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[B-SIDE Podcast] Data privacy during a pandemic

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The work-from-home era has begun. Straits Interactive Philippines Country Manager Edwin A. Concepcion tells BusinessWorld reporter Arjay L. Balinbin how an increase in telecommuting entails an even greater need to adhere to data protection regulations. In this episode, Mr. Concepcion sheds light on emerging data privacy challenges in the time of the COVID-19 pandemic and how innovators can potentially use big data to help the government tackle the crisis. To learn more about Straits Interactive and how the company delivers end-to-end data protection and governance as-a-service, visit straitsinteractive.com. This episode was recorded remotely on April 10. Produced by Nina M. Diaz, Paolo L. Lopez, and Sam L. Marcelo.

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Pernia quits as Duterte’s Socioeconomic Planning chief

ERNESTO M. Pernia on Friday resigned as President Rodrigo R. Duterte’s Socioeconomic Planning chief, citing personal reasons and “differences in development philosophy” with some fellow Cabinet members.

The President had accepted Mr. Pernia’s resignation and named Finance Undersecretary Karl Kendrick T. Chua as acting secretary of the National Economic and Development Authority (NEDA), Executive Secretary Salvador S. Medialdea said in a mobile-phone message.

“After reflection during Holy Week and consultations with my family and close colleagues, I have decided to resign from my post as secretary of Socioeconomic Planning,” Mr. Pernia said in a statement.

“This is due partly to personal reasons and partly to differences in development philosophy with a few of my fellow Cabinet members,” he added.

Finance Secretary Carlos G. Dominguez in a separate statement said the President’s economic team had not been consulted about Mr. Pernia’s decision to step down.

Mr. Pernia thanked the President for entrusting him with the post as well as his colleagues at the NEDA for the “trust and confidence in my leadership.”

“I would like to thank the President for appointing me to the position,” he said. “It has been an honor and privilege to have served the country under his administration for the past nearly four years.”

“I leave NEDA knowing that we have initiated and implemented meaningful changes that will help the country overcome these challenging times and on to a higher growth trajectory,” Mr. Pernia said.

Mr. Pernia recently joined the government’s Inter-Agency Task Force against the novel coronavirus in crafting an economic recovery plan.

He was appointed NEDA chief at the start of Mr. Duterte’s presidency in July 2016.

Mr. Pernia and other officials of the agency did not immediately reply to mobile-phone messages seeking comments. — Beatrice M. Laforga

Philippine economy may shrink by 0.2% — S&P

S&P Global Ratings expects the Philippine economy to shrink by 0.2% this year as the world comes to grips with the human and economic price of the novel coronavirus pandemic.

The expected contraction compares with the flat growth or a contraction of as much as 1% estimated by Finance Secretary Carlos G. Dominguez before the one-month Luzon-wide lockdown was extended until April 30.

“There are no shortcuts, no silver bullets to help us understand what the human and economic price of the COVID-19 pandemic will be,” S&P said in a report dated April 16.

“Only with experience and data can we learn the key lessons, among them: how long lockdowns need to last, how economies can reopen before a lasting medical solution is found, and what lasting imprint this episode will leave across the global economy,” it added.

“Tracking this crisis requires constant updating of our assumptions and models to help understand what the broad contours of pandemic will look like over the coming years,” the rating company said.

Meanwhile, S&P upgraded its 2021 growth forecast for the country to 9%. It cut its 2020 growth projection for Asia Pacific to 0.3%.

“Our forecasts now imply a loss in household and corporate income of about $2.2 trillion in Asia], which will be distributed across balance sheets,” it said.

“We expect economies to enter a transition period where social distancing measures will be along a continuum between full lockdowns and business-as-usual until mid-2021,” it added.

It may take until 2023 for economic activities in the region to normalize, S&P said.

S&P’s new forecasts assumed that the first wave of the outbreak peaked in China and will peak in April for most economies in Asia Pacific

It estimates that reported cases will peak early in the third quarter for some emerging markets, including India and Indonesia.

The COVID-19 virus has sickened 2.2 million and killed more than 147,000 people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.

S&P warned of rising joblessness amid the continued shutdown of businesses due to lockdowns in many economies.

“A surge in unemployment, say by more than 4 percentage points, would mean a much flatter recovery path in Asia-Pacific,” it said. “Consumption would be lower, saving would be higher, and stress may emerge among some of the region’s more leverage household sectors,” it said.

The debt watcher expects the Philippine jobless rate to rise to 6.8% this year.

