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Senate eyes pro-poor measures

THE Senate is considering legislation on food subsidies to aid daily wage earners who have temporarily lost their jobs after President Rodrigo R. Duterte stopped work as part of a Luzon-wide lockdown to contain a novel coronavirus outbreak.

The chamber might hold special sessions for that, Senate President Vicente C. Sotto III told reporters on Thursday, as he warned of an “impending public order and financial crisis.”

“I am told the people might run out of food by next week,“ he said. “Public order will suffer. We have to remove legal impediments in the use of available funds swiftly.”

President Rodrigo R. Duterte has declared a state of national calamity after locking down Luzon island to contain the coronavirus disease 2019 (COVID-19) outbreak.

Mr. Duterte extended class suspensions, stopped public transportation and barred most people from going to work.

Mr. Sotto said he had coordinated with Finance Secretary Carlos G. Dominguez III and a high-level economist about the crisis. Special sessions might be held on Friday or Saturday as soon as Mr. Duterte calls for one, he added.

Congress went on an almost two-month Holy Week break on March 13. Hearings in both chambers have also been suspended to prevent the spread of the virus.

Mr. Sotto initially proposed a P27-billion budget to fund a P300 a day worth of assistance per family for a month. Residents of the National Capital Region and central Luzon will be prioritized.

Meanwhile, Senator Maria Lourdes Nancy S. Binay criticized the National Food Authority for the slow distribution of rice to affected residents, while Senator Sherwin T. Gatchalian sought the immediate release of financial assistance to workers.

“The problem with government is red tape and we need to release the funds now,” he said in a statement. He was referring to the P1.3 billion COVID-19 adjustment measures program (CAMP), which gives every worker P5,000.

Also yesterday, Albay Rep. Jose Maria Clemente S. Salceda asked the Inter-Agency Task Force on Emerging Infectious Diseases (IATF) to rationalize checkpoints to prevent road congestion and protect food security.

In a statement, the congressman warned of food shortages if “it takes too many extra hours for food supply to reach demand.”

While food supply remains stable, long cargo queues at multiple municipal checkpoints and provincial border controls “threaten immediate supply stability and increase price pressures.”

Meanwhile, the Commission on Higher Education (CHED) called on universities and colleges to suspend tuition payments during the lockdown period.

CHED Chairman Prospero O. De Vera told a news briefing he had received complaints from parents after some schools required tuition payments during the lockdown that suspended classes and public transportation. — Charmain A. Tadalan, Genshen L. Espedido and Gillian M. Cortez

Muslim officials seek help in tracing KL event attendees

THE BANGSAMORO Autonomous Region in Muslim Mindanao (BARMM) government appealed for the public’s cooperation as it tracks down the people who attended a recent big gathering of Islamic preachers in Kuala Lumpur, where many of Malaysia’s COVID-19 cases are linked.

BARMM Health Minister Saffrullah Dipatuan, in a live-streamed press briefing Wednesday afternoon, said getting the exact number and names of attendees is a “big challenge” as some “refuse to admit” their participation for fear of “social stigma.”

Mr. Dipatuan noted that the participants are not just from the BARMM, but all over the Philippines.

The National Commission on Muslim Filipinos (NCMF), in a separate statement, said initial information indicate there were “215 attendees from the Philippines, mostly from BARMM.”

The Department of Health (DoH), in its March 18 update, reported the death of a 58-year old Filipino male from Lanao del Sur, one of the BARMM provinces, who has travel history from Malaysia. He died on March 17 and his positive result for COVID-19 was released March 18.

The first confirmed case of the new coronavirus disease in Cotabato City, BARMM’s political center, is a patient who attended the gathering held February 27-March 1 at the Jamek Sri Petaling Mosque in Kuala Lumpur.

Cotabato City is already on lockdown and identified communities that are affected have been placed under quarantine.

Mr. Dipatuan said the BARMM inter-agency task force on COVID-19 is coordinating with local governments, the NCMF, other national agencies, and the government of Malaysia for tracing.

ZAMBOANGA, DAVAO
Meanwhile, neighboring Zamboanga City is implementing an enhanced community quarantine effective March 20, which means stricter measures from its current isolation policy.

Mayor Maria Isabelle Climaco-Salazar issued the new directive Thursday to mitigate what the executive order labels as “the impending spread of COVID-19.”

As of March 18, the independent city still has no confirmed case of the new coronavirus, while there are 12 persons under investigation (PUI) and 353 under monitoring (PUM).

With the enhanced community quarantine, public transportation will be suspended, “strict home quarantine will be implemented in all household,” and only “establishments providing basic necessities will remain open.”

The Davao Region, the first to declare a regional level community quarantine, will have its borders closed for incoming persons and vehicles, except for cargo, until April 1.

Under the regional Covid-19 task force’s directive, those “who want to leave the region can leave anytime but cannot come back during the lockdown period.”

