BusinessMirror MAy 12, 2016

VP HOPEFULS SQUARE OFF IN DEBATE

“IF we go forward pretending that we’re unified, then we are going to be at half-strength this fall.”—House Speaker Paul Ryan to The Journal Times newspaper, defending his stunning decision last week to refuse to endorse Donald Trump, his party’s presumptive presidential nominee. AP

MEDIA PARTNER OF THE YEAR

“WHAT this law does is inflict further indignity on a population that has already suffered far more than its fair share. This law provides no benefit to society, and all it does is harm innocent Americans.”—US Attorney General Loretta Lynch, after the Justice Department sued North Carolina over the state’s bathroom law, impacting transgender people, after the governor refused to back down. AP

“I PARKED and went into the school which has a safe room. There were kids and elderly people, dogs and cats, babies. It was like the whole town was there.”—Dana Lance, who took shelter after a tornado emergency was declared in Roff, Oklahoma. AP

BusinessMirror

UNITED NATIONS

2015 ENVIRONMENTAL MEDIA AWARD LEADERSHIP AWARD 2008

A broader look at today’s business

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Thursday, May 12, 2016 Vol. 11 No. 215

CAPARAS AGREES WITH SINGSON THAT MAKATI’S ORDINANCE IS UNCONSTITUTIONAL

DOJ: Makati’s 25% bond for infra contractors illegal

‘U

B J R. S J

@jrsanjuan1573

NFAIR and oppressive” were the words used by the Department of Justice (DOJ), when it issued a negative opinion on Makati City’s practice of requiring contractors to deposit 25 percent of an infrastructure project’s total cost as cash bond before they can secure the necessary local permits.

Ordinance 2005-018

The local law that requires infra contractors in the city to post cash bond equal to 25% of the project cost In his legal opinion obtained by the BusinessMirror, Acting Justice Secretary Emmanuel L. S “DOJ,” A

INSIDE

CHANGE IS COMING, BUT CAN THE NEW PRESIDENT HANDLE IT?

P.  |     | 7 DAYS A WEEK

Change with the same face Free Fire Teddy Locsin Jr.

I

STRONGLY discourage advising any government-in-the-making, not least because advice is rarely taken, it is consistently ignored and rightly passed over.

“After all, it was I who was elected president,” he will say. “I want your advice, I won’t ask for it. What for? I ran on a platform of promises, none of them was qualified or conditioned upon advice that might be given after I got elected. As for consulting experts, I should have done that before I promised what I should not deliver on second thought. Besides, there are no experts; except those who became experts because of the problems they created and are trying to solve. I will never ask advice from those with the temerity to offer it. But I will listen to reason.”

C  A

BROADER LOOK

AQUINO, DUTERTE FORM GROUP FOR SMOOTH TRANSFER OF POWER

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B D C

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candidate Mayor Rodrigo R. Duterte, as business resumes in his hometown of Davao City in southern Philippines on Wednesday. Duterte has widened his lead in unofficial tally, but still refuses to claim victory. AP/BULLIT MARQUEZ

BACK TO WORK A RUSTY Masters champion Danny Willett gets back to work—not with his golf clubs but with a pen. AP

BACK WORK

Sports

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| THURSDAY, MAY 12, 2016 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao Asst. Editor: Joel Orellana

to

BusinessMirror

It’s time to get back to work. A lot of work. Danny Willett only has a two-week break scheduled twice through October, and he could play as many as 15 times over the next 23 weeks.

AUSTRALIAN Rio. AP

Marc Leishman says he is not competing in

‘It won’t hurt’ P

ONTE VEDRA BEACH, Florida—Professional Golfers’ Association (PGA) Tour Commissioner Tim Finchem doesn’t believe that five players skipping the Olympics will hurt golf’s chances for staying on the program beyond 2020.

Golf returns to the Olympics this year in Rio for the first time since 1904. While it is set for 2020 in Tokyo, the International Olympic Committee (IOC) will vote in 2017 whether the sport stays on the program beyond that.

Adam Scott and Marc Leishman of Australia, Charl Schwartzel and Louis Oosthuizen of South Africa and Vijay Singh of Fiji have said they will not compete, mostly citing a busy summer schedule of major events. Leishman was concerned about the Zika virus because his wife, who nearly died last year from toxic shock syndrome, has a susceptible immune system.

“If you look at the broader things that the IOC looks at from a sport...the reason they like golf is it’s growing around the globe, it’s bringing young people to the game,” Finchem said on Tuesday. “It’s one of the few sports that’s actively very popular on every continent—just to different levels, but reasonably popular on every continent. So it’s truly a global sport, and it’s a sport that works quite well with sponsorship, and they’re in that business.

“I don’t think any of those variables are going to change after this year,” he said. “I think we’ll be in good shape.”

Finchem said it would have helped golf’s chances had the IOC voted for this year’s games to be held in Chicago instead of Brazil, because “Rio is not a golf country.” Without a suitable golf course in Brazil, Arch. Gil Hanse designed one for the Olympics that was behind schedule because of legal fights over property ownership and environmental concerns.

Finchem, who is on the International Golf Federation (IGF) board, said the tour has talked to all five players who have opted not to play and said it was a combination of issues, starting with a tight golf season. To clear room for the Olympics, the PGA Championship has moved to the end of July, meaning two majors will be held in the month before the men’s competition starts in Rio. He also said the Zika virus might have played a role, and some players haven’t made the Olympics a priority just yet.

“The easy thing to do would be to say, ‘Well, let’s just pass this year. We’ll go to Tokyo.’ So I think it’s some combination of things, really,” Finchem said. “I don’t want to pain the players as making these decisions based on any one thing. I think they’re being legitimate when they have said what they have said. But I do think we have had a combination of things that have created some issues this year.

“But we seem to be doing OK, and I think we’re going to have a superb Olympics once we get down there.”

Ladies PGA Tour Commissioner Mike Whan, also on the IGF board, said the women have embraced a return to the Olympics.

He said five or six players have asked him about the Zika virus, though none has said she is not planning to play because of it.

“I don’t know any player who’s even said, ‘I’m on the fence,”’ Whan said. “I’ve got plenty of players at the age where this could be concerning, but I haven’t heard any player say they’re interested in stepping out.” AP

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B D F The Associated Press

ONTE VEDRA BEACH, Florida—Masters champion Danny Willett has been away from golf for a month and has been working harder than ever.

Not with his golf clubs but with a pen.

The last box of some 200 yellow Masters flags arrived on Tuesday for Willett to sign for players and charities, bringing the total to what manager Chubby Chandler estimated at just short of 1,000 since the 28-year-old from England slipped on a green jacket.

As for the golf? Not so much.

He played 18 holes with his friends at home on Saturday. He played nine holes on Monday when he showed up at the TPC Sawgrass for The Players Championship.

“Only time I’ve been on the golf course in the last month,” said Willett, who lives in a house he converted from an old mill behind Lindrick Golf Club, best known as hosting the 1957 Ryder Cup that produced a rare—at the time, anyway—victory for Great Britain and Ireland.

“A little rusty,” Willett said. “Try and get some work

DUTERTE FEVER Customers walk in a shop selling souvenir items, such as commemorative car plates, T-shirts, stickers of leading presidential

“It’s still not sunk in, to be honest,” Willett said. “I just kind of watched it...I don’t know if I felt like I had to. I just wanted to see it back over, I guess, and just see some of the things that we did. Four-and-a-half hours go pretty quick when you’re playing, and Sunday went exceptionally fast. So I think it was just to actually watch it back and slow it down, just take in what we achieved.”

Willett plans to bring his green jacket with him wherever he plays, and with it comes expectations he hasn’t felt since he was the world’s No. 1 amateur in 2008. The next few years will decide whether he’s more of a curiosity than a celebrity.

Slowed by nagging back problems, the Masters was only his fifth victory worldwide. Then again, he was hardly a surprise. Willett was No. 12 in the world when he won the Masters, after winning in Dubai earlier in the year and in Switzerland last year.

“I thought at the beginning of the year he would win one of the next six majors,” Chandler said. “And I think he’ll win another in the next four. He has a proper short game. He has the head, the heart and the [guts].

That’s a good combination.”

It’s time to get back to work. A lot of work.

Willett only has a two-week break scheduled twice

ITALIAN ATTACK P

RAIA A MARE, Italy—Italian rider Diego Ulissi won the fourth stage of the Giro d’Italia on Tuesday by attacking on a climb shortly before the finish, while Tom Dumoulin crossed second to reclaim the overall lead.

Returning to Italy after three stages in the Netherlands, Ulissi put an Italian stamp on the race after the Dutchman Dumoulin took the opening time trial and Marcel Kittel of Germany won the first two sprints.

Riding for the Lampre team, Ulissi stood up out of his saddle and surged ahead on the steepest section—at a gradient of 18 percent—of the

through October, and he could play as many as 15 times over the next 23 weeks.

That doesn’t include the FedEx Cup playoffs, even though he is eligible by taking Professional Golfers’ Association (PGA) Tour membership. There were other commitments he made in Europe, and Willett won’t cancel those. Not this year. He would play the FedEx Cup finale at the Tour Championship only if he can stay in the top 30 without competing in the opening three playoff events. That’s a tall order because Willett has only four events left—The Players and three majors—to earn points and he currently is at No. 34.

He leaves Florida for Ireland and then England. He has a three-week stretch of the US Open, Germany and the French Open. Then he has three big events in five weeks—the British Open, PGA Championship and the Olympics.

It starts at Sawgrass with a lot of rust and plenty of expectations—at least more than he had before he owned a green jacket.

“I’m not really too fussed about what everybody else thinks,” Willett said. “I’m trying to do my bit. And what I’ve done over the last 18 months, two years, it’s proved to myself that I can do some pretty special things.”

ITALIAN rider Diego Ulissi wins the fourth stage of the Giro d’Italia. AP

work,” Ulissi said.

“Valerio Conti managed to create the small group and I rode away knowing that, on the final descent, the peloton of chasers would go even faster than me. I gave it everything I had. It’s a huge emotion.”

Dumoulin, of Team Giant-Alpecin, holds a 20-second lead over Bob Jungels, with Ulissi third overall, also 20 seconds behind.

“It’s great to get the Maglia Rosa back,” Dumoulin said of the race leader’s pink jersey. “That’s what we were working for today. We sent Georg Preidler into the last breakaway. It would have been perfect if he had taken the race lead but it wasn’t to be. At the last gasp, I tried for the stage win but Ulissi was just too strong.”

Prerace favorite Vincenzo Nibali, the 2013 Giro champion and 2014 Tour de France winner, moved up to sixth, 26 seconds back. Alejandro Valverde, another favorite, is five seconds further behind in seventh.

Previous leader Kittel struggled on several climbs and dropped more than eight minutes behind.

Stage 5 on Wednesday is another hilly 233-km leg from Praia to Benevento.

The 99th edition of the race ends on May 29 in Turin. AP

SPORTS

short Fortino climb with 10 kilometers to go. He then maintained his lead on the descent to the finish along the Calabrian seaside.

Completing the hilly 200-km route from Catanzaro to Praia a Mare in nearly five hours, Ulissi finished five seconds ahead of Dumoulin, who edged fellow Dutch rider Steven Kruijswijk in a sprint.

It’s the fifth Giro stage win of Ulissi’s career and his 20th victory overall.

“My victory comes after enormous team

C1

R E SI DEN T A qu i no h a s reached out to the camp of incoming President and Davao City Mayor Rodrigo R. Duterte to commit to a smooth transition of power come June 30.

Mr. Aquino talked to Duterte’s executive assistant Bong Go to tell him that Executive Secretary Paquito N. Ochoa Jr. shall head the Aquino administration’s transition team, which will coordinate with

Duterte’s camp on matters relating to the transfer of power.

“I talked to Mr. Bong Go yesterday [Tuesday] to relay to Mayor Duterte that an administrative order is being drafted, designating the executive secretary as head of the transition team. I further offered that the Cabinet stands ready to brief his team on any and all of their concerns. Lastly, we are committed to effecting the smoothest tra nsit ion possible,” Mr. Aquino said in a news statement C  A

PHL needs to develop more export winners–Neda B C O

done this week...and hopefully, come Thursday, we’ll have shook off a little bit of that rust.”

This was a nice problem to have.

Even before he rallied from a five-shot deficit to beat Jordan Spieth on the back nine at Augusta National, Willett had planned a quiet month away from golf with his wife and newborn son to relax and do what he described as “normal things.”

He wasn’t planning on chaos back home in a country celebrating its first Masters champion in 20 years.

There were media appearances with his green jacket, a trip to the European Cup semifinal between Liverpool and Villareal, and an appearance at the World Snooker Championship in his hometown of Sheffield, where Willett took a lap of honor around two snooker tables.

Asked what he had done differently because of winning his first major, Willett smiled and said, “Drunk more.”

That’s not entirely true.

Willett probably wouldn’t have spent the Tuesday night after the Masters watching a replay of his 5-under 67 that in time will get as much attention as the 41 that Spieth shot on the back nine. That began the process of realizing what he had done.

@ davecaga

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@cuo_bm

HE country’s reliance on a few traditional export products is proving to be disadvantageous to the Philippines, as receipts declined by 15.1 percent to $4.611 billion in March, according to data from the Philippine Statistics Authority (PSA).

The decreasing appetite of foreign buyers for Philippine-made

PESO EXCHANGE RATES n US 46.9200

products, amid the challenging global economy, has made it difficult for exporters to hike their earnings in the first quarter.

Export revenues contracted 8.4 percent to $13.109 billion in the January-to-March period.

“Given the growth of merchandise exports in the first quarter, the Philippines needs to grow by at least 8.3 percent in the next three quarters to attain the low-end projection of the Export Development

15.1% The rate of decline of the country’s export receipts in March

Council of 5.4 percent in 2016,” National Economic and Development Authority (Neda) Director General

Emmanuel F. Esguerra said.

Esguerra, who is also the country’s economic planning chief, said the government must focus on promoting industry and national competitiveness by crafting policies that move domestic industries into higher-value niches in the global value chains (GVCs).

He added that the government must also encourage multinational enterprises, which are lead firms in the GVCs, to locate in the country.

“It’s a necessary step in the midst of a challenging global economy.

The country’s traditional trade partners continue to post subdued growth; global trade is not expected to pick up soon; and China’s slowdown is impinging upon overall growth in emerging economies,” Esguerra said.

“To be able to reach out to other potential export markets and sell our products, it is crucial to ease C  A

n JAPAN 0.4295 n UK 67.7619 n HK 6.0452 n CHINA 7.1980 n SINGAPORE 34.2982 n AUSTRALIA 34.5425 n EU 53.3762 n SAUDI ARABIA 12.5110

Source: BSP (11 May 2016 )

A2 Thursday, May 12, 2016

BMReports BusinessMirror

Aquino, Duterte form group for smooth transfer of power released on Wednesday. Presidential Communications Secretary Herminio B. Coloma Jr. said Duterte will have a free hand in appointing his trusted allies to government positions, as mandated by law, and by Mr. Aquino’s personal dislike for midnight appointments. “In our appointment papers and in our oath of office, there is a stipulation there that we are coterminus with the appointing authority, and we all know that our appointment shall only be until 12 noon of June 30, 2016,” Coloma said.

