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UP opens CHK annex as COVID-19 isolation facility

EFFORTS to deal with the coronavirus disease 2019 (COVID-19) pandemic in the country got further legs with the University of the Philippines (UP) opening its College of Human Kinetics Gym (CHK)as a step-down isolation facility for cases of the highly contagious respiratory disease.

With COVID-19 still a going concern, with confirmed cases, as of this writing, numbering 12,718, the UP CHK, in partnership with Maynilad and UP ACTasONE, saw it fit to offer its facility in the fight to mitigate the spread of the pandemic.

UP CHK officials said the idea was not hard to buy into, knowing it was for a worthy cause and university conditions permitting to do so.

“We saw the value in it and the significance of serving the UP community. For as long as remote learning is up in UP, we will support this,” said UP CHK dean and UAAP Board of Managing Directors member Francis Diaz.

“There are still no face-to-face classes in the university so we saw it fit that one of the facilities be transformed to an isolation facility,” he added.

The newly repurposed facility, which is the training venue for the Lady Maroons Women’s Basketball Team and UP Pep, is equipped with tents, mattresses, and beddings that will be used by recovering COVID-19 patients and patients awaiting the result of their retest.

It also has shower and toilet amenities, water dispensers, and washing machines, along with hygiene kits.

The step-down isolation facility is the latest initiative by the university, which has seen various stakeholders do their share in various capacities in the COVID-19 fight. — Michael Angelo S. Murillo

Jordan’s vision

Even without the foreknowledge that the ninth and 10th episodes of The Last Dance were completed extremely close to their airing date, the countless viewers who have tuned in to see them since they became available over the weekend would have noticed the documentary series’ weary legs. In stark contrast to the back-and-forth narrative style that permeated previous episodes, they mostly stuck to one that focused on the Bulls’ last two seasons, and particularly in the playoffs. Which, interestingly enough, made for compelling drama despite the obvious denouement. If nothing else, the focus served to overcome the unavoidable handicaps of the story being told in snippets and ultimately enhance the vicarious experience.

In part, The Last Dance eschews the time jumps as a matter of necessity; the rush to production borne of advancing the release of the series by two months tied the hands of director Jason Hehir. In larger measure, however, the move comes off as deliberate and aimed at precisely shining the spotlight on the Bulls’ titular run. Their final march to success — the very one all the other segments before it set up — was at hand, and veering from it would have been seen as an unnecessary, and most certainly unwanted, digression.

The result is nothing short of genius. The Last Dance fancies itself as the last word on its subject as well, and its cause is helped by the active participation of the principal protagonist of the Bulls’ dominance in the nineties. Indeed, Michael Jordan’s enthusiastic involvement in front of the camera was made possible by his final-say role behind the scenes as its executive producer. Is it then biased? Of course; all agendas are his by default. For instance, it pushes forth the contention that he had nothing to do with fellow Hall-of-Famer Isiah Thomas being left off the Dream Team, significant evidence to the contrary.

Another example of Jordan’s selective memory: his recollection of the so-called flu game, in which he insinuated that he was the victim of targeted food poisoning. Lost in trainer Tim Grover, best friend George Koehler, and his own musings was the fact that he wouldn’t have ordered pizza by telling the only joint open in hostile Salt Lake City at 10:30 in the evening his real name. In any case, “I ate the pizza,” he declared. “All by myself. Nobody else eats the pizza. I wake up about 2:30 throwing up left and right.” What he didn’t point out: He spit on the pizza that was allegedly brought to his hotel room by five delivery men so that no one else would deign touch it.

That said, there can be no discounting Jordan’s force of will. For whatever reason, he was sick when he trekked to the court in Game Five of the 1997 National Basketball Association Finals. The misnomer notwithstanding, he then proceeded to upend the Jazz with one of his best performances ever, finishing with 38 of the Bulls’ 90 points, seven rebounds, five assists, three steals, and one block through 44 minutes of play in a two-point victory. But, hey, the “flu game” sounds better than the “pizza game” or even, as more than a few quarters have speculated, the “hangover game.”

Throughout The Last Dance are other similar illustrations of Jordan’s predisposition to bend the truth to his advantage. He makes up slights, arranges matters to better his vantage point — does anything, really, to fuel his competitive juices. And, from a Machiavellian standpoint, the results are clear. He’s the best of the best of all time. He deserves the lingering shot at the end of the last episode, and as he walks away from the frame, a lighted cigar in hand, victory is his, and, most importantly, in just the way he envisioned.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, oprerations and Human Resources management, corporate communications, and business development.

Four highlights from the 2020 Philippine Startup Survey: COVID Edition

Last May 12, PwC Philippines, together with the Department of Trade and Industry, QBO Innovation Hub, and IdeaSpace, shared the 2020 Philippine Startup Survey: COVID Edition, which aims “to understand the impact of the COVID-19 outbreak on the tech startups in the Philippines.” The effort follows a previous report released in February that mapped out the same landscape pre-pandemic.