The region is composed of Davao City and the provinces of Davao Oriental, Occidental, de Oro, del Norte, and del Sur.

As of 6 p.m. March 18, the region has one confirmed COVID-19 case, 88 PUIs of whom 31 have been discharged, and 3,589 PUMs.

The Department of Health-Davao Region (DoH-11) also announced on Thursday the death of three individuals who were placed under investigation.

However, the DoH-11 has yet to confirm whether they died of the coronavirus disease pending results of their tests from the Research Institute of Tropical Medicine. —Carmelito Q. Francisco

#COVID-19 Regional Updates (03/19/20)


Food pass application streamlined

THE APPLICATION for food passes has been streamlined to ensure continuous movement of food, agri-fishery products and inputs in Metro Manila and the rest of Luzon, according to Agriculture Secretary William D. Dar. He said transporters of these products only need a duly signed inventory of items indicating its origin and destination to get through quarantine checkpoints, while the food pass accreditation can be processed later. “We wish to reiterate that the food pass accreditation and stickers are free of charge. We will accept downloaded forms that are completely filled-out, properly signed, and bearing the DA (Department of Agriculture) logo as temporary pass pending the approval of the application,” Mr. Dar said. The DA is also working with the agriculturist offices of local government units to develop an easier and faster system. — Revin Mikhael D. Ochave

Taal Volcano alert level lowered

TAAL VOLCANO is now on Alert Level 1, the lowest level, following reduced activity in the past four weeks, the Philippine Institute of Volcanology and Seismology (Phivolcs) said on Thursday. Phivolcs said the daily average of volcanic earthquakes has dropped to 31 during the Feb. 14-March 19 period from 141 during the previous four weeks. Alert Level 1 means that the volcano is still in an abnormal condition and the threat of eruption remains. — Vann Marlo M. Villegas

Nationwide round-up

Price freeze on basic goods in effect until May 15

THE GOVERNMENT has ordered a price freeze on basic goods and commodities until May 15 after President Rodrigo R. Duterte declared a nationwide state of calamity due to the rising cases of the coronavirus disease 2019 (COVID-19). The circular containing the directive states: “Following the declaration of a State of Calamity on 16 March 2020, prices thereof shall not increase in the retail market for any reason or for any purpose, for the next sixty (60) days upon its declaration or until 15 May 2020, unless sooner lifted by the President.” Meanwhile, the Commission on Higher Education (CHED) on Thursday called on universities and colleges to halt the collection of tuition and other fees. CHED Chairperson Prospero O. De Vera said he received complaints from parents who were forced to settle payments despite the current enhanced community quarantine. — Gillian M. Cortez

DFA suspends visa issuance

DFA logo seal
THE DEPARTMENT of Foreign Affairs (DFA) is suspending the issuance of visas until April 13 while the enhanced community quarantine in Luzon is in place. “We are stopping the issuance of visas from all posts abroad and here. This goes one imperative step forward: a total ban on incoming foreign visitors of all nationalities no exceptions,” Secretary Teodoro L. Locsin, Jr. said in a social media post, Thursday. “Outgoing foreign visitors should be given all the help to get out. Idiotic to detain them.” — Charmaine A. Tadalan

The Plague

The global COVID-19 crisis has heightened interest in a 73-year-old novel by Albert Camus. Published in 1947 in Paris, France, The Plague (La Peste in the original French) is a fictional account of an outbreak of bubonic plague in the French-Algerian town of Oran.

Born in Algeria when that country was still a colony of France, Nobel Prize laureate Camus delves into how his novel’s protagonists respond to the seemingly impossible task of stopping the contagion while doing all they can to help the afflicted. In the process he takes the reader into the complexities of the human yearning for meaning and purpose despite death and the absurdity of existence.

The less philosophical and conventional interpretation of one of Camus’ best known works is that it is an allegory of the Nazi occupation of France — of the plague that swept through that country and the rest of Europe during World War II which was far deadlier than the epidemics that throughout history have killed millions across the planet.

But the novel is also engaging at the literal level as simply a human struggle against a lethal infection. Camus excludes from his work the Arab populace. But he is nevertheless able to rise above that seemingly colonial bias by demonstrating how human beings, no matter their convictions, their ideology or their race are able to come together to combat the threat of death despite the most terrible odds, and in the process give their lives some meaning.

The same commitment to our common humanity is evident in at least some Filipinos’ response to the COVID-19 pandemic. Despite the danger to their health and lives, most of the country’s medical workers — doctors, nurses, pharmacists, caregivers — remain at their posts and are continuing to provide the services needed not only by those who have been stricken by the disease, but also those who need medical advice and care as well as maintenance medications.

Scientists at the University of the Philippines have worked overtime to develop an inexpensive COVID-19 test kit, while responsible journalists provide information and analysis about the disease and report the numbers afflicted, their nationalities and places of confinement, as well as the fatalities.

