of Chinese gray operations conducted against the Philippines. Gray zone operations are “actions in the sea that often blur the between military and non-military platforms, actions, and attribution for events, and are often, but not always, undertaken to advance China’s territorial claims.” They are conducted to keep Chinese aggression at sea below the level of actual naval operation and are performed hidden behind the cloak of deniability. These complicate the littoral states’ ability to effectively respond to China’s expansion in the South China Sea.

Unfortunately, the country’s political leaders have down-played these gray operations conducted against Filipino fishing boats and naval vessels. In the aftermath of the June 9 F/B Gim Vir 1 incident, President Rodrigo Duterte adopted and even parroted the Chinese foreign ministry’s position that “it was an ordinary maritime traffic incident.” Secretary Lorenzana dismissed the Feb. 17 PN-PLAN incident in the West Philippine Sea as a routine matter given that the Chinese navy has no intention of hurting Filipinos even after its corvette directed its GCD against the BRP Conrado Yap. He even asserted his view that China would never attack Philippine vessels and aircraft passing through the disputed waters.

Downplaying or ignoring these incidents enables China to advance its agenda of maritime expansion through distinctly subtle aggressive actions that do not generate serious and effective responses from targeted states like the Philippines. Thus, China finds no more need to embark on a major naval operation to control the disputed waters because it has no need for it. China will eventually gain virtual control over the fishing grounds and strategic waterways in the South China Sea without sparking open conflicts with the littoral states of Southeast Asia.

 

Dr. Renato de Castro is a trustee and convenor of the National Security and East Asian Affairs Program of the Stratbase ADR Institute.

Managing employment contracts in the time of COVID-19

The coronavirus disease 2019 (COVID-19) forced many companies to temporarily close or drastically reduce production and/or services. While restrictions are slowly being lifted, not all establishments have been allowed to operate at full capacity, if at all. Furthermore, people are still discouraged to go out and engage in non-essential activities. This, in turn, affects businesses.

Establishments have been facing difficult decisions with respect to employees considering that employees’ salaries and benefits constitute a significant expense. In deliberating what to do in order to survive, companies must be guided by the principles of law.

For businesses that manage to keep their head above water, the determination may simply be limited to whether or not to adopt a work-from-home or implement a telecommuting arrangement which is highly encouraged by the Department of Labor and Employment (DoLE).

The DoLE also suggests the adoption of any or a combination of the following as an alternative to the termination of employment or closure of business:

1. Transfer of employees to another branch or outlet;

2. Assignment of employees to another function or position in the same or other branch or outlet;

3. Reduction of normal work hours per day or work days per week;

4. Job rotation alternately providing workers with work within the workweek or within the month;

5. Partial closure of the establishment; and

6. Other feasible work arrangements.

The transfer or reassignment of employees to other branches and/or functions will allow management to allocate resources pursuant to the business requirements.

Other options suggested by the DoLE are the reduction of workdays and/or work hours, as well as job rotation. Under these options, the employees will continue to receive their salaries and benefits which are reduced in proportion to the actual days or hours worked. The unworked or reduced hours or days shall not be paid under the principle of “no work, no pay.”

Even with the above-mentioned alternatives, some businesses may have to consider additional means to reduce costs such as the reduction of wages and wage-related benefits. Any reduction must be voluntarily agreed upon in writing by the employer and the employee, and must not exceed six months or the period provided by the collective bargaining agreement, if any. After such a period, the employer and the employee may renew the agreement after review.

Under normal circumstances, all these alternatives may be interpreted as an act of diminution of benefit and/or constructive dismissal for which an employer may be held liable. However, considering the extraordinary circumstance, even the DoLE is advocating for these alternatives in lieu of termination. Thus, the DoLE mandates that the alternatives are temporary and must only be implemented during the Public Health Crisis.

For businesses that are allowed to operate after the lifting of restrictions, but predict that the demand or sales cannot possibly cover operating expenses, an option to consider is Article 301 of the Labor Code which allows the temporary suspension of work due to bona fide suspension of business operations or undertaking for a period not exceeding six months. During this period, employees are placed on a “floating status” and are not entitled to any salary or financial benefit. After the lapse of six months, the employer has the option of recalling the employees back to work, or permanently retrenching them. Failure to exercise any of these options would be tantamount to illegal dismissal for which the employer may be held liable. If recalled back to work, the employer is required to reinstate the employees to their former positions without loss of seniority rights provided they exercise such right not later than one month from resumption of operations.

The most extreme measure to be considered is retrenchment. Retrenchment is the termination of employment initiated by the employer through no fault of and without prejudice to the employees. It is resorted to during periods of business recession, industrial depression, seasonal fluctuations or during lulls occasioned by lack of orders, shortage of materials, conversion of the plant for a new production program or the introduction of new methods, or more efficient machinery or of automation. It is an act of the employer of dismissing employees because of losses in the operation of a business, lack of work, and considerable reduction in the volume of his business.

