Quick visas stopped amid outbreak in China

January 28, 2020 | 7:53 pm

THE Bureau of Immigration has stopped issuing Philippine visas on demand to Chinese tourists at the Manila airport amid an outbreak of a new strain of coronavirus that has killed dozens in China.

“The Civil Aeronautics Board has already suspended direct flights from Wuhan province,” Immigration Commissioner Jaime H. Morente said in a statement on Tuesday. “We are now temporarily suspending the issuance of visas upon arrival for Chinese nationals to slow down the influx of group tours.”

More than 4,000 people, mostly Chinese, have been infected with the new virus, while more than a hundred people have died, World Health Organization (WHO) Country Representative for the Philippines Rabindra Abeyasinghe said at a briefing.

Chinese nationals have not necessarily been banned from coming to the Philippines, Mr. Morente said.

“We have not received any directives imposing policy changes on Chinese nationals,” he said. “But we are taking this proactive measure to slow down travel, and possibly help prevent the entry of the 2019-nCov,” he added, referring to the new coronavirus strain.

The Department of Health said there were 24 Chinese nationals from Wuhan, China under investigation in the country, but there are no confirmed cases yet of the new strain in the country.

Confirmed cases were recorded in Thailand, Japan, South Korea, United States, France, Taiwan and Vietnam, among others countries.

The bureau started the visa facility in August 2017 to attract more Chinese tourists and businessmen.

Under the policy, Chinese nationals may be granted a 30-day visa at the airport that can be extended to six months.

The Immigration bureau earlier tightened the issuance of visas to Chinese tourists by prohibiting extensions.

The bureau noted that Taiwan had canceled the permits of 429 people in 24 tour groups from Wuhan, China, citing a report by Taipei Times.

Mr. Morente said the bureau would like to help the Bureau of Quarantine and Health department in preventing the entry of the virus.

Senator Francis N. Pangilinan said the government should “preemptively ban” visitors from Wuhan, China.

“While Philippine health authorities have not confirmed a case of the rapidly mutating deadly disease, it is best for them to be more proactive especially since the country may not be able to contain a full-blown epidemic,” he said in a statement, noting that authorities have been busy helping victims of Taal Volcano’s eruption.

He also said 1.63 million tourists from mainland China visited the country from January to November.

Meanwhile, the Philippine Coast Guard said two ships from China had docked at the South Harbor port in Manila.

A vessel from Lianyungang, Jiangsu, China with 20 crew members arrived on Jan. 27, while a cruise ship from Hong Kong with 778 passengers arrived on Jan. 28, it said in a statement. The cruise ship was scheduled to leave for Subic later in the evening.

Both ships “were cleared and declared safe by the Bureau of Quarantine during mandatory inspections, the Coast Guard said.

Albay Rep. Jose Ma. Clemente S. Salceda said he would file a bill that seeks to create a Center for Disease Control under the Health department that will focus on emerging diseases.

The House of Representatives summoned health authorities to a “question hour” about the virus.

Also yesterday, Foreign Affairs Undersecretary Brigido J. Dulay said the government would help Filipinos in China who wish to come home.

The government could repatriate Filipinos in Hubei province and Wuhan City, where the new coronavirus strain originated, he said at a separate briefing. — Vann Marlo M. Villegas and Gilian M. Cortez

House body defers Cha-Cha report

January 28, 2020 | 7:52 pm

A HOUSE body has deferred a committee report on proposed changes to the 1987 Constitution as it considers other proposals on federalism.

“We hold in abeyance the approved committee report on the four proposed amendments to be able to consider the proposals of the inter-agency task force on federalism and constitutional amendments,“ Cagayan de Oro Rep. Rufus B. Rodriguez said at a hearing on Tuesday.

A task force created to propose changes to the 1987 Constitution earlier sought to remove economic restrictions in the Charter, including the ban on foreign investment in some industries.

Opening the Philippine economy to foreigners would create jobs and lift more people out of poverty, the Inter-Agency Task Force on Constitutional Reform said last month.

