YIELDS ON government securities (GS) fell last week on expectations of rate cuts from the Bangko Sentral ng Pilipinas (BSP).
On average, GS yields dropped 19.2 basis points (bps) week on week, according to the PHP Bloomberg Valuation (PHP BVAL) Service Reference Rates published on the Philippine Dealing System’s website as of April 30.
At the secondary market, GS yields fell across-the-board at the close of trading last Thursday. The 91-, 182- and 364-day Treasury bills (T-bills) declined by 10.5 bps, 9.9 bps, and 28.5 bps, respectively, to 2.974%, 3.064%, and 3.010%.
Debt papers at the belly also dropped with the two-, three-, four-, five-, and seven-year Treasury bonds (T-bonds) falling 23.1 bps (to 3.077%), 21.2 bps (3.159%), 19.2 bps (3.236%), 18.3 bps (3.305%), and 19.8 bps (3.413%).
The 10-, 20-, and 25-year T-bonds went down 27.3 bps, 18.1 bps, and 15.3 bps from the previous week to fetch 3.490%, 4.321% and 4.465%.
Analysts attributed the decline to investors’ expectations of more aggressive actions from the BSP.
“Follow-through buying pushed yields lower versus [previous] week over BSP’s pronouncements of another possible rate cut and its willingness to utilize a wider set of monetary policy tools at its disposal,” First Metro Asset Management, Inc. (FAMI) said in an e-mail.
“With supportive policies from BSP and strong liquidity in the market, T-bills auction and FXTN 5-74 reissuance were also well demanded,” it added, referring to the five-year T-bonds reissued last week.
In a mobile phone message, Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said the decline was caused by expectations of further cuts on the policy rate and banks’ reserve requirement ratio during a sharp decline in global oil prices that could drag inflation slower.
“The latest $2.35-billion global US dollar bond issuance of the Philippine government earlier [last] week also helped ease local interest rates… as this somewhat reduces the need for the government to borrow from the local market (less crowding out effects) to finance its stimulus measures and COVID-19 (coronavirus disease 2019) program,” Mr. Ricafort added.
In a television interview last week, BSP Governor Benjamin E. Diokno said that monetary easing is “still in the agenda” as the country tries to minimize the impact of COVID-19 on the economy.
The Monetary Board (MB) canceled its May 21 meeting after the 50-bp cut in benchmark policy rates in an off-cycle meeting on April 16 meant to boost lending. The move, along with earlier 50-bp and 25-bp cuts this year, left the reverse repurchase rate at 2.75%, the lowest on record and since the BSP shifted to an interest rate corridor in 2016.
Mr. Diokno said they will observe current developments as monetary policy works with a lag. The MB’s next scheduled policy-setting meeting will be on June 25.
Last week also saw the government offering 10- and 25-year dollar-denominated senior unsecured bonds that will be used for “general purposes, including budgetary support.” The Bureau of the Treasury (BTr) on Tuesday said it sold $1.35 billion and $1 billion for the 25- and 10-year dollar bonds, respectively.
For this week, RCBC’s Mr. Ricafort said markets will look to domestic economic reports such as inflation and the gross domestic product (GDP) data, for leads.
Inflation and factory output data will be reported Tuesday, May 5. Meanwhile, data on trade and GDP will be released on Wednesday and Thursday, respectively.
For FAMI, the lack of catalysts will influence the market to trade sideways and remain at current levels on prolonged extended community quarantine measures.
“We think April inflation will fall within BSP’s projections of 1.9-2.7% despite upward pressure coming from higher food prices and electricity rates. Furthermore, [first-quarter] GDP numbers won’t probably reflect yet the impact of the pandemic hence, macroeconomic indicators slated for release in early May have been broadly priced into current yields’ levels,” FAMI said. — Marissa Mae M. Ramos
Monica Angelique Ramos entry for National Museum’s coloring set — CREDIT: MONICA ANGELIQUE RAMOS
CCP Online
The following shows are premiering online this week: Ballet Philippines in Firebird and Other Ballets on May 5, 3 p.m.; Kung Paano Ako Naging Leading Lady, written by Carlo Vergara and directed by Chris Martinez for Virgin Labfest 9, on May 7, 3 p.m.; and actress-singer Bituin Escalante belts out well-loved Filipino songs in Triple Threats: Everything in Bituin on May 9, 3 p.m. Access the shows through bit.ly/CCPOnlineYT.