The prevention of losses sufficiently justifies retrenchment provided that the following requirements are observed:

1. Retrenchment is undertaken to prevent losses, which are not merely de minimis, but substantial, serious, actual, and real, or if only expected, are reasonably imminent as perceived objectively and in good faith by the employer;

2. The employer serves written notices both to the employees and the DoLE at least one month prior to the intended date of retrenchment;

3. The employer pays the retrenched employees separation pay equivalent to one month pay, or at least half month pay for every year of service, whichever is higher;

4. The employer must use fair and reasonable criteria in ascertaining who would be dismissed and retained among the employees; and

5. The retrenchment must be undertaken in good faith.

In a perfect world, all establishments will be able to get back on their feet without resorting to any extraordinary measure affecting employees. However, for most companies, the difficulties arising out of the COVID-19 pandemic do not allow for a perfect scenario. Taking decisive action now may be critical to the survival of the enterprise. Hopefully, the continued existence of business will allow them to survive, thrive, and take care of employees in the future. We cannot allow perfect to be the enemy of good.

The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes only and not offered as and does not constitute legal advice or legal opinion.

 

Martin Luigi G. Samson is a Senior Associate of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW), Davao Branch.

(6382) 224-0996

mgsamson@accralaw.com

Gay rights are civil rights

By The Editorial Board, The New York Times

IN AN EMPHATIC WIN for civil rights, equal justice and common sense, the US Supreme Court ruled on Monday that federal law bars employers from firing workers for being lesbian, gay, bisexual or transgender.

The vote was 6-3. It should have been unanimous.

As Justice Neil Gorsuch explained for the court’s majority, the right result could not be clearer. The federal law at issue, Title VII of the 1964 Civil Rights Act, prohibits employment discrimination “because of sex.” And “an employer who fires an individual for being homosexual or transgender fires that person for traits or actions it would not have questioned in members of a different sex,” Gorsuch wrote. “Sex plays a necessary and undisguisable role in the decision, exactly what Title VII forbids.”

In separate cases consolidated for argument, three plaintiffs — two gay men and a transgender woman — had sued their employers for firing them after learning of their sexual orientation or transgender status.

It does not matter, the court said, whether the employer might have had additional reasons for the firing. “Intentionally burning down a neighbor’s house is arson, even if the perpetrator’s ultimate intention (or motivation) is only to improve the view,” Gorsuch wrote.

Nor can an employer avoid the law’s prohibition by claiming it treats all men the same or all women the same. The bottom line, he wrote, is that Congress wrote a law with intentionally broad language, and “ours is a society of written laws.”

Monday’s decision will soon have ripple effects, including the likely invalidation of the Trump administration’s decision last week to eliminate protections against discrimination in health care for transgender patients.

In a lengthy dissent that sounded like it was written in 1964, Justice Samuel Alito, joined by Justice Clarence Thomas, argued that the court’s job is to interpret statutes to “mean what they conveyed to reasonable people at the time they were written.” It’s hard to imagine these justices applying the same logic to the meaning of the Second Amendment, which reasonable people at the time understood to apply to bayonets and muskets. But we digress.

Alito’s point was that the lawmakers who passed the Civil Rights Act could not possibly have anticipated “sex” to cover discrimination on the basis of sexual orientation or gender identity.

That’s true, of course. They also could not have imagined that it would cover sexual harassment of male employees — and yet in 1998 the Supreme Court found unanimously that it did.

“Statutory prohibitions often go beyond the principal evil to cover reasonably comparable evils, and it is ultimately the provisions of our laws rather than the principal concerns of our legislators by which we are governed,” the court said then, in an opinion written by Justice Antonin Scalia. Gorsuch, who succeeded Scalia on the bench, reiterated this basic concept Monday: “The limits of the drafters’ imagination supply no reason to ignore the law’s demands. When the express terms of a statute give us one answer and extratextual considerations suggest another, it’s no contest. Only the written word is the law, and all persons are entitled to its benefit.”

While we’re on the subject of legislators’ intentions, it is worth noting the historical irony behind the inclusion of “sex” in the civil rights law — which was, after all, targeted primarily at racial discrimination. The term was added at the last minute by Rep. Howard Smith, a staunch segregationist from Virginia, in the hope that lawmakers would see it as a bridge too far and vote down the entire bill. Smith’s failed gambit continues to pay off in ways that he surely never could have dreamed.

Still, there are reasons to be cautious.