Despite the above examples, irresponsible and uncaring trolls nevertheless persist in spreading false information through social media. And many are the hoarders of prime commodities and health and cleaning supplies who are indifferent to the welfare of others as the disease spreads and claims more victims.

In Camus’ Oran what the government was doing was so irrelevant there was little mention of it except its refusal to call the plague a plague. In President Rodrigo Duterte’s Philippines, the government response has been at least problematic and qualifies as a Philippine version of the absurd.

Mr. Duterte supposedly banned travelers from China, Macau and Hong Kong from entering the Philippines last February, five long weeks after international and Philippine media reported the outbreak of a “mysterious” disease in Wuhan, China. But visitors from China continued to come to the Philippines through, among other means, the “pastillas” racket at Immigration in which a “fee” of P10,000 each entitles a visitor to “special treatment.”

The declaration of a public health emergency took weeks more, despite the Department of Health’s (DoH) opinion that it should have been done earlier. The Health Secretary and a senator made it a point to stop Filipinos from “singling out” China as the source of the infection. DoH personnel were earlier also issuing conflicting statements on the number of those afflicted and the extent of the threat. The Department then revised its report on the number of COVID-19 patients and declared a pandemic. From three last week, the number has risen to 187 as of Wednesday, March 18.

The latest indication of how the Duterte regime is addressing a crisis whose dangers Mr. Duterte had earlier minimized is a so-called “community quarantine” of Metro Manila that he called a “lockdown.” It was initially neither.

Almost predictably did Mr. Duterte conclude his “lockdown” declaration by praising China and completely ignoring the selflessness and dedication of the Philippines’ own health workers and scientists.

For a quarantine or lockdown to be effective in stopping the transmission of the disease, no one and nothing should be allowed to enter or leave Metro Manila. That should have been more than obvious to anyone with a two-digit IQ, but the regime apparently realized it only three days after Mr. Duterte’s March 12 press conference.

Despite his declaration that sea, domestic air and land travel to and from the capital would be banned, a Cabinet official announced exemptions that allowed the entry and departure of the non-Metro Manila residents who commute to the capital daily, which could make the spread of the disease to and from outlying provinces likely. The lockdown was later “enhanced” without prior notice, thus stranding thousands of non-residents who had reported for work in Metro Manila.

The much publicized “lockdown” declaration itself was silent on one of the most critical protocols of all in preventing the spread of COVID-19: the imperative of social distancing, or for people to be at least one meter apart. Mr. Duterte’s declaration said transportation services in Metro Manila will continue. Only later was the maximum number of passengers in public utility vehicles limited to half their usual capacity.

There was nothing in his declaration or later about the disinfection of trains, buses and other means of public transport. The regime stopped their operations altogether. Neither was there any mention of what it intends to do for the poor communities where people live cheek-by-jowl with each other — or, in the aftermath of the shutdown of a number of businesses, what the recently unemployed and their families will live on. Mr. Duterte did make tentative noises about the barangays’ feeding the populace and his paying their rent. But exactly how either can be done — or if he was at all serious — is still unknown.

Absent was what government will do to prevent the spread of the disease among the poor, given the lack of running water in their communities and the shortage and prohibitive cost of face masks, hand sanitizers, bleach and alcohol to millions of residents. The Department of Finance has announced that some P27 billion has been set aside for the crisis, but has provided no details on how it will be spent.

Its obvious unpreparedness was hardly surprising for a regime whose main distinction has been its inability to plan and effectively implement anything except the killing of dissenters and the poor. But what seems to be the exception this time is its use of the COVID-19 crisis as an excuse to further empower the police and military — whose presence was more than prominent during Mr. Duterte’s March 12 press conference announcing the Metro Manila “lockdown” — by enforcing his suspension of the Constitutional right to peaceful assembly.

By saying that it was not martial law he was declaring, Mr. Duterte aroused suspicions that it is a version thereof, or a prelude to a nationwide declaration. Rather than assuring the health and well-being of the people, what he seems to be more focused on is further cementing his hold on power.

What all this is once again demonstrating is that, in the Philippines as in Albert Camus’ Oran, it is the people themselves, as the health workers and those other men and women at the frontlines of the fight against COVID-19 are proving, who can most effectively assure their own health and well-being in the present crisis rather than what passes for governance in this, the country of our sorrows.

 

Luis V. Teodoro is on Facebook and Twitter (@luisteodoro).

www.luisteodoro.com

Police power in the time of coronavirus

The issue is power. And the one under national scrutiny the past week has been this government’s use of that power in issuing its “enhanced community quarantine” measure to control the spread of the China-originating coronavirus.

Hence, under the quarantine order, most travel (land, air, sea) has been stopped or heavily regulated, schools and many businesses closed, and the island of Luzon essentially has been isolated from the rest of the county.

All this is under the use of the president’s police powers. And note that the word used is the “president” and not the “executive branch.” Under Article VII of the Constitution, the key phrase relevant here is that “executive power shall be vested in the President of the Philippines.” One individual, for which all other executive power emanates from.

The rationale for this is found in US analysis, from where we substantially got our constitutional system. Thomas Jefferson puts it this way: “For the prompt, clear, and consistent action so necessary in an Executive, unity of person is necessary” This has, as US Attorney General William Barr points out, “brought to our republic a dynamism and effectiveness that other democracies have lacked.”

One of those so-called inherent powers by which the executive power is supposed to “execute” is the aforementioned police power. And this has been defined by commentators as the “power of promoting public welfare by restraining and regulating the use of liberty and property” and has been described as the “most pervasive, the least limitable, and the most demanding of the three powers. The justification is found in the Latin maxims: salus populi est suprema lex, and sic utere tuo ut alienum non laedas.” (See Nachura’s Outline Reviewer).

The latter simply means: “Use your own property in such a way that you do not injure other people.”. It’s the first maxim that’s crucial. Many have mistranslated the phrase to say “the will of the people is the supreme law.”

Not so. It is actually “the health, safety or welfare of the public is the supreme Law.”

The difference is crucial and enormous. The first indicates the people’s volition as that which supremely rules all. The actual meaning declares that a purpose independent of the people’s will (i.e., their health, safety, and welfare) is that which governs us. Hence, what is necessarily good for the people is something they may not consciously will or desire but still must logically or rationally be achieved.

Tie this up with that profoundly important phrase in the Constitution’s Preamble: the common good, which is also not the sum total of the people’s desires or wants but rather the instrument for which each individual’s rational flourishing is achieved.

That flourishing is the responsibility of each and every Filipino. It demands self-responsibility, not dependence on government.

Nonetheless, because “men are no angels,” to paraphrase James Madison’s famous formulation, if people are not exercising self-responsibility, then there’s the “necessity of auxiliary precautions.” This means that though the people have “primary control on the government,” it is still necessary to “enable the government to control the governed; and in the next place oblige it to control itself.”

That phrase “control the governed” results in the consequence of police power as mentioned above. The president’s exercise of it is limited by the following: it must comply with the Constitution and legislation but also must have a lawful subject and lawful means.

In the case of the enhanced community quarantine, all those legal elements seemingly are complied with. Thus, as Princeton politics professor Keith Whittington asked: “can the government just close my favorite bar?” (Reason Magazine, 2020), the answer is yes.

Like Professor Whittington, we can also say that “we have always lived in a country in which political officials can order private businesses closed”; and that “dramatic measures to address the spread of disease have long been a part of those police powers, and we have long recognized that extraordinary circumstances could justify extraordinary state actions.”

But the question is not whether the enhanced community quarantine is constitutional or lawful but whether it’s the right thing to do. It’s doability and massive disruption to the economy, as well as impact on human dignity should have been deliberately determined.

One ponders if resorting to this abrupt and ill-prepared lockdown was avoidable. Other effective measures such as class suspensions, work from home, foreign travel bans, social distancing, declaration of public health emergency: all could have been implemented two or three weeks earlier. But No. Because, Filipinos perceive, this government was too wary to act and speak of the danger for fear of offending China.

Anyway, we are where we are.

And there’s a time and place for everything.

For now, this thought: we elect officials, we make laws, we habituate ourselves to democracy and the rule of law not for our feelings or tribalism but for precisely times like these. Hopefully, after getting through this we learn that.

 

Jemy Gatdula is a Senior Fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence.

https://www.facebook.com/jigatdula/

Twitter @jemygatdula

Challenge to quickly rise within the count of 10

The Corona outbreak was declared a pandemic by the World Health Organization (WHO), describing it not just as a public health crisis, but one “that will touch every sector.”

As of 20:28 GMT, Wednesday, March 18, the virus has spread to 167 countries. There were 199,286 reported cases with 7,994 deaths.

In the face of this unseen adversary, one can only humble oneself and submit to a lockdown to contain its spread. Our old generation was called to war, we are called to just stay home.

What impact will the pandemic have on the Philippine economy? There are numerous possible outcomes if viral spread persists.

In the meantime, we can assess the economy’s resilience based on recent IMF advice. In its “Policy Steps to Address the Corona Crisis,” the Fund outlined five points to prevent “deep and prolonged economic effects.”

First, the outbreak must be monitored and contained. In this regard, the Philippines is under an extreme enhanced community quarantine. A lockdown. Travel is now restricted. Movement of persons is limited to establishments for basic necessities. With on-line ordering of groceries, food is more widely available. The Government earmarked nearly P30 billion to combat the impact of the pathogen although health and labor deserved larger shares. WHO and the Department of Health created social media channels for quick advisories. We expect the UP testing kits to be launched soon. Testing kits have also been donated by neighboring countries.