“Those employees which were appointed by me, they are also coterminus with me and the appointments have the same expiry date, so the incoming administration will have a free hand in appointing or choosing other persons who will join the administration,” he added.

Duterte team

IN Davao City, meanwhile, the camp of Mayor Duterte has created its own transition committee on Wednesday to be headed by the presumptive president’s Campaign Manager Leoncio Jun Evasco, the Philippines News Agency (PNA) reported.

The rest of the team, the PNA dispatch said, are: Assistant Campaign Manager and Executive Assistant Christopher Bong Go; Carlos G. Dominguez, former Cabinet member and head of Campaign Finance Committee; lawyers Salvador Medialdea and Loreto Ata, Duterte’s personal attorneys; and Peter

AP PHOTO

C  A

Laviña, head of the Duterte-Cayetano Media Team.

Also around to provide support were members of the core group composed of defeated vice-presidential candidate Sen. Alan Peter S. Cayetano; former Transportation Secretary and elected Rep. Pantaleon Alvarez of Davao del Norte; former Press Secretary Jesus Dureza and Rep. Karlo Alexei Nograles of First Distric of Davao City. Former presidential assistant for Mindanao Paul Dominguez was also seen at the Marco Polo in Davao City.

The meeting followed a call from Mr. Aquino to Duterte congratulating the latter for winning the presidential elec-

tions with an assurance of facilitating a smooth transition.

The transition team will only be one of the groups that will be formed to lay the grounds for Duterte’s assumption into office. Earlier, Laviña said there is also the search committee and the team that will plan for Duterte’s inauguration.

The transition committee, he added, will help the mayor identify members of the Cabinet and create a team to review Duterte and Cayetano’s policy statements during the campaign.

For t he inaug urat ion, L av iña said they would coordinate with Malacañang on protocols.

A team will also be identifying personal envoy to communicate with head of embassies in the Philippines, churches, civil society organizations, Armed Forces of the Philippines, Philippine National Police, business chambers, the World Bank, Japan International Cooperation Agency and the Asian Development Bank, among others.

Meanwhile, the members of the mayor’s core group vowed to work for the success of the Duterte administration. When asked if there are senators or congressional representatives who have jumped ship or expressed to support Duterte, Cayetano said it is up to the members of both Houses if they want to support the administration, but hastened to add that the Duterte administration will always welcome offers of support.

Alvarez said they are doing their best that Duterte’s administration will not be a failure. “Ayaw natin na failure ang bagong administration, kaya ginagawa natin ito para suportahan ’yung bagong nakaupo kung ano ang programa niya [We do not want the new administration to be a failure that is why we are doing this, so that the new one who sits there is supported…what is his program],” Alvarez said. Alvarez added that it should not be if “you are on the other side, you are already an enemy.”

On the other hand, Go assured that Duterte is not vindictive. “’Pag tapos na ang election talo na ang tao, bagsak na, tutulungan ka pa. Hindi vindictive si mayor [When the election is finished…he would still help the person who lost and is down. The mayor is not vindictive],” he assured. With PNA

news@businessmirror.com.ph

DOJ. . .

C  A

Caparas said the cash bond is unreasonable, considering that a winning government contractor is only allowed a 15-percent advance payment of the total project cost under the Implementing Rules and Regulations of Republic Act 9184.

The DOJ issued the legal opinion as response to the letter-request of Public Works Secretary Rogelio L. Singson. The Department of Public Works and Highways (DPWH) sought DOJ’s opinion on the validity and legality of Makati City Ordinance 2005-018, which requires that all road constructions within their jurisdiction must post a cash bond deposit of 25 percent of the total project cost before the necessary permit for excavation be issued.

“The 15-percent advance payment is allowed to government contractors to cover mobilization costs and other expenses prior to the commencement of construction —including the cash-bond deposit. Clearly, a 15 percent of total project cost advance payment would not be sufficient to cover the 25 percent of total project cost cashbond deposit,” the DOJ said.

In its letter to the DOJ, Singson said the imposition of the bond is unconscionable, particularly in situations involving large infrastructure projects.

Singson also said the bond is excessive if compared to the 15-percent advance down payment for DPWH contractors. They are required to post warranty securities against damage to works, equipment or installations affected by the construction. The justice department also indicated that the imposition of the 25-percent cash-bond deposit is in violation of the equal-protection clause, as it discriminates against contractors of large infrastructure projects as compared to smaller transactions.

“The equal protection clause of the Constitution requires that like things must be treated similarly, and that classifications must rest on substantial distinction…an across-the board application of the 25 percent may result in an unfair or oppressive treatment,” the DOJ explained.

The DOJ chief said the DPWH may seek relief against the “excessive” cash bond by filing a case before the court.

“Accordingly, this opinion is subject to a final determination by the appropriate Regional Trial Court of the validity and constitutionality of Makati City Ordinance 2005-018. Until and unless the ordinance is declared null and void, the presumption of validity stands,” the DOJ added. Furthermore, the DOJ noted that the issue of the excessiveness of the amount of cash-bond deposit is essentially a question of act, which is within the jurisdiction of the trial court.

BMReports BusinessMirror

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Thursday, May 12, 2016 A3

El Niño causes spike in local corn prices

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B M G P

@ _enren

HE average farm-gate price of local corn has gone up in recent weeks, as El Niño continues to ravage major corn-producing areas in the country.

The dry spell has made it difficult for farmers to increase yield, causing the buying price of yellow corn to increase to P15 per kilogram, from P13.50 per kg, according to data from the United Broiler Raisers Association.

Data from the National Food Authority (NFA) showed that as of April 29, the average farm-gate price of yellow corn reached P12.67 per kg, 11.14 percent higher than the P11.40 per kg recorded in the same period last year.

The farm-gate price of white corn also rose by 16.11 percent to P14.27 per kg, from P12.29 per kg recorded in the last week of December 2015.

“The price is good, but farmers are now reaping low yields from their farms, as low as 6 metric tons [MT] per hectare from the normal yield of 10 MT per hectare,” Philippine Maize Federation (PhilMaize) Inc. President Roger Navarro

₧15/kg The price of corn today, up from P13.50/kg due to El Niño told the BusinessMirror.

“The difference of 4 MT can make a difference in their income,” Navarro added.

El Niño slashed corn output in 2015 by 3.24 percent to 7.52 million metric tons (MMT), from 7.77 MMT in 2014.

The Philippine Statistics Authority has also projected that the 2016 first-quarter production of corn may only reach 2.1 MMT, 12.4 percent below the 2015 level of 2.37 MMT. “Harvest area may contract to 669,200 hectares from 685,100

hectares or by 2.3 percent. Yield per hectare may drop to 3.1 metric tons (MT) from 3.23 MT,” the PSA said in a report.

PSA said corn output may decline in Bukidnon, North Cotabato, South Cotabato, Ifugao, Iloilo, Sultan Kudarat, Sarangani, Negros Occidental, Quirino, Zamboanga Sibugay, and Capiz. Corn is the second most important food crop in the Philippines after rice.

Navarro said corn output could drop further due to lack of irrigation water and the decision of farmers to forego planting. He said the three major corn-producing regions in the country—Regions 2, 10 and 12—have been badly affected by the drought.

“In Isabela, a number of farmers tried to plant late last year. The corn crops that were damaged were supposed to be harvested last January,” Navarro said.

PhilMaize noted that Mindanao—a major corn-producing region in the country—continues to bear the brunt of El Niño.

According to the latest data from the Department of Agriculture, corn farmers have already incurred losses amounting to P2.6 billion due to the dry spell.

What’s keeping the price of local corn from further going up, Navarro

said, is the low price of feed wheat— an alternative ingredient for manufacturing animal feeds—in the international market.

“The poultry and livestock subsectors import feed wheat, which serves as a replacement for corn,” Navarro said. Low international prices, an industry source said, have encouraged feed millers to import more feed wheat.

Industry data showed traders import an average of 1.5 MMT of feed wheat annually. The Philippines also imported 500,000 MT of corn in 2015.

The Philippine feed milling industry is considered as one of the biggest and most organized support industries in the country, providing feeds to practically all species of domesticated poultry, livestock and aquatic animals. Its biggest clients, however, are the swine and poultry industries.

The most common feed ingredients used by local feed millers are yellow corn, soybean oil meal, rice bran, copra meal, fishmeal, and wheat and wheat byproducts. Cassava and sweet potato meals, brewer’s yeast and ipil-ipil leaf meal are also used as feed ingredients at a lesser extent.

Among the feed ingredients, corn is considered the most critical, as it represents about 50 percent of formulated animal-feed rations.

PHL needs to develop more export winners–Neda C  A gover nment reg u l at ion a nd strengthen market intelligence gathering in partnership with the private sector,” he added.

The Neda chief said the Philippines must also find ways to maximize opportunities presented by trade agreements and economic groups, particularly within Asean.

According to the Philippine Export Development 2015-2017, products that have high growth potential include chemicals, activated carbon, metal components and fresh or preserved fish.

In March PSA data showed that total receipts from the top 10 exports declined by 8.6 percent to $3.867 billion.

The top 10 export winners accounted for 83.9 percent of total revenues.

Electronic products remained the country’s top export with total receipts of $2.356 billion, accounting for 51.1 percent of revenues. It increased by a mere 1 percent, from $2.332 billion registered in March 2015. The Semiconductor and Electronics Industries

in the Philippines Foundation, Inc. said five major products boosted the electronics sector’s performance during the period.

The top performer was automotive electronics, which posted earnings of $40.85 million, or 329.69 percent higher than the $9.51 million recorded in March 2015.

Other best sellers were consumer electronics, which grew 152.8 percent; telecommunication, 118.61 percent; communication/radar, 55.23 percent; and medical/industrial instrumentation, 24.02 percent.

Top foreign buyers of Philippinemade products during the period were Japan, the United States and Hong Kong, China.

Exports to Japan declined by 13.6 percent to $991.43 million, from $1.147 billion in March 2015. Shipments to the US also declined by 23.6 percent to $672.85 million, from $880.16 million. The country’s export performance fell short of the government’s target, as revenues contracted 5.6 percent $58.827 billion, from $62.102 billion in 2014.

A4 Thursday, May 12, 2016

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Duterte keeps changing mind on US, China

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RIMINALS and the corrupt may know where they stand with incoming Philippine President Rodrigo R. Duterte. Less so the United States and China.

While the brash mayor has made it clear that domestic policy will center around showing no mercy to law breakers, he’s offered contradictory visions for dealing with both the nation’s closest ally and its biggest trading partner. In a campaign filled with off-the-cuff and off-color remarks, Duterte shifted between fanning a territorial dispute in the South China Sea and allaying concerns it will become the next global flash point.

That unpredictability was on display on Monday: Speaking to reporters in Davao City, Duterte alternated between saying he was open to cooperating with China on oil and gas exploration in the disputed waters, and questioning why the US didn’t send an aircraft carrier to challenge China to show sincerity about standing with the Philippines.

“His rhetoric has been all over the map,” said Gregory Poling, a Southeast Asia specialist at the Center for Strategic and International Studies in Washington. “He seems to be deeply skeptical of the value of the US alliance, largely because he doesn’t believe the US will really back the Philippines against China if push comes to shove. That should seriously concern leaders in Washington.”

Duterte may yet temper—or at least clarify—his rhetoric now he’s off the campaign trail. But his com-

ments so far reflect the dilemma for the Philippines, a country dwarfed economically and militarily by both the US and China, and caught in the middle of the tussle between the two big powers for influence in the region.

If he does pull the Philippines away from the US alliance, it could undermine one of President Barack Obama’s signature foreign-policy initiatives: the economic and military rebalance to Asia. Any move toward China by Duterte could also bolster Beijing’s efforts to enforce claims to 80 percent of a waterway that hosts $5 trillion in annual shipping.

Asked if the US had concerns about Duterte, State Department Spokesman Elizabeth Trudeau told reporters in Washington on Tuesday, “We look forward to working and congratulating the winner. Washington respects the choice of the Philippine people. We gladly work with the leader they’ve selected.”

C h i n a’s Fore ig n M i n i st r y Spokesman Lu Kang said on Tuesday that ties with the Philippines had “run into severe difficulty in recent years,” and he hoped the new government would “push Sino-Philippine relations back to the healthy development path.”

Outgoing President Aquino strengthened the Philippines’s longstanding alliance with US, as he sought support against China’s mili-

ist pride with threats to personally lay claims to disputed areas.

“I will take a jet ski, carrying the Philippine flag,” he said during one televised debate, “and I will go to China’s airport and then I will install it and say, ‘This is ours and do what you want with me. It’s up to you.’ I would stake that claim.”

Chinese media

DUTERTE

He seems to be deeply skeptical of the value of the US alliance, largely because he doesn’t believe the US will really back the Philippines against China if push comes to shove.

That should seriously concern leaders in Washington.”—P tary expansion and island building in the South China Sea. China seized the Scarborough Shoal from the Philippines in 2012, and some analysts have cited concerns it could start reclaiming land there. In the Spratly island area it has created 3,000 acres of land that now feature airstrips, radars and ports.

Mr. Aquino has brought China

before an international arbitration panel, a move opposed by the government in Beijing. He’s also backed the defense cooperation agreement that would let the US station troops and operate bases in the country for the first time in decades. The Hague-based tribunal is expected to rule on the case in the next few months.

China says US patrols justify defensive deployments

US warship

A DAY after the Philippine vote the USS William P. Lawrence, a guided missile destroyer, sailed within the 12-nautical-mile territorial zone of a Chinese outpost in the Spratlys.

China’s defense ministry said it sent several fighter jets and three warships to warn the US ship away.

Duterte said on Monday the Philippines would take a multilateral approach for now to the territorial disputes, including potentially working with the US, Japan and Australia. Still, earlier this month he said he’d consider direct talks with China, an approach that contrasts with Mr. Aquino’s longtime stance.

At times he has indicated he’d tolerate China’s presence in the area if Beijing were to build new railways in the Philippines. On other occasions he has sought to appeal to national-

Philippine poll chief to Marcos: Prove vote-count anomaly

P

IN this January 6 file photo released by China’s Xinhua News Agency, a China Southern Airlines jetliner lands at the airfield on the Fiery Cross Reef, known as Yongshu Reef in Chinese, on the Spratly Islands, known as Nansha Islands in Chinese, of the South China Sea. AP

U

PPING the ante in the feud over who is responsible for rising tensions in the South China Sea, China on Wednesday said repeated US Navy patrols in the area are forcing it to boost the defense capabilities of the islands it controls, and may require it to launch more air and sea patrols.

In a strongly worded statement, the Defense Ministry said it deployed two navy fighter jets, one early warning aircraft and three ships to track and warn-off the destroyer USS William P. Lawrence as it passed nearby Fiery Cross Reef on Tuesday.

