Facebook Instagram Linkedin X Youtube
Home Blog Page 9667

Sports, conference venues converted into COVID-19 facilities

Health facilities at the Rizal Memorial Sports Complex (RMSC) in Manila and Philippine International Convention Center (PICC) in Pasay are prepared to take in over a hundred patients infected with the coronavirus disease 2019 (COVID-19).

The government chose the two sites, along with the World Trade Center in Pasay, to be areas where treatment facilities will be mounted to treat patients with COVID-19.  

In a statement on Wednesday, Razon-led Bloomberry Resorts Corp. said it finished the first phase of the construction of the treatment facility in the sports complex.

The health center has 116 beds, two nurses’ stations, a drywall partition wall, as well as temporary furniture. The Ninoy Aquino Stadium at the RMSC was also converted into a common area. 

The construction of the emergency facility, which was funded by Bloomberry Cultural Foundation, Inc., started on April 1 by Prime Metro BMD Corp., a construction firm under the Razon group of companies. 

The second phase of construction, which is seen to provide an additional 108 beds, will also start upon the green light from the Inter-Agency Task Force for the Management of Emerging Infectious Diseases and the Department of Health. It is expected to be finished by the end of next week. 

Separately, Yuchengco-led construction firm EEI Corp. also announced that it completed the health facilities at both the PICC and RMSC. 

Further, Ayala Corp., together with the Investment & Capital Corp. of the Philippines (ICCP) Group, said it is almost through with the conversion of an area at the World Trade Center into a quarantine facility for COVID-19 patients. 

“We are also completing the conversion of some 8,000 sqm of the World Trade Center in Pasay into a 500-bed quarantine facility for COVID positive patients with the ICCP group. This will be turned over to the AFP [Armed Forces of the Philippines], as the medical operator next week, “ Ayala Corp. Chairman and Chief Executive Officer Jaime Augusto Zobel de Ayala said. 

Meanwhile, Maynilad Water Services, Inc. is set to supply water for the three converted sites, shouldering as well the water requirements of these facilities for the entire period of its operations. 

Manila Electric Co. has also pledged to power the treatment centers and to subsidize their electricity needs. 

The Sy family’s SM Foundation, Inc. donated COVID-19 test kits to the Research Institute of Tropical Medicine in Mandaluyong, on top of its P170-million assistance in the fight against the spread of the disease pandemic. 

Makati Development Corp., the construction arm of Ayala’s unit Ayala Land, Inc., completed as well the retrofitting of an area within the Philippine Red Cross headquarters to be used as a COVID-19 testing facility. 

Recently, the real estate unit launched a campaign to generate funds for hospital supplies and groceries for the benefit of The Philippine General Hospital, The Philippine Lung Center, Jose N. Rodriguez Memorial Hospital, and Caritas Manila.

MORE COVID-19 RELIEF EFFORTS

San Miguel Corp., in part of its COVID-19 assistance program, is set to purchase 10,000 personal protective equipment (PPE) from a local garment manufacturer for medical workers in the frontline of the fight to contain the coronavirus disease.

“We are asking more local manufacturers to come forward. We are in a race for time to save more lives and protect our medical workers who care for them. As soon as the 10,000 sets of PPEs are ready, we will immediately dispatch these to hospitals in dire need,” SMC President and Chief Executive Officer Ramon S. Ang appealed.

Meanwhile, the Aboitiz Group through its social responsibility arm Aboitiz Foundation committed a month of food provisions for around 200 patients and medical staff in the quarantine facility at the RMSC. 

“The Aboitiz Group continues to ensure that our initial support to our brave COVID-19 frontliners and patients will be sustained in the days to come. We hope that by addressing the immediate nutritional needs of the healthcare staff and patients at the Rizal Memorial Quarantine Facility, we are able to strengthen the ‘warriors’ fighting the battle to defeat COVID-19 in our country,” Aboitiz Group President and Chief Executive Officer Sabin M. Aboitiz said.

Lately, the group’s power unit Aboitiz Power Corp. welcomed the Department of Energy’s (DoE) order to use funds under the Energy Regulations 1-94 to help local government units (LGU) in their fight against the COVID-19 pandemic. 

