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US joins calls for Tokyo Games delay

TORONTO/TOKYO — US Olympic organizers joined calls for the Tokyo 2020 Summer Games to be postponed due to the coronavirus pandemic, while the International Olympic Committee, according to member Dick Pound, has decided to delay the event, likely for a year.

Major sporting nations Australia and Canada withdrew on Monday as organizers came under mounting pressure to postpone the event for the first time in its 124-year modern history.

The United States Olympic and Paralympic Committee (USOPC) said it had listened to feedback from athletes and was encouraged by a clearer path towards postponement.

“Our most important conclusion from this broad athlete response is that even if the current significant health concerns could be alleviated by late summer, the enormous disruptions to the training environment, doping controls and qualification process can’t be overcome in a satisfactory manner,” the USOPC said in a statement on Monday.

Pound told Reuters a one-year postponement looked like the best solution. This would mean the Games, scheduled for July 24–Aug. 9, are likely to be held in the summer of 2021.

“That’s my conclusion (there will be a postponement),” Mr. Pound said in a telephone interview, after Sunday’s IOC statement saying it was stepping up its “scenario planning” for the Tokyo 2020 Games — including a possible postponement.

“From reading IOC-speak in the communique, if you are going to cancel you simply cancel because there are no future plans,” added Mr. Pound.

“But if you are going to carry on with the original objective (to stage the Games) there is no reason to issue a statement because you have already done that over the past several weeks.”

Japan and the IOC have said calling off the Games entirely is not an option. But finding a new date could be complicated as the summer 2021 calendar is already crowded, while 2022 will see the soccer World Cup and the Beijing Winter Olympics.

Japan’s government is negotiating with the IOC to postpone the Games by a year at most, the Sankei newspaper reported on Tuesday, adding that a poll showed about 70% of the Japanese think it is appropriate to delay the Olympics.

Mr. Pound said a large number of stakeholders from the organizing committee, to athletes to broadcasters and sporting federations would all need to be consulted before a plan could be finalized but there were early signs of a willingness to accommodate a 2021 Summer Games.

World Athletics said on Monday they would be willing to move their 2021 world championships scheduled for Aug. 6–15 in Eugene, Oregon, to clear a path for a 2021 Olympics.

BALANCE TIPPING
An Olympics postponement would be a blow for host country Japan, which has pumped in more than $12 billion of investment, and huge sums are also at stake for sponsors and broadcasters.

But a groundswell of concern from athletes — already struggling to train as gyms, stadiums and swimming pools close around the world — appeared to be tipping the balance, along with the cancellation of other major sports events.

More than 350,000 people have been infected by the novel coronavirus worldwide and over 15,000 have died in a pandemic that the World Health Organization said was accelerating.

The Olympics have never before been delayed, though they were cancelled altogether in 1916, 1940 and 1944 during the two world wars, and major Cold War boycotts disrupted the Moscow and Los Angeles Games in 1980 and 1984, respectively.

“The moment the IOC indicates that it is thinking about other solutions, it has already decided to delay the Games,” said French Olympic Committee President Denis Masseglia.

Canada and Australia both bluntly said they would not participate if the Games were not put back to 2021 and Britain may have followed suit.

“We are in the midst of a global health crisis that is far more significant than sport,” Canada’s Olympic Committee and Paralympic Committee said in a statement.

A raft of other nations and sports bodies piled pressure on the IOC to make a quick decision.

THE TIDE TURNS
Japanese authorities seemed to be bowing to the inevitable, despite the losses and logistics headaches it would entail.

“We may have no option but to consider postponing,” Prime Minister Shinzo Abe, who was hoping for a boom in tourism and consumer spending, told parliament.

The organizing committee is already scaling back the torch relay to avoid crowds, national broadcaster NHK said.

Japanese sponsors, from Toyota Motor Corp. to Panasonic Corp., were watching nervously. But Tokyo stocks sensitive to the success of the Olympics surged on Monday, after sharp falls in prior weeks, thanks to expectations of a delay rather than a cancellation.

