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BusinessMirror A broader look at today’s business Monday, February 1, 2016 Vol. 11 No. 116

www.businessmirror.com.ph

AGRA, COLMENARES NOTE BILL’S ‘HARMFUL’ PROVISIONS

Proposed PPPAct feared as a setback to LGU autonomy L S. M, J M N. D C  B F

ITH just three session days left in the 16th Congress, experts, local executives and businessmen are keenly awaiting the final version of the proposed Public-Private Partnership (PPP) Act, which currently have provisions that can potentially disrupt existing local government PPP projects and ordinances, as well as diminish the power of cities and municipalities to raise revenues.

INSIDE

HB 6331 and SB3035 Current versions of the proposed PPP Act Former Justice Secretary Alberto C. Agra, a certified PPP specialist, said lawmakers must take a second look into the proposed measure, as C  A

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KERBER BEATS WILLIAMS FOR 1ST GRAND SLAM TITLE

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

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30YEAR BULACAN BULK WATER SUPPLY PROJECT: 3.4M BULAKEÑOS WIN PPP Lead

Alberto C. Agra

HE “Bulacan People won” professed Gerardo Esquivel, administrator of the Metropolitan Waterworks and Sewerage System (MWSS). The people of Bulacan was the value driver of the recently awarded 30year concession Bulacan Bulk Water Supply Project under the build-operatetransfer modality.

PPPs for the public good. The 12th public-private partnership (PPP) arrangement awarded under the current a dministration captures the real bottom line. The MWSS leadership clearly wanted to serve the general welfare by “equalizing” water, a human right, and making available to the inhabitants of the locus of water their water.

IN this October 16, 2013, file photo, a model showcases an outfit by Dubai-based Filipino fashion designer Michael Cinco during Fide Fashion Week 2013 Asian Couture in Singapore. AP

Lowest tariff, not highest revenues. The MWSS choose to award the project to the proponent that offered the lowest tariff, instead of giving premium to revenues or concession fees. The low tariff that will be paid by the 24 water districts will translate to low end-user fees to be paid by Bulakeños. The benefit is targeted and will be directly felt by 3.4 million people in 21 cities and municipalities. The proponent is expected to innovate so that it may be able to save on whole-of-life project costs. C  A

65 LGU PPP CODES SPORTS

44 LGUs PPP CODES REFERRING TO AGRA TEMPLATE

BOB SOBREPEÑA: WHEN I WAS 25

Local fashion businesses face conundrum of good economy ₧36.358B B R C

EXECUTIVE VIEWS

First of three parts

AGALING magdala. Filipinos, especially those who are cosmopolitan and travel abroad, are known to carry themselves well in the fashion sense. In their Sunday best, they look smart, appear chic and wear well even lesserknown fashion brands.

Many also know how to spend, and spend they do. According to a report by the Philippine Statistics Authority (PSA), total spending on clothing and footwear alone amounted to P36.358 billion last year. In 2014, when GDP slowed to 6.3 percent, total spending on clothing and footwear hit P32.985 billion. C  A

BusinessMirror

Total spending on clothing and footwear last year in the Philippines, according to the Philippine Statistics Authority

PROVINCE  Cavite  Camarines Sur  Northern orthern Samar  Pangasinan  Nueva Ecija  Bataan  Bohol  Agusan Norte  Southern Leyte eyte  Pampanga  Zambales  Tarlac  Davao Norte  Quezon  Cebu  Aklan

LGUS WITH PPP ORDINANCES

CITIES IES  Butuan  Olongapo  Batangas  Cauayan  Paranaque  San Juan  Pasay  General eneral Santos  Quezon City  Imus  Passi  Catbalogan  Navotas  Malabon  Legazpi  Davao  Antipolo  Bayawan  Puerto Princesa

MUNICIPALITIES MUNICIPA UNICIP LITIES UNICIPA  General Tinio, NE  Cordova, Cebu  Cainta, Rizal  Tiwi, Albay  Consolacion, Cebu  Dinalupihan, Bataan  La Trinidad, Benguet  Coron, Palawan  Kalibo, Aklan

9 LGU JV ORDINANCES REFERRING TO TO AGRA A TEMPLATE

PROVINCE

CITIES

 Camarines Sur

 Manila  Valenzuela  Caloocan  Puerto Princesa

MUNICIPALITIES  Opol, Misamis Or  Mendez, Cavite  Tuburan, Cebu  San Luis, Aurora

10 LGU JV ORDINANCES REFERRING TO 2008 NEDA GUIDELINES  Cebu Province  Cebu City  Lapu-Lapu City  Mandaue City  Iloilo City

1 LGU ORDINANCE BASED ON OWN VERSION

OUT NOW To order, e-mail us at bmturningpoints@businessmirror.com.ph or call 893-1662, 814-0134 to 36 PESO EXCHANGE RATES ■ US 47.8230

 Albay Province

 Pasay City  Tacloban City  Calamba City  Laguna Province  Argao, Cebu

1 LGU PPP REFERRING TO PPP CENTER TEMPLATE  General Santos

■ JAPAN 0.4025 ■ UK 68.6595 ■ HK 6.1370 ■ CHINA 7.2730 ■ SINGAPORE 33.4965 ■ AUSTRALIA 33.9074 ■ EU 52.3184 ■ SAUDI ARABIA 12.7528

BM GRAPHICS: JOB RUZGAL

Source: BSP (29 January 2016 )

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A2 Monday, February 1, 2016

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Local fashion businesses face conundrum of good economy have entered or planned to enter the Philippine market.

C  A

The spending allotted to clothing and footwear in the country posted a 10.2-percent growth rate for 2015, the PSA data showed. This trend is seen to increase over time, as long as the population grows and spending continues. The country’s population growth rate remains high compared to Malaysia and Indonesia at 1.7 percent annual average from 2011 to 2013, according to World Bank data. In a survey retrieved from IndexMundi, the number of people living in Metro Manila for July 2014 alone reached 11.862 million. The population for the entire country was at approximately 107 million. A significant portion of this number are living and working abroad who are credited by several studies as the source of the cash consumers pump into the economy. For one, remittances from overseas Filipino workers (OFWs) reached $2.2 billion just for the month of April last year, according to Bangko Sentral ng Pilipinas data. OFW remittances make up nearly 10 percent of the GDP. Several studies have noted remittances also accelerates consumer spending, and consumer spending is seen to remain a growth driver for the Philippine economy this year. The combination of a spending population and steady source of cash from abroad has made the Philippines an attractive market. And as Filipino haute couture artists and designers made waves in the global market, it was not too long before the country lured foreign brands. British Embassy Director of UK Trade and Investment Mike Moon acknowledges the Philippine mar-

Sowing machine

THIS file photo shows a woman walking past mannequins displaying clothes in a shopping mall offering a clearance sale. Local fashion brands are competing fiercely with foreign entrants, as Philippine economic growth lures international brands attracted to a growing consumer market. NONIE REYES

ket’s lure is undeniable. “The Philippine market presents a wide range of opportunities for companies looking to expand their business overseas,” Moon told the BUSINESSMIRROR in a letter sent via electronic mail. “The country’s market size, the population’s purchasing power and increasingly sophisticated taste make it an attractive market for foreign retail [and/ or] fashion companies.” Indeed, British fashion brands like Clarks, Debenhams, Lush, Marks & Spencer and Speedo have slowly become a fixture in the country’s retail landscape. Nearly three years ago, local firm Vogue Concepts Inc. secured

the franchise for TM Lewin. The Philippine Franchise Association (PFA) notes that even though there have been a number of foreign brands entering the Philippine market over the years, the local market, in a way, still has the upper hand. “Some foreign brands have the advantage because the preferred locations they get [are] in the [shopping] malls,” the PFA said in an e-mail to the B USINESSM IRROR. “Local franchises also need to remember that they know the market better. They need only to remember that, unlike in other countries where a certain American brand is their

No. 1 franchise brand, the Philippines is proud to have a homegrown brand as the No.1 franchise in the country.” Indeed, the entrance of foreign brands poses both a number of challenges and opportunities for the local industry. The local homegrown businessmen have to decide where they stand within this clothing retail arena. If not addressed properly, local clothing firms can see their business unravel if they fail to keep up with the brand power backing up competitors. Local entrepreneurs and businessmen, however, can take advantage of the entrance of international brands that

ONE source of support the local fashion business sector can rely on is the Philippine Design Competitiveness law, or Republic Act (RA) 10557. Approved in 2013 by the 15th Congress, RA 10557 aims to promote and strengthen Filipino design. The law understands there is a huge talent pool of designers here in the Philippines that can be cultivated and introduced not only in the local market but also in the international playing field. The Act also pushes for the patronage of local products, the protection of intellectual property with regard to design, the promotion for collaboration among local design stakeholders and more. The Act also reiterates the role of the Design Center of the Philippines, in which it shall support and foster the creativity and talent of Filipinos who wish to pursue the retail or fashion design course, respectively.

Stitch in time

HOWEVER, the “combo” tack of greater local patronage and ramping up production is not new. The 1950s saw the emergence of the Philippine retail sector and the establishment of the textile and garment industry in the Philippines. The birthing was due to the combination of encouraging consumer patronage of locally made products and increasing levels of local production. Dependence on imports from other countries was to be minimized, if not at all eliminated. Industry players also encourage use of indigenous materials like abaca and piña. The advocates opined the country can sustain its local garment

industry and supply international markets as well, because these materials are abundant and can be sourced locally in the Philippines. But the entry of China, the aggressiveness of Thailand’s garment sector and the flooding of cheap imports signaled the Philippine fashion industry’s death bell. The Department of Trade and Industry (DTI , however, never said “Uncle” even as the local garments and textile industry writhed in pain from the competition coming from foreign brands. It encouraged the industry to meet the competition head on via exports. Hence, the DTI Garments and Textile Industry Development Office arm reports a steady growth in terms of retail exports of the country. A staggering $2.14 billion was brought in by retail exports alone for the country in 2011. Of the total amount, apparel exports had a $1.92-billion share and textiles had $162 million, DTI data showed. The data also showed that apparel and textile exports have been increasing annually since 2008. This sector rakes in approximately 91.1 percent from total exports. This condition offers a sweet spot for the country’s fashion retail industry. For one, the Philippines is on its way to becoming a fashion go-to for both local and foreign trendsetters alike. For another, the country can tap numerous sources of materials not only locally but from the fellow members in the Association of Southeast Asian Nations. Indeed, the country’s fashion industry can flourish along with the major fashion capitals of the world if its potential is utilized efficiently.

To be continued

Proposed PPP Act feared as a setback to LGU autonomy C  A

it “recentralizes” the program instead of allowing local government units (LGUs) a free hand to it for better implementation. Agra, a BM columnist, said solons should specifically be cautious of approving the repealing clause of the PPP Act, which basically institutionalizes the PPP Program for sustainability. “There are two basic issues. One, the original draft wants to repeal all local government ordinances on PPPs—I see that as an attempt to recentralize rather than enhance the decentralization of PPPs,” he told the BM via phone. Both House Bill (HB) 6331 and Senate Bill (SB) 3035 state in the repealing clause that: “Joint Venture Guidelines issued by LGUs, and PPP Codes issued by LGUs, are hereby repealed.” The measure is among the administration’s priorities and is being pushed by business groups.

Back to ‘imperial Manila’

THERE are now about 62 LGU PPP codes and over 30 ongoing or approved PPP projects at the local government level. On the contrary, there are currently only 12 approved PPP deals at the national level, with some of them still being challenged in court for various reasons. He said, by repealing these 62 LGU PPP codes, the initiatives that were introduced by local governments will deemed futile. “It’s really a setback from the local autonomy that is guaranteed by the Constitution. Why go back to the olden days of imperialist Manila, and instead empower LGUs?” Agra lamented. The decentralization of the PPP Program allows for the development of infrastructure outside the urban centers. “This gives LGUs the authority to adopt their own PPPs, allowing them to develop other centers outside Manila,” he said.

PPP modes

ANOTHER issue that lawmakers should look into is the limiting of the modes of implementation from 24 possibilities to 11. “It will be a misnomer to call it a PPP Act if they will not include the possible 24 modalities,” he said. Modalities include the build-operatetransfer scheme, joint-venture scheme and build-lease-transfer scheme, among others. “If you repeal the ordinances, the status

of contracts awarded under those ordinances will be under limbo,” Agra said. Cities with PPP ordinances include Manila, Quezon City, Paranaque, Cebu, Davao, Batangas and General Santos, among others. “By one sweep, all these will be deleted. There is an adverse impact on local economy,” he explained. Agra said the move signals that the national government lacks trust in local governments. He clarified, however, that he supports the other amendments to the law.

‘Have no fear’

BUT PPP Center Executive Director Cosette V. Canilao disagrees. “While it has a repealing clause, there is also a provision that LGUs can enact their PPP Codes in accordance with the new PPP Act. They have the power to enact new laws. It doesn’t mean that it just repealed ordinances,” she explained via phone. She also said contracts signed in the past will be honored. “If there’s a new law, the application is prospective and not retroactive. Hence, they will be honored,” Canilao said, citing the Local Government Code as the basis for her claims. Speaker Feliciano Belmonte Jr. said HB 6331 has been amended to allow all existing PPP projects of LGUs to continue even after the passage of the bill into law. “HB 6331, as approved on second reading [on January 26], includes proposed amendments that the [proposed] PPP Act will not affect existing contracts, including LGU’s PPP contracts, procurement activities undertaken before [the passage into law of] PPP Act, and LGU authority to enact PPP ordinances not inconsistent with PPP Act and IRR [implementing rules and regulations],” said Belmonte, one of the main authors of the bill. Under the committee report, or original version of HB 6331, all laws, rules and regulations or part thereof, including joint-venture guidelines and PPP Codes issued by LGUs, inconsistent with the provisions of this act are hereby repealed or modified accordingly. House Committee on Ways and Means Chairman and Liberal Party Rep. Romero Quimbo of Marikina, also one of the authors of the PPP bill, said the measure will not affect existing contracts of local governments. “To redo and amend

existing agreements will be looked at with disfavor by investors and will arguably violate the constitutional prohibition against the passage of laws that impair existing contracts.” Nationalist People’s Coalition Rep. Sherwin Gatchalian of Valenzuela said while he agreed that PPP laws for both local and national should be harmonized “[still] the existing PPP of the LGUs should be respected as to not diminish the reputations of the LGUs.” Sen. Ralph Recto also allayed concerns aired by some local officials over the bill’s repealing clause, which is feared could lead to abrogation of LGU-approved PPP projects already lined up for implementation prior to enactment of the pending bill. “No. It won’t,” Recto told the BM over the weekend. Recto, who cosponsored Senate Committee Report 339 with Sen. Ferdinand Marcos Jr. endorsing passage of the PPP legislation, clarified that the bill’s repealing clause cannot undo prior acts by local governments to carry out PPP projects in their localities. “The Senate PPP bill is prospective,” Sen. Recto pointed out. Recto added: “In fact, it strengthens local governments who undertake PPP projects. They no longer need to get Neda Board approval; only concurrence of their Sanggunian.”

‘Prejudicial’

MEANWHILE, Party-list Rep. Neri Colmenares of Bayan Muna said the PPP bill is prejudicial to LGUs, as the measure prevents local governments from collecting real-property taxes and other fees. “Under Section 20 [of the bill], or on the projects of national significance, all PPP projects are exempted from real-property tax. Local tax and fees and all necessary business permits will be automatically granted or issued to all projects of national significance. To sum up, the [PPP bill is] prejudicial because it removes the power of the LGUs to collect fees from PPP projects,” Colmenares said. Under the bill, upon certification and recommendation by the Investment Coordinating Committee, and prior consultation with the Department of the Interior and Local Government, the President may classify certain projects, such as energy, toll road, mass transit, water, sewerage and such other projects undertaken under this act as

projects of national significance, which shall be entitled to the following incentives: ■ All real properties, which are actually and directly used for the project, shall be exempt from any and all real-property taxes levied under RA 7160, or Local Government Code. ■ All projects of national significance shall, likewise, be exempt from any and all local taxes, fees and charges. ■ Automatic grant or issuance of the necessary business permits, including renewals thereof, in favor of the winning proponent. Colmenares also questioned the mandatory approval of administrative franchise and license permit. “Under Section 13, once a PPP contract is duly executed, LGUs shall automatically grant in favor of the project proponent an administrative franchise, license permit. They have no more power to deny [permits],” Colmenares added. Section 13 of the bill provides that once a PPP contract is duly executed, the regulator, licensing authority or LGUs shall automatically grant in favor of the project proponent an administrative franchise, license permit, or any other form of authorization required for the implementation of a PPP project subject to submission by the project proponent of the requirements by the regulator, licensing authority or LGU. Also the bill said any provision of law to the contrary notwithstanding, it shall be mandatory on the part of the regulator, licensing authority or LGUs to accept and approve the application for administrative franchise, license or permit, saying failure to act on a proper and complete application thereof within 30 working days from receipt of the same shall be deemed as approval thereof.