The Philippines is at the bottom of Southeast Asian countries in terms of foreign direct investment, and President Rodrigo R. Duterte wants to change this by changing the constitution the task force said.

The Finance department wants to eliminate all references to citizenship restrictions with respect to industries such as mass media and advertising, educational institutions, practice of professions, natural resources, mineral wealth and public utilities.

The task force, however, wants to retain the prohibition on foreigners to own land.

The agency earlier said at least 256 local chief executives have expressed their support for Mr. Duterte’s push to change the 1987 Charter. The task force also obtained 22,469 signatures from various citizens who support charter change.

The task force has submitted its second set of proposed changes to the Charter to the House constitutional amendments committee. It wants to strengthen political parties, ban turncoats and political dynasties as part of charter change.

The task force said the anti-political dynasty provision of the 1987 Constitution should be made self-executing. It also wants to create a democracy fund for campaign finance reforms, and extend the terms of local government officials to five years with one re-election.

The second set of proposed changes cover political and electoral reforms to strengthen democracy and improve governance. It also seeks to introduce equality provisions to ensure more funds flow to the provinces.

Mr. Duterte created the task force, which is headed by the Interior and Local Government secretary, and is composed of 15 government agencies.

Mr. Rodriguez said task force wanted to brief all congressmen about their proposed constitutional amendments. The meeting was set for Feb. 4, he said. — Genshen L. Espedido

Gov’t to firm up proposals on US military deal

January 28, 2020 | 7:52 pm

A CABINET cluster will meet on Friday to finalize recommendations on a plan to end an agreement with the US on the deployment of troops and equipment for war games, Justice Secretary Menardo I. Guevarra said on Tuesday.

A meeting with the Presidential Commission on Visiting Forces was held on Monday to discuss the proposals, which officials have yet to firm up, he said in a group message.

President Rodrigo R. Duterte has ordered government lawyers to expand their study of a plan to end the visiting forces agreement with the US.

Mr. Duterte last week asked the US government to reverse its decision to cancel Senator Ronald M. dela Rosa’s US visa, giving it a month-long ultimatum.

Mr. Dela Rosa, a political ally, last week said the US embassy had canceled his visa. Mr. Duterte’s former police chief led the government’s deadly war on drugs that has killed thousands before he became a senator.

He was also considered to be among those responsible for the detention of Senator Leila M. de Lima, a staunch critic of Mr. Duterte’s anti-illegal drug campaign.

Mr. Guevarra earlier said they would study the impact of terminating the VFA on foreign relations, on an enhanced defense cooperation agreement with the US and the Mutual Defense Treaty between the two countries.

A Cabinet cluster made up of the Justice, Defense and Foreign Affairs departments, Armed Forces, and National Bureau of Investigation would assess the deal, he said.

The Senate foreign relations committee earlier said it would study the planned termination.

The chamber would summon officials from the Foreign Affairs and Defense departments to shed light on the status of the VFA, Senator Aquilino L. Pimentel III told dzBB radio on Sunday.

Among other things, the deal allows the US government to retain jurisdiction over American soldiers accused of committing crimes in the Philippines, unless the crimes are “of particular importance” to the Southeast Asian nation. — Vann Marlo M. Villegas

Bicol infra firm partners with Canadian company for countryside water projects

January 28, 2020 | 7:50 pm

ALBAY-BASED Verzontal Infrastructure Corp. (VIC) has partnered with Canadian firm Filtrum Construction for water supply and wastewater treatment projects in rural areas. “As we continue our business venture to the water and wastewater industry, we recognize the opportunity to expand and improve our services by leveraging on international partners and sharing insights that could potentially change the wastewater system in the country,” VIC Chairman Dennis G. Macandog said in a statement. Aside from construction and engineering, VIC also has subsidiaries involved in real estate development, construction supply, and renewable energy in different parts of the country. The company told BusinessWorld the partnership with Filtrum, signed October last year, is “still in the planning stage, which includes the identification of high potential sites/provinces for sewage treatment plants as well the projects and areas on where best to launch the full operation of the joint venture.” Filtrum, headquartered in Quebec, is a water and wastewater specialist. “The direction of the joint venture is to have projects in the countryside, nationwide,” VIC said.