To keep in touch with art lovers, Silverlens presents Art Boost, an online drive to maintain engagement with art through social media, exhibition catalogues, and videos. The current At Home With series features Bernardo Pacquing, Hanna Pettyjohn, and Chati Coronel. Revisit contemporary artist Gary-Ross Pastrana’s notes on collage making; and Mit Jai Inn’s use of light, color, and structure in his Actantis exhibit. Visit Silverlens’ official social media accounts and its website (https://www.silverlensgalleries.com/) to view the exhibitions.
The BioBalance Wellness Institute offers the following services and features: free online consultation with its clinical nutritionist and nurse practitioners, wellness expert psychologist; online health and immunity risk assessment; and more payment options for availed services and products. For more information, contact 0917-521-4860 or concierge@biobalanceinstitute.com.
IkotMNL tour from home
The Museo de Intramuros, Ayala Museum, and Presidential Museum and Library in Malacañang Palace have partnered with Google to put their works online. Learn new things at home and visit the museums through a virtual tour: https://artsandculture.google.com/partner/malacanang-presidential-museum-and-library; https://artsandculture.google.com/partner/ayala-museum; and https://artsandculture.google.com/partner/intramuros-administration.
MegaMoveTunaMax
To keep its promise of encouraging a healthy lifestyle, Mega Tuna launches #MegaMoveTunaMax, a series of Facebook Live events featuring fitness classes. The fitness sessions will run all Mondays of May via the official Facebook page (https://www.facebook.com/megapuretuna/). Week 1: HIIT; Week 2: Pop Dance (tentative); Week 3: Total Body Workout; and Week 4: Hip Hop Dance (tentative).
CAST recordings on Spotify
CAST PH offers CAST Recording, a collection of one act plays, recorded online and released as radio/audio drama. The first recordings are A Matter of Husbands by Ferenc Molnár, featuring Pinky Amador and Giannina Ocampo-Van Hoven; and Enemies by Neith Boyce and Hutchins Hapgood, featuring David Bianco and Jennifer Blair-Bianco. Listen at https://open.spotify.com/show/5bLSOsJPkZnlaEFDfSSHbl?si=fDsW-kNpT6iP89En-dWbog.
National Bookstore delivery
National Book Store has reopened its branch in Cubao, Quezon City and now offers delivery services for its supplies to selected areas around Metro Manila. For orders from Marikina, San Juan, and Quezon City, contact 0917-631-1374; Mandaluyong, Pasig, Pateros, and Taguig contact 0917-834-3224; Caloocan, Manila, Navotas, and Valenzuela, contact 0917-302-7475; Makati, Muntinlupa, Parañaque, Pasay, and Las Piñas, contact 0917-791-0916. Orders are accepted on weekdays from 9 a.m. to 4 p.m.
Film masterclasses
Learn film concepts through interviews and film retrospectives from more than 60 directors, producers, writers, and actors including Bong Joon Ho, Abbas Kiarostami, Agnès Varda, Spike Lee, Werner Herzog (with Roger Ebert), Jane Campion, Jodie Foster, Todd Haynes, Ang Lee, Jessica Lange, and Clint Eastwood. To watch, visit https://walkerart.org/magazine/series/dialogues-film-retrospectives.
National Theatre online
LONDON’S National Theatre launched National Theatre at Home on YouTube (https://www.youtube.com/user/ntdiscovertheatre). Every Thursday (7 p.m. BST, 2 p.m. EST) they will release free to watch shows which will be online for one week. Danny Boyle’s adaptation of Frankenstein, starring Benedict Cumberbatch and Jonny Lee Miller, premiered on April 30. Shakespeare’s Anthony and Cleopatra, starring Ralph Fiennes, premieres on May 8.
Fully Booked delivery
FULLY BOOKED is back in business for book orders (https://www.fullybookedonline.com/). In a Facebook post, Fully Book stated: “[O]ur Lazada and Shopee stores will be back online, too. Please do expect some delays and changes in our processes.” For advisories, visit bit.ly/fb-ecq-advisory.
