Businessmirror november 20, 2017 by BusinessMirror

THE BusinessMirror MAKES HISTORY IN BRIGHT LEAF AWARDS By Cai U. Ordinario

@cuo_bm

T Members of the 11th Bright Leaf Awards’s panel of judges celebrate with this year’s winners at the Fairmont Hotel in Makati City last Friday. From left are BusinessWorld columnist Albert Gamboa (judge); University of the Philippines Assistant Professor Marby Villaveran (judge); Philippine Daily Inquirer columnist Rina Jimenez-David (judge); Erwin M. Mascariñas of SunStar Cagayan de Oro; Ian Ocampo Flora of SunStar Pampanga; Laila D. Austria of the BusinessMirror; Mariane Mastura (representing Karren Montejo) of ABS-CBN Regional; Jasper Emmanuel Y. Arcalas of the BusinessMirror; Anselmo S. Roque of Punto Central Luzon; John Glen S. Sarol of Philippine Rice Research Institute-Jica; Neriz Nicole Burgos, host of Maunlad na Agrikultura sa Nayon Mag-Agri Tayo DWRW 95.1 FM Pampanga; Felecito B. Espiritu Jr., editor of Maunlad na Agrikultura sa Nayon Mag-Agri Tayo, DWRW 95.1 FM Pampanga; Harold Ramos Mongcal, writer of Maunlad na Agrikultura sa Nayon Mag-Agri Tayo, DWRW 95.1 FM Pampanga; and Founder and CEO of PhotoPRo Studio Mandy C. Navasero (judge). Navasero graced the awarding ceremonies. RHOY DOMINGO

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2015 environmental Media Award leadership award 2008

HE BusinessMirror, the country’s leading business newspaper, made history last Friday. For the first time, the Bright Leaf Agriculture Journalism Awards honored a journalist in two of its national categories. It was also the first time for the BusinessMirror and for one of its youngest reporters Jasper Emmanuel Y. Arcalas. The 21-year-old Arcalas bagged the Best Agriculture Feature Story (National) of the year and Best Agriculture News Story (National) of the year at the 11th Bright Leaf Awards. This is the first time the Feature and News Stories of the Year were won by a single news outfit and a reporter since Bright Leaf began in 2007. The article that won Arcalas a Best Agriculture News Story was his story, titled “PHL retraces journey toward food security.” The story unfolded in four parts the country’s two-decade struggle to achieve rice self-sufficiency. The series was published from January 16 to 19 this year. See “BusinessMirror,” A2

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Monday, November 20, 2017 Vol. 13 No. 40

‘Mishaps show govt can’t maintain, manage MRT’

By Lorenz S. Marasigan

VER since the government kicked Busan Universal Rail Inc. out of the picture, the Metro Rail Transit (MRT) Line 3 has plummeted to worse conditions, as the government lacked expertise on how to properly manage and maintain a railway system.

PHL to raise concerns of banana exporters at WTO meet in Argentina By Manuel T. Cayon @awimailbox

ANTIG: “Without government intervention, in two to three years, we can kiss the banana industry good-bye.”

Mindanao Bureau Chief

AVAO CIT Y—President Duterte said the government would raise before the World Trade Organization (WTO) its concerns over the subsidies extended by Latin American governments to their banana producers, which have allowed them to export bananas at a lower cost. While he vowed to also look into the request of major Filipino exporters to negotiate lower tariffs for bananas and to set up a council, he said the main concern “is really on back trade.” The President noted that Latin American governments shoulder the shipping cost of their banana exporters so they could cut the price of their product. This practice allows exporters of bananas and other food products to negotiate marketing contracts with traditional Philippine export markets, Japan and South Korea, according to an earlier interview with Stephen A. Antig, executive director of the Pilipino Banana Growers and Exporters Association (PBGEA). Duterte conferred with Agriculture Secretary Emmanuel F.

Piñol during a news briefing after he witnessed the launching here of the TienDA Farmers and Fisherfolks Outlet Exhibitors, called the “TienDA sa Ayala Malls,” last Saturday night. The President described the subsidy extended by Latin American governments to their banana exporters as “back trade” and said this was an “unfair trading practice.” Piñol said the Phi lippines would attend the next WTO meeting, which would kick off on December 10 in Argentina, and raise the matter before the multileral trade body. Banana exporters from Latin American countries have appeared as a serious rival of Filipino banana producers in Japan, South Korea and China in the last two to three years. PBGEA members also found that their Latin A merican counter parts were able to negotiate and win See “Banana exporters,” A2

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Sobrepeña: “There’s a shorter way. Under our contract, we can appoint immediately a maintenance contractor. Sumitomo is willing to do it.”

2016 ejap journalism awards

ead

PPPC.LAgra Alberto

This was how MRT Holdings Inc. Chairman Robert John L. Sobrepeña explained the recent mishaps—some were more dangerous than the others—at the railway system over the last week.

ow can a project undertaken through a public-private partnership (PPP) arrangement, whereby the investment and rate of return are not recoverable from endusers, become viable? Such a scenario is particularly true for public good-oriented or “soft” projects where the government, not the consumers, pay. Examples of socially aimed projects are schools, rehabilitation and evacuation centers, prisons, irrigation systems and agriculture development. Sports facilities and railways, while considered “hard,” may not be that feasible or “PPP-able” if implemented without “add on” or “value added” mechanisms.

See “Mishaps,” A2

Continued on A15

BMReports

Large dams: Bulwark or conduit to growth? By Jonathan L. Mayuga @jonlmayuga

Part One

HE Duterte administration is bent on implementing two major dam projects: the New Centennial Water Source (NCWS)-Kaliwa Dam Project and the Laiban Dam Project. The development projects aim to meet the increasing water demand in Metro Manila and nearby provinces by constructing water reservoirs that will boost water security in one of the country’s densely populated region. T he proposed K aliwa Dam Project recently got the muchneeded boost through a P10-billion official development assistance from China. The construction of the dam in the villages of Pagsangahan, General Nakar and Magsaysay, Infanta, both in the Province of Quezon, is estimated to cost P18.724 billion. The NCWS is the first of such public-sector investment projects to be implemented under the government of President Duterte. In case it proceeds as planned, the NCWS will be a big boost to ensuring adequate water supply for consumers in Metro Manila and

This file photo shows Jun Nuñez, a staff of Manila Water Co. Inc., pointing to the water level at La Mesa Dam and Reservoir. An earth dam, the La Mesa can hold up to 50.5 million cubic meters of water. NONOY LACZA

nearby provinces. According to the Manila Waterworks and Sewerage System, the NCWS is expected to provide water security, reliability and additional supply to consumers. The project is zeroing in on the Kaliwa-Kanan-Agos River Basin as an alternative water source. The NCWS project will involve the construction of a dam at the Kaliwa River (Laiban Dam) and a

smaller dam (Kaliwa Dam) downstream to maximize water supply and to ensure short- and long-term supply for Metro Manila and its adjoining areas.

Economic resource

WATER, specifically fresh water, is a very important natural and economic resource. Water helps sustain life on the planet. Plants

and animals, not to mention the human population, will not survive without fresh water. Ban Ki-moon, secretary-general of the United Nations, aptly described the importance of water in his foreword for the United Nations World Water Development Report 2015: “Water flows through the three pillars of sustainable development—economic, social and environmental. Water resources and the essential services they provide are among the keys to achieving poverty reduction, inclusive growth, public health, food security, lives of dignity for all and long-lasting harmony with Earth’s essential ecosystems.” UN Educational, Scientific and Cultural Organization Director General Irina Bokova also emphasized that “water is inextricably linked to the development of all societies and cultures.” “At the same time, this development also places considerable pressure on water resources—agriculture, energy and industry all have impacts on the use and governance of water,” Bokova added. The UN Sustainable Development Goal 6 seeks to ensure

n japan 0.4504 n UK 67.1695 n HK 6.5194 n CHINA 7.6811 n singapore 37.5465 n australia 38.6328 n EU 59.9297 n SAUDI arabia 13.5765

Continued on A2

Source: BSP (17 November 2017 )

BMReports BusinessMirror

A2 Monday, November 20, 2017

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Large dams: Bulwark or conduit to growth? Continued from A1

access to water and sanitation for all underscores the importance of sustainably managing this abundant but finite resource in the face of the global increase in population, environmental degradation and water pollution. Access to water, however, is not about abundance alone but a matter of having water when and where it is needed. The debate over the wisdom of constructing large dams as a way of preserving this precious resource continues because of the cost of construction, management and operation vis-à-vis the socioeconomic and environmental impact of a dam and its construction.

Abundant supply

THE Philippines, an archipelago

comprising more than 7,500 islands and islets, is richly endowed with freshwater resources. The country has 18 major and three principal river basins. It has 421 principal rivers, 79 natural l a kes, g roundwater aqu ifers, with an aggregate area of 50,000 square kilometers and reservoirs that are sustainably supplied from rainfall. All in all, the available freshwater resource of the Philippines is pegged at 145,900 million cubic meters per year, based on the 80-percent probability for surface water and groundwater recharge or extraction at 20,000 million cubic meters per year. With the population currently estimated at over 100 million, clean water supply or access to clean water when and where they are needed

remains a big challenge. The Philippines has a number of large dams that serve as water reservoirs in various parts of the country. Water from these dams are controlled and have a number of important uses—domestic water supply, irrigation of farms and power generation, among others. Some dams were also built for flood control in certain areas and, because of their natural or aesthetic beauty, are also tourist attractions today.

Threatened resource

IN the Philippines former Environment Secretary Regina Paz L. Lopez’s controversial order to cancel 75 mineral-production sharing agreements and one financialand/or technical assistance agreement within or near

Banana exporters. . .

BusinessMirror. . .

marketing contracts for cheap bananas, despite their distance from the Philippines’s Asian neighbors. Antig said they found out that their respective governments have subsidized their shipping cost, a “major price fixer” in the market. He said David DeLorenzo, chairman of the board of the Dole Asia Holdings, has confirmed the drop in the world ranking of Philippine banana exports to sixth spot, from second spot in 2014. But Antig warned that it would be an “uphill climb ” to retake the countr y’s previous rank sans government inter vention. He noted that the government did not give much attention to the banana industry because they are established and can fend for themselves. “Yes, we are big but we are facing stiffer competition now. It’s not a competition by companies of respective countries, but it’s now a competition between countries,” he said. “Without government intervention, in two to three years, we can kiss the banana industry good-bye. We are losing our major markets to Ecuador and other exporting countries,” Antig added. He said Philippine production remains expensive due to the infestation of pests, such as the Black Sigatoka and the dreaded Fusarium wilt. Worse, he added, issues like climate change and the peace and order situation, as well as problems finding areas for expansion, “have made it harder for us to compete with Ecuador exporters who can ship their produce to Asia practically for free.” Duterte and Piñol, however, have assured Filipino banana exporters that they are already looking into other domestic issues, including the set up of a banana council.

Arcalas’s three-part story, titled “Can 13-year-old manual save PHL from bird flu?” won for him the Best Agriculture Feature Story this year. The piece focused on the country’s efforts to curb the birdflu outbreak using its 13-year-old Avian Influenza Protection Program Manual of Procedures. Arcalas, who is assigned to cover the agriculture beat, is also one of the youngest reporters to win at the Bright Leaf Awards. He submitted his entries while en route to Brazil to cover the Southern American country’s meat sector upon the invitation of its industry association. “This year, as a judge, one comes away not only with an appreciation of the state of agriculture journalism in our country but, as always, with fresh knowledge of current developments,” literary writer and Philippine Star columnist Krip Yuson said in his speech at the Fairmont Hotel in Makati City. Yuson is the head of the panel of judges for this year’s Bright Leaf Awards. “All this makes for fascinating reading. And that is primarily what the Bright Leaf Agriculture Journalism Awards triumphs in: opening up many new doors to allow the bright light of knowledge to shine through,” he added. Yuson and the judges also honored BusinessMirror ’s Tarlac-based photographer Laila Austria who won the Tobacco Photo of the Year for her entry, titled “Drying Tobacco,” which was published in May. Three of her entries were shortlisted in two categories, including Agriculture Photo of the Year. This was the second year Austria joined the Bright Leaf Agriculture Journalism Awards. This year’s winners also included Karren Montejo of ABSCBN Davao for the Agriculture Story of the Year; Anselmo

Continued from A1

watersheds to protect the country’s freshwater source highlighted the issue of ensuring water security and sustainability. Mining, however, is not the only factor that threatens the country’s freshwater resources. Aggravating water insecurity are the degradation of the environment caused by development projects, such as quarrying, logging, conversion of forest lands for human settlement and food production and the pollution of rivers and lakes. Added to these are the wasteful use of water and poor appreciation of water recycling to conserve the finite supply of clean water. D u r i ng su m mer, whe n rivers run dry and water supply becomes scarce, the management of the Angat Dam, which supplies

water to Metro Manila, is put on a spotlight. Large dams serve their purpose to conserve water during the rainy season—both for flood control and future domestic and irrigation use during the summer when rain becomes infrequent.