Mr. Pound told Reuters the IOC had tried to hold fire in order to be able to present the hosts, sports federations and sponsors with a clear alternative plan.

“Probably what turned the tide in the last couple of days is the curve on the COVID-19 virus. It is getting very, very steep now and this is clearly not something that is going to be under control by June or July and probably not by the end of the year.” — Reuters

UAAP stakeholders do share in lending support amid COVID-19

RECOGNIZING that in trying times like the ongoing threat of the coronavirus disease 2019 (COVID-19) every support counts, stakeholders of the University Athletic Association of the Philippines have moved to do their part and lend a hand to those in need.

The Adamson University softball team and De La Salle University tapped on to their resources and helped in their own way as the country weaves its way through the Enhanced Community Quarantine (ECQ) called by the government in light of the ongoing concerns over COVID-19.

The many-time UAAP champions Lady Falcons banded together at the weekend to help in packing goods that were distributed in various parts of Manila.

It was in line with the Vincentian priests’ Charity Over Virus Indifference and Despair (COVID) and Facemasks Cover Your Face Not Your Hearts program.

Stranded in their respective dormitories after the declaration last week of the ECQ, which was designed to help stop the spread of COVID-19, the Lady Falcons are using their time to make a difference.

“While this is just a small thing we are doing, still we believe this will go a long way in helping many families here in Metro Manila especially in times like this,” said Adamson head coach Ana Santiago, whose wards were gunning for a 10 straight softball crown this year until the league decided to suspend indefinitely the season.

“We are very happy to be part of this program. We will continue doing this to be of help and we pray that the country get through this tough time,” the Adamson coach added.

HELPING THE HOMELESS
Meanwhile, De La Salle University has opened its Razon Sports Complex to the homeless.

When the Arnold Janssen Kalinga Center (AJ Kalinga) needed a shelter for the homeless, DLSU, and the College of Saint Benilde, opened their doors and provided a haven for them in the midst of the enhanced community quarantine.

“The AJ Kalinga Center is serving the homeless regularly. Their main ministry is providing food and free showers for the homeless. But now that we are on quarantine, they are looking for shelters for them. They worked with several schools to give them a safe space during the community quarantine,” said La Salle’s Vice President for Lasallian Mission Fritzie De Vera.

The Razon Sports Complex, where the Green Archers train and a facility which has hosted several UAAP events, has steadily accepted people since early this week, providing them with their daily needs.

The school is asking for donations either in kind or in cash to sustain their push.

“We are requesting for donations in kind or in cash. For donations in kind, we would appreciate cooked meals for them. The center is also providing meals which they get from the cash donations. We provide three meals a day,” Mr. De Vera said.

They said many have come on board to help, including a couple of donors who provided mattresses and protective gear, Chooks-to-Go which provided 50 packs of chicken for them, and La Salle’s student government which provided vitamins which will last for 14 days, but more is still needed.

Among those needed are pillows, two industrial rice cookers, two percolators for coffee, packs of garbage bags, medicines for first aid, small bath towels, clothes for men, women, and children, toiletries, and alcohol.

Cash donations can be coursed through AJ Kalinga Foundation Inc. (Asia United Bank/Peso Savings Account No. 082-11-000496-2; PayPal info@ajkalingafoundation.org; and BPI (Congressional Road Branch/Savings Account No. 1959-3450-46).

As of this writing, the country has recorded 501 confirmed cases of COVID-19, with 33 deaths and 19 recoveries. — Michael Angelo S. Murillo

adidas connects runners with live virtual sessions

AMID the uncertain times the world is currently plunged in because of the coronavirus disease 2019 (COVID-19), adidas is moving on, finding creative ways to see its vision of changing lives by way of sports through.

The most recent of these thrusts are the live virtual sessions by the adidas Runners community in lieu of running sessions which are currently suspended to ensure the safety of its runners and the general public.

adidas Runners, which started as a running group in one city and is now an international community present in 53 cities all over the globe, including Manila, has put up a platform via Instagram to have their common fitness goal going.