AboitizPower is downloading P146 million to around 130 of its host LGUs across the country, while P338 million more funds from its various generation units are currently being remitted by the DoE to the host beneficiaries.

“This is our contribution to the government’s efforts to ensure that all LGUs have enough resources to help contain, mitigate, and eventually eliminate the spread of COVID-19 in their areas,” AboitizPower President and Chief Executive Officer Emmanuel V. Rubio said in a separate statement.

Moreover, Mega Global Corp., the country’s largest sardine fishing and canning operator, earmarked P50 million in aid to communities and employees affected by the COVID-19 crisis.

The canned goods operator via Mega Tiu Lim Foundation and in partnership with other food firms opened Mega Malasakit Kitchen, which rolls out 500 meals a day to support “unseen frontliners,” such as those manning checkpoints and working at supermarkets and barangay health offices. — Adam J. Ang

Taiwan’s New Kinpo to make ventilators, face masks locally

Taiwan’s New Kinpo Group will produce 1,000 ventilators and 2.5 million face masks in the Philippines to support the country’s efforts to contain the coronavirus disease 2019 (COVID-19).

The Board of Investments (BoI) in a statement on Wednesday said the group’s local subsidiary Cal-Comp Technology Philippines, Inc. will produce medical-grade face masks and ventilators exclusively for the Philippine market.

The company will be repurposing its Batangas and Laguna facilities to produce these supplies.

“This is necessary because the supply of raw materials from the usual suppliers from abroad have become very tight as a result of the same issues brought about by COVID-19,” Trade Secretary and BoI Chairman Ramon M. Lopez said.

A “big portion” of the medical supplies will be donated to Philippine hospitals and agencies dealing with the pandemic, the statement said.

“The rest of the masks and ventilators will be available to the Philippine market at very reasonable price points, considering that they will be produced locally,” it added.

The first batch of ventilators will be rolled out by the end of May.

The statement also said that the BoI and the Trade department will help ensure the delivery of raw materials for production.

Importation of equipment, supplies, and raw materials needed to manufacture medical products to deal with the COVID-19 outbreak are exempt from duties, taxes, and fees.

The group is also considering the production of face shields, as the group’s subsidiary XYZ Printing manufactures 3D printers that can produce face shield frames.

Cal-Comp Philippines is an electronics manufacturer employing 7,000 employees in economic zones, according to its website.

“I am very pleased to learn of New Kinpo’s very timely decision to shift their high-tech manufacturing capabilities in helping the Philippine health sector effectively address the challenges in combating the COVID-19 threat,” Mr. Lopez said.

“On behalf of the Philippine government and the entire country, I would like to extend our sincere gratitude and appreciation to [New Kinpo Chief Executive Officer] Simon [Shen] and the New Kinpo Group for this much needed support and lifeline for our medical front-liners,” he added. — Jenina P. Ibañez

Smart, Globe 4G availability scores improve

PLDT wireless subsidiary Smart Communications, Inc. and Globe Telecom, Inc. have further improved their 4G availability scores, according to a recent report by wireless coverage mapping company Opensignal.

In its latest Mobile Network Experience Report, the United Kingdom-based Opensignal said Smart’s 4G availability score, or the time users spend being connected to the 4G network, reached 81.8%.

Opensignal said it had analyzed data gathered from Nov. 1, 2019 to Jan. 29, 2020.

“Globe also increased its 4G availability score to 77.8% but a gap of 4 points now exists between the two operators,” it added.

In its previous analysis covering September to November 2019 data, Opensignal said Globe was the only network in the country that passed the 75% 4G availability mark nationwide with a score of 75.3%. Smart’s score was 74.3%.

Opensignal also included an analysis of the gaming experience in the country in its latest report.

Smart scored 36.9 (very poor) on a scale of 0-100, according to Opensignal.

Globe’s lower score of 35.9 likewise fell into the “very poor” category.

“This means the majority of users found the gaming experience to be in need of improvement with too noticeable delays within games and where players often didn’t feel like they had full control over the gameplay. In poor network conditions, mobile multiplayer games’ AI often steps in automatically to reduce some of the apparent negative impacts for users,” Opensignal explained.

In terms of video experience, Smart’s score increased 15.6%, from the previously reported score, to 55 on a scale of 0-100.