Viability-gap funding

COLMENARES also questioned a provision under the bill providing the viabilitygap funding. The bill refers to viability-gap funding as financial support the government may provide to a concession-based PPP project with the objective of making user fees affordable while improving the commercial attractiveness of the project, excluding costs of rightof-way, resettlement and real-estate taxes. “The viability-gap funding is a sovereign guarantee, that’s why the national government would be the preferred partner by

private corporations,” he said. A sovereign guarantee is an incentive to attract private companies to enter into partnerships for projects and varies between projects.

Private-sector support

EUROPEAN Chamber of Commerce of the Philippines External Vice President Henry J. Schumacher said the new law changes the principle of PPPs from the “highest bidder wins” to the lowest bidder who fulfills the “technical requirements wins.” “This is a very important change which benefits the public users of infrastructure. That’s the reason the PPP ordinances need to be repealed. This makes sense and we fully support it,” he said. American Chamber of Commerce Senior Advisor John D. Forbes said repealing clauses are but normal for new laws. “The PPP is a comprehensive reform bill in which such repeal clauses are standard. The PPP bill captures the policy that PPP projects must be transparent, bid through competitive procedures, and must provide the most efficient public service at affordable rates to the consumer, and it applies to both national and local projects,” he said. Hence, the passage of the law should be deemed both as “urgent” and of “extreme importance.” “It institutionalizes the reforms that we have already initiated, and lessons that we learned from the past five years. There are provisions that will fasttrack not only preparation and bidding, but also execution,” Canilao explained. When approved, the PPP Act would 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. The amendments are expected to be approved within the last three sessions in Congress.

BMReports BusinessMirror

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PPMA urges manufacturers to tap small firms for ‘strategic’ car parts T B C N. P

PPMA President Ferdinand Raquelsantos issued the pronouncement after the government opened the applications for incentives under the Comprehensive Automotive Resurgence Strategy (CARS) Program on January 15. Raquelsantos said PPMA has presented car assemblers with a list of small firms that could supply strategic car parts. “We have a list of 36 companies that we are promoting to the car assemblers as possible local sourcing partners. Obviously, some of them are already on the list of assemblers, but what we’re trying to promote are the smaller ones,” Raquelsantos said. A salient goal of the CARS is to encourage local manufacturing by of-

fering attractive fi scal and nonfi scal perks to car assemblers that will, in turn, increase the business of their parts makers and suppliers. To boost manufacturing in the country, the CARS Program requires an increase in local content to around 60 percent of the parts of every locally assembled vehicle. PPMA said the manufacture of large plastic assemblies and body shell assembly are capital-intensive activities that will likely be handled by bigger parts maker or the car assemblers themselves. “What we’re proposing is to have more subparts [localized] from the large pressed parts. Of course, when a foreign supplier comes in, he won’t go to the smallest business. He will

FLICKR/HAHATANGO

HE Philippine Parts Maker Association (PPMA) is urging major car makers to source “strategic” parts from small firms so they can also benefit from an incentives scheme rolled out by the government for the auto industry.

choose the one with the capability,” Raquelsantos said. So what we’re trying to promote is for the smaller players to be tied up with the large parts maker. The strategic parts are important, as this is where new activity can come in,” he added. The implementing rules and regulations of the CARS Program refer to strategic parts as auto parts specific to an enrolled model, but which are not currently produced in

the country at original equipmentmanufacturer standards. Examples of these are struts and shock absorbers, plastic fuel tanks, head lamps, rear combination lamps, steering assembly and aluminum radiators. Because of the localization requirement in the program, foreign suppliers will need to partner with smaller parts makers for the model enrolled, paving the way for the transfer of technology and knowledge to local firms.

₧27B

Budget for the Comprehensive Automotive Resurgence Strategy Program

Currently, car-parts makers are waiting for two likely applicants—Toyota Motors Corp. Philippines and Mitsubishi Motors Philippines Corp.—to formally signify their intention to avail of incentives under the CARS. The two auto firms, however, have remained mum on whether they will participate in the program. Even as the two firms have not formally signified their intent to seek incentives under the CARS, PPMA said three technical agreements between local parts makers and foreign suppliers are already in the offing. The group, however, declined to identify the three local firms. “These agreements could be forged within the fi rst quarter. Once the application period ends on March 14, more concrete agreements could be forged with parts suppliers, as we would know the models that will be produced under the program by then,” Raquelsantos said. Aside from boosting local content sourcing, the CARS Program also requires participating car assemblers to produce at least 200,000 units over the course of the program to benefit from the incentives. The government has set aside P27 billion for the CARS Program, or a budget of P9 billion for three vehicle models. The initiative is a core component of the government’s Manufacturing Resurgence Program.

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DOF to exporters: Find new markets, diversify products to boost revenues

B B C

HE government urged export manufacturers to make the adjustments and diversify their markets in light of uncertain global growth prospects and weak demand in the trade sector.

According to Undersecretary Gil S. Beltran, also chief economist at the Department of Finance (DOF), exporters need to take proactive steps to offset losses due to the weak external demand brought about by the uneven growth pace in the advanced economies. “With the continuous contraction of major markets, Philippine exporters need to diversify their market base and product lines further,” Beltran said. “One way is to find domestic and fast-growing emerging-market opportunities. Another is to innovate on existing product lines, looking into possibilities of adding more value into them,” he added. Merchandise exports in November amounted $5.12 billion, 1.1 percent lower than in the same period last year. Beltran said the decline was brought about by the continued contraction in most commodity groups, tempered by the increase in electronics exports.

$5.12B Export receipts in November 2015

Total exports to the country’s major trading partners in the first 11 months also significantly dropped, except with the US and Hong Kong. “The decline in total exports is due to dampened appetite of our trading partners, eminent slowdown of the Chinese economy, depreciation of the Japanese yen against the US dollar and the decline in prices of the country’s major export commodities, especially electronics which account 48.9 percent of the total exports,” Beltran said. Meanwhile, exports to the US continued to rise moderately by 1.5 percent. Barclays research said the drag

With the continuous contraction of major markets, Philippine exporters need to diversify their market base and product lines further.”—Beltran acting on the country’s export of goods and services by the deterioration of the external sector offset the potential gains seen from higher government and investment

CONGRESS EYES MEASURES TO BOOST HALAL TRADE B M G P

OVERNMENT officials and the private sector have expressed optimism that the passage of proposed measures in the House of Representatives and the Senate would boost halal industry and trade in the country. Senen M. Perlada, director of the Department of Trade and Industry’s (DTI) Export Marketing Bureau, said Senate Bill (SB) 231 and House Bill (HB) 6347 will clarify the recognition and accreditation procedures of halal meat and products in the country. SB 2831, or the Philippine Halal Export Development and Promotion Act Of 2015, aims to create the Philippine Halal Export Development and Promotion Program, as well as the Philippine Halal Export Development and Promotion Board. The bill has already been approved by the Senate. Meanwhile, HB 6347 seeks to establish the Philippine Halal Accreditation, Development and Promotion Board. It was approved by the House on second reading. Agriculture Undersecretary for Livestock Jose C. Reaño said the new policies will define the halal process and activity in the Philippines. For one, SB 2831 will lay down the objectives, targets, strategies and activities for the growth of the halal industry to boost exports. The program seeks to develop and implement halal agricultural and manufacturing standards and practices; to organize and develop accredited certification bodies; identify and expand markets for Halal products, processes and services; forge international and bilateral agreements; ensure the compliance of producers, manufacturers, service providers, traders and exporters to established local or international

$1.6T

Estimated amount of global halal trade by 2018 standards; and industry development and promotion, among others. “The bill will ehance the DTI’s Halal Industry Export Development Program. Our mandate is to promote halal certified products and to help more halal certifiers have international recognition,” Perlada said. The Halal Board, which the measures seek to create, will consist of representatives from different government agencies, the private sector, and academe. It will be chaired by the DTI, while the National Commission on Muslim Filipinos will serve as the vice chairman. “We have to be together when it comes to exports, otherwise, it will be hard to penetrate other markets if we are not clear about the procedures and the proper authorities concerned,” Perlada said. The new policies will also seek to establish the accreditation process of Halal certifying bodies—through the Philippine Accreditation Bureau— and to develop Philippine National Standards for halal—through the Department of Agriculture -Bureau of Agriculture and Fisheries Standards (for primary and postharvest foods), the Department of Health Food and Drug Administration (for processed and prepackaged foods, drugs and cosmetics) and the DTI-Bureau of Philippine Standards (for nonfood products aside from drugs and cosmetics). SB 2831 and HB 6347 will also authorize the formulation of regulations for the export and trade of halal products, processes and

services; the promotion of halal products to the global market; the implementation of research and development programs; and the facilitation of training and capacity building for farmers and manufacturers, among others. A sum of P50 million has been appropriated for the implementation of initiatives under SB 2831. Perlada said the proposed measures are essential as there is a need to define procedures, standards and regulations governing halal trade in the Philippines. “We are a non-Muslim majority country so we have to go through the proper process and ensure that our certification, procedures, processes, accreditation and recognition have integrity,” he added. National Meat Inspection Service Director Minda Manantan said three halal meat-processing facilities have already been accredited in the Philippines, while data from the DTI showed there are already 514 halal-certified companies. The country has been able to penetrate the halal meat market in the United Arab Emirates, but Perlada said its market share is still very minimal as compared to other supplying countries. “The Philippines has a long way to go compared to other non-Muslim majority countries exporting halal products. The big players are Australia, New Zealand and Thailand. We have a small market share, but it is growing,” Perlada said. He said halal trade in the Philippines has “great potential” for growth. A study conducted by the Dubai Chamber of Commerce and Industry showed that the global halal market is projected to grow to $1.6 trillion by 2018. Of this amount, Perlada said halal food trade alone contributes $630 billion.

spending. This, in turn, was the reason growth was seen slowing to 5.5 percent this year no matter above-market growth performance in the fourth quarter last year.

For 2016, exporters are optimistic that revenues will grow by 8 percent to 10 percent on the despite last year’s disappointing performance. Earlier, Philippine Exporters Confederation Inc. president Sergio Ortiz-Luis, Jr. said he maintains a sanguine outlook for Philippine exports this year due to a number of initiaties to shore up the sector. “We choose to be optimistic, as we continue to seek for ways to improve the way we conduct business, the way we partner with the government, the way we approach our markets as they continue to evolve,”

Ortiz-Luis said. The Department of Trade and Industry projected export receipts to increase by as much as 9 percent this year on the back of the resurgence of the manufacturing sector and trade schemes which granted Philippine products preferential access to major markets. The Philippines was granted beneficiary status under the EUGeneralized System of Preferences Plus scheme in December 2014, allowing it to enjoy zerotariff duty on 6,200 products exported to Europe.

China strongly condemns US for sending warship near island

In this June 4, 2010, file photo, the USS Curtis Wilbur arrives at a naval base in Busan, South Korea, for South Korea-US joint drills. AP

EIJING—China strongly condemned the United States after a US warship deliberately sailed near one of the Beijing-controlled islands in the hotly contested South China Sea to exercise freedom of navigation and challenge China’s vast territorial claims. The missile destroyer USS Curtis Wilbur sailed within 12 nautical miles (22 kilometers) of Triton Island in the Paracel chain “to challenge excessive maritime claims of parties that claim the Paracel Islands,” without notifying the three claimants beforehand, Defense Department spokesman Mark Wright said on Saturday in Washington. China, Taiwan and Vietnam have overlapping claims in the Paracels and require prior notice from ships transiting what they consider their territorial waters. The latest operation was particularly aimed at China, which has increased tensions with the US and its Southeast Asian neighbors by embarking on massive construction of man-made islands and airstrips in contested areas.

Last October, another US warship sailed in the nearby Spratly Islands near Subi Reef, where China has built one of seven artificial islands. Wright said the attempts to restrict navigational rights by requiring prior notice are inconsistent with international law. US officials said that such ship movements would be regular in the future. China responded swiftly. Defense Ministry spokesman Yang Yujun issued a statement saying the US action “severely violated Chinese law, sabotaged the peace, security and good order of the waters, and undermined the region’s peace and stability,”according to the official Xinhua News Agency. According to Yang, Chinese troops on the island and navy vessels and warplanes took actions immediately, identified the US warship and “warned and expelled it swiftly.” He said that the US operation was “very unprofessional and irresponsible for the safety of the troops of both sides, and may cause extremely dangerous consequences.” Chinese armed forces

will take whatever measures “necessary to safeguard China’s sovereignty and security, no matter what provocations the US side may take,” Yang said. Foreign Ministry spokesman Hua Chunying said separately that the Chinese side conducted surveillance and “vocal warnings to the US warship.” China claims almost the entire South China Sea and its islands, reefs and atolls on historic grounds. The area has some of the world’s busiest shipping lanes, and USofficials say ensuring freedom of navigation is in US national interests, while not taking sides in the territorial disputes. China seized the unpopulated Triton Island, an area of 1.2 square kilometers (0.46 sq miles), from former South Vietnam in 1974. In May 2014 China parked a huge oil drilling platform off the Vietnamese coast in the area, prompting Vietnam to sent fishing boats and coast guard vessels to harass the rig and nearby Chinese vessels. Skirmishes led to collisions and the capsizing of at least one Vietnamese boat. AP

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Monday, February 1, 2016 A5

GrabTaxi rebrands to expand service scope

INGAPORE—GrabTaxi, the Southeast Asiafocused taxi-booking app, has rebranded itself as simply “Grab” in a move it says will better reflect the company’s goal to offer an expanded range of commuting alternatives. The rebranding of the Malaysian company is aimed at expanding its range of transport-platform services and going beyond the taxi-booking app. Grab’s services now cover taxis (GrabTaxi), cars (GrabCar), motorbikes (GrabBike), carpooling (GrabHitch) and deliveries (GrabExpress), all available via one app. These markets are expected to be worth $25 billion per year. “We foresee significant growth opportunities for ride-hailing appbased transportation, as it offers more freedom and more services,” said Anthony Tan, chief executive and a cofounder of Grab. “Our goal is to make safe transportation accessible to everyone in Southeast Asia,” he added. Grab has expanded into 28 cities in six

Southeast Asian countries—Malaysia, Singapore, Vietnam, the Philippines, Indonesia and Thailand—with more than 200,000 drivers, Southeast Asia’s largest fleet. Tan Hooi Ling, another cofounder of Grab, said the company had research and development centers in Singapore, China and the US in order to attract global talent. Grab recently launched a new version of its app, with live tracking and flash features, to improve the overall user experience. The flash feature pools taxi and privatehire vehicle drivers, allowing users to search for a ride from both taxis and GrabCars, opening up a much larger pool of drivers. Grab plans to introduce GrabPay in Thailand by June, adding credit cards to its payment options.