English National Ballet shows online
ENGLISH National Ballet launched ENB at Home, releasing one show weekly for its Wednesday Watch Parties. The first in the lineup is Broken Wings, a Frida Kahlo-inspired production starring lead principal and ENB artistic director Tamara Rojo as Frida. It is available to stream for free for 48 hours. Watch at https://www.youtube.com/user/enballet or https://www.facebook.com/EnglishNationalBallet/.
BRITISH rock band Radiohead has been uploading some of its concerts via its official YouTube page (https://www.youtube.com/user/radiohead). Fans of the Rock and Roll Hall of Fame band, known for songs like “Creep” (1992) and “Fake Plastic Trees” (1995), can watch the concerts Live from a Tent in Dublin (2000) and Live in Berlin (2006).
David Guetta: United at Home
FRENCH DJ David Guetta, the man behind the song “Titanium” (2011) featuring singer SIA, held a live concert fundraiser inside his Miami home benefitting the World Health Organization and other charities. The two-hour concert is currently available on his YouTube page (https://www.youtube.com/user/davidguettavevo).
Josh Groban concerts
JOSH Groban brings his concerts to your home via online, streaming every Thursday on YouTube (https://www.youtube.com/user/joshgroban). The second concert in the series, Stages: Live (2016), premiered on April 30. The singer has also includes commentary throughout each film. For more information, visit https://www.facebook.com/JoshGroban/.
Worldwide Concert for Our Culture
JAZZ at Lincoln Center’s annual Spring Gala: Worldwide Concert for Our Culture is now available to stream online. The honorees of the event are Clarence Otis and Jacqueline L. Bradley (Ed Bradley Award for Leadership in Jazz) and Phil Schaap (Jazz at Lincoln Center Award for Artistic Excellence). Performers at the gala include: Wynton Marsalis, Cecile McLorin Salvant and Sullivan Fortner, Chucho Valdes, Nduduzo Makhathini, and Baqir Abbas. For more information, visit jazz.org/gala2020. Watch on YouTube: https://youtu.be/IjJbZetCvGw.
Dior’s Designer of Dreams exhibition
DIOR’S exhibition titled Christian Dior: Designer of Dreams is now available to view online. Originally held at Paris’ Musée des Arts Décoratifs from 2017 to 2018, the exhibition traces the evolution of the house of Dior from post-war Paris to the present through a behind-the-scenes in-the-making of the exhibition, plus a virtual tour of its rooms. Visit Dior’s YouTube channel to watch the documentary (https://www.youtube.com/watch?time_continue=1521&v=FLWDWzMrkBE&feature=emb_title).
Frank Lloyd Wright virtual tours
THE Frank Lloyd Wright Building Conservancy, in partnership with the Frank Lloyd Wright Foundation and Unity Temple Restoration Foundation is offering #WrightVirtualVisits every Thursdays (1 p.m. Eastern/10 a.m. Pacific time) in participating sites. Check the participating sites at https://savewright.org/news/public-wright-sites-swap-virtual-visits/.
Movie night with Jamie Lee Curtis
EVERY Saturday (in the Philippines) until May 8, Lionsgate and Fandango’s Movie Clips YouTube channels will be streaming films. On May 2, watch La La Land (2016) by Damien Chazelle, and John Wick (2014) by Chad Stahelski. Aside from the screening, Ms. Lee Curtis will also engage with the online audience via real-time chats and movie trivia.
Color Tolkien characters
THE official Facebook page of the late author J.R.R. Tolkien has uploaded an illustration of Smaug the Magnificent from The Hobbit Movie Trilogy Colouring Book. Download the coloring sheet at https://bit.ly/2wKY3lp.
MoMA free courses online
After offering virtual tours, the Museum of Modern Art (MoMA) is now offering free online courses. The courses include a series of five free classes for contemporary art, fashion, and photography. It includes readings and exercises which can be completed within 12 to 38 hours. For details, visit https://www.coursera.org/moma.
Print & Play activities for kids
Keep kids entertained with new curated Print & Play activities from HP. The activities from craft making, mazes, dot-to-dot drawing and puzzles are suitable for ages 2 to 12. With HP Print & Play, parents can choose from a range of activities that are best suited to their children’s needs to achieve the best possible learning outcomes. To try the activities, visit https://www8.hp.com/ph/en/printers/printandplay/index.html?jumpid=va_u19mhncewr.