“The provocative actions by American military ships and planes lay bare the US designs to seek gain by creating chaos in the region and again testify to the total correctness

1,200 ha

The size of land added by China to its South China Sea island holdings by piling sand atop coral reefs and utter necessity of China's construction of defensive facilities on relevant islands,” the ministry said.

“China will increase the scope of sea and air patrols based on need, boost all categories of military capacity building, resolutely defend national sovereignty and security, and resolutely safeguard peace and stability in the South China Sea,” the statement said.

The US destroyer’s sail-by was the

latest action by the US Navy to reinforce its position that China’s new man-made features in the strategically vital water body do not enjoy the legal rights of natural islands.

Washington has said the Navy will sail and fly wherever permitted by international law and maintains there can be no limits on freedom of navigation as according to established practice.

The William P. Lawrence’s sail-by took it within 12 nautical miles (22 kilometers) of the Fiery Cross Reef, the limit of what international law regards as an island’s territorial sea.

The reef is now an island with an airstrip, harbor and burgeoning aboveground infrastructure.

China has added more than 1,200 hectares (3,000 acres) of land to its South China Sea island holdings by expanding existing islands

or creating new ones by piling sand atop coral reefs.

The addition of airstrips and military infrastructure has Washington and others worried that China is attempting to assert total dominance over the region’s waters and airspace that are claimed in whole or in part by five other governments.

China rejects accusations that it is responsible for raising tensions, saying actions by the US Navy and the encouragement Washington offers to other claimants, such as Vietnam and the Philippines are increasing the chances of conflict.

An estimated $5 trillion in global trade passes annually through the South China Sea, which is home to rich fishing grounds and a potential wealth of undersea oil and gas deposits. AP

FOR all of his tough talk, Duterte appreciates that direct military confrontation would be disastrous.

During a campaign stop earlier this month he said that while the Chinese have “squatted” on Philippine territory, a war would lead to a “massacre of Filipinos.”

China’s state media sounded a positive note about Duterte after the election, describing him as having “a China-friendly” policy. They’ve said his willingness to put territorial disputes on the back shelf would lead to a improvement in relations.

Duterte has already clashed with the US ambassador, warning him last month to “shut his mouth” after the diplomat criticized the mayor’s comment he should have been the first in line to rape an Australian missionary who was murdered in the Philippines decades ago.

Now that he has won, Duterte will likely move to clarify his South China Sea policy and take a reasonable stance, said Benito Lim, an analyst at Ateneo de Manila University.

“Although he made some comments about our relationship with China and with the United States, that doesn’t mean that the offhand comment would become the basis of his policy,” Lim said. “It would be better to wait and see when he comes out with a more formal declaration.” Bloomberg News

HILIPPINE election officials challenged Sen. Ferdinand “Bongbong” Marcos Jr. on Wednesday to prove his allegation of irregularities in the counting of votes for vice president, where he has been overtaken by his closest rival.

They also rejected Marcos’s request for a stop to the unofficial tally by an accredited citizens’ watchdog, which uses the same election returns that are transmitted to the Commission on Elections.

The son of late dictator Ferdinand Marcos Sr. had initially led the partial count by the watchdog known by its acronym PPCRV [Parish Pastoral Council for Responsible Voting].

But as of Wednesday afternoon, the administration’s candidate, Rep. Leni Robredo, was leading by more than 230,000 votes, putting her 0.6 points ahead of Marcos.

The tally is based on 95.5 percent of votes nationwide.

Ballots from overseas Filipinos are now considered crucial in the race for vice president.

Rodrigo R. Duterte, the bombastic mayor of southern Davao City, was elected the new president, based on the PPCRV results that gave him an unassailable lead.

The official count and proclamation of the president and vice president is done by Congress, which will convene on May 24.

If Marcos wins, that would put him a step away from the presidency 30 years after his late father was ousted by a public uprising amid allegations of plunder and widespread human-rights abuses.

“These accusations are

not true...we are committed to being impartial, to be neutral,” Commission on Elections Chairman Andres D. Bautista said.

He said any complaint will be acted upon based on evidence.

Election Commissioner Rowena Guanzon said there was no reason to stop the official count.

On Tuesday Marcos’s campaign adviser, Rep. Jonathan de la Cruz, said they sent an urgent request to the elections commission to halt the PPCRV count, because it showed “an alarming and suspicious trend” contrary to independent exit polls and the campaign’s estimates.

Bautista said the commission has not yet received the request as of Wednesday.

Marcos appealed to his supporters, who have been calling through social media for protest rallies to stay calm.

The Marcos family fled to Hawaii four days after the 1986 “people power” uprising, where rosary-clutching nuns and ordinary citizens knelt before tanks and protesters stuck yellow flowers into the muzzles of assault rifles of progovernment troops. His father died in exile three years later, denying any wrongdoing.

After the Marcos family returned to the Philippines in 1991, Marcos Jr. became governor, congressman and, in 2010, senator.

President Aquino, whose parents were democracy champions who helped topple the senior Marcos, campaigned against the junior, who has never clearly apologized for abuses of his father. AP

Asean

BusinessMirror Editor: Max V. de Leon • Thursday, May 12, 2016 A5

www.businessmirror.com.ph

Hunting for new frontiers Asean-EU Perspective

HENRY J. SCHUMACHER

F

OR a long time, the main task of company managers focused on always finding new markets and establishing new branch offices or subsidiaries. From a European perspective, managers moved to Eastern Europe first, then China, later Vietnam, India, Mexico, Indonesia —there was always a new frontier that offered new opportunities. Sales were globalized; supply chains were created across borders; and networks were carefully expanded.

While we at European Chamber of Commerce of the Philippines are still engaged in convincing the small and medium enterprises of 28 membercountries of the European Union to make Asean their new frontier, it appears that more and more questions are coming up whether this business philosophy can be continued or whether we have to realize: What brought us here, won’t get us there! The phase of rapid globalization has become history already. Economic growth appears to have reached a plateau. The world population has reached a plateau also. While we believe that Asean integration offers new opportunities, we also have to be realistic that globalization is taking a pause, and that the world economy needs a new growth story.

So where are the new frontiers? The heroes of global industrialization were building their empires on size. Scaling was the name of the game: to produce more and more of the same, in more and more countries, at hopefully sinking costs. Such a strategy only works as long as the demand growth fast in many markets. But that strategy ends in failure when top managers begin to influence share prices by using profits to buy back shares, rather than investing in the business. There are plenty of examples around: Siemens, GE, Pfizer and BP—to name a few only. The global capitalism, it appears, lives at the moment at the expense of its own future.

The new frontiers, which can inspire the fantasy and productivity of people, are no longer in different places. They are in the minds of people who have started thinking in terms of disruptive innovation, social entrepreneurship, braking up traditional supply chains, joining techlabs or incubators, betting on start-ups from Silicon Valley to Santiago Valley to Berlin Valley to, hopefully, Manila Valley.

But this redesign also requires new organizational structures. In future, leadership will be based on sharing. The interpretation of CEO will no longer be “chief executive officer” but “chief enabling officer.” It will be essential to move away from hierarchical silos and using profit margins as the sole management tool. Leading from the top is poison for innovation; more intrapreneurship from below will lead companies and organizations to success.

In this context, “Industry 4.0” has to be taken seriously. The “4th Industrial Revolution” is upon us. No one is playing down the future impact of the digital economy, but there is a danger that many are underestimating its prevalence today. New research from Accenture Inc. reveals the digital economy represents one-third of the US economy, equivalent to $5.9 trillion. The difference between business as usual and smarter use of existing digital investments (digital skills, technologies and other accelerator factors) will be higher rates of growth. There is no doubt that online giants will continue to dominate the digital economy, but traditional analog companies can benefit from digital platforms, too, by generating data from their network of products and partners. The size of the digital economy is significant, and leaves no excuses to delay.

Myanmar minority still Rohingya for Washington

M

YANMAR and the United States appeared to agree to disagree on Tuesday on what to call the Southeast Asian nation’s beleaguered Muslim minority that Washington and most of the world know as Rohingya.

Many Buddhists inside Myanmar prefer to call them “Bengalis,” arguing that the 1 million or so members of the minority are mostly illegal immigrants and not a native ethnic group. In fact, the families of many Rohingya have lived in Myanmar for generations.

US Ambassador Scot Marciel said the US calls communities by the name they themselves prefer.

“The normal US practice and the normal international practice is that communities anywhere have the right, or have the ability to decide what they are going to be called. And normally when that happens, we would call them what they asked to be called. It’s not a political decision, it’s just a normal practice.”

Because Myanmar does not officially recognize the Rohingya as an ethnic group, it denies most of them citizenship and basic rights. Conflict over land and resources in the western state of Rakhine, where most of the estimated 1 million Rohingya live, caused deadly violence between Buddhists and Muslims which later spread to other parts of the country. More than 100,000 Rohingya were forced to flee their homes and now live in poor conditions in decrepit camps.

Marciel declined to say whether, as reported, the country’s foreign minister and de facto leader Aung San Suu Kyi had personally asked him not to use

the term. “I prefer not to publicly talk about private diplomatic conversations,” he said.

Suu Kyi, who won international admiration and a Nobel Peace Prize for her nonviolent struggle for democracy during Myanmar’s years of military rule, has in recent years disappointed many former fans by failing to speak on behalf of the Rohingya. Despite international expressions of concern, Myanmar’s previous military-backed government, which handed over power this year to Suu Kyi’s National League for Democracy party, did nothing to ease the Rohingya’s plight.

Myanmar foreign ministry official Aye Aye Soe acknowledged on Tuesday that her office had asked Marciel not to use the term “Rohingya.” She said Marciel has the right to call the minority whatever he likes, but calling them Rohingya could enflame communal tensions.

“Yes, it is true that we told Ambassador Scot Marciel when he came to [Myanmar’s capital] Naypyitaw not to use the term‘Rohingya,’because it is not supportive in solving the problem that is happening in Rakhine state,” said Aye Aye Soe, deputy director general of the ministry’s political department . “And it can even worsen the situation there.”

“This is his right to say or call whatever he wants, but this is not leading to a solution of the problems,” she said. “People are just fighting over this term instead of solving the problem.

This can make things difficult for the two communities in Rakhine to gain trust again.” AP

Thailand to shut largest gold mine on environment concerns

T

HAILAND will shutter its largest gold mine by the end of the year, after the government said concern the project was damaging the environment and sickening workers outweighed its economic benefit.

Kingsgate Consolidated Ltd., the Australian producer which operates the Chatree mine through its Akara Resources Plc. unit, halted its shares on Wednesday in Sydney, and said it’s seeking clarification of the situation. Kingsgate got 62 percent of full-year revenue from the operation in fiscal 2015, according to data compiled by Bloomberg.

Akara must close and rehabilitate the Chatree mine, about 280 kilometers (174 miles) north of Bangkok, once its metallurgical plant ceases operations by the end of this year, Industry Minister Atchaka Sribunruang said on Tuesday. The

company had been seeking a fiveyear renewal of Chatree’s metallurgical license, which was scheduled to expire on Friday. The government will allow the company to run the plant to the year-end, it said.

Contamination inquiries

A DECISION to shutter the facility comes after Thailand’s government ordered a review of Chatree last year following complaints from local residents. The announcement came “as a complete surprise” to Akara, which said it has “proven conclusively that we cause no harm to the health of our community or to its environment.”

130,000 ounces The annual gold production of the Chatree mine

Kingsgate was ordered last year to temporarily suspend output and conduct inquiries into concerns about potential arsenic and manganese contamination in nearby villages. The producer doesn’t use either arsenic or manganese at the site, though it does use cyanide, it said at the time.

A government-commissioned report presented to Thai ministers last month offered a “scientific rebuttal of unsubstantiated and vexatious allegations of contamination,” the producer said in the April filing.

“Even though there is no clear conclusion whether the environmental and health impact and problems of local residents comes from Akara’s

gold mining, we need to make the decision for the public’s benefit and to solve the conflicts,” Atchaka told reporters in Bangkok.

Chatree output

THE Chatree mine produces about 130,000 ounces of gold annually and has operated for 15 years, according to a Kingsgate filing last month.

The project generated 52 billion baht ($1.5 billion) in revenue in that time, and provided the government with about 7 billion baht in royalties, Atchaka said. Chatree is capable of at least 7 more years of production, according to Kingsgate.

“From the end of December, there will be no gold mine until the issues are clear,” Thai’s Prime Minister Prayuth Chan-Ocha said, in response to questions over the move. The government will need to assist more than 1,000 workers who will be affected by the decision, he said.

Chatree is Kingsgate’s only producing asset after it completed the sale of its Challenger gold mine in Australia in March. Bloomberg News

TRILATERAL MEET ON MARITIME SECURITY

Indonesian Armed Forces Chief Gen. Gatot Nurmantyo (from left), his Malaysian counterpart Gen. Zulkifeli Mohd. Zin, Malaysian’s Foreign Minister Anifah Aman, Indonesian President Joko Widodo, Indonesian Foreign Minister Retno Marsudi, her Filipino counterpart Foreign Minister Jose Rene Almendras, and the Philippines’s Navy Chief Rear Adm. Caesar C. Taccad confer as they prepare for a group photo before the start of their trilateral meeting on maritime-security issues at the presidential palace in Yogyakarta, Indonesia, last week. The gathering was held following the kidnappings of Indonesian and Malaysian crewmen by Abu Sayyaf militants in the waters off Southern Philippines, where Indonesia shares borders with the two countries. AP

Indonesian President Jokowi to visit SoKor, Russia

P

RESIDENT Joko Widodo (Jokowi) of Indonesia is set to visit South Korea and Russia from May 16 to 20.

Jokowi’s state visit to South Korea is at the invitation of President Park Geun-hye and a working visit to Russia to attend the Asean-Russian Summit, Foreign Minister Retno LP Marsudi said in a media briefing at the Presidential Office here on Tuesday.

“South Korea is one of Indonesia’s main partners in the fields of trade, investment and tourism. It will also serve as Indonesia’s partner to accelerate industrialization [in Indonesia],” she said.

While in South Korea, Jokowi will meet Park, and hold a one-on-one business luncheon and roundtable discussion with 20 top South Korean businessmen. He will also address the Asian Leadership Conference, a major discussion forum in South Korea. The theme of the conference this time is leadership and innovation.

On May 18 the Indonesian leader will leave for Russia to attend the Asean-Russian Summit in Sochi and hold bilateral talks with several partners.

100

Number of countries expected to send their heads of state and delegates to the Jakarta 12th World Islamic Economic Forum from August 2 to 4

The conference will also mark the 20th anniversary of Asean-Russia partnership, the minister said.

“Of course, we will sign several MOUs [memorandum of understanding] during the presidents visits to South Korea and Russia,” she said. Jokowi had earlier paid a working visit to Busan, South Korea at the end of 2014.

Meanwhile, Indonesian Finance Minister Bambang Brodjonegoro has said his country is ready to host the 12th World Islamic Economic Forum (WIEF) from August 2 to 4.

“This forum aims to enhance cooperation with various sides in the

Islamic world in the economic field,” he said here on Tuesday.

Bambang explained that the forum will provide a platform for young people, especially those engaged in micro-, small- and mediumsized enterprises, to exchange ideas and opinions with businesses from other countries.

“We can introduce young Indonesian businessmen to develop their business and tie up with businesspeople from the Middle East and African countries. This will help in diversifying the export markets,” he said.

In addition, the minister stated Indonesia will introduce its potential in the field of tourism, culture, fashion and creative industries to the Middle East markets and other Muslim countries. Some key issues to be discussed in the 12th WIEF include the issuance of bonds to finance infrastructure, integration of halal products and Islamic finance, the development of halal food industry and Islamic fashion industry globally.

In addition, the WIEF will also discuss access to finance for micro-, small- and medium-sized enterprises and their integration through digital

platforms into the global economy, the development of crowd, funding platform, encouraging innovation by connecting start-up businesses with large enterprises, and the development of a culture of businessdesign thinking.

Meanwhile, the chairman of the WIEF Foundation, Tun Musa Hitam, said the event has a theme of “Decentralization of Growth and Empowering the Future Business.”

According to him, Indonesia is a growing market with strong economic fundamentals and has a number of micro-, small- and medium-sized enterprises that have a potential to expand globally.

Indonesia can also be a major player in the Sharia economy, which continues to grow rapidly. This was because the country is a strong market in the Asean region, has the largest Muslim population in the world, and is one of the important players in the global economic-growth scenario.

A number of heads of state and delegates from 100 countries are expected to participate in the WIEF forum and provide innovative and sustainable solutions to many business challenges. PNA

TheBroa Change is coming, but can t

Business

A6 Thursday, May 12, 2016

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EITHER the strongest nor the most intelligent species would survive—according to Charles Darwin: “It is the one that is the most adaptable to change” that will.

Running on the slogan “Change is Coming,” President-elect Rodrigo R. Duterte should expect—as he is also expected—to get adapted to changes. He needs to, as Darwin said, if he seeks political survival.

And many—captains of industries, influential market players, economists and trade officials— are already expecting the changes or reforms outgoing President Aquino initiated six years ago would continue, alongside new ones that could be credited with the incoming Duterte leadership bloc.

The latter could be the amendment of the Constitution of the Republic of the Philippines that, according to Austria-born Guenter Taus, president of the European Chamber of Commerce of the Philippines (ECCP), could propel foreign direct investments to the Philippines. A resolution seeking to relax the restrictions in the Constitution failed to pass the 16th Congress, as observers said the Aquino administration was averse to changing the Constitution.

Under a Duterte administration, that may come to fruition, as his spokesman Peter Lavina has been quoted in a The Guardian article as saying the profanity-speaking President-elect “will push to rewrite the Constitution.”

“He should focus on attracting more local and foreign private-sector players to invest in many priority government infra opportunities by actively, openly pursuing the PPP [public-private partnership] modality,” Aboitiz Equity Ventures Inc. First Vice President Roman Anthony V. Azanza told the BusinessMirror.

“Legislation-wise, he [President-elect Duterte] should build on the solid PPP institutional foundations set up by his predecessors, as well as pass the critical PPP [bill] into law.”

For political analyst Ramon Casiple, Duterte should push for Charter change (Cha-cha) in his first year in office.

“We’ve been telling all the new presidents about that [Cha-cha], because if you already reached half of your term and you open that up to the people, you will be accused that you want to stay in power,” Casiple, who is also the executive director of the Institute for Political and Electoral Reform (IPER), said in an interview.

“If he [Duterte] will do such major moves, like Cha-cha, on his first year, then the people will somehow be receptive of it,” he added.

However, he said, the federalism agendum being pushed by Duterte should be studied thoroughly. “’Pag federalism kasi iba ’yun; ’yung government mismo hinati mo na. Hindi ganun kasimple. Bagong gobyerno, bagong rules,” Casiple said. “Cha-cha ka, then pag-aralan natin ang federalism.”

This legal-path trajectory is just one of the many crossroads stakeholders are putting in front of Duterte, who, as a mayor, chose to drive a taxi at night to check on the Southern Philippine capital Davao City.

PPP

THE wish list of local and foreign businessmen, government officials and groups is as long as the patience of Duterte’s naysayers with his supporters, called “Dutertards,” on social media. On top of this list is the PPP.

Local and foreign business groups in the country underscored the need to roll out PPP projects quicker.

“I think Duterte should give focus to the PPP, make sure that the projects awarded will be finished on time, and that those in the pipeline will continue,” Philippine Chamber of Commerce and Industry (PCCI) President George T. Barcelon said in an interview over the telephone.

The Makati Business Club, (MBC) composed of the country’s largest businesses, also underscored the need for accelerated infrastructure development via the PPP Program.

“To continue the momentum, one key component may be to continue, sustain and speed up the PPP rollout, rather than review everything all over again, especially since our PPP has been recognized globally as best practice,” MBC Executive Director Peter Perfecto said.

For the foreign chambers, the passage of the PPP Act is, likewise, a “must” in order to jump-start more private investment in national infrastructure projects.

Dying

SADLY, the PPP Act is as good as dead. In an interview with the BusinessMirror in mid-April, Speaker Feliciano Belmonte Jr. admitted that the chance for Congress to pass the bill is “slim to none” due to lack of time.

Belmonte said there may be no more time for both chambers of Congress to pass the measure on third reading.

Based on the legislative calendar, Congress sessions adjourned on February 3 as part of its preparation for the May national and local elections. Sessions will resume on May 23 and end on June 10.

The two chambers will convene first as National Board of Canvassers before the approval of other pending priority bills.

When approved, the PPP Act will institutionalize the Project Development and Monitoring Facility, the PPP Governing Board and the contingent liability fund.

The proposed amendments include the separation of regulatory and commercial functions of government-owned and -controlled corporations, and create a list of projects called “projects of national significance.”

By virtue of being included on the list of projects of national significance, projects will be “insulated” from local laws, among others, by local government units.

The proposed amendments also include allowing time-bound temporary restraining order, and the extension of the period for Swiss Challenge to six months, from the current two-month period.

Also, the said piece of legislation will give the executive director of the PPP Center a fixed tenure, and will, likewise, make the said body a voting member of the Investment Coordination Committee and the Cabinet Committee of the National Economic and Development Authority (Neda).

Infrastructure development

THE PPP, however, is just one of the many thorns in the shrub of ills plaguing the country’s infrastructure development.

In a text message, Management Association of the Philippines President Perry Lim Pe cited transportation infrastructure reforms as a go-to point for the incoming Duterte administration.

Faster implementation of transportation infrastructure projects was also cited by the American Chamber of Commerce of the Philippines.

“Our new president should make investing in infrastructure a top priority on both his investment and legislative agendas,” Azanza said.

He explained that these two fronts are crucial to solving the so-called infrastructure gap in the Philippines.

“Investment-wise, he should bring the many PPP deals that were already launched to bid in order to send a strong signal that the new government is committed to working with the private sector in solving our infra backlog.”

Ayala Corp. Managing Director Eric C. Francia said the company “hopes that the new President will accelerate the rollout of major infrastructure projects, especially the main international airport and mass transport.”

Liberal Party Rep. Winston Castelo of Quezon City said the Duterte administration should initiate a deliberate conscious effort to fast-track flagship infrastructure projects “to meet the people’s great expectation on his administration wanting for im-

mediate change on his first 100 days in office.”

Philippine Institute for Development Studies (PIDS) Senior Research Fellow Adoracion Navarro said it is also important to increase the country’s public infrastructure targets to 6 percent of GDP from the current target of 5 percent.

Traffic

ATENEO de Manila University Economics professor Alvin Ang said efforts to improve infrastructure spending must also be addressed by improving the government’s absorptive capacity. This can be done by retraining employees, especially those in local governments, to speed up processing and other important functions.

There must also be strong political will in terms of using these infrastructure projects to reduce congestion in urban areas, not only in Metro Manila. “’Yung sa Metro Manila, urban centers, kailangan ma-solve ang traffic [problem]. Kasi hindi lang infrastructure ang solution nun, administrative ’yung ibang kulang dun,” Ang said. “Kaya nga siya nanalo partly ’yung rule of law, ’yung order, so kailangan strictly ma-enforce ang order.”

Isaac S. David, the president of MTD Philippines Inc., described the country as one of the slowest in terms of infrastructure development.

“Considering that the Philippines has been lagging behind

our Asean neighbors and the rest of the world in terms of infrastructure, I wish that Duterte will focus on the implementation of the much-needed infrastructure, like toll roads and expressways, mass-transport system and to decongest Metro Manila by transferring or creating a satellite national government center at Clark, which he promised during the debate,” he said.

Navarro said the Duterte administration can also implement potentially controversial reforms, such as a comprehensive urban bustransport policy in Metro Manila.

She suggested that the government implement an arterial-feeder bus-transport route in Metro Manila and consolidate bus operations into fewer companies with enough buses.

“The scheme might encounter resistance from existing bus companies and result in commuters’ complaints about the inconvenience of or confusion in transfers between arterial and feeder routes, so advance information campaign will be needed,” she added.

Taxes

OTHER than the constitutional amendment, tax reform is on the priority list of foreign businessmen grouped under the ECCP. The ECCP said reforms should address both the personal income and corporate income tax.

“We would like to see the new government to act on comprehensive tax reform in the following

months,” Taus said in his reply to questions sent via electronic mail.

“Tax reform that lowers corporate income tax to a more internationally competitive level and lessens the burden on employers and employees by reducing and aligning personal income-tax brackets to current salary ranges.”

House Committee on Ways and Means Chairman and Liberal Party Rep. Romero Quimbo of Marikina City said lowering individual and corporate income-tax rates should be prioritized in the next government.

“Besides addressing criminality, the next government should study tax reform,” Quimbo added.

Duterte earlier said he doesn’t favor lowering individual and corporate tax rates, adding he needs funds for the government infrastructure projects.

But mining industry’s big players under the Chamber of Mines of the Philippines recommend the deferral of the proposal to increase taxes in mining pending the government’s comprehensive tax reform.

PIDS’s Navarro said there is a need to implement a comprehensive tax and customs-reform program that can substantially increase revenues by around 20 percent of GDP.

REIT

TAX is also an issue with the Real Estate Investment Trust (REIT) law. The country’s tax authorities are subjecting to a 12-percent value

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www.businessmirror.com.ph | Thursday, May 12, 2016

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the new president handle it? quirements [that], when you look at the law, it did not provide such a high bar.”

Refran said, for instance, the law states that the REIT shall be a public company with an ownership of just 33 percent. When the IRR was implemented, it placed an additional requirement that states over a three- to four-year period, the REIT should be owned by at least 66 percent, or two-thirds, of the public.

The REIT law was enacted in 2009, with the main aim of promoting the development of the capital market, broadening the participation of the public in the ownership of real estate in the Philippines; and use the capital market as an instrument to help finance and develop infrastructure projects.

The IRR of the said law, however, was crafted by the Aquino economic team.

The law was designed to recycle real-estate assets by placing them in another REIT company in which the public can invest into by purchasing shares. The shares of the company can also be traded at the PSE. These property firms may not be big firms, such as Ayala Land Inc. and SM Prime Holdings Inc. A REIT can also be a simple parking-lot operator, expressways that exact toll on their users, prison facilities and airports.

Construction

THE country’s construction industry, meanwhile, said it will introduce to the next administration the building of “instant flyovers.” These are city bridges using modular systems or prefabricated materials that could be placed in congested areas of Metro Manila and parts of the country as part of a solution to the worsening traffic situation.

Jorge Consunji, president and COO of DM Consunji Inc., said the members of the Philippine Constructors Association (PCA) may push to the next administration the use of new technology in building flyovers.

DM Consunji Inc. is the construction arm of conglomerate DMCI Holdings Inc. As a rule of thumb, using the new technology may cut construction time by 30 percent, and the bridge can also last by at least 20 years. It costs about P1.2 billion per kilometer to build one.

During former President Gloria Macapagal-Arroyo’s adminis-

tration, the government purchased several modular system or prefabricated flyovers that were meant to be put up in heavy-traffic areas in Metro Manila. One such area targeted was Katipunan Avenue in Quezon City, where two major colleges are located.

These were, however, set aside and not utilized by the Aquino administration.

The PCA may just ask the next administration to utilize these materials for the project, Consunji said in a news briefing.

“We [DM Consunji Inc.], along with all the other member-contractors at PCA, are prepared to offer this technology to the next administration. It is high time that worsening traffic condition in Metro Manila be addressed as promptly as possible,” Consunji, a former PCA president, said.

“Given a chance, our association would like to propose this new technology. Although it’s more expensive versus the construction of conventional flyovers, this technology promises to improve the traffic condition in Metro Manila.”

A conventional flyover takes about 18 months to complete.

Delays in construction, however, are caused by the right-ofway issues and the transfer of utility wires, cables and pipes buried under the ground.

Consunji said these are some of the issues they hope could be addressed by the incoming government.

Economists

ALL the tough talk from the Duterte camp in the months leading to last Monday’s polls may be put to the test as local economists weigh in on the policies needed to push the economy forward.

Economists interviewed by the BusinessMirror highlighted the need to promote regulatory reform, the importance of agriculture and research and development, and a focus on urban planning.

“There is no dearth in good policy prescriptions. What is lacking is implementation of policies.

[I] hope that the Duterte administration can put a spark in the implementation phase,” University of Asia and the Pacific School of Economics Vice Dean George Manzano said.

Manzano’s economic wish list included investor-friendly policies, such as following the rule of law, honoring the sanctity of contracts,

A BOY happily shows campaign wrist bands of presidential candidate Mayor Rodrigo R. Duterte. AP/BULLIT MARQUEZ

added tax (VAT) a REIT company.

There’s also a one-time tax to be able to set up a REIT company.

Philippine Stock Exchange Inc.’s Chief Operating Officer Roel Refran said in other countries, they did not subject to sales tax the REIT, since there’s already the one-time tax.

“We’re not [re]inventing the wheel,” Refran told the BusinessMirror. “This is used in Japan, Australia, Singapore and in the US. And it’s not going to be a legislative amendment, because that’s hard to do. It’s just going to be the IRR [amendment to the implementing rules and regula-

tions], and also the appropriate SEC [Securities and Exchange Commission] memo circular.”

The Bureau of Internal Revenue earlier said the IRR for the REIT is fair, and tough measures were placed to ensure the private sector would not unduly benefit from the REIT’s real purpose of recycling capital.

IRR

REFRAN said he wants the incoming administration to revisit the IRR for the REIT products.

“When it [REIT] was implemented, there were additional re-

SUPPORTERS cheer as presidential candidate Mayor Rodrigo R. Duterte’s campaign motorcade makes its way through the streets of Malabon on April 27. AP/BULLIT MARQUEZ

promoting transparency of processes, and liberalizing the investment regime.

He also urged the expansion of investments in energy by facilitating investments in renewable energy and power, as well as the creation of clear regulations in the sector.

Agriculture

MANZANO also urged the Duterte administration to shift to highervalue agriculture, as well as credit and technology transfer. He added that the government’s rice policy must be reviewed, and efforts must be increased to clamp down on smuggling.

Supporting the agriculture sector, PIDS’s Navarro said, can be done by setting a macro target of 1 percent of GDP for research and development.

Encouraging R&D, as well as innovations, can help the agribusinesses and small and medium enterprises (SMEs) improve and diversify their products.

Eagle Watch senior fellow Alvin Ang said the Duterte administration needs to increase infrastructure spending because it has the potential to solve the country’s employment woes, particularly in agriculture.

Samahang Industriya ng Agrikultura (Sinag) Executive Director Jayson Cainglet told the BusinessMirror farmers are expecting Duterte to achieve what President Aquino has failed to do in the past six years of his term.

“Because we feel like the incumbent administration has flopped in advancing Philippine agriculture, farmers will really expect major changes during Duterte’s term,” he said in a phone interview. “We’re hoping this time the administration won’t fail us.”

Cainglet added that as someone coming from Mindanao, Duterte should truly understand the challenges faced by the agricultural sector.

He said Sinag is counting on Duterte to address issues, such as smuggling, access to credit, and free irrigation services.

Neglected

PHILIPPINE Maize Federation Inc. (PhilMaize) President Roger Navarro also called on the incoming administration to focus its efforts on the agriculture sector.

“We hope that this time, the government will really focus on agri-

culture, because this sector has long been neglected in our country.”

PhilMaize’s Navarro added that there is a need to implement policy reforms—particularly those that involve production, trade and export—and rationalize the distribution of the Department of Agriculture’s (DA) budget.

“We know for a fact that the bulk of the budget for agriculture is mostly given to Luzon, then about 35 percent is divided between the Visayas and Mindanao,” Navarro explained. “It should change, especially that the new president will be from Mindanao.”

United Broilers Raisers Association President Elias Jose Inciong, for his part, said the next administration’s thrust should be in promoting climate-change resiliency and sustainability.

“If [the Duterte administration] can address the challenges brought about by climate change, especially on water supply and distribution, that would be a major and long-term achievement,” he said.

Water, the industry leader said, is a basic necessity, especially for crops.

“It may not affect [poultry and livestock growers] directly and immediately, but if you do not address the issue on water, where will you get your feeds for your poultry and livestock? If you address that, you address sustainability already,” he ended.

Poverty reduction among fishermen should also be a focal point of government efforts, nongovernmental organization Tambuyog Development Center Inc. (TDC) insisted.

TDC Executive Director Arsenio Tanchuling said stopping illegal fishing, implementing the Comprehensive National Fisheries Industry Development Plan 20162020, and providing settlement areas for fishermen near their fishing grounds would be crucial in uplifting the lives of fishermen.

According to Agriculture Undersecretary Emerson Palad, the DA has already prepared a transition team that will present to the next agriculture secretary the agency’s programs and recommendations. “We will brief the new secretary and his or her team regarding what the agency has achieved, what programs became successful, which programs need adjustment, among others. We have to discuss it with them so that the transition will become smooth and seamless.”

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The World BusinessMirror

Thursday, May 12, 2016

briefs

REPORT: 27.8 MILLION PEOPLE INTERNALLY DISPLACED LAST YEAR

AMMAN, Jordan—A major aid agency says 27.8 million people around the world were internally displaced by conflict and natural disasters last year, or as many as the combined populations of New York City, London, Paris and Cairo. A report by the Norwegian Refugee Council on Wednesday says 8.6 million of last year’s internally displaced were uprooted by conflict, more than half of them in Syria, Yemen and Iraq. AP

PANAMA PAPERS LAW FIRM THREATENS LEGAL ACTION

PANAMA CITY—The Panamanian law firm at the center of the huge trove of leaked documents detailing offshore financial dealings says it will take legal action against an international consortium of journalists. The Mossack Fonseca firm said in statement on Tuesday that it had asked the International Consortium of Investigative Journalists to stop publishing information from the documents that it has said were obtained through a computer hack. On Monday the consortium published information about some 200,000 offshore entities in a searchable database. AP

POLICE ALLEGE RADICALS PLANNED TO LEAVE AUSTRALIA

BY BOAT

CANBERRA, Australia—Five men have been arrested on suspicion that they planned to leave Australia in a 23-foot boat to fight in Syria, the police said on Wednesday. The men, aged 21 to 33, had towed the half-cabin power boat with a car 2,800 kilometers from their homes in the southern city of Melbourne to Cairns in Australia’s tropical north before they were arrested on Tuesday, the police said. All had their passports canceled to prevent them from leaving the country to fight for extremist groups, such as the Islamic State movement. AP

Bangladesh executes leader of Islamist party–minister

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HAKA, Bangladesh—The head of Bangladesh’s largest Islamist party was executed early Wednesday for his role in acts of genocide and war crimes during the country’s independence war against Pakistan in 1971, a senior government official said.

Home Mi n ister A sadu zz aman Khan said Motiur Rahman Nizami, the 73-year-old leader of the Jamaat-e-Islami party, was hanged at 12:10 a.m. on Wednesday inside Dhaka central jail amid tight security. A crowd of activists celebrated outside the jail.

T he execution came a few hours after Nizami’s family had visited him for the last time. His body was handed over to his family for burial in a family graveyard in the northwestern district of Pabna, his ancestral home. “We buried him in the morning,” said Abdullah Al Mamun, Nizami’s cousin. Jamaat-e-Islami issued

200K The number of women allegedly raped during the nine-month war in 1971 in what was then known as East Pakistan

a statement condemning the execution and called for a daylong general strike across the country for Thursday. But such protests

usually get no major response from people.

Nizami refused to seek presidential clemency to commute his death sentence. A condemned man can seek such clemency from the country’s figurehead president. Nizami did seek a review of his death sentence through the judicial system, but the country’s Supreme Court upheld his punishment. Nizami was convicted of three major charges stemming from the 1971 war, including the killings of 480 people.

He was also held responsible for the killings of dozens of intellectuals, including teachers, journalists and doctors, just two days before Bangladesh gained its independence in 1971.

Bangladeshi authorities say Pa k i st a n i sold iers, a ided by loc a l col l aborators, k i l led 3 million people, raped 200,000 women and forced some 10 million people to f lee the countr y during the nine-month war in what was then known as East Pakistan, renamed Bangladesh after independence.

Nizami is the fifth senior official from opposition parties to

be executed since 2013 for war crimes carried out during the 1971 war. Three other senior members of Nizami’s Jamaat-eIslami party and a top leader of the main opposition Bangladesh Nationalist Party led by former Prime Minister Khaleda Zia have also hanged.

Trying suspected war criminals has posed a major challenge for Prime Minister Sheikh Hasina, who has faced strong international pressure to stop executing people, such as Nizami who acted against the country’s struggle for independence.

Amnesty International and Human Rights Watch had protested the death sentence for Nizami. The human-rights groups also raised questions about the standard of the trial process, but Hasina and her colleagues have rejected claims that the judicial procedures were flawed. Authorities also rejected opposition claims that Nizami’s trial was politically motivated and designed to weaken the opposition, saying the families of the 1971 victims have the right to receive justice for their suffering. AP

JAPANESE WELCOME OBAMA’S UPCOMING HIROSHIMA VISIT

TOKYO—Japanese are welcoming President Barack Obama’s decision to visit the atomic-bombed city of Hiroshima, and those interviewed on Wednesday said they aren’t seeking an apology.

They expressed happiness that he plans to stop at the memorial for victims of the 1945 bombing after attending the annual Group of Seven summit in Japan. Obama will become the first sitting American president to visit Hiroshima, a city almost entirely destroyed by a US atomic bomb in the final days of World War II. AP

TAIWAN EXECUTES MAN FOR ‘14 STABBING SPREE

TAIPEI, Taiwan—Taiwan has executed a man who was convicted of killing four people in a subway stabbing spree two years ago. The Ministry of Justice says Cheng Chieh was executed on Tuesday night. It did not say what method was used, but prisoners in Taiwan are usually sedated and then shot. Cheng’s two-minute attack on a subway train during rush hour in Taipei on May 21, 2014, left four people dead and 22 injured. AP

STABBING ATTACKS AT MALL, HOME LEAVE THREE DEAD

TAUNTON, Massachusetts—Two people were killed in stabbing attacks at a home and a shopping mall in Massachusetts before an off-duty law enforcement officer shot and killed the suspect, authorities said. Bristol County District Attorney Thomas M. Quinn III said late Tuesday that Arthur DaRosa, 28, of Taunton, crashed a car outside a home in the city, walked inside and stabbed an 80-year-old woman and another woman. AP

IN this May 6 photo, street performer Mallick Young plays trumpet on Congress Street in Boston.

Officials are considering regulations on street performers citywide, because they say breakdance crews and bucket drummers performing a few blocks away in front of Faneuil Hall, one of Boston’s most visited tourist sites, are using inappropriate language, playing music too loud, aggressively soliciting donations and bullying other performers out of the high-traffic area. AP

Artists fight for free speech at a cradle of US independence

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OSTON—A fight over free speech involv ing brea k dance crews and bucket drummers is brewing on the steps of a historic meeting house, where American colonists began the earliest calls for revolt against England.

Boston officials say they’re considering imposing regulations on street performers because the breakdancers and drummers performing in front of Faneuil Hall, among the city’s most visited tourist sites, are using bad language, playing music too loudly, aggressively soliciting donations and bullying other performers out.

“The behavior out there is unacceptable,” said City Councilor Salvatore LaMattina, a Democrat who has proposed a citywide permitting system with support from public safety officials. “I just want them to respect the people that visit our city. You can’t go out there and use foul language and blast music.”

But breakdance crews and drummers, who for years have drawn crowds to the plaza around a statue of Samuel Adams, have disputed complaints about their behavior.

They say police have been pushing

them out of tourist destinations across the city but allowing them to perform at Faneuil Hall.

“We’re not the bullies. If anything, we’re getting bullied by police and the city,” Universal Fair, a member of the You Already Know crew, said between performances last week. “They say this is the only designated spot for us, and now they want to take that away from us.”

De mo c r at ic M ayor M a r t y Walsh’s office didn’t comment this week on the breakdancers’ complaints. Other opponents warn imposing a citywide system is an overreaction that could put a damper on a vibrant busking scene.

Trying to control what artists say, even if it’s considered distasteful, also infringes on free speech, a concern opponents say should have special resonance at Faneuil Hall, where Adams and other Sons of Liberty railed against British taxation, leading to the Boston Tea Party and other acts of rebellion.

“You can’t regulate an artist’s content,” said Stephen Baird, director of Community Arts Advocates,

a nonprofit arts organization. “This is one of the most historic freespeech spaces in the country, and yet, they’re trying to make it a First Amendment-free zone.”

City officials say a system that protects performers’ constitutional rights but responsibly manages public space, especially around bustling Faneuil Hall, is overdue.

William Joyce, who oversees security on city-owned property, said officers have tried to get the breakdance and drum acts to tone things down. He said there also have been complaints about marijuana, littering and crowds blocking access.

Boston repealed its laws against street performers, some of which dated to the 1850s, in 2004, after they were challenged in federal court. But Faneuil Hall Marketplace, the privately operated shopping and dining complex adjacent to the meeting house, has long had a system for permitting acts, though performers staged protests last year when new fees and other changes were proposed.

Other cities have seen recent battles over street performers, too.

New York this year approved regulations aimed at restricting costumed characters and nearly naked painted women in Times Square and other pedestrian plazas to certain designated zones.

Las Vegas did the same late last year a long freewheeling Fremont Street. Joshua Rodriguez, who has been drumming on buckets around Boston for more than a decade, said he’s concerned the current permitting and application proposal leaves too much discretion with city officials. He’d prefer a lottery system like those in place at Los Angeles’s Venice Beach and Seattle’s Pike Place Market, where artists are randomly designated performance spots and times.

Boston resident Anthony Plant said he’d be open to seeing different acts get shots at working the plaza, which he crosses at least twice a week. But he doesn’t find anything particularly objectionable about their performances.

“They’ve got jokes, but I don’t have a problem with it. It’s all in humor,” Plant said. “They’re just trying to draw a crowd.” AP

news@businessmirror.com.ph

NZ’s 2 main newspaper groups discuss merging

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ELLINGTON, New Z e a l a n d — Fa c i n g declining revenues and changing reader habits, New Zealand’s two main newspaper groups announced on Wednesday they’re discussing a merger that could end decades of competition and result in hundreds of job losses. Under the proposal, a single company would publish most of New Zealand’s metropolitan newspapers.

That would mean readers from Auckland to Invercargill would end up reading many of the same stories on politics, business and sports. If approved by regulators, the merger would combine the New Zealand newspapers, radio stations and web sites owned by Fairfax Media and APN News & Media. Both companies, which are Australia-based, are seeking to divest their New Zealand assets and form them into a new, listed company. APN publishes the country’s biggest daily newspaper, The New Zealand Herald, while Fairfax publishes the next largest dailies, The Dominion Post and The Press. The companies also own two of the largest news web sites, stuff.co.nz and nzherald.co.nz.

The companies say their businesses are complementary and the proposed merger would allow them to improve offerings to readers and advertisers. But unions and observers worry about the potential loss of jobs and diverse viewpoints.

The move represents the latest retrenchment in Australia and New Zealand, where many media companies are struggling to adjust to a rapidly changing landscape. Gavin Ellis, a media commentator and former editorin-chief of The New Zealand Herald, said the upside of the proposed merger was that it would allow the newspapers to survive longer than if the companies tried to go it alone.The downside, he said, was the reduction in the variety and voices of journalists and opinion columnists.

The two companies have a combined New Zealand work force of about 3,000. Ellis said there could potentially be hundreds of job losses as the groups eliminated duplication in everything from political coverage to sales. To complete the merger, APN plans to separate its New Zealand holdings and list them on the New Zealand and Australian stock exchanges under the name NZME. Fairfax would then fold its New Zealand assets into NZME. Ciaran Davis, the chief executive of APN, said the two companies had signed a memorandum of understanding.

The merger will need approval from New Zealand ’s Commerce Commission, which is tasked with ensuring business monopolies don’t develop.

Commission Spokesman Christian Bonnevie said it hadn’t yet received an application, which would typically take between six weeks and one year to process depending on its complexity. In a trading update on Wednesday, APN said market conditions have been challenging in New Zealand and its revenues were down 10 percent in the first quarter. Fairfax Media, Australia’s second-largest newspaper publisher, has laid off about 2,000 employees, or about one-fifth of its staff, since 2012 and erected pay walls for its flagship papers in a bid to boost revenue. AP

news@businessmirror.com.ph

The World BusinessMirror

Bernie Sanders’s West Virginia win makes up little ground on Clinton

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OUISVILLE, Kentucky— White House dreams fading, Bernie Sanders added another state to his tally against Hillary Clinton with a win in West Virginia on Tuesday—a victory that will do little to slow the former secretary of state’s steady march toward the Democratic presidential nomination.