Smart was in the “fair” category while Globe’s score of 39.8, although an improvement of 30.6% from the previous report, was in the “poor” category.

In terms of voice apps experience, Smart scored 64.8 on a scale of 0-100, slightly higher than Globe’s 64. Both of them fell into the “very poor” category.

“There’s a lot of opportunity for the operators to reduce call quality impairments such as distortion, clicking sounds and silence,” Opensignal said.

Smart likewise improved in terms of download experience, with its users experiencing an overall download speed of 10.6 Mbps, 12.8% higher than the previously reported 9.4 Mbps speed.

Globe users reported download speeds of 7.6 Mbps from the previously reported 6.5 Mbps.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Tips on using and storing your home disinfectants

White vinegar and baking soda are proven effective for ordinary cleaning, but they cannot kill the coronavirus.

In cleaning and disinfecting the house, one can use common household products such as alcohol disinfectant, sodium hypochlorite (bleach solution), and calcium hypochlorite (chlorine tablets or powder).

These are toxic chemicals, so family members should know how to use and store them properly. Here are some tips to do these from the Department of Health:

1. Always wear gloves when handling chemical disinfectants because it can cause burns. Make sure to wash hands properly after touching chemicals.

2. Read the instructions and warnings on the product label. Make sure the chemical does not get into the eyes, mouth and on skin.

3. Store bleach or chlorine disinfectant solutions in a well-ventilated area. These chemicals can release harmful chlorine gas.

4. Don’t drink the disinfectant. It is poisonous.

5. Buy only 70-percent solution isopropyl or ethyl alcohol approved by the Food and Drug Administration to ensure product safety and quality.

6. Always put a label on prepared disinfectant solutions. Do not use containers that people may mistake as water or drinking bottles.

7. Keep the disinfectant solutions away from children’s reach.

8. Pure bleach solutions are only used for cleaning the toilet. Do not use this to disinfect eating utensils and kitchenware.

9. Do not mix different kinds of chemical disinfectants as this can trigger chemical reactions and release harmful gases, such as chlorine gas (bleach + vinegar), chloramine (bleach + ammonia), and chloroform (bleach + rubbing alcohol).

10. If a chemical disinfectant is accidentally swallowed, consult a doctor or call the nearest Poison Control Center.

PAL, Cebu Pacific, 2Go cancel trips until April 30

Flag carrier Philippine Airlines (PAL), budget airline Cebu Pacific, and shipping and logistics provider 2Go Group Inc. (2Go) have canceled their passenger trips up to April 30.

Their announcements came after the government declared on Tuesday the extension of the lockdown on Luzon island until the end of April, as the country has yet to contain the spread of the coronavirus disease 2019 (COVID-19). 

As of Tuesday, the Department of Health reported a total number of COVID-19 infections at 3,764, with 177 deaths and 84 recoveries.

PAL, operated by PAL Holdings, Inc., said in an advisory late Tuesday: “We confirm that all Philippine Airlines domestic and international flights are canceled up to April 30, 2020, in line with the extension of the Luzon Enhanced Community Quarantine until April 30.”

The flag carrier said it intends to resume its flights by May 1 “if allowed by government authorities, global public health conditions and the travel environment.”

Cebu Pacific, operated by Cebu Air, Inc., said in a statement on Wednesday that its flights will remain suspended from April 15 to April 30.

2Go Group also canceled all its voyages from March 17 to April 30. — Arjay L. Balinbin

Global Ferronickel suspends Surigao del Norte mining

The operating arm of Global Ferronickel Holdings, Inc. (FNI) has temporarily suspended its mining operations in Surigao del Norte, amid the coronavirus disease 2019 (COVID-19) pandemic.

In a disclosure on Wednesday, Platinum Group Metals Corp. (PGMC) has halted its operations located at Barangay Cagdianao in the Municipality of Claver.

This is in accordance with the requests of Surigao del Norte governor Francisco T. Matugas and Claver Mayor Georgia D. Gokiangkee to cease mining operations.

The temporary suspension is in compliance with the policy directions being implemented by the local government units.

“As a good corporate citizen, we comply with all rules and regulations, and as a good neighbor, we listen to the concerns of the local community,” FNI President Dante R. Bravo said.