Bohol spurs farmers to keep ube industry alive with annual festival

January 28, 2020 | 7:49 pm

Ube varieties and products on display at the Ubi Festival, on from Jan. 28 to 31, at the APC in Tagbilaran City. — *GOV. ART YAP FB PAGE*

BOHOL — popular for its chocolate hills, tarsier, beaches, and peanut kisses — is celebrating the Ubi Festival this week in honor of the province’s inconspicuous high-value crop, the yam. The Office Provincial Agriculturist (OPA), lead organizer of the event, said the current local government under Governor Arthur C. Yap and Vice Governor Rene L. Relampagos have identified the ubi, also called “ube,” as a priority sector. OPA, in a statement, said the festival, now on its 20^th year, is a way of “encouraging” farmers to sustain the industry. This year’s festivities highlights the importance of the next generation of farmers and the industry’s potential contribution to tourism-related income. The Bohol tourism office says the ube crop (Dioscorea alata L.), with its different varieties including the native kinampay, is considered as the “agro-historical-geographical-religious” symbol of Bohol. The Ubi Festival is ongoing at the Bohol Agricultural Promotion Center (APC) in Tagbilaran City until Jan. 31. Ube is part of the Department of Agriculture’s list of high-value crops, and the kinampay is considered as the “Queen of Philippine Yams.” The crop’s roots are processed and used in various food products, while the skin serves as a raw material for food coloring. — MSJ

Authorities refute social media post on nCov-infected Thai patient at SPMC

January 28, 2020 | 7:49 pm

MEDICAL AUTHORITIES have quashed reports shared on social media about a supposed patient from Thailand infected with the novel coronavirus (2019-nCoV) who has been admitted at the Southern Philippines Medical Center (SPMC) in Davao City. “Nope. We don’t have confirmed case of coronavirus and no patient admitted for isolation,” SPMC Chief of Hospital Leopoldo J. Vega told BusinessWorld. Mr. Vega also gave reassurance that protocols are in place to ensure the safety of hospital patients and that an isolation facility for emerging infections is ready. The Davao City government, in a statement, said they have also extended assistance to the Department of Health’s (DoH) quarantine personnel to ensure tighter safety measures, especially at the Davao International Airport. DoH-Davao Assistant regional Director Lenny Joy Rivera, meanwhile, said the airport is equipped with a thermal scanner that detects the temperature of all arriving passengers. There is still no confirmed case of nCov in the country. — Maya M. Padillo

DA-Davao aims for rice self-sufficiency in region

January 28, 2020 | 7:48 pm

THE DEPARTMENT of Agriculture-Davao (DA-11) is aiming for rice self-sufficiency in the region, where banana and coconut are among the major crops. DA-11 Regional Director Ricardo M. Oñate Jr. said they are initiating programs to help make each town develop rice production areas that can meet local demand. “We will not be relying much on the import. We should not abandon our own rice,” Mr. Oñate said in a forum last week. The DA-11 plans to help farmers form cooperatives for easier access to financial and technical assistance from government, including the annual P10-billion Rice Competitiveness Enhancement Fund (RCEF) provided under Republic Act 1123, the Rice Tariffication Law. Data from DA-11 show 23 existing farmer-associations are expected to receive P67.6 million worth of machineries that will be purchased through the RCEF. Another set of machineries costing P104 million are awaiting approval.

DAVAO DEL NORTE TOWNS
Mr. Oñate said among the first towns they have started discussion with are Sto. Tomas and Carmen in Davao del Norte province, where land for rice production have already been allocated. Another town, Asuncion, is also already looking for an area for the project. In a press statement last week, the provincial government of Davao del Norte said it would look at buying palay, or unmilled rice, from farmers to increase farmgate prices to P19 per kilo from the current P12 as well as to ensure sufficiency of local supply. Mr. Oñate said the province is also planning to set up its own rice production complex, similar to the one in Matanao, Davao del Sur. — Carmelito Q. Francisco

Danger zone

January 28, 2020 | 7:47 pm

Members of the Philippine Coast Guard (PCG) prepare on Tuesday 100 bouys that will be placed around Taal Lake to mark the seven-kilometer danger zone around the restive Taal Volcano. The danger zone, defined by the Philippine Institute of Volcanology and Seismology, has been declared as an off-limits area. On the same day, PCG’s Task Force Taal also evacuated residents on the island around the volcano who returned to their homes that morning despite the lockdown order.