“This crisis is really forcing us to make decisions quickly and to act with urgency,” said Jade Roxas-Divinagracia, deals and corporate finance managing partner at PwC Philippines. “And while it brings with it numerous challenges, admittedly, we sense a lot of opportunities especially for startups.”

“Given the right support, founders and startups with the ability to seize these opportunities and to make the necessary adjustments or pivot will survive this crisis and will be well-positioned to thrive thereafter.”

Here are four important highlights from the report.

1. Majority of startups are worried about the long-term effects of the pandemic.

Out of the 90 founders interviewed for the survey, 48% felt threatened by the pandemic’s impact on their startup, while only 23% consider it as an isolated concern. Their top concerns include the financial impact and effects on operations, a potential global recession, and difficulties in funding.

Of the respondents surveyed, 36% also expressed concern about reduced workforce productivity, which may be partially attributed to the country’s slow internet connection.

But according to Atty. Alexander Cabrera, chairman and senior partner at PwC Philippines, this may be a case-to-case basis. “For instance, in our business, I think the productivity level is up… for the primary reason that people don’t have to travel. So the travel time going to the office and to clients are no longer needed.”

He also believes that productivity spans a wide array of activities that don’t only achieve revenue generation. “It’s also upskilling people and activities… R&D, thought leadership, [and] even developing critical relationships.”

2. Startups are implementing countermeasures to compensate for loss.

The crisis has challenged many founders’ creativity, employing various ways to keep their startup afloat. 51% reduced their level of operations, while 36% implemented cost reductions (aside from employee costs) and prepared a business continuity program. Almost half of the surveyed startups even started offering a new product or service.

On top of these internal measures, startups are also looking to acquire funding from other sources. These include government grants and subsidies, equity financing, and bank loans and financing.

3. Some startups have uncovered opportunities amidst the crisis.

However, the situation isn’t completely bleak for several startups, with 21% saying that they even experienced an increase in demand for their products and services.

It may be assumed that these are startups from the logistics, education technology, enterprise services, financial technology, and healthcare sectors, since they have been critical to making life convenient for consumers under quarantine.

The pandemic also saw new players such as food market startups and on-demand delivery service platforms. For Ellard Capiral, CEO of sniper advertising firm AdMov, it will inspire further innovation among budding entrepreneurs.

“This situation will create a new breed of startups, and will probably change how we do business in the long run,” he said. “Startups need to adapt to the new needs and behaviors of people. They should not expect that things will go back to as they were before COVID-19.”

4. Startups need additional funding and other forms of support to normalize their post-quarantine operations.

A harrowing 20% of the surveyed startups found that they only have enough cash and capacity to sustain their business for more than a year. Given this, they’re calling to the government to implement helpful measures that will help boost and bolster their operations.

Their top suggestions include loans with a longer grace period and relaxed credit requirements, tax incentives, and incentives for startup investors, such as tax holidays, that will encourage them to accelerate fundraising activities. “I hope the government will provide strong and deliberate financial assistance to all startups in the same way it has implemented its strong enforcement of the ECQ,” one founder said.

Founders are also carrying other kinds of considerations on top of funding. 76% need a wider customer base to secure more possible revenue sources, while 61% that are experiencing growth in their startup require additional talent to support it.

“The negative effects of the pandemic may persist up to a year after the lifting of the ECQ,” said a founder. “It is therefore important to develop support systems as well as funding options and collaborations with big firms to support the SMEs, since SMEs account for more than 66% of employment in the Philippines.”

Healthtech startup JoJoCare offers new telemedicine platform for Filipinos

First Shoshin recently announced its healthtech venture JoJoCare as a response to the general public’s limited mobility brought about by the enhanced community quarantine. JoJoCare, a holistic healthcare app that helps people connect with qualified practitioners and get expert advice fast, is now in its soft launch.

The founders shared that they named the platform after their go-to friend for sourcing goods from the United States. Like their ever-reliable pal, JoJoCare bridges barriers, connecting users with licensed doctors and lawyers, yoga teachers, fitness trainers, and tutors ready to accept virtual bookings.

Sally Ponce-Enrile, JoJoCare Chairperson, sees the app as an opportunity to make these essential needs accessible to all. “We want to help more people by offering holistic health and wellness-related services at competitive prices under one platform. At the same time, we want to help professionals to continue earning and providing their services even when in-person visits aren’t possible,” explained Ponce-Enrile. The company says it does not get a cut from professional fees; practitioners get the complete amount of whatever they charge for their virtual consultations.

Healthcare in the digital era

JoJoCare is set to onboard more vetted professionals to make the platform comprehensive and all-embracing. “We’re excited to bring something that’s never been done before and that’s making JoJoCare as the all-in-one platform for accessing and offering a variety of virtual care services that will ultimately allow everyone to experience what better, faster, and holistic care means on the verge of a new era,” added Ponce-Enrile.