To keep runners active, present, and connected during this time of COVID-19, adidas Runners captains and coaches from around the globe are leading daily live virtual sessions on the adidas Runners Instagram page.

The live virtual sessions are aligned with the group’s performance-focused pillars of movement, nutrition, mindset, and recovery.

In the virtual sessions, captains and coaches are holding strength training, HIIT, yoga, mobility, mindfulness, and nutrition sessions that encourage movement that powers the body and sparks the mind.

The sessions began on Monday, with adidas Runners Manila captain Jules Aquino leading the strength session. Other adidas Runners coaches were scheduled to lead sessions yesterday.

For more updates on the virtual live sessions, follow adidas Runners and adidas Philippines on Instagram. — Michael Angelo S. Murillo

Big decisions to make

Will the 2020 Summer Olympics in Japan push through on its original scheduled date or not? That is the question the global sporting community is waiting to be answered amid the ongoing and serious concern over the coronavirus disease 2019 (COVID-19) pandemic.

Set to happen from July 24 to Aug. 9 in Tokyo, the staging of the Games is in danger of being deferred to a later date as clamor for its postponement continues to grow with cases of the contagious disease rising in number by the day in different parts of the world.

Different sports organizations have asked the International Olympic Committee to have the quadrennial event pushed back by a year, or two, to allow the entire world to concentrate on the battle against COVID-19 and heal from the damage it has caused after.

The Olympic committees of Canada and Australia have made it known that they will not be sending athletes to the Games because of COVID-19 concerns and urged the IOC to postpone the event while sports groups from the United States, France, Slovenia, Norway and United Kingdom, among others, as well as individual athletes, past and present, are backing deferment.

The IOC, for its part, insists that as this point in time announcing a postponement four months away is still “premature” and that the scheduled staging of the Games is still a go.

It, however, made a partial U-turn on its stand early this week, saying that postponement is one of the scenarios it is now looking at.

The IOC said detailed discussions on how it would go about things moving forward would be done in the next four weeks with a firm decision on the fate of the Tokyo Games expected to be announced then.

As things stand with the pace of progress being made in the battle against COVID-19, I think it is highly likely that the IOC will eventually move for the postponement of the Tokyo Games.

And it is a decision that is going to be the right one to take, not only for the safety of athletes, officials, fans and other stakeholders but also to preserve the integrity of the Olympics.

Pullout by countries from the event has started and more should be expected to come in the next days.

Qualifying events for the Games are currently put on hold, opening the possibility of having many athletes qualify in different disciplines “by default.” And during the Olympics proper, even if there are enough athletes competing they may not be able to compete at a high level that they want to with training and preparation in the lead-up greatly hampered by the quarantine measures in effect globally because COVID-19.

I know these are extraordinary times which call over extraordinary measures but at the end of the day if we will not have a “complete” Olympics, as Japan Prime Minister Shinzo Abe himself said, and competition far from what we know the Games are known for, might as well postpone especially when such is possible.

However, let me say as well that I understand the current position of the IOC and Japan organizing committee as they hold off decision on a deferment at this point.

Planning and preparing for the Olympics take years to do and entail a lot of factors to consider like the venues, broadcast, accommodation, security and availability of personnel, among others, and cancelling late in the game is not an easy decision to make.

Moving to postpone the Games is one thing and what comes next it is another thing.

The IOC has to have a Plan B, or even C and D, on how it intends to move on in an event of a deferment — when is the best possible date to have it, how to honor its various commitments in light of it, adjusted qualifying platforms for the athletes, maintenance of venues (Who pays for that?) and so on.

With that said, the next four weeks will be crucial for the organizers of the Tokyo Games. Some big and tough decisions have to be made and hopefully they will be guided properly and come up with the appropriate resolution to the situation.

Citius, Altius, Fortius

 

Michael Angelo S. Murillo has been a columnist since 2003. He is a BusinessWorld Senior reporter covering the Sports beat.

msmurillo@bworldonline.com

To delay or not?