GrabPay is already available in Singapore, Indonesia, the Philippines and Malaysia. Tan said the Grab app had been downloaded 11 million times in Southeast Asia. “We still have plenty of room to grow, as the region has a combined 200 million mobile Internet users out of a population of 620 million,” she said. More than half of Grab’s passengers use other services apart from its taxis. She said Grab accounts for over 50 percent of the private-car service market, securing a 95- percent share of the third-party taxihailing market in Southeast Asia. Grab saw a 35-percent rise in average monthly growth for GrabCar in the second half of 2015, and a 75-percent increase for GrabBike across the region. Also, booking transactions for all of Grab’s services in 2015 were 10 times higher than those of 2014. Since its inception in 2012, Grab has raised $700 million worth of funding, the largest amount for a tech start-up in Southeast Asia. Grab had also been working closely with the Department of Land Transport to ensure its services are safe for drivers and passengers as well as legitimate. TNS

THAI GOVT PLANS TO SPEED UP RAIL ROUTES

HAILAND’S Transport Ministry is gearing up efforts to push ahead four dual-track railway sections and the extension of the Airport Rail Link, which have been hit by delays. According to Deputy Transport Minister Omsin Cheevapruek, the projects are likely to be completed six months after the projected date in 2019. The four sections of double-track railways are Prachuap Khiri Khan to Chumphon, Map Ka Bao in Saraburi to Jira in Nakhon Ratchasima, Nakhon Pathom to Hua Hin, and Prachuap Khiri Khan to Hua Hin; the extension of the Airport Rail link section is from Phaya Thai to Bang Sue. He said he held talks with the National Economic and Social Development Board (NESDB), the State Enterprise Policy Office, the Bureau of Budget and other agencies concerned to speed up work on the four double-track rail sections, for which the construction contracts have not yet been signed, as well as the Airport Rail Link section. The proposals involving two sections—Prachuap Khiri Khan to Chumphon and Map Ka Bao

to Jira—will be forwarded to the NESDB for consideration on Wednesday, he said. The proposals will provide details of the construction and time frame. The two other sections are still awaiting environmental impact assessments, he noted. Under the proposals, each section will be separated to ensure quicker construction. Speaking about the dual-track rail sections— the Chachoengsao-Klong Sip Kao-Kaeng Khoi and Jira-Khon Kaen—he said the contracts can be signed next month and construction will begin afterward. “I have instructed all agencies to share information quicker,” Omsin said, adding that if authorities stick to the old system, the projects will not materialize on time. According to the deputy minister, the construction of the Airport Rail Link’s extension must be sped up to catch up with work on the Red Link electric train project linking Bang Sue, Hua Mak and Hua Lamphong. This is because some parts of the two routes need to be constructed together, such as Yommarat station. TNS

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Jamaica confirms 1st Zika virus case S

TURKISH paramilitary police officers carry the dead body of a migrant from the beach near the Aegean town of Ayvacik, Canakkale, Turkey, on Saturday. AP/HALIT ONUR SANDAL

At least 37 migrants drown in trying to reach Greece

NKARA, Turkey—A boat carrying Syrians attempting the short sea journey from Turkey to Greece struck rocks and capsized at dawn on Saturday, causing at least 37 people to drown, among them several babies and young children. Images of dead children on a beach on Saturday were another soul-searing reminder that Europe’s migrant crisis keeps destroying lives and families by the day. They recalled the photo of 3-year-old Aylan Kurdi lying face down on a Turkish beach last year. His story put an intimate face on the Syrian refugee crisis for people across the world, prompting many to finally grapple with the magnitude of the suffering caused by the war in the Middle East and the treacherous journeys many risk seeking shelter in Europe. By contrast, the heartbreaking images on Saturday met a muted response, perhaps, a sign that many have grown weary of the unending reports about the suffering of migrants even though the number of people dying at sea is rising. “January has been the deadliest month so far for drownings between Turkey and Greece,” Peter Bouckaert, the emergencies director at Human Rights Watch, told The Associated Press (AP) in an e-mail. “Almost every day, more drown on this dangerous journey.” “It is deeply disturbing that after all those solemn pledges when Aylan Kurdi drowned, these latest drownings were barely mentioned in the media,” added Bouckaert, who played a crucial role in giving

250 Migrants have drowned already this month

wide circulation on Twitter to the images of Kurdi last year. “We have chosen to look away.” Tima Kurdi , the Kurdi’s aunt, said she is heartbroken to know that children continue to die as her nephew did. “No parent would put their children in that kind of situation unless what they were escaping from was worse,” she told the AP, speaking from a hair salon she recently opened in Port Coquitlam, British Columbia. “The image of my nephew Alan Kurdi was really powerful. People started to look at the crisis. But now, another boy and another boy and another boy are drowned,” she said. “I wish the world would not forget my nephew and his tragedy. We have to stop the war or this won’t stop.” While Turkish authorities gave the boy’s first name as Aylan, his aunt says the family prefers that it be transliterated as Alan.

Saturday’s tragedy occurred when the boat capsized as dozens of people attempted the deceptively short crossing from the Turkish coast to the Greek island of Lesbos barely 8 kilometers away. More than 250 migrants have drow ned a lready t his mont h trying to reach one of Greece’s offshore islands, entry point to the European Union (EU) and its uncertain promise of refuge from war and poverty. The Turkish coast guard said three ships, a helicopter and team of divers searched the partially submerged craft and surrounding seas for more bodies as police on shore placed bodies, some 10 children among them, in black bags. Journalists at the scene tried to interview some of the 75 survivors, but the police took them away in buses, some bound for a local hospital to be treated for hy pothermia and other injuries, others into police custody for questioning. A Turkish government official said by the late afternoon that rescuers had recovered bodies trapped inside the wreckage of the 17-meter boat, which sank shortly after departing from the shore near the Aegean resort of Ayvacik, raising the death toll to 37. Saim Eskioglu, deputy governor for the coastal Canakkale province that includes Ayvacik, said the boat “hit rocks soon after it left the coast.” “There were around 10 children among the dead,” Eskioglu said. “Four of them, unfortunately, were babies about 1 or 2 years old. We are deeply saddened.” Eskioglu and Ayvacik ’s mayor, Mehmet Unal Sahin, said most of the migrants were Syrians. The Anadolu Agency said the boat also bore natives of Afghanistan and Myanmar. A private Turkish news

agency, Dogan, said the police arrested a Turkish man suspected of being the smuggler who organized Saturday’s failed sea crossing. The man denied responsibility, telling the Dogan agency that he also had relatives on board. Weather conditions did not appear to be a significant factor in the sinking. Journalists at the scene said weather conditions on Saturday on the Turkish coast were relatively mild, with light winds and temperatures around 12 degrees Celsius. The International Organization for Migration says drowning deaths are running at four times the rate of 2015, when many thousands daily sought to enter the EU via Turkey by reaching one of more than a dozen offshore Greek islands, chiefly Lesbos. T he a genc y recorded 8 0 5 drowning deaths of migrants on Turkey-Greece sea routes throughout 2015, and a further 218 this month alone excluding the ultimate total of Saturday’s tragedy. Joel Millman, a spokesman for the International Organization for Migration, said the death toll was “increasing at an alarming rate.” He said it was all the more surprising, given the reality that fewer people are attempting the crossing during winter. Turkey, which is hosting an estimated 2.5 million refugees from Syria, in November agreed to f ight smug gling net works and stem the f low of migrants into Europe. In return, the EU pledged €3 billion ($3.25 billion) to help improve the refugees’ conditions. The country says it has started rejecting Syrians who arrive without valid visas via third countries. It also has agreed to grant work permits to Syrians as an incentive for them to stay put in Turkey. AP

AN JUAN, Puerto Rico— The Jamaica Ministry of Health has confirmed the Caribbean country’s first case of the Zika virus. A ministry statement released on Saturday says a 4-year-old child has recovered after contracting Zika. It adds that authorities have stepped up prevention and detection efforts in the Portmore, Saint Cather ine area where the child lives. Car ibbean Public Hea lt h A genc y l ab test s for the v ir us came back positive on Fr iday after noon. Authorities are investigating the case in hopes of determining the source of infection. The child began showing symptoms on January 17 and had earlier traveled to Texas. Jamaica’s Minister of Health will provide a full update at a news briefing on Monday. Pregnant women and others on the island are being urged to take precautions to avoid the mosquito that transmits the disease. Mea nwhi le, A si a n gover nments have issued advisories in a bid to contain the mosquitoborne disease, which could be linked to birth defects and can cause temporary paralysis. South Korea: South Korean officials have advised pregnant women against traveling to Central and South America and required doctors to immediately report suspected cases. The Ministry of Health and Welfare included the Zika virus among infectious diseases monitored as potential health threats. Doctors can face fines of up to 2 million won ($1,654) for failing to report patients infected or showing symptoms of infection. The Korea Center for Disease Control and Prevention has also been send i ng te x t messages to people traveling in regions where Zika has spread to inform them of the disease and preventive measures. The Philippines: The Department of Health has advised preg nant women to consider deferring nonessential travel to Zika-hit countries and reiterated its warning to the public to destroy all breeding places of mosquitoes, which can spread dengue and other tropical diseases. No current Zika cases have been reported in the country but in 2012, a 15-year-old boy reportedly was infected in central Cebu city but recovered fully, according to health department spokesman Dr. Lyndon Lee Suy. Health officials have worked to raise public awareness about ways to prevent infections, including by using insect repellents and wearing protective clothing. “We’ve repeatedly urged people not to be hard-headed and keep their sur roundings clean and mosquito-free. Again, let’s not s pr i ng i nto ac t ion on ly when a n i n fec t ion’s a l re ady here,” Lee Suy said. Malaysia: Health authorities have asked travelers from South and Central America who display symptoms, such as fever and rashes, to immediately report

to health centers. Deputy Health Director Dr. Lokman Hakim Sulaiman said the move was imperative as it was not practical to conduct public-health screenings at national gateways. “The virus is difficult to detect and there is no quick point-of-care test which can be used,” he said. Japan: Japan’s Foreign Ministr y urges women to tr y to avoid traveling to Brazil and other affected countr ies during preg nanc y, and adv ised a l l travelers to the reg ion to use caution. It sug gested wear ing long sleeves and pants, using mosquito sprays and avoid leaving out buckets and other containers that can catch water, and repor t to medica l institutions in case of developing suspected sy mptoms. The health authorities asked medical facilities to test suspected patients returning from affected areas and send samples to the national lab. Australia: The Department of Foreign A ffairs and Trade is adv ising preg na nt women to avoid travel in areas where Zika is active. T he federa l gover nment is a lso ask ing Austra lian doctors to look out for sig ns of Zik a infection in travelers returning from affected areas. A spokeswoman said Austra lian laboratories could diagnose the v ir us if required. Cambodia: Cambodia’s only Zika case recovered in 2010 after treatment. The Health Ministry is advising caution and says it’s following the situation in countries with the Zika virus closely. It’s also urging people to destroy mosquito-breeding places. India: Health Minister Shri J. P. Naddahas has stressed controlling the spread of Aedes mosquitoes that transmit dengue and the Zika virus and breed in clean water. “Community awareness plays an instrumental role in this regard,” he said. India is also stepping up surveillance and has set up a technical group to monitor the situation. Hong Kong: Health officials are advising pregnant women and those planning pregnancy to adopt necessar y anti-mosquito precautions, and consider deferring travel. Secretary for Food and Health Dr. Ko Wing-man also said that because only up to one quarter of the infected persons might develop relatively mild illness, “the attention was, therefore, not too big.” Aedes mosquitoes are not found in Hong Kong, but the secretary said other species of mosquito present in the territory are also considered as possible carriers of the disease. Vietnam: The Vietnamese hea lth author it y has war ned people coming from countries with the Zika virus to monitor their health for 14 days and if they develop fever to report to medical facilities. The health authority also warned people to empty water containers and use mosquito nets to prevent the possible spread of the virus. AP

Jordan PM links Syrian refugee admissions to foreign assistance

ZRAQ REFUGEE CAMP, Jordan—Jordan’s prime minister warned on Saturday that it will be “very, very difficult” to keep absorbing Syrian refugees unless his country receives significant economic aid and easier access to European markets. Abdullah Ensour made the link between refugee admissions and aid in unusually blunt comments on Saturday, during a visit to the Azraq refugee camp. He spoke

ahead of next week’s Syria conference where pledges of some $9 billion are being sought for 2016 to alleviate the fallout from the five-year-old civil war. T he conf lict has uprooted millions of Syrians, including more than 4 million who f led their homeland. Most live in o v e r bu rd e ne d re g ion a l ho s t countries such as Jordan, which has ta ken in about 630,000. Deteriorating conditions in the

host countr ies dr iven by aid shortfalls have prompted hundreds of thousands of Syrians to move to Europe. The upcoming aid conference in London will try to find ways to keep more refugees in the region, including by putting large numbers to work and making them less dependent on aid. Currently, most refugees are not allowed to work legally in Jordan and Lebanon, which face

high domestic unemployment. Ensour on Saturday warned of possible changes in Jordan’s refugee policy. “We have opened our borders,” he said. “We will continue to do so provided that others come and help us help the Syrians.... I don’t mean just sending cash or grants. I want them to help the economy at large, that’s to say help the budget, help export....our products because if these people [Syrians] have to join

the industry, then the industry has to sell elsewhere.” If such support is not received, “then it would be very, very difficult for us to continue the way that we did in the past,” he added. Jordan and Lebanon have already tightened entry restrictions for refugees in recent months. About 17,000 Syrians, including women and children, are stranded in rough conditions in a remote desert area on the

Jordanian border, many already waiting for months to enter the kingdom. Jordan only lets in several dozen a day, citing the need for stringent security checks; officials say many of the refugees come from areas controlled by Islamic State extremists. International aid agencies have called on Jordan to speed up security checks and move refugees to the Azraq camp, which stands largely empty. AP

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China stumbles in race to pass US as world’s biggest economy

OR the first time in almost a decade, China has lost ground in catching up with the US economy, when output is measured in dollars.