Telehealth services is about providing service when people need it most, as well as protecting life in new ways. JoJoCare is among a growing number of providers that seeks to ease the healthcare strain brought about by the pandemic.

You can now sign up for JoJoCare and book a virtual visit with its professionals. Membership fees start at Php 250. per month. Those interested to join and become a JoJoCare professional can visit my.jojocare.io.

Someone from the Philippines can become $274M richer

The American Mega Millions lottery currently offers the biggest jackpot prize in the world: $274 million USD. This huge amount has captured the attention of lottery fans all over the world. The winner could even be from the Philippines.

There is no need for you to travel to the United States to take a chance on winning the great Mega Millions jackpot. It is possible to play the game by purchasing official Mega Millions tickets online at theLotter.com.

TheLotter’s spokesman Adrian Cooremans said: “US Lotteries’ rules state that you do not have to be a citizen or a resident to play the game, but, in order to be able to collect any prize, the ticket must stay in the relevant state. That’s why we keep customers’ tickets inside a safe in a secure location in the States and send them a scan proving chain of custody. Our past winners from Europe, Australia, Canada, Iraq and Latin America were all checked thoroughly by federal and state agencies and each time the conclusion was that theLotter and the individual winners acted in accordance with the rules of the lottery and the law.”

Mr. Cooremans continues: “US lotteries pull in a global crowd once jackpots reach this sort of level. And, yes, amounts at stake are astonishing. If there will be a winner this week, he or she will be wealthier than the average movie star or top CEO. It really is the stuff dreams are made on.”

Here’s how you could win a $274 million jackpot from the Philippines:

  1. Sign up at theLotter.com, the world’s leading online lottery ticket purchasing service.
  2. Select the Mega Millions lottery from over 45 lotteries available on the site.
  3. Fill out your ticket with your favorite numbers, or use a computer-generated random selection.
  4. Indicate how many lines you want to play, or choose to play with a lottery syndicate to increase your chances of winning.
  5. Confirm your ticket purchase and you’re eligible to win prizes in the upcoming draw.

How theLotter works

TheLotter is a lottery ticket messenger service. TheLotter uses local agents in the United States to buy official lottery tickets on behalf of its customers from all over the world. A small surcharge is added to ticket prices in order to cover the cost of this service. The ticket is scanned and uploaded to a customer’s account before the draw. With this scanned version of the ticket and email confirmation, customers can rest assured that they have full ownership of their tickets.

At theLotter, customers can purchase tickets to the world’s biggest lotteries including Mega Millions, Powerball, EuroMillions, the Italian SuperEnalotto, EuroJackpot, and more. TheLotter provides a dedicated support team, available 24/7, to help customers with any concerns.

What happens when you win?

When you win a lottery jackpot prize at theLotter, the entire amount is yours! No commissions are deducted from winning tickets. Winnings are transferred to your secure, private account and you can withdraw them at any time. If you win a lottery jackpot, however, you many need to travel to the lottery’s offices to collect the prize money yourself. In this case, a lawyer provided to you by theLotter free of charge will assist you in the win collection process.

Over the years, theLotter has paid out more than $100 million in prizes to over 5.5 million winners from across the globe. The biggest winners at the site have included a woman from Panama who won $30 million playing the Florida Lotto, and a man from Iraq who won a $6.4 million Oregon Megabucks jackpot.

The Mega Millions jackpot could be won at any time and the next draw is coming up soon. It is totally possible for the next big lottery prize winner to be a Filipino!

For more information on how to play Mega Millions online in the Philippines, please visit theLotter.com.

 

EDITOR’S NOTE:

Spotlight is BusinessWorld’s new sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Innovation’s potential in crisis: COVID-19 lessons from Israel

By Adrian Paul B. Conoza
Special Features Writer, BusinessWorld

Israeli diplomats share insights from their ‘startup’ nation’s COVID-19 response

The global fight against the coronavirus disease 2019 (COVID-19) has reaped noteworthy practices from countries that have recently been easing up their restrictions.

Aside from nearby countries who had successfully tackled the spread of the disease in their areas, the middle-eastern country of Israel is noted for its quick and exemplary response to COVID-19.

In the second leg of the Asian Institute of Management’s (AIM) International Best Practice Series, representatives from the Embassy of the State of Israel in the Philippines shared the country’s experience in dealing with the pandemic, particularly pointing out the factors that made the state prepared to deal with it and the lessons they have learned in responding to COVID-19.

Backed by a strong economy, R&D

Rafael Harpaz, ambassador of Israel to the Philippines, finds the country’s economic development, especially in terms of establishing startups and spending on research and development, as one of its strengths that made it much capable to respond to the crisis.

While the country’s economy is based mainly on export, according to Mr. Harpaz, it is very much notable for hi-tech industries rapidly developing there.

“There are no miracles in economy. It involves government involvement into the economy, giving incentives to startups, higher education, and entrepreneurship character, which is something typical for Israelis,” the ambassador said of the country’s economic development.