Gorsuch’s commitment to textualism, a method of interpreting laws by looking solely to their plain words, achieved a just result in this case, but when applied too rigidly it can lead to very unjust results. In his previous job on a federal appeals court, then-Judge Gorsuch wrote an opinion holding that a trucker could legally be fired for abandoning his broken-down truck in subzero temperatures — based on a wooden reading of the word “operate.” In short, this particular victory for gay rights was based not on the fundamental equality or dignity of gay and transgender Americans, as previous Supreme Court decisions have been; it was based on the meaning of a single word.

The opinion also hints at a potentially serious obstacle on the horizon: claims by employers that being prohibited from discriminating against gay and transgender workers violates their religious convictions. Such claims are likely to find a sympathetic ear among this Supreme Court’s conservative majority, which has repeatedly voted to protect if not promote religion and religious objectors.

For now, however, Monday’s decision is a victory to savor, the next major step in a line of gay rights decisions stretching back nearly a quarter century, and until now written solely by Justice Anthony Kennedy.

Justice Brett Kavanaugh, who succeeded Kennedy in 2018, graciously admitted as much in his own dissent. Although he disagreed with the majority’s opinion, he wrote: “It is appropriate to acknowledge the important victory achieved today by gay and lesbian Americans. Millions of gay and lesbian Americans have worked hard for many decades to achieve equal treatment in fact and in law. They have exhibited extraordinary vision, tenacity and grit — battling often steep odds in the legislative and judicial arenas, not to mention in their daily lives. They have advanced powerful policy arguments and can take pride in today’s result.”

Take pride, indeed.

© 2020 The New York Times

Home is where Singapore’s new casino is

By Andy Mukherjee

THE house arrest of pandemic lockdowns seems to have thrown open the gambling switch in our brains.

How else to rationalize the frothy frenzy across asset classes globally, a madness so complete that the bankrupt car rental firm Hertz Global Holdings Inc. is raising up to $500 million by selling new shares after warning investors of the significant risk that their purchases will be worthless?

A bizarre markets rally is underway amid the worst unemployment scare since the Great Depression. It’s being led by day trading gurus for the coronavirus era, like Barstool Sports’ Dave Portnoy, who’d bought only one stock in his life before the quarantine but thinks Warren Buffett is “washed up.”

The hysteria isn’t limited to the US, or shares. Take the latest Singapore residential property data, which showed a 75% jump in new private home sales in May from the previous month. This at a time when new projects couldn’t be brought to the public and all viewing galleries were shut. What was going on here?

Singaporeans weren’t leaving home and the city’s two casinos were closed, along with other outlets for spending money and relieving stress. So many went online to buy and sell stocks at a pace not seen since a 2013 crash in penny stocks. But that wasn’t enough, for the asset class that stands head and shoulders above everything else in the imagination of the space-constrained Asian financial center is property. And that’s where people shifted their attention. Or, as broker PropNex Realty CEO Ismail Gafoor says, buyers and investors adapted to digital modes of property marketing.

There’s a danger of reading too much into the Singapore numbers. The overall sales figure of 486 units is the worst May for developers since 2008. And it’s entirely possible that many of the 56 buyers of Treasure at Tampines — the bestselling condo development in the eastern suburbs — had done their on-ground research beforehand. Besides, the Singapore regulator has rules against dodgy tricks — such as very large balconies combined with tiny interiors — that give a certain credibility to what prospective customers see in virtual galleries.

Still, the real surprise is that the buyers paid a median S$1,360 ($979) per square foot, 2% more than when the units were first launched in March 2019. The more expensive Florence Residences, another suburban property that first started sales at the same time, saw a 6% higher median price per square foot across the 54 units that sold in May.

PropNex’s characterization of this unusual month as the “new normal” may be an exaggeration. It’s perhaps a not-so-new abnormal, in which people feel compelled to conclude transactions. In March, when the COVID-19 scare was beginning, I wrote about the Black Death in medieval Europe and how it had brought in a wave of consumption (and consumption taxes) because of a sudden feeling among survivors that life was indeed short. Is something similar going on here?

There weren’t many choices for asset purchases in pre-capitalist times, but now there are. An apartment scooped off an online gallery in Singapore, or Hertz shares bought on the Robinhood Markets Inc. trading app, seem to be playing the role that Venetian women’s platform heels did back then. In Hong Kong, where there are serious question marks about the city’s future after Beijing imposes a national security law, dozens of would-be buyers wearing face masks stood in rain. All but one of 94 apartments on sale by China Vanke Co. in its Campton project in central Kowloon was sold in just eight hours.

The pandemic came to us in an epoch of extreme inequalities in incomes and wealth. The poor everywhere are anxious about livelihoods. The affluent are nervous about their cramped lifestyles. The middle class, the typical buyer of Treasure at Tampines, shares both concerns, though perhaps not to the same extent. For the sandwiched classes, writing a down payment check and taking a 15-year mortgage are expressions of optimism in hopeless times, and a chance to scratch the gambling itch.

BLOOMBERG OPINION

Charting a path toward recovery for small businesses

The coronavirus pandemic will long be remembered among the greatest challenges of the modern world, not only because of its long-term impact on the global healthcare system but also because of its effects on the world’s economy.

Estimates of the virus’global impact vary: the Organisation for Economic Co-operation and Development (OECD) predicted that COVID-19 will lower global GDP growth by one-half a percentage point for 2020 (from 2.9 to 2.4%). Bloomberg Economics, meanwhile, warns that full-year GDP growth could fall to zero in a worst-case pandemic scenario.

Worst of all, COVID-19 has an outsized impact on small businesses, many of which have lost revenues to the quarantines imposed by governments worldwide. The same case exists here in the Philippines.

“Of the essential businesses that were allowed to remain open, most of them experienced very low demand, the cost of doing business was higher, their supplies were limited and the personal health risks a constant concern,” BDO Network Bank President Jesus Antonio Itchonsaid in an e-mail.

And for those businesses that were declared non-essential and were not allowed to operate, BDO Network Bank Senior Vice-President and Head of Micro, Small and Medium Enterprises Karen Cua added that the only choice was to shut down their businesses.

“There is now a lot of uncertainty regarding future sales in the new norm, and a recurrence of the lockdown could be possible due to a second wave of infections. Being unable to operate, or else seeing dramatically reduced sales, businesses are now struggling to meet their payment obligations like rent and loans,” Ms. Cua said.

This is why BDO Network Bank has doubled its efforts to meet the needs of Filipino communities. As the country’s biggest rural bank, BDO Network Bank operates more than 220 branches and over 230 automated teller machines across the country. Throughout the pandemic, the bank has kept all of its branches and offices open even during the most challenging periods of the government-imposed community quarantine.

To help their clients during the crisis, Mr. Itchon noted that BDO Network Bank’s account officers have kept regular contact with customers to remain as an accessible avenue for support. This was possible through the support provided by the BDO Group for its employees, such as rapid testing, tele-medical consultation, shuttles, and bonus pay for frontline staff.

“We are fortunate to have been able to keep all of our branches, office and ATMs open during this challenging time. In many of communities where we are located, we are the main provider of financial services. The men and women of BDO Network Bank have endured many personal sacrifices to mitigate the risks and keep the branches and office open to serve the communities. The Bank continues to make significant investments in keeping our workplace safe for our employees and our customers,” he said.

Mr. Itchon added that the bank has been working just as hard to adapt to the environment by promoting alternative banking channels that allow customers to open accounts, avail of loans, administer payroll and other disbursements, as well as manage their accounts. The bank is also ready to make loan repayments much more affordable to ease the burden of its clients and help them recover and restart their businesses.

Bouncing back

 Many businesses, Mr. Itchon pointed out, are still not allowed to operate, and are therefore forced to reassess their strategies to adapt for the uncertain future. Such efforts might need further investments into digitalization, identifying new opportunities, updated business models (as in the case of eateries transitioning to takeout and delivery), and managing their cashflow to remain liquid.

But given his experience in working with Filipino entrepreneurs, he remains confident that they will be able to bounce back.

“The communities we serve are very resilient. Many communities have undergone and survived various crises, such as earthquakes, investment scams, and violence. They have managed to adapt, survive and succeed,” Mr. Itchon said.

“Most successful businesses have found their best opportunities in the most challenging crises. Henry Sy’s own personal account described him making his best investments in the most trying periods of our country’s history. The most resilient, diligent and persistent entrepreneurs willcontinue to find new opportunities.”

Aiding in that path to recovery, BDO Network Bank remains open and ready to serve rural communities affected by COVID-19 by offering its clients continued access to financial services and loan consultations for businesses wishing to restart operations. The bank offers entrepreneurs a reworked installment scheme that can reduce their original installment by up to 65%.

“Successful communities work together well. We are all hoping for a quick recovery, but we are also prepared to see our communities through a longer and more challenging journey towards normalcy,” Mr. Itchon said.

IBM veers away from facial recognition, advocates for racial equity

The brazen arrest and murder of African-American George Floyd by a US police officer has sparked outrage and introspection across America and the globe these past few weeks. His last words—“I can’t breathe”—was heard the world over. Fellow Americans continue to take to the streets, flouting calls for social distancing in a clear signal of their priorities as a nation: Fix racial injustice, pandemic be damned. In response, many companies have since pledged their support for police reform and racial equity, including IBM, which has announced that it will no longer offer, develop, and research facial recognition technology.