US gross domestic product increased $590 billion in 2015 from a year earlier, according to data released on Friday. China’s economy, while reporting a 6.9-percent growth for the year, added $439 billion, as a weaker yuan sapped the value of output gains in dollar terms, according to data compiled by Bloomberg. “The US has come back from

the financial crisis with robust technology innovation leading the recovery, while China’s economy is heading down,” said Niu Jun, an international- relations professor at Peking University. “The number itself isn’t a specific reason for being either too optimistic or pessimistic, but if China can’t successfully reform its economy, the real gap between

6.9% China growth in 2015, that added $439 billion

the two will expand, and it will take longer for China to catch up.” Last year was the first time since 2006 that China made no progress in closing the gap with the world’s largest economy. While the US economy expanded 2.4 percent for a second straight year, China slowed to the weakest expansion

pace in a quarter-century as old growth drivers like heavy industry and exports slow. As for 2016, China’s economy is forecast to expand 6.5 percent in real terms, while the yuan is projected to depreciate to 6.79 against the dollar, down more than 7 percent from the average level i n 2015. “W hether China can catch up the US in dollar terms is not important, but whether China can sustain its development is,” said Xia Le, a Hong Kong-based economist at Banco Bilbao Vizcaya Argentaria SA. “As long as China can expand 5 percent a year in the next decade, it’s only a matter of time until it surpassed the US.” Bloomberg News

Monday, February 1, 2016

$4B needed for computer science education–Obama

ASHINGTON—President Barack Obama said on Saturday he will ask Congress for billions of dollars to help students learn computer-science skills and prepare for jobs in a changing economy. “In the new economy, computer-science isn’t an optional skill. It’s a basic skill,” Obama said in his weekly radio and Internet address. Obama said only about one-quarter of K to 12 schools offer computer-science instruction, but that most parents want their children to develop analytical and coding skills. “Today’s auto mechanics aren’t just sliding under cars to change the oil. They’re working on machines that run on as many as 100 million lines of code,” Obama said. “That’s 100 times more than the Space Shuttle. Nurses are analyzing data and managing electronic health records. Machinists are writing computer programs.” The federal budget proposal for 2017 that Obama plans to send Congress on February 9 will seek $4 billion for grants to states and $100 million for competitive grants for school

districts over the next three years to teach computer science in elementary, middle and high schools, administration officials said. Separately, the National Science Foundation and the Corporation for National and Community Service this year will start spending $135 million to train teachers over five years. Obama also wants governors, mayors, business leaders and tech entrepreneurs to become advocates for more widespread computer science education. Brad Smith, president of Microsoft, said computer-science education is an “economic and social imperative for the next generation of American students.” Smith, who spoke on a media call arranged by the White House, said that up to a million US technology jobs could be left unfilled by the end of the decade. Meanwhile, countries as large as China and as small as Estonia are expanding computer-science education, Smith said, but in the US “we’re moving, frankly, just more slowly than we need.” AP

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Turkey warns Russia over airspace violation

PROTESTERS of Planet Syria wearing masks depicting (from left) Russian Foreign Minister Sergey Lavrov, US President Barack Obama, Syrian President Bashar al-Assad, Russian President Vladimir Putin and UN SecretaryGeneral Ban Ki-moon serve a symbolic siege soup during the start of Syrian Peace talks in Geneva, Switzerland, on Friday. MARTIAL TREZZINI/KEYSTONE VIA AP

Syrian opposition vows: No talks if demands not met

ENEVA—The main Syrian opposition delegation vowed on Saturday not to participate in UN-sponsored peace talks with the government unless their demands are met, including lifting the siege imposed on rebel-held areas and an end to Russian and Syrian bombardment of regions controlled by opposition fighters. The opposition warned that if these conditions are not met, there will be no reason for the team to stay in Geneva. The nearly five-year conflict has left at least 250,000 people dead, forced millions to flee the country and given an opening to the Islamic State (IS) group to capture territory in Syria and Iraq. It has drawn in the US and Russia, as well as regional powers, such as Turkey, Saudi Arabia and Iran. The indirect peace talks began here on Friday with a meeting between the UN envoy and the Syrian government delegation. The main opposition group, the Higher Negotiations Committee (HNC), boycotted that session saying it won’t take part until a set of preliminary demands are met: releasing detainees, ending the bombardment of civilians by Russian and Syrian forces, and lifting government blockades on rebel-held areas. The HNC later agreed to send a delegation to meet with UN officials, while still insisting it would

Months, timetable for political transition in Syria

not negotiate until their demands are met. The HNC decision to come to Geneva gave a glimmer of hope that peace efforts in Syria might actually get off the ground for the first time since two earlier rounds of negotiations collapsed in 2014. “We are here to discuss humanitarian matters first, and if this happens we will start the negotiations,” the opposition’s delegation chief spokesman Salem al-Mislet told reporters upon the arrival of some two dozen members at their

hotel in Geneva. “If not, there will be no negotiations and there will be no reason for us to stay here.” He added that the HNC team will discuss these issues with UN Special Envoy to Syria Staffan de Mistura during a meeting scheduled for Sunday. “We are keen to make this negotiation a success but you should ask the other side. The other side is pretending to present the Syrian people. In fact, he is killing the Syrian people. We’re here to save the remaining children of Syria,” al-Mislet said in English. A not her senior delegat ion member, Riad Naasan Agha, said their team includes several rebel groups, including the Army of Islam that controls large areas near the capital Damascus. Asked if the ultraconservative Ahrar al-Sham group is part of the team, he said “they did not withdraw [from the HNC] but they are not with us” in Geneva. The meetings in Geneva, billed as multiparty talks, are part of a process outlined in a UN resolution last month that envisions an 18-month timetable for a political transition in Syria, including the drafting of a new Constitution and elections. “When there is an order for a cease-fire against civilians, an order to lift the siege and an order to release detainees then we will enter the negotiations and talk about a transitional governing body with full executive powers,” he said. The Syrian opposition team is demanding that a governing body with full executive powers rules Syria during the transitional period. They say President Bashar al-Assad should not have any role

during the transitional period. Meanwhile, officials from Syria’s largest Kurdish group left Geneva on Saturday after being excluded from the negotiations, a Kurdish official and opposition figures said. Saleh Muslim, copresident of the Democratic Union Party, or PYD, left when it became clear he would not be invited to participate, according to Kurdish official Nawaf Khalil. The participation of the PYD has been a divisive issue in advance of the Geneva talks. Turkey, which has struggled with its own large Kurdish population, considers the PYD a terrorist organization and the HNC claims they are too close to the Syrian government. Unlike other groups from outside the HNC that were invited as advisers, the PYD received no invitation from UN Special Envoy to Syria Staffan de Mistura. The move to exclude the PYD angered Qadri Jamil, a former Syrian deputy prime minister who has become a leading opposition figure but is not part of the HNC. Jamil said the PYD’s military wing has been the most effective force on the ground in Syria fighting the IS group. “The PYD is a historic part of the Syrian democratic opposition and PYD today is fighting terrorism on the ground and it is a main force,” Jamil told a group of journalists in Geneva on Saturday. Jamil said they are working with the UN to resolve the crisis regarding the representation of the PYD. Bassam Bitar of the opposition’s Movement for a Pluralistic Society said the PYD will most likely be invited to take part in future rounds of negotiations. AP

UN chief: Child sexual-abuse claims shameful

DDIS ABABA, Ethiopia— The United Nations secretary-general expressed shame on Saturday over allegations that UN peacekeepers and foreign troops sexually abused children in Central African Republic (CAR). “We are all deeply ashamed and horrified over the damage that has been done when peacekeepers exploit and abuse vulnerable people,” Ban Ki-moon said at a summit for African leaders in the Ethiopian capital Addis Ababa.

“The appalling acts of a few undermine the dedicated work of many. The UN has a zero tolerance policy on sexual abuse and exploitation. We must all work together to ensure accountability and transparency.” The UN human-rights office said on Friday that it had found six more cases of alleged sexual abuse against children by European troops in CAR, including a 7-year-old girl who said she had to perform sexual acts on soldiers

in exchange for water and cookies. A UN team recently interviewed five girls and a boy who claimed their abusers were part of French and European Union (EU) military operations in the troubled African country, the office of High Commissioner for Human Rights Zeid Raad al-Hussein said. The sexual abuse allegedly took place in 2014 in or near a camp for displaced people near M’Poko airport in the CAR capital Bangui, but only came to

light in recent weeks, the latest in a string of similar allegations. France, CAR’s former colonial ruler, deployed several thousand troops to the country in late 2013, as violence between Christians and Muslims sent thousands f leeing from their homes. An African Union mission that began in April 2014 was taken over by a UN peacekeeping force five months later, while the EU force ended an 11-month mission in March last year. AP

NKARA, Turkey—Turkish President Recep Tayyip Erdogan warned Moscow on Saturday that it would be forced to “endure the consequences” if its jets continue to violate Turkish airspace, after Ankara reported a new border infringement incident by a Russian plane. North Atlantic Treaty Organization (Nato)-member Turkey said another Russian war plane violated its airspace on Friday despite several warnings—two months after Turkey’s militar y shot dow n a Russian jet for crossing over its territor y. The past incident seriously strained the previously close ties between the two countries, damaging a strong economic partnership. “We regard this infringement which came despite all our warnings in Russian and in English as an effort by Russia to escalate the crisis in the region,” Erdogan told reporters before departing on a Latin American tour. “If Russia continues the violations of Turkey’s sovereign rights, it will be forced to endure the consequences.” He did not specify what those consequences might be. Russian Defense Ministry spokesman, Maj. Gen. Igor Konashenkov, denied that there was any violation of Turkey’s airspace and called the Turkish statements “unsubstantiated propaganda.” His statement was carried by state news agencies Tass and RIA Novosti. Erdogan said he attempted to reach Russian President Vladimir Putin to discuss the issue, but the Russian leader did not respond. “These irresponsible steps do not help the Russian Federation, Nato-Russia relations or regional and global peace,” Erdogan said. “On the contrary they are detrimental.” Turkey’s Foreign Ministry said the Russian SU-34 crossed into Turkish airspace on Friday,

ignoring several warnings in Russian and in English by Turkish radar units. It said Ankara summoned the Russian ambassador to the ministry on Friday evening to “strongly protest” the violation. It was not clear where exactly the new infringement had occurred. Nato Secretary-General Jens Stoltenberg also called on Russia “to act responsibly and to fully respect Nato airspace” but also urged “calm and de-escalation” of tensions between Moscow and Ankara. “Russia must take all necessary measures to ensure that such violations do not happen again,” he said in a statement. “Nato stands in solidarity with Turkey and supports the territorial integrity of our ally, Turkey.” There was no immediate comment on the incident from Moscow. In November, Turkey shot down a Russian plane which violated its airspace near Syria, touching off a crisis between the two countries. It was the first time in more than half a century that a Nato nation had shot down a Russian plane. Tu rke y broug ht dow n t he Russian SU-24 bomber near the border with Syria last November 24, saying it violated its airspace for 17 seconds despite repeated warnings. Russia insists the plane never entered Turkish airspace. One pilot and a Russian marine of the rescue party were killed in the incident. The Russian military quickly sent missile systems to Syria and warned that it would fend off any threat to its aircraft. Moscow also punished Turkey by imposing an array of economic sanctions. On Saturday, Stoltenberg said Nato had agreed in December to increase the presence of Awacs early warning planes over Turkey to increase the country’s air defenses. He said the decision was taken before Friday’s incident. AP

Drone schools train new pilots in China

EIJING—Joysticks at their fingertips, the mostly male students packing the classroom lift their virtual helicopters into the air, part of a new cottage industry that’s sprung up in China: drone pilot schools. China is already the world’s biggest drone manufacturer, churning out remotecontrolled flying machines that range from 3D urban mappers to teargas spraying models for police. But it lacks qualified pilots to fly them. Young men, in particular, are flocking to drone schools, such as TT Aviation Technology Co., one of more than 40 in China, hoping to land a potentially lucrative job in an exciting new field. TT Aviation offers a two-week intensive course for 8,000 yuan ($1,200) where students learn regulations and how to pilot using simulators and real drones. At the end of the course, they can try to earn the license required by China’s Civil Aviation Administration to operate drones that are heavier than 7 kilograms and fly higher than 120 meters. Xu Honggang, 24, believes the license will open doors to piloting jobs that make at least 5,000 Chinese yuan ($780) per month, higher than average. Some experienced pilots bring in double that amount, he said. “I want to build my own company with drone services,” Xu said one recent afternoon next to a grassy field where his instructor demonstrated basic moves with a small radio-controlled helicopter. “I like to work for myself. This is a new and popular line of work.” The opportunities appear promising. More than 10,000 new pilots are needed this year across all industries in China, but only 1,000 pilots now hold licenses, said Yang Yi, the general manager of TT Aviation, which also manufactures and sells drones to private and public-sector customers. “The drone pilot and the car driver are the same: They both need systematic skill training and regulated studying to make sure everyone knows the rules before the real operation,” she said. Drones are touted as game-changers in a range of industries, including agriculture, logistics, film production and law enforcement. The sector has gotten support from the central government, which is keen on

promoting robotics and automation to sustain economic growth as labor costs rise. Chinese firms are making inroads producing unmanned machines beyond industrial use, as well. Baidu, the Beijingbased search engine, is developing a selfdriving car, while DJI, a Shenzhen-based drone maker valued by US investors at $8 billion, has cornered more than half the world consumer drone market. So far, more than half of TT Aviation’s products are used in agriculture. China has vast farmlands, and there is a high demand for drones to be used in pesticide spraying because the labor force is shrinking even as labor costs rise, Yang said. The company said the police will use drones for patrols, while utilities use them for maintaining electricity infrastructure or mapping pipelines. The Shandong Qihang Surveying and Mapping Technology Company has used photographs taken by its drones to build vast urban databases and 3D models of cities. Every building can be catalogued, with information about the people and businesses behind every window stored in a database—a valuable technology for government bodies like the census bureau, urban planners and public security agencies, company Vice President Wu Haining said. “With oblique photograph technology and through cooperation with the government, people will be able to check any uploaded personal information in a room from any building in our 3D map,” said Wu, whose company also produces surveillance drones with five cameras. The rapid development of new types of drones requires a pool of trained and specialized drone operators, Wu said. Even as drones offer law enforcement sharply expanded capabilities, authorities in China, as in many other countries, are scrambling to regulate their use. The country is now beginning to set nationwide regulations on where they can fly, which are applauded by many in the Chinese industry. “We need pilots with licenses, because safety is the biggest concern in the operation of drones. Although we have insurance, we still need strict regulations for studying and training to avoid any incidents,” Wu said. AP

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Obama to meet with Muslims on first visit to US mosque

HILLARY PRESERVES NARROW LEAD IN DES MOINES BEFORE IOWA CAUCUS

ASHINGTON— In a public show of support, President Barack Obama will meet with Muslim community members on Wednesday in Baltimore on his first presidential visit to an American mosque. Obama plans to hold talks with Muslim leaders at the Islamic Society of Baltimore, the White House announced on Saturday. The visit will amount to a public embrace of Muslims by Obama at a time when publ ic sent i ment against them seems to be g row ing , l argely f ueled by fears of terrorist acts carried out by extremist groups. Obama has largely put distance between himself and US Muslims, opting against fueling the rampant theories that he is a closet Muslim who was born in Kenya, the country of his late father’s birth. Obama is American by virtue of his birth in Hawaii and has released his birth certificate as proof. He is also Christian. But segments of the US population still believe neither to be true. As such, the visit will come during the final year of Obama’s two terms in office. The White House said he will go to the Baltimore mosque to “celebrate the contributions Muslim A mericans make to our nation and reaffirm the importance of religious freedom to our way of life.” In remarks to be delivered at the mosque, Obama “will reiterate the importance of staying true to our core values: welcoming our fellow Americans; speaking out against bigotry; rejecting indifference; and protecting our nation’s tradition of religious freedom,” the White House said. Obama has been outspoken in pushing back against calls by Republican presidential candidate Donald Trump and others to block Muslims from being admitted to the US over fears of terrorism linked to radical extremist groups. Others have cited potential security risks in pushing legislation in Congress to limit the resettlement of refugees from Iraq and Syria, where the Islamic State (IS) group is active and from which it has exported its brand of terrorism to other regions of the world. Obama has argued that such efforts are wrong and serve only to incite extremist groups, weaken America’s leadership around the world and put US security at risk. “We’re not going to build progress with a bunch of phony tough talk, and bluster, and over-the-top claims that just play into IS’s hands,” the president said. He spoke to House Democrats on Thursday as they strategized at a meeting in Baltimore. “We’re not going to strengthen our leadership around the world by allowing politicians to insult Muslims or pit groups of Americans against each other. That’s not who we are. T hat’s not keeping America safe.” It was not immediately clear why the White House chose the Islamic Society of Baltimore for the visit. AP

Monday, February 1, 2016

PASSENGERS run to board a train at the Beijing Railway Station in Beijing on Saturday. AP/MARK SCHIEFELBEIN

China braces for 2.9 billion trips during Lunar New Year

EIJING—Chinese are packing train and bus stations as the peak travel season kicks into high gear this weekend, with hundreds of millions of people going home for Spring Festival celebrations—or head for vacation destinations.