Considering the magnitude — and the resources required for the staging — of the 2020 Summer Games, it’s a wonder the International Olympic Committee continues to refrain from postponing the quadrennial spectacle due to the novel coronavirus pandemic. The closest it has come to doing so is the announcement it made over the weekend, with president Thomas Bach acknowledging the possibility and noting that discussions will be held on the matter. The actual decision, he said, will be made anytime in the next four weeks. Meanwhile, all other sporting events of smaller scope have already been moved or scuttled altogether in compliance with community quarantine measures.

That said, the pressure from the IOC to act, and sooner rather than later, is strong. Member countries and participants to the Games are already unilaterally pulling out in the interest of its athletes. Preparations for the competitions take not inconsiderable time that is simply not available given current efforts worldwide to combat the spread of the virus. And while the pressure for the show to go on may be immense, it does not take precedence over the need to uphold public safety. Billions of dollars are at risk should the Olympics be held in abeyance. Conversely, billions of lives are at risk if they are not.

Perhaps the IOC’s recalcitrance is to be expected. After all, it’s a monolith that has rules in place barring it from moving without consultation from its stakeholders. Against an invisible enemy that spreads insidiously, however, it needs to act faster — much, much faster. It cannot tarry, especially in the face of the obvious. As longest-serving IOC official Dick Pound underscored yesterday, there is no choice but to postpone the Games. And yet what does it do in response? It has argued, via spokesman Mark Adams, that “it is the right of every IOC member to interpret the decision of the IOC executive board which was announced.”

Understandably, the Tokyo 2020 Organizing Committee wants the Olympics to go on. Outside of seeing its work come to fruition, it’s also influenced by the seemingly business-as-usual manner the whole of Japan has acted despite being among the first countries hit by the virus. That said, no less than Prime Minister has hinted at the Games’ postponement. “In case this becomes difficult, in order to make the athletes our top priority, we may have no choice but to decide to postpone the Games,” he said before Parliament. His words may be laced with contingencies, but they nonetheless represent a marked departure from his previous position.

At this point, the safe bet, pun wholly intended, is that the Olympics will be postponed a year. By the time 2021 rolls around, the benefits of countermeasures will have been clear, the spread of the virus will have been mitigated, and a vaccine will have been developed. The Games will then be what they should: a celebration of life.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

alcuaycong@bworldonline.com

Helping frontliners through HelpThru’s ONE for ONE project

Determined Filipinos are initiating drives to help local healthcare frontliners cope with the difficult situation that is the Covid-19 pandemic. Among them is HelpThru, a charity organization raising funds for the nation’s response efforts.

In just over a week, HelpThru announced that they’ve been able to raise upwards of P800,000 and donated to 33 NCR-based hospitals. These care packages include gallons of alcohol, hundreds of masks, lab gowns, gloves, and face shields to the following hospitals:

  • Quezon City General Hospital
  • Sta. Ana Hospital
  • Ospital ng Maynila
  • East Avenue Medical Center
  • Valenzuela Medical Center
  • National Children’s Hospital
  • Dr. Jose Fabella Memorial Hospital
  • Amang Rodriguez Memorial Medical Center
  • Dr. Jose N. Rodriguez Memorial Medical Hospital
  • Ospital ng Paranaque, Rizal Medical Center
  • Mandaluyong City Medical Center
  • Philippine General Hospital.

They are en route to taking their initiative to hard-to-reach hospitals outside the National Capital Region, starting in North Luzon.

The ONE for ONE Project

While they count Columbia International Food Products Inc. and Xavier School Class of 66 as some of their generous partners, not all donors are prominent, organized firms.

Michico Oranga, co-founder of HelpThru, shared on a social media post that a lot of regular individuals have also indicated their willingness to help, prompting them to launch their ONE for ONE Project. Under this project, HelpThru donates one face mask for every face mask bought from them (all profits going to charity.)

“What’s good about our face masks is that they are washable, water resistant, and locally made. We’re helping the livelihood of seamstresses who are stuck during the lockdown period too,” Oranga said.

Grabe, totoo ngang may bayanihan pa rin. (It’s true, helping out one’s neighbor as a community still exists). It is possible, so don’t lose hope! Keep safe everyone, and God bless you all.”

To order, click https://m.me/helpthru . To donate, fill out the form at https://forms.gle/t6MrLj8KkqgU32hW9 .

Virtual career fair to help students find online jobs amidst pandemic

Due to rising restrictions around the current Covid-19 pandemic, career fairs around the country are being cancelled left and right, leaving students in need of a platform to find employment opportunities.

In response, the UP Career Assistance Program (based out of the University of the Philippines’ College of Business Administration) is staging an online job and internship fair for University students and fresh graduates next week.

UP Career Assistance Program (UP CAP) is a non-profit organization dedicated to helping students jumpstart their careers through various platforms that prep and connect students to the corporate world.

Organized in collaboration with Inkompass, Online Career Fair 2020: Live Your Success Story invites participants to: 

  • interact with select companies via the Career Fair Livestream,
  • discover the numerous job and internship opportunities they offer at the Opportunities Portal,
  • and drop their resumes to seal the deal at the online Resume Portal.

UP CAP’s OnlineCareer Fair will go live on March 30, at www.upcap.ph.

Real estate firm Signet pioneers property crowdfunding with Flint

While Andre Mercado worked as an employee at online real estate marketplaces Lamudi and Zipmatch, he noticed the gaps in the local property market – particularly in lead generation. “Brokers are not into marketing or business development. We do the marketing for them so they can focus on building relationships,” he said.

So in 2018, he established Signet Properties, a data and tech driven lead generation provider that aims to be a household name in real estate.

By utilizing latest technologies such as 360-degree aerial views of neighborhoods, 3D modeling for units, and commute map integrations with Sakay.ph, the company delivers an end-to-end solution catering to the needs of property sellers while also connecting them to property buyers.

Today, Signet is one of the fastest growing lead generation providers in real estate and has grown its employees to 35 in only a year. The platform currently has more than 500 broker subscribers and over 5,000 registered brokers. It is also quickly growing its database of real estate developments from all over the Philippines and has partnered with Megaworld and Suntrust Properties.

Flint, a “Grab for real estate”

One of the company’s flagship services is Flint, the Philippine’s first real estate crowdfunding platform. In partnership with Seedin, Southeast Asia’s leading crowdfunding platform, the investment vehicle allows Filipinos and foreign investors to invest in real estate for as low as P1,000, with guaranteed returns for investments.

Mercado explains that real estate crowdfunding is a concept that has been around for some time now. Flint has simply stepped in to digitize it. (The government’s approval of the rules on crowdfunding last year opened the doors for them.)

“In the past, people would usually need to save up until they’re finally able to pool together enough money to buy a property to rent out or resell,” he said. “Flint makes it convenient for users to purchase a share of a real estate property regardless of whether total Flint user investment has reached the investment amount of the property selected. That’s because we’ve pre-funded all our real estate properties in our portfolio.”

Real estate crowdfunding compliments REITs (Real Estate Investment Trust), Signet’s CEO adds. REITs are a longer-term investment and would need a great exit plan for one to profit, whereas Flint is a short-term investment with low risks and low investment cost.

Innovating and creating impact

Over the next three years, Signet plans to roll-out brand new innovations to complement Flint, including an e-commerce platform for real estate currently in the works.

They also aim to increase visibility for their proptech services in the Visayas and Mindanao regions, as well as countries such as Singapore and Taiwan.

“We’re all about doing innovation and creating impact,” Mercado shares. “As a founder, I deal with collaborators and not competitors. To create more impact, we need more collaborators who have the same vision and the same heart as our company’s.”

BSP throws P300-B lifeline to gov’t

THE Bangko Sentral ng Pilipinas (BSP) will buy short-term securities from the Bureau of the Treasury (BTr) to support the government in lessening the impact of the coronavirus disease 2019 (COVID-19) outbreak on the economy.

In a statement on Monday, the central bank said it was authorized by its policy-setting Monetary Board to purchase P300 billion in government securities from the Treasury through a repurchase agreement with a maximum repayment period of six months.

