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Mourning Kobe

As expected, the National Basketball Association remained transfixed in grief yesterday. The 12 teams that had matches on tap continued to mourn the loss of Kobe Bryant, honoring him in a variety of ways. The most common had them deliberately absorbing eight- or 24-second violations on their very first possession, in obvious reference to the numbers he wore throughout his 20-year career. Meanwhile, the Lakers — for whom he toiled in all his outings, and who then recognized his efforts by hanging the aforesaid numbers in the Staples Center rafters — wound up too shell-shocked to play, asking for, and receiving, approval to suspend a scheduled tiff with the Clippers.

That the NBA, loath to disrupt its timelines, agreed to the request reflects the impact of Bryant’s death on those whose lives he touched. News of the tragedy reached the Lakers late on their flight back to Los Angeles from Philadelphia, and raw footage of them disembarking from their private plane underscored the difficulties they faced in dealing with the loss. LeBron James, who had just overtaken him for third in the career points list and whom he congratulated in social media and over the phone, was particularly disconsolate and hard-pressed to process the development.

All the grief counselors the Lakers made available to players and employees aside, there can be no easy way to get over the vacuum Bryant’s untimely passing has created. The team was in such a depressed state that it went silent on Twitter until it announced the suspension of its game and saw fit to “thank you all for the tremendous outpouring of support and condolences.” Parenthetically, James, predisposed to making his sentiments known on social media, has stayed quiet. Sorrow has taken on all forms, and shown itself to have myriad faces.

Bryant was larger than life, and is now transcending death. Fans moved by the turn of events believe fate should now set them up for a fitting recovery. Perhaps James, Anthony Davis, and Company will be sufficiently motivated to lead the Lakers to a championship in his fallen brother’s name. It remains to be seen whether they, indeed, get to adopt the #mambamentality en route to a title. It would make for a fitting denouement. Yet, he was less about the result than the process. It’s certainly why all and sundry deem him to have gone too soon. He still had much to give, and his uncompromising giving of himself was as much a means as an end. Now he can’t, and, sadly, nobody else can in the way that he did.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

Shares decline further as investor concerns persist

PHILIPPINE SHARES continued their decline on Tuesday as investor concerns over the coronavirus outbreak from China persist.

The Philippine Stock Exchange index (PSEi) lost 118.93 points or 1.56% to close at 7,468.70 yesterday, while the broader all shares index fell 59.67 points or 1.32% to close at 4,435.67.

“Philippine shares tanked after more cases of the coronavirus piled up over throughout the day,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message.

AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in a report fears over the novel coronavirus continued to take a toll on global markets.

“Last night, US indexes suffered its biggest daily loss in over three months. There are now reports that China is suppressing the full extent of the virus’ severity to avoid a panic. Beijing has extended its New Year Holiday for another week to keep people at home to contain the spread of the virus,” Mr. Mangun said on Tuesday. “Here at the PSE, the main index took a beating and closed at the low for the day on low volumes and a lack of buyers despite not seeing a single case of the new virus on our shores.”

The Philippines is currently monitoring 27 people for the virus. The country’s immigration bureau has also temporarily suspended “visa upon arrival” issuances for Chinese nationals.

Reuters reported that the total death toll from the virus has reached 106, up from 81 the day before. The number of total confirmed cases in China surged to 4,515 as of Monday, from 2,835 the previous day.

“The lack of buying today allowed regular selling to take prices much lower. Selling pressure was normal but buyers weren’t willing to buy at current prices. This triggered a sell down across the board,” Mr. Mangun added.

“Most of the PSEi’s losses can be attributed to losses in large-cap companies… It closed a few points below the 7,475 key support level which signals more bearishness in the short term. Several second and third liners also took losses as investors rush to reduce risks.”

In the US, the Dow Jones Industrial Average lost 453.93 points or 1.57%, while the S&P 500 index fell 1.60% and Nasdaq Composite index fell 1.9%.

Back home, all sectoral indices declined, led by mining and oil which lost 163.20 points or 2.04% to close at 7,812.78. Industrials gave up 180.31 points or 1.87% to end at 9,414.67; property lost 63.59 points or 1.60% to 3,906.16; holding firms dropped 115.93 points or 1.58% to 7,180.52; services declined 18.48 points or 1.20% to 1,515.86; and financials shed 11.26 points or 0.62% to 1,803.12.

Decliners outnumbered advancers, 121 to 65, while 42 names closed unchanged.

Value turnover stood at P4.44 billion on Tuesday as 579.05 million shares changed hands, higher than Monday’s P4.30 billion worth.

Foreigners turned bearish as net foreign selling totalled P544.47 million, a reversal of the previous day’s net purchases worth P66.68 million. — JPI with Reuters

Peso strengthens as oil prices decline amid China virus fears

THE PESO appreciated on Tuesday as oil prices went down amid worries related to the coronavirus’ spread and with investors going profit taking.

The local unit finished trading at P50.75 per dollar on Tuesday, strengthening by 8.50 centavos from its P50.835 close on Monday, according to data from the website of the Bankers’ Association of the Philippines.

The peso opened at P50.90 against the greenback. The peso’s weakest point for the day was at P50.925 a dollar, while its intraday best was at P50.74.

Dollars traded declined to $778.10 million from $787.95 million on Monday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso drew its strength from lower global crude oil prices.

“The peso exchange rate again strengthened, among the strongest in nearly two weeks, amid relatively lower global crude oil prices at three-month lows that reduce the country’s oil imports and narrow the trade deficit,” he said in a text message.

Mr. Ricafort added that the decline in global oil prices were due to “concerns over the adverse effects of the coronavirus in terms of slower economy in China and in other parts of the world.”

Reuters reported that Brent crude inched down by four centavos at $59.28 at around 05:40 GMT. A three-month low of $58.50 was seen last Monday as a global sell-off of riskier assets was triggered by the virus outbreak.

Oil investors are worried about the impact of travel advisories, other restrictions, and any sizable impact on growth in the world’s second-biggest economy and elsewhere may result to lower demand for crude and its products.

The US has already issued warning against travel to China and other countries as death toll related to coronavirus have reached 100 people.

Meanwhile, a trader attributed the local unit’s appreciation to some profit taking.

“The peso appreciated from profit taking by market participants following the latest strengthening of the greenback,” the trader said in an e-mail.

For today, both Mr. Ricafort and the trader said the peso could play around P50.65 to P50.85 per dollar. — L.W.T. Noble with Reuters

Quick visas stopped amid outbreak in China

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

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

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

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

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 20th 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

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

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

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

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.

How efficient is the Philippines’ workforce?

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.”

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