Chinese travelers are expected to make 2.9 billion trips during the 40-day period between January 21 and March 3, with the majority of those trips falling in the weeks around the February

8 Lunar New Year, the Ministry of Transport said. “I have my parents back in my hometown and I must go back and have the family reunion,” said Ma Xijie, a migrant worker

4.4% Drop in passenger traffic as jobs dry up

from Sichuan province who was traveling back home by train with his son and wife. “It’s great to have the whole family sit down and enjoy a family dinner together. I have been working far from home with my kid for a whole year,” he said. At the Beijing railway station,

student Ren Chongyuan from Shandong province said it was a bit easier to buy tickets this year, but he still had to book two months in advance. This year’s travel crush—considered the largest annual human migration—may be relatively less severe due to a lackluster economy. In coastal Zhejiang province near Shanghai, officials expect a 4.4-percent drop in passenger traffic as jobs dry up and migrant laborers pack up early to head to their family homes in China’s hinterlands well before the New Year. By comparison, Chinese made 3.6 billion trips during the same holiday period in 2014. AP

America, its politics in flux as 2016 voting begins

ES MOINES, Iowa—First there was the promise of political change in Barack Obama’s historic 2008 election. Then the pledge to upend Washington’s ways after the 2010 conservative tea party wave. But for some Americans, the change and disruption have come too slowly, or failed altogether. On the eve of the first voting contest in the 2016 presidential election, these voters are pushing for bolder, more uncompromising action, with an intensity that has shaken both the Republican and Democratic establishments. Candidates with deep ties to party leadership have been unexpectedly challenged by a billionaire businessman-turned-reality television star, a young senator loathed by Republican leaders and an unabashed democratic socialist. “A lot of people feel like the status quo is a machine that’s grinding them down,” said Sen. Claire McCaskill, a Democrat from Missouri. “They are gravitating toward candidates that are disruptive and promising massive change.” Indeed, the campaigns of Republicans Donald Trump and Ted Cruz, as well as Bernie Sanders in the Democratic race, have been fueled for months by anger, frustration and anxiety over an economic and

national security landscape that is undeniably in flux. Wages have barely budged and the costs for housing, education and health care are soaring. The country is more racially and ethnically diverse than at any point in its history, with census data projecting white Americans will make up less than half the population by mid-century. New terror threats feel both confusing and very close to home. Monday’s Iowa caucuses will offer the first hard evidence of whether the outsider candidates can turn the energy around their campaigns into votes. Trump and Cruz have been battling for supremacy in Iowa, while Sanders has been cutting into Democratic front-runner Hillary Clinton’s lead. Sanders, an independent who caucuses with Democrats in the Senate, has spent years railing against the influence of wealthy and corporate interests on American politics. Yet, even he says he’s surprised by what’s happening. “My gut told me that this message would resonate with the American people, but to be honest with you, it has resonated stronger and faster than I thought it would,” Sanders told The Associated Press (AP). For years, surveys have shown a large majority of Americans say

the country is headed in the wrong direction. But that sentiment now appears to be disproportionately driven by frustration with politics and the political system. A recent AP-GfK poll showed that among the 74 percent of Americans with a negative view of the country’s direction, 51 percent of Republicans and 38 percent of Democrats listed at least one political reason for their negative outlook— far more than listed an economic or foreign policy-related reason. No candidate has tapped into the public’s disillusionment with politics better than Trump, whose controversial comments about Mexicans, Muslims and women are seen by his supporters as a welcome change from most candidates’ careful political correctness. Cruz has tapped into a similar antiestablishment sentiment. Despite being in the Senate, Cruz aligned himself with Republicans who believe party elites made lofty promises to win the House in 2010 and the Senate in 2014, then ignored the will of the voters who drove those victories. “Republicans get to Washington and become part of Washington,” said Brendan O’Brien, 51, of Portsmouth, New Hampshire. It’s not just Republicans grappling with a disillusioned electorate.

Clinton entered the Democratic race with all of the institutional advantages. Most Democrats who were seen as potentially tough challengers decided against a run, including Vice President Joe Biden. At the heart of the fight between Clinton and Sanders is how much the government should do to ease economic burdens for the middle class. Sanders wants to make tuition at public colleges and universities free. Clinton wants to lessen the burden of the student loan-repayment system and create incentives for institutions to lower costs. With prescription-drug costs soaring, Clinton wants to cap out-of-pocket drug costs at $250 a month. Sanders wants to change to a single-payer hea lth-care system that he says would lower overall health-care costs, even including the tax hike to help pay for the program. McCaskill, a Clinton supporter, says Sanders is running on “promises that in his gut he’s got to know can’t be kept.” The Republican establishment makes the same argument about Trump’s proposals. But all that matters is whether voters believe the candidates’ plans can fly—or whether that factors into their vote at all. Soon, they’ll have their say. AP

DES MOINES, Iowa—Hillary Clinton is holding on to her slim lead over Bernie Sanders in Iowa, according a new Des Moines Register/Bloomberg Politics poll released just two days before the Iowa caucus. Clinton has the support of 45 percent of likely Democratic caucus goers in the survey, up from 42 percent in the last poll conducted two weeks ago. Sanders was the top choice of 42 percent of likely voters. Martin O’Malley, who was the top choice for just 3 percent of voters, came in third. The poll’s margin of error is plus or minus 4 percentage points. Pollster J. Ann Selzer said Clinton was beating Sanders among older voters, especially older women. Sanders’s coalition was made up of large numbers of young voters and first-time caucus goers, demographics that helped propel Barack Obama into the lead in the 2008 Iowa caucus. The poll asked other questions about what voters think of the candidates. It found 80 percent of respondents said it’s time for a woman president. It also found 68 percent of respondents said it’s OK for a democratic socialist to be president. Some have suggested that Sanders, who identifies as a democratic socialist, espouses economic views that make him un-electable. Los Angeles Times/TNS

SANDERS VOWS TO QUICKLY BREAK UP BIG BANKS

WASHINGTON—Battling across Iowa ahead of the first-in-thecountry presidential nominating vote on Monday, Hillary Clinton and Bernie Sanders are dueling on fertile populist ground: resentment against Wall Street, bailed-out big banks and a financial system seen as rigged. Popular resentment still smolders over the taxpayer bailout of Wall Street megabanks and financial firms in the 2008-2009 financial crisis. The economy’s recovery has been slow since the crisis struck in fall 2008 and set off the worst recession since the Great Depression of the 1930s, wiping out some $13 trillion in household wealth. Sanders pledges to break up the biggest banks and financial firms within a year of being elected president. “Break them up” is his mantra at rallies around Iowa, where most of his crowds have been outstripping Clinton’s. But is it that simple? No. “I just don’t see it happening,” says Oliver Ireland, an attorney specializing in banking law at Morrison and Foerster who was an associate general counsel at the Federal Reserve. “He’s doing populist rhetoric in the Midwest, which is big on populist rhetoric.” AP

TRUMP LEADS IOWA G.O.P. RACE, STATE’S LEADING POLL FINDS

DONALD TRUMP leads the Republican field as the candidates move into the home stretch for Monday’s Iowa caucuses, according to the state’s most authoritative poll. The Iowa Poll, sponsored by the Des Moines Register and Bloomberg, finds Trump ahead with 28 percent of the vote, followed by Sen. Ted Cruz at 23 percent. Sen. Marco Rubio sits in third place at 15 percent. Although many polls try to survey Iowa’s voters in advance of the caucuses, which kick off the nomination process, the Iowa Poll, directed by Ann Selzer, has attained preeminence because of its history of accurately forecasting many of the results in recent election cycles. Poll respondents said, by 35 percent to 24 percent, that Trump was more likely than Cruz to win a general election. Those Republican voters also said that Trump was most likely to bring change to Washington and cause fear among US enemies. Cruz won the matchup on who had the best experience to be president. TNS

Tourism&Entertainment BusinessMirror

A10 Monday, February 1, 2016

Editor: Carla Mortel-Baricaua

At Shangri-La Mactan Resort and Spa: Dream weddings are made of these

DETAILED shot of Mactan Ballroom’s Moroccan-themed wedding

BEACH wedding setup

B L R. G

HE sun slowly sets and the sound of the waves laps in the background, while wedding vows are exchanged. Tropical flowers accentuate the beauty of the moment, and guests enjoy the breeze coming in from the Mactan Channel, all the while anticipating the seaside banquet prepared by Shangri-La Mactan Resort and Spa chefs. With an expansive view of the Mactan Channel and the Olango Island, the setting is perfect. Meticulous attention to detail in the ceremony venue, well-laid cocktail and dining-table settings, and sumptuous dishes with an attentive staff awaiting to pamper every guest’s whim and caprices. Truly, no couple could ask for more. This is what a dream wedding should be. The moment I set foot in my room’s balcony overlooking the properly laid-out Shangri-La’s Mactan Resorts and Spa after a grueling day of covering the annual Sinulog Festival, I knew right there and then that I have found a paradise on earth. Instantly, I also found myself imagining my own paradise wedding. The lush-manicured foliage and expansive view of the ocean is already a backdrop for a momentous wedding. No wonder, ever since the resort has opened in

ELEGANT wedding setup at The Marquee

1993, it has been holding wedding events. A trusted brand in delivering quality services, its accessibility to and from the airport, and the personalized and dedicated service of its wedding specialists, among others, guarantee success in the grand event. With a bride in the hands of the professional wedding repertoire of the resort’s experienced directors, managers and staff, the groom awaits a blooming bride down the aisle. Plus, the plush rooms with luxurious details ensure a honeymoon to remember. Upon checking, I was amazed to learn that the resort’s wedding packages include the gamut of what a wedding should be: Combinations of the venue, pianist, wedding singers, buffet or set menu, beverage choices, a wedding cake, floral centerpieces for tables, wedding guests book, gift for the couple, overnight

PRISTINE white-themed setup at the Ocean Pavilion

stay in a suite with buffet breakfast at Tides, and a gift certificate for the same, bridal car, even a shuttle service and complimentary parking. And because the resort is an expansive property of 13 hectares of lush tropical greenery, ceremonies vary in names and locations. The Greens Ceremony—held under a canopy of trees in the Ocean Pavilion, Chapel Garden—Ocean Terraces and Golf-Helipad Garden, even includes the officiating minister’s services. The La Mar Wedding Reception is on the beachfront, while the Under the Stars Wedding Reception can be held at the Ocean Terraces, Golf-Helipad Garden or Chapel Garden. The Dream Wedding Reception may be at the Ocean Pavilion, Rosal Ballroom, Mactan Ballroom or The Marquee, depending on the number of guests. The resort is also open to the customization of a wedding package that offers flexibility to fulfill the couple’s wedding wishes. According to Cassandra Cuevas, director for communications of the resort, “styling, décor and lighting with

MOROCCAN-themed wedding at Mactan Ballroom

the advent of technology make customization help achieve the dream wedding.” She adds that “the Ocean Pavilion affords a breathtaking view of the ocean through its glass walls, and couples fall in love with the venue once they see it. The Mactan Ballroom—with its elegant and sophisticated space, its rich detailing, warm accents and sparkling chandeliers—almost needs no other décor to provide a spectacular venue for a wedding. The Rosal Ballroom is more subdued but no less elegant, designed for intimate affairs. The Marquee, with its wide-open floor plan, soaring ceiling and neutral colors, is the perfect blank palette for dream setups.” Careful planning and execution go into every wedding event. The high expectations of couples and their immediate families are met with the expertise and experience of the Shangri-La personnel assigned to a wedding event. These are the events manager and the wedding specialist, who heads the planning, and is in-charge of overall coordination and execution. The

GARDEN wedding at the Ocean Terraces

Banquet Team is headed by the director of banquet operations and banquet manager, in close coordination with banquet chef with the rest of the kitchen staff. Each event also has a banquet supervisor, who leads the service team. While the typical layout choices of the venues available for the ceremony are theater style, standing or lounge for cocktails, and reception setups could either be round, long or a combination of both, customization is still possible as long as the venue of choice can accommodate it. The venue spaces can also be fl ipped to accommodate separate functions when the ceremony, cocktails and reception are all in the same venue. “The Banquet Team is well-trained in doing ‘back-to-back’ setups on just about any type of venue,” Cuevas confidently asserts. Shangri-La Mactan weddings offer a wide array of venue options—from indoor to outdoor, from beach to gardens, with varying capacities from an intimate group to a big celebration. With 530 guestrooms, the resort can accommodate special group rates for a

minimum of 10 rooms. Checked-in guests are also treated to the use of beach and pool facilities, sports and recreational activities, with food and beverage outlets aplenty, along with relaxation offerings from Chi, The Spa. Cuevas advises any couple that, “aside from choosing the most suitable wedding packages with value-laden inclusions, a carefully planned menu with unforgettable dishes and a great photographer or videographer are the key elements to create great memories.” She proudly says that the “legendary Shangri-La hospitality, blended with our Cebuano warmth, makes every event unforgettable.” In my dreams that night in my luxurious room, happy thoughts of what my wedding could have been came in full color. And I decided to tour the resort the following day to see for myself the different wedding venues it offers. It was hard leaving the resort the following day, knowing my stay wasn’t enough to savor the goodness of the paradise. I promise myself, I will be back in time....

Tourism&Entertainment BusinessMirror

Editor: Carla Mortel-Baricaua

Monday, February 1, 2016

A11

SARANGANI FEST CELEBRATES

CULTURE AND NATURE T’BOLI tribal dance

DALANGEN Sarangani Indigenous Peoples Show by Martin Bernad

TRIBAL handwoven apparel

ARANGANI Province, home to the well-loved tasty tuna which abounds its waters, sizzled with the recent MunaTo International Music Festival to mark its 23rd founding anniversary.

MATHEW NGAU JAU and Living Heritage of Malaysia MARTIN BERNAD WAWAY Saway of Bukidnon MARTIN BERNAD

Now on its 13th edition, the celebration captured the many facets of Sarangani through a world music-inspired extravaganza at the Provincial Capitol Complex in Alabel. Taking center stage was the celebrated traditional sapeh player Mathew Ngau Jau and the Living Heritage of Malaysia. The sapeh, a short-necked lute, is the indig-

enous instrument of tribal peoples living along the rivers of Sarawak state of Malaysian Borneo. A member of the Ngorek tribe, Ngau Jau is one of the few professional sapeh players and is recognized as the undisputed authority on the instrument. The group, which was brought in by the Department of TourismRegion 12, also conducted lectures

and cultural exchanges with T’boli indigenous musicians in Lake Sebu, South Cotabato, who are known for their age-old kudyapi string instrument. Adding ethnic beat was international performer Rodelio “Waway” Saway and his Talaandig Band, who mesmerized the crowd with their tribal music reflecting the soul of the lumad tribes of Mindanao. The Bukidnon-based visual artist was among the 10 winners in the 2012

Gawad Geny Lopez Bayaning Pilipino Award from the Visayas-Mindanao area. Provincial officials, led by Gov. Steve Solon, said the event celebrates the rich cultural heritage and natural wonder of Sarangani, which are the province’s main come-ons. He added that Sarangani has reformatted MunaTo Festival into an international musical extravaganza to capture the province’s

2,000-year-old history and showcase its cultural kaleidoscope. MunaTo is a B’laan word which meant “first people,” referring to the prehistoric primitive inhabitants who dwelt in the remote caves of Maitum town. Other special events were the Dalangen, which displayed the province’s ethnic cultural heritage through authentic song, dance and apparel. Sarangani is home to Maguindanaoan, B’laan and T’boli com-

munities who live harmoniously. Concluding the festivity was Aegis band, known for its birit notes, which rocked the night away in an open party with local bands joining the jamming sessions. MunaTo is inspired by the sought-after Rainforest World Music Festival, regarded as the “Woodstock of Asia,” that gathers the world’s best ethnic-inspired musicians in Kuching, Sarawak, and draws tens of thousands of enthusiasts.