Israel has over 6,000 startups, according to Mr. Harpaz, among them mobility-as-a-service solutions company Moovit, which was recently acquired by technology company Intel.

Mr. Harpaz also sees strength in the country’s generous expenditure on research and development.”This is the heart of the Israeli economy. We are having a high percentage; 4.25% of our GDP goes to R&D. That’s the highest in the world,” he stressed.

Mr. Harpaz highlighted practices in Israel’s response to COVID-19 such as halting flights, tapping on technologies, stocking protective equipment through Israel’s ambassadors, transitioning local industries into producing medical equipment, working on vaccine development projects, and isolating towns and villages with a high percentage of confirmed cases.

In terms of technology, the ambassador recalled a mobile application as an example. “If we have somebody who has [coronavirus] and you walk in the street, your cellphone will indicate that you’re close to somebody who has [coronavirus],” he said.

The lessons that can be learned from Israel, for Mr. Harpaz, include the potential of technology during crises, the importance of a strong health system, and bracing for the unknown.

“The countries that will be at the forefront of scientific, economic, and [technological developments] will be the ones that will move faster when we go out of this crisis,” he said. “The experiences demonstrated that crises are [catalysts] for technological innovation and developments…Because of our startup capacity and innovation mentality, I think Israel can be there.

“During this COVID-19, every day there are new things we don’t know, so we need to be aware that we might have surprises,” he further advised.

He applied this alertness to Israel’s expanded testing capacity. “We have more than half a million people tested already out of nine million, and we now have a potential to do another 300,000 serological tests to check if they already had the disease so that [do not contaminate],” he said.

According to the ambassador, Israel has recently resumed its business “at a very fast pace” and has opened its schools as well. Nonetheless, it implements an exit strategy that consists of a recovery plan funded at 21 billion US dollars, an upgrade of their health system, and preparation for the second wave of COVID-19 cases.

“The risk of the second wave is here. We are aware of this. So, social distancing is very important. Public transportation is existing but very limited,” he explained.

Innovative approach

YuliaRachinsky-Spivakov, deputy chief of mission at the country’s Israeli embassy, further highlighted Israel’s richness in technology, from which innovative solutions to COVID-19 have been discovered and utilized.

As a small country with a challenging environment, Ms. Rachinsky-Spivakov shared, Israel has served as a breeding ground for innovation.

“[Compared to] Metro Manila, we are not that very big. It’s also located in a very challenging environment, and it faces a lot of security challenges. Those are the main reasons that brought Israelis to think out of the box and find ways to overcome those challenges,” she said.

She also attributes this abundance of innovation to education, as “Israelis are educated to challenge the authority and to think about solutions to difficult situations.”

A wide array of solutions out of collaborations between scientists, entrepreneurs, and institutions have emerged in the current situation, as the deputy chief of mission showcased.

The solutions were clustered into four major sectors. The first one focuses on the prevention of further contamination of COVID-19. Startup Viziblezone, for instance, which specializes in avoiding car accidents by keeping distance between cars, has adapted its technology to find a solution for monitoring social distancing in the workplace.

Another company, Soapy, developed hand-washing micro-stations that use special plant-based ingredients that kill viruses like COVID-19.

Even the military industry, a strong one in Israel, has done its share in the fight against COVID-19. Engineers from aerospace and aviation manufacturer Israel Aerospace Industries developed ultraviolet-light technology that makes the elimination of virus safer and easier.

Other preventive technologies presented include 3D printers for producing face masks and self-sterilizing fiber for masks and personal protective equipment.

There are also innovations that aim for effective testing, Ms. Rachinsky-Spivakov continued. Out of a collaboration between Israel’s defense ministry and artificial intelligence-based platform Vocalis Health, vocal fingerprints can be used for diagnosing COVID-19.

“There is no need of direct contact [between] patient and medical staff, and of course it can be done from a distance and eliminate any further contamination,” the deputy chief stressed.

She also noted the recent development from an Israeli university of a one-minute test that reportedly uses samples from the breath or nose swabs to identify carriers.

AI has also been observed to be useful in increasing daily testing capacity without requiring additional staff. “Israelis are working intensively on different developments or uses of how AI can assist us in this battle,” she said.

Under the development of vaccine, Ms. Rachinsky-Spivakovadded, several innovations have been in progress. These include using advanced computer systems for developing antibodies designed that will fight the virus and reformulating poultry flu vaccine to an oral vaccine against COVID-19.

“Our research institutions came to the conclusion that the shortest way is to try using existing biological materials [and] existing treatments [or] vaccinations that we have to fight against other diseases,” she noted.

Innovations have also been applied in the field of treatment. Telemedicine is observed to provide a contamination-free solution to patients, as exemplified by Israel’s Sheba Hospital which has developed a home apparatus based on telemedicine to monitor COVID-19 patients.

Placenta cells have been employed as well in Israel for treatment. Referred to as ‘compassion treatment’, placenta cells are given to patients on which “no [other] medical treatment can help them anymore based on the professional [findings] of the medical staff”.