Harry Potter exhibit online
The British Library’s Harry Potter: A History of Magic exhibition is available online through Google Arts and Culture. Its features include video clips and sketches, a Q&A with exhibit curator Julian Harrison. To view, visit https://artsandculture.google.com/project/harry-potter-a-history-of-magic.
Hogwarts Is Here, an online version of the Harry Potter series’ magical school by Harry Potter fans that allows visitors to take courses like the characters from J.K. Rowling’s book series. Various courses include Astronomy, Herbology, History of Magic, and Transfiguration. The website also includes a forum, groups, and library feature. Visit http://www.hogwartsishere.com/.
Stories After Dark features podcasts on Philippine true crime and mystery stories. It currently has 14 episodes including The Maguindanao Massacre (2009), The Ozone Disco Fire (1996), and Pepsi Paloma: Rape or Publicity Stunt? Suicide or Murder? (1982/1985). To listen, visit https://www.facebook.com/storiesafterdarkph/.
Palacio de Memoria virtual tour
Art and history enthusiasts can now go on a virtual tour of Palacio de Memoria, the resplendent Colonial Revival mansion, and marvel at its luxurious facilities and hundreds of Euro-Filipino paintings, sculptures, art displays, and historical pieces online. It features the showroom of Palacio de Memoria’s auction house, Casa de Memoria or the Casa, which houses the Lhuilliers’ unrivalled collection of antiques, the Mosphil Lounge, and a passenger plane that that was refitted to be a lounge for special occasions. To view the complete Palacio de Memoria’s virtual tour, visit https://www.palaciodememoria.com/tours. For more updates, follow @thepalaciodememoria on Facebook and @palacio.de.memoria on Instagram.
LOCAL SHARES are seen to climb this week as investors expect a recovery in some sectors with the easing of rules for areas under enhanced community quarantine (ECQ) and general community quarantine (GCQ).
The benchmark Philippine Stock Exchange index (PSEi) rose 56.74 points or 1% to 5,700.71 on Thursday. This sustained the main index’s weekly climb for a second straight week, recording an increase of 4.3% last week.
Value turnover slipped 1.4% to an average of P4.95 billion, while net foreign selling grew 8.4% to an average of P669.95 million.
The local market was closed on Friday in observance of Labor Day.
“Prospects of modified lifting of ECQ provided hope for equities players, pushing the PSEi 235 points higher to 5,700,” online brokerage 2TradeAsia.com said in a market note.
“Part of the positive mood was aided by the launch of ‘Operation Warp Speed’ in the US, that aims to gather private pharmaceutical firms to cut the development time for a vaccine on COVID-19 (coronavirus disease 2019) by as much as eight months,” it added.
The government issued last week its updated guide on areas observing GCQ starting May 1, which will allow the resumption of operations of some non-essential establishments such as malls and shopping centers.
The mood of investors this week will remain focused on positive developments in the COVID-19 pandemic, 2TradeAsia.com said.
“With a structured approach on mass testing, listed firms are emerging with clearer focus from the ECQ, specifically to their resumption trajectory, this time, fortified with risk contingency measures,” it said.
“(P)articipants should get a picture of how things would unfold for the ECQ-GCQ transition mode, with virtual briefings in place from select stocks,” it added.
Scheduled to hold their briefings this week are Metropolitan Bank & Trust Co.; Cemex Holdings Philippines, Inc.; Globe Telecom, Inc.; Metro Pacific Investments Corp.; International Container Terminal Services, Inc.; and Integrated Micro-Electronics, Inc.
For Philstocks Financial, Inc. Research Associate Piper Chaucer E. Tan, developments in Wall Street will also push activity in the local bourse, after White House signaled new tariffs on China because of its handling of the coronavirus crisis.
“I think the market catalyst for this week is development in the US markets, how it will react to the coronavirus tariffs. These tariff issues have (arisen), and as we know, these tariffs affect market in a negative way,” he said in a text message yesterday.
He also said the market may be on wait-and-see mode, as seen in the consolidated movement of the PSEi in the past two weeks. “I expect this week to be within the (5,440-6,000) range also,” Mr. Tan said.
2TradeAsia.com is putting immediate support for the PSEi within 5,500-5,600 and resistance within 5,800-5,900.
AMID this time of uncertainty, the Autohub Group tells customers it is sure of one thing: That it has kept its promise to bring in the Shelby brand into the Philippine market.