PGMC will continue to observe quarantine and sanitation procedures, as the company will maintain a skeleton staff for its site maintenance and relief operations.

The mining company initially earmarked P10 million for relief assistance to the impact and non-impact communities from the 14 barangays in Claver.

“We also stand together with the Surigaonon people and the whole country in the fight against this pandemic,” Mr. Bravo said.

PGMC has since distributed relief goods, disinfectants, face masks, meals, and other essential items to 10,995 people. — Revin Mikhael D. Ochave

DoTr partners with Cleanfuel, Total for medical workers’ free ride

The Transportation department has partnered with Cleanfuel and Total Philippines Corp. to carry out the government’s fuel subsidy program for bus companies involved in the free bus service program for medical workers battling the coronavirus disease 2019 (COVID-19) pandemic.

In a statement, the Department of Transportation (DoTr) said  Cleanfuel (Shaw Autogas, Inc.) will provide 40 liters of fuel for 20 bus units starting April 8 until April 30, 2020.

“These will be given at the Cleanfuel Kamias and Biñan branches,” the DoTr said.

“Total will provide free fuel to 30 participating bus units (P1,000/unit), or vehicles of medical frontliners (P300/unit), upon station opening,” it added.

It said Total started providing free fuel on April 3, and will continue until April 17, 2020.

“Ito ay malaking tulong para makasiguro tayong tuluy-tuloy ang ating serbisyo upang makatulong sa ating mga health workers. Malaking bagay ho ito sa mga modernong bayani nating nagsasakripisyo para sa ating mga kababayan. Sa Total Philippines at Cleanfuel, taos-puso po ang aming pasasalamat,” DoTr Secretary Arthur P. Tugade said.

(This is a big help to ensure the continuous service to our health workers, our modern heroes. I sincerely thank Total Philippines and Cleanfuel.)

DoTr has also partnered with Phoenix Petroleum Philippines to implement the fuel subsidy program. — Arjay L. Balinbin

ATI’s cruise terminal to be used as quarantine site

Listed port operator Asian Terminals, Inc. (ATI) said its international cruise terminal at the Manila South Harbor is going to be used as a temporary quarantine area to aid the government in its fight against the coronavirus disease 2019 (COVID-19) pandemic.

In a statement on Wednesday, ATI said it was making available its Passenger Terminal Building (PTB) and adjacent berthing facilities as added temporary quarantine areas in response to government’s call for solidarity, particularly in mobilizing interim healthcare facilities needed amid the national health crisis.

“The PTB with 2,000-seating capacity will be converted into a temporary holding facility while Pier 15’s two southside berths will accommodate the floating hospital vessels being deployed by the Department of Transportation (DoTr),” it added.

It said government agencies, including the DoTr and the Department of Public Works and Highways (DPWH), are leading the conversion of the terminal.

“ATI units originally located at the cruise terminal, such as the General Stevedoring, Billing and Collections and Medical Office, will be transferred to the South Harbor Operations Center (SHOC) to ensure seamless operations,” the company also said.

The DoTr announced recently that shipping and logistics provider 2Go Group, Inc. would convert two of its vessels into “quarantine ships” for returning seafarers and other overseas Filipino workers (OFWs).

The department said more shipping companies have expressed their intention to join the initiative.

President Rodrigo R. Duterte signed into law on March 24 Republic Act No. 11469, or the Bayanihan to Heal as One Act, authorizing him to exercise powers “necessary and proper” to fight the spread of the COVID-19.

The law states that “when the public interest so requires,” the President can direct the operation of privately owned hospitals and medical and health facilities including passenger vessels and other establishments to house health workers; serve as quarantine areas or centers; and public transportation to ferry health, emergency, and frontline personnel and other persons; among others.

On Tuesday, the government announced the extension of the lockdown on Luzon island until the end of April, as the country has yet to contain the spread of the COVID-19. — Arjay L. Balinbin

Trade gap narrows in February on weaker imports

THE country’s trade-in-goods deficit narrowed in February as imports declined while exports grew, the Philippine Statistics Authority (PSA) reported on Wednesday.