Philippines dams

THERE are a number of large dams in the Philippines that were built primarily as a water reservoir for domestic and agricultural use, although some are for multiple uses, such as for hydropower and flood control. Some dams are also functioning ecotourism spots given the good number of recreationa l activ ities they offer, such as fishing, bathing or swimming. A round dams, there are also

Roque of Punto Central Luzon for Best Agriculture News Story (Regional); John Glen Sarol of Philippine Rice Research Institute, Best Agriculture Feature Story; and Erwin Mascarinas of SunStar Cagayan de Oro, Agriculture Photo of the Year. In broadcasting, Bright Leaf winners this year included DWRW 95.1 FM Pampanga as Best Agriculture Radio Program/Segment and ABS-CBN Regional as Best Agriculture TV Program/Segment. “The importance of agriculture appears to escape public attention beyond the fundamentals, which explains why not too many regular publications allow for frequent space for agriculture journalism,” Yuson said. “But certainly, a higher degree of attention to the subject is mandatory for any modern nation that respects and fulfills its responsibilities to its people.” Member of the panel of judges were Chito Lozada, deputy editor of The Daily Tribune; Albert Gamboa, business columnist of BusinessWorld; Marie Aubrey J. Villaceran, assistant professor of the University of the Philippines Diliman; Mandy Navasero, founder and CEO of Mandy Navasero PhotoPRO Studio; Jose Pablo Salud, editor in chief of the Philippines Graphic; and Pennie de la Cruz, desk editor of the Philippine Daily Inquirer. The list of judges also included Dr. Elenia Pernia, dean of the University of the Philippines College of Mass Communications; Jake Maderazo, station manager of DZIQ; Rina JimenezDavid, columnist of the Philippine Daily Inquirer; Dr. Roland Dy, executive director of the University of Asia and the Pacific Center for Food and Agribusiness; and Remar Zamora, chief of the Photo Section of the Philippine Daily Inquirer. The Bright Leaf Agriculture Journalism Awards was launched by Philip Morris Philippines Manufacturing Inc. (PMPMI). The awards is now being given by the PMFTC Inc., the company created in 2010 through the merger of the PMPMI and Fortune Tobacco Corp.

bird-watching, picnic, walking, jogging and biking. Most dams in the Philippines have become a sort of a tourist spot because of their natural beauty. The latter is a plus factor on the more important function of a dam: a water reservoir. The Wawa Dam in Montalban, Rizal, is one of the dams that continue to attract local and foreign tourists. The Magat Dam at the boundaries of Ramon, Isabela, and Alfonso Lista, Ifugao, one of the country’s largest dams, is a multipurpose dam that is also popular among locals who do recreational activities like jogging and biking. One can also enjoy the breathtaking view it offers to visitors. Such experience adds to the debate if the country needs two more dams. To be continued

Mishaps. . .

Continued from A1

“The issues stem from a number of things. First, there’s management expertise to know what to do and how to do it. Second—and more important— you need to have a lot of parts and logistics,” he told the BusinessMirror. Sobrepeña cited Sumitomo Corp.’s experience in the upkeep of the train line back from 2000 to 2012, saying that it is the most efficient way in maintaining the railway system. “When we were there, we were looking at $50 million for spare parts, and there’s no way that the government can do that now—they don’t have the budget for that short term,” he said. “And how can they improve if these spare parts and logistics are not available?” The government is currently maintaining the railway facility after it decided to terminate its contract with Busan Rail for incompetence. For Sobrepeña, maintaining a train line without proper knowledge on it would mean headaches and hardships for the government. “It’s going to be uphill for them. It’s going to be tough,” he said. “I hope somehow they get something done.” As of press time, officials of the Department of Transportation (DOTr) cannot be reached for comment.

‘Not ready’

Busan Rail External Legal Counsel Maricris B. Pahate added that the lesser number of trains running on the tracks, and the uncoupling of a train car from another, only prove that the DOTr is not capable of maintaining the train line. “These show that the DOTr doesn’t appear ready to assume our work,” she said. Transportation Undersecretary for Rails Cesar B. Chavez has since ordered the reduction of the number of revenue trains on weekdays from 20 sets to 15 sets, all of which should run at 40 kilometer per hour. Headway—or the waiting time for the incoming train—was also targeted to be at five and a half minutes, making travel time from the two ending stations in Pasay and Quezon City reach one hour and 17 minutes. The intention of the transportation department is to bid out a new maintenance contract—supposedly having a five-year concession period—within the next six months, while its transition team is onboard with the maintenance. While this seems the quickest way to solve the maintenance issue, Sobrepeña believes that the government has a better option. “There’s a shorter way. Under our contract, we can appoint immediately a maintenance contractor. Sumitomo is willing to do it,” he said. “There’s a short and fast way.” Sobrepeña’s group controls the MRT Corp., the private concessionaire for the train line’s buildlease-transfer agreement. “The bidding process at the least will take six months. It’s only been six days, and look at what happened,” he said. T he group of Sobrepeña has submitted an $800-million investment proposal that involves three phases. Under its proposal, the private-sector concessionaire will start fixing the train line’s immediate problems, namely the system’s dilapidated rails, outdated signaling system and its failing train cars. The next phase involves the upgrade of the whole system, which costs about $400 million. It involves the replacement of all elevators, escalators and the makeover of the stations. MRT Holdings will also buy 48 new cars to double its capacity so that 1 million to 1.2 million passengers could ride the train system daily. The third phase involves the linking of the MRT to the Light Rail Transit Line 1’s Monumento Station. To date, this proposal has yet to be approved or rejected by the transportation department.

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India keen to supply military equipment to PHL–Lorenzana

efense Secretary Delfin N. Lorenzana said last Friday India has expressed interest to help in the Philippine military modernization by supplying equipment. Lorenzana made the remark when asked if the Philippines and India have agreed to sign any agreement during last week’s 31st Association of Southeast Asian Nations Summit. “[We weren’t able to sign anything], but we already have some documents, memorandum of understanding about visitation [of their military] students coming here, or students, officers of the AFP [Armed Forces of the Philippines] and enlisted personnel of the AFP going there,” Lorenzana said. What seems apparent during the meeting with India is the country’s desire to supply the Philippines with equipment it needs for the military’s modernization program, according to the Department of National Defense (DND) chief. “They want to provide us, to supply us also with equipment, [because] they have a very robust defense industry,” Lorenzana said, adding India manufactures boats, tanks and ammunition. “In fact, in the past, we bought rounds of artillery [from them. So they are capable of doing that and they want to tap into our market.” He said India knows the government is implementing a modernization program. “Marami tayong binibili, gusto rin nilang pumasok [We’re buying many things and they’re interested in entering our market],” the DND chief said. India has expressed interest in selling naval frigates to the Philippines. This is not India’s first time to participate in the AFP Modernization Program, as one of India’s leading shipyards Garden Reach Shipbuilders and Engineers previously joined the bid to secure an P18-billion frigate program. India, however, lost to South Korea’s Hyundai Heavy Industries. According to Lorenzana, India won in the first but lost in the second round of the bidding for a frigate-acquisition project. But, when our technical personnel went there to inspect their financial capability, they found out they cannot meet the requirements, he added. Technically, they were disqualified, so that’s why Hyundai won because they were the second winner in the bidding process, Lorenzana explained. Priam Nepomuceno/PNA

The Nation BusinessMirror

Editor: Vittorio V. Vitug • Monday, November 20, 2017 A3

Drilon: Plan to extend martial law in Mindanao needs Congress’s OK

By Butch Fernandez

@butchfBM

ALACAÑANG will need to go back to Congress to seek authorization for the planned extension of martial law in Mindanao, Senate Minority Leader Franklin M. Drilon said over the weekend.

“They will have to present a request,” he added, following reports that latest military assessment indicates the need to extend martial rule in the south. “Under the Constitution, [the Executive] will have to formally ask from Congress, as it is the one authorized to extend”

the imposition of martial law. Drilon indicated, however, that lawmakers will first need to scrutinize the basis for any extension proposal. “Let us decide on the basis of the evidence presented because they said the problem there has been resolved; now they will extend it

again,” he said. “We will ask them to provide the basis why they want to extend martial law again,” the senator added, recalling the original declaration of a 60-day martial law in Mindanao was already extended until December 31. The Senate Minority Leader said this means that, before December 31, the Duterte administration should have secured Congress approval for a second extension. “If they will request to extend martial law, they would have to do so before December 31 and formally ask Congress for authority for another extension,” Drilon said. Such a request should specify anew the basis for extending the imposition of martial law in Mindanao, citing rebellion or invasion, as was previ-

ously done, he said, because that is what the Constitution states. Asked if the Executive is required to render another report to Congress if it seeks a second extension, Drilon said: “I would suppose they would send a report.” But pointed out, partly in Filipino, that, “while there is presumption of regularity” in that report, it is best to withhold judgment until lawmakers read it. “Let us look at it first,” Drilon said. “Let us not come to any conclusion until we have seen the report.” In July Drilon joined three other minority senators—Paolo Benigno A. Aquino IV, Ana Theresita Hontiveros-Baraquel and Francis N. Pangilinan—in voting against the first extension of martial rule in Mindanao.

Steady power at Asean summit venues—NGCP

HE National Grid Corp. of the Philippines (NGCP) reported over the weekend there were no transmission-related power interruptions at Association of Southeast Asian Nations summit venues. “The NGCP reports it did not encounter major transmission-related incidents, which disrupted the supply of power to the 31st Asean Summit

venues,” the grid operator said. The Asean summit and its related summits were held from November 10 to 14. NGCP also said it deactivated its 24-hour Overall Command Center (OCmC) last week. “After operating round the clock beginning November 10, 2017, the NGCP is pleased to report that the grid maintained its optimum work-

ing condition,” the company said. “[The] NGCP assures the public that it is ready to activate its OCmC during similar critical events in the future.” NGCP is a Filipino-led, privately owned company in charge of operating, maintaining and developing the country’s power grid, led by majority shareholders Henry Sy Jr. and Robert Coyiuto Jr. It is 40-percent owned

by State Grid Corp. of China which is the largest state-owned electric utilities company in the world. It transmits and distributes power in China. Since it took over the operations and maintenance of the country’s power transmission network in 2009, the NGCP has introduced major physical and technological upgrades to aging state-owned lines and facilities. Lenie Lectura

Economy

A4 Monday, November 20, 2017 • Editors: Vittorio V. Vitug and Max V. de Leon

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Govt sets new standard for diesel

By Lenie Lectura

@llectura

N a bid to further improve fuel quality and lessen its impact on the environment, the Department of Energy (DOE) has established an upgraded standard for automotive diesel oil.