The Philippine government initially targeted 6.5% to 7.5% growth this year before the outbreak occurred. — Luz Wendy T. Noble

Filipinos less upbeat about Q2, next 12 months — BSP

FILIPINO consumers were less upbeat about this quarter and the rest of the year, citing worries about lower income amid a novel coronavirus pandemic, according to the Philippine central bank’s latest consumer expectation survey.

The overall consumer outlook index for the second quarter fell to 9.2% from 15.7% in the first quarter, the Bangko Sentral ng Pilipinas (BSP) said in a statement on Friday.

The index for the next 12 months also dropped to 19.9% from 26.4% in the previous quarter’s survey results, BSP said.

Consumers cited rising prices, higher household expenses, low or no increase in income, natural calamities and the virus outbreak for their less upbeat outlook for the next quarter and next 12 months, the central bank said.

Filipinos were also looking at trimming down expenses this quarter, with the spending outlook index slipping to 33.3% from 37.1% in the previous quarter, suggesting that consumer spending may slow in the next three months, BSP said.

Fewer respondents expected higher spending on electricity, food, nonalcoholic beverages and tobacco, fuel, personal care, transportation, education, recreation and culture, clothing and footwear, restaurants and cafes, and communication.

More consumers expected higher spending for medical care and steady expenses for water, house rent and furnishing.

BSP said the percentage of households that considered the next 12 months as a favorable time to buy big-ticket items declined to 6.5% from 9.8%.

“Similarly, this less upbeat intention of buying the three big-ticket items in the next 12 months was observed,” the central bank said.

BSP said 5,406 households took part in the survey on Jan. 29 to Feb. 10. — Luz Wendy T. Noble

18 city jail prisoners, staff infected with coronavirus

By Vann Marlo M. Villegas, Reporter

EIGHTEEN prisoners and staff members at one of the Philippines’ city jails have tested positive for the novel coronavirus, according to the jail bureau.

Chief Inspector Xavier Solda, a spokesman for the Bureau of Jail Management and Penology (BJMP), told reporters on Friday they were “doing extensive contact tracing” after nine inmates and nine staff workers were infected.

The nine prisoners had been transferred to an isolation facility in Payatas, Quezon City from the city jail, Mr. Solda said. Prison workers who tested positive for the coronavirus disease 2019 were in quarantine, he added.

Mr. Solda said all jail personnel at the Quezon City Jail have been tested for the COVID-19 virus.

“We are doing an extensive contact tracing. We have a team assigned to it,” he told a news briefing.

Gabriel Chaklag, spokesman for the Bureau of Corrections, said there were no confirmed COVID-19 cases at the national penitentiary but nine inmates were being monitored. Fourteen other prisoners at the Correctional Institute for Women were also under monitoring, he added.

Human Rights Watch urged the government to act fast and release some detainees.

“Finding that COVID-19 has infected 18 inmates and personnel at the Quezon City Jail shows why it’s so critical the government actively pursues early release of detainees charged with low-level, nonviolent offenses, as well as the sick and older inmates,” Phil Robertson, deputy Asia director of HRW, said in a statement.

“The government needs to act urgently to mitigate what could be a catastrophe inside the country’s overcrowded prisons before it’s too late,” he said.

More than 20 prisoners who claimed to be vulnerable to the virus earlier asked the Supreme Court to allow their release on bail on humanitarian grounds.

The Supreme Court on Friday ordered the government to comment on the lawsuit.

Several groups including the House of Representatives Makabayan bloc and Judicial Reform Initiative have also called on the court to order the release of the prisoners.

Meanwhile, the Department of Health reported 218 new infections on Friday, bringing the total to 5,878.

Twenty-five more patients died, raising the death toll to 387, it said in a bulletin. Fifty-two more patients have gotten well, bringing the total recoveries to 487, it added.

Health Undersecretary Maria Rosario S. Vergeire said 766 health workers — 339 of them doctors and 242 nurses — had tested positive for the virus. Twenty-two of them have died, she said.

She said recoveries have spiked because patients considered as probable COVID-19 cases were treated early while awaiting test results.

Ms. Vergeire also said the country now had 17 testing centers after the Chinese General Hospital was certified.

She said testing centers processed 4,000 samples on Thursday, or half of the 8,000 target capacity by the end of the month.

Duterte threatens martial law-like enforcement of quarantine

PRESIDENT Rodrigo R. Duterte has threatened to enlist the police and military to enforce social distancing and curfew in place of village law enforcers if people continue to violate quarantine rules.