Autohub now introduces the newest iteration of the Shelby Super Snake, which builds on the Ford Mustang GT and reworks it with aesthetic and performance enhancements “for a faster and more thrilling drive.” Shelby’s top-of-the-line, high-performance Mustang imbues Ford’s iconic 5.0-liter V8 with forced induction via an Edelbrock supercharger for an increased output of up to 825 horses.
Dissipating the additional heat generated by the engine is an external cooling upgrade specifically designed by Shelby American, Inc. This consists of a new radiator, aluminum tank, and heat exchanger. Performance half shafts, transmission, and a Ford Performance exhaust complete the drivetrain upgrades. Handling is sharpened as well with additional stability brought by a Ford Performance Track Pack suspension set.
Exterior modifications include a new front bumper, hood, grille, rocker panels, front splitter, rear spoiler, tail panel, rear diffuser, and more. The Super Snake runs on Shelby 20-inch forged aluminum wheels wrapped with Shelby performance-spec tires. For enhanced braking, the system has been bestowed with Shelby by Brembo brakes, which consist of red six-piston calipers up front and four-piston calipers at the rear.
The cabin of the Shelby Super Snake Mustang features new floor mats and door sill plates, and gauge cluster. It bears custom Shelby badging on the dashboard and engine cover. Shelby-exclusive components were developed and tested with original equipment manufacturers. On pump gasoline and street-legal tires, the Shelby Super Snake can reach 100kph from standstill in 3.5 seconds.
“We are thrilled to finally unleash the Shelby brand to our market,” said Willy Tee Ten, president of Autohub Group of Companies. “Indeed, the iconic Shelby brand will bring more excitement and fuel passion to motorists and petrol-heads alike,” he added. The Shelby Super Snake is now available for retail at Autohub Car Care Services (ACCS).
Toyota significantly ramps up production of face shields
TOYOTA MOTOR Corporation and Toyota Group companies are exponentially scaling up production of medical face shields by around 20 times as they envision producing 40,000 units per month for distribution to frontliners in the fight versus the pandemic.
From 500 to 600 units per week, the auto conglomerate has started making 2,000 units a day since April 27. Toyota plans to further expand in-house production to approximately 70,000 pieces per month (approximately 3,600 pieces per day).
Toyota Group companies engaged in producing medical face shields include Toyota Motor East Japan, Inc., which provided 3,000 units it produced to the Miyagi Prefecture on April 20; Toyoda Gosei Co., Ltd.; Daihatsu Motor Co., Ltd.; and Hino Motors, Ltd. The firms have all started trial production, with Daihatsu and Hino providing face shields to medical facilities in their immediate areas.
Toyota Industries Corporation also plans to produce 10,000 units per month, and Toyota Auto Body Co., Ltd. is furthering considerations toward starting production of medical face shields from mid-May onwards.
The production of personal protective equipment is part of Toyota’s Kokoro Hakobu Project. The Toyota Group is prioritizing the provision of the medical face shields it produces to medical facilities and local governments in the localities of the various companies of the group.
THE FARMGATE price of palay, or unmilled rice, rose 4.58% week-on-week to P18.28 per kilogram in the second week of April, with prices still down 2.19% on a year-on-year basis, according to the Philippine Statistics Authority (PSA).
In its weekly update on palay, rice, and corn prices, the PSA said that the average wholesale price of well-milled rice (WMR) rose 1.5% week-on-week to P39.17 while the retail price rose 0.17% to P42.47.
The average wholesale price of regular-milled rice (RMR) rose 2.26% to P34.91 while the retail price rose 1.44% to P37.39.
The farmgate price of yellow corn grain fell 0.98% week-on-week to P12.11.
The average wholesale price of yellow corn grain rose 7.83% to P25.07 while the retail price rose 1.61% to P25.91.
The farmgate price of white corn grain fell 0.4% to P14.94.
The average wholesale price of white corn grain was flat at P25, while the retail price rose 2.72% to P31.33. — Revin Mikhael D. Ochave
THE Office of the Solicitor-General (OSG) cautioned the National Telecommunication Commission (NTC) that it cannot grant provisional authority (PA) to media network ABS-CBN Corp. and its unit without their legislative franchises, which will expire on May 4.