“The new Philippine standards for automotive diesel oil are in line with our mandate to implement programs and policies that will complement and comply with existing international and environmental standards for fuel,” Energy Secretary Alfonso G. Cusi said. The DOE-Oil Industry Management Bureau (OIMB), together with oil industry stakeholders, approved the Philippine National Standard (PNS)/DOE Quality Standard (QS):004:2017 on coco-methyl ester (CME)-blended automotive diesel-oil specification. The new PNS for automotive diesel oil contains revised technical provisions to upgrade fuel quality requirement, such as reduced sulfur content limit in compliance with Euro-4 emission standard, and test methods for more accurate evaluation of fuel quality. It is separate and distinct from the standards of the Industrial Diesel Oils, which has distinct standard designation, specifically PNS/DOE QS 013:2017. “The primary impact of the new PNS for diesel strengthens the

government’s consistent and continuing program toward the use of cleaner fuels and promotion of indigenous and sustainable energy resources with the end view of reducing dependence on imported oil,” Cusi said. The new PNS for automotive diesel oil also supports the country’s commitment in the international community to reduce carbon emissions through smarter and more efficient use of automotive fuel for transport. Also recently, the DOE released a unified Code of Safety Practices in liquefied petroleum gas (LPG) refilling plants as part of its aggressive campaign for safer use of LPG. “The Code of Safety supports the DOE’s ‘E-Safety Mo’ campaign as we commit to strengthen consumer protection against illegal peddling and use of petroleum products, including LPG,” Cusi added. With the substantial contributions from industry stakeholders, the Code of Safety Practices in LPG Refilling Plants outlines the safety standard operating procedures are as follows:

By Lorenz S. Marasigan @lorenzmarasigan

A gasoline boy fills up the tank of a customer at a gas station along Osmeña Highway in Manila. The Department of Energy said it has upgraded the standards for automotive diesel oil. ALYSA SALEN

1. Tank truck and lorry-entry procedure: a) vehicle-safety entr y check (minimum requirements)—tank-truck operation; and b) vehicle-safety entry check (minimum requirements—lorry operation. Requirements include tasks of the the officers, personnel and drivers, as well as specifications for vehicles transporting and distributing LPG in cylinders. 2. Cylinder-refilling procedure: This includes requirements for:

a) counting check of empty cylinders; b) segregating of cylinders for repair, repaint, requalification, scrap or nonconforming, good and others; c) unloading of brand-new and requalified-repair cylinders from supplier/vendor; and d) filling of cylinders using electronic manual filling machines. 3. LPG cylinders housekeeping and preventive maintenance: This covers specific requirements for: a) LPG cylinders housekeeping; and b) general preventive maintenance.

4. Fire drill and fire marshall, which includes conduct of activities concerning: a) fire and evacuation drill; b) procedures before and during fire drill; c) fire tetrahedron theory; d) basic fire safety; and e) fire extinguisher. 5. Personnel-training requirements: This includes needs for: a) LPG product knowledge; b) basic firefighting seminar; c) first-aid training seminar; and d) basic occupational safety and health seminar.

Legislators urged to lower sugar Asean needs to prepare for upheaval under Fourth Industrial Revolution—study sweetened beverage taxes

onsumer advocacy group CitizenWatch Philippines has joined the mounting calls to minimize the impact of the sugar-sweetened beverage taxes to poor consumers in House Bill 5636, currently pending in the Senate. Should the bill be passed into law, its repercussions will “significantly impact the lives of millions, of low-income Filipino consumers,” said lawyer Tim Abejo, CitizenWatch convenor. “It’s really the low-income earners who consume these products— powdered juice drinks, carbonated softdrinks and other beverages— on a daily basis, and higher prices could take a toll on their everyday expenses as once inexpensive products become suddenly unaffordable,” he explained. The House-approved version of the proposed tax measure, part of the government’s banner tax-reform program called Tax Reform for Acceleration and Inclusion or TRAIN, imposes P10 per liter for drinks containing purely locally produced sugar and P20 on beverages with imported sugar or sweeteners. This can drive the prices of goods to double or even triple their cur-

rent prices, for instance just think of a 1-liter sachet powdered juice now at P9 suddenly sold at P30. Consumers sari-sari store and carinderia owners will all take a big hit, Abejo warned. He cited the over 300,000 signatures gathered by the Philippine Association of Stores and Carinderia Owners (Pasco) from across the country in opposition of the socalled “sweet tax.” “According to Pasco, the proposed tax measure will likely result in the loss of 40 [percent] to50 percent of the total income of the 1.3 million sari-sari store owners,” Abejo said. He added that CitizenWatch supports the more consumer friendly proposal by Sen. JV Ejercito to lower the sugar-sweetened beverage taxes, including, among others, three centavos (P0.03) per gram of sugar on sweetened beverages using purely caloric sweeteners except for those using purely coconut-sap sugar. “While our organization recognizes the avowed rationale of this tax measure, the social-economic equity implications has far-reaching consequences than its supposed health concern,” Abejo said.

Demand for PHL-Vietnam flights growing rapidly–Tuan

he Association of Southeast Asian Nations (Asean) must prepare for the challenges and disruptions on jobs and industry as an effect of the Fourth Industrial Revolution (4IR), according to a new report from the Asian Development Bank (ADB) and the World Economic Forum. The report, “Asean 4.0: What Does the Fourth Industrial Revolution Mean for Regional Economic Integration?” describes the 4IR as characterized by a range of new technologies that are fusing the physical, digital and biological worlds, impacting all disciplines, economies and industries. It added that, while opportunities abound, there are also anticipated challenges. These include deep disruption to jobs as artificial intelligence (AI) and advanced robotics undermine both manufacturing and services jobs, and the growing threat posed to traditional production as 3D printing gains prominence. “Artificial intelligence and robotics are rapidly increasing the jobs that machines can perform better and faster than people,” the report noted. While this may reduce costs and raise productivity, it will also threaten jobs, and some members of the Asean will

be more affected than others.” The immediate threats are to low-skilled, repetitive jobs, such as assembly line workers, it adds, “but services jobs are also at risk, threatening to undermine regional success stories, such as the rise of the business-process outsourcing sector in the Philippines.” And unlike in previous industrial revolutions when new technologies generally led to more jobs being created through the growth of new industries, the outlook is less positive under the current one. The International Labour Organization estimates that 56 percent of jobs in five Asean countries (Cambodia, Indonesia, Vietnam, Thailand and the Philippines) are at high risk of automation in the next few decades. At the same time that jobs are at rising risk of automation, the work force in the Asean is forecast to grow by 11,000 new workers every day for the next 15 years. “In the short term at least, it is likely that unemployment will increase. This could lead to higher numbers of economic migrants within the Asean and increasing inequality,” the paper said. Another challenge is the possible end of traditional “Factory Asia.” Industrialization within

many Asian countries has been based on the supply of relatively low-cost and low-skilled labor attracting foreign investment. But AI and robotics will decrease the competitiveness of low-cost and low-skilled labor, the study added. This challenge is deepened as trade shifts away from physical goods toward virtual goods, with even products, such as engines and spare parts becoming more virtual in character. Rather than importing and exporting finished goods, companies may instead sell blueprints and designs, with customers using 3D printers to manufacture the goods at their own locations, the report said. “Equally, 3D printing will transform the nature of manufacturing. Today, many goods are made at centralized locations operating at scale and producing standardized products. In future, 3D printing may mean that products are produced locally, next to demand, on a highly customized basis,” it said. This could lead to the reshoring of production in many industries back to high labor-cost countries, and reduce the attractiveness of foreign investment in Asean’s manufacturing industries, said the document. Philexport News & Features

EMAND for direct flight between key Philippine a nd V iet n a m c it ies i s growing rapidly, as more Filipinos seek jobs and business opportunities in Vietnam, while Vietnamese seek to visit famous tourist spots in the Philippines. This, according to Vietnamese Ambassador to the Philippines Ly Quoc Tuan, was a result of strategic partnerships between the two Asean nations. “There is a growing demand for Philippines-Vietnam flights as more and more Filipinos fly to Vietnam for job and business opportunities and tourism,” he said during the inaugural of Philippines AirAsia’s Manila-Saigon route. Vietnamese tour ists, he added, are keen on coming to the Philippines. “The need of travel is increasing —and AirAsia has a good supply for that demand for travel,” Tuan said. Philippines AirAsia started flying thrice weekly out of Manila to Ho Chi Minh last Friday. “It’s about time that we did this route,” Philippines AirAsia CEO Dexter M. Comendador said in an interview. “We launched this flight not only because of the huge market, but also because of our group’s commitment to the Asean.” AirAsia, led by Malaysian tycoon Tony Fernandes, has committed to connect all 10 Asean nations through its subsidiaries.

Russian market

According to Comendador, Tuan advised him to also mount flights to secondary airports in Vietnam, specifically Da Nang and Na Thrang. “I was invited by the ambassador to fly to Da Nang and Na Thrang, he mentioned that there are a lot of Russian tourists in the area—and I’ve been looking at Vladivostok for a long time,” he said. Launching circular flights from Manila to Vladivostok via Na Thrang, according to Comendador, would help in increasing the presence of Russian tourists in the Philippines. “I need to have a technical stop in South Korea—say, for refueling. Na Thrang has around 500,000 Russian tourists. Aside from that, I also need to at the air agreements between Vietnam and the Philippines,” Tuan added. To do this, Comendador explained, Vietnam has to grant Philippine carriers fifth Freedom of the Air Rights, which refers to an airline’s right to carry traffic between two foreign countries on a flight that originates and terminates in one’s own country. “Natural the growth path would involve flights to Hanoi, but the ambassador’s suggestion is good. Russians spend their winter in Vietnam, so why not us,” he said.

Three leading beauty and personal-care trends in 2018 B

eauty and personal-care products that take the term “natural” to the next level, provide personalized specifications, and mirror consumers’ own beliefs and values are a few of the key trends that will take center stage in 2018, according to a new report by a global market intelligence agency. Mintel’s “Beauty & Personal Care Global Trends for 2018” said buying trends for next year will reflect “overarching consumer themes of trust, transparency, ethics, sustainability, individuality and speed.” Notable among these is the expansion of the term natural to include locally sourced and technologically

enhanced ingredients and products as environmental challenges become an increasingly importance concern. “While naturals continue to be popular with a growing number of beauty consumers, many are choosing to ‘get back to basics’ by shopping small, buying locally sourced, locally produced and small-batch products, and by ‘being green,’ which is now not only trendy, but for many, a lifestyle choice.” It mentioned a Nigerian company that produces 100-percent natural beauty products using ingredients indigenous to West Africa (e.g., unrefined cocoa butter, virgin coconut oil), partners with local farms and encourages consumers to embrace and

accept themselves for who they are. Moreover, looking to 2020, the report said the possibilities for creating safe, allergen-free, pure and efficacious ingredients through science could one day replace the harvesting of natural ingredients, particularly as climate change and loss of biodiversity become buzzwords. It pointed to a Chinese brand that now highlights its use of a special “space ginseng regeneration” technology to “grow” a more powerful version of ginseng. There is also a trend toward personalized beauty, which Mintel said will prompt brands to embrace inclusivity by looking beyond age, gender, sexuality and body type.

“Consumers want products that fit their own personal routines and meet their own sensitivities,” the report explained. “An influx of information online has educated consumers and they believe they know their skin/hair/body best and appreciate that everyone is different. They want their individual needs to be answered with options or customisable beauty.” As consumers continue to express their individuality, “they are being drawn to new indie brands offering fresh perspectives and unique benefits that big brands can’t fulfill. Being independent means the brand can keep its individuality.”