For the deputy chief, the key lessons from Israel’s fight are the government’s unified approach, the strong cooperation between private and public sector, and the large participation of research institutions and universities.

“There is a lot of opportunities for cooperation,” Ms. Rachinsky-Spivakov said. “The fact that we are facing global challenges, that we share the same threats, is making us closer. Nevertheless, we have to take into account that every country has its own unique characteristic, so there is no tailor-made solution for everybody.”

Virus 2nd wave to deepen contraction

THE Philippine economy may face a deeper contraction if a second or third wave of coronavirus infections emerges, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said on Monday.

“In case there is a second wave that could mean ‘W-shaped’ recovery, it’s going to be much worse than the revised forecast,” Mr. Diokno said in an interview with ABS-CBN News Channel.

With a “W-shape,” the economy faces a bumpy ride where it would bounce back and sharply drop before a full recovery is seen.

In an effort to reopen the economy, lockdown restrictions were relaxed in Metro Manila and other parts of the country over the weekend. Many Filipinos went back to work, raising fears of a potential second wave of coronavirus disease 2019 (COVID-19) infections.

As of Monday, COVID-19 infections in the country rose by 205 to 12,718 while the death toll has reached 831 and recoveries totaled 2,729.

The Development Budget Coordination Committee (DBCC) last week said it projects gross domestic product (GDP) to contract by 2% to 3.4%, worse than the flat growth to -1% outlook it gave in April. The DBCC’s latest estimates assume a loss of about P2 trillion in gross value added or equivalent to 9.4% of nominal GDP, the central bank chief said.

Mr. Diokno said the latest DBCC estimates take into account the fiscal and monetary measures done by the national government and the central bank so far.

He said easing some lockdown restrictions bodes well for the economy’s eventual recovery.

“You have to consider that a big chunk of the country is now under modified to general quarantine and so that is a positive for the country, unless there is a deterioration in those hotspots,” Mr. Diokno said.

The first-quarter GDP already fell by 0.2%, the first contraction since the three percent drop seen in the fourth quarter of 1998. The economy is expected to slip into a recession with lockdown’s impact to be bigger in the second quarter.

DELAYED RECOVERY
“A W-shaped recovery may mean a higher level of annual economic contraction compared to a single resurgence that initially merited an economic lockdown in March,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail.

“This would mean relegating economic activities again in the background to prevent the further spread of the virus, especially the non-essential business that have been reeling in the doldrums of non-activity,” he added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said more fiscal and stimulus measures will be needed in the case of a slower, W-shaped recovery.

“[T]his would require more stimulus measures such as financial aid for the most vulnerable sectors. This would also require greater monetary easing from the central bank,” he said.

Mr. Ricafort said hardest-hit industries could lose about 2% of their total income for every month of shutdown. Restrictions on business activities may have to be put in place again in the case of a second wave.

A second wave of infection could put more strain on the economy until 2023, according to Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr.

The DBCC projects economic recovery by 2021, with a growth outlook of 7.1% to 8.1% given the base effects from 2020.

“If we see a second wave of infections, we would see the recovery happen as late as 2023. Or maybe even later than that…because we saw from the first-quarter numbers, that just two weeks of lockdowns led to the slowest performance in consumption since the 1980s,” Mr. Neri said in an interview with ANC.

Mr. Neri said that government response should be proportionate to the gravity of the restrictions imposed in relation to the virus outbreak. He cited data from the IMF which showed that the country’s fiscal response is equivalent to about 3.4% of GDP.

“Stricter lockdown disrupts economy more. Vietnam lockdown was not too strict but early ban helped limit burden on government for support, same with China,” Mr. Neri said in a text message.

Mr. Diokno said a supplemental budget is needed to boost the economy and help people during the crisis.

“I think there is a need for supplemental budget, you cannot just rearrange the budget. There’s not enough room there (budget) for higher spending for this pandemic,” Mr. Diokno said.

To avoid the risks of a second wave of infections, analysts said spending should be ramped up for the healthcare sector.

“The healthcare aspect should be intensely stepped up. Implementation of health standards and restrictions should be amplified to its containment potential on all possible levels,” Mr. Asuncion said.

“Countries with weaker healthcare system should actually be more aggressive in their fiscal response, because this is necessary to offset the massive impact of the lockdowns,” Mr. Neri said.

Nomura Global Markets Research has said last week that they estimate an additional 1% of GDP should be allocated for healthcare spending, based on the estimated required resources of the World Health Organization and in the case when the country’s COVID-19 cases peaks at 30,000. — Luz Wendy T. Noble

IMF reviews forecasts for PHL economy

By Luz Wendy T. Noble
Reporter

THE bigger-than-expected impact of lockdown measures on the economy is prompting the International Monetary Fund (IMF) to revisit its growth outlook for the Philippines.