Second, central banks are called upon to support demand and raise confidence by easing financial conditions and ensuring market liquidity. The BSP has some space to ensure financial stability. Expected inflation in 2020 and 2021 are both below the current policy rate. Credit and domestic liquidity are growing. Given banks’ compliance with required capital and liquidity coverage, the Bangko Sentral ng Pilipinas (BSP) can afford to provide regulatory forbearance to banks with coronavirus-affected clients. On forward guidance, the BSP has revealed a preference towards easing. We maintain though that the BSP has room to be patient and conserve its ammunition. Easy monetary policy could abet capital outflows and lead to a weaker peso with inflationary consequences.

Third, an expansionary fiscal policy to support people and firms is prescribed. The Government has flexibility in this respect having previously announced an enormous stimulus package on infrastructure. The Finance Secretary has encouraged the GSIS and SSS to expand their investment portfolios by supporting the equities market during this challenging time. The Labor

Local police and barangay security cordon off a bridge near the isolated houses at Barangay Kalusugan in Quezon City on Thursday midnight following the declaration of the area as under “extreme enhanced community quarantine” after three alleged residents tested positive for COVID-19. — PHILIPPINE STAR/MIGUEL DE GUZMAN

Department has announced a P2 billion package to provide financial assistance to some 6,000 workers expected to be affected by enhanced quarantine. Public debt ratios have declined providing additional stretch to the fiscal space.

Fourth, regulatory and supervisory policies for financial stability, banking system soundness, and sustained economic activity are advised. In this connection, banks are allowed to renegotiate loans with affected borrowers instead of tinkering with loan classification and provisioning rules. This is something Philippine banks can do. Their prompt compliance with BSP regulations gives them headroom in allowing renegotiations. RRR has been reduced by 400 basis points, lowering the virtual tax on their deposits. Since last year, the policy rate has also been reduced a number of times while lending rates have remained high. This is the best time for banks to give back.

Finally, to recover from the crisis, the Fund emphasizes the importance of global coordination and cooperation. The problem with this is that it has yet to rally the market. In two weeks, the US Fed reduced its policy rate twice to 0-0.25 percent. It announced massive asset purchases amounting to some $500 billion and opened its discount-lending windows to banks and removed bank reserve requirements. It championed an orchestrated easing move with other monetary authorities through swap lines to support international supply of the world’s reserve currency. Despite the US Fed Chairman’s bold assurance that they have some firepower left, Wall Street plummeted in futures trading. President Trump may have flattened the political curve of the coronavirus with his $50 billion additional budget for healthcare system, but this was not enough to inspire Wall Street.

On the basis of the IMF checklist, there are good signs that the Philippines could weather this healthwind. But additional granularity is needed.

First, while there are general principles of a lockdown, implementing guidelines appear raw. There is dissonance between the national authorities and local governments, with local governments pursuing various, sometimes conflicting, approaches. The Cabinet Secretary’s statement that they would be doing daily finetuning, is an honest assurance that the Government is trying its best to manage the pandemic. Judging from the experience of currently worse-hit nations like Italy, any foul-up would be absolutely costly. Sufficient logistics and good governance are tipping points.

Second, mitigating the impact on both workers and their employers is crucial. It is market positive that the business and banking sectors have committed to pay the working class their wages during the lockdown, advance their allowances and bonuses, support their medical bills in case of infection, postpone collection of rentals in closed malls and extend deadlines for debt servicing. Moral hazard should not weigh heavier than the cost of actual labor displacement and the disruption of business operations at this time. These emergency measures are all time-bound. They are temporary.

Third, public health resources are limited and should be augmented. It is not responsible to elevate public expectation for a higher budget allocation for everybody. While we have fiscal space, our legislators can do better than call for over a hundred billion of additional stimulus spending. Secretary Dominguez’ statement that, “we have enough but limited resources, so our job is to make sure that we have sufficient funds for programs mitigating the adverse effects of COVID-19 on our economy,” is well-grounded.

Finally, no one should forget that one of the major effects of the outbreak is a rethink of business strategies across North America and Europe. Management consultants are beginning to talk about diversifying supply chains away from China and a strong possibility of re-shoring of business operations including contact centers and software development. This will be challenging for many emerging markets including the Philippines.

All up, the virus knocks down every economy it hits. The challenge is to avoid a knockout by quickly rising within the count of 10.

 

Diwa C. Guinigundo is the former Deputy Governor for the Monetary and Economics Sector, the Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years. In 2001-2003, he was Alternate Executive Director at the International Monetary Fund in Washington, DC. He is the senior pastor of the Fullness of Christ International Ministries in Mandaluyong.

The beauty of aging

Virginia Woolf once wrote, “I don’t believe in aging. I believe in forever altering one’s aspect to the sun.”

Does age matter? “Only if you are a wine!” This witty retort was printed on a T-shirt worn by a youthful lady who looked 20 years younger. Age is not just based on the birth date. It is an attitude, a state of mind. It is relative and depends on one’s projection and the viewer’s perception.