“Over the next three years, fastchanging consumer behaviours will require brands to redefine how they segment consumers, to become all-inclusive in their approach, and to elevate every opportunity for customisation.” Mintel said the third key trend is the favoring of brands with “personality and purpose” that are aligned with consumers’ own beliefs. Its survey showed that many consumers would stop buying from a firm they believe has unethical practices, would trust smaller businesses over big corporations, and would like to see terms like “cruelty-free” on the products. “The onus is now on brands to impress consumers with a human-like

personality that’s relatable, personable and sincere. Brand-marketing campaigns need to align with consumers’ own beliefs and values, so people feel like they are buying an attitude and lifestyle, and not just a product,” the study said. In 2018 and beyond, “more consumers will demand to be able to talk to brands in the same way they talk to their friends. As a result, consumers will expect instant responses to their needs and queries, inevitably altering corporate structures and causing marketing roles to evolve and new roles to be created in order to craft and maintain the brand’s image on social media.” Philexport News & Features

Agriculture/Commodities BusinessMirror

www.businessmirror.com.ph

Editor: Jennifer A. Ng • Monday, November 20, 2017

Piñol wants NFA to procure other farm goods By Jasper Emmanuel Y. Arcalas

@jearcalas

he chief of the Department of Agriculture (DA) is requesting President Duterte to issue an executive order (EO) that would restore the powers of the National Food Authority (NFA) to stabilize the price and supply of nongrain commodities. In an SMS to the BusinessMirror, Agriculture Secretary Emmanuel F. Piñol said the NFA “should function as a real food agency” by including other agricultural products, such as fruits and fish, in its marketing and distribution activities. “As your Secretary of Agriculture, I am recommending that the NFA be given a bigger role to perform in ensuring stable food supply in the market while, at the same time, allowing farmers and fishermen access to the market,” Piñol said in his Facebook post dated November 19. “The NFA should no longer be just a rice-importing agency, especially since we expect to produce enough rice by the year 2020. The NFA should be the consolidator of products from each region to be repositioned in other parts of the country where these commodities are needed,” he added. Piñol said the NFA should establish Regional Food Terminals (RFTs) where Filipino farmers could sell their produce at a “fair price.” The RFTs, in turn, shall sell the farm produce to urban areas, such as Metro Manila. “If there is abundance of fish in Zamboanga, Basilan, Sulu and Tawitawi, let the NFA set up a Regional Food Terminal in Zamboanga City, which would consolidate the produce to be brought to Cebu or Metro Manila,” he added. “If there is an abundance of vegetables in Baguio, let NFA consolidate these products to be brought to other parts of the country where the commodity in needed.” The NGA supported the paddy-production program of the government, referred to as the “Masagana’99 Program,” which was geared toward rice self-sufficiency. It engaged in massive paddy procurement at government-support prices. PD 1770, which was issued in January 1981, reconstituted the NGA into what is now the NFA. This decree widened the agency’s social responsibilities and commodity coverage to include, in addition to grains, other food items like raw or fresh fruits and vegetables and fish and marine, manufactured, processed or packaged food products, and these were collectively referred to as nongrains commodities. PD 1770 was also the basis of the Kadiwa chain of stores or government retail stores, which sold low-priced basic food and household items, which were established within the National Capital Region and in all the provinces of the country. EO 1028, which was issued on May 31, 1985, provided for the deregulation of NFA’s nongrains marketing activities. This resulted in the termination of NFA’s nongrains trading activities and the return of feed grains and wheat importation to the private sector, as well as the lifting of price controls/ceilings on rice and corn. As such, at the end of 1986, all the Kadiwa Stores had been devolved to the private sector and/or closed.

Asean summit done—and now?

he Association of Southeast Asian Nations summit and the bilateral talks with cooperating nations, from Japan to Australia, from the European Union (EU) to China, from Henry J. Schumacher South Korea to New Zealand, from the United States to India, have shown that the economic possibilities of the Asean economic community (AEC) are enormous, given its total GDP valued at $2.5 trillion and its economy growing at an average of 5 percent to 8 percent. Given the Asean Vision 2025, it is now up to the 10 nations to implement the AEC fast and address the remaining issues, such as the opening the markets, creating Asean-wide regulations, the free flow of labor, etc. One area with problems is the agriculture sector, which will face very stiff competition once the quantitative restrictions, such as quotas, particularly on rice and tariffs on other products, such as sugar, are removed or lowered in compliance with the AEC. The Philippine government may have to look at shielding the farm sector for a short time while improving its efficiency and diversifying the crops. This sounds easy, but will be difficult to achieve given the unfortunate fact that initiatives in agriculture in this country are slow in coming; there is plenty of talk but little improvement. There is no doubt that the government and the private sector have to come together to jointly address the issues that have been highlighted so many times over a long period. Privatesector participation should not be limited to farmer organizations; in my view, a big business that is making tons of money in other industries should effectively get involved in agriculture, with special emphasis on agri-food supply and value chains. All the conglomerates are talking about “inclusive growth” but are not really contributing to the much-needed change. If Thailand and Vietnam can do it—exporting rice, fish, coffee and other commodities/finished products, Philippine business should be able to copy and implement it. Reading about the results of the bilateral meetings between the Asean leaders and with the leaders of cooperating countries, cooperation in the field of agriculture is almost always mentioned, being it technical support or opening the markets for specific agricultural commodities. The EU, Canada and the US have signaled strong interest in free-trade agreements, which will also be specific in terms of agricultural products, from commodities to finished food products. Let me reiterate again that the poverty in the Philippines will not disappear without addressing agriculture. Support services to farmers and fishermen, such as financing, incentives, technology, irrigation, postharvest facilities, farm-to-market roads, improved logistics and integration in the supply chain to fully develop the potential of the agricultural industry to develop rural areas and the countryside, have to be delivered.As a consequence, some 20 million rural Filipinos can be lifted out of poverty. And the children of farmers will stop moving from rural areas to urban centers or become Overseas Filipino workers. Isn’t this what the 10-point socioeconomic agenda of the Duterte administration has in mind? Fighting poverty in agriculture? If this is part of the agenda of the administration, then it makes good sense to revisit the 10-point socioeconomic agenda of the Duterte administration: How high is agriculture on their agenda? Only 11 of the administration’s 75 flagship projects are for the agriculture sector. Given the encouragement the Philippines got from the Asean summit and the bilateral discussions, it makes sense to keep the momentum going and address the issues to finally integrate the agricultural sector into the AEC. Comments are welcome; contact me via e-mail: Schumacher@mcasia.org.

europe Beat

Banking&Finance BusinessMirror

Monday, November 20, 2017 • Editor: Jun B. Vallecera

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PHL selling 1.4B RMB or P10.7B panda bonds

he Department of Finance (DOF) said the grants China provided to the Philippines, as well as its support in the planned panda bond sale, signal its strong support for the Philippines.

According to Finance Secretary Carlos G. Dominguez III, China’s help in the construction of drugrehabilitation facilities and bridges in Manila indicated its “understanding and sympathy” for the challenges faced by the Philippine government. The grant would help launch two projects, including the construction of two drug-rehabilitation facilities worth $22.95 million and another $99.27 million to build the Binondo-Intramuros bridge and the Estrella-Pantaleon bridge across the Pasig River in Manila. The launching ceremonies were held at Malacañan Palace on November 15, with President Duterte and Chinese Premier Li Keqiang witnessing the event. “These projects indicate China’s understanding and sympathy for the challenges that confront our people as we move forward toward a truly dynamic and inclusive economy,” Dominguez said. The DOF said the construction of the drug-rehabilitation facilities and the bridges across the Pa-

sig River will be financed purely through the Chinese government’s grant assistance (China Aid). Dominguez also thanked the Bank of China (BOC) for assisting the Philippines in facilitating the planned panda bond sale in China and in organizing the Philippine Economic Briefing in Shanghai in September to present to investors the economic gains that the Philippines made on Duterte. “Furthermore, we thank the BOC for taking the lead in helping us gain a foothold in the panda bond market. We are very happy that the BOC has come to our assistance. We also welcome the bank’s efforts in bringing the Philippines’s growth narrative to the Chinese investors as demonstrated in the last Philippine Economic Briefing in Shanghai, and look forward to a strengthened partnership,” he added. Dominguez signed an underwriting agreement on behalf of the Philippines as issuer for the planned panda bond float in the Chinese market, with the Bank

of China Ltd. and Standard Chartered Bank (China) Ltd as lead underwriters. The proposed transaction involves 1.4-billion renminbi (RMB)denominated panda bonds in the Chinese market. Dominguez signed the underwriting with BOC Chairman Chen Siqing in ceremonies held at Malacañan Palace last week. As lead underwriter, the BOC committed to form an underwriting team that will purchase the panda bonds that the Philippine government will issue, and then resell it to the Chinese market for a profit. “The panda bond issue will diversify our funding sources and provide benchmarks for other Philippine issuers in the onshore market, particularly at this time that the renminbi is a reserve currency,” National Treasurer Rosalia V. de Leon said. Earlier, the Bureau of the Treasury (BTr) announced that it would tap the panda market through the issuance of panda bonds estimated at $200 million. The BTr is completing the registration requirements with the Chinese government. The DOF said the BTr tapped the BOC and Standard Chartered Bank as lead issuers for the $200-million sale exercise. Panda bonds are RMB-denominated securities from a non-Chinese issuer but sold in the People’s Republic of China. “The bond issue will also complement the financial support from China for the implementation of critical infrastructure projects,” she added. Rea Cu

Perspectives Looking for growth in all the wrong places

on large-scale business model transformation, and only 39 percent suggest they might enter into some form of collaborative partnership or joint venture.

The gap between ambition and investment

KPMG member-firms’ experience and discussions with market leaders suggests that doing more of the same will not be sufficient to drive real and sustainable growth. It will take much deeper, much more disruptive and much more innovative approaches to outperform the market in today’s rapidly changing environment. The reality is that the market is already changing. Those unable to make big, bold steps will likely be left behind. Today’s leaders are the ones that are harnessing technology to create unprecedented integration between their customers, their suppliers, their shop floors and their products. They are sharing information and revenue models in ways that allow them to identify, develop and build new products faster, more efficiently and more profitably. They are developing robust strategies that span the entire enterprise. They are turning risks into opportunities and disruption into competitive advantage. In short, they are redefining what their company does, how they work and what they want to be in the future. If your organization is not on this path, you may have good reason to worry. In much the same way as Henry Ford killed the horse buggy with new ideas, new approaches and new business models, today’s market leaders and disruptors are killing the traditional manufacturer. There will certainly be winners and losers.

anufacturing CEOs are confident they can achieve growth over the next three years. But growth will require big and bold strategies. The CEO Outlook, a recent survey conducted by KPMG International that surveyed over 1,300 CEOs from around the world, found that 150 CEOs from the largest industrial manufacturers felt bullish about their short- and medium-term growth potential. Indeed, 84 percent of our respondents voiced confidence in their ability to achieve growth over the next three years. Dig a little deeper into the numbers, however, and some concerns start to emerge. More than half (51 percent) admit that their growth will likely be limited to less than 2 percent per year over the next three years. Forty-four percent say they are concerned about their ability to increase their overall market share. Fifty-four percent are worried that the current political landscape will have a significant impact on their organization.

One would think, therefore, that manufacturers would be starting to look for new ways to grow. And that should translate into increased investment into new markets, new ideas and new capabilities. Manufacturing CEOs certainly seem to want to find new paths to growth. Our survey reports that 47 percent are making innovation a high priority over the next three years. Almost three quarters (74 percent) say they see expansion into new geographic markets as a growth priority. Seventy-six percent say that penetrating new verticals will be a priority. Yet, our survey suggests a significant mismatch between their growth ambition and their investment plans. Almost half (46 percent) admit they don’t plan to put any new investment into innovation (either in new products or into new business models) over the next three years. Just 17 percent say they will put major investment into emerging technologies. Less than 1-in-3 say they plan to put significant new investment into recruitment. Only a third are planning major investment into improving their digital infrastructure.

Time for a plan

All of this data begs the question: How exactly do they expect to achieve growth if they don’t plan to invest into new ideas, models or capabilities? According to our survey, most seem to think they will achieve their growth expectations by doing more of the same. Indeed, it seems the highest priority for our respondents is to increase penetration into their existing markets. And almost two-thirds of our respondents (65 percent) say they will scale up their existing operations and processes in order to achieve their growth strategy. A quarter says they will probably conduct some sort of merger or acquisition activity. But when it comes to making transformative moves, results are worrying. Just 38 percent say they will take

Are you a car or a buggy?

Take the threat seriously

Viewed in the context of this reality, the results from this year’s CEO survey are worrying. It will take significant vision, investment and ambition to drive growth in this new environment. That few CEOs seem willing to take bold steps to achieve their growth objectives suggests that many do not fully understand what is at risk. At KPMG, we believe that it is time for manufacturers to stop playing around the edges and start making radical changes. The risk of doing more of the same far outweighs the risk of disrupting the status quo. Those who ignore this reality do so at their own peril. The article “Looking for growth in all the wrong places” is written by Douglas K. Gates, KPMG in the United States. © 2017 R.G. Manabat & Co., a Philippine partnership and a member-firm of the KPMG network of independent member-firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. For more information on KPMG in the Philippines, you may visit www.kpmg.com.ph.