Import payments declined 11.6% year on year to $7.057 billion in February, accelerating from the 2.8% contraction in January and a turnaround from the 2.9% growth in February 2019.

The latest reading marked the 10th consecutive month of decline for import goods since May 2019, according to revised PSA estimates.

To date, the merchandise import bill contracted by 6.8% to $16.350 billion from $17.550 billion in 2019’s comparable two months. This remained below the eight percent target set by the Development Budget Coordination Committee (DBCC) for 2020.

Meanwhile, the value of merchandise exports grew 2.8% annually to $5.401 billion in February from $5.252 billion a year ago. This was slower than the 9.4% growth in January but faster than the marginal 0.5% growth last year.

Export receipts were up 6.1% to $11.189 billion from $10.545 billion on a cumulative basis against the DBCC’s four percent target set for the year.

The trade balance figured in a deficit of $1.656 billion in February compared to a $2.733-billion trade gap in the same month in 2019. Cumulatively, the trade deficit reached $5.160 billion, smaller than the $7.006-billion gap in January-February 2019.

In an e-mail to reporters, ING Bank N.V.-Manila Branch Senior Economist Nicholas Antonio T. Mapa said the latest trade report “highlights the continued fade in investment activity” in February that is “likely linked” to concerns about the then initial spread of the coronavirus disease 2019 (COVID-19).

Capital goods, which made up around 32.7% of the country’s total imported goods, registered the biggest year-on-year decline among commodity groups at 16.2% to $2.306 billion.

Imports of mineral fuels, lubricant and related materials fell by 12% to $834.706 million, followed by those of consumer goods (-9.5% to $1.194 billion) and raw materials and intermediate goods (-8.7% to $2.660 billion).

Meanwhile, exports of manufactured goods — which accounted for 81.4% of the total export sales in February — increased by 1.3% to $4.395 billion.

Electronic products, which made up around 54.2% of total merchandise exports in February, grew by 3.4% year on year to $2.929 billion. Semiconductors, which accounted for 74.5% of electronics, rose seven percent to $2.182 billion.

Exports of agro-based products jumped 29.2% year on year to $429.014 million in February. Likewise, overseas sales of mineral and petroleum products were up by 5.3% (to $418.026 million) and 133.5% (to $38.123 million), respectively.

On the other hand, exports of forest products declined by 13.2% to $24.980 million.

“Exports managed to gain mainly due to base effects, driven mainly by the powerhouse electronics subsector which accounts for the bulk of our export portfolio,” ING’s Mr. Mapa said.

PROSPECTS FOR TRADE

Economists expect the country’s exports and imports to drag in the near term amid the supply chain disruptions and sluggish external demand caused by COVID-19, as well as the government’s decision to extend the lockdown on Luzon island until April 30.

“In the near term, we can expect a reversal in export trends (demand for electronics will likely fall), but a continued contraction for imports as investment activity remains dormant (weaker capital and raw material imports), crude oil prices tank and consumer imports weaken further on depressed demand outside basic goods,” Mr. Mapa said.

The economist added that the enhanced community quarantine implemented in Luzon for another two weeks “will likely keep the trade deficit in the $2-billion range” on account of supply chain bottlenecks that kept demand for exports and imports constrained, as well as the global economy “headed for a likely recession.”

“In the near term, the ‘improving’ trade balance should be supportive to the peso but it is yet another ‘symptom’ (after faster inflation yesterday) pointing to economic malaise down the line. We’re in the incubation phase with the impending economic challenge set to hit us in the coming months,” Mr. Mapa said.

For University of Asia and the Pacific economist and former Tariff commissioner George N. Manzano, the trade situation “would definitely worsen” once the Luzon quarantine is taken into account.

“There would be an impact in the ports in which big chunks of manufacturing come from Luzon. The full extent and impact of the lockdown in trade will be manifested in March and subsequent months,” he said in a phone interview.

In a statement, the National Economic and Development Authority (NEDA) called for the government to “intensify” trade sector reforms.

“The public health emergency we are experiencing emphasizes the need to fast-track reforms to facilitate trade by reducing transaction costs. We must be creative in finding ways to ease the movement of goods and services while we continue to implement measures to combat COVID-19,” Socioeconomic Planning Secretary Ernesto M. Pernia was quoted in the NEDA statement as saying.