Solicitor General Jose C. Calida, citing a jurisprudence, said the NTC can only issue a provisional authority to operate to a broadcasting company if it is given a franchise by the Congress and is awaiting approval of its application for a certificate of public convenience (CPC) before the NTC.
“Hence, a PA should only be issued once a congressional franchise has been granted and an application for CPC is pending before the NTC for approval. The NTC cannot issue a PA when the broadcast company has no valid and existing legislative franchise,” Mr. Calida said in a statement.
“No less than the Constitution requires a prior franchise from Congress. Hence, when there is no renewal, the franchise expires by operation of law. The franchise ceases to exist and the entity can no longer continue its operations as a public utility,” he added.
His stand is contrary to what Justice Secretary Menardo I. Guevarra said in a Senate hearing in February that the Congress may authorize the NTC to issue a PA to ABS-CBN pending the renewal proceedings of its franchise with lawmakers.
House Speaker Alan Peter S. Cayetano and Palawan Representative Franz E. Alvarez, chair of the House Committee on Legislative Franchises, sent a letter to the NTC, asking it to grant a PA to ABS-CBN on May 4 until the Congress decides on the networks franchise.
NTC said in March that it would issue the provisional authority to ABS-CBN.
Mr. Calida said the letter from the House of Representatives or the Senate Resolution No. 344 only expresses their sentiments and does not grant power to the NTC, citing a Supreme Court decision.
“These issuances cannot amend the current law requiring a congressional franchise for the operation of broadcasting networks. Not being separate laws themselves, they cannot amend or repeal prior laws,” he said.
The state’s top lawyer also said the NTC cannot use as a legal basis the opinion of the Department of Justice and “equity considerations” do not justify the grant of PAs to ABS-CBN and its affiliates, saying equity only applies when there is no law to be applied.
He also warned that the NTC commissioners may face anti-graft and corrupt practices complaints if they issue the PAs to ABS-CBN and its unit.
It can be recalled that the OSG filed a quo warranto petition before the Supreme Court for the cancellation of the legislative franchises of ABS-CBN and ABS-CBN Convergence, Inc. for “highly abusive practices” and violations of law.
The petition includes supposed violation of the laws on foreign ownership restriction and operation of a pay-per-view channel without NTC approval, among others. — Vann Marlo Villegas
AGRICULTURAL production is estimated to have contracted in the first quarter of 2020 as logistics issues disrupted the industry during the lockdowns ordered to contain the coronavirus disease 2019 (COVID-19) outbreak, analysts said.
The Philippine Statistics Authority (PSA) is scheduled to report the first quarter performance on May 6, Wednesday.
“My guess is low negative for agricultural growth. The lockdown affects logistics from farm to market and perishables like chicken, vegetables, fruits and fish can be affected,” Rolando T. Dy, executive director of Center for Food and Agri-Business of University of Asia and the Pacific (UA&P) said in a mobile phone message.
In an e-mail interview, Pampanga State Agricultural University professor Roy S. Kempis said that he believes the agriculture sector posted a contraction in output.
“For 2020, and starting in the first quarter of 2020, the pandemic shall be the central ‘pile’ that will level the economy and agriculture sector to the ground and/or bury these, even below ground. The changes from the fourth quarter of 2019 to the first quarter of 2020 would be a range from a conservative estimate 0.1% drop to a pessimistic estimate 0.5% drop,” Mr. Kempis said.
The Department of Agriculture (DA) initially said that its growth target for the quarter is around 2%.
In a virtual news conference Thursday, DA Spokesman Noel O. Reyes said that the DA is awaiting the results of the review being conducted by the department’s planners.
“Hintayin po natin ang data (Let us wait for the data),” he said, noting that the agriculture sector consists of “halos kalahati crops, 25% livestock, at 25% fisheries. (Nearly half of agriculture output is crops, 25% livestock, and 25% fisheries),” Mr. Reyes said.
The last previous contraction in agricultural output came in the second quarter of 2019. The PSA reported a 1.27% contraction, the biggest decline since the minus 2.21% posted in the second quarter of 2016.
In the fourth quarter of 2019, the PSA reported that agricultural production rose 0.4%, led by crops, poultry, and fisheries, while livestock production contracted.
In the first quarter of 2019 output rose 0.67%, driven by livestock, poultry, and fisheries, while crop production declined.