PHL labor productivity lags in region

January 28, 2020 | 12:32 am

By Marissa Mae M. Ramos
Researcher

PRODUCTIVITY among the Philippines’ employed labor force amounted to $20,671 per worker in 2019, an improvement from the previous year but still lagging behind regional peers such as Malaysia, Thailand, and Indonesia, data from the World Bank’s World Development Indicators database showed.

Labor productivity is measured in 2011 international dollars, or the number of an economy’s currency units required to buy the same amount of goods and services in the local market as would a US dollar be able to buy in the United States.

World Bank data showed the country’s labor productivity ratio, as measured by the gross domestic product (GDP) to its total employed population, was 3.8% more in 2019 from $19,918 in 2018. However, the pace of growth was slower than the 4.2% logged in 2018.

The global average GDP per worker was $37,739 (2.7% more than the previous year) and that of the East Asia and the Pacific (EAP) was $34,569 (up 4.6%).

The country’s productivity ratio trailed that of Southeast Asian economies such as Brunei ($170,536), Singapore ($153,852), Malaysia ($60,187), Thailand ($31,007), and Indonesia ($25,805).

On the other hand, it ranked ahead of Myanmar ($14,095 GDP per worker ratio in 2019), Laos ($13,353), Vietnam ($11,757), and Cambodia ($7,334).

In a mobile message, Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) spokesperson Alan A. Tanjusay attributed the Philippines’ below-average labor productivity in the region to the “poor and inadequate mass transport system,” the “epidemic practice” of hiring workers in the short-term, meager wages, rising taxes, and ”poor compliance and enforcement” of labor laws and regulations.

Employers Confederation of the Philippines (ECoP) President Sergio R. Ortiz-Luis, Jr. noted Filipinos abroad have “high productivity” and were sought after by foreign employers.

“The reason the Philippines is still lagging behind its ASEAN peers is the environment and labor framework in the country… do not encourage higher productivity,” he said in a phone interview, adding the minimum wage left workers “with no incentive to work hard.”

“In a country where job creation should be a priority, less interference, along with more competition, should be encouraged,” he said.

ALU-TUCP’s Mr. Tanjusay said firms should raise wages as well as provide additional perks such as vacation or travel benefits to increase labor productivity. He also called on the government to address the traffic problem, enforce labor laws and keep the prices of basic goods and services “at manageable levels.”

European Chamber of Commerce of the Philippines (ECCP) President Nabil Francis said investors looking for a competitive labor force are attracted to the Philippines’ “young, dynamic, and highly literate workforce.”

“To ensure that the rewards of this demographic sweet spot be realized, the ECCP supports measures that will promote reinforcement of skills and capability development, enactment of an apprenticeship reform bill, and incentivizing enterprises which invest in competitive training and upskilling programs,” he said in a phone message.

For his part, University of Asia and the Pacific Economist Victor A. Abola said that the country “needs to improve our productivity since we’re still below the (regional) average.”

In an e-mail interview, Mr. Abola said the Philippines needs to “improve agricultural productivity” through more irrigation facilities and better Public-Private Partnership (PPP) programs; foster industrial development by providing incentives to train workers and to “bring back experienced and highly skilled engineers and technicians”; improve infrastructure; and “reduce trade deficit” to heighten “domestic resource and labor use.”

How efficient is the Philippines’ workforce?

January 28, 2020 | 12:32 am

PRODUCTIVITY among the Philippines’ employed labor force amounted to $20,671 per worker in 2019, an improvement from the previous year but still lagging behind regional peers such as Malaysia, Thailand, and Indonesia, data from the World Bank’s World Development Indicators database showed. Read the full story.