“We must aggressively pursue and prioritize the digitization of import and export documents, with the institutionalization of the TradeNet system as well as the utilization of cashless payments for all government services,” he said.

Aside from allowing the payment extension of rent, bills, and utilities, Mr. Pernia said the government can also help firms through a “temporary reprieve of demurrage and customs fees or waving of navigational charges” for the heavily hit airline industry.

“The country’s experience in responding to the COVID-19 pandemic has brought home the crucial importance of synergy of efforts of the government, private sector and citizens. Such cooperation in making limited resources work should be part of the new normal that will emerge after this pandemic,” Mr. Pernia said. — JEH

PHL’s virus response hits over P1 trillion so far

By Beatrice M. Laforga, Reporter

THE Philippine government has set aside $23 billion (P1.165 trillion) so far for its battle against the coronavirus disease 2019 (COVID-19) pandemic, but Finance Secretary Carlos G. Dominguez III said they have “a lot of headroom” to spend more.

On Wednesday, the Finance chief said the economy will likely post flat growth or even shrink by as much as 0.8% this year, as economic activities in Luzon remain at a standstill due to the Luzon-wide enhanced community quarantine that will last until April 30.

He said $6 billion (P304 billion) has already been allotted to assist the “most vulnerable” sectors, while the bulk of the funds, $16.4 billion (P830.272 billion), will go to programs that will “support the economy.”

“To support the most vulnerable in our communities… We have allocated a total of $6 billion for that. We are then also allocating $650 million (P32.905 billion) to the frontliners and [to] supporting the battle against the virus. And finally, together with our monetary authorities, we have allocated $16.4 billion for support of the economy, so the total value is about $23 billion so far, or between five and six percent of the GDP,” he told CNBC.

To fund this, Mr. Dominguez said the government is negotiating $5.7 billion worth of loans from multilateral lenders including the World Bank, the Asian Development Bank and the Asian Infrastructure Investment Bank.

The Finance chief said the government might see its debt stock jump to at least 46% of GDP amid higher borrowings, from its record-low level of 41.5% in 2019.

“Our debt to GDP is only 41%. This is down from over, above 54% 10 years ago. So we have a lot of headroom. Right now, we probably will increase this debt-to-GDP ratio to slightly over 46% in view of this crisis,” he explained.

Under Republic Act No. 11469, or the Bayanihan to Heal as One Act, the President can realign budgetary allocations into COVID-19 efforts.

At least P100 billion in dividends from government-owned and -controlled corporations (GOCCs) will also be used, although Mr. Dominguez said the government can also tap commercial markets to plug the funding gap.

“Our original funding was really for two months. While we were not sure how long the COVID will last, we think the estimate would be until around the end of May. So we are ready until the end of May,” he said.

While there are no immediate plans to raise taxes, Mr. Dominguez said the government may consider new taxes “in a year or two.”

Meanwhile, the government may also seek the approval of Congress for a bigger budget this year, which is set at P4.1 trillion, as well as for 2021, which is initially programmed at P4.586 trillion.

“We will be putting together a comprehensive package, and it is likely that we will go to our Congress to seek a higher budget for the rest of the 2020 if needed, and most likely for 2021,” he said.

Currently, the economic team is assessing the impact of the lockdown and health crisis which will help them craft a “bounce back plan” for the economy. Mr. Dominguez said this will help them determine the aid they can provide to different sectors.

ZERO GROWTH

“We are projecting a zero to possibly 0.8% negative growth this year. Definitely businesses are impacted, especially businesses in the tourism sector, as well as the retail sector,” the Finance chief said.

The estimated 0.8% contraction in gross domestic product (GDP) is lower than -0.6% to 4.3% growth range by the National Economic and Development Authority (NEDA), prior to the extension of one-month lockdown until April 30.

NEDA last month said the low-end of its growth estimate for this year, a contraction of 0.6%, is “still too high” if the ECQ is extended beyond one month “or if the spread of COVID-19 is unabated even after the ECQ.”

Mr. Dominguez said the government’s tax collections will certainly be lower than the programmed P2.576 trillion, but assured that “these are things that we can finance.”