The aura of youth or age reflects the individual’s state of mind. One’s physical appearance improves when he thinks and acts young (but not too young.) The state of mind is more important than one’s chronological age. One can defy the clock and the calendar indefinitely by having a healthy and open attitude in life.

Experience — in relationships, career, and travel — broadens the individual’s perspective and hastens maturity. Exposure to the finer things in life gives the person a certain degree of polish and sophistication. The mind absorbs new sensations and images and stores them in a data bank. For future Reference.

Sometimes, the downside of the growth and maturation process is the loss of a childlike wonder. At the extreme, he can become a cynic — one who is unable to enjoy the simple pleasures of life. He acquires the air of someone who has seen it all, done it all. Nothing lasts. Nothing is exciting anymore. Nonchalance and cynicism can age the individual more quickly than the ravages of time. The eyes reveal a cool wariness and weariness. Ho hum. What else is new?

Eternally young people and children share particular qualities — spontaneity and adventure, wide-eyed curiosity, delightful innocence and refreshing simplicity. They project an attractive aura of vitality and convey youth and agelessness — despite a few laugh lines and extra pounds. Is there an antidote for aging?

People are afraid of growing older. To stop time, some resort to quick fixes such as geriatric pills, Botox injections and fillers, and rejuvenation treatments and stem cell therapy, hair transplants. Others undergo cosmetic surgery in progressive stages to preserve their youthful looks. There is nothing wrong in wanting to look and feel good — for as long as possible. Why not? With advances in modern science and the discovery of anti-aging serums, it is possible to prolong the state of youth.

Medical tourism continues to grow.

The beauty and wellness industry is thriving because there is a big demand. Throughout the world, people seek the specialists and undergo expensive procedures. Halting the physical side of the aging process indefinitely is only one of the challenges of research scientists.

However, during this critical time, the urgent, most significant and essential research would be the discovery of vaccines for the prevention and cure, and the eventual eradication of diseases.

The most vulnerable are the seniors and the elderly relatives. Although some seniors may look much younger, they are clustered with the chronological age group of the 60 plus. Ironically, not all the biological organ systems are still young.

On the lighter side of things, here are some thoughts on beauty and age. The authors have retained the spark and spunk of youth.

“It’s sad to grow old, but nice to ripen.”

— Brigitte Bardot,
French actress (b.1934)

“Beauty is accepting what you are and how old you are.”

— Sophia Loren,
Italian actress (b.1934)

“We turn not older with years, but newer every day.”

— Emily Dickinson,
American poet (1830-1886)

MARIA VICTORIA RUFINO is an artist, writer and businesswoman. She is president and executive producer of Maverick Productions.

mavrufino@gmail.com

Virus lockdown is a $28-Billion gig-loan buster

By Andy Mukherjee

NO economy is immune to a fast-spreading pathogen. But where activity is organized more formally, authorities can at least try to reach the pain points with liquidity, credit, tax rebates, salary supplements or rental discounts.

None of this is easy in a highly informal economy like India. The lockdowns that nervous cities and states are now forced to impose to slow the coronavirus could upend livelihoods in ways that will be hard for government programs to combat. Shopping malls, cinemas and pubs in the financial capital of Mumbai are shut, along with schools, colleges, and the zoo. What remains open is being shunned because of fear. Chicken prices have collapsed across the country as people avoid buying meat from wet markets. Tourism is at a standstill. Eating out is rare.

The cost of protecting against the virus will fall disproportionately on the poor. India has more than 100 million microfinance accounts, serviced in cash every week by gig-economy workers, who hawk vegetables on street corners or embroider saris sold in malls, among other things. Three out of four workers make a living by working casually for others or at their family firms and farms. Prolonged shutdowns will impair their ability to repay loans of 2.1 trillion rupees ($28.5 billion), putting the world’s largest microfinance industry at risk.

While many countries in Asia, Africa, and Latin America also use microcredit to grease consumption at the bottom of the pyramid, India’s banks and shadow financiers are already reeling under a severe crisis of confidence. Savers’ accounts recently had to be temporarily frozen at a major institution, making people anxious about the health of others. Microlenders have only now recovered from a nonperforming loan crisis sparked by Prime Minister Narendra Modi’s overnight 2016 ban on 86% of cash. More bad news would be hard to swallow.

With a population density three times China’s, India could be the next global hotspot for the virus, with an avalanche of cases, Bloomberg News reported Tuesday. As the currently low infection count rises with more testing, the curbs on economic activity that will be required to flatten the peak of the outbreak in a nation of 1.3 billion people may have to be harsh. Shutdowns could become as widespread and prolonged as they have in East Asia.