Asean targeting big neighbors to hike inbound tourism volume

HE 10-member Association of South East Asian Nations (ASEAN), in positioning and promoting itself as a single destination, is targeting the region’s big neighbors as a strategy to raise inbound tourism volume as fast as possible. This assessment emerged from the recently concluded ASEAN Tourism Forum (ATF) 2016 held in Manila on January 18 to 22. The ATF 2016 meetings involving non-ASEAN countries showed China, Russia and India, aside from Japan and Korea, figuring prominently. Those three countries form part of the so-called BRICS, the acronym for Brazil, Russia, India, China and South Africa,

all emerging markets and investment destinations that have been posting enormous economic growth for more than a decade. While there have been signs of decline in their growth rates, those five countries with large populations and hefty dollar reserves from their economic booms remain a vast source of tourists for inbound travel to ASEAN, especially the nearby India to the west, and Russia and China to the north. Their importance to ASEAN was acknowledged by ATF 2016 Philippine Host Committee Chairman and Undersecretary Benito C. Bengzon Jr. of the Department of Tourism (DOT), who described their regular inclusion in this annual re-

gional meeting as “strategically mutual” for all intents and purposes. “The proximity to ASEAN of Russia, India and China—together with Japan and Korea—makes us all account for more than a contiguous half of the entire Asian continent. Travel between those countries and ASEAN entails less time and cost than anywhere else beyond,” Bengzon said. Included among the invited foreign buyers at ATF 2016 were travel agents from South Africa, which is much closer to ASEAN than Brazil that lies far across the Pacific. Nonetheless, Brazil will have a delegate to the ATF. “And by proximity alone, ASEAN becomes attractive to the people of those

countries, which can help our tourism volume attain critical mass and get our region promoted as an integrated destination for the world market by mere word of mouth. It’s a strategy that just turns up and happens naturally,” Bengzon explained. He said surplus capital from developed and emerging markets could also help ASEAN expand its absorptive capacity for tourism through investments in property development and support infrastructure. “But we have to do that (product and property development) according to the current and projected requirements of the market. That’s why ASEAN does consultative meetings with our Asian

neighbors. We cannot afford to have a disconnect simply because of gaps in communication and diplomacy at levels that matter most,” Bengzon stressed. Thus, participants in ATF 2016 were some 2,600 delegates from 64 countries, at least 438 of them were wholesale buyers of tourism products and travel packages and 86 were members of the media from 37 countries. They also had the opportunity to visit the ASEAN exhibits and saw what makes this region a single, unified destination. Included in their itineraries were post-event tours on Jan. 23 to 26 to heritage sites in the Ilocos, Cordillera and Southern Tagalog regions, and eco-adventures in Palawan, Bicol, Bohol, Cebu, Siquijor,

Negros Oriental and Davao. Comprising the huge foreign delegation were industry players and decision makers from the United States, United Kingdom, Australia, Hong Kong, Belgium, India, Bangladesh, Greece, Netherlands, France, Poland, Malaysia, Indonesia, South Africa, Cambodia, Bulgaria and Japan, among others. “And for the very first time, the ATF has just been organized specifically to provide a fully-integrated ASEAN brand experience to the global market, ironically but deliberately key messaging our regional diversity as a brand-defining differentiator, whose visual idiom translates into ‘complete tourism package’,” Bengzon stressed.

A12

Science Monday

Monday, February 1, 2016

BusinessMirror

Editor: Lyn Resurreccion • www.businessmirror.com.ph

2015 winners dominate 18th PHL Math Olympiad

STUDENTS from the Castillejos Resettlement High School in Zambales welcome the Juan Konek! Project and are excited to have the free Wi-Fi Internet access reach their province.

Govt free Wi-Fi project to reach rural areas

UBLIC places all over the country— including the rural areas—will soon have free Wi-Fi access.

The Free Wi-Fi in Public Places project will install wireless Internet access points in town plazas, parks, government offices, health units and transport terminals, including train stations, seaports and airports. The total number of beneficiary municipalities stands at 1,435. Science Secretary Mario G. Montejo is hopeful that with the increased budget, the industry will better participate in the program. “We are looking forward to providing connectivity through our private-sector partners, especially in the rural areas. With Internet connectivity readily available, their lives can be enhanced with better access to weather information, education, agricultural resources, commerce, e-government services, as well as employment, through online jobs,” Montejo said.

The Department of Science and Technology-Information and Communications Technology (DOSTICT) Office’s Free Wi-Fi Internet Access in Public Places Project will include Class 1 and 2 municipalities, in order to better reach the Class 3 to 6 municipalities, which were the original target beneficiaries of the project. The decision to include Class 1 and 2 municipalities initially stemmed from the low participation in the procurement of providers for the original 967 beneficiary municipalities. A reason cited by the providers was the low price of Allocated Budget for Contract (ABC) for the various municipalities. According to Undersecretary Louis Casambre of the ICT Office, “We intend to increase the budget allocation for Municipal Connectivity for the project, by around

1,435 Municipalities will be benefited

50 percent. Likewise, we will also be including Class 1 and 2 municipalities in order to better reach Classes 3 to 6, the ones who need Internet connectivity the most.” Casambre said providers would need to upgrade and expand their communications infrastructure in order to serve far flung areas. With Class 1 and 2 municipalities included it would be easier for them to reach the poorer communities. “Tenders are currently being prepared for the new municipalities with the new budget, and they should be available within the month,” Casambre added. According to the Project Management Team, P1.6 billion was added to the 2015 unobligated

funds for the 2016 budget. Domestic Internet connectivity to the 14 major cities of the project, which will act as hubs, has already been awarded to a joint venture between Innove and Yondu Inc. While connectivity to the international Internet was awarded to Philippine Long Distance Telephone Co., connectivity to various municipalities was awarded to WIT, Converge ICT Solutions and a joint venture between AZ Communications and Omniprime. The System and Management and Access component of the project which will oversee the nationwide network of access points and provide the hardware necessary was awarded to Abratique and Associates Inc., which will be utilizing Cisco equipment to deliver connectivity to the end users . The ICT Office of the DOST is the Philippine government’s lead agency on ICT-related matters. Its primary thrusts are in the ICT Industry Development, e-government, ICT policy development, Internet for all and Cybersecurity. S&T Media Service

FARRELL ELDRIAN WU (center) of MGC New Life Christian Academy topped the recently held 18th Philippine Mathematical Olympiad. Kyle Patrick Dulay (left) of Philippine Science High School-Main Campus and Albert John Patupat of Holy Rosary College, placed first and second runner-ups, respectively. All three were part of last year’s national team to the International Mathematical Olympiad.

EDALISTS in last year’s International Mathematical Olympiad (IMO) proved their dominance anew as they comprised the top 3 winners in this year’s recent Philippine Mathematical Olympiad (PMO). Farrell Eldrian Wu of MGC New Life Christian Academy, who finished as first runner up in the previous PMO, topped the national tilt this time. He was also bronze medalist in the 56th IMO held in Chiang Mai, Thailand in July last year. With the victory, Wu took home P20,000 cash prize, trophy, and gifts from Sharp Calculators. Joining Wu in the top 3 are national team co-members, Kyle Patrick Dulay of Philippine Science High School-Main Campus and Albert John Patupat of Holy Rosary College, who placed first and second runner-ups, respectively. Dulay received P15,000 cash prize, while Patupat got P10,000 along with trophies and gifts from Sharp Calculators. Dulay won an honorable mention in last year’s IMO, while Patupat, then a rookie in the competition, brought home a bronze medal. The winners were awarded in a ceremony held at the University of Santo Tomas recently. Director Dr. Josette Biyo of the Department of Science and Technology-Science Education Institute (DOST-SEI) congratulated the winners and finalists, and expressed belief that the country is “getting closer and closer toward

winning [its] first gold at the IMO.” “I’m sure that our team in the IMO always has a fighting chance that would increase each year that we join the IMO. And this PMO is one of our bases in having that feeling,” Biyo said as she lauded the Mathematical Society of the Philippines (MSP) for another successful PMO. “Our time to win gold at the IMO is coming very soon,” she added. The winners, together with the 17 other PMO finalists, will undergo tra ining f rom Apr i l to May to determine who will comprise the national team set to compete in the 57th IMO in Hong Kong from July 6 to 16. This year’s IMO Philippines’s team leader, Louie John Vallejo, of MSP will spearhead the summer training along with professors from the University of the Philippines and Ateneo de Manila University. Biyo said the DOSTSEI will continue to support the PMO and the country’s participation in IMO and other international competitions as these platforms “clearly bring the best of our best students” who are eyed to become science professionals in the future. “More than anything, we encourage you all to not just accept the challenge of pursuing excellence through competitions, but to build your character founded on honesty, integrity and nationalism. Be the leaders that we all desire to have,” Biyo said.

SC Bt ‘talong’ ruling’s economic implications B R T. D

Special to the BM

N the past few weeks, a lot has been written about the recent ruling on the Supreme Court (SC) banning Bacillus thuringiensis (Bt) talong (eggplant), a genetically modified product like Bt corn. On December 8, 2015, the SC stopped field trials for the genetically modified (GM) eggplant. It also declared null and void the Department of Agriculture’s Administrative Order on GM field testing. But the SC went overboard by ruling that any field testing, contained use, propagation and importation of genetically modified organisms (GMOs) is also stopped pending the promulgation of a new administrative order. Opinion makers and scientists, such as National Academy of Science and Technology Chairman Dr. Emil Javier and Member Dr. Eufemio Rasco Jr., deemed the SC decision flawed.

Some far mers’ g roups had urged the SC to junk the writ of kalikasan against Bt talong, claiming that the crop does not need deadly pesticides as it is designed to kill pests. W hat is the potential impact of the SC decision on Philippine society if it is not reversed? I will discuss this viewpoint empirically as an economist and agribusiness observer. There are several levels of analytics. First is the impact on food security. Second is the impact on farm income and rural poverty. Third, the impact on food processing industries. Finally, on jobs. Bt talong is a small component compared to the spillover effects on GM products: Bt corn, Bt soybean, meat products, as well as processed foods using meat, corn and soybean oil.

Bt corn

IN 2015, some 95 percent of yellow corn produced by small farmers

was Bt. This came from nearly 1 million hectares producing 5 million tons, some 70 percent of all corn production. We are talking here of over 500,000 farmers and nearly P50 billion in farm output, data from the Bureau of Agriculture Statistics (BAS) say. The fertilizer and seed component of this output will be over P10 billion a year. Some sectors would say that they can be replaced by open-pollinated corn, but the farm income would be much lower, and so would be the production. The impact on the hogs, chicken broiler and layer industries would be tremendous. Imports of non-Bt corn and soybean are not sound options as supply is very limited and at very high cost. The animals will not grow to desired weight due to limited and costly nutrition. Meat prices must increase for raisers to continue producing underweight animals. Consumers can try organic pigs

and chickens at double the price. Supply wou ld be sc a re a s most of t he cor n wou ld come f rom Bt sou rces a broad t he United St ates a nd A rgent ina. It wou ld dramatica l ly increase t he cost of meat a nd eg gs, h it t he household budget, and sadd le eat ing- out businesses like Jol libee, K FC, McDona ld ’s a nd car inder ias. Imports of Bt soybean meal will cease. Bt soybean meal is the main source of protein in animal feeds, while yellow corn is a source of energy. In 2015 the country imported some 2.35 million tons mostly from the US. Last year the country produced some 2.12 million tons of pigs, 1.66 million tons of chicken, and 445,000 tons of eggs. The total value of the farm output was almost P400 billion, BAS data say. Another 210,000 tons each of pork and chicken meat were imported, mostly fed with GM corn and soybean. They comprise some 13 per-

cent and 19 percent of domestic consumption, US Department of Agriculture data show.

Food processing

THE meat processing and the fast-food industries use a lot of imported meat. Since most are fed with Bt corn and Bt soybean from the US, what now? Meat companies will have to pay higher for raw materials costs. Meat spending comprises 27 percent of family food budget in 2012 valued at P484 billion. Eatingout business was P311 billion, 17.5 percent of family food spending. How will the increased meat prices impact on inflation? Meat and eating-out spending accounts for almost 20 percent of total family spending, Family Income and Expenditure Survey, 2012 show. The potential job losses of the value chain from production of corn to feeds to meat processing could be significant. And what could happen to national food security?

In this debate, we must trust in evidence-based scientific analysis. Judges must be circumspect in making judgment on highly scientific matters. Or else, common medicines like aspirin, mefenamic acid (pain relievers) and anti-bulate drugs would be banned as they are not absolutely safe, although relatively safe. And what about farm chemicals that protect plants, such as rice and vegetables? They are not absolutely safe, too. Will they be banned, too, in the future? Rural poverty is already very high at near 40 percent of population. Most of them farmers and small fishers. How would the SC ruling impact them? Quo vadis? Will the interests of minority win over those of the many?

Dr. Rolando T. Dy is the executive director of the Center for Food and Agribusiness and professor at the School of Management at the University of Asia and the Pacific.

Green Monday BusinessMirror

www.businessmirror.com.ph • Editor: Lyn Resurreccion

Monday, February 1, 2016 A13

A breath of hope for clean, healthy air

CARS and buses crowd Edsa. The number of cars in Metro Manila still keeps on rising as the Philippines copes up with huge traffic and air pollution. STEPHANIE TUMAMPOS

B J L. M

INDA DE GUZMAN (not her real name) goes to work at the Bonifacio Global City in Taguig City in Metro Manila every day. She is fortunate, because as a call-center agent, her shift changes from time to time. “It is okay because, sometimes, my team works the night shift. There is no traffic. Morning shift is bad news for us because we have to deal with the daily traffic problem in Metro Manila,” she said in a recent interview with the BusinessMirror as they happened to ride the same bus on their way to Manila. But Linda says traffic is not the only problem for people like her, who has asthma. Once, she said, she had to go straight to the company clinic when she had an attack. “The pollution is heavy. I can bear sitting in a bus or jeep for hours because of the traffic. But the smoke is just too much for me,” she said. Riding the Metro Rail Transit (MRT) is also not an option because the long queue alone takes longer than to wait for a bus and squeeze her way inside. Like Linda, 12 million Filipinos who live or work in Metro Manila endure the traffic and the polluted air that bring serious health risks. On June 23, 1999, then-President Joseph Estrada signed into law Republic Act 8749, or the Philippine Clean Air Act of 1999, that provides for a comprehensive air-pollution control policy in the Philippines. The law primarily recognizes citizens’ right to breathe clean air.

Fatal traffic jam, air pollution

ACCORDING to the World Health Organization (WHO), air pollution is a major environmental risk to health. By reducing airpollution levels, countries can reduce the burden of disease from stroke, heart disease, lung cancer, and both chronic and acute respiratory diseases, including asthma. The WHO said ambient or outdoor air pollution in both cities and rural areas was estimated to cause 3.7 million premature deaths worldwide in 2012. Some 88 percent of those premature deaths occurred in low- and middle-income countries, with the

12M Live or work in Metro Manila

greatest number from the Western Pacific and Southeast Asia regions. In the Philippines air pollution can be fatal, especially because of the monstrous traffic, health experts and clean-air advocates say. The Coalition of Clean Air Advocates of the Philippines (CCAAP) last year issued a strong statement against polluters and concerned government agencies, as it warns the public about the fatal effect of traffic in Metro Manila because of air pollution. CCAAP President Leo O. Olarte, a medical doctor, said air pollution could be deadly because of the millions of motor vehicles plying daily in the streets of Metro Manila. Emitting deadly smoke, at the same time, can choke lungs and lead to respiratory and cardiovascular diseases, or cause instant death because of hypertension, heart attack and stroke. “Motor-vehicle traffic aggravates all the risk factors in all these dangerous diseases,” he said. Exposure to smoke emitted by motor vehicles while caught in the middle of traffic in Metro Manila, at home or workplace, could trigger life-threatening episodes of heart attack and stroke, and could lead to sudden death even when a patient is inside an air-conditioned motor vehicle, Olarte warned.

Poor law enforcement, graft and corruption

ALSO a lawyer, Olarte led the group’s filing of graft and corruption cases at the Ombudsman against several officials of the Land Transporta-

tion Office (LTO) and Department of Trade and Industry last year for violation and nonimplementation of certain provisions of the Philippine Clean Air Act of 1999. The group has been blaming the poor implementation of the law on mandating emission tests on all motor vehicles. Section 22, Paragraph 5 of the Philippine Clean Air Act states that, “No motorvehicle registration shall be issued unless such motor vehicle passes the emission-testing requirement promulgated in accordance with this Act. Such testing shall be conducted by the DOTC [Department of Transporation and Communacations] or its authorized inspection centers within 60 days prior to date of registration.” The group blamed the corrupt practices at the LTO, as well as at the government-accredited private motor-vehicle emission-testing centers for allowing “no-show” and “nonappearance” of motor vehicles in exchange for extra fees. Mike Aragon, CCA AP SVP for Communications and Public Relations, was alarmed that air quality in Metro Manila remains poor. “ I m a g i ne, you c a n get a n emission test [w it h passing ] res u lt s w it hout show i n g up [by paying] P500? ” he lamented during an interview with the BusinessMirror on Wednesday. Law enforcers also fail to strictly enforce the antismoke belching law, which aggravates air pollution in Metro Manila, Aragon said. He added that corrupt practices must stop to reduce the level of air pollution from motor vehicle in Metro Manila.

tors, and other stakeholders to discuss strategies to improve air quality, particularly in Metro Manila. The PUJ organizations include the Liga ng Transportasyon at Operators sa Pilipinas, Alliance of Concerned Transport Organizations, Federation of Jeepney Operators and Drivers Association of the Philippines and Pangkalahatang Sanggunian Manila and Suburbs Drivers Association Nationwide. Cuna said in a news release issued by DENR and CCAP that emission tests in garages would be used to assess the current emission compliance of PUJs in Metro Manila. The DENR will also provide technical assistance to the Land Transportation Franchising and Regulatory Board (LTFRB) and the LTO on the possible establishment of their antismoke belching operations; and help enhance their capacity to monitor and evaluate the progress of the testing; and make the test results available to the public. According to Aragon, the emission tests of PUJs will form part and serve as baseline data from which future tests will be compared to determine whether air quality is going to the right direction. He said the civil society, including academe, church and youth, will be tapped to sustain the NCR Airshed Consultative Meeting to push motorists and concerned government agencies to do their part. “Hopefully, with the NCR Airshed Consultative Meetings, we can bring down air pollution in Metro Manila by June 30,” Aragon said. “If concerned government agencies will cooperate and do their part,” he emphasized.

Support for cleaner air

Air quality improving

ON January 22, as part of the campaign for cleaner air, CCAAP, in partnership with the Department of Environment and Natural Resources (DENR), launched the first of a series of consultative meetings. The National Capital Region Airshed Consultative Meeting paved the way for the signing of a memorandum of agreement between concerned government agencies and various passengerutility jeepney (PUJ) organizations for the conduct of free emission tests in the garage or designated passenger jeepney terminals. Director Juan Miguel Cuna of the DENR-Environment Management Bureau led the meeting, which brought together the transport sector, especially PUJ opera-

AIR quality in Metro Manila, the country’s capital region, is improving and it will continue to improve this year, Environment Secretary Ramon J.P. Paje promised. “The good news is that we can expect better air quality in Metro Manila this year with the policy prescribing the use of Euro 4 fuel for all motor vehicles,” Paje said at a news conference in early this month. He attributed the improvement in air quality in Metro Manila to the various initiatives of the government that target air pollution from mobile sources, particularly motor-vehicle emission, which contributes 80 percent to the air-pollution problem. The DENR said air-pollution in Metro Manila have gone down by

28 percent as of December 2015 from the 2010 level. Citing reports gathered from the 17 air-quality monitoring stations strategically located in various parts of Metro Manila during the period, total suspended particulates (TSP) level also went down to just 101 unit gram per normal cubic meter (µg/Ncm) during the July-to-December 2015 period compared to 106 µg/Ncm recorded during the same period in 2014. This is 11 µg/Ncm shy of achieving the 90 µg/Ncm standard safe level for ambient air quality.

Cleaner fuel

THE policy mandating the use of Euro 4 fuel, Paje said, will greatly help improve air quality in Metro Manila, as pump gasoline and diesel will be selling cleaner fuel from now on, in lieu of the previous Euro 2 fuel standard. Euro 4 has 50 parts per million (ppm) sulfur, 1-percent benzene and a 35-percent limit on aromatics. Euro 2 has 500 ppm sulfur, 5-percent benzene and no limit on aromatics. “With all motor vehicles using Euro 4 fuel and diesel, the air pollution from motor vehicle will go down,” Paje said. The environment chief said the government is also working to enforce the law against smoke belching and has been closely coordinating with concerned government agencies, including the DOTC, particularly the LTO and various stakeholders, to improve air quality. This includes strict implementation of the smoke-emission tests for all motor vehicles before car registration is renewed. Recognizing the monstrous traffic in Metro Manila as part of the problem, Paje said the DENR is also coordinating with the Metropolitan Manila Development Authority (MMDA) to ease traffic congestion, particularly along Epifanio de los Santos Avenue (Edsa). The DENR chief is confident of attaining the safe level for ambient air quality by the end of the year by addressing the traffic problem.

Easier said than done

ADDRESSING Metro Manila’s traffic woes, however, is easier said than done. With an estimated popu lation of 12 million, the NCR plays host to the most number of motor vehicles, which come from various parts of Luzon ever y day. The huge volume of motor vehicles converging in Metro Manila dur-

ing rush hours create a monstrous traffic ever y day. Critics have been urging the government to address Metro Manila’s traffic problem and improve mass public transportation systems, such as the MRT and Light Rail Transit (LRT). According to the MMDA, in Edsa alone, the average volume of motor vehicles during peak hours exceed its capacity. Lawyer Crisanto Saruca, director of the MMDA Traffic Discipline Office, said during peak hours, 1,600 vehicles per lane per direction occupy Edsa. The capacity of Edsa is 1,200 vehicles per lane per direction, he said. Traffic along Edsa, the main artery in Metro Manila, spills over in other major thoroughfares. Around 80 percent of the motor vehicles are private vehicles, he said. “The volume of vehicles is the biggest problem. Of course, we also have problems with infrastructure and mass transportation. But the volume of vehicles exceeding the capacity of Edsa causes the monstrous traffic,” Saruca said.

Traffic discipline ‘a must’

THE perennial traffic woes can be addressed by instilling traffic discipline, Saruca said. “The way motorists drive, the way they park, the way they stop to load or unload passengers and the way they violate traffic rules all point to one thing: they lack discipline,” he said. To help reduce the volume of motor vehicles, particularly along Edsa, the MMDA continues to implement the Unified Vehicular Volume Reduction Program. Theoretically, the scheme, also known as “number coding,” reduces the volume of motor vehicles, during peak hours by 20 percent. The campaign to apprehend violators of the number-coding scheme, he said, is no letup, as well as against private motorists using the exclusive bus lane along Edsa. The MMDA is also encouraging the public to use mass public-transport system, such as LRT and MRT or buses, to help ease traffic congestion on Edsa and other major thoroughfares. “Imagine if 10 motorists decide to take the bus, then we have 10 cars less on Edsa. This means 10 cars less causing pollution on Edsa,” he said. With the intensive campaign for traffic discipline, Saruca said, there is always a breath of hope in easing traffic congestion in Metro Manila, and hopefully, so will cleaner and healthier air.

A14 Monday, February 1, 2016 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

The Philippine economic reality

N his play Henry VI, Part 2, William Shakespeare’s character “Dick the Butcher” utters the line: “Let’s kill all the lawyers.” The legal profession interprets this to mean that it shows Shakespeare’s high regard for lawyers as the guardians of the rule of law. “Dick” was a follower of the rebel Jack Cade, who wanted to overthrow the monarchy. But Shakespeare’s 16th century audience knew exactly what was meant. Lawyers were most often the agents of the Crown whose job was to use the legal system to further the financial needs of the King rather than to insure justice. The ordinary citizens suffered at the hands of the lawyers. Today, Shakespeare might have said, “Let’s kill all the economists.” In the last years we have seen great economic destruction, as governments have taken the advice of economists to solve the global economic problems that the advice of the economists created in the first place. To understand how out of touch and, therefore, potentially dangerous economists’ advice can be, just listen to them talk about the Philippines. There must be an official rule that when speaking about the Philippine economy, an expert must say, “The Philippine economy must diversify more” and “The Philippines cannot continue to rely on remittances.” Then everyone nods their head in agreement. But no one ever thinks to question those opinions or if the statements are factual. Twenty-five years ago you could accurately estimate Philippine economic growth by taking the growth in the agricultural sector and multiplying it by 1.5. The reason this was so accurate is because the country depended on agri production. In 1994 agri contributed 22 percent of the gross domestic product (GDP). In 2014 the contribution was 11.3 percent. Our GDP composition is basically agriculture at 11 percent, industry at 32 percent, and services at 57 percent. Thailand’s by comparison is 12 percent, 44 percent and 45 percent, respectively. Indonesia comes in at 14 percent, 47 percent and 39 percent, respectively. While it might be better to have more contribution by “industry”, the Philippine numbers are not that much different from similar regional economies. Further, and this is important, within and part of the broad categories, 29 percent of the GDP comes from the export of goods and services, including our outsourcing industry. But where do overseas remittances figure into the picture? The Philippines’s “net income from abroad” in 2014 was $60 billion, which includes remittances, foreign aid, and income and interest payments on foreign investments held by the government and the private sector. This does not include earnings from the export of goods or services like outsourcing. Remittances were $28 billion. Overseas Philippine investments were actually higher than remittances. Of course, remittances are an important part of the economy, as are goods and service exports, agricultural, overseas investments and every other GDP contributor. But to say that the Philippine economy is not diverse or dependent on remittances is not supported by the facts. Maybe this is something the economists should mention. The contribution of mining to GDP is twice to three times as much in Indonesia, Malaysia and Vietnam.

PCSO distributes Lotto shares in Dumaguete Atty. Jose Ferdinand M. Rojas II

RISING SUN

COUPLE of weeks ago I and other officials and employees of the Philippine Charity Sweepstakes Office traveled to Negros Occidental and Negros Oriental to distribute ambulances and Lotto shares to those provinces. Last week I discussed how the turnover ceremony of 17 ambulances to those two provinces took place at the Bacolod Provincial Capitol. Five ambulances were given to Negros Oriental: Tayasan, Ayungon, Santa Catalina, city of Tanjay, and Inapoy Community Primary Hospital. From Bacolod we went to Dumaguete City, Negros Oriental, to inspect the PCSO branch there at the Gov. Perdices Sports Complex. Headed by Belena Alvarez, the branch is a mini-version of the head office, and, like all branches, can deliver all the services of the agency. While there, we turned over some P2 million in Lotto shares to the following areas: Valencia, P139,000; Dauin, P150,000; Sibulan, P267,000; Ay ungon, P28,000; San Jose, P24,000; city of Dumaguete, P1.29 million; city of Bais, P89,000;

city of Tanjay, P162,000. Lotto shares are corresponding percentages from the gross sales of PCSO outlets located in a city or municipality. We also met Negros Oriental Gov. Roel R. Degamo, who said that PCSO is one of their valued partners because health programs are prioritized in his province. In line with their efforts, Degamo pointed to a drop in malnutrition rates in the province. From 11.31 percent in 2009, m a l nut r it ion r ate s de c l i ne d over the years to 6.8 percent last year, thanks to better nut r it ion educ at ion prog r a m s, the Conditional Cash-Transfer Program, school-based feeding programs and vegetable nurseries in schools, among other collectively-implemented programs of national agencies and local government units. He also mentioned the advan-

This week we went to Romblon to distribute ambulances there and inspect a PCSO property that might be suitable for establishing a branch office. The PCSO continues, as ever, to raise funds for charity and deliver services when and where it is needed. This is our agency’s mandate and mission, for the past 81 years and beyond.

tages of bottom-up budgeting in helping to reduce poverty rates in the province. Now this brings us to an interesting topic: what is bottom-up budgeting (BUB), and how does it benefit our kababayan at the grassroots level? According to the Department of Budget and Management, BUB is the government’s participator y budgeting program that provides funding of P20 million “for a priority poverty-reduction program proposed by a city or municipality.” Since 2013 around 1,590 local government units have participated in the program while “4 2 , 2 21 p ro j e c t s h av e b e e n funded, of which 13,712 have been completed” as of Decem-

30-year Bulacan Bulk Water Supply Project: 3.4 million Bulakeños win By Alberto Agra

PPP LEAD Continued from A1

REE and open competition led to lowest price. Three top Philip-

pine corporations submitted bids and participated in the competitive selection process. The consortium of San Miguel Corp. and Korea Water Resources Corp. won over two other reputable firms—Manila Water Co. Inc., a concessionaire of hte MWSS, and Prime Water Infrastructure Corp., an active PPP proponent with water districts. The winning bid of P8.50 per cubic meter as initial bulk-water charge bested the other

offers. Judging from the bids submitted, all three wanted to get the project.

Game changer as it sets the comparator. This project sets the new bar

for bulk-water projects. The total project cost-bulk water charge ratio established by the winning proponent can now serve as comparator for future projects. This is truly a game changer. Opens door for more PPPs. The award of this project paves the way for other PPPs. The Bulacan water districts can enter into distribution joint ventures. Septage and sewerage PPPs can be pursued by local

The award of this project paves the way for other PPPs. The Bulacan water districts can enter into distribution joint ventures. Septage and sewerage PPPs can be pursued by local governments. The MWSS can undertake other bulkwater projects in other provinces. Water, indeed, is the next big thing in PPPs.

governments. The MWSS can undertake other bulk-water projects in other provinces. Water, indeed, is the next big thing in PPPs. People-driven “future-proofing.” The Project will face what every PPP project faces—successor risk. The

ber 1, 2015. For 2016, P24.7 billion from the national budget has been set aside for 14,325 BUB projects. Funds are being directly released to the municipalities. The BUB program will be “expanded next year to cover 42,036 barangays nationwide,” at a subsidy of P1 million for each barangay. This funding will help barangays formulate better povertyreduction action plans and monitor “the delivery of basic services to communities,” with an initial 12,000 barangays to receive this type of funding from the national government in 2017. BUB is one of the many socialwelfare programs under the daang matuwid framework of the Aquino administration that seeks to enable the benefits of the country and region’s economic growth to transform the lives of Filipinos in an inclusive manner. This week we journey to Romblon to distribute ambulances there and inspect a PCSO property that might be suitable for establishing a branch office. The PCSO continues, as ever, to raise funds for charity and deliver services when and where it is needed. This is our agency’s mandate and mission, for the past 81 years and beyond. ■ ■ ■ Atty. Rojas is vice chairman and general manager of the Philippine Charity Sweepstakes Office.

challenge now is how to “futureproof” this “legacy” project beyond the term of the current MWSS leadership. One way of addressing successor risk is securing the support of the people. The real “P” in a PPP— the public—must be engaged and informed. The 3.4 million Bulakeños must realize they are the real winners of this PPP. To ensure success and continuity, they must constructively engage the MWSS and the proponent. They can form a “Project Watch” to ensure compliance with standards and deliverables. It is hoped that the people themselves will champion and defend the project. This is not a run-of-the-mill PPP. The MWSS went against the current. This is truly a sea change of a PPP. Kudos. We need more of this.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Taxing the Queen of the Universe

‘I am Acct’ Joel L. Tan-Torres

DEBIT CREDIT

Atty. Lorna Patajo-Kapunan

LEGALLY SPEAKING

Conclusion

AST week I discussed in this column the interesting, if not puzzling, situation why accountants prefer to profess their professional attainment by putting their title CPA at the end of their names and not in front of their names. We are unlike their colleagues from the other professions who proudly declare themselves as Dr. Reyes, Atty. Suarez, Engr. Pineda, Arch. Aquino, all preferring to introduce themselves by inserting their professional titles upfront before their names.

PIA WURTZBACH, MISS UNIVERSE 2016

N January 23 the Queen of the Universe, Pia Alonzo Wurtzbach, returned to the Philippines after winning the prestigious Miss Universe 2015 crown.