“Our economy has been growing steadily for the last 10 years at an average of 6.3%. Our revenues to GDP is highest since 23 years, it’s at 16.9% now. Our inflation rate is 2.5% and our debt to GDP is only 41.6%. Now we have a lot of room to maneuver here,” he said.

“The policies of the President have left us with ample fiscal headroom. And we are now responding very quickly to this coronavirus.”

ASSISTANCE

Nearly P10 billion worth of cash assistance will be given out to poor families in Metro Manila covered by the social amelioration program (SAP) this month, the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) said.

IATF spokesperson and Cabinet Secretary Karlo Alexei B. Nograles said the Department of Social Welfare and Development (DSWD) National Capital Region has already facilitated the disbursement of checks to be released for the month of April.

The cities that have received the checks are:
– Quezon City, P3.02 billion;
– Caloocan, P1.72 billion;
– Manila, P1.48 billion;
– Pasig, P750.93 million;
– Taguig, P739.97 million;
– Parañaque, P621.39 million;
– Marikina P449.88 million;
– Muntinlupa, P430.68 million; and
– Mandaluyong, P368.37 million.

Around 18 million families affected by the COVID-19 crisis will receive cash subsidies ranging from P5,000 to P8,000 a month, for April and May.

PROPOSED STIMULUS

Meanwhile, a legislator is proposing a P1-trillion stimulus package for the government to continue its “social and labor amelioration assistance and to provide a lifeline for distressed businesses.”

“In a telephone conversion today (April 8) with Secretary Ernesto (M.) Pernia of the National Economic Development Authority (NEDA), we agreed that not only micro, small and medium enterprises (MSMEs) need assistance but also major corporations like airlines, shipping, land transport, hotels, export firms, and manufacturers, among others, need lifelines to recover and stay afloat,” Albay Rep. Edcel C. Lagman said in a statement Wednesday.

He added that the package will include assistance to vulnerable families, displaced workers and households belonging to the middle class.

Mr. Lagman noted that the funding for the P1-trillion stimulus can be sourced from the following: monetization by the Bangko Sentral ng Pilipinas (BSP) for budget support of an allowable portion of the country’s foreign reserves; issuance of bonds by the Bureau of the Treasury (BTr); extension and expansion of the “Tax Amnesty Act” or Republic Act 11213; grant of tax credit or special tax discounts for advance tax payments; and sale of government assets.

Other sources of funds also include the advances of dividends due to the national government from GOCCs; additional contributions from the Philippine Amusement and Gaming Corp. (PAGCOR) and the Philippine Charity Sweepstakes Office (PCSO); savings from the 2019 and 2020 General Appropriations Acts (GAAs); and reduction in personal services (PS). — with Genshen L. Espedido and GMC

Business sentiment slumps amid pandemic

BUSINESS confidence slumped in the first quarter, amid economic disruptions caused by the Taal Volcano eruption and the coronavirus disease 2019 (COVID-19) pandemic, a survey by the Bangko Sentral ng Pilipinas (BSP) showed.

The BSP’s business expectation survey (BES) showed the overall confidence index (CI) declined to 22.3% in January to March, from 40.2% in the fourth quarter of 2019.

The reading is the lowest since the 22% recorded in the fourth quarter of 2009 amid the global financial crisis.

However, the survey, which was conducted from Jan. 24 to Mar. 13 among 1,533 firms, does yet not take into account the impact of the enhanced community quarantine (ECQ) in Luzon which started on Mar. 17.

In a statement, the BSP said companies attributed the weaker business sentiment in the first quarter to the impact of the COVID-19 pandemic, African Swine Fever (ASF) outbreak and the Taal Volcano eruption.

Businesses were also concerned over the termination of the Visiting Forces Agreement with the United States, non-renewal of mining rights and travel bans due to the COVID-19 outbreak.

The companies surveyed also cited the drop in orders and lower volume of business activity and production, seasonal slack in demand after the holiday season, and low supply of raw materials and products.

“Across different types of trading firms (i.e., exporter, importer, dual-activity and domestic-oriented), business sentiment was less favorable for Q1 2020, except for exporters whose outlook was more optimistic,” the central bank said in a statement on Wednesday.

“In particular, their sentiment on the volume of business activity was less upbeat across sectors, except for construction on these periods,” it added.