Facial recognition software has improved much over the years thanks to artificial intelligence, offering distinct advantages in terms of safety, security, and convenience. Because there is little regulation among the private vendors providing it, however, there are concerns that the technology is vulnerable to inheriting (and further cementing) humans’ racial, ethnic, and gender biases. This, as well as infringe on people’s right to privacy. For these reasons, critics believe the tool may prove unreliable for law enforcement and ripe for wrongful surveillance, profiling, and abuse.

In a letter addressed to US Senators Cory Booker and Kamala Harris, and Representatives Karen Bass, Hakeem Jeffries, and Jerrold Nadler, IBM CEO Arvind Krishna outlined policy proposals to promote racial equality. He also announced that his company has sunset its general purpose facial recognition and analysis products.

Here are some salient parts from Krishna’s letter:

“In September 1953, IBM took a bold stand in favor of equal opportunity. Thomas J. Watson, Jr., then president of IBM, wrote to all employees:

“. . .Each of the citizens of this country has an equal right to live and work in America. It is the policy of this organization to hire people who have the personality, talent and background necessary to fill a given job, regardless of race, color or creed.”

Watson backed up this statement with action, refusing to enforce Jim Crow laws at IBM facilities. Yet nearly seven decades later, the horrible and tragic deaths of George Floyd, Ahmaud Arbery, Breonna Taylor and too many others remind us that the fight against racism is as urgent as ever.”

The letter continued with an offer from IBM to work with Congress in pursuit of justice and racial equity, particularly in policy areas such as police reform through new federal misconduct rules, as well as expanding opportunities through training and education for in-demand skills. It also advocated for technology policies that responsibly protect communities:

“IBM no longer offers general purpose IBM facial recognition or analysis software. IBM firmly opposes and will not condone uses of any technology, including facial recognition technology offered by other vendors, for mass surveillance, racial profiling, violations of basic human rights and freedoms, or any purpose which is not consistent with our values and Principles of Trust and Transparency. We believe now is the time to begin a national dialogue on whether and how facial recognition technology should be employed by domestic law enforcement agencies.

Artificial Intelligence is a powerful tool that can help law enforcement keep citizens safe. But vendors and users of Al systems have a shared responsibility to ensure that Al is tested for bias, particularity when used in law enforcement, and that such bias testing is audited and reported.”

“The symbolic nature of this is important,” said Mutale Nkonde, a research fellow at Harvard and Stanford universities who directs the nonprofit AI For the People. Nkonde believes IBM shutting down a business “under the guise of advancing anti-racist business practices” shows that it can be done and makes it “socially unacceptable for companies who tweet Black Lives Matter to do so while contracting with the police.”

Huawei IdeaHub: The intelligent whiteboard for more engaging meetings

Whiteboards are one of the essential items in offices. They are usually useful in meetings as they gather all the information and ideas coming from multiple people in a single area.

What if whiteboards can do more than merely show writings and project ideas, and be transformed into something that makes meetings more engaging?

With Huawei’s latest innovation, the IdeaHub, the whiteboard has finally transformed into a medium for intelligent collaboration within offices and even a more helpful tool for various sectors like education, healthcare, and government.

The IdeaHub integrates intelligent handwriting, high-definition projection, flexiblevideo conferencing, and access to applications in one simple yet dynamic screen.

IdeaHub rethinks the typical whiteboard into a superbly interactive one, with features that enable clearer audio, smoother video, and efficient writing.

It is equipped with professional-grade 4K camera, which enhances the streaming and viewing experience of meeting-goers wherever they are. Also, with its 12 linear microphone arrays, IdeaHub can pick up sound from within an 8-meter radius on a 20-kilohertz full band, enabling attendees to be heard more clearly.

The IdeaHub has a capacity of ultra-low writing latency of just 35 milliseconds, making writing on a screen easy and timely. Moreover, with its intelligent handwriting recognition, one’s scribblings can be translated to text or graphics for better readability. With its built-in NFC chips, It is easy to project content from the phone to the IdeaHub in one tap.

Aside from serving as an intelligent whiteboard, the IdeaHub makes video conferencing more professional by fusing native 4K and AI technologies.

While it can deliver H.265 HD video, 1080p conferencing, and 30 fps smooth projection, the IdeaHub can also easily switch from one live view to another through SVC multistream.

AI technologies integrated into IdeaHub brings more focus on the meeting and its speakers. Its acoustic baffle feature, for instance, blocks unnecessary noise from outsidethe meeting area; while its intelligent speaker tracking can automatically focuses on the person speaking. The IdeaHub can also automatically frame the conference view based on the participants

The IdeaHub also has a prosperous cloud ecosystem that supports multiple apps, both those pre-enabled in the screen and those which can be downloaded from the Huawei appGallery.Through this ecosystem, it can also create an up-to-date enterprise profile for digital marketing and promoting corporate culture, as well as a HiBoard with a customizable background source—perfect for welcoming guests or celebrating a significant occasion.