“In light of the newly released Q1 growth outturn, we are reviewing our forecasts for 2020 and 2021. The impact of community quarantine on economic activity seemed to be larger than we had expected,” IMF Resident Representative to the Philippines Yongzheng Yang told BusinessWorld in an e-mail on Friday.

The Philippine economy contracted by 0.2% in the first quarter, which saw the implementation of the first two weeks of the enhanced community quarantine (ECQ) in Luzon. The economy is expected to be hardest hit in the second quarter, as the lockdown continued through May.

In April, the IMF projected the Philippines’ gross domestic product (GDP) to grow by 0.6% this year, and by 7.6% in 2021. In November, this year’s GDP growth was projected at 6.3%.

The IMF in April forecast the global economy would contract by 3% this year, which is said to be the steepest downturn since the Great Depression. A longer crisis may even push the global economy into a deeper contraction of 6% this year, and zero growth in 2021.

“With no medical solutions yet, this Great Lockdown is not going away anytime soon, and the outlook is beginning to worsen relative to our already dire forecast for 2020,” IMF Chief Economist Gita Gopinath said in a recent tweet.

Mr. Yang said the updated growth forecast for the Philippines will be released in late June, which would take into account the extension of the ECQ, albeit modified, for Metro Manila. Other areas in the country were placed under general community quarantine.

Last week, the Development Budget Coordination Committee said GDP this year could contract by 2-3.4%, lower than the -1% to zero growth it assumed in late March. This is also a stark difference from the 6.5% to 7.5% target growth this year after the six percent growth in 2019.

Moving forward, Mr. Yang said that the most critical constraint on growth is still the outbreak as it leaves governments to go for community quarantines and other measures to contain further spread, resulting in hampered economic activities.

“The more quickly the spread of the virus is brought under control, the more quickly the economy can recover,” Mr. Yang said.

The virus has already sickened over 4.7 million worldwide and has killed over 312,000.

As of Monday, the number of local infections reached 12,718, while deaths stood at 831.

PESSIMISTIC OUTLOOK
“The current global recession is adding pressures on the Philippines’ recovery as export demand, especially for tourism, and remittances will remain weak for some time to come,” Mr. Yang said.

Despite these challenges, he believes the country’s macroeconomic fundamentals remain strong.

“The strong macroeconomic fundamentals that the Philippines has built in recent years have enabled the country to deliver strong policy support to the affected citizens and businesses in this difficult time,” Mr. Yang said.

“The Philippines has considerable room to provide more fiscal and monetary stimulus to the economy, given the country’s relatively low public debt compared with peer countries and well-anchored inflation expectations.”

Amid the lockdown, the government has implemented a P200-billion cash grant program for poor families and the P51-billion wage subsidy program for smaller businesses.

The central bank has slashed policy rates to record lows and lowered reserve requirement for banks in a bid to cushion the impact of the pandemic and to boost liquidity during the lockdown. It has likewise rolled out regulatory measures to help small- and medium-sized enterprises (SMEs), such as allowing banks to use SME lending as an alternative for reserve compliance.

“These and future policy measures will help support consumer and business confidence, offsetting some of the negative impact of declines in export demand and remittances,” Mr. Yang said.

The government should also continue to “focus on strengthening the capacity of the healthcare system, protecting vulnerable low-income households, and supporting small- and medium-sized firms,” he said.

“Robust implementation of policy measures will also be critical for policy effectiveness. Accelerating the planned introduction of the national ID system will be especially important in this regard,” he added.

Registration for the national ID has been pushed to October, from its original June target. Lawmakers urged the government to fast-track the national ID system in order to address some problems related to the distribution of cash grants and wage subsidies.

Big-ticket projects safe from budget cut

BIG-TICKET projects of the Department of Public Works and Highways (DPWH) and the Department of Transportation (DoTr) will not be affected by budget cuts, officials said on Monday.

“I’m handling big-ticket projects. They’re not affected by the budget cut,” DPWH Build, Build, Build Chairman Anna Mae Y. Lamentillo told BusinessWorld in a phone message, adding that the department is still preparing the “final list” of the affected projects.

She said among the unaffected big-ticket projects are Metro Manila Skyway Stage 3 and the Tarlac-Pangasinan-La Union Expressway (TPLEx) Extension.

The DPWH said in a statement on May 14 that it resumed work on several flagship projects in Metro Manila, including the Bonifacio Global City-Ortigas Center Link Road Project, the Estrella-Pantaleon Bridge Project connecting Makati City and Mandaluyong City, and the Binondo-Intramuros Bridge.

Public and private construction projects have been allowed to resume under the modified enhanced community quarantine (MECQ) but workers must be housed and fed onsite and observe distancing rules, among other requirements for construction work during the pandemic.

DoTr Assistant Secretary Goddes Hope O. Libiran said in a separate phone message: “According to our Undersecretary for Finance Garry V. de Guzman, DoTr big-ticket projects are not affected. They will still push through until partial operability and completion.”

On whether the government’s reduced and redirected budgets will affect smaller projects, she said: “No. We only offered the peso portion of certain projects, and those budgets that we can no longer disburse within the year.”