Real-time posting of SSS member contribution begins next year

he Social Security System (SSS) will begin so-called real-time posting of membercontribution payments under its electronic collection system (e-CS) by January next year that redounds to faster processing of claims and greater transparency at the agency. According to SSS President and CEO Emmanuel F. Dooc, the realtime posting under its e-CS will help members and their beneficiaries receive their benefits and loan proceeds on time. “All SSS branch teller facilities and nonbank payment partners will implement real-time posting of SSS contribution payments starting January 16, 2018. All commercial and universal banks are required to convert their current manual processing of SSS contribution collection and report submission into the e-CS with PRN [Payment Reference Number] by February 4, 2018, and March 4, 2018, for all other banks,” Dooc said. Social Security Commission Chairman Amado D. Valdez estimated the so-called unposted memberloan payments, not contributions, should dramatically fall next year, considering only P817 million have thus far been tracked in the first quarter versus P1.135 billion in 2016. “The commission’s priority is to enhance the contribution collection process. Not only will it improve

the turnaround time for processing benefits, but it will also provide a detailed, accurate and on-time data on our contribution-collection efficiency,” Valdez said. “Although we have managed to improve posting of member-loan payments, we are still not happy with it so we are pushing for process enhancements like real-time posting,” Valdez added. Dooc said all SSS benefits and loans are based on contributions of members and their employers, which is why it is important that payments are recorded correctly and promptly. “For instance, to avail [himself or herself] of a sickness benefit, a member must have at least three posted contributions in the last 12 months immediately before his semester of sickness or injury. If any of his required contributions is not posted, he cannot apply yet for a sickness benefit,” he said. The pilot phase of the project aims for near real-time processing of contribution payments from SSS branch teller facilities within the year, meaning contributions will be posted within 24 hours from the time of payment. The pension fund has 279 branches nationwide, 96 of which accept payments. It also has 81 accredited partner-banks and 10 nonbank collection partners.

Manila’s turn to host customs meeting in 2018

he Bu reau of Customs (BOC) said the Philippines will host a working meeting with the Brunei DarussalamIndonesia-Malaysia-Philippines East Asean Growth Area (BIMPEaga) in 2018, to address social and economic development issues in so-called less-developed areas and enhance economic trade and reforms in the customs-clearing process between the countries. According to the BOC, the Philippines will host the BIMP-Eaga Customs, Immigration, Quarantine and Security Working Group meeting in 2018, as a result of the recently concluded 11th BIMPEaga Heads of Customs Meeting held in Malaysia on November 13. At the two-day meeting last week, Customs Commissioner Isidro S. Lapeña proposed before other customs leaders a time-release study (TRS) on port clearance that will measure the duration of shipment arrival at its destination and its exit from ports. Similarly, the study will also identify each step in the shippingclearance system, with the time for each of these steps being measured as well. Lapeña said the TRS will help identify both the average processing time of shipments and the steps that take the longest time. The results can help inform policies that can lead to faster processing of shipments. He also proposed a bilateral arrangement between the Philippines, Malaysia and Indonesia on goods in transit. Goods in transit is a product of the bilateral meeting between Indonesia and Malaysia, which aims to increase port activity, attract investors and increase economic activities. The meeting also touched on the terms of reference (TOR) for port-to-port information sharing the Philippines has been developing. The TOR will be the standard for information sharing

between ports in the BIMP-Eaga. At the sidelines of the meeting, Lapeña visited the largest port in Sabah, Malaysia, to observe the best in customs-clearance procedures adopted by the Royal Malaysian Customs Department. He said port visits to other Association of Southeast Asian Nations member-states are important, as they help the Philippines with its plan to modernize and develop its port areas. “I am looking forward to more port visits and to explore various new systems from other Asean member-states to ensure sustainable and effective trade among countries,” Lapeña said. The BIMP-Eaga is a subregional economic-cooperation initiative in Southeast Asia that promotes connectivity among its member countries. The members consist of Brunei, Indonesia, Malaysia and the Philippines. Also, the BOC said it exceeded its daily collection target for November 3 and 10, collecting a total of P3.045 billion and P3.839 billion, respectively. The revenue collected on November 3 and 10 were 22.2 percent and 54.1 percent higher than the target daily collection of P2.492 billion. The growth was attributed to the significant collection performance of the different ports nationwide. Rea Cu

As of August, the SSS collected P106 billion in contributions from its various payment facilities, with more than 34 percent of the remittances coming from SSS branches amounting to P36 billion. A total 38 percent, or P39.8 billion, are paid through its ePayment partners like the Electronic Data Interchange facilities, overseas collection partners, Bayad Center, SM Payment Centers and Auto-debit Arrangement program partners. “About 66 percent of our contribution collections are remitted through other payment channels, aside from our teller facilities, so we will make sure that our collection partners are in sync with our system to implement real-time posting of contributions,” he added. The Social Security Commission (SSC), the policy-making body of the pension fund, approved the policy amendments, system and procedure enhancements and resource requirements for the implementation of the e-CS to support continuous process improvements at the SSS. Last week the SSS said its undistributed collection stood at P817 million as of the first quarter, which contracted by 28.2 percent from the P1.135 billion recorded in the same period for 2016. Dooc clarified that the undistributed collections were member-loan payments, and not contribution payment of members. Rea Cu

Proposed OFB marketed as inclusive lender

inance Secretary Carlos Dominguez III last Sunday welcomed Malacañang’s approval of the acquisition of the Philippine Postal Savings Bank (PPSB) by the Land Bank of the Philippines (LandBank), which, he said, would cater not only to the country’s migrant workers but to other overseasbased Filipinos, as well. Dominguez said expanding the coverage of the new bank—to be called Overseas Filipino Bank (OFB)—would make it a “more inclusive” financial institution as it would also cover immigrants of other countries. “The Department of Finance moved quickly to help deliver on the President’s campaign promise to create a financial institution totally dedicated to catering to the needs of all overseas Filipinos—the Overseas Filipino Bank,” Dominguez said. The OFB, he said, is a subsidiary of LandBank, the governmentowned and -controlled bank with the most extensive branch network that will cater to the needs of the families of foreign-based Filipinos. The LandBank submitted the draft Executive Order (EO) 44 on LandBank’s acquisition of the PPSB in September, way ahead of the original October deadline, Dominguez noted. In EO 44, issued on September 28, President Duterte ordered the Philippine Postal Corp. and the Bureau of the Treasury (BTr) to transfer their PPSB shares to LandBank at zero value. The EO converted the former PPSB into the Overseas Filipino Bank, a “policy bank dedicated to provide financial products and services tailored to the requirement of overseas Filipinos” and focused on delivering “quality and efficient foreign remittance services.” Dominguez said the OFB will offer a remittance service for overseas Filipino workers, as well as a loan program for Filipinos planning to return here to start businesses or build their homes. Rea Cu

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Saudi crackdown sent shivers in the largest Mideast IPO

Dubai property developer managed to pull off the Middle East’s largest initial share offering this year, but only after it was almost derailed by the sweeping arrests in neighboring Saudi Arabia, where authorities say they’re rooting out corruption. Advisers to Emaar Properties PJSC scrambled to complete a $1.3-billion share offering in its United Arab Emirates (UAE) development business after local investors reneged on hundreds of millions of dollars in demand on the last day of the sale, according to people familiar with the matter. The retreat was triggered by Saudi Arabia’s unexpected crackdown, they said. In the end, Emaar Development PJSC was able to pull off the listing within the original price range, with backing from some prominent regional investors and global funds, making it the largest deal in the Middle East this year. The top 10 buyers accounted for about 50 percent of the sale, and funds linked to the Abu Dhabi royal family also invested in the sale, two of the people said. The government of Dubai is the largest shareholder in parent Emaar Properties, while Abu Dhabi has close ties with the Saudi regime. “We are pleased to have received significant retail and institutional support for our IPO [initial public offering], the first in Dubai in three years,” a spokesman for Emaar Development said in an e-mailed response to questions. “Subscriptions to our IPO indicate that investors are excited about the prospects of Emaar Development, particularly our increased sales and performance, and our expected dividend yield of 8.6 percent for the next three years, which is higher than our competitors, and likely to increase in the future.” The unprecedented Saudi crackdown this month has seen prominent royal family members and billionaire investors detained. The shock waves wiped almost $19 billion of value from exchanges across the sixmember Gulf Cooperation Council countries last week. There was plenty of demand for Emaar shares at the start of the IPO, which opened on October 26, more than a week before the surprise Saudi move. The struggle to complete the sale shows how regional investors are getting increasingly worried about deploying capital in the region amid the crackdown. It could also impact other large IPOs in the UAE, including the sale of shares in Abu Dhabi National Oil Co.’s retail fuel stations planned for later this year and the potential IPO of Emirates Global Aluminium in early-2018. Shares of parent Emaar Properties have fallen 7.5 percent since the IPO began. They’d previously enjoyed a surge after the plan to list the unit was announced in June. Saudi Arabian investors that had expressed interest in large orders for Emaar Development at the start of the IPO process backed out after the crackdown, the people said. That affected appetite in the UAE as well, and investment banks managing the sale spent the last day calling around investors to assuage their fears and try and win back demand, they said. Some local investors did subsequently return to the sale, while global funds bought a large portion, betting on guaranteed returns from the annual dividend on offer, the people said. Bank of America Corp. and Goldman Sachs Group Inc. were the global banks that managed the offering, along with Emirates NBD PJSC, First Abu Dhabi Bank PJSC and EFG Hermes Holding SAE. Rothschild was financial adviser. Bloomberg News

Editor: Lyn Resurreccion • Monday, November 20, 2017 A7

Subways are the latest casualty of China’s crackdown on debt

hina’s frenzied construction of subway systems in cities all over the country may be easing, amid reports funding has been pulled for some projects as Beijing pushes to rein in debt levels.

The National Development and Reform Commission (NDRC), China’s top economic planning body, is revising a 2003 policy on subway development, Caixin reported last Saturday. The NDRC wants to “raise the bar” for approving local rail projects amid growing concern over a debt-driven infrastructure boom, the financial magazine said, citing sources that it didn’t identify. Population levels, as well as the economy and fiscal conditions of Chinese cities seeking permission for subway projects, will be more closely scrutinized, Caixin said. The NDRC didn’t immediately reply to questions faxed last Saturday by Bloomberg News. Subway construction is a constant presence in China’s cities, with streets torn up to build the capacity needed to transport the swelling ranks of urban commuters. Beijing alone has been testing three lines: a driverless subway, a maglev train and a tram to be launched in the city’s western suburbs at the end of the year, the official Xinhua News Agency reported in September. But investment in the sector appears to be tapering off, just as China’s leaders make reining in financial risks a top priority. Fixed-asset investment in rail transportation has slowed almost to a standstill in 2017, increasing just 0.4 percent from January to October from a year earlier,

0.4%

The increase in fixed-asset investment in rail transportation from January to October, which has slowed almost to a standstill in 2017

statistics bureau data show. That’s down from 3.5-percent growth in the first four months of the year. Private rail-transport investment—which makes up a tiny share of an industry that’s dominated by state-backed enterprises— slumped 58.6 percent from January to October from a year earlier. Cities in Inner Mongolia have been told by China’s central government to halt infrastructure projects, Caixin reported earlier this month. That included a 30billion yuan ($4.5-billion) subway project in the city of Baotou, and another valued at 27 billion yuan in the regional capital, Hohhot. Bloomberg’s calls to the media office of Hohhot’s city government weren’t answered after regular business hours, and a hotline for the mayor of Baotou also wasn’t picked up last Saturday. Reduced rail investment would be a reversal for a country that’s feverishly embraced trains. China

Chinese commuters and shoppers take the subway. Bloomberg

operated nearly 2,600 high-speed trains at the end of 2016, 60 percent of the total worldwide, according to Xinhua. The fast-rail network has surpassed 20,000 kilometers, and leaders are targeting 45,000 km by 2030, the state-media service said in June. In 2012 the NDRC approved plans for subways in 18 Chinese cities, including southern export powerhouses Guangzhou and Shenzhen. Back then, the body also authorized intercity rail projects throughout Inner Mongolia, Gansu, Ningxia and Jiangsu province.

Debt bubble

Still, Yicai Global, a state-backed business publication, reported in September that some 43 so-called third-tier cities—mostly in provinces in China’s more populous east—secured approval to build

subways as part of economic development and urbanization efforts. Inner Mongolia’s population has held at around 25 million since 2010, according to the northern region’s statistics bureau, while the eastern province of Zhejiang, the headquarters of e-retailing giant Alibaba Group Holding Ltd., is home to almost double that many people. If China is taking a more discriminating approach to infrastructure growth, it marks an about turn. In the wake of the global financial crisis, the governmentchampioned projects in far-flung provinces—from new highways to sports stadiums—as a way of keeping people employed and maintaining economic momentum. That spending saw leverage balloon to more than double GDP, a risk factor Beijing is now trying to tackle.