All these interesting and timely features are all enclosed on a sleek, user-centric, and elegant design.

The IdeaHub currently has three variants, namely the IdeaHub S, IdeaHub Pro (both of which come in Jade White), and the IdeaHub Enterprise, which comes in Titanium Gray.

Huawei’s strategy for all-scenario smart offices

Aside from embodying intelligent collaboration, the IdeaHub is an integral part of what Huawei calls the “1 + 3 + X” strategy. It is Huawei’s strategy to enable smart offices where professionals can engage with collaborators anywhere, anytime, and in any way.

The “1” in Huawei’s formula refers to office digitization of enterprises, made possible by cloud and AI, in particular Huawei’s Cloud WeLink, its intelligent work platform for enterprises.

“3” refers to three types of smart collaboration devices, namely Huawei’s telepresence series for professional conferences; the newly-launched IdeaHub series for team collaboration; and the smart desktop series for personal offices, which will be launched soon.

“X”, meanwhile, refers to open cooperation and ecosystems for software and hardware, where Huawei works with ecosystem partners to serve customers in various industries.

Huawei’s timely innovations, including IdeaHub and future products, all aim to digitally transform offices into smart and more productive ones.

Enable your offices with intelligent and more efficient collaboration with the Huawei IdeaHub. Learn more about the product by visiting e.huawei.com/ph/products/cloud-communications/ideahub

Philippine capital to remain under relaxed lockdown

By Gilian M. Cortez, Reporter

Manila and nearby cities, where the coronavirus is largely concentrated, will remain under a relaxed lockdown until June 30, President Rodrigo R. Duterte said late last night.

In a televised address, the President also said the cities of Cebu and Talisay in central Philippines would revert to stricter quarantine measures starting June 16 after a spike in infections.

Cebu City was placed under an enhanced community quarantine, while Talisay will be under a modified enhanced quarantine.

Mr. Duterte made the decision based on recommendations from an inter-agency task force made up of Cabinet secretaries.

Aside from Metro Manila, also kept under a general quarantine were the northern provinces of Cagayan, Isabela, Nueva Vizcaya, Quirino, Santiago City, Aurora, Bataan, Bulacan, Tarlac and Olongapo City.

Joining them were the provinces of Cavite, Laguna, Batangas, Rizal, Quezon, Occidental Mindoro, Bohol, Cebu, Negros Oriental, Siquijor, and the cities of Mandaue, Lapu-Lapu, Davao and Zamboanga.

The rest of the country, where the coronavirus has sickened more than 26,000 and killed at least 1,098 people, remains under a modified general community quarantine, presidential spokesman Harry L. Roque said.

Car sales plunge during lockdown

Car sales slumped in April and May, as the lockdown continued in Metro Manila. — REUTERS

AUTOMOTIVE sales plunged to just over a hundred units in April, before recovering in May as lockdown restrictions began easing around the country.

Data from the joint report of Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) showed total vehicle sales plummeted 99.5% to 133 units in April from the 25,799 vehicles in the same month last year.

Vehicle sales slightly recovered in May, with 4,788 units sold. However, this is still 85% lower than 30,998 units sold in May 2019.

Car dealerships were shut from mid-March to mid-April due to the Luzon-wide lockdown. Some dealerships started reopening in mid-May after lockdown restrictions were relaxed.

For January to May, car sales slumped 51.1% to 69,463 units, compared to 142,185 units in the same period last year.

CAMPI President Rommel R. Gutierrez said in a statement the industry expects low demand to continue in the coming months because vehicles are considered big-ticket investments.

However, he said the industry projects a gradual recovery in the fourth quarter.

“While May figures are still way below the industry’s monthly average sales performance, we welcome any positive signs of recovery amid the pandemic and this season of new normal where dealerships have resumed operations at a reduced level and stringent safety protocols are being implemented at all times,” he said.

Commercial vehicle sales, accounting for 70% of auto sales, slid 84.5% to 3,399 units in May from 21,945 in the same month last year. However, this was still a significant improvement from the 107 units sold in April.

Broken down, Asian utility vehicle sales dropped 79.4% year on year to 659 units in May, while light commercial vehicle sales slipped 85.8% to 2,511 units.

On the other hand, passenger car sales in May declined 84.7% to 1,389 units. In April, only 26 passenger cars were sold.

Year to date, commercial vehicle sales slumped 49.4% to 50,262 units, while passenger vehicle sales fell 55.2% to 19,201 units.

Toyota Motor Philippines (TMP) remained the market leader with 50.77% market share, while sales tumbled 82.5% year on year to 2,431 units in May. In April, TMP sold 36 vehicles.

Mitsubishi Motors Philippines’ sales sank 88% to 608 units in May, giving it a 12.7% share. It sold 22 vehicles in April.