Agriculture accounts for around a quarter of the Philippine workforce but about 10% of gross domestic product.
“I expect rice and poultry production to have grown while livestock, primarily hogs, will experience a contraction. Fisheries will remain flat,” Mr. Dy said.
The PSA downgraded its estimates for the production of palay, or unmilled rice, in the first quarter to 4.25 million metric tons (MT), which if borne out by the data points to a 3.8% decline in output year on year.
It aso estimated a decline in corn production of 0.9% year-on-year to 2.40 million MT.
Mr. Kempis said the contraction in agricultural output will be across all sectors, with crops, vegetables, and fruits most affected by logistical issues.
“Rice and corn production will also decline but this could remain in a precarious (state of) positive growth because localized lockdowns still offered farmers a window to farm plus the fact that well-milled rice and corn can be stored longer and is going to be less affected by logistical issues, compared to vegetables and fruits,” Mr. Kempis said.
He noted that livestock and poultry may post growth while fisheries could go positive or negative.
UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion was a dissenter from the negative consensus, saying that agriculture could have “outperformed” despite the Taal and COVID-19 calamities.
The first quarter “may have outperformed year-on-year. Despite the momentary Taal eruption and the initial days of ECQ, agriculture production output momentum may have carried on because of largely favorable weather throughout the country,” he said in an e-mail interview.
“In Q1 2020 and growth is projected to be better than Q4 2019 and Q1 2020. Despite the COVID-19 pandemic wreaking havoc on consumption demand, agricultural products are basic (essential) commodities and are important inputs to other products. I do expect agriculture to have an added growth bump minus the usual impact of bad weather mid-year and toward the end year on its output as long as general supply corridors are not hampered by health care intervention measures (such as) ECQ-like checkpoints and travel bans.”
Mr. Kempis said that 2020 agricultural production will not be an improvement on 2019’s, but noted that are still positive signs to look forward to as the economy and the agricultural sector slowly open up after the ECQ (enhanced community quarantine).
“With the no work-no pay working population starting to earn wages as the economy is opened up for business and work, their purchasing power is also energized that would be welcomed by a revitalized agricultural production and manufacturing sector,” Mr. Kempis said. — Revin Mikhael D. Ochave
THE Department of Information and Communications Technology (DICT) said it will work to make internet service cheaper and faster after the end of quarantine, which has accustomed the public to transacting more online.
“To have less or inexpensive connectivity at the highest speed is our target, and we are doing something about that by encouraging the small players (like small telcos, and cable TV operators in the provinces) to connect homes to the internet,” Communications Undersecretary Eliseo M. Rio, Jr. told BusinessWorld in a recent phone interview.
He said the department will be lowering spectrum user fees to enable small internet service providers to expand in the provinces.
“We will encourage them by lowering the spectrum user fees, so that the spectrum is going to be used for the internet or for WiFi,” he said.
“Kasi ngayon ang spectrum user fees (Right now the spectrum user fees) are the same as those paid by the big telco companies. ’Yung mga small telcos whose subscribers are only about 1,000 or 2,000, patawan mo ng P100 million a year ’yan ay talagang di sila makapag-operate (If you charge the small telcos with 1,000 or 2,000 subscribers a P100 million fee, they will not be able to operate), but if you lower that they can add more connectivity to the home,” he added.
He noted that under the so-called “new normal,” almost all transactions will be done online.
“Talagang ICT ang nagpapagalaw sa lahat (ICT is helping everything move), so we must be able to strengthen our capabilities to do transactions in the virtual world,” he said.
“We recognize the new norm of our society. People now, if they can work from home and if their companies allow that, so ito na ngayon ang bagong norm (this is the new norm), and (students) are now not going to school as they are actually having classes at home, so ito ’yung dapat naming i-address (and this must be addressed) by increasing the connectivity to the home,” he added.
He said the rollout of new cell sites is ongoing despite the government-imposed lockdown to prevent the spread of the coronavirus disease 2019 (COVID-19).
“Ang problema lang ngayon nag-slow down ang pag-import ng mga materials. It slows down kasi may restrictions sa movement, pero tuloy-tuloy pa rin (Imports are a hurdle because of the restrictions on movement, but otherwise it is proceeding),” he said.