However, with Pia’s return came with questions regarding her tax liability. Interestingly, Congress saw it fit to exempt her from income tax as a way of honoring the beauty queen. But legally speaking, is Pia subject to tax for winning Miss Universe crown? Section 23(A) of the National Internal Revenue Code, as amended, provides that a citizen of the Philippines residing therein is taxable on all income derived from sources within and without the Philippines. By way of exclusion, the same Code in Section 32(B)(7)(c) provides that prizes and awards are excluded from the computation of an individual’s gross income if the prizes and awards were “made primarily in recognition of religious, charitable, scientific, educational, artistic, literary, or civic achievement but only if: [i] the recipient was selected without any action on his part to enter the contest or proceeding; and [ii] the recipient is not required to render substantial future services as a condition to receiving the prize or award.” Let us analyze the quoted provisions. First, resident citizens are taxable on all income from within and without the Philippines. Pia is a resident Filipino citizen. Thus, even if she was not based here in the Philippines during her reign, her compensation package as Miss Universe will constitute taxable income on her part. Her crown, which is valued at $300,000, should be excluded from her gross income since said crown is meant to be returned once her reign ends. Second, to be excluded, the

prize or award must be made in recognition of religious, charitable, scientific, educational, artistic, literary, or civic achievement. Winning the Miss Universe crown is not a religious, scientific, or literary achievement. Tax authorities and legal luminaries agreed that an award that would qualif y for income-ta x exclusion under this category would pertain to the likes of the Nobel Peace Prize or the Ramon Magsaysay Award. Third, the recipient was selected without any action on his part to enter the contest or proceeding. Pia won the much-coveted Miss Universe crown after three years of joining the Binibing Pilipinas contest. And fourth, the recipient is not required to render substantial future services as a condition to receiving the prize or award. Pia is tasked to serve as the Miss Universe for a year, championing and promoting the cause of the Miss Universe Organization. Based on the foregoing, it seems clear that Pia’s winnings in the recently concluded Miss Universe 2015 are indeed subject to Philippine income tax. I love Pia, and I am one with the Filipino people in honoring what she has achieved for our country. However, legally speaking, the Queen has to pay income tax. Of course, Congress exempting her from payment of income tax, which, if I may say, I fully support, is another topic. For comments, you may e-mail me at lpkapunan@kapunanlaw.com.

So, I ask this question to my fellow accountants: Is this not the time that we accountants start using an appropriate professional title such as Acct.? A title that we can proudly place in front of our name when we introduce ourselves as accountants to our associates. Our very own designated title of Acct. that we would use in our written correspondences. Thus, for the first time in our accountancy history, the opportunity to proclaim: “I am Acct. Joel

HEN you say that the golden days of growth are over, expect to get lots of attention, especially if you’re a prestigious economist. Robert Gordon, a professor at Northwestern University, has been going around for several years making exactly this case. He now has a book, The Rise and Fall of American Growth, summarizing his argument in magisterial detail. Gordon’s main thesis is that the low-hanging fruit of technology has, essentially, been picked. He argues that a small handful of Great Inventions—electricity, the internal combustion engine and a few others—propelled growth to dizzying speeds from about 1870 through 1970. But there are only so many big important ideas like this to be discovered. This may be the case. With technology, you never really know what’s out there to discover until you find it. Perhaps we will soon invent selfimproving artificial intelligences that will rapidly uncover deep truths

and invent magical technologies of which we can now only dream. Or maybe the technology party really is drawing to a close. But, regardless of its validity, I think that Gordon’s idea has a little more popular appeal than it ought to, for two reasons. The first reason we are too eager to believe Gordon is that when we consider the impact of technology, we think in terms of how much it changes our lives. But utility—the satisfaction we derive from goods and services—isn’t the same thing as growth. The inventions of the 19th and 20th centuries altered the very shape

26, 2015. The AVP, titled “I am Accountant,” showcased the various contributions and efforts of accountants in the four sectors of our accountancy community, namely: the commerce and industry; public practice; government; and academe sectors. In the AVP, several CPAs presented their own narratives of what they are doing in their particular spheres of inf luence and all of them proudly introducing themselves as “Accountant ______.” As an accountant, it was very inspiring to see and hear our fellow accountants’ self proclamations of “I am accountant Joel,” “I am accountant Marie,” and “I am accountant_____.” I have also to acknowledge that the production of this AVP was led by Acct. Edwin de los Santos, CPA, who is a faculty member of Liceo de Cagayan University in Cagayan de Oro City. This AVP is available for downloading from the various social-networking sites (YouTube, Professional Regulatory Board of Accountancy Facebook, etc.) and the Board of Accountancy web site. So what’s next for this “I am Accountant” initiative? T he Board of Accountancy is preparing an awareness campaign for this undertaking of making the

public aware of the importance and valuable role of the accountants in the economy and society. Moreover, the campaign is directed to enhance the image and reputation of the accountant, as well as to promote the pride and self-esteem in being accountants. Finally, this initiative will involve perpetuating the use of the title “Accountant” or “Acct.” as a nationwide practice. There will be a grand launch of this initiative during the Accountancy Week Celebration in July. For the meantime, please wait for further announcements. This is Acct. Joel signing off. Chairman Joel L. Tan-Torres is the chairman of the Professional Regulatory Board of Accountancy. He is a Certified Public Accountant who placed No. 1 in the May 1979 CPA Board Examinations. He is concurrently a tax partner of Reyes Tacandong & Co., CPAs. He was the former commissioner of the Bureau of Internal Revenue. This column accepts contributions from accountants, especially articles that are of interest to the accountancy profession, in particular, and to the business community, in general. These can be e-mailed to boa. secretariat.@gmail.com.

Revolt against the posh boys

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ist, didn’t give up his core belief in state control even after he found a more effective way of rousing disaffected Italian masses. From the late 19th century onward, political movements and parties on the right have combined xenophobic patriotism and economic nationalism. In all cases, they’ve tried to exploit widespread distress caused by uneven economic growth and political dysfunction. Their competitors for much of this period were internationalist socialists mobilizing for working-class revolution, or cosmopolitan liberals hoping for a gradual extension of economic prosperity and political freedoms. Today’s far-right populists are similarly buoyed by a global economic slowdown. It’s now clear that the bonanza of globalization has been divided grossly unequally. Whatever the reasons for this—technological innovation or financial liberalization—a small number of networked people have grown disproportionately rich in many democracies.

Consequently, anger, distrust and hostility reign in the broader public sphere against the Davos Men and their apparent accomplices in politics and media. The Edelman Trust Barometer, which annually appraises reputations of businesses, government and other institutions, reveals a widening gap between elite and mass perceptions in the US, the UK, France, India and Australia. Immigration, while helping business, has aggravated financial and cultural insecurities among ordinary people: The foreigner, whether high-skilled migrant, refugee or asylum-seeker, has come to embody the opaque forces that threaten jobs and livelihoods. At the same time, far-right populists no longer face strong challengers on the liberal-left. Socialists promising redistribution if not revolution have abruptly emerged in Britain, as well as Greece and Spain. But his forthright internationalist commitments to immigration and refugees make Jeremy Corbyn unelectable. And liberals, such as Hilary Clinton in America or New Labour in Britain, appear too complicit with globalized elites. The old right and left are desperately trying to improvise and catch up with the populists. David Cameron’s recent remarks about Muslim women and refugees indicate that Britain’s posh boys, forced to

appease Google and other multinational corporations, may be trying out Richard Nixon’s dog whistles to the silent majority—stoking white male resentment of liberal elitists and ostensibly assertive minorities. In France, the Socialist government has borrowed from Le Pen’s playbook with its seemingly endless state of emergency and its absurd plan to strip convicted French-born terrorists of their citizenship. Perhaps it’s time now to stop mapping political differences along the left-right dichotomy. The great political, intellectual and emotional chasm of our world runs between transnational elites with access to diverse forms of social, economic and cultural power, and masses who feel left out from the global party and who express their fury and resentment through socia l media and xenophobic movements. We have entered a perilous new era in politics, where a whirlwind of raw emotions is blowing away all the verities of the past. The global elites, whose competence and moral legitimacy are questioned like never before, need, as Martin Wolf wrote in the Financial Times last week, “to work out intelligent responses.” Until then, progressively more and more intemperate outbursts against posh boys will define political life.

that take us from the brink of starvation to prosperity and security will seem more important than what comes after, even if both add the same to GDP. That can create the illusion of stagnation. The second reason I think we’re too willing to believe Gordon is that technology isn’t the only thing that makes society better. The quality of government matters too. Some governments rob from their citizens. Others try to control the economy. But the best ones run efficient public services, provide public goods like infrastructure and research funding and minimize the harmful effects of regulation. The difference between a good government and a bad one can be enormous—just look at South Korea versus North Korea. In economics models, the quality of government is included in measurements of productivity, but it’s not the same thing as invention and scientific discovery. There’s a good argument that

quality of government in North America, Europe and Japan improved dramatically in the 19th and early 20th centuries. Government became steadily more participatory and less predatory. Bureaucracies became more professional. Spending on infrastructure dramatically increased, funded by taxes. Public services such as urban sanitation— which Gordon counts among the Great Inventions, but which is dependent on government efficiency— curbed disease and improved health dramatically. Health and safety regulations helped, as well. Public education greatly increased the skills of the work force. Libertarians often portray the state as a parasite, but there is a good argument that big government—and, more important, good government—was responsible for a significant amount of the growth in developed nations between 1870 and 1970. That kind of improvement was

probably a one-off. Unlike science and technology, government probably has an upper limit of effectiveness. You can only transition from being North Korea to South Korea once. That means that some of the productivity slowdown we have observed may be due to our success in improving how we govern ourselves. So when we evaluate Gordon’s thesis of technological slowdown— which might not prove correct—we should be careful of making these two errors. We should remember that growth isn’t the same thing as improvement in life satisfaction; the former is actually a lot easier than the latter. And we should consider the possibility that government quality, as much as technology, is what has stopped improving. Both of these caveats should make us a little less pessimistic. Good government and the end of brutal manual labor and starvation are good things to have under our belt.

OOGLE, according to Rupert Murdoch, has overawed the “posh boys in Downing Street” and elsewhere. The News Corp. chairman was responding last week to news that the US-based Internet giant would pay Britain the measly sum of $185 million in underpaid taxes. Murdoch continued, “Google has cleverly planted dozens of their people in White House, Downing Street, other governments. Most brilliant new lobbying effort yet.” While Murdoch sounded like Noam Chomsky, Donald Trump’s recent screeds against hedge-fund managers have seemed to invoke his inner Bernie Sanders. Multibillionaires are just the latest individuals to add their voices to a worldwide chorus condemning hyperconnected posh boys. They confirm that the hoary distinction between the left and the right needs to be updated. Marine Le Pen, ostensibly on the far right, attacks France’s Socialist government for pampering “globalized elites at the expense of the people.” She vows to replace the “neo-liberal” French establishment with an aggressively interventionist state. Nationalization of banks is on the agenda of far-right governments in Hungary and Poland, along with more predictable anti-Muslim and anti-immigrant policies. The blending of left- and rightwing programs is hardly novel. The Nazis proudly called themselves National Socialists. And Mussolini, who started out as a diehard social-

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Tan-Torres, and I am proud to use my very own professional title.” We had a soft launch of the “I am Accountant (Acct.)” initiative in November 2015 during the Annual National Convention where more than 3,000 CPAs convened in Puerto Princesa, Palawan. During my talk in the convention in the Puerto Princesa Coliseum, I showed an audio-visual presentation (AVP) to the thousands of accountants who were in the Puerto Princesa Coliseum last November

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of human life in rich countries. Material scarcity was effectively vanquished. Starvation was eliminated, and almost all people now have shelter. Grueling manual labor, which defined human life for millennia, is now rare. This has all been possible thanks to the Great Inventions Gordon names. And these improvements can’t be repeated—food, shelter and security are basic human needs, and once you fill them, other life improvements will probably seem incremental by comparison. But growth isn’t the same thing as life satisfaction. Economists generally believe that humans have a decreasing marginal utility of wealth, meaning that each successive increase in material abundance matters less than the last. Buying your first car is a lot more life-changing than buying your 10th car, even though both add the same amount to GDP. The same principle applies to technological progress —inventions

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House to fast-track approval of several priority measures T

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HE leadership of the House of Representatives is expected to expedite the approval of several priority measures before Congress adjourns on February 6 for the electoral campaign. Speaker Feliciano Belmonte Jr. said bills strengthening the public-private partnership (PPP) scheme and the removal of investment restrictions in the Foreign Investment Negative List (FINL) are expected to be approved during the three remaining sessions of the House. The third and last regular session of the 16th Congress is expected to be cut short as the House of Representatives and the Senate will take a break from February 6 to May 22 for the 2016 national and local elections. “Our self-imposed task, all of which are subject to time constraints, but we would maximize our remaining work days to deal with important business,” Belmonte said.

₧64B

Budget of the Pantawid Pamilyang Pilipino Program for 2016

Belmonte said the bill institutionalizing and strengthening the PPP seeks to recognize the “indispensable role of the private sector as the main engine for national growth and development and create an enabling environment for PPP.”

The measure was principally authored by Belmonte, Majority Leader Neptali M. Gonzales II, chairman of the House Committee on Ways and Means and Liberal Party (LP) Rep. Romero Quimbo of Marikina, and LP Rep. Ronald Cosalan of Benguet. The bill also seeks to provide incentives to mobilize private resources for the purpose of financing, design, construction, operation and maintenance of infrastructure projects and services normally financed and undertaken by the government. The PPP refers to a contractual arrangement between the implementing agency and the project proponent for the financing, design, construction, operation and maintenance or any combination thereof, of an infrastructure facility, in which the project proponent bears significant risk, management responsibility, or both. Under the proposed measure, PPP projects in excess of P1 billion will be entitled to incentives as provided for under the Omnibus Investment Code, upon prior endorsement of the PPP Center and registration by the project proponent with the Board of Investments. Lawmakers are also targeting to approve on final reading a measure allowing foreigners to own 100 percent of adjustment companies, lend-

NORTHEAST MONSOON AFFECTING EXTREME NORTHERN LUZON EASTERLIES AFFECTING EASTERN SECTION OF THE COUNTRY (JANUARY 31, 5:00 AM)

ing companies, financing companies and investment houses. The bill was authored by LP Rep. Anthony G. del Rosario of Davao del Norte. The measure seeks to amend the Insurance Code for adjustment companies; the Investment Houses Law for investment houses; the Lending Company Regulation of 2007 for lending companies; and the Financing Company Act of 1998 for financing companies. Under Article XII of the Constitution, foreign investors are prohibited to own more than 40 percent on certain industries, while they are totally restricted to exploit natural resources, public utilities and own any company in the media industry. “An investment house may be owned up to 100 percent by foreign nationals. Foreign nationals may become members of the board of directors to the extent of the foreign participation in the equity of said enterprise,” the measure read. Under the bill, foreign nationals may own up to 100 percent of a lending company “provided, however, that where the loan is secured by land, a lending company, more than 40 percent of whose capital is owned by foreign nationals, may bid and take part in any sale of such land as a consequence of such mortgage, avail of enforcement proceed-

ings, take possession and transfer their rights to qualified Philippine nationals for a period not exceeding five years from actual possession.” Belmonte said the House is also set to okay House Bill 6162, or a measure extending the Agricultural Competitiveness Enhancement Fund (Acef) to 2022 on final reading. He said the proposed extension of Acef, which expired last year, will allow the government to use its remaining balance of P2 billion. The Acef, which was created by Republic Act (RA) 8178, consists of all duties collected from the importation of agricultural products under the minimum access volume (MAV) mechanism. Under RA 8178, the fund’s entire proceeds should be earmarked by Congress for irrigation; farm-to-market roads; postharvest facilities; credit; research and development; retraining; extension services; and marketing infrastructure for the agriculture sector. Also pending for third reading approval is a measure institutionalizing the Pantawid Pamilyang Pilipino Program (4Ps), or the conditional cash transfer (CCT). The bill, which was principally authored by Nationalist People’s Coalition Rep. Susan Yap of Tarlac and Lakas Rep. Gloria Macapagal-Arroyo of Pampanga,

seeks “to break the intergenerational cycle of poverty through investment in human capital and improved delivery of basic services to the poor, particularly education, health and nutrition.” Under the proposed measure, each qualified household-beneficiary will receive a CCT equivalent to P500 per month for health and nutrition expenses, or the equivalent of P6,000 per qualified household-beneficiary per year, subject to certain conditions. A maximum of three children per qualified household-beneficiary will be given conditional grant for educational expenses. The bill also seeks to provide P300 per month per child enrolled in elementary, or the equivalent of P3,000 per 10-month school year; P500 per month per child in junior high school, or the equivalent of P5,000 per 10-month school year; and P700 per month per child enrolled in senior high school, or the equivalent of P7,000 per 10-month school year. The measure provides that children of all qualified household-beneficiaries must receive regular health checkups and vaccinations and children must attend classes at least 85 percent of the time. The government has allotted P64 billion for the 4Ps this year.