People’s Bank of China Governor Zhou Xiaochuan has issued blunt warnings about debt levels in the world’s second-largest economy. Regulators have been clamping down on shadow banking and trying to deter bond issuance. In October Zhou called for further measures to constrain local government borrowing. The liabilities built up by local authorities’ financing vehicles in the post-crisis spending binge became symbolic for many investors of China’s excesses when it comes to debt. Both Moody’s Investors Service and S&P Global Ratings have reduced China’s credit rating this year, citing risks from extreme leverage, while the International Monetary Fund warned in June that deep reforms will be needed to break away from debt-fueled growth. Bloomberg News

Republican tax bill faces obstacle over small business entities

ASHINGTON—On the eve of the House’s vote to pass a far-reaching $1.5trillion tax cut, Speaker Paul D. Ryan of Wisconsin placed a hasty phone call to his state’s senior senator, Ron Johnson, in hopes of resolving an unlikely conflict in his own backyard. Johnson had become the first Senate Republican to say publicly that he could not vote for the Senate’s version of the tax bill. During the phone call last Wednesday afternoon, Ryan, who had campaigned heavily for Johnson in 2016, posed an essential question, according to the senator: “What are you going to need?” What Johnson needs, he said in an interview from Wisconsin last Friday, is for the bill to treat more favorably small businesses and other so-called pass-through entities—businesses whose profits are distributed to their owners and taxed at rates for individuals. Such entities, including Johnson’s family-run plastics-manufacturing business, account for more than half the nation’s business income, and the senator says the tax bill would give an unfair advantage to larger corporations. “I just have in my heart a real affinity for these owner-operated passthroughs,” he said. “We need to make American businesses competitive— they’re not right now. But, in making businesses competitive, we can’t leave behind the pass-throughs.” The sudden fissure between longtime allies laid bare the challenge that Republicans face as the tax bill leaves Ryan’s care and navigates the rough waters of the Senate, where

different priorities within the party could sink the bill if not adequately addressed. Senate Republican leaders, who are seeking a major legislative victory before year’s end, hope to bring their tax bill, which differs significantly from the House measure, to a vote after Thanksgiving. But it is unclear whether it has enough support to pass in the narrowly divided chamber. Offering concessions to skeptical senators one by one could prove an impossible task for Republican leaders, who face restraints under Senate rules on the total size of the tax-cut package. Those leaders are hoping, instead, that they can pull off a version of Ryan’s strategy: all but daring holdouts to derail the party’s top priority. Republicans, who control Congress and the White House, are desperately seeking their first significant legislative achievement of the Trump presidency. Johnson’s public wavering elicited calls from President Donald J. Trump and a visit from Treasury Secretary Steven Mnuchin and National Economic Council Chairman Gary D. Cohn, all of whom sounded out Johnson about his concerns. Johnson is a firm believer in the power of tax cuts to lift economic growth. He grew up on a Minnesota farm, worked as an accountant after college and spent more than 30 years immersed in his family’s plastics company before assuming his Senate seat in 2010. Since winning reelection in 2016, he has not shied from voicing displeasure with the Republican leadership.

House Speaker Paul Ryan (Republican-Wisconsin) during a news conference following the House passing the Republican-led tax-reform bill, on Capitol Hill in Washington on November 16. A sudden fissure between Ryan and a longtime ally laid bare the challenge that Republicans face as the tax bill leaves the House and navigates the Senate, where different priorities within the party could sink the bill if not adequately addressed. Al Drago/The New York Times

He was an early and vocal critic of the party’s legislation to replace the Affordable Care Act, though he ultimately voted in favor of the bill. His concerns with the Senate’s tax bill stem not from its overarching goal of cutting taxes but with how the bill treats small businesses and large corporations. Johnson says the legislation is tilted in favor of big companies, and he is eager to find a way to level the playing field. Ryan, who was his party’s 2012 vice presidential nominee, helped Johnson’s ascendance to the Senate. Ryan barnstormed Wisconsin on Johnson’s behalf as his comefrom-behind reelection bid took off last year, and the two have forged a bond in Washington.

“You know what we control, with Ron Johnson’s election?” Ryan asked the crowd at a rally the night before the election. “We in Wisconsin control who controls the United States Senate. If you want to see anything get done—pass it in the House, get it from the Senate and get it on a Republican president’s desk and get it into law—Ron Johnson’s got to get reelected.” But the dynamics of the two chambers differ markedly. With the House tax bill, Ryan and other Republican leaders employed a command-and-control process and a rocket-speed schedule to minimize Republican dissent. The strategy worked: The bill sailed through the House last Thursday along party lines, two weeks after

it was introduced. In the Senate, where the party’s margins are much smaller and individual members are more powerful, party leaders will need to win over what could be a half-dozen or more wavering Republicans, beginning with Johnson. Others include Sens. Bob Corker, Jeff Flake, Lisa Murkowski, Susan Collins and John McCain. The Senate bill cleared the Senate Finance Committee last Thursday night. Before he can support it, Johnson said, he wants to see changes in its treatment of pass-through entities to put them on equal footing with corporations. While rates would fall for Johnson’s family business under the Senate bill, they would not fall as much as those for larger businesses. More than 90 percent of US businesses are pass-throughs. The Senate bill would give pass-through owners a 17.4-percent deduction on their income taxes, while cutting the corporate rate to 20 percent, from 35 percent. The special deduction means the owner of a high-profit pass-through would pay an effective top rate of about 32 percent, well above what a traditional corporation would pay. The pass-through treatment has earned the endorsement of the National Federation of Independent Business, the powerful lobbying group for small businesses. “We very much like the Senate bill—it’s a really good deal for the vast majority of pass-through businesses,” said Jack Mozloom, a spokesman for the group. “Based on our analysis, we think it’s going to provide them with a substantial tax cut.” New York Times News Service

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Climate talks end with progress–despite US

ONN, Germany—As the first glimmer of dawn appeared across the Rhine River, delegates stumbled out of an all-night negotiating session at this year’s global climate talks, expressing satisfaction last Saturday at the progress made toward creating a comprehensive rule book for fighting global warming. The two-week meeting in Bonn, Germany, was billed as a “blue-collar” event designed to hammer out the technical details of the 2015 Paris climate accord. But fears had loomed large beforehand that the administration of United State President Donald J. Trump, who rejects the Paris agreement, would seek to block any advances seen as counter to American interests. In the end, most agreed that US diplomats had engaged constructively, while delegations from several American states, cities and businesses were praised for committing themselves to the goals of the Paris agreement. The role of spoiler almost fell to Saudi Arabia, which held up a final agreement for several hours over objections to a phrase it feared might allow for future levies on fossil fuels like oil. “There has been positive momentum all around us,” said Fiji’s Prime Minister Frank Bainimarama, who presided over the meeting and swung the gavel to close it about 7 a.m. “We leave Bonn having notched up some notable achievements,” Bainimarama said, citing agreements on agriculture, ocean protection, indigenous people’s rights and the launch of a new system to

“We leave Bonn having notched up some notable achievements.” —Bainimarama help people in poor countries get insurance against the effects of climate change. Many countries are already feeling the heat that is enveloping the globe, with dramatic floods, hurricanes and droughts across the world in recent months adding a sense of urgency to the talks. Environmental groups expressed satisfaction at the outcome of the negotiations, while noting there’s much still to do and little time left to ensure the Paris accord’s goal of keeping global warming significantly below 2 degrees Celsius (3.6 degrees Fahrenheit) is met. Experts say worldwide average temperatures have already risen 1 degree Celsius since preindustrial times, largely due to carbon emissions from the US and Europe over the past century.

A replica of the Statue of Liberty by Danish artist Jens Galschiot emits smoke in a park outside the 23rd UN Conference of the Parties climate talks in Bonn, Germany last Friday. AP/Martin Meissner

“The conference gets a grade of ‘meets expectations,’” said Andrew Deutz of The Nature Conservancy, an Arlington-based environmental group. “We are still headed in the right direction, but since the US took its foot off the accelerator, the risk of global climate action slowing down has increased.” US diplomat Judith Garber, speaking at the talks last Thursday, reiterated Trump’s position that the US will leave the Paris accord but added that “we remain open to the possibility of rejoining at a later date under terms more favorable to the American people.” Garber, the acting assistant

Brexit negotiation at a standoff as EU’s Tusk sets UK’s May a deadline on exit bill

NITED Kingdom Prime Minister Theresa May is stuck in a Brexit stand-off as European leaders set her a deadline to give ground on the exit bill and the future of the Irish border if talks are to move on to trade before next year. “I made clear to Theresa May that this progress needs to happen at the beginning of December at the latest,” European Union (EU) president Donald Tusk said after a meeting of EU leaders in Gothenburg, Sweden. His comments came after May’s Brexit Secretary David Davis called on the EU to compromise, saying Britain has “made all the running” in negotiations so far. “I want them to compromise,” Davis said in a BBC interview last Friday. “So far, in this negotiation, we’ve made quite a lot of compromises,” he said. “We haven’t always got that back.” The stalemate is dragging on as time runs out for a deal to be reached on the divorce terms so that EU leaders can agree to start talking about the future trade deal. British officials fear the negotiations could fall apart if that doesn’t happen at the next EU summit in December, although European officials are looking at possible dates in January or February to have another go. The UK has already agreed to pay into the EU budget for two years after leaving, which it considers a step toward what the EU wants, even if the Europeans say it doesn’t go far enough. Britain has also agreed to the EU’s schedule for talks—that the divorce gets dealt with before trade. The EU side is clear that it doesn’t think it’s up to them to make concessions. Davis was grilled late last Thursday by German business leaders in Berlin about the UK’s intentions on the bill. He said he’d answer that question in a “few more weeks.” May dodged a question from reporters on Friday morning about whether the UK was preparing to put more money on the table.

Breakfast diplomacy

Last Thursday and Friday May and her ministers launched a round of diplomacy in an attempt to break the deadlock, flying to Germany, Ireland and Sweden. Speaking to business executives in Berlin on Thursday night, Davis said the UK was looking at the EU demands on the bill everyday and was in constant contact with the EU side. From now to the December summit, “we will have pretty much continuous negotiations,” Davis said.

Meanwhile, May and her Foreign Secretary Boris Johnson held separate talks with their Irish counterparts against a backdrop of an EU demand to settle the question of the post-Brexit border between Ireland, which will stay in the bloc, and Northern Ireland, which will leave as it’s part of the UK. May flew to Gothenburg, Sweden, and had breakfast with Irish Prime Minister Leo Varadkar on the sidelines of an informal gathering of EU leaders. May told reporters when she arrived that she’d already set out her vision for a new “economic partnership” with the EU, and it was up to the EU to reply. “I look forward to the European Union responding positively so that we can move forward together,” she said.