Across sectors, business optimism was “less upbeat” for the first quarter, except construction firms that expected a boost in projects as part of the government’s “Build, Build, Build” program.

OUTLOOK

Meanwhile, business confidence for the second quarter appears to be more upbeat as CI rose to 42.3% from 40.3% in the previous quarter. This was attributed to expectations of higher sales, mainly in the community, finance, business, and trade sub-sectors; uptick in demand during the summer months and harvest season; expansion; and higher infrastructure spending.

Business outlook on the economy weakened for the next 12 months, as the CI dropped to 55.8% from 59.6 percent in the previous quarter.

“The less optimistic outlook of the respondents for the next 12 months was attributed to expectations of (a) unfavorable effects of the Taal eruption and virus outbreak, and (b) concerns on government policies (i.e., rice tariffication law, imposition of price caps on certain medicines, and possible imposition of safeguard duties on imported vehicles),” the central bank said.

The survey also showed the employment outlook index remained steady for the second quarter, but lower in the next 12 months, “which suggests that more firms indicated to continue hiring new employees for Q2.”

Companies’ expansion plans are also higher in the second quarter, but are expected to drop in the next 12 months.

“Sentiment on financial conditions, which was already in negative territory, slipped further to -12.2% for Q1 2020 from -5.4% in the previous quarter, the lowest reading since Q1 2010. This means that firms that expect tight financial conditions increased and continued to outnumber those that said otherwise during the quarter,” the BSP said.

The survey also showed companies expect the peso to appreciate, interest rates to fall, but inflation rate to quicken for the current and next quarter.

“Respondents predicted inflation to be at 2.9% for Q1 2020, 3% for Q2 2020, and 3.2% for the next 12 months (which was unchanged compared to the previous quarter’s survey results). Moreover, businesses anticipated that the peso-dollar rate will average at P50.9/US$1 for Q1 2020, P51.1/US$1 for Q2 2020 and P51.2/US$1 for the next 12 months,” the central bank said.

March saw headline inflation slow further to 2.5% from 2.6% in February and 3.3% a year ago, preliminary PSA data showed on Tuesday — LWTN

Gov’t won’t dip into infrastructure budget, says needed to drive economy

FUNDS intended for the infrastructure program will be kept largely intact during the current emergency, as such spending will be needed to drive growth after the pandemic crisis ends, Cabinet Secretary Karlo Alexei B. Nograles said.

In a briefing Wednesday, Mr. Nograles said that the government has no intention of redirecting funds earmarked for its flagship program, known as “Build, Build, Build” amid doubts that the initial stimulus packages will be sufficient for the duration of the coronavirus disease 2019 (COVID-19) emergency.

“Malaking bahagi ng pag-jumpstart ng ekonomiya ang “Build, Build, Build.” ‘Yun po ang makaka-rev up ng ekonomiya natin (“Build, Build, Build” will play a big part in jumpstarting the economy. That program will rev it up),” Mr. Nograles said.

President Rodrigo R. Duterte said in a speech Monday that he wants the Finance department to generate more funds as the P270 billion worth of budget realignments identified for the Bayanihan to Heal as One Law is not enough to assist Filipinos in need.

The Philippines is expected by economic managers and analysts to enter into a mild recession due to the pandemic after economic activity was disrupted during the enhanced community quarantine. The Luzon-wide lockdown has been extended until the end of April.

Under the Bayanihan to Heal as One Act, the government can realign items from the 2019 and 2020 national budgets so it can finance measures to contain COVID-19.

The “Build, Build, Build” budget in 2019 was P816.2 billion. In 2020, the main agencies implementing the program, the Department of Public Works and Highways (DPWH), and the Department of Transportation (DoTr), have been allocated P581.7 billion and P100.6 billion respectively.

However, DPWH Secretary Mark A. Villar said in an interview with ANC Tuesday that the department has reallocated a “small amount” — about P30 billion — from its “Build, Build, Build” program to help finance the government’s response to the crisis.

Mr. Villar also said last week that projects under the infrastructure program will be slightly delayed but targets for 2020 will still be met. — Gillian M. Cortez

1...9,6669,6679,668...14,238Page 9,667 of 14,238
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube