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Stocks drop on worries of recession due to virus

By Denise A. Valdez, Reporter

PHILIPPINE SHARES declined yesterday on mounting worries of a recession due to the coronavirus disease 2019 (COVID-19) pandemic.

The benchmark Philippine Stock Exchange index (PSEi) lost 135.46 points or 2.57% to close at 5,131.16 on Monday. The broader all shares index also fell 75.19 points or 2.33% to 3,144.31.

“Local stocks fell sharply, giving back some of the strong gains experienced in the previous days to kickstart what seems to be another volatile week,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message yesterday.

He noted COVID-19 worries continue to drag the market lower, especially as cases continue to rise both locally and abroad.

Records by the Coronavirus Resource Center of John Hopkins University show there were 723,700 confirmed COVID-19 cases across the world as of Monday afternoon. United States leads with more than 143,000 cases, followed by Italy with more than 97,600 and China with more than 82,100.

In the Philippines, the Health department reported 1,418 cases, 71 deaths and 42 recoveries from COVID-19 as of Sunday afternoon.

“The pandemic concerns compelled investors to take profits out of the market’s 10.21% week-on-week surge last week,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a text message.

He noted investors are reacting to the declaration of the International Monetary Fund that the global economy is now in recession, and the remarks of Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno that the Philippine economy could also suffer the same fate this year.

“The increase in cases is unabated. Its economic impact is worrisome… The latest developments are making the outlook dimmer and this is weighing on investors’ sentiment,” Mr. Tantiangco said.

All sectoral indices ended in red territory on Monday. Financials dropped 40.83 points or 3.35% to 1,176.45; holding firms lost 158.07 points or 3.07% to 4,984.04; industrials shaved off 132.91 points or 2.14% to 6,071.63; property trimmed 59.58 points or 2.14% to 2,721.57; mining and oil erased 54.92 points or 1.33% to 4,047.55; and services slipped 7.64 points or 0.64% to close Monday’s session at 1,169.63.

Some 535.84 million issues valued at P5.33 billion switched hands yesterday, down from Friday’s 696.58 million issues worth P7.95 billion.

Decliners outnumbered advancers, 134 against 49, with 37 names ending unchanged yesterday.

Net foreign selling grew to P887.40 million on Monday from the P23.35 million in net outflows recorded in the previous session.

Manila seeks Chinese help in fight versus novel coronavirus

THE Philippines has sought China’s help in battling a coronavirus disease 2019 (COVID-19) outbreak that has sickened more than 1,500 people and killed 78 mostly in Manila, the capital.

“We want them to share their expertise with us,” Health Undersecretary Maria Rosario S. Vergeire told a news briefing in Filipino on Monday, noting how China had managed to tame the virus.

The Department of Health (DoH) yesterday reported 128 new coronavirus cases, bringing the total infections to 1,546.

Seven more patients aged 43 to 79 years died, while the number of those who have gotten well remained at 42, it said in a bulletin.

The Chinese Embassy and Foreign Affairs Secretary Teodoro L. Locsin, Jr. separately said earlier China would send a team of medical experts to Manila.

The Philippines has reported a spike in confirmed COVID-19 cases in the past week after China donated more than 100,000 COVID-19 test kits.

“That will be done soon,” Philippine Ambassador to China Jose Santiago L. Sta. Romana said at the same briefing, referring to China’s plan to send medical experts.

The envoy said details were being ironed out, including how many experts will come.

The Chinese city of Wuhan, where the coronavirus outbreak first emerged, started lifting a two-month lockdown on Saturday. Some services in the city have restarted while the borders were reopened to allow families to reunite.

Mr. Sta. Romana also said China had resumed operations of public transportation.

China also built temporary quarantine zones and exclusive facilities for treating COVID-19 patients and those under monitoring and investigation.

President Rodrigo R. Duterte locked down the entire Luzon island on March 16 to contain the virus, suspending classes, work and public transportation.

DoH yesterday traced the spike to expanded laboratory capacities.

The Research Institute for Tropical Medicine in Muntinlupa City can now test 900 to 1,000 samples daily, its director Celia C. Carlos said.

Ms. Vergeire said the laboratories in San Lazaro Hospital, Baguio General Hospital and Medical Center, Vicente Sotto Memorial Medical Center, Southern Philippines Medical Center, and University of the Philippines-National Institutes for Health can test up to 200 samples daily.

She also said they were waiting for the delivery of a million sets of personal protective equipment worth P1.8 billion.

Health workers in public hospitals would be prioritized but private hospitals will also get their share, Ms. Vergeire said at a news briefing. — Charmaine A. Tadalan and Vann Marlo M. Villegas

Work-from-home to drive telecom investment; returns uncertain — Fitch

THE SURGE in data traffic due to the coronavirus disease 2019 (COVID-19) pandemic will drive telecommunications companies in Asia-Pacific countries to ramp up their spending on additional network capacity, Fitch Ratings said.

But increasing the return on such investments will remain a challenge for them, Fitch said.

In a statement emailed to reporters on Monday, Fitch Ratings said: “The rising use of online connectivity and remote access technology from home is likely to drive the need for greater capacity to maintain network resilience.”

It said the Philippines, apart from India, ranks the highest in the countries it covers in terms of average capital expenditures (capex) intensity “at around 40%, compared with the mid-20s average for the region.”

The likelihood that the Philippines to spend more to improve its network capacity is even higher compared to South Korea and Singapore as the third-world country remains generally dependent on mobile for its broadband access.

“Fixed-broadband markets in Indonesia, India, and the Philippines are significantly under-served due to the limitations of fixed-line infrastructure,” Fitch noted.

Despite the increase in data consumption during the lockdowns due to the COVID-19 pandemic, telcos will still not be able to earn higher returns.

“Fitch expects the growth in telecom revenue to lag behind data consumption, as telcos are seldom able to price data to capitalize fully on the rapid growth in traffic,” Fitch explained.

It added: “Some telcos have offered larger data allowance while maintaining current price plans as part of their response efforts. This is despite declining roaming revenues due to curbs on overseas travel. Closure of retail outlets due to self-isolation and quarantine measures imposed in some countries could also lead to slower gross subscriber additions in prepaid markets reliant on traditional distribution networks.” — Arjay L. Balinbin

Competition regulator approves Lotte Chilsung acquisition of Pepsi-Cola PHL

THE Philippine Competition Commission (PCC) has approved South Korea’s Lotte Chilsung Beverage Co. Ltd.’s acquisition of more than 57% of Pepsi-Cola Products Philippines Inc. (PCPPI).

The antitrust regulator said in a statement Monday that the transaction is not likely to result in a substantial lessening of competition, noting that there are competitive constraints from other participants in the carbonated soft drinks, non-carbonated beverage, and bottled water markets.

Lotte Chilsung Beverage is acquiring up to 2,134,381,838 common shares or 57.78% of total issued and outstanding capital stock of PCPPI through a tender offer to all shareholders except Lotte Corp. and other excluded shareholders. The company is buying PCPPI shares at P1.95 each.

Lotte Chilsung Beverage is a subsidiary of Lotte Corp., a principal shareholder of PCPPI.

PCC in its decision issued Thursday also said that the share acquisition will not likely increase either party’s ability to engage in input or customer foreclosure in the global market for Polyethylene Terephthalate (PET) supply and the national market for non-alcoholic beverage distribution.

PCPPI’s authorized capital stock as of November was P750 million divided into five billion shares of common stock with a par value of 15 centavos per share. From this, more than 3.6 billion common shares are issued, outstanding and fully paid-up equivalent to more than P554 million.

PCPPI is the Philippine bottler and distributor of US food, snack, and beverage multinational PepsiCo Inc.

Lotte Chilsung Beverage is a Seoul-based company manufacturing soft drinks, foods, and other beverages.

PCC has so far approved 194 out of 211 mergers and acquisitions it reviewed. — Jenina P. Ibañez

ASF outbreaks spread on Luzon; nearly 42,000 hogs culled

THE AFRICAN Swine Fever (ASF) outbreak has widened with an additional 41,953 hogs culled, according to the Bureau of Animal Industry (BAI).

In a report filed by the BAI to the World Organization for Animal Health, Director Ronnie D. Domingo said the Philippines recorded 69 new outbreaks on Luzon.

Since the outbreak started last year, the total number of cases has risen to 3,967 while around 250,000 pigs have been culled as a precaution.

Of the new cases, the Nueva Ecija town of General Mamerto Natividad had the highest number of culls at 5,414, followed by Mulanay, Quezon at 3,907, and Laurel, Batangas at 3,083.

Six pigs were culled in Mallig, Isabela, followed by Quirino, Isabela at 7.

Areas that recorded new outbreaks include General Trias, Cavite; Sta. Rosa, Cabiao, San Antonio, Talavera, Jaen, Science City of Muñoz, Sto. Domingo, and Bongabon, Nueva Ecija; La Paz, Tarlac City, Victoria, Moncada, San Jose, Sta. Ignacia, Gerona, Pura, and Mayantoc, Tarlac; Antipolo City, Teresa, Binangonan, and Angono, Rizal; Baler and Dingalan, Aurora; San Narciso, and Catanauan, Quezon; Basista, Malasiqui, Calasiao, Bugallon, Binmaley, Labrador, Mangaldan, Lingayen, and Sual, Pangasinan; Pilar, Orion, Orani, Samal, Dinalupihan, Abucay, Hermosa, and Mariveles, Bataan; Jones, Aurora, Cordon, San Manuel, Gamu, Quezon, and Roxas, Isabela; Lagawe, Kiangan, Hingyon, and Banaue, Ifugao; Bayombong, Nueva Vizcaya; and Calamba City, Laguna.

In the Bicol region, Camarines Sur also reported cases in Calabanga, Magarao, Minalabac, Bombon, and Naga City.

Benguet province also recorded ASF cases in Itogon and Tuba.

The report traced the source of the outbreaks to illegal movement of animals and swill feeding. — Revin Mikhael D. Ochave

DoLE urged to suspend overseas nurse deployments

A LEGISLATOR asked the Department of Labor and Employment to suspend the overseas deployment of nurses for the duration of the coronavirus disease 2019 (COVID-19) containment effort.

“(Labor and Employment) Secretary (Silvestre H.) Bello (III) should suspend the sending of nurses abroad. We need our health care personnel here at this time of public health emergency to attend to sick Filipinos, and not to foreigners,” Cagayan de Oro Rep. Rufus B. Rodriguez said in a statement Monday.

Mr. Rodriguez was responding to reports that Germany was sending a plane to Manila to ferry “at least 75” intensive care unit (ICU) nurses to care for Germans infected with COVID-19.

He said the country’s health care system is overwhelmed with COVID-19 cases and many public and private hospitals are complaining of lack of personnel.

Mr. Rodriguez noted that due to depleted manpower, the Department of Health (DoH) is looking for volunteer doctors and nurses.

“We need those nurses bound for Germany and other jobs overseas to augment our dwindling public health workforce,” he said.

He urged the DoH to refrain from “asking for volunteer doctors and nurses but to instead hire them and pay them professionally at competitive rates.”

He said the recruits should also be given hazard pay and special risk allowance.

“They should be properly compensated. They are our modern-day heroes,” he said.

In an interview on ABS-CBN News Channel (ANC) on Sunday, ACT-CIS Party-list Representative Eric G. Yap, chair of the House committee on appropriations, said the chamber is willing to allot funds for wages of volunteer health workers equivalent to what their newly-hired counterparts in the government receive.

Mr. Yap said he will discuss with Speaker Alan Peter S. Cayetano an increase in the budget for volunteer health workers. Legislators will also meet with budget officials to discuss appropriations, he added. — Genshen L. Espedido

Manila Water, Maynilad to extend bill deadlines during ECQ

METRO Manila water suppliers said they are providing relief to customers experiencing difficulties paying their bills during the enhanced community quarantine (ECQ) imposed on Luzon.

West zone water provider Maynilad Water Services Inc. said it is suspending water disconnections for overdue accounts.

In a radio interview Monday, Maynilad Business Area Spokesperson Zmel D. Grabillo said that the company has added 30 days to its payment deadlines for monthly bills.

The 30 days come on top of the 60-day grace period that the water concessionaire usually gives its customers.

The company recently announced the suspension of meter reading and billing activities and the application of average monthly billing instead of charging for the actual amount of water used.

Mr. Grabillo added that there is no pending increase of water rates in the coming months.

Meanwhile, Manila Water Co. Inc. Corporate Strategic Affairs Head Nestor Jeric T. Sevilla said that monthly billing during ECQ will be based on the customers’ average consumption in the past three months.

The east zone water concessionaire also recently suspended meter reading and billing activities to protect its employees from the coronavirus disease 2019 (COVID-19).

“Any overbilling or under billing in the monthly bills will be adjusted after the lifting of the enhanced community quarantine and when normal operations resume,” Mr. Sevilla said in a radio interview Monday.

Both water distributor urged the public to practice responsible use of water, amid increased hand-washing and other preventive measure practiced to contain COVID-19.

Meanwhile, the Metropolitan Waterworks and Sewerage System Regulatory Office (MWSS-RO) ensured the public that drinking water and wastewater within its concession areas are safe and disinfected with chlorine.

In a statement Monday, MWSS Chief Regulator Patrick Lester N. Ty said MWSS water is safe for consumption, after concerns were raised about possible COVID-19 contamination in the water supply.

Mr. Ty added that chlorine treatment inactivates the COVID-19 virus, according to a World Health Organization (WHO) technical brief on water, sanitation, hygiene, and waste management released on March 19. — Revin Mikhael D. Ochave

Certainty in uncertain times

As the number of novel coronavirus disease 2019 (COVID-19) cases rapidly increased over the past few weeks, we have developed an obsession with figures and statistics. How many new cases have been reported in our country? What is the mortality rate? How many have recovered? How can we flatten the infection curve? What are the measures do we need to follow to avoid being infected?

These questions are an indication of life’s uncertainties. The COVID-19 outbreak has changed our lives in ways we could have never imagined. Our work, activities, and even relationships with each other are greatly affected.

The Department of Health has announced that the number of confirmed COVID-19 cases will skyrocket this week considering that the country has received 100,000 testing kits and more are coming in. Uncertainties about the rate of infection and when it will taper off have produced anxiety, fear, worry, and doubt in us.

On top of worrying about COVID-19, taxpayers are also facing uncertainties on their tax liabilities and responsibilities. The government’s adoption of necessary measures to contain the virus has placed many taxpayers in limbo. The imposition of enhanced community quarantine (ECQ), for example, makes it difficult for taxpayers to comply with filing and reportorial requirements with various government agencies. Some taxpayers cannot obtain the necessary documents while others face challenges in filing due to restrictions on movement, transportation, or people going to work. Even when the ECQ is lifted, delays will continue as a result of the growing backlog of unattended work, as many employees are working from home.

Fortunately, the government has listened to the clamor of the taxpayers. Many government agencies are issuing orders, guidelines, and memoranda extending reporting deadlines and easing the filing process.

Last week, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circulars extending the deadlines for submitting tax returns, availing of the tax amnesty for delinquencies, and submitting or filing documents and correspondence related to assessment cases, among other related filings.

The BIR also issued Bank Bulletin No. 2020-03 to all Authorized Agent Banks (AAB) on the acceptance of annual income tax returns for 2019 and other tax returns whose due dates fall within the ECQ period. AABs are now required to accept all tax payments, including out-of-district returns. Traditionally, taxpayers paid only through the AABs under the jurisdiction of the Revenue District Office (RDO) where the taxpayer is registered.

Taxpayers have long been requesting the ability to file and pay out of district. With advancements in technology, it is difficult to understand why taxpayers are required to pay only at certain banks within their RDOs. Hopefully, with the BIR allowing out-of-district payment during this ECQ period, they can also study how taxpayers can adopt this practice beyond the ECQ.

The Securities and Exchange Commission (SEC), on the other hand, issued SEC Memorandum Circular No. 10, prescribing guidelines on submitting through email the General Information Sheet (GIS), Audited Financial Statement (AFS), forms and documents required under existing laws, rules and regulations, and the recognition of electronic signature.

SEC Memorandum Circular No. 10 allows concerned corporations to file the required documents through email during the state of public health emergency while the country has been placed under ECQ, provided that all of the following required specifications are complied with:

(1) The submitted documents should be in portable document format (PDF), preferably with a Text Layer; (2) The submitted documents should contain an electronic signature; (3) The submitted documents should be sent as Multipurpose Internet Mail Extensions (MIME) attachments to an email from a valid company email account or email address of an authorized representative; (4) The documents that need to be executed and submitted under oath may be submitted unnotarized; however, the person(s) whose signature appears in the documents submitted shall be held accountable under the appropriate provisions of the Revised Corporation Code; (5) The body of the email should contain a statement declaring the authenticity of the submitted documents, a commitment to submit physical versions of the same documents to the SEC once the state of public health emergency is lifted, and the full name, corporate address, and mobile number of the authorized representative submitting the documents; and (6) The sender should request a Return Receipt and a Delivery Status Notification to ensure that the email has been sent and has also been received by the SEC.

It is commendable that the SEC finally adopted these rules in accordance with Republic Act No. 8792 or the Electronic Commerce Act of 2000. Under this law, for evidentiary purposes, an electronic document shall be the functional equivalent of a written document. Though it has taken a long time to be adopted, it is, nonetheless, a good development. I hope that the SEC will continue to allow the submission of electronic documents in the future, and not just during this period of ECQ.

Some of our Local Government Units (LGUs) are also passing ordinances extending payment of business and realty taxes.

Some cities in Metro Manila, such as Caloocan, Las Piñas, Makati, Manila, Mandaluyong, Muntinlupa, Navotas, Parañaque, Pasay, Pasig, San Juan, Quezon City, and Valenzuela, have extended their deadlines for paying for Q2 business taxes and Q1 real property taxes (RPT). Some of the announcements are based on duly enacted city ordinances while others are just posted on their social media accounts or published in newspapers. As soon as the ECQ is lifted, taxpayers will be busy verifying the extensions and coordinating with the cities and municipalities.

The City of Caloocan has extended the payment of RPT and LBT to June 30 through City Ordinance No.851 and 852. Las Piñas’ extended deadline for RPT is May 15 and for LBT is May 20. Makati’s extended deadline for RPT and LBT is April 30 through City Ordinance No. 2020-75. Manila’s extended deadline for RPT and LBT is June 30. Mandaluyong’s extended deadline for RPT and LBT is May 20 through City Ordinance No. 764. series of 2020. Muntinlupa’s extended deadline for RPT is May 31 through City Ordinance No. 2020-078 and for LBT is July 20 through City Ordinance No. 2020-073. Navotas’ extended deadline for RPT and LBT is May 31 through City Ordinance No. 2020-07. Pasay City and Quezon City have extended their deadline for RPT and LBT to April 30. Parañaque’s extended deadline for RPT is June 30 through Resolution No. 256 and for LBT is July 20 through Resolution No. 257. Pasig City has extended the deadline for two months from due date of RPT and LBT. San Juan City’s extended deadline for RPT is April 20 and for LBT is May 20. Valenzuela’s extended the deadline for RPT to April 30 through City Ordinance No. 677-2020.

Marikina City has announced that it will not impose interest on RPT for property owners who are unable to settle their RPT dues on the original March 31 deadline. However, there is no definite date or length of extension yet.

I hope that other LGUs will consider extending their deadlines for RPT and LBT, especially since this outbreak is affecting the entire country.

While the COVID-19 pandemic is a period of uncertainty, one thing is certain: we will get through this together. Once again, the resilience of the Filipino spirit is being tested. Through the collaborative efforts of the government, international community, private sector, civil society, and ordinary citizens, together we will heal as one.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for professional advice.

 

Neptali G. Maroto is a Tax Associate of Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

FDA approves 5 COVID-19 rapid test kits

THE PHILIPPINE Food and Drug Administration (FDA) on Monday said it had approved five rapid test kits for the coronavirus disease 2019 to be used by health professionals.

The test kits are registered and used in countries with advanced technology and experience with COVID-19 including China and Singapore, FDA Director General Rolando Enrique D. Domingo said in a statement on Monday.

The agency also approved a test kit from Abbott Laboratories that can detect the coronavirus in five minutes.

The FDA has approved 17 test kits that use the so-called reverse transcriptase polymerase chain reaction technique (RT-PCR), which is more accurate than the rapid version, for commercial use.

PCR-based test kits are used in laboratories to extract genetic material from throat and nose swabs to diagnose a patient for the COVID-19 virus.

On the other hand, rapid test kits only measure the antibodies in a patient’s blood sample.

“The rapid test kits will yield a faster result compared with PCR-based kits, but it is important that a trained health professional will evaluate and interpret the results,” Mr. Domingo said.

“We have to be very cautious in using these rapid test kits because they measure antibodies and not the viral load itself,” he added.

Mr. Domingo said a confirmatory test was still required because the test may yield a negative result because it takes the human body some time to develop antibodies.

“A positive result due to cross reaction with other bacteria or viruses is also possible, which is why a confirmatory PCR-based test is still required,” he said.

The Department of Health (DoH) earlier said it does not recommend rapid testing because it could lead to false negative results.

Aside from the Research Institute for Tropical Medicine, the laboratories in San Lazaro Hospital, Baguio General Hospital and Medical Center, Vicente Sotto Memorial Medical Center and Southern Philippines Medical Center are also testing samples of COVID-19 virus.

More than 30 public and private hospitals have also expressed a desire to become COVID-19 testing laboratories.

The FDA asked health facilities to follow only the recommended treatment guidelines endorsed by DoH and medical societies.

Claims have circulated that Procaine and Dexamethasone with Vitamin B called “Prodex-B” are an effective treatment against viral infections. Prodex-B had not been unregistered with FDA, the agency said.

“All consumers who have received the aforementioned drug are advised to monitor for any adverse reactions,” according to the FDA advisory.

FDA said Procaine is an anesthetic used to reduce pain from injections, while Dexamethasone must be used cautiously due to its side effects including a weaker immune system that could lead to a higher risk of infections.

“Unregistered drug products have no guaranteed quality, safety and efficacy data which may lead to patient harm,” it said. — Vann Marlo M. Villegas

Philippines asked to join drug trials vs COVID-19 virus

THE World Health Organization (WHO) wants the Philippines to participate in drug trials to test treatments for the coronavirus disease 2019, according to the Department of Health (DoH).

“We are studying whether the Philippines should join or not,” Health Undersecretary Maria Rosario S. Vergeire said at a briefing on Monday.

The WHO earlier said the so-called “solidarity trial” would compare the safety and effectiveness of four drugs and drug combinations against the coronavirus disease 2019 virus.

It said the solidarity trial would include participants from Argentina, Bahrain, Canada, France, Iran, Norway, South Africa, Spain, Switzerland and Taiwan.

The first patients in the drug trial have been enrolled in Norway and Spain, WHO officials said last week.

WHO is testing four of the most promising drugs to fight COVID-19, including malaria medications chloroquine and hydroxychloroquine, an antiviral compound called Remdesivir, a combination of HIV drugs Lopinavir and Ritonavir, and a combination of those drugs plus interferon-beta.

The virus has sickened about 724,000 people worldwide, with at least 34,000 deaths. About 152,000 patients have recovered. — Vann Marlo M. Villegas

Markets go mobile, mini

THE PASIG Mega Market, a centralized trading area of food and other basic provisions similar to what is typically found in every town around the country, was being readied Sunday night for more entry restrictions.

“For stricter social distancing, fever screening,” said Mayor Victor “Vico” N. Sotto in a post on his Facebook page.

He said, in Filipino, that those familiar with the market understand how difficult it is to secure the public market given its numerous entrances and size.

But before this latest measure to mitigate the spread of the coronavirus disease 2019 (COVID-19), the city government started to deploy last week what it called “mobile palengke” — mini trucks that were converted into markets and stationed on specific schedules in residential areas.

Mr. Sotto said this was meant “to reduce the amount of people” going to the Pasig Mega Market and other smaller centralized marts called talipapa.

Soon after, Valenzuela City rolled out its “market on wheels” using e-trikes with Mayor Rexlon T. Gatchalian acknowledging that they adopted Pasig’s move.

Mr. Gatchalian, in a tweet tagging Mr. Sotto, said they just “tweaked” the idea by using smaller vehicles to “adjust to our terrain na small roads… thanks for your concept!!!”

OUTSIDE THE CAPITAL
In Dagupan City, Mayor Brian C. Lim has asked grocery retailers to roll out mobile stores in the villages while the local government itself has also started setting up satellite markets to minimize people’s movement.

In a March 25 letter to operators of supermarkets, groceries, and convenience stores in the city, Mr. Lim said, “I am encouraging you to put up your mobile/rolling stores to serve the different barangays… This will allow our people to buy their daily needs without the need to travel to the city proper.”

The city, which still has no confirmed COVID-19 case, is composed of 31 barangays with a population of over 175,000. As of March 30, there are 14 persons under investigation for the disease and 433 under monitoring.

The mini, mobile market concept has also caught on in the Visayas and Mindanao.

The Iloilo City government is preparing its own “market on wheels” and Mayor Jerry P. Treñas said he is considering completely closing down the centralized markets given the difficulty of strictly implementing physical distancing.

“If they continue to not comply with social distancing, we will be instituting measures and one of this is to close down the market and use big jeepneys to market the agricultural products,” he said.

Meanwhile, the Department of Agriculture (DA) in Western Visayas will also be launching a similar initiative to help farmers from the different parts of Panay Island sell their produce in Iloilo City, the regional center.

The DA’s “Kadiwa on Wheels” will start on March 31.

Farmers groups that operate the DA-KOICA Bayanihan Tipon Centers and the Rice Processing Centers from the different provinces will man the mobile markets, which will be stationed in areas to be identified by the Iloilo City government.

“We continue the Kadiwa ni Ani at Kita program to help our small and marginal farmers earn in the midst of this crisis. In fact, we had already allowed some farmers associations to market their produce every Friday in our office in Jaro,” Maria Teresa Solis, chief of the DA Agribusiness and Marketing Assistance Division, said in a statement.

Ariel Lastica, chairman of the Champion Farmers Program of Lambunao town, said the program has allowed them to sell last week some 300 kilograms of lowland vegetables.

“At the start, transportation of agricultural products from the province to the city was restricted due to the enhanced community quarantine. But with the food lane pass issued by DA, we can now deliver our products from Lambunao freely,” he said.

In Mindanao, General Santos City has also launched its “moving” market while Cagayan de Oro City is setting up “food terminals” in the barangays where farmers can directly bring their produce. — Marifi S. Jara and Emme Rose S. Santiagudo

Politics and Crisis: A Discussion SeriesFraming the Crisis Conversation

By the Ateneo de Manila Department of Political Science

(First of an eight-part series)

EACH CRISIS is disruptive and instructive.

The Department of Political Science of Ateneo de Manila University (AdMU) invites readers to join this series as we attempt to make sense of the ongoing COVID-19 crisis and learn early lessons from it. We read the coronavirus outbreak as primarily a public health and safety concern with attendant issues of politics and power dynamics in decision making. As the crisis unfolds, political decisions will not only affect lives, but also the course of States the world over.

Each piece in this series examines sites of consensus and points of tension and debate at the local, national, regional and global levels of governance, as well as in critical spaces where they overlap. We hope to highlight effective political practices and problematic ones and the social and political constraints that citizens and governments need to confront in addressing the crisis.

Even in times of crisis, the AdMU Department of Political Science continues to advocate for: evidence-informed policy making; institutional over personal political agendas; and, critical pedagogy as an approach to citizenship education. Hence, this political discussion series.

COVID-19 CRISIS AND STRUCTURAL CHANGE
Each crisis carries the potential for structural change.

The COVID-19 crisis is not only claiming lives, it is changing structural relations all over the world: how nations are governed, how nations cooperate, how nations secure themselves, how markets and industries are run, how work is organized, how products are consumed, how services are exchanged, how learning is conducted, how communication is delivered, and, how states and societies relate to one another. Because of the crisis, new concepts and practices have surfaced. People across the globe are adjusting to new practices: “social distancing,” “online learning,” “working from home,” “lockdown,” “travel ban,” “community quarantine.”

The potential for change, however, is often not as visible as existing structural flaws. The COVID-19 pandemic has exposed the flaws, for example, in public health systems everywhere, in both developed and developing countries. Furthermore, that all-dominant phenomenon of globalization where global markets rule is now being questioned. Countries everywhere are now putting up borders instead of breaking them.

People are now questioning what global wealth and abundance mean given the evident lack of resources to combat COVID-19. The pandemic is highlighting global poverty and insecurity, not global wealth and security. The world is now reckoning with the human, social and environmental costs of unbridled, borderless, global production and exchange.

The putting up of national barriers is not entirely new. In recent years we have witnessed various advocacies for the fortification of national borders. We have also seen how these advocacies are linked to racism and protectionism (think Trump and Brexit). Today, these right-wing advocates are quick to use the COVID-19 crisis as a pretext to bolster their racist and protectionist calls. Meanwhile, the call by left-wing advocates for the world to “deglobalize” is also now being heard.

The “global” in this “global pandemic” must thus be thoroughly examined. While borders are being put up to contain the pandemic, the fact of the matter is, no nation can sufficiently address the pandemic on its own. No matter the current questioning of globalization, the world will have to cooperate to combat a virus that doesn’t recognize race or borders.

GLOBAL PANDEMIC, LOCAL CONTEXTS
This crisis is unique for each context.

“Global” does not only mean scale. “Global” also means depth. This entails not just a perspective from global norms but also an appreciation of the inevitable dropdown to the local context. And, while there is a need to “learn from best practices,” there is also a need to understand what will make a national situation unique: which sector is most vulnerable, which intervention is most effective and which weaknesses and strengths can be drawn from previous experiences.

As of this writing, in the Philippines, the sectors made most vulnerable by the COVID-19 crisis are the health workers and frontliners, workers in the informal economy, and, small- and medium-sized enterprises (SMEs). It must be remembered, however, that for the Philippines, “the global” has one face: the Overseas Filipino Worker (OFW). The strategic impact of the crisis on OFWs and on our economy that is remittance-driven and consumption-led cannot be overstated.

The status of OFWs as a vulnerable sector is now amplified because of the emerging stigma attached to OFWs as likely carriers of the coronavirus. OFWs are often valued by Philippine society and their hometowns as sources of remittances and by their countries of destination as much needed labor. Here or abroad, these OFWs are viewed primarily as workers or consumers and not as citizens. In both home and host countries, the needs of the more “permanent” population are first attended to by national and local governments and the needs of the “mobile” population viewed as secondary concerns.

Governments neglect the reality, for example, that social distancing is very difficult for OFWs. Living conditions for many OFWs (i.e communal or dormitory type quarters) already put them at risk and most OFWs receive little or no support from employers or host states at a time of crisis. Moreover, their prospective return has been viewed largely as a risk by some LGUs who have refused to accept even their own returning OFWs. The reality is, for mobile populations, exposure to the virus is real along with the potential to infect others. However, there should be a way to address this concern with inclusive social guidelines that do not stigmatize and exclude them.

Given the series of political upheavals especially in the Middle East, natural calamities, and migration policy changes in OFW-heavy host States, migration sector advocates have been repeatedly warning the public about the country’s capacity to absorb returning migrants in the case of the “big one.”

The COVID-19 pandemic could be that “big one.” Massive OFW job loss will mean OFW families moving from “middle class” or “non poor” to “poor” as remittances abruptly stop. National and LGU response must include the welfare of OFWs and their families which include solo parents, senior citizens, and school aged children. In 2019 alone, these remittances reached $35.1 billion.

The government (both national and local) will have to keep an eye on the occupations that will be hit the hardest: domestic workers, cruise ship workers, hotel workers. The government must also anticipate that the demand for healthcare workers abroad will increase, and this will further burden our already tapped out healthcare system.

Given our highly mobile population, the transmission of any disease will always be “international” and never just “local.” This means that our public health system must be equipped to care for both permanent and mobile populations.

The COVID-19 crisis reveals a break in the “OFWs as new heroes (mga bagong bayani)” discourse because it asks the Philippine State to genuinely assist these OFWs as part of the larger Philippine population, rather than “reward” them for their service to the country. They are returning, their situation is vulnerable, and they are ours.

CRISIS GOVERNANCE: FLEXIBLE, NOT DRACONIAN
Draconian measures do not equate to strong crisis response.

Crisis governance is often equated with giving governments the license to implement draconian measures even at the expense of democratic checks and balances and democratic rights.

In the context of a crisis, decision making stakes are evidently higher. The expectation for government to put forward a novel policy and strategy immediately is unavoidable.

Some scholars (see Martin, 2013), suggest that flexible governance has been proven to be more effective than command systems in times of crisis. This means that “there are methods for making and implementing decisions affecting entire communities in ways that enable rapid adaptation to new situations.” This kind of governance, Martin further claims, requires “flexible technological systems” and is based on “participation, high skill levels, robust debate, and mutual respect.”

This is reflected by evidence from an earlier outbreak (the SARs experience in Singapore) that highlights coupling “fast moving” social policies that required adherence with winning public support as necessary to effectively communicate the urgency of the task at hand (Yan, Pang and Cameron, 2006). The article asserts that the policy of strict regulation on patients, caregivers and medical practitioners was implemented alongside financial relief in this sector: subsidized hospital rates and drugs for patients; and paying for medical costs of the medical practitioners in recognition of their frontline role in the crisis.

During crisis moments, the challenge to governments, including our own, is to direct citizen participation towards critical thinking, innovation, and cooperation — not to suppress it. Change will not come from those who govern alone. Crisis governance also requires governments and citizens to be guided by data and not by alarmist or baseless assumptions. Moreover, governments must be strategic in communicating concerns and decisions to its various publics.