Meanwhile, Republican Donald Trump also won there and in Nebraska, a week after he cleared the field of his remaining rivals.

They were not victories likely to heal the party’s wounds, as some GOP leaders continue to hold off offering their endorsement of the party’s presumptive nominee.

The result in the West Virginia Democratic primary underscored the awkward position Clinton and the party’s establishment face as they attempt to turn their focus to the general election.

Sanders has won 19 states to Clinton’s 23, but she is 94 percent of the way to winning the nomination—just 144 delegates short of the 2,383 required.

That means she could lose all the states left to vote by a landslide and still emerge as the nominee, so long as all her supporters among the party insiders known as superdelegates continue to back her.

Clinton needs to win just 14 percent of the delegates and uncommitted superdelegates at stake in the remaining contests, and she remains on track to capture the nomination in early June.

Still, Sanders is vowing to fight on. He campaigned in Oregon and California on Tuesday and his victory in West Virginia highlighted anew Clinton’s struggles to win over white men and independents—weaknesses Trump wants to exploit in the fall campaign.

“Let me be as clear as I can be, we are in the campaign to win the Democratic nomination,” Sanders said at a campaign event in Salem, Oregon. “We are going to fight for every last vote.”

Among those voting in the West Virginia Democratic primary, about a third said they would support Trump over either Clinton or Sanders in November. An additional 2 in 10 said they wouldn’t vote for either candidate. But 4 in 10 also said they consider themselves to be independents or Republicans, and not Democrats, according to

exit polls. W hile Sanders is still attracting thousands to rallies, his campaign has grown more difficult as Clinton closes in on the nomination. His fundraising has fallen off and so, too, has his advertising, with only about $525,000 in ads planned for California and $63,000 each in West Virginia and Oregon, according to advertising tracker Kantar Media’s CMAG. That’s a significant decline from the wall-to-wall advertising campaign he ran earlier in the primary, during which his $74 million in ads outspent Clinton by $14 million.

Edward Milam, of Cross Lanes, West Virginia, is a self-described socialist who gave money to the Sanders campaign but his vote on Tuesday to Clinton.

“After about six and seven months of debating and watching, I think Hillary has a lot more to offer than Bernie internationally,” the 68-year-old retiree said.

“I think she handles herself well.

I’ve known about her for 30 years, just like everybody else has. I don’t think there will be any surprises.”

Even as the primaries continue, Clinton has largely shifted her focus to the general election. On Monday she courted suburban women in Virginia and on Tuesday, in Lexington, Kentucky, she released a proposal to ensure families don’t spend more than 10 percent of their income on child care.

“I don’t care about what he says about me,” she said of Trump in Louisville, Kentucky, on Tuesday night. “But I do resent what he says about other people, other successful women, women who have worked hard, women who have done their part.” Clinton’s campaign hopes suburban women, turned off by Trump’s bombastic rhetoric, could be a key source of support for her in the fall.

But she’s also trying to stop Sanders from gaining the psychological advantage of a series of wins this month. Her team went up with a $160,000 ad buy in Kentucky on Tuesday, a modest effort aimed at cutting into Sanders’ support before the state’s primary in a week.

Clinton also won a primary election on Tuesday in Nebraska, although the party allocated all of its delegates to the summer nominating convention at a caucus won in March by Sanders. AP

Thursday, May 12, 2016

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Wide arrests in Egypt signal no-tolerance policy on critics

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AIRO—Hours after marching in a peaceful protest against the government late last month, Yassin Mohammed and his friends were lingering in the area in a district of the Egyptian capital when police descended on them, piled them into a minibus and took them to a police station. There, he said, he was blindfolded, handcuffed and beaten by security agents.

Now the 21-year-old Mohammed, released on bail, faces trial on charges of breaking a 2013 law that virtually bans any street demonstrations. He knows how heavy the penalty can be. Two years ago he was sentenced to a total of 17 years in prison for joining protests—and he said he nearly committed suicide in his cell out of despair until a fellow inmate stopped him.

Mohammed is among those caught up in one of the biggest waves of arrests in the past two years in Egypt, a sweep that signals a fierce zero-tolerance stance by the government of President Abdel Fattah el-Sissi over any sign of unrest.

The detentions were sparked by demonstrations against el-Sissi’s decision last month to hand over two Red Sea islands to Saudi Arabia, which galvanized activists who had been largely silenced by previous crackdowns. But activists have been startled by the scope of the arrests and how little it takes to bring severe charges, including accusations of seeking to overthrow the government or fomenting terrorism, over demonstrations that gathered only a few hundred people.

In just the last three weeks, human-rights lawyers say nearly 1,300 were detained. Most of them have been released, but 277 have been formally charged and face trial, according to Mohammed Abdel aziz, a rights lawyer who has been tracking the arrests and is representing 20 of the detainees.

In recent speeches, el-Sissi has demanded that all criticism of the handover of the islands stop. He

1,300 The number of people detained in Egypt in just the last three weeks, according to human-rights lawyers

told a visiting United States congressional delegation that human rights issues in Egypt should be not approached from a “Western perspective” because of the challenges it faces, including a fight with an Islamic militant insurgency.

El-Sissi also increasingly repeats that Egypt faces existential threats from “evil forces” or “evil people” conspiring to push the country into chaos and bloodshed like Syria or Iraq, though he has never explained what these forces are.

“It is like an old dam and the state is worried that allowing one crack to open will unleash a flood. The regime has no solution except suppression,” said rights lawyer Gamal Eid. Besides charges of violating the protest law, detainees often face other, broad and undefined charges, inc lud ing spread ing propaganda that harms security and hurting or disrupting national unity, security or social peace.

In recent days, police arrested five members of a satirical street performing group that produces videos on social media mocking el-Sissi. One of them, 19-year-old Ezzedeen Khaled, was detained Saturday and, though a court ordered

his release on bail, was charged with inciting protests and posting videos containing foul language and insults directed at state institutions, according to his lawyer, Mahmoud Othman. The remaining four were arrested Monday and have been slapped with an even heavier charge of inciting terror attacks and protests.

A prominent rights law yer, Malek Adly, who had filed a legal suit against the decision to hand the islands to the Saudis, was arrested last week and is under investigation for a range of allegations, including attempting to overthrow the government. Another lawyer, Ahmed Abdullah, who had been advising the family of an Italian student kidnapped, tortured and killed in Egypt earlier this year, was arrested last month and has been charged with a long list of accusations including membership in a terror group and inciting protests.

On April 25, when activists called for protests against the islands’ handover, police appeared to sweep up any young men who they believed intended to join in or were just in the area of planned demonstrations. Abdel aziz said that among the 20 defendants he represents are young men who were detained just for being at the wrong place at the wrong time or because antigovernment material was found stored on their mobile phones. Others, he told The Associated Press, were picked up from downtown Cairo cafés, a favorite hangout for secular activists.

Mohammed told the AP he and his two friends were detained well after the day’s marches were dispersed. They were still in the area looking for other friends who were missing. Mohammad had previously been sentenced to a total of 17 years in prison in two separate cases for involvement in protests. A 15-year sentence handed down in one of the cases was reduced to three years in a retrial. He was then pardoned for that case last September, but his appeal against the remaining 2-year sentence in the second case was rejected last month. So he now faces that prison term and a trial on the new arrest.

“Nothing is really achieved by arresting me and others,” he said. “It is the other side that is losing the

love of the people when they arrest anyone they see.” Another of those arrested said he and several friends were detained six hours before the protests were to start on April 25, when they arrived in the area.

“We parked our car and started to walk looking for a place where we can eat breakfast. Five minutes later we were cordoned off by police and detained,” he said, speaking on condition of anonymity to avoid further police retaliation. The 26-year-old said he was taken to a riot police base on the city’s outskirts where he was interrogated and beaten. He was released on bail and faces charges that include seeking to overthrow the government.

El-Sissi and government officials have argued that strict measures are necessary at a time when Egypt is battling Islamic militants based in Sinai and trying to repair an economy gutted by years of turmoil since the 2011 ouster of autocrat Hosni Mubarak. Hundreds of policemen and soldiers have been killed by the militants—most recently eight policemen gunned down this week in an attack on the southern outskirts of Cairo.

Officials and the media also drum up vague fears of threats to the nation. Cairo airport officials often report the seizure of “spy” drones and secret cameras found hidden in the luggage of arriving foreigners, but there’s never any further word on the “spies” or the nations behind them. Newspapers often speak of unidentified conspiracies and enemies. Hosts of political TV talk shows nightly engage in conspiracy theories complemented by incitement against government critics.

“Sadly, there is a significant level of social acceptance for these arrests because of the fear-mongering by el-Sissi and his loyalists in the media,” Abdel aziz said.

El-Sissi still appears to enjoy widespread public backing, though it has shown some erosion.

The Egypt-based polling agency Baseera, one of the few that conducts polls in the country, said its latest survey in April showed 79 percent approve of el-Sissi’s performance, though that was down from 85 percent in November. The poll surveyed 1,541 people above the age of 18 with a margin of error of 3 percent. AP

16 West Point cadets in raised-fist photo won’t be punished–USMA

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EW YORK—Sixteen black West Point cadets, who posed with raised fists for a pregraduation picture that sparked debates on race and proper behavior in uniform, won’t be punished for the gesture, the United States Military Academy (USMA) said on Tuesday.

The decision, less than two weeks before the 16 female seniors are poised to graduate, found they didn’t violate military rules limiting political activity.

An internal inquiry found the cadets didn’t plan to make a political statement, West Points Superintendent Lt. Gen. Robert Caslen Jr, said in a letter to the student body.

But, he said, they showed “a lapse of awareness in how symbols and gestures can be misinterpreted and cause division,” and they will receive instruction to address “their intent versus the impact of the photo.”

The fists-up image, which circulated online, led some observers to question whether the women were expressing support for the Black Lives Matter movement, which grew out of protests over police killings of unarmed black men.

But the inquiry found the picture, among several the women made in keeping with an informal campus tradition, captured a spur-ofthe-moment gesture intended to demonstrate unity and pride in graduating, Caslen wrote. Groups of cadets often take Old Corps pictures in traditional dress uniforms to echo historical portraits.

A raised fist has symbolized political resistance for generations, from Nelson Mandela upon his release from prison in 1990 to Democratic Vermont US Sen. Bernie Sanders on the presidential campaign trail this year. It was used by black power advocates in the 1960s, including by two American sprinters during a medal ceremony at the 1968 Mexico City Olympic Games, and more recently by activists for the Black Lives Matter movement.

Some observers suggested the women were improperly identifying with the movement while in uniform. Defenders said the women were simply celebrating their forthcoming graduation, something closer in spirit to a team lifting helmets to celebrate a win or Beyoncé raising her fist at this

year’s Super Bowl halftime show.

“Their frame of reference is: ‘Right now, we’re getting ready to graduate in three weeks. I’m standing here with my sisters,’” said Mary Tobin, a 2003 West Point graduate and mentor who spoke to the students after the photo was taken in late April and to some of their relieved relatives on Tuesday.

Some critics of West Point’s inquiry said the black women, who represent less than 2 percent of the graduating class, were being held to a different standard than other cadets.

“Will there ever be a time when black women can unapologetically show that they are strong proud and supportive of one another without their action being interpreted as an act of militant defiance?” Essence magazine editor-inchief Vanessa De Luca asked in a Wall Street Journal op-ed this week.

Indeed, Caslen noted that other cadets have used clenched fists to show support for a team or pride at serving their country. So did he, along with hundreds of West Point staffers and graduates on the night before last year’s ArmyNavy football game, he added. AP

THIS undated file image obtained from Twitter on May 7 shows 16 black female cadets in uniform with their fists raised while posing for a photograph at the United States Military Academy at West Point, New York. The US Military Academy said on May 10 that it concluded the group photo didn’t violate any Department of Defense rules limiting political activity. AP

A10 Thursday, May 12, 2016 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

Toast to the people who gave us credible polls

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RESIDENT Aquino deserves a standing ovation for the successful, peaceful, honest and orderly May 9 elections. Under his watch, the Philippines has shown to the world that Southeast Asia’s oldest democracy can still stage credible elections.

Mr. Aquino proved his detractors wrong by not doing what they fear he would do: A “high-tech hello, Garci” or “hocus-PCOS” to ensure the victory of his presidential bet and, thus, protect himself from the threats of jail when he leaves Malacañang in June.

The Commission on Elections (Comelec) also deserves a pat on the back for a job well done. Ironically, the poll body got a lot of bashing on election day for some malfunctioning vote-counting machines (VCMs) that delayed voting in some precincts. There were even suspicions that the Comelec would corrupt the electoral process with VCMs that were preprogrammed to count votes for the administration’s favored presidential bet. That would mean tampering more than 97,000 VCMs deployed nationwide for the elections. Suspicions aside, these sensitive machines were stored in ovenlike rooms. We are lucky only 150 of them conked out.

We also have to give kudos to the Parish Pastoral Council for Responsible Voting and the thousands of PPCRV volunteers who have done a heroic job not just on election day, but also during the registration period with their voters’ education program. That the PPCRV has made public all unofficial counts and showed the results of the elections as they come in made the May 9 polls transparent in the public’s eye. The whole nation must, likewise, applaud the efforts of our men in uniform —the Philippine National Police and the Armed Forces of the Philippines—who were deployed nationwide to ensure that our elections are safe, peaceful and secure.

In like manner, our hats off to the four unsuccessful presidential candidates—Vice President Jejomar C. Binay, Sen. Miriam Defensor-Santiago, Sen. Grace Poe and former Interior Secretary Manuel A. Roxas II—for accepting defeat with dignity. For the first time in Philippine politics, the public heard concession speeches from losing candidates.

The loudest applause, of course, is reserved for our teachers, who assisted in the voting process. Here’s how a netizen paid tribute to them: “To the unsung heroes not just today, not just every election day, but in every single day that you’ve dedicated your life to help build a nation of hope, even if it means sacrifices of all sorts, a big tight hug to the teachers [and the volunteers] who spent crazy hours to facilitate a fair and honest election. May your dedication resonate in the credible results of the May 9 polls!”

Teachers are the most trusted public servants in our country. That’s the reason more than 233,000 of them were deployed nationwide on May 9 to assist in the voting process. They attended to voters’ concerns in their designated precincts with care, and made sure the voting process remained orderly. The whole country must laud these teachers, who sacrificed their time and risked their lives to serve us, the voters. But after we give them credit, here’s hoping the next administration will give our teachers the special attention they deserve.

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The PSE: It’s all Duterte’s fault John Mangun

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OUTSIDE THE BOX

HE Philippine stock market was basically down for 16 trading sessions, from April 15 until the national election. The composite index (PSEi) was basically down for seven straight weeks before the elections. The PSEi has been in a negative trajectory for 13 months prior to the elections.