New year

For his part, Varadkar said it was for Britain to make compromises, not the EU. “If we have to wait for the new year, if we have to wait for further concessions, so be it,” he told reporters. Varadkar said he wants a pledge that “we won’t go back to the borders of the past” separating the south from the north on the island of Ireland. “We want that written down.” In Dublin last Friday Irish Foreign Minister Simon Coveney warned his British counterpart, Boris Johnson, that efforts to solving the border question are at “somewhat of an impasse,” jeopardizing the prospects of a breakthrough in Brexit talks next month. For some in Britain, the blame lies with Europe’s big two—France and Germany—for blocking progress. Davis hinted at his frustration in his BBC interview, naming a clutch of other countries that “do want to move on” to discuss trade and the transition phase. Germany and France are “the most powerful players” in the EU, he said. “What they, what they believe is very influential, sometimes decisively so.” Despite the uncompromising stance from both sides in public, Tusk offered a glimmer of hope that the talks are yielding some results. He said there had been “good progress on citizens’ rights” in the negotiations before calling for “much more progress on Ireland and on the financial settlement.” European Commission President Jean-Claude Juncker reinforced the point. “The clock is ticking,” he said before the Gothenburg meeting began. “I hope that we will be able to come to an agreement as far as the divorce is concerned in the December council, but work still has to be done.” Bloomberg News

secretary of state for oceans and international environmental and scientific affairs, said Washington remains “committed to mitigating greenhouse-gas emissions through, among other things, increased innovation on sustainable energy and energy efficiency, and working toward low greenhouse-gas emissions energy systems.” The conciliatory tone coming from US diplomats was at odds with the more combative position taken by White House adviser George David Banks, who raised eyebrows by hosting a pro-coal event during the talks. “Having already abandoned

its leadership role on climate, the Trump administration appears to be living in an alternate universe with its focus on fossil fuels,” said Paula Caballero, who heads the climate program of the Washington-based World Resources Institute. Caballero noted that the leaders of US states, cities and businesses— who came to Bonn separately from the White House and State Department delegations—earned widespread approval for pledging to honor the Paris accord. Germany, which hosted the meeting, received mixed reviews. While many praised the country’s negotiators for brokering deals between

opposing groups at the talks, there was also disappointment that German Chancellor Angela Merkel failed to join other rich countries in announcing a firm deadline for phasing out the use of coal-fired power plants. Merkel is currently locked in coalition talks with the environmentalist Green party and the pro-business free democrats, who disagree about the use of coal. The Bonn meeting was a stepping stone toward next year’s talks in Katowice, Poland , where key decisions will have to be made, including on finalizing the Paris rule book and raising countries’ national ambitions for cutting greenhouse-gas emissions. AP

Senior Chinese envoy in North Korea

YONGYANG, North Korea— The highest-level Chinese envoy to North Korea in two years held meetings in the country’s capital to try to improve relations that have soured over Beijing’s tightening of sanctions and expressions of support for President Donald J. Trump’s calls for more pressure on the North to abandon its nuclearweapons program. Song Tao’s official mission starting last Friday is to brief North Korean officials on the outcome of China’s ruling Communist Party congress held last month. He is visiting as President Xi Jinping’s special envoy, according to Chinese and North Korean state media, but no other details about his itinerary or whether he will meet with North Korean leader Kim Jong Un have been announced. After arriving, Song met with Choe Ryong Hae, a vice chairman of the ruling party and one of the most senior leaders after Kim. During their meeting last Friday, Song briefed Choe on the developments from the Communist Party congress and also gave him an unspecified gift for Kim, Pyongyang’s official Korean Central News Agency said last Saturday. The agency said Song also stressed the Communist Party’s stance to further build on the “traditional friendly relationship” between the countries and their ruling parties. The visit is seen as an effort by Xi to explore a new approach in relations, and likely also reflects Xi’s desire to head off further pressure from Washington. China’s relations with North Korea have deteriorated under Kim, who has ignored Beijing’s calls to end the North’s nuclear weapons and ballistic missile tests and return to disarmament talks. North Korea staged its sixth nuclear test on September 3, detonating

Choe Ryong Hae (left), vice chairman of the Central Committee of North Korea’s ruling party, shakes hands with Song Tao, the head of China’s ruling Communist Party’s International Liaison Department, at the Mansudae Assembly Hall, in Pyongyang, last Friday. AP/Kim Kwang Hyon

what it said was a hydrogen bomb, and most recently launched a ballistic missile on September 15, firing it over the Japanese island of Hokkaido into the Pacific Ocean. China, North Korea’s largest trading partner, says its influence with Kim’s government is often exaggerated by the United State and others. Beijing is opposed to measures that could bring down Kim’s regime and lead to a refugee crisis along its border, and while enforcing harsh new United Nation sanctions targeting North Korea’s sources of foreign currency it has called for steps to renew dialogue. The visit comes as Joseph Yun, the US envoy for North Korea, met last Friday with his South Korean counterpart, Lee Do-hoon, on the resort island of Jeju in South Korea. “China, of course, has a big role to play on Northeast Asia security issues,” Yun was quoted by South Korea’s Yonhap news agency as saying,

adding that he hopes China “regards the denuclearization as a critical goal. We do hope that special envoy will forward that goal.” Song’s visit to North Korea also comes as China and South Korea are repairing their relations that soured over Seoul’s deployment of a US anti-missile system. South Korean President Moon Jae-in is to visit China next month for talks with Xi. Song is the first ministerial-level Chinese official to visit North Korea since October 2015, when Politburo Standing Committee member Liu Yunshan delivered a letter to Kim from Xi expressing hopes for a strong relationship, although the respite in frosty ties proved short-lived. Vice Foreign Minister Liu Zhenmin visited Pyongyang, North Korea’s capital, in October last year. Song heads the Communist Party’s International Department. AP

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Monday, November 20, 2017

Zimbabweans: Mugabe must quit now

ARARE, Zimbabwe—Giddy with joy and finally free to speak out, vast throngs of demonstrators turned Zimbabwe’s capital into a carnival ground last Saturday in a peaceful outpouring of disdain for President Robert Mugabe and calls for him to quit immediately. Still clinging to his now-powerless post, the longtime leader was scheduled last Sunday to discuss his expected exit with the military command that put him under house arrest. People in Harare clambered onto tanks and other military vehicles moving slowly through the crowds, danced around soldiers walking in city streets and surged in the thousands toward the building where Mugabe held official functions, a symbol of the rule of the 93-yearold man who took power after in-

dependence from white minority rule in 1980. There, in a situation that could have become tense, the protesters instead showed deference to the small number of soldiers blocking their way and eventually dispersed. It was a historic day when the old Zimbabwe, a once-promising African nation with a disintegrating economy and a mood of fear about the consequences of challenging Mugabe, became something new, with a population united, at least temporarily, in its fervor for

change and a joyful openness that would have seemed fanciful even a few days ago. The euphoria, however, will eventually subside, and much depends on the behind-the-scenes maneuvering to get Mugabe to officially resign, jump-start a new leadership that could seek to be inclusive and reduce perceptions that the military staged a coup against Mugabe. The president was to meet military commanders last Sunday in a second round of talks, state broadcaster ZBC reported. “The common enemy is Robert Mugabe. That’s for starters,” said 37-year-old Talent Mudzamiri, an opposition supporter who was born soon after Zimbabwe’s independence. He had a warning for whoever takes over Zimbabwe: “If the next

leader does the same, we are going to come out again.” Many Zimbabweans believe the most-likely candidate will be Emmerson Mnangagwa, a former vice president with close military ties whose dismissal by Mugabe triggered the intervention of the armed forces, which sent troops and tanks into the streets this week, effectively taking over the country. The increasing presidential ambitions of Mugabe’s wife, Grace, a polarizing figure who denounced Mnangagwa amid a factional battle within the ruling Zanu-PF party, alarmed those who feared a dynastic succession. “Leadership is not sexually transmitted,” read a poster at the Harare rallies. Other signs denounced “Gucci Grace,” a reference to the first lady’s record of

The common enemy is Robert Mugabe. That’s for starters.” –Mudzamiri

Protesters climb trees to view the crowd at a demonstration at Zimbabwe Grounds in Harare, Zimbabwe, last Saturday. Opponents of Mugabe are demonstrating for the ouster of the 93-year-old leader, who is virtually powerless and deserted by most of his allies. AP/Ben Curtis

high-end shopping expeditions outside Zimbabwe, which suffered hyperinflation in the past and is currently struggling with a cash shortage and massive unemployment. The discussions over Mugabe’s fate come ahead of a key ruling party congress next month, as well as scheduled elections next year. The president, who is believed to be staying at his private home in Harare, a well-guarded compound known as the Blue Roof, is reported to have asked for more time in office. He has been deserted by most of his allies, with others arrested. The ruling party has turned on him, asking for a Central Committee meeting this weekend to recall both him and his wife, who heads the women’s league of the party. Impeachment is also a possibility when Parliament resumes on Tuesday. Even as concerns remained about who next would be in charge and what freedoms might be available if the military lingers in power—or if Mugabe’s recently fired deputy leads a new government— people reveled last Saturday in the rare chance to express themselves freely. In Harare people ran through intersections, raising their arms in triumph. Young men shouted, laughed and embraced. Others danced on top of moving buses. One man stripped to his underwear and danced on a car roof. Some marchers had posters with an image of the military commander who swept in to take control, with the slogan: “Go, go, our general!!!” Demonstrators handed flags to soldiers, who accepted and waved. “It’s like Christmas,” said one marcher, Fred Mubay, who said Zimbabweans have been suffering for a long time. Veter a n s of t he long w a r against white minority rule, once close allies of Mugabe, took part in the demonstration, along with opposition activists who long have faced police crackdowns by the Mugabe government. Thousands gathered for speeches at the Zimbabwe Grounds, where Zimbabweans assembled to cheer Mugabe’s return from exile in 1980 after the liberation war. Elizabeth Sithole, 60, said her husband died in 2004, she lives with her children in a two-room apartment and her business selling vegetables has collapsed. Last Saturday, though, she had a big smile while standing near soldiers in downtown Harare. “I’m very happy,” she said. AP

Merkel faces endgame for next govt in party talks

erman Chancellor Angela Merkel is setting herself a Sunday deadline to unite four parties into her next governing coalition and avert a political crisis in Europe’s biggest economy. With a day of marathon negotiations ahead, Merkel and her Christian Democrat-led bloc face an increasingly tense endgame to win over the Free Democrats and the Green Party for formal coalition talks, or else risk triggering new elections and a possible end to Merkel’s fourth term before it begins. A deal in Berlin would open the door to bargaining on a detailed policy agenda and Cabinet posts that her party would like to conclude by Christmas. Either way, Germans are headed for uncharted territory. The three factions—nicknamed Jamaica for their respective party colors— haven’t governed together at the national level, and post-World War II Germany has never held a repeat election. “A failure of the Jamaica talks could produce massive instability in Europe,” Winfried Kretschmann, a Green negotiator who’s the premier of Baden-Wuerttemberg state, home to Daimler AG and Porsche cars, told reporters in Berlin last Saturday. “There’s no way of telling yet what the outcome will be.” After four weeks of preliminary talks, negotiators said last Saturday that consensus on economic policy, Europe and transportation are within reach. That leaves immigration and cuts in carbon emissions as two major obstacles to be addressed last Sunday. Germany’s election almost eight weeks ago left the country with its most splintered political landscape since the war. Merkel won with her bloc’s lowest share of the vote since 1949, while the antiestablishment Alternative for Germany, which campaigned against the chancellor’s liberal refugee policy, entered parliament with 12.6 percent of the vote. While billed as exploratory, the talks have been so hard-fought because once the parties agree to start formal coalition talks, “there’s no turning back,” Bavarian premier Horst Seehofer, who’s negotiating for the Merkel-allied Christian Social Union, told reporters. German President Frank-Walter Steinmeier called on all sides to stop jockeying for position and move forward. While his post is mostly ceremonial, it would be up to the president to call new elections. “Parties always try to bid up the price before the official kickoff,” Steinmeier said in an interview with Welt am Sonntag newspaper. Bloomberg News

Lebanon’s PM Hariri says he will be in Beirut within days P

ARIS—Lebanon’s Prime Minister Saad Hariri said he will return home in the coming days from where he will declare a political stance for the first time since making a strange resignation announcement from Saudi Arabia that unleashed fears of a crisis in Lebanon. Hariri and his family met last Saturday with French President Emmanuel Macron, who invited the Lebanese leader to Paris to dispel fears that he was being held in Saudi Arabia against his will. Macron is seeking to calm tensions and avert a proxy conflict between Saudi-backed and Iranianbacked camps in Lebanon. Hariri’s appearance in Paris— looking relaxed and posing with his wife and older son on the steps of the Elysee Palace with the French presidential couple in front of a large crowd of journalists—contrasted with his limited-access, carefully choreographed appearances from Saudi Arabia. Hariri told Lebanese President

Michel Aoun last Saturday that he will take part in Independence Day celebrations in Beirut on Wednesday, according to Macron’s office. After his meeting with Macron, Hariri told reporters: “God willing, I will attend Independence Day in Lebanon and will declare my political stance from Lebanon and after meeting President Michel Aoun.” “As you know I have resigned and we will talk about this matter in Lebanon,” Hariri said after thanking Macron, who he added “expressed pure friendship toward me that I will never forget.” The Independence Day ceremony is usually headed by the president, prime minister and parliament speaker, and Hariri’s presence could help calm uncertainties that have escalated since his strange and surprising resignation announcement on November 4 from Saudi Arabia. However, Hariri’s political status is murky. Lebanon’s president refused to accept Hariri’s resignation, accusing the Saudis of holding him against his will.