Ford Motor Co. Philippines clinched 10.57% market share, with sales declining 72.5% to 506 units. Isuzu Philippines sold 302 units in May, 75% lower year on year but enough to give it a 6.3% market share.

Fifteen companies reported no sales in April, while eight continued to report zero sales in May.

Car manufacturers including Toyota Motor Philippines have launched digital tools in an effort to reach customers as their dealerships reopen. TMP introduced digital tools for service maintenance booking and an online car showroom. Honda Cars Philippines also plans to launch an online dealership platform.

Toyota also launched its new Wigo model online on June 15. TMP President Atsuhiro Okamoto said in the online press conference that they plan to sell 8,000 Wigo units for 2020, or around 1,400 per month.

As sales dried up during the lockdown, some dealerships have been permanently shut.

The Yuchengco-led House of Investments in May announced that it was closing four Honda and one Isuzu dealership in Metro Manila to “ensure overall greater efficiency.” These outlets represent almost half of its 11 dealerships. — Jenina P. Ibañez

MerryMart shares soar in PSE debut

By Denise A. Valdez, Reporter

SHARES in grocery operator MerryMart Consumer Corp. rose by 50% on Monday on its first day of trading at the Philippine Stock Exchange (PSE), as investors were optimistic over the country’s first initial public offering (IPO) for the year.

The company led by businessman Edgar “Injap” J. Sia II, which offered 1.59 billion shares to the public at P1 each, closed its maiden trading session at P1.50 per share.

MerryMart shares were listed on the small, medium and emerging board of the PSE.

MerryMart’s P1.6-billion IPO was two times oversubscribed and its market capitalization stood at P7.59 billion. PNB Capital and Investment Corp. was its lead underwriter, issue manager and bookrunner for the offering.

“MerryMart surprisingly hit its ceiling price of P1.50 on its debut, with almost none posting to sell shares. We think that traders were on its excitement phase since this is the first company to list this year,” Philstocks Research Associate Claire T. Alviar said in a text message.

Most companies have delayed their IPO plans this year as the market volatility remains high. The PSE index started the year at 7,742.53 on Jan. 2, hit a low of 4,623.42 on March 19, and has since started recovery. It closed at 6,163.82 yesterday.

During MerryMart’s listing ceremony streamed live on Monday morning, Mr. Sia said he believes doing an IPO in the middle of the coronavirus disease 2019 (COVID-19) pandemic shows the economy “is alive and ready to begin bouncing back.”

“(M)any of the most successful businesses around the world was either started during a crisis, or has deepened its market grip during the crisis period. Because actually, during a highly challenging period like where we are now, the large established players’ huge size and heaviness, suddenly becomes a disadvantage, and natural to a major crisis comes the repositioning of elements, such as, a major change of customer behavior, which suddenly, the pile of money alone, can not solve,” Mr. Sia said.

“This is the reason why we continued to conduct an IPO during this global pandemic. Because this is such a rare window for the company to compete well. A rare chance for a new player to quickly grow in a shorter span of time than during good times,” he added.

MerryMart has plans to put up 1,200 branches across the country by 2030, where the first hundred branches would be open as early as the fourth quarter of 2021. It believes it will be resilient despite the crisis as its business is in the non-discretionary basic essential retail category.

PSE President and CEO Ramon S. Monzon said he hopes MerryMart’s IPO encourages more entrepreneurs to do the same. He noted 7.78% of MerryMart’s IPO shares were availed by 3,473 local small investors, which is the biggest number of local small investors that subscribed to an IPO to date.

Finance Secretary Carlos G. Dominguez III, who attended the listing ceremony at the PSE Tower, said MerryMart’s IPO is a good sign for the Philippines’ economic recovery.

“This initial public offering signals trust in our good economic prospects. It shares in the optimism that, notwithstanding the global downturn engulfing us today, the Philippine economy has the fundamentals to rise quickly from the devastation wrought by the pandemic,” Mr. Dominguez said.

Aniceto K. Pangan, equity trader at Diversified Securities, Inc., said the performance of MerryMart on its debut also shows investor confidence in Mr. Sia and his team.

MerryMart is under Injap Investments, Inc., which is the founder of Mang Inasal Philippines, Inc. and a key shareholder of DoubleDragon Properties Corp.

“With their proven track record in franchising thru (Mang) Inasal and property leasing at DoubleDragon, investors see that they could carry on this business with success as they have synergies with their other businesses,” Mr. Pangan said in a text message.

But Philstocks’ Ms. Alviar warned MerryMart is at risk of profit taking after Monday’s surge in share price.

“[R]isk of profit taking has increased so traders must cautiously trade this stock. But as long as demand remains, there’s still a potential upside. And we still think that fundamental value would take over in the long run,” she said.

‘Indulgent’ purchases seen to recover as quarantine eases

CONSUMERS may soon start buying “indulgent” products as lockdown restrictions ease around the country, Nielsen Philippines Managing Director John Patrick Cua said.

Nielsen, which interviewed partner-retailers on their experiences during the lockdown, noted their challenges in procuring ample stocks and in shipping goods to rural areas.

Mr. Cua in a webinar on Thursday said more consumers are shifting to shopping online and in nearby neighborhood stores, as movement of people was restricted and public transportation was unavailable during the lockdown.

“People will, if they can, they will shop less often and they will prioritize things for their safety. So rubbing alcohol, household cleaners, air fresheners. That’s what’s in their basket at the start of the (lockdown),” he said, noting that consumers focused on buying shelf-stable food and non-essential personal care products.

As the lockdown eases, consumers are expected to indulge in some retail therapy.

“We are coming out of lockdown and what we’re seeing in the other markets is slowly the indulgent products will recover and the other personal care will eventually recover because the consumer will look to reward themselves,” Mr. Cua said.

He said that retailers need to understand how shopping habits have changed due to the lockdown.

“Before, we always think it’s the head of the household, the mother that goes to shop. But during the time, kung sino ang may quarantine pass. It could be the father or the male shopper. We usually have the female shopper,” he said.

Mr. Cua said that supermarket shopping frequency has also changed, shifting from weekly shopping to payday or bi-monthly shopping.

He said retailers must improve supply chain inventory and digital presence, including on social media and Google Maps.

“Communicate that their store is safe for people to go,” he said.

Shopping mall operators have ramped up their health and safety protocols to reassure consumers who are still wary of going outside out of fear of getting the coronavirus disease 2019 (COVID-19).

Philippine Amalgamated Supermarkets Association President Steven T. Cua in May noted the strong demand for baking and cooking goods, as well as rubbing alcohol, disinfectants, and hair trimmers, during the lockdown.

He said inventories had been improving after initial logistics challenges as the transport of goods was hampered at checkpoints at the start of the lockdown. — J.P.Ibañez

Record debt bill pushes firms back to bond market

THE biggest companies in the Philippines need to repay the most debt ever next year, and they’re lining up for fresh funds while interest rates are still low.

Three corporate groups — Ayala Corp., JG Summit Holdings, Inc. and San Miguel Corp. — are looking to raise a total of $2.5 billion with bonds, based on regulatory filings. They are among the first firms to return to the debt market after a lockdown caused issuance to plunge to a four-year low of $540 million in the second quarter, Bloomberg-compiled data show.

Philippine firms are set to join the global rush to borrow funds as they prepare for a massive debt bill: about $8.3 billion in corporate bonds and loans will mature in the second half of the year, before that pile climbs to a record $16.4 billion in 2021, according to data compiled by Bloomberg.

They are keen to borrow while rates are still low, amid signs the central bank is moving to absorb excess funds as the economy gradually reopens this month.

“We expect to have a very busy next couple of months, and hopefully the second half of the year will retain the momentum,” said Ryan Martin Tapia, president of China Bank Capital Corp., one of the country’s most active bond arrangers. Still, lingering pandemic uncertainty is making tenors shorter and credit spreads wider, he said.

In the latest possible Philippine debt deal, PLDT, Inc. hired Credit Suisse Group AG and UBS Group AG for a series of investor calls starting June 15. They may be followed by an offering of 10- and 30-year dollar bonds, the telecommunications company told the stock exchange on Monday.

Port operator International Container Terminal Services, Inc. priced $400 million of 10-year bonds on June 10, one of only two Philippine debt issuers in the second quarter along with a peso deal by Rizal Commercial Banking Corp., Bloomberg-compiled data show. Developer Robinsons Land Corp. also has notes in the pipeline.

Falling interest rates may spur increased demand for Philippine corporate securities.

Peso-denominated five-year government bond yields dropped to a seven-year low this month after policy makers pumped cash into the market. The virus outbreak caused the nation’s economy to shrink for the first time since 1998 and its unemployment rate to rise to a record.

“With interest rates moving down, some investors will be thinking of locking in their yields,” said Robert Ramos, chief investment officer at East West Banking Corp. “Of course, this will be dependent on investors being satisfied with the credit spreads over the government benchmark.”

The easy money won’t be around forever.

In a move to mop up extra funds in the market, the Philippine central bank said on June 8 it would gradually resume offering term deposits to financial firms and increase the volumes in its reverse repurchase facility. An estimated P1.1 trillion ($22 billion) were released into the financial system, equivalent to about 25% of the first quarter’s gross domestic product, through a series of steps including cuts in the benchmark interest rate and the reserve requirement ratio. — Bloomberg

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