“I’m just asking for your discipline,” Mr. Duterte said in an address on Thursday night. “Otherwise, the military and police will take over,” he said, adding that “it will be like martial law.”

Cabinet Secretary Karlo Alexei B. Nograles on Friday said the President was just trying to emphasize he would do everything to impose order.

He added that under the Constitution, martial rule may only be declared if there is invasion or rebellion.

In his speech, Mr. Duterte also ordered the Department of Interior and Local Government (DILG) to investigate local governments that continue to tolerate cockfights and drinking.

“Do not expect any help from me,” he told local governments.

Mr. Duterte also asked crematoriums not to raise their fees amid the health crisis.

He also ordered the Department of Health (DOH) to investigate nine hospitals accused of refusing patients.

Cagayan de Oro Rep. Rufus B. Rodriguez in a statement said the National Government should pay for the burial and cremation of coronavirus patients who died.

“We should discourage relatives from directly participating in these arrangements for their own protection and safety, as they would be exposed to the virus,” he said.

Mr. Rodriguez said people should follow the Muslim tradition of burying their dead within 24 hours to prevent the virus from spreading.

Mr. Duterte locked down Luzon island on March 17 for a month, suspending work, classes and public transportation to contain the pandemic. He later extended the so-called enhanced community quarantine by two more weeks until April 30.

Meanwhile, Albay Rep. Edcel C. Lagman said lifting the lockdown could lead to a resurgence in coronavirus disease 2019 cases.

“The government must heed the advice of world health authorities and scientists not to prematurely lift the lockdown and social distancing restrictions because a one-time or limited lockdown cannot effectively control the spread of viral transmission,” he said in a statement.

Also on Friday, Camarines Sur Rep. Luis Raymund F. Villafuerte said the province had bought 20,000 rapid test kits for COVID-19 from Abbott Laboratories that were due to arrive this week.

These would allow the province to test both frontline healthcare workers and suspected cases, the congressman said in a statement.

Mr. Villafuerte said Camarines Sur had bought the kits using the P6-billion fund from the National Government for 81 local units.

Abbott has developed its own ‘serology test” to detect antibodies in patients who have been exposed to the new coronavirus, he said. — Genshen L. Espedido and Charmaine A. Tadalan

200 Filipino seamen from Germany arrive

ABOUT 200 Filipino sailors from Germany came home on Friday amid a novel coronavirus pandemic that has sickened 2.2 million and killed more than 147,000 people worldwide, the Department of Foreign Affairs (DFA) said.

In a statement, the agency said 66 crewmen of MV Amera, 130 from Albatros, three from River and a crew member of MV Amadea had been repatriated.

Their return was facilitated by the Philippine Embassy in Berlin and local manning agencies Five Star Marine Service Corp. and BSM Crew Service Centre Philippines, Inc., DFA said.

The Filipinos were subjected to medical check-ups supervised by the Bureau of Quarantine, and will undergo the mandatory 14-day quarantine.

The COVID-19 virus has sickened more than 138,000 people and killed more than 4,000 people in Germany, according to the Worldometers website, citing various sources including data from the World Health Organization.

The Philippines earlier said it would allow foreign cruise ships carrying Filipino crewmen to dock at ports in Manila and be used as quarantine sites. — Charmaine A. Tadalan

Gov’t says P71B in cash aid released

THE Department of Social Welfare and Development (DSWD) has released almost 90% or P71.2 billion of the initial emergency cash aid for low-income households affected by the Luzon lockdown amid a novel coronavirus disease pandemic.

The agency reported providing P1.3 billion in additional subsidy to 236,331 low-income families that are ineligible for the government’s cash transfer program for the poorest of the poor, Cabinet Secretary Karlo Alexei B. Nograles said at a news briefing on Friday.

The amount was on top of cash aid given to 3.72 million poorest of the poor households, he said. — Charmaine A. Tadalan

Dominguez views gov’t property sales as ‘unlikely,’ warns against ‘fire sales’

FINANCE Secretary Carlos G. Dominguez III said the government does not need to sell property to cover the funding requirements for containing coronavirus disease 2019 (COVID-19), and called such sales unlikely.

Mr. Dominguez said Thursday night that the Philippines has sufficient financial resources, including borrowing capacity, to deal with the pandemic.

“The President has really done a very good job economically, we kept on growing and we are in a good position,” Mr. Dominguez told People’s Television Network (PTV-4).