Asked to elaborate, she said: “For instance, the MRT-3 rehabilitation project. While the peso portion of this project has been offered, the project is still in full swing. In fact, total rail replacement is scheduled to be completed by the end of September 2020.”

In April, Ms. Libiran said her department identified 35 transport projects where around P15 billion could be freed up for the government’s coronavirus relief efforts.

She declined to provide the list, but said the cut is across all transport sectors such as rails, airports, ports and roads.

The projects are not being canceled and will still proceed since only a portion of their budgets will be realigned, Ms. Libiran said.

According to the Department of Budget and Management (DBM), allotments for line departments were adjusted in April in order to augment the budget of agencies responding to the pandemic.

Under Republic Act No. 11469 or the Bayanihan to Heal As One Act, President Rodrigo R. Duterte has the authority to realign funds to the COVID-19 containment effort.

The DPWH suffered the biggest budget cut at P121.94 billion, bringing its allocation this year to P458.95 billion from more than P580 billion originally.

The DoTr’s budget was trimmed by P8.82 billion to P90.58 billion.

Budget Undersecretary Tina Rose Marie L. Canda said in a phone message on Sunday that the DPWH “had the biggest unreleased budget amount kaya sila ’yung malaki ang na-offer (which is why the DPWH had the most funds on offer).” — Arjay L. Balinbin

Recovery could drag through 2021 — Powell

THE US economy will recover from the coronavirus pandemic, but the process could stretch through until the end of next year and depend on the delivery of a vaccine, said Federal Reserve Chairman Jerome Powell.

“Assuming there’s not a second wave of the coronavirus, I think you’ll see the economy recover steadily through the second half of this year,” the US central bank chief said in a television interview conducted Wednesday, parts of which were aired on CBS’s Face the Nation and 60 Minutes shows on Sunday.

“For the economy to fully recover people will have to be fully confident, and that may have to await the arrival of a vaccine,” said Mr. Powell, seated in the Fed’s stately boardroom at the long table used to deliberate monetary policy. His interviewer was seated at a socially safe distance at the end of the table.

More than 36 million Americans have lost their jobs since February as the economy shuttered to limit virus spread. Countless companies, especially small businesses, are hurtling toward bankruptcy, while states and cities are confronting gaping budget shortfalls that could provoke a massive second wave of layoffs from the public sector.

To limit the harm, Mr. Powell and his colleagues have slashed interest rates to zero, flooded financial markets with trillions of dollars in liquidity, and unveiled nine emergency lending facilities to keep credit flowing in the economy.

Some investors have bet the Fed may be pushed to follow other central banks in adopting negative interest rates, which President Donald Trump has repeatedly called for in the US.

Fed officials including Mr. Powell have consistently batted this idea away, and he did so again on Sunday.

“I continue to think, and my colleagues on the Federal Open Market Committee continue to think, that negative interest rates is probably not an appropriate or useful policy for us here in the United States,” he said, according to a transcript of the full interview. “There’s no clear finding that it actually does support economic activity on net. And it introduces distortions into the financial system, which I think offset that.”

The Fed chief said people should never “bet” against the American economy and firmly played down suggestions that if faced a second Great Depression. But he took care not to promise a swift, so-called V-shaped rebound.

“This economy will recover. It may take a while,” he said. “It could stretch through the end of next year. We really don’t know.”

Mr. Powell also stressed that the central bank hadn’t exhausted its options for aiding the economy.

“There’s a lot more we can do. We’ve done what we can as we go. But I will say that we’re not out of ammunition by a long shot,” he said. Mr. Powell noted the Fed can increase its emergency lending programs and make monetary policy more supportive through forward guidance and by adjusting the Fed’s asset-purchase strategy.

That could be a veiled reference to yield curve control, where the Fed undertakes to hold yields out to a certain maturity at a certain level, as the Bank of Japan already does. Some analysts expect the Fed to move in that direction later this year.

FISCAL POLICY
Mr. Powell’s remarks follow his grave warning Wednesday that the US economy faces lasting harm from the pandemic if the government doesn’t step up. The comments add support to calls for more congressional spending as Democrats push for a fresh $3 trillion in virus aid on top of a record $2.2-trillion package agreed in March. On Friday, the House passed the measure, though it has no future in the Republican-led Senate.

Mr. Powell can expect questions on the scale and timing of additional fiscal relief when he appears before the Senate Banking Committee on Tuesday.

Pressed on the question during the CBS interview, Mr. Powell said providing more congressional support to state and local governments was “something that deserves a careful look,” and also cited the need for policies to limit business insolvencies and keep workers in their jobs and homes.

He also declined to be drawn into the debate on when the US economy should reopen, beyond saying it should happen carefully to minimize the risk of sparking more infections.

But he opened up when it came to the next time he’d feel safe sitting in a crowd to watch his hometown’s Stanley Cup-winning hockey team, the Washington Capitals.