Central bank to ‘go slow’ on interest rate cuts

January 28, 2020 | 12:31 am

BANGKO SENTRAL ng Pilipinas (BSP) Governor Benjamin E. Diokno said monetary policy easing will not be as “aggressive” this year compared to 2019 and will be delivered at a slower pace as inflation is expected to stay within target, and with other data showing the economy remains strong.

In an interview with the ABS-CBN News Channel (ANC) on Monday morning, Mr. Diokno said they have “a lot of room” for further monetary policy adjustments this year after the 75 basis points (bps) in cuts it implemented in 2019.

However, he said the central bank will “go slow” on easing benchmark rates this year and will remain data-dependent.

The central bank’s policy-setting Monetary Board (MB) will have its first meeting for this year on Feb. 6.

“Maybe not as aggressive as last year because we are in a very nice place right now. We have low unemployment… I’m optimistic that the economy [will grow] between 6.5-7% this year and we even have an inclusive growth. As you can see, the data says that in 2015, the poverty incidence was around 23.3%… Now it’s down to 16.6% in 2018,” Mr. Diokno said during the interview. “We’re doing great. We’re in a very nice place right now, so we’ll go slow in our monetary easing.”

The BSP’s 75 bp worth of policy rate reductions last year partially unwound the 175 bp in hikes fired off in 2018 amid rising inflation.

Mr. Diokno added that the government has a lot of fiscal space with a “financeable” budget deficit, which is capped at 3.2% of gross domestic product (GDP) this year, as the ongoing tax reform program will be able to increase state revenues.

Meanwhile, Mr. Diokno said they also see “some area for cutting” banks’ reserve requirement ratios (RRR).

The BSP trimmed the RRR of some banks by a total of 400 bps last year. The reserve ratio for universal and commercial banks now stands at 14%, while those for thrift and rural banks are at five percent and three percent, respectively.

Sought for comment, Bank of the Philippine Islands (BPI) Lead Economist Emilio S. Neri said the MB will likely cut the BSP’s overnight reverse repurchase (RRP) rate during their meeting next month and pause the following month if inflation remains on track.

“While we don’t recommend it, we think the Monetary Board will cut the RRP on their Feb. 6 meeting as January 2020 inflation will still remain within target. We believe they may pause on their March 19, 2020 meeting, however, as the trajectory of more recent inflation prints point to a possible breach of the target this year,” Mr. Neri said in an e-mail.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the Monetary Board will likely resume easing at its February meeting on the back of benign inflation and the lower-than-expected GDP growth rate of 5.9% logged in 2019.

“However, the January 2020 inflation number, slated to be released next week, will have to be importantly plugged in with the decision to stay or cut further. Initially, we were looking at volatile global oil prices and the potential impact of a bigger eruption of the Taal Volcano as potential upside risks to the inflation view.” Mr. Asuncion said.

In a note to journalists, Nicholas Antonio T. Mapa, senior economist at ING Bank NV-Manila, also said a 25-bp cut is possible in the February meeting, followed by another reduction of the same magnitude at the MB policy meeting in May.

Meanwhile, as for banks’ reserve ratios, both BPI’s Mr. Neri and UnionBank’s Mr. Asuncion said another two-percentage point reduction can happen this year.

Mr. Neri said the banks’ loan portfolio returning to double-digit growth served as a “sign that the RRR cuts are leading banks to lend more.”

INFLATION
The central bank chief said they remain confident that the headline inflation rate will average at around three percent for the year, which will settle at the midpoint of the government’s 2-4% target range.

“So our projection is that inflation will be in the neighborhood of 3% this year, plus or minus 1% and even next year. We’re very confident that what we’ve seen in 2018 will not recur this year and next year,” he said.

Amid fears that Taal Volcano’s recent eruption may cause food prices to spike, Mr. Diokno said such natural disasters do happen and said “we should not panic.”

Headline inflation in December picked up to 2.5% from the previous month’s 1.3%, bringing the full-year average to 2.5%, within the central bank’s 2-4% target range for the year but a tad higher than its forecast of 2.4%.