“Of course the President (might have mentioned the) worst possible scenario that, maybe at some point, we may have to sell some assets but at this point, that’s not yet necessary and frankly I don’t think that will be necessary (to resort to a) fire sale. I dont believe that will ever happen,” he said.

Proposals have been put forward to sell military land as well as the Cultural Center of the Philippines and the Philippine International Convention Center (PICC), after President Rodrigo R. Duterte floated the idea of asset sales last week.

Mr. Duterte was discussing the limits to government resources if the pandemic is prolonged, adding that it could resort to property sales if state funds are depleted. He brought up asset sales again in his televised address on Thursday night.

Mr. Dominguez said when the pandemic hit the Philippines, its financial standing was solid due to increased revenue, prudent fiscal management, and a strong credit rating.

“(When) COVID emergency (started), we were in a very good financial position because of policies of President Duterte. One, we increased our revenues, he spent money very wisely and because of that, tumaas yung credit rating natin at yung (our credit rating increased as well as our) reputation natin as a good borrower is very high, the highest ever achieved by the Filipino people, we are now BBB+, and next step (is a rating of) A… so the President has really done a very good job economically,” he said.

Senators have expressed support for asset sales to add to the war chest for the COVID-19 response.

Senate Franklin M. Drilon has urged the economic team to undertake a “speedy” review of state assets that can be sold immediately. Mr. Drilon said the additional funds will also help mitigate the rising budget deficit, which is expected to hit 5.3% of GDP from 3.5% in 2019 and the pre-pandemic target ceiling of 3.2%.

“Better utilization of these state assets is long overdue as a national policy. The government does not have to look far to raise additional revenues. There are ‘low-hanging fruits’ the government can immediately tap to provide the much-needed resources for our country to survive this pandemic,” he said.

Senator Panfilo M. Lacson concurred, saying that the government can sell military property provided that these sales do not compromise the security of military bases.

The government is looking to fund its programs and emergency response to COVID-19 from revenue, realigned budgets, tapping departments’ savings, state firm dividends, collecting savings of government agencies from cancelled events, among others.

To help plug any funding gaps, the Department of Finance (DoF) is looking to tap multilateral lenders for at least $5.6 billion worth of financing, with $3.858 billion in proposed funding from the Asian Development Bank and $1.8 billion from the World Bank.

It is also looking to tap the Asian Infrastructure Investment Bank (AIIB) and commercial markets for additional funding. — Beatrice M. Laforga

Job losses seen receding after lockdown ends if ECQ succeeds in containing COVID-19

JOBS lost due to the economic fallout of the coronavirus disease 2019 (COVID-19) outbreak are approaching the projected peak of 1.8 million, but could recover after the lockdown is lifted and businesses resume operations, according to the recently-resigned Socioeconomic Planning Secretary Ernesto M. Pernia.

“I’m hoping that the worst case still is 1.8 million… assuming that the quarantine is effective, then there’ll be improvements in terms of opening industries and work opportunities,” Mr. Pernia said by phone Wednesday, two days before he resigned.

“We may already have reached the peak because this is already a month after the lockdown (started), this is already two-thirds of the lockdown,” Mr. Pernia said.

The National Economic and Development Authority (NEDA) has estimated that the fallout from COVID-19 and the resulting lockdown could displace between 116,000 and 1.8 million workers.

Mr. Pernia said the job displacement trend will only start to fall if the enhanced community quarantine is effective in containing the spread of the disease.

“There should be less (job displacement by the end of the year) assuming that the COVID-19 will soften or begin its downturn, even after April 30,” he said.

Mr. Pernia said more jobs will be available once the partial relaxation of lockdown takes place as more companies resume operations.

“There will be more jobs by then, assuming that the extension of the quarantine will be effective in bringing down the COVID-19 situation,” he said.

He said with many overseas Filipino workers (OFWs) losing their jobs, remittances could decline by $6-8 billion this year, after hitting a record $30 billion in 2019.

“Depending on the progress of this COVID-19, if it’s going be on the decline then jobs will be reopening in the Middle East again and so they can go back. In the case of technical workers, maybe we can use (them) for construction in the flagship infrastructure (program) here,” he said.

The Department of Labor and Employment (DoLE) has said that nearly 1.5 million Filipinos lost their jobs due to the temporary business closures.

Mr. Pernia had taken the position that extending the enhanced community quarantine, which is set to be lifted on April 30, will be “difficult” as many businesses are calling for at least a partial reopening.