Mr. Rio also said the department has yet to release the “common tower policy” which will govern the shared use of telecommunications towers nationwide.
The concept of tower sharing is being pushed by the DICT to improve tower density, which it said is one of the lowest in the region at 4,000 subscribers per tower. Allowing common towers means more than one telco can use a single tower, thereby increasing the number of subscribers being served by each tower. — Arjay L. Balinbin
THE Philippine Economic Zone Authority (PEZA) said the government should focus on locating Philippine offshore gaming operators (POGOs) outside Metro Manila and in selected areas designated as games and recreational islands.
The government allowed POGOs to operate with up to 30% of their workforce in areas under quarantine, after classifying them as business process outsourcing (BPO) companies.
PEZA in a statement on Sunday said that it supports the reclassification but added does not register POGOs.
The Information Technology and Business Process Association of the Philippines (IBPAP) on Saturday outlined the differences between POGOs and outsourcing companies, noting that the latter are registered with PEZA and the Board of Investments. POGOs register with the Philippine Amusement and Gaming Corp. (PAGCOR).
“(PEZA) does not register IT/BPOs engaged in online gambling, but supports the government efforts to raise income by POGO and online gambling,” PEZA Director-General Charito B. Plaza said.
PEZA said the government can locate online gambling in the Cagayan Valley Ecozone and the Aurora Economic Zone, which have the authority to register them.
“The government can focus the location of online gambling in these two areas or put these operators in selected islands for security and safety purposes but, not in the existing business districts and urban centers of Metro Manila and other cities,” Ms. Plaza said.
“PAGCOR is very capable of putting up and managing these selected islands, designing these as Games and Recreation Tourism destinations similar to Macau and Las Vegas,” she added.
IBPAP Chief Executive Officer and President Rey C. Untal said BPOs come to the Philippines for the domestic human capital, against POGOs which hire foreign labor.
“It is also worth noting that the IT-enabled jobs BPO companies create are of much higher value, requiring a range of technical, domain, and soft skills. This is also very different from the work done by the game development sector which is sometimes mistaken as having similarities due to the gaming notion,” he said.
Trade Secretary Ramon M. Lopez said in a mobile message to reporters on Saturday: “There are similarities with BPOs in terms of the use of IT and online platforms in their business models, not bricks and mortar, no physical interaction with clients and customers. (POGOs) could impose the required minimum health protocol standards” required of BPOs in order to operate. — Jenina P. Ibañez
GROSS national income (GNI) was revised downward to 5.2% from 5.5% in 2019 after the adoption of the new 2018 base year, the Philippine Statistics Authority (PSA) said Friday.
The 5.5% reported in January had used 2000 prices.
GNI in the fourth quarter of 2019 was revised downwards to 5.8% from 6.2% previously.
GNI is the sum of the gross domestic product (GDP) — or the final goods and services the economy produced in a particular period — and the net income the country received from overseas.
The latest 2019 GNI growth estimate was the lowest since 2011’s 3.3%. Between 2001 and 2019, GNI growth averaged 5.5%.
Meanwhile, net primary income from other countries declined 2.2% last year — its first contraction since coming in at minus 1.1% in 2011.
It averaged 5.7% over the past 19 years, peaking at 26.7% in 2009.
CONTRIBUTION TO GDP
In the same report, the PSA noted that wholesale and retail trade and the repair of motor vehicles and motorcycles were the top contributors to GDP growth, averaging one percentage point (ppt) annually from 2001 to 2019.
Manufacturing and financial and insurance activities followed with an average of 0.9 ppt and 0.6 ppt, respectively.
On the expenditure side, household consumption was the biggest component, averaging 3.9 ppts.
The PSA updated its national accounts earlier this year by moving the base year from 2000 to 2018 to better reflect current economic activity.
The adoption of the 2018 base year takes in the expansion of industries such as information and communication; accommodation and food services; education; and human health and social work activities.
Previous base year changes involved the shift from 1955 to 1967, from 1967 to 1972, from 1972 to 1985, and from 1985 to 2000.
The PSA will release first-quarter GDP data Thursday using the 2018 base year.
A BusinessWorld poll of 11 economists yielded a median estimate of 2.9%, well below the 6.7% recorded in the fourth quarter and the year earlier 5.7%. — Marissa Mae M. Ramos