The BSP said funds generated from the bond-buying agreement will be used to support the government’s programs to counter COVID-19’s economic impact.

“We continue to support the government’s initiatives and objectives during the enhanced community quarantine (ECQ). This additional amount is intended to provide support for those most affected by the ECQ, especially in Luzon, for the next 60-90 days,” BSP Governor Benjamin E. Diokno was quoted as saying in the statement.

Meanwhile, National Treasurer Rosalia V. de Leon said in the statement that the arrangement “is the most cost-effective way for us to provide an extra lifeline to the national government to support the programs to fight this pandemic.”

Asked how the BTr will fund P300 billion in securities, Ms. De Leon told reporters in a Viber message: “Recall we have deferred income tax payments and we also expect other inflows e.g. when capital markets open and ODAs (official development assistance).”

Sought for comment, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said this move by the BSP will give an assurance to the financial markets.

“This provides stability for the financial system knowing that the central bank is behind efforts to combat COVID-19 on the supply-side and not just on the demand side,” Mr. Asuncion said in a text message.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said this bond-buying program is another form of easing from the central bank as it seeks to provide liquidity.

“This may also be a form of de-facto but temporary quantitative easing (QE) by the BSP to infuse liquidity through the national government for a maximum of six months,” Mr. Ricafort said in a text message.

ING Bank N.V.-Manila Senior Economist Nicholas Antonio T. Mapa said in a note to reporters the bond-buying scheme will “inject a fresh round of liquidity into the market and to keep a lid on interest rates in the process.”

He said this program may also help fund the government’s fiscal rescue package, which he hopes will include “income replacement, tax forbearance and liquidity or loan support.”

Mr. Mapa added that due to the disruptions caused by the virus, the central bank will likely keep its term deposit facility (TDF) closed “until further notice.”

“The TDF window had routinely siphoned off roughly P100 billion worth of liquidity, but given tightening liquidity conditions, most banks will likely not be able to access the deposit window,” he said. “We expect BSP to remain open to further easing via further rate cuts and possible reductions to the reserve requirements to keep businesses and individuals afloat during the ongoing COVID-19 episode.”

The BSP cut rates by 50 basis points (bps) last week in a move to cushion the economy against an expected slowdown in activity due to the outbreak.

This brought the overnight reverse repurchase, overnight lending and deposit rates to 3.25%, 3.75%, and 2.75%, respectively.

The latest cut follows the 25-bp reduction in February and the 75 bps slashed in 2019, meaning the BSP has cut rates by 150 bps since last year — almost unwinding completely the 175 bps in hikes implemented in 2018.

Meanwhile, the Economic Development Cluster earlier announced a P27.1-billion relief package where P14 billion will be allotted to support the tourism industry, while P3.1 billion will fund more test kits, among others.

Luzon, which has been placed under a month-long quarantine, comprises about 70% of the country’s gross domestic product.

The Health department said COVID-19 cases in the country rose to 462 as of Monday afternoon, with 33 deaths and 18 recoveries. — L.W.T. Noble

Lockdown to further drag growth this year

By Beatrice M. Laforga and Luz Wendy T. Noble
Reporters

PHILIPPINE economic growth may slow to 4.3% or even lower if the coronavirus disease 2019 (COVID-19) continues to spread and the Luzon-wide lockdown extends into the second semester, Socioeconomic Planning Secretary Ernesto M. Pernia said on Monday.

At the same time, S&P Global Ratings further slashed its gross domestic product (GDP) outlook for the Philippines to 4.2%, while Fitch Solutions Macro Research, a unit of Fitch Ratings, downgraded its Philippine growth forecast to 4% this year.

“Preliminary estimate 2020 GDP growth: 4.3%. Could be lower if crisis persists and enhanced community quarantine is extended beyond midyear,” Socioeconomic Planning Secretary Ernesto M. Pernia told BusinessWorld in a mobile phone message on Monday.

Citing preliminary estimates by the National Economic Development Authority (NEDA), Mr. Pernia said the Philippine economy could expand by 4.3% this year, slower than the 5.9% in 2019. This would also be below the initial 5.5-6.5% projection made at the onset of the COVID-19 outbreak and far from the official estimate of 6.5-7.5%.