Mr. Pernia also backed the gradual lifting of the lockdown, which would allow partial operations of malls and public transporation, with safety measures in place.

Finance Undersecretary Karl Kendrick T. Chua was named acting secretary of NEDA following Mr. Pernia’s resignation on Friday.

Mr. Pernia citied personal reasons and “differences in development philosophy” with some Cabinet members, without elaborating. — Beatrice M. Laforga

Approved ‘survival’ loans for farm sector top P246-M

THE Department of Agriculture (DA) said it has approved P246.3 million worth of loans under its expanded Survival and Recovery Assistance Program (SURE Aid) to help the farming sector recover from the effects of the pandemic and the resulting quarantine

SURE Aid, tapped in response to the coronavirus disease 2019 (COVID-19) mitigation effort, has helped support 7,349 small, marginal farmers and fishermen across 11 regions, according to Agricultural Credit Policy Council (ACPC) Director Jocelyn Alma R. Badiola said.

The small farmers and fishermen received a total of P183.8 million worth of approved loans.

The remaining P62.5 million was lent to nine micro and small enterprises (MSEs) engaged in agriculture and fisheries production.

The SURE Aid COVID-19 loan program is funded by the so-called Plant, Plant, Plant program, which has a budget of P31 billion, and is designed to ensure broader food security.

In a statement Friday, Agriculture Secretary William D. Dar said agri-fishery MSEs and small farmers and fishermen recover from their losses, adding that they play a crucial role in ensuring the availability of food in urban centers.

“We are allotting a total of P2.5 billion for this new ACPC credit program aimed at helping MSEs and small, marginal farmers and fishers adversely affected by the enhanced community quarantine due to the COVID-19 pandemic,” Mr. Dar said.

Eligible farmers and fishermen may borrow up to P25,000 with zero interest, no collateral, and payable in 10 years.

Eligible MSEs may borrow up to P10 million with zero interest, payable over five years. — Revin Mikhael D. Ochave

Legislator proposes special bond issue to support COVID-19 response

A SENIOR legislator said the effort to contain coronavirus disease 2019 (COVID-19) could be funded by a special bond issue, which he proposed to call “COVID-19 Bayanihan Recovery Bonds.”

Deputy Speaker and 1-Pacman Party-list Rep. Michael L. Romero said in a statement Friday that the bond issue could supplement internal government funds and new loans from multilateral institutions.

“I also suggest that the Department of Finance (DoF) tap the global capital markets for funds through the issuance of COVID-19 Bayanihan Recovery Bonds. Our country’s strong economic fundamentals make us creditworthy for this bold move.”

“For 2020, I believe our country needs roughly P1 trillion for COVID-19 measures (to ensure) minimal impact on the 2020 budget. This jibes with the P1.17 trillion estimates of the Finance Department,” he added.

Mr. Romero said about half of the P1 trillion could come from proceeds of Bayanihan bonds.

“Some of that P1 trillion can be funded with P500 billion in COVID-19 Bayanihan Bonds. Some could be financed with another P500 billion in multilateral loans, bilateral loans and grants, debt-for-equity swaps, capital infusion in big-ticket projects, a variety of technical grants, and supplemental financing for local government units, among others,” he said.

Mr. Romero said that about 10% of the Bayanihan bonds could be denominated in pesos to attract Filipino investors, with P25 billion can come in the form of retail bonds.

Mr. Romero also urged the Land Bank of the Philippines (LANDBANK) to waive handling fees as it distributes billions in financial aid to the poor under the Bayanihan to Heal As One Law or Republic Act 11469.

The Department of Social Welfare and Development (DSWD) has started distributing the assistance amounting to at least P100 billion this month and another P100 billion next month.

Mr. Romero said LANDBANK is handling the bulk of the P200 billion as well as the P101 billion allocated in this year’s national budget for the four million beneficiary-households of the Pantawid Pamilyang Pilipino Program or 4Ps.

He said the P162 billion DSWD budget includes P509 million in “bank service fees” that will go mostly to LANDBANK.

“Based on this amount of bank service fees, we can safely assume that the cost of downloading the P100 billion in financial assistance under the Bayanihan law for this month is in the neighborhood of P500 million,” he added.

Romero said if Land Bank could waive its service charge only for the Bayanihan cash grants, it would mean that more poor families could be given financial aid.

About 18 million low-income families are expected to receive P5,000 to P8,000 each under the Bayanihan to Heal As One Act. — Genshen L. Espedido

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