The forced social distancing is going to hit metropolises like Mumbai, New Delhi, Bangalore, Chennai, Hyderabad, and Kolkata and tourism centers like Goa. But it comes at a time when the rural economy, which accounts for 45% of gross domestic product, shrank in January for the seventh time in eight months, according to Bloomberg Economics’ output tracker. Should city jobs disappear, workers will move to villages, putting further strain on already weak rural wages. Anemic corporate credit and lackluster economic growth were already pulling each other down; a freeze in unsecured lending to the urban poor would make the situation a lot worse.

Tiny loans have their pitfalls. Financiers occasionally lose their heads and loosen their lending standards, leading to excessive borrowing and financial distress, which then becomes a political issue. Toward the end of last year, this problem surfaced in India’s tea-growing northeastern state of Assam, which had witnessed annual growth of 43% for seven years in loan values, before cash collections from small borrowers began to collapse.

Microfinance specialists like Bandhan Bank Ltd., with its near 20% return on equity, are profitable enough to deal with such occasional hiccups in pockets of a large market. However, a pandemic that cuts across regions could end up being a far more serious threat than a localized flood or a drought.

Even with interest rates being slashed around the world, the Indian central bank kept its powder dry Monday, though deep cuts are bound to be in the cards. Outright cash transfers from the government to the most vulnerable people would be more helpful. Incentivizing small borrowers and women’s self-help groups to sustain timely repayments would help the industry and keep credit channels for the poor open. A further loss of sanity in India’s financial system would be prevented.

Before the coronavirus, New Delhi’s budgetary situation was parlous. But a combination of interest rate cuts and plunging prices of imported crude oil will hopefully keep a lid on long-term bond yields. Stepping up borrowings to protect livelihoods should be the preferred strategy to deal with the virus. The informal nature of the economy means that relief can’t be targeted at firms — it has to reach households.

 

BLOOMBERG OPINION

Private equity has the cash, and it is king

By Nisha Gopalan

PRIVATE EQUITY FIRMS, sitting on a record $388 billion of dry powder in Asia, may be about to get their reward for patience. Cash is king as corporate finances are stretched by the coronavirus outbreak. Having sat on their hands for much of the past year in protest at unappealing valuations, the virus-induced stock market meltdown is creating a potential parade of bargains. Blackstone Group Inc.’s reported plans to acquire Hong Kong-listed property company Soho China Ltd. may be just the start.

High valuations are the number one complaint of private equity firms devoted to the Asia-Pacific region, according to a Bain & Co. report last week. Prices hadn’t budged significantly before the outbreak even as economic growth slowed in China, the region’s top destination for such investments. That’s because owners and entrepreneurs have been spoiled for choice: More than 3,000 private equity firms are jostling to find opportunities in Asia.

Deal prices eased only slightly last year, to a median ratio of 12.9 times enterprise value to Ebitda, from 13.3 times in 2018. Valuations remain above levels before 2017, according to Bain.

The MSCI Asia-Pacific Index has slumped 23% this year, opening up potential buyout targets in the public markets and dragging valuations of unlisted companies down in its wake. While tightening dollar liquidity threatens the financing that private equity firms need to make deals work, shrinking availability of credit may also weaken the reluctance of startup founders to yield control, which has been a hindrance to transactions, particularly in Southeast Asia.

Another positive from the market shakeout is a possible easing in the pace of activity by Masayoshi Son’s SoftBank Group Corp. That would come as welcome relief to fund executives who see the conglomerate’s $99 billion Vision Fund as pumping up private valuations and crowding out other investors. With SoftBank shares having fallen more than 40% in Tokyo from its February high, Son’s focus has switched to shoring up his own company’s valuation via a $4.8 billion share buyback announced last week. SoftBank is also grappling with challenges at portfolio companies such as WeWork and Indian start-up Oyo, as my colleague Tim Culpan has noted.

Not all private equity firms are positioned to profit from the rout. The biggest are in the strongest position. New York-based Warburg Pincus, for instance, raised $4.25 billion for a China-Southeast Asia fund in five months last year, exceeding its target. By contrast, smaller and newer funds spent an average of 22 months on the road and raised only 60% of their goals, according to data from Bain and Preqin.

Baring Private Equity Asia and TPG Capital are examples of other firms with well-known names and track records that have successfully raised multibillion-dollar funds. Blackstone closed a $7.1 billion real estate fund last year that was the biggest ever in that sector. And few would bet against KKR & Co. being able to complete a $12.5 billion fundraising that it started for its fourth Asian buyout fund in November. Meanwhile, sovereign wealth and pension funds started playing safe with their private equity investments a couple of years ago, leaving them with plenty of firepower.

The divergence between strong and weak will widen. Less financially robust private equity firms may struggle to rescue cash-strapped portfolio companies as credit tightens. Even bigger players are likely to reassess previously hot industries or regions. Money has poured into Vietnam and Southeast Asian neighbors on bets that they would benefit as the trade war forced a supply-chain shift out of China. The pandemic has put that thesis in doubt. “People are questioning the whole Southeast Asia-China nexus as a theme,” said Winston Ma, a former executive sovereign wealth fund at China Investment Corp. who’s now an adjunct professor at New York University.