The Development Budget Coordination Committee (DBCC) has yet to update the government’s macroeconomic assumptions, but is scheduled to meet this month.

In a note sent to reporters on Monday, S&P once again trimmed its 2020 growth forecast for the Philippines to 4.2% from the 6% baseline forecast last December.

However, this would still be faster than S&P’s 2.7% growth outlook for Asia-Pacific this year, as well as China (2.9%), Indonesia (4.1%), Malaysia (2.7%) and Thailand (0.5%). India and Vietnam are expected to lead growth in the region at 5.2% and 5%, respectively.

“Though necessary, this would have a direct impact on domestic demand, with most discretionary consumption and investment relegated to the sidelines for a while,” Mr. Conti said in an e-mailed response.

Luzon, which makes up 70% of the country’s gross domestic product (GDP), is under an enhanced community quarantine that is scheduled to end on April 12.

“[S]harp changes in global conditions for health, economic, and financing markets have led S&P to revise our baseline forecast to what we now see as a global recession… We therefore see weak demand both on the domestic and external fronts, compounded by tougher global financing conditions. This is notwithstanding the fact that the Philippines is less dependent on tourism and foreign direct investment relative to many of its neighbors,” Mr. Conti added.

On the other hand, S&P upgraded its 2021 growth forecast for the country to 7.5% from its 6.4% baseline estimate in December.

“[D]epth of the slowdown as well as the speed and magnitude of the recovery will still depend crucially on how the global and local situations develop over the next few quarters,” Mr. Conti said.

Meanwhile, Fitch Solutions said it now expects the Philippines to expand by just 4% this year, from the 6% penciled in earlier this month.

“We have previously flagged how the Philippines economy would suffer from the COVID-19 outbreak impact through tourism, remittances, supply-chain disruption and foreign direct investment inflows weakening. While these transmissions channels are still in place, we now believe that the most significant drag on growth will come from quarantine measures in the country following a severe outbreak,” Fitch Solutions said.

In a separate report, Fitch Solutions said that it expects BSP to maintain its dovish stance, expecting rate cuts of another 50 basis point (bps) in the next quarters.

“[This is] due to a need to attract foreign inflows and protect the peso amid an aggressive risk-off environment,” it said.

Following the spate of easing from central banks across the world, the Monetary Board decided to slash rates more aggressively by 50 bps on March 19, reducing overnight reverse repurchase to 3.25% while overnight deposit and lending were brought down to 2.75% and 3.75%, respectively.

S&P downgrades growth forecasts amid pandemic

S&P downgrades growth forecasts amid pandemic

PHILIPPINE economic growth may slow to 4.3% if the coronavirus disease 2019 (COVID-19) continues to spread and the Luzon-wide lockdown extends into the second semester, Socioeconomic Planning Secretary Ernesto M. Pernia said on Monday. Read the full story.

S&P downgrades growth forecasts amid pandemic

Outbreak exposes disparity, leaves many out of work, pay

By Norman P. Aquino
Special Reports Editor

WHAT used to be a bustling street near the Centro Escolar University in Las Piñas City was now bare, except for a cart of sorbetes being pushed by Alex H. Reales, 55.

Mr. Reales, who’s been peddling “dirty” ice cream for 25 years, made P500 ($10) in seven hours just the day before, which wasn’t bad considering that the city and the entire Philippine island of Luzon had been locked down amid a novel coronavirus outbreak.

“I have to keep working, otherwise my family won’t have anything to eat,” he said in an interview in Filipino, his black face mask catching the sweat from his wrinkled face under the hot summer sun.

“Some people may not understand it, but that’s how it works,” Mr. Reales, who supports three children aged 8 to 24 who still live with him, said.

He added that village law enforcers have been lenient even if most people have to stay home under a so-called enhanced community quarantine ordered by President Rodrigo R. Duterte on March 16 to contain the virus. Starting Tuesday, however, he won’t have work anymore because the ice cream factory is closing.