January inflation data will be released on Feb. 5, a day before the BSP’s Monetary Board meets to review their policy settings.

BPI’s Mr. Neri said the inflation rate for rice will likely pick up in April due to base effects. If so, he said this could trigger another reduction in policy rates but warned that “this could be risky.”

For UnionBank’s Mr. Asuncion, the impact of the Taal eruption as well as the volatility of global oil prices “have been relegated to low risks.”

The alert level status of Taal Volcano was reduced to level three on Sunday from the level four status maintained for two weeks straight or since its eruption on Jan. 12. — Beatrice M. Laforga

Int’l retailers continue to flock to PHL

January 28, 2020 | 12:30 am

INTERNATIONAL RETAILERS continued to flock to the Philippines last year, eager to sate Filipinos’ appetite for new brands and restaurants, according to a report by the local unit of real estate services firm Cushman & Wakefield.

In its January report entitled “How Global Brands are Shaping the Metro Manila Retailer Landscape,” Cushman & Wakefield Phils., Inc. said 34 new foreign brands entered the country between January and November 2019. This brought to 102 the total number of international brands that have set up shop in the Philippines since 2017.

“One of the segments that is directly benefiting from the sustained growth of the Philippine economy is the retail sector. Evidently, amidst slowdown in retail activities in other parts of the world,… foreign retailers continue to venture and thrive in the local retail scene,” it said.

Most of the new brand entries are mid-tier food and beverage (F&B) retailers, Cushman & Wakefield noted.

Among these are American brands such as Shake Shack, Popeyes Louisiana Kitchen, and Panda Express, as well as Japan’s Menya Kokoro, FRNK, and Shari Shari Kakigori House. Taiwan’s The Alley, Hong Kong’s Hui Lau Shan, and Sri Lanka’s Ministry of Crab also recently set up shop in the country.

“With competition, reinforced by the advent of strong concepts… the food services market remains attractive to international brands attributable to the country’s ideal demographic make-up,” Cushman & Wakefield said.

Data from Cushman & Wakefield Research showed food and beverage brands accounted for 68% of new brands that entered the Philippines in January to November 2019, followed by clothing and apparel brands at 15%.

The Philippines has also attracted a growing number of Asian retailers, particularly from Japan (17 brands) and Singapore (12 brands).

“Asian brands are strengthening their grip in the food services industry as they focus on bringing F&B concepts in the market,” Cushman & Wakefield said.

MORE MALLS
International retailers are eager to take advantage of the Philippines’ continued economic growth, young population, growing middle class, improving ease of doing business and booming tourism, Cushman & Wakefield said.

Also, shopping mall space is projected to hit 9.8 million square meters (sq.m.) in 2022 through expansions in the so-called Bay Area that covers Manila, Pasay and Parañaque. As of fourth quarter of 2019, the supply of mid- to high-end malls in Metro Manila stood at 8.9 million sq.m.

“The expansion of shopping mall developments in Bay Area is also in response to the vibrant real estate activities brought about by the rapid growth of real estate demand coming from the Philippine Offshore Gaming Operations (POGO) and the IT-BPM sectors,” Cushman & Wakefield said.

Monthly rent in key malls in Metro Manila is also relatively cheaper than its regional peers at $48 (about P2,440) per sq.m., Cushman & Wakefield said. To compare, monthly mall space rent in Indonesia is $70 per sq.m.; $127 per sq.m. in Thailand; and $165 per sq.m. in Vietnam.

Moving forward, Cushman & Wakefield said it is important for retailers to continue innovating to remain relevant, offering various activities in shopping malls.

“The strong economic fundamentals of the Philippine economy are seen to sustain the growth trajectory of the major demand drivers of the retail sector. The local retail scene will also continue to defy the global retail headwinds… as the Filipinos see retail establishments to be more than a place to shop. Shopping centers in the country had become essential structures also for socialization, leisure, and entertainment,” it said.

“However, the challenge would be on how the retailers will be able keep up with the increasing competition with new concepts incessantly being introduced in the market and how they can satisfy the increasing complexity of consumer preferences,” it added. — Denise A. Valdez