“Certainly no sooner than next season,” he said. “Public sporting events, public concerts and things like that — those will be among the last things that can be resumed.” The National Hockey League’s 2020-2021 season is scheduled to start in October, 2020. — Bloomberg

ERC to Meralco: explain high power bills

SWAMPED with complaints, the Energy Regulatory Commission (ERC) on Monday ordered Manila Electric Co. (Meralco) to explain its calculation for its past customers’ monthly billings from March to May.

“We have been bombarded with complaints on Meralco’s alleged high billings covering the past three months, including this May, and we need to look into these consumers’ allegations that we required Meralco to submit to us data or information for us to validate the accuracy of their billing calculations,” ERC Chairperson and Chief Executive Officer Agnes VST Devanadera said in a statement.

In a letter dated May 15, the commission asked the country’s biggest distribution utility about the basis of its determination of the kilowatt-hour (kWh) consumption of its customers during the period of enhanced community quarantine (ECQ) from March to May.

The ERC is also seeking the listed utility’s power bills from suppliers, which were reflected in its computation of generation rate, as well as its invoices from the National Grid Corporation of the Philippines (NGCP) for the computation of its transmission rate and its uniform reportorial requirement for the billing periods.

In a statement last week, Meralco addressed customers’ bill shock, saying that the May bill is the result of the actual electricity consumption in kWh from the current meter reading, plus the estimated consumption reflected in the deferred April and March bills.

“This total, which is already based on the true and actual readings, is what customers actually see in the May bill. That is why you may notice a rise in the total amount due,” it said.

According to Meralco Spokesperson Joe R. Zaldarriaga, some March and all April bills were estimated based on the average daily consumption of customers from the past three months, following the distribution services and open access rules (DSOAR) issued by the ERC.

The apparent spike in electricity rates was due to various factors, the utility said. These include the uptick in power consumption during the ECQ and the high May temperature, which led to higher use of cooling appliances at home.

Meralco rates for this month is set to go down with a typical household consuming 200 kWh to likely see a P50 cut in its monthly bill. This is due to a reduction in its overall electricity rates by P0.2483 per kWh to P8.7468/kWh from April’s P8.9951/kWh.

Its generation charge for this month went down by P0.2537/kWh to P4.3848/kWh from last month’s P4.6385/kWh, while its transmission cost slightly went up by P0.0175/kWh as ancillary charges were increased, along with taxes and other charges posted a net decrease of P0.0121/kWh.

The ERC has yet to determine whether or not Meralco complied with the DSOAR and its advisories on the implementation of pass-thru charges, which were ordered deferred.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Adam J. Ang

ABS-CBN interim permit recalled

THE House of Representatives reconsidered the second reading approval of House Bill (HB) 6732, which seeks to grant provisional franchise to ABS-CBN Corp. until October 31, 2020.

During the session on Monday, House Deputy Majority Leader Wilter Wee Palma II said lawmakers recalled the second reading approval to give way to members who wish to make interpellations and amendments to HB 6732.

The bill was approved on second reading on Wednesday last week, the same day it was filed by House Speaker Alan Peter S. Cayetano.

Albay Rep. Edcel C. Lagman raised constitutional concerns on the passage of the bill in first and second readings on the same day.

“This concurrent passage on first and second reading on the same day on 13 May 2020 violates Sec. 26 (6) of Art. VI of the Constitution which unequivocally requires three readings on separate days for a bill to become a law, unless certified urgent by the President,” he said in a statement on Monday.

Mr. Lagman, however, lauded the House leadership “for seeing the light on the need to reconsider the approval on second reading” of the bill.

He further encouraged the House leaders to expedite the consideration of the bills proposing for a 25-year renewal of the network’s franchise.

“The hearings on the franchise renewal bills should be calendared soonest to enable ABS-CBN to explain or traverse its alleged franchise violations and ventilate all other related issues once and for all,” he said.

ABS-CBN DEFENDS ASSIGNED FREQUENCIES
Separately on Monday, ABS-CBN said it had submitted on May 15 its written explanation to the National Telecommunications Commission (NTC) Legal Branch why the frequencies assigned to it should not be recalled.

The submission is required by the cease-and-desist order issued on May 5 by the commission against the media giant whose franchise had expired on May 4.

In its 19-page explanation, the network denied the conclusion made by the NTC that its “frequencies should be recalled on the ground that its legislative franchise had expired.”

“Recent events indicate that the grant of a legislative franchise to ABS-CBN is forthcoming. The recall of the assigned franchise would thus be a useless and costly exercise, in contravention of the intent and desire of Congress,” it said.

The media company added being allowed to retain its frequencies is “consistent with legislative policy.”

It argued that instant proceedings on the matter must be suspended as the Supreme Court has yet to decide on its petition to block the cease-and-desist order issued by the commission.

The network said the recall of the assigned frequencies “may only be done after hearing and compliance with the requisites of due process of law.” — Genshen L. Espedido and Arjay L. Balinbin

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