Mr. Duterte said Luzon’s 60 million people should leave the house only to buy food, medicine and other basic items until April 12.

The lockdown — initially limited to Manila, the capital and nearby cities — that not only suspended work but also halted all public transportation was meant to prevent the quick spread of COVID-19, which has sickened more than 300 people, with 19 deaths.

Under quarantine rules, only one family member can go out to buy grocery items.

Interior and Local Government Secretary Eduardo M. Año advised residents on March 14 — when the lockdown was still limited to Metro Manila — to buy a week’s worth of food.

“This is the time for Filipinos not to be a smart-aleck,” he told a news briefing in Filipino. “We are facing a problem. Lives are at stake.”

‘DECISION TOOL’
The lockdown has exposed the disparity between rich and poor families, and for many low-income earners, it’s just plain impractical, not to mention impossible.

Critics have questioned how some politicians got tested for the virus even if some of them had not shown any symptoms, amid reports that others were being turned down or made to wait by hospitals.

Members of the presidential family got tested, as well as several Cabinet secretaries and lawmakers, most of them later testing negative for the virus including Mr. Duterte.

Health Undersecretary Maria Rosario S. Vergeire has said all the politicians qualified under the agency’s “decision tool,” which allowed testing of people with either exposure or travel history even if they had not shown any symptoms.

They have since changed the criteria by prioritizing people most at risk — those aged 60 and above, with underlying conditions and showing severe symptoms.

The virus has sickened about 308,000 people, killing more than 13,000 worldwide, mostly in China.

Meanwhile, Mr. Duterte said the government would take care of workers’ needs during the lockdown, but didn’t say how. He also asked companies to pay year-end bonuses in advance.

At one point, he ordered military camps to accommodate and feed Filipinos who might need some lodging during the lockdown.

“The existing level of panic and fear would likely be worse without such reassurances however unrealistic they prove to be in the longer run,” said Malcolm Cook, ISEAS-Yusof Ishak Institute’s senior visiting fellow in Sydney.

“Many leaders and governments are largely trying to catch up with the effects of the virus. The response to this pandemic will be the biggest political test for the leaders of most of the affected countries including Mr. Duterte and the Philippines,” he said in an e-mailed reply to questions.

Almost 25 million jobs and $3.4 trillion in income globally could be lost in the worst-case scenario of a coronavirus disease 2019 (COVID-19) pandemic, according to the International Labor Organization (ILO).

‘NO WORK, NO PAY’
In the Philippines, as many as 60,000 jobs will be lost, ILO said, citing the National Economic and Development Authority.

Call center agent Maricel Ramos (not her real name) hopes she won’t be one of those.

Ms. Ramos, a 32-year-old single parent of six, said her company, Worldsource, Inc. had promised to pay them their salaries until the end of the month.

Employees were also told they could keep working from home but they need to provide for their own laptops, she said.

“Up to now, we haven’t heard from the company about the exact arrangement because there’s a no work, no pay policy,” Ms. Ramos said in an interview. “I feel like I’ve been abandoned by our company. Hopefully I would still have a job to go to once this is over.”

Mr. Duterte has asked local governments to provide food packs to affected families with the help of the Social Welfare department.

The government will also release a P27.1-billion budget to aid affected sectors, with $1 billion more in financing under negotiation, according to the Finance department.

About 250,000 affected workers in small and microenterprises will get P5,000 each in financial aid, the Labor department has said.

In Congress, several lawmakers have filed bills allotting various amounts of stimulus packages, including one worth P108 billion proposed by Marikina Rep. Stella Quimbo.

“The poor are suffering and will continue to do so as they cannot afford self-quarantine, often cannot work from home, and work in sectors vulnerable to this virus and its impacts,” Mr. Cook said.

“Minimizing this suffering is key and close coordination between the National Government, local governments, the private sector and the civic sector will be key.”

Mr. Reales, the ice cream vendor, frowns at Mr. Duterte’s offer of support to workers.

“That’s too good to be true,” he said. “It’s not good to put your life in someone’s hands. You need to take care of yourself.”

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