For the two trading sessions since the elections, the index has risen by 5 percent, the largest two-day increase since 2013.

You are welcome to attribute any or even all of these moves to “profound fear of a Duterte presidency,” “joyful anticipation of a Duterte presidency,” or anything else that makes sense to you.

US Rep. Earl Landgrebe—a staunch supporter of then-President Richard M. Nixon, who was facing impeachment—said dur-

ing the Watergate break in coverup investigation hearings, “Don’t confuse me with the facts.” The next day, Nixon announced his resignation.

Discussing stock-market moves in light of external events in both the short and the long term is a horse that has been dead for too long. People are going to believe what they want to believe and are going to find “facts” to support their rationalizations. That is what we as human beings do very well.

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Different cultures throughout history have explained solar eclipses as the result of: hungry demons, a bear eating the sun, a quarreling sun and moon, and mythical dogs trying to steal the sun.

Imagine you are the first person to observe a solar eclipse. Prewritten history humans probably had enough to worry about for daily safety that a solar eclipse, which didn’t seem to want to eat them, was not much to fear. Further, a guy running around with a banana leaf covering his private parts also probably knew he had no chance of figuring out what caused the eclipse.

What his first thought might have been is, how could anything this unusual happen? That is often the reaction when the stock market suddenly makes a U-turn either up or down.

How could the Philippine Stock Exchange (PSE) go up in basically a continuous trend for six years and three months, and then suddenly start down? It must have been because President Aquino came and

rang the opening PSE bell.

Yet, no one would be shocked if a car suddenly went from 60 kph, and then rolled to a stop. The driver took a foot off the accelerator and stopped giving fuel to the engine.

What is confusing about that? Further, in examining the event, you might not question the reasoning for the driver making that move.

Trading volume is the absolute critical key to understanding market moves. The PSEi was destined to retreat from the 2015 high. The monthly trading-volume trend went flat, and then started decreasing when the PSEi hit 7,200. The last 1,000 upside points was the market rolling to a stop.

The last three weeks have been a period of low trading volume. The last two days have seen daily volume that we last had before April 15.

E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com.

Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

Tapping into the AEC’s potential under Digong

Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Efleda P. Campos

Online Editor Social Media Editor

Chairman of the Board & Ombudsman President VP-Finance VP-Corporate Affairs VP Advertising Sales Advertising Sales Manager Group Circulation Manager

05122016

Val A. Villanueva

BUSINESSWISE

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HE most divisive Philippine election to date is over, and Davao Mayor Rodrigo “Digong” R. Duterte has been given the electorate’s mandate to be the country’s president for six years. As of this writing, Liberal Party vice-presidential bet Camarines Sur Rep. Ma. Leonor “Leni” G. Robredo has overtaken the lead of the late dictator son and namesake, Ferdinand “Bongbong” R. Marcos Jr., and is a cinch to win the second most powerful seat in Malacañang.

Business has, so far, been clueless about how Duterte will rule the country in the absence of a clear governance platform from his camp. He has, however, promised to tap the country’s most qualified technocrats to advise him on economic, security and foreign policies to be implemented during his term.

Duterte’s ascent to power comes at the time when the Asean Economic Community (AEC) is slowly evolving to rival that of the European Economic Union (EU). The AEC came into effect in December last year, and it would be interesting to see how Duterte will navigate the country in taking advantage of the region’s combined GDP of $2.65 trillion. This immense economic prospect under the AEC is simply too good to pass up, and it is up to Duterte and his would-be economic managers to harness. The 10 member-nations of the Asean have

ironed out the AEC’s fundamentals, but its full-scale roll-out is still in its early stages.

The AEC seeks to integrate the region into a single market and production base to transform Southeast Asia into a vastly competitive region; safeguard equitable development across the Asean; and assimilate it into the global economy. Once fully implemented, the AEC foresees free trade in goods and services, investment liberalization, and the free flow of skilled labor.

Duterte will inherit a robust economy nurtured by the Aquino administration. The Philippines under Mr. Aquino has become the darling of foreign investors with a 6.2-percent average growth rate, the biggest since the 1970s. President Aquino’s critics, however, believe that this economic bonanza has not trickled down to the marginalized sectors of society, and that

the prospect of inclusive growth remains a dream.

Duterte promises to curb corruption, criminality and spruce up the sorry state of the Philippines infrastructure system. He believes that these problems are what shackle the country and prevent it from achieving lasting prosperity. Albeit controversial, his extrajudicial methods in dealing with crime have been embraced by a voting public that is mesmerized by his tough warlordtype valedictory.

His foreign policy has also been questioned in light of his combative remarks to the Australian and American diplomats who called him out when he allegedly joked that, as the city mayor, he should have gone “first” when “the beautiful” Australian missionary, who was eventually murdered, was raped during a prison break in one of Davao’s penitentiaries a few years ago. Business now wonders how he would make amends and make himself worthy of international praise, just like what Mr. Aquino has accomplished.

The Philippines cannot afford to miss out on the huge economic potential that the AEC brings. Without doubt, Duterte needs seasoned foreign affairs and economic lieutenants to help him convey the country to socioeconomic progress that the AEC is envisioned to bring to the Asean region.

Unlike the EU, the AEC seeks for an economic and financial integration bereft of a monetary union or

political amalgamation. It is by far Asean’s grandiose undertaking, which is expected to boost the region’s GDP by 5 percent by 2030.

The growth enhancement should be felt over the next decade, as contingencies are steadily being implemented through the AEC Blueprint 2025. This is the map on how the bloc will endure while working toward a unified economy between 2015 and 2025. But what makes the AEC even more interesting is the Asean Single Window, a regional initiative to accelerate cargo clearance which has already been established by some Asean countries and will help to simplify the trade of goods.

Financial integration and capital-account liberalization will propel economic rebalancing within Asean toward the AEC’s goal of evenhanded and all-encompassing development. This coordinated approach might be tough to reach because, without political assimilation, the Asean has a much punier institutional framework to guarantee that requirements are met.

Before the region can realize stronger integration and profit from it, the Philippines is expected to chime in its inputs on how best to implement improvements, not only to the AEC but to Asean as a whole.

If he plays his cards well, Duterte can use the AEC as a viable venue to rebrand his “caricaturized” image in the international arena.

For comments and suggestions, e-mail me at mvala.v@gmail.com.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Brother, spare me a dime, or else…

Tutored by the Holy Spirit Msgr. Sabino A. Vengco Jr. Noah Feldman

BLOOMBERG

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AWS that ban street begging often are challenged as a violation of First Amendment free-speech rights. Appellate courts are divided on the question, and the Supreme Court has never answered it definitively.

But in the last year, courts across t he cou nt r y have be gun striking down laws against panhandling on the ground that they prohibit certain speech on the basis of its content. The reason is a major Supreme Court decision from last year that barred an Arizona town from using content to distinguish between different types of temporary signs erected on public property.

As a matter of morality, I think it’s usually a mistake for cities to suppress begging, which serves as a reminder to us that our society hasn’t solved some basic, serious social problems. But I don’t think the high court case, Reed v. Gilbert, necessarily has the consequences that the lower courts have been attributing to it.

The government is allowed to prohibit a course of conduct that happens to involve speech. And there’s no clear constitutional reason panhandling should be uniquely protected, while harassment and fraud and blackmail are not.

Let me start with the law the way it existed before 2015. The basic idea of the First Amendment was understood to be that the government couldn’t prohibit speech based on disapproval of its message. It could, however, prohibit behavior—a course of conduct—that might be associated with certain messages.

Thus, for example, Justice David Souter, who in his “retirement” still sits on cases in the US Court of Appeals for the First Circuit, wrote an opinion for that court in 2014 upholding the anti-panhandling ordinance of Worcester, Massachusetts.

The Worcester law bans “aggressive” panhandling.

Souter’s careful opinion acknowledged that “panhandling and solicitation of immediate donations convey messages of need, and waving placards at traffic islands may often be political expression.” But he explained that this wasn’t the end of the matter.

So long as the government’s purpose was to prohibit the aggressive behavior, not to disfavor the political message that panhandling carries, the law was permissible.

“Even a statute that restricts only some expressive messages and not others,” the former justice wrote, “may be considered content-neutral when the distinctions it draws are justified by a legitimate, noncensorial motive.”

Souter’s position makes a lot of sense—because it explains why the government can, for example, prohibit harassment, including harassment that takes place on a public street. The government’s aim is to prohibit a behavior or an action, namely, harassing someone. The government isn’t aiming to suppress speech—even though in some sense, the government is targeting speech on the basis of its harassing content and therefore saying it doesn’t like it.

Enter Justice Clarence Thomas, free-speech absolutist. In last year’s Reed case, he wrote for the majority of the court that “regulation of speech is content based if a law applies to particular speech because of the topic discussed or the idea or message expressed.” That sounds plausible, and compatible with existing law.

But Thomas went on to say that it didn’t matter whether the government was defining speech by its subject matter or by its “function or purpose.” Either way, Thomas wrote, a restriction based on content was

The government is allowed to prohibit a course of conduct that happens to involve speech. And there’s no clear constitutional reason panhandling should be uniquely protected, while harassment and fraud and blackmail are not. subject to the highest form of scrutiny and would therefore ordinarily be struck down.

Lower courts have been reading this statement to mean that a city can’t prohibit panhandling because that would mean prohibiting speech on the basis of its content. Thus, the US Court of Appeals for the Seventh Circuit, which had previously upheld the anti-panhandling law of Springfield, Illinois, reversed itself after the Supreme Court’s Reed case and struck down the ordinance.

Judge Frank Easterbrook—a Reagan appointee who is the author of some important free-speech decisions—wrote that it no longer mattered whether the government intended to suppress a certain message. “The majority opinion in Reed,” he said, “effectively abolishes any distinction between content regulation and subject-matter regulation.”

Easterbrook also noted that the Supreme Court vacated Souter’s Worcester opinion and sent it back to the First Circuit for reconsideration after its Reed decision.

Could Easterbrook be right that the Reed case effectively prohibits any ordinance that targets any speech at all based on its content? If he is, then the consequences would seem to be very strange and extreme.

Consider laws that make harassment, fraud and blackmail—all activities that can be performed entirely via speech—illegal. Are those laws now constitutionally suspect?

If so, the government would, in every instance, have to prove that it had a compelling interest in prohibiting the behavior, and that it had narrowly tailored its law by adopting the least restrictive means possible.

In the case of verbal harassment, that might be difficult, especially since most local harassment ordinances are drawn quite broadly.

In the case of fraud and blackmail, it might be easier to prove a compelling interest. But how many such laws are very narrowly tailored? There are many instances of criminal statutes that could be drawn more narrowly than they currently are.

The other possibility is that the Reed decision wasn’t intended to stop the government from outlawing a course of conduct that is put into action through words. The facts in the Reed case had nothing to do with conduct. The sign ordinance that the court struck down simply treated different temporary signs differently based on what they said.

If that’s right, then a law that bans all panhandling could be perfectly constitutional, because what’s being banned is the conduct of begging, not the content of the speech. Laws against harassment, fraud and blackmail wouldn’t be treated as contentbased either.

There’s still something morally troubling about banning people from saying that they’re in desperate need and want money. But the First Amendment shouldn’t be read in such an absolute way—and if it is, the consequences for the rest of our law are apt to be disastrous.

ALÁLAONG BAGÁ

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HEN God sends out His Spirit, the world is created anew and the face of the earth renewed (Psalm 104:1, 24, 29-30, 31, 34). To those united with Him in love, Jesus promised the Holy Spirit from the Father to teach them everything and to be with them always (John 14:15-16, 23b-26).

Renew the face of the earth

PSALM 104 begins with a normal summon to acclaim the greatness of God, but this time in a self-address call: “Bless the Lord, O my soul!”

What is here translated as “soul” (nepesh, “breath”) refers to every aspect of a person’s being from that center within the person from which all life forces flow. Wholeheartedly and in entirety, a person can only praise the greatness of God as seen in creation and in the order that exists in the universe; all things give evidence to His glory. The diversity and complexity of the natural world are marvelous as they manifest the power and the wisdom of the Creator

(Proverbs 8:22-31; Wisdom 9:9). The invisible God is perceived in the grandeur of creation and is described as if robed in majesty and glory.

And creation is not just an event completed in the distant past, but an ongoing event and a personal experience. God’s act of creation and unceasing divine providence sustaining all creatures are discernible in the renewal of life taking place before our eyes. When the breath of life is taken back, a creature returns to the dust whence it was taken (Genesis 2:7; Job 12:10). God not only creates but recreates in sustaining and perpetuating life. The “spirit” (ruah) is the same word found in the story of the

Thursday, May 12, 2016 A11

first creation where a mighty wind swept over the waters (Genesis 1:2).

The same spirit and power of the Lord can bring about a new creation and a renewal of the old. May this “glory of God” endure forever, the psalmist prays, as he promises to devote himself to the praise of the Lord.

In the power of the Holy Spirit

JESUS’ fundamental message of love means a love that is self-sacrificing, the way Jesus Himself has loved.

Those who follow His example and keep His commandments truly love Him. In such union of love, Jesus will ask His Father to send another Advocate, the Holy Spirit, who will remain forever with His followers.

As Jesus Himself has been the Advocate in relating to the Father in this world, so now, that He is about to leave them to return to God’s glory, another Advocate will be coming who will never leave them.

Loving Jesus means keeping His word, which is actually the word of the Father who sent Him. That is why the Father will love those who love Jesus and keep His word and follow His commandments. And Jesus and the Father will come to them and make their dwelling with them, in

Change with the same face Teddy Locsin Jr.

FREE FIRE Continued from A1 So listen to this. Ignore the suggestion that the new government should be a combination of continuity and change. Sure, there are things that must continue; they are part and parcel of the structure of our world; like the “conditionalities” imposed by the World Bank-IMF on Marcos for stealing the country blind. The World BankIMF continued them after Marcos left because we the people let him steal the country blind when we

could have stopped him.

And the proof that we could have stopped him is that we did—in 1986, when we should have done it the day after martial law was imposed on September 21, 1972.

These structural things are anyway the exclusive domain of the Bangko Sentral run by the best central banker today. Those things aside, all the rest must change, because all the rest is what you promised.

No more stealing, no more borrowing, no more smuggling, and far less duties and taxes; no more

crime, no more drugs, and far less criminals alive—the big and even more the petty ones that prey on the small. A foreign intelligence officer said to me, “Your cops know all the criminals and all about the crimes because for the most part they are criminals.”

All we have to do is tell the cops, “Okay double your pay and spare your life by taking out everyone bad you know. Give them a minute to decide but keep your finger on the trigger—you never know. Offer peace to the communists and social justice for all—that is the only reason they fought the republic at all.

Be the man who ended the longestrunning insurgency in history.

Kick out the foreign diplomats who suggested, and the peace panel that proposed, carving out a homeland for Islamic terrorists so they will leave neighboring countries like

an abiding presence and intimacy.