Chinese consumer companies, a magnet for private equity money in the past couple of years, are also likely to suffer a loss of favor. Efforts to curb the coronavirus prompted restaurant chains from McDonald’s Corp. and Yum China Holdings Inc.’s KFC to shut outlets. While giants such as Citic Capital Holdings Ltd. and Carlyle Group LP, which bought most of McDonald’s China business in 2018, can ride out closures, other restaurants may not be so lucky.

Cash alone won’t guarantee success. As long as the pandemic lasts, it will be difficult for private-equity executives to visit potential investments, putting a damper on due diligence and limiting dealmaking. For every great deal made by a cash-rich private equity firm during a financial crisis, there are others that came a cropper. Finding the genuine bargains amid the rubble will be key.

 

BLOOMBERG OPINION

ONE Championship taking the COVID-19 challenge head-on

By Michael Angelo S. Murillo
Senior Reporter

THE CORONAVIRUS DISEASE 2019 (COVID-19) can either bring the best or the worst to an organization. And for ONE Championship there is no way to guide its affairs but to the former.

With its live events affected at the onset when cases of COVID-19 started to climb, Asia’s largest sports media property moved swiftly to calibrate its push, deciding to render their events behind closed doors and audience-free.

ONE founder and chairman Chatri Sityodtong said the move was not only to have “the show go on” but more importantly to provide inspiration to forge ahead to people in these trying times.

“For the fans at home around the world, the show will go on from the comfort and safety of your living room. ONE Championship will continue to thrill you with the greatest martial artists on the planet and inspire you with their incredible stories,” Mr. Sityodtong said in a statement.

The tack started on Feb. 28 with “ONE: King of the Jungle” at an audience-free Singapore Indoor Stadium with American Janet “J.T.” Todd becoming the new world atomweight kickboxing champion after defeating erstwhile champ Stamp Fairtex of Thailand.

Such a setup is to continue at least for the next three events of ONE set for April 24, May 1, and May 8, all to take place in Singapore where ONE Championship is headquartered.

The promotion is hoping to go back to a familiar setting with fans in tow when it comes back to Manila on May 29 for ONE Infinity 1 at the Mall of Asia Arena.

In addition to adjusting to how it shows are being presented in light of COVID-19, ONE is also taking the opportunity to find more ways to build on its content and offering.

For one, it recently partnered with American reality TV show The Apprentice for the future launch of The Apprentice: ONE Championship Edition under license from MGM.

“This brand-new concept brings a completely unique and original dimension to The Apprentice with the high-stakes drama of real-life business competitions, coupled with herculean physical challenges, featuring some of Asia’s top CEOs, the world’s greatest martial arts world champions, and A-list celebrities from across the continent,” said Mr. Sityodtong of the ONE edition of The Apprentice.

ONE is also shoring up its esports component, lining up packed event schedules for this year.

Mr. Sityodtong underscored that as an organization they are taking the threat of COVID-19 seriously, and is encouraging one and all to do the same.

But at the same he said they are not allowing it to stop them from moving on and seeing their group vision through but guided still by the prevailing conditions.

“This virus might be on the attack right now, but I believe in the power of the human spirit. Let’s Go! #WeAreONE,” Mr. Sityodtong said.

NCAA moves to officially terminate Season 95

By Michael Angelo S. Murillo
Senior Reporter

PUTTING the safety of its stakeholders above all else, the National Collegiate Athletic Association (NCAA) on Thursday officially terminated the already-suspended Season 95 over the coronavirus disease 2019 (COVID-19).

Met on Wednesday by way of teleconference, representatives of the member schools of the NCAA arrived at the decision to safeguard the well-being of all those involved in the staging of the sporting events as well as the fans of the country’s oldest collegiate league.

“The National Collegiate Athletic Association (NCAA) has announced through the Policy Board of Season 95 President Francisco Cayco of Season Host Arellano University that NCAA Season 95 is terminated. This was arrived at after consulting the Policy Board members,” the league statement, signed by Mr. Cayco, read.

“First and foremost that was considered was the safety of the athletes, students, fans, and officials. Eligibility matters of athletes being raised shall be discussed later,” it added.

The NCAA initially suspended some matches of different sports events in February as the threat of COVID-19 became imminent before suspending the season indefinitely early this month.

In issuing the suspension, the league said it would evaluate the situation, with the termination of Season 95 a likely possibility.

Affected sports were those scheduled for the second semester, which include indoor volleyball, football, lawn tennis, soft tennis, track and field, beach volleyball and cheerdance competition.

Apart from Arellano, member schools of the NCAA are Colegio de San Juan de Letran, De La Salle-College of Saint Benilde, Emilio Aguinaldo College, Jose Rizal University, Lyceum of the Philippines University, Mapua University, San Beda University, San Sebastian College-Recoletos, and University of Perpetual Help System DALTA.