Those who do not keep the word of Jesus do not really love Him, and the Father and Jesus will not make their dwelling with them, and the Holy Spirit will also not be with them. It is only in union with Jesus and His Father that the Advocate will be available who will teach the believers everything and keep the word of Jesus alive in them.

Alálaong bagá, the Holy Spirit, the greatest gift of the Father and of the Son to us, is the determinant person in the life of every Christian on the way to eternal life. Because of the Spirit who is in us, we live the life of the risen Christ and share already in His intimacy with the Father. The gift of the Holy Spirit that comes to us in baptism has initiated us into a new life in the communion of the Triune God. With the coming of the Holy Spirit, the world is charged with divine energy; tutored by the Holy Spirit, the “katipunan” (assembly) of Christians are activated as evangelizers in the renewal of the world.

Join me in meditating on the Word of God every Sunday, 5 to 6 a.m. on DWIZ 882, or by audio-streaming on www.dwiz882.com.

Malaysia alone.

Cut the red tape, pare government down to bare bones, equal speed for equal pay for all Wi-Fi— all fast or all slow, no premium for those who can pay more. Punish the telcos, abolish the Customs bureau, cut taxes on the salaried, leave the honest rich alone, and repeal the withholding tax to equalize the opportunity to question taxes across the board.

And, finally, call Sumitomo and say, “So solly foh tulning ova a pahfack-lee woking EM AL TEE to a talyer in Paniqui. Please take it back.”

Do those and the other things you promised. Not by the end of six years but, with regard to crime, as early as three and no later than six months. Then the people will know that the change that was coming has arrived; but not—no not—with the same old faces as before.

Clinton has a weakness; that’s Trump’s only hope

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B F W | BloombergView

HERE are two ways that Donald Trump can become president. Either he must become significantly more popular among general-election voters. Or his likely opponent, Hillary Clinton, must become significantly more unpopular.

It won’t take long for Trump to figure out which is the more promising path.

Right now, flush with optimism after a stunning victory over more than a dozen primary foes, Trump’s campaign has both goals in sight.

Trump is hoping to rally conservatives and independents behind his candidacy. In his victory speech after the Indiana primary last week, Trump magnanimously refrained from calling defeated Sen. Ted Cruz a liar, or implying that Cruz’s father aided the assassination of an American president. It was a veritable charm offensive.

Yet, there are stark limits to Trump’s appeal. His genuine political talent is utterly divorced from anything resembling wisdom. He remains offensive to multiple blocs of voters and ignorant of public policy. His unfavorable ratings—especially the number of Americans who hold a “strongly unfavorable” view of him—are, as Harry Enten of fivethirtyeight. com wrote, from “another planet.”

In polling from late March through late April, Enten reported, Trump’s aggregate “strongly unfavorable” figure was 53 percent. That is, by spring, a majority of Americans were already strongly opposed to him. If you add his strongly favorable (positive) rating to his strongly unfavorable (negative) rating, the

net is overwhelmingly negative, about minus 40.

Mario Cuomo said that successful politicians campaign in poetry but govern in prose. Trump campaigns in Fahrenheit, but polls in Kelvin.

The one relatively warm spot for Trump in a chilly electorate is Clinton. She, too, is unpopular.

Add her strongly favorable rating to her strongly unfavorable, and Clinton nets about minus 20. It’s not other-worldly like Trump’s.

But it’s bad.

The question for Trump, then, is how to exploit her weakness.

Clinton has been subjected to a quarter century of political and personal attacks, many of them vicious, more than a few outlandish. For every smear of President Barack Obama as a Kenyan anticolonial socialist or terrorist enabler, Clinton can probably cite two similarly inspired delusions—that she killed White House aide Vincent Foster or, for reasons no one ever seems able to explain, that she preferred to let a handful of Americans die in Benghazi rather than use her powers as secretary of state to protect them.

But the differences between Obama and Clinton are at least as telling as the similarities. More than half of Americans consistently have rated Obama “honest

The vast right-wing conspiracy against the Clintons is no dark fantasy. For more than two decades, it has been a concrete blot on the political landscape.

Her resort to private e-mail was in all likelihood an effort to dodge those prying partisan eyes. Avoiding one trap, she entered another.

and tr ust wor thy” dur ing his presidency. Of nine Gallup measurements taken between 2008 and 2015, Obama fell below 50 percent only once, in 2014. In April 2008, the spring of his first campaign for president, 60 percent of Gallup respondents said Obama was honest and trustworthy.

By contrast, in a March 2016 Washington Post/ABC News poll, 37 percent of adults agreed that Hillary Clinton is honest and trustworthy, and 57 percent said they don’t think she is. Even Democrats aren’t sold. In Wisconsin, where Bernie Sanders defeated her on April 5, exit polls showed only 57 percent of Democratic voters rated her honest and trustworthy. Two weeks later in her home state of New York, which she won, only 60 percent of Democrats leaving the polls said she was honest and trustworthy.

Neither Sanders in 2016, nor Obama in 2008, aggressively attacked Clinton’s integrity. She finds herself in this hole as a result of conservative attacks on her and of doubts she raised by her own actions. History weighs on her.

Clinton’s six-figure speeches to

Wall Street, after she left the Obama administration, ring the cash register a bit louder because they echo the questions dating from her trading of cattle futures, in the late 1970s. Her use of a private e-mail server while secretary of State, and the convoluted excuses it has engendered, is reminiscent of previous instances when this strikingly intelligent, detail-oriented professional claimed, in so many words, to be relying on the kindness of strangers.

The vast right-wing conspiracy against the Clintons is no dark fantasy. For more than two decades, it has been a concrete blot on the political landscape. Her resort to private e-mail was in all likelihood an effort to dodge those prying partisan eyes. Avoiding one trap, she entered another.

At Clinton’s landmark April 1994 White House news conference on Whitewater and “Hillarycare” and cattle futures and whatever else fit the catch-all portfolio of this path-breaking first lady, a reporter asked, “Is there a fundamental distrust of the Clintons in America?”

The question, 22 years later, is still live. Trump is unlikely to gain traction against Clinton arguing about experience or temperament or preparedness or ideas.

She overwhelms him on every count. Given his voluminous record of falsehoods, breathtaking at the presidential level of politics, he probably can’t win a contest on integrity either. But Trump is a very successful bully. He intuitively understands weakness. He will find a way to hurt her.

2nd Front Page BusinessMirror

Tuesday, April May 5, 12,2016 2016 A12 Thursday,

www.businessmirror.com.ph

US SecDef coming to observe ‘Balikatan’ First president from Mindanao seen ... bringing discipline to the whole PHL

U

B R A

NITED States Defense Secretary Ashton Carter will flyT. C to |Manila to B M

personally witness the war gamesAVAO involving more first thanpresident 7,000 CITY—The from Mindanao is expected Filipino and American troops.

D

Mindanao Bureau Chief @awimailbox

to bring his own trademark of Philippines continuously voice It will be the first time for a US discipline that gained international their concerns over China’s agdefense secretary to fly to Manila attention for Davao City, where he in the gressive military activities for the bilateral exercise.

West Philippine Sea. The presence of Carter in the implemented a relentless anti-illegalToolan said, aside from the Exercise Balikatan, an annual milireaffirmation tary eventcampaign testing the joint that capa- has drug earnedof the forPhilippinehim US defense relations, Carter also bility of the Armed Forces and the the “Duterte Harry.” wanted to see how the highUnitedmonicker States military to respond to

regional crisis, was confirmed by US Marine Lt. Gen. John Toolan Mayor Rodrigo R. Duterte’s announceduring the formal opening of the ment that he wanted to widen his discipline war games on Monday. campaign, which includes a liquor ban and “The secretary is going to be here curfew, from Davao City to the whole Philtoward the end of exercise and ippines has earned for the the president-elect he will actually observe a couple of mounting resistance among netizens. things he’s very interested in…I beA social-media post in reaction to lieve that really, policies his maincurtly purpose these impending told Duterte offand yourreaffirm curfew,” a comhere is “to to f_ck come that ment that should remind the have mayorwith how the relationship that we some Davaoeños, mostly nightowls, inithe Philippines is rock solid, and tially hehe started we’rereacted side bywhen side,” said.banning alcohol sales beyond 2 a.m.

1994.

Carter’s presence ininthe BaSimilar reactions were heard at the City likatan would be the first for a Council when Duterte asked the august US defense official and it would body in 2002 to issue ordinances prohibcome as both the US and the

mobility artillery rocket system works, especially that it would iting the sale and use of firecrackers and be the first time also that the US fireworks during the Yuletide season and would use it in its joint training to welcome the New Year. with theDuterte country.

When implemented a speed The weapon would be fired live limit in Davao City to prevent vehicuat Crow Valley Tarlac, along lar accidents, hisin detractors calledwith the the other“driving equipment that theofUSa campaign at the speed funeral hearse.” will bring in.

“What I mentioned earlier about the high-mobility Business reactionartillery rocket system and office how that said THE regional of theworks,” Department of Tourism unhappy with“He’s the curfew Toolan ofwas Carter’s visit. also and liquor ban insome Davaotime City back going to spend out atthen. sea It argued against with the US Navythese shipsmeasures that willthat be will foreign tourists to visit out“discourage there.” our Toolan city.” Bringing matter to thewho City said the it was Carter

Inflation

C  A

concern, “especially those that happen sleepy sight for the absence of fireCouncil, it argued that these moves will due to the influence of alcohol.” Killings cracker casualties. adversely affect tourism revenues. over petty cases of unfriendly stares from A councilor attempted to amend the But Duterte did not budge an inch. nearby tables, or quarrel over their turn ordinance on the ban of firecrackers and Occasionally, he would drive around to on the karaoke, would occasionally erupt. fireworks by allowing a controlled area see how these measures were being im“Worse things happen when alcohol for fireworks displays. To no avail, the plemented by business establishments. is mixed with shabu,” he warned. association of businesses in Bocaue, BuToday, Davao City has become a parSmokers have also learned to adjust lacan, has also repeatedly appealed to agon of discipline. In 2014 the National to the ordinance prohibiting smoking Duterte to reconsider his policy because Economic and Development Authority inside bars and tourism establishments. the ordinance also banned the transport (Neda) said the city, including the rest In later amendments to the smoking ban, of these items. of Davao region, “achieved 21 percent the Task Force Smoking Ban has clarified of the Department of Tourism target for that the policy required all business esdomestic tourist arrivals and 30 percent tablishments to remove smoking rooms for foreign tourist arrivals.”

THE most controversial drive in Davao City and designate smoking areas not less “The tourism sector was able to sustain is the mayor’s non-negotiable campaign than 5 meters from all points of entryits growth for the first quarter of 2014 at against illegal substance. For a good ways and exits.

3 percent,” the Neda said. glimpse of how this campaign would Griping nightowls, however, have comlook like when implemented nationally, plained that nightlife in the city has become Duterte pointed out again and again that so short as business establishments would he will be harsh. In his campaign in Davao SINCE 2002, the tally sheet of the Departask for the last order at 1 a.m.

City, the mayor has repeatedly warned: ment of Health in Davao City has been a Last year Duterte changed the city“Those who would put up a shabu laboraperfect zero as far as casualties during wide curfew to 1 a.m., sending people to tory here would not leave this city alive.”

New Year festivities are concerned. That’s explore options, such as driving to nearby “I will tie them to their machines because the firecracker ban has been Samal Island, to continue their drinking and burnexercise them, (from and left) I willAFP invite strictly observed.

BALIKATAN 2016 leaders lock arms to show solidarity at the commencement of the military bilateral training Vice the spree and merriment until sunrise. Samal human-rights people to witness the There was Gazmin, a case insecretary 2004 when a pa- Defense Admiral Alexander Lopez, Philippine exercise director; Voltaire of National Philippines; Undersecretary Jesus I. Island is in Davao del Norte, and could be event,” he said. tient who hurt himself after lighting a Yabes,reached representative of Jose Almendras, secretary of Foreign Affairs; His Excellency Philip Goldberg, US Ambassador to the Philippines; easily in less than 30Rene minutes via One of his campaign footage shows firecracker hurriedly left the hospital afGen.24-hour Hernando DC Iriberri, the barge service.AFP chief of staff; US Marine Lt. John Toolan, US exercise director. MAU VICTA him saying, “My God, I hate drugs.” ter getting basic treatment of his wound.

Duterte would periodically explain He was warned by visitors that Duterte his policy, to thus: “There always a way control in warfare. it is, this exercise…so that’sthose why wanted visit theis war games, would be coming over to inspect for you to enjoy theup Davao night 14 and life. You “We’re going to work on that comhe’s coming,” the US Marine genwhich will run to April who were hurt by firecrackers. can continue drinking home.” mand and control apparatus so that eral said.

Other than the use and would be joined byatAustralia and In all the succeeding Christmases “That way, by yourthe family would always firing rockets, Toolan, emersaid communications can be made very witnessed militaries of and NewofYear’s Eve festivities, be assured that you are safe with friends, gency rooms and governwhat is new of inprivate this year’s trainquickly and we can get response Southeast Asia. even if you drink till morning,” he said. ment hospitals inofDavao City were a ing is the use command and forces,” he said.

“He realized how important Crime prevention, however, is his main

Crime-busting

Silent Yuletide and New Year

I n p a r t ic u l a r, t he Board decided BUSINESSMEN in Davao City are to maintain the BSP’s keybenefiting from the mayor’s anticrime campolicy rates at 4 percent for paigns. said the peaceful environthe They overnight borrowing ment greater opportunities or gives the them reverse repurchase with the influx of international busi(RRP) facility and 6 percent nesses. Business leaders in this premier for the overnight lending or southern seaport said they are used to the the repurchase (RP) facility. hearing mayor curse when something Thehim interest makes angry. rates on term RRPs, and were alsoand “It’s his RPs way to beSDAs more empathic kepthis steady. to send message loud and clear,” said VicenteThe T. Lao, president of the Mindanao reserve requirement Business Council. ratios were, likewise, left “But the mayor has assuring unchanged.

Thebeen BSP said us thatthe he would always support busisteady rates were what based nesses in the city need. He would assure on their assessment of stable us that he is very determined in his antiinflation, reiterating that crime efforts, because he believes that the target for this year to a peaceful cityrange is the best invitation and the will business,” Laonext added.

Laststill yearlikely Duterte’s be attained. directive to the City Engineer’s Office Theregulatory central bodies bank atchief and other the City HallAmando is to process all applications within M. Tetangco Jr. earli72 hours. they have to er said“Otherwise, that inflation forwill March personally comesettle to mebetween and explain will likely 0.6why onepercent application went beyond 72 hours.” to 1.4 percent.

“The best thing about Mayor Duterte is The Philippine Statistics that he gets things done,” Lao added.

Authority will release inflation numbers this week. The BSP, meanwhile, will be having its third monetary policy meeting on May 12.

Boom city y Monetar

The best thing about Mayor Duterte is that he gets things done.”—L Bianca Cuaresma

BusinessMirror

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