A high official in Macron’s office said Hariri’s place is first in Beirut, “which is the only place where he can hand his resignation to the Lebanese head of state.” The official, who spoke on condition of anonymity in accordance with French presidential policy, found it normal that Hariri would keep any announcement about his political stance for his fellow citizens. Before leaving Riyadh, Hariri dismissed as “rumors” reports about his alleged detention in the kingdom. In his November 4 televised resignation announcement, Hariri had cited Iran and Hezbollah for meddling in Arab countries, particularly Saudi Arabia. He also said he was afraid for his life. US President Donald J. Trump last Saturday spoke with Macron about the situation in Lebanon and Syria, and both leaders agreed on the need to work with allies to counter Hezbollah and Iran’s “destabilizing activities in the region,” the White House said. Saudi Arabia last Saturday asked its citizens for the second time in less

than two weeks to leave Lebanon “as soon as possible,” given the “circumstances” there. That raised fears of more punitive actions to come. The French presidential official said it is essential that Lebanon be protected from “negative” foreign influences because the country needs stability and a strong state. The official didn’t name any specific nations but said Lebanon should be protected from the “dangers that regional crises can pose to it.” The Arab League is due to hold a meeting last Sunday in Cairo at Saudi Arabia’s urging, where the Lebanon crisis and Iran’s role in the region are expected to be discussed. Just before leaving Saudi Arabia, Hariri met with the Saudi Crown Prince and other senior officials, according to a member of Hariri’s political party and two Lebanese television stations. Hariri landed before dawn last Saturday at an airport used for private jets in Le Bourget north of Paris, and came in a convoy to his Paris residence in a high-end

neighborhood, where police stood guard. Hariri frequently stays in France thanks to decades-old family ties here. Hariri held private talks with Macron and then they were joined by Hariri’s wife Lara al-Azm and elder son Hussam and Macron’s wife Brigitte for lunch. Hariri’s two younger son and daughter, Abdul-Aziz and Loulwa, remained in Saudi Arabia because they have school last Sunday, said Okab Saqr, a member of Hariri’s parliamentary bloc. The official with the French presidency said France is not worried that Hariri left two of his children in Saudi Arabia. “We have no reason to be concerned about this,” the French official said, answering questions about whether, as some have suggested, Saudi Arabia could use the children’s whereabouts to maintain pressure on Hariri. Hariri’s exact next steps after his planned visit to Lebanon are unclear. A French official said last

Saturday that France is offering Hariri the necessary support during this time of political turmoil in his country. The official was not authorized to be publicly named. Macron said he received Hariri “with the honors due a prime minister,” even though he has announced his resignation, since Lebanon hasn’t yet recognized it. While Macron insists that he’s not offering “exile,” Hariri’s return could be complicated by Lebanon’s internal tensions. During a phone call last Saturday morning, Macron and Aoun spoke about a return of Hariri to Lebanon that could help make Lebanese institutions “function normally again,” the French presidential official said. It’s part of a broader Macron strategy to reassert French influence in the region, while the United States under Trump is increasingly seen as unpredictable or disengaged. Macron’s office says France’s strategy is to talk to all powers in the region and not to appear as choosing a camp. AP

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US general: Illegal nuclear launch order can be refused

ALIFAX, Nova Scotia— The top officer at United States Strategic Command said last Saturday an order from President Donald J. Trump or any of his successors to launch nuclear weapons can be refused if that order is determined to be illegal.

Air Force Gen. John Hyten, commander of Strategic Command, told a panel at the Halifax International Security Forum last Saturday that he and Trump have had conversations about such a scenario and that he would tell Trump he couldn’t carry out an illegal strike. “If it’s illegal, guess what’s going to happen. I’m going to say, ‘Mr. President, that’s illegal.’ And guess what he’s going to do? He’s going to say, ‘What would be legal?’” Hyten said. “And we’ll come up with options with a mix of capabilities to respond to whatever the situation is, and that’s the way it works.” In the event that Trump decided to launch a nuclear attack, Hyten would provide him with strike options that are legal.

The command would control nuclear forces in a war. The comments come as the threat of nuclear attack from North Korea remains a serious concern and Trump’s critics question his temperament. Trump’s taunting tweets aimed at Pyongyang have sparked concerns primarily among congressional Democrats that he may be inciting a war with North Korea. During testimony before the Foreign Relations Committee earlier this month, retired Gen. Robert Kehler, who served as the head of Strategic Command from January 2011 to November 2013, also said the US armed forces are obligated to follow legal orders, not illegal ones. Hyten said he’s talked it over

IN this November 3, 2016, photo, Air Force Gen. John Hyten, the incoming commander of the United States Strategic Command, speaks to reporters following a change-of-command ceremony at Offutt Air Force Base in Bellevue, Nebrasca. AP/Nati Harnik

I think some people think we’re stupid. We’re not stupid people. We think about these things a lot…. You could go to jail for the rest of your life.”—Hyten with Trump. “I think some people think we’re stupid. We’re not stupid people. We think about these things a lot. When you have this responsibility, how do

you not think about it?” he added. He said he would not obey an illegal order. “You could go to jail for the rest of your life,” he said. AP

US delays new policy on importing elephant trophies

A SHI NGTON—P resident Donald J. Trump said he’s delaying a new policy allowing trophies of African elephants shot for sport to be imported until he can review “all conservation facts.” The United States Fish and Wildlife Service said last Thursday it would allow such importation, arguing that encouraging wealthy big-game hunters to kill the threatened species would help raise money for conservation programs. Animal, rights advocates and environmental groups criticized the decision. Rep. Ed Royce of California, the Republican chairman of the House Foreign Affairs Committee, urged the administration to reverse the policy, calling it the “wrong move at the wrong time.” Trump tweeted last Friday that the policy had been “under study for years.” He said he would put the decision “on hold” and review it with Interior Secretary Ryan Zinke. Zinke issued a statement later last Friday saying: “President Trump and I have talked, and both believe that conservation and healthy herds are critical. As a result, in a manner compliant with all applicable laws, rules and regulations, the issuing of permits is being put on hold as the decision is being reviewed.” Rep. Vern Buchanan of the US, a Florida Republican who cochairs the Congressional Animal Protection Caucus, last Saturday said Trump’s delay was a “step in the right direction,” but more needs to be done to protect the species from extinction. In his statement, Buchanan called the sport hunting of African elephants “shameful” and said the US should support a permanent ban. Royce questioned the action because of concerns not only about African wildlife but US national security, citing the political upheaval in Zimbabwe, where the longtime president was placed under house arrest this week by the military. “The administration should withdraw this decision until Zimbabwe stabilizes,” the committee chairman said in a statement.

IN this file photo taken on March 9, 2010, elephants use their trunks to smell for possible danger in the Tsavo East national park, Kenya. AP/Karel Prinsloo

“Elephants and other big game in Africa are blood currency for terrorist organizations, and they are being killed at an alarming rate. Stopping poaching isn’t just about saving the world’s most majestic animals for the future—it’s about our national security.” The Fish and Wildlife Service said in a written notice issued last Thursday that permitting parts of elephants from Zimbabwe and Zambia to be brought back as trophies will raise money for conservation programs. The change marks a shift in efforts to stop the importation of elephant tusks and hides, overriding a 2014 ban imposed by the Obama administration. The new policy applies to the remains of African elephants killed between January 2016 and December 2018. “Legal, well-regulated sport hunting as part of a sound management program can benefit certain species by providing incentives to local communities to conserve those species and by putting much-needed revenue back into conservation,” the agency

said in a statement. Royce said that when carefully regulated, conservation hunts could help the wildlife population, but “that said, this is the wrong move at the wrong time.” He described the perilous situation in Zimbabwe, where the US Embassy has advised Americans to limit their travel outdoors. “In this moment of turmoil, I have zero confidence that the regime—which for years has promoted corruption at the highest levels—is properly managing and regulating conservation programs,” Royce said. “Furthermore, I am not convinced that elephant populations in the area warrant overconcentration measures.” The world’s largest land mammal, the African elephant has been classified as threatened under the US Endangered Species Act since 1979. Illicit demand for elephant ivory has led to devastating losses from illegal poaching as the natural habitat available for the animals to roam has also dwindled by more than half.

As a result, the number of African elephants has shrunk from about 5 million a century ago to about 400,000 remaining. And that number continues to decline each year. Buchanan and Earl Blumenauer, Democrat-Oregon, cochairs of the Congressional Animal Protection Caucus, assailed the administration’s decision. “We should not encourage the hunting and slaughter of these magnificent creatures,” Buchanan said. “We don’t get a second chance once a species becomes extinct.” One group that advocates for endangered species called for more action after Trump’s last Friday night tweet. “It’s great that public outrage has forced Trump to reconsider this despicable decision, but it takes more than a tweet to stop trophy hunters from slaughtering elephants and lions,” said Tanya Sanerib, senior lawyer with the Center for Biological Diversity. “We need immediate federal action to reverse these policies and protect these amazing animals.” AP

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Trump campaign created own rules on sexual harassment

A SHINGTON—” You can do anything,” Donald J. Trump once boasted, speaking of groping and kissing unsuspecting women. Maybe he cou ld, but not ever yone can. The candidate who openly bragged about grabbing women’s private parts—but denied he really did so—was elected president months before the cascading sexual harassment allegations that have been toppling the careers of powerful men in Hollywood, business, the media and politics. He won, even though, more than a dozen women accused him of sexual misconduct, and roughly half of all voters said they were bothered by his treatment of women, according to exit polls. Now, as one prominent figure after another takes a dive, the question remains: Why not Trump? “A lot of people who voted for him recognized that he was what he was, but wanted a change and so they were willing to go along,” theorizes Jessica Leeds, one of the first women to step forward and accuse Trump of groping her, decades ago on an airplane. The charges leveled against him emerged in the superc h a rged t h ic k of t he 2016 campaign, when there was so much noise and chaos that they were just another episode for gobsmacked voters to try to absorb—or tune out. “When you have a Mount Everest of allegations, any particular allegation is very hard to get traction on,” political psychologist Stanley Renshon says. And Trump’s unconventional candidacy created an entirely different set of rules. “Trump is immune to the laws of political physics because it’s not his job to be a politician, it’s his job to burn down the system,” says Eric Dezenhall, a crisis-management expert in Washington. Now Alabama Senate candidate Roy Moore, accused of assaulting teenage girls when he was in his 30s, is waving that same alternative rule book. Long a bane to establishment Republicans, Moore is thumbing his nose at calls by Senate Majority Leader Mitch McConnell and other GOP members of Congress to drop out of the campaign, and accusing them of trying to “steal” the race from his loyal insurgents. As for Trump, the president who rarely sits out a feeding frenzy is selectively aiming his Twitter guns at those under scrutiny. He qu ic k ly u n loaded on Democrat Al Franken after the Minnesota senator was accused last Thursday of forcibly kissing and groping a Fox TV sports correspondent, now a Los Angeles radio anchor, during a 2006 USO tour. Yet, Trump has been largely mum as Washington Republicans try to figure out what to do about Moore. McConnell and company have zero interest in welcoming an accused child molester to their ranks nor in seeing their slim 52-48 Senate majority grow even thinner should Moore lose to Democrat Doug Jones in a special election on December 12. Trump did support moves by the national Republican Party to cut off money for Moore. But he hasn’t said whether he still backs Moore’s candidacy. Spokesman Sarah Huckabee Sanders, pressed repeatedly on the matter this week, would say only that Trump “thinks that the people of Alabama should make the decision on who their next senator should be.”

As for the allegations against Moore, Sanders said Trump finds them “very troubling.” As for Franken, presidential adviser Kellyanne Conway told Fox News that Trump had merely “weighed in as he does on the news of the day” when jabbing at the senator. But Trump’s broadsides at Franken served as an open invitation for critics to revisit his own history of alleged sexual misconduct. Leeds, for her part, called the president “the walking definition of hypocrisy.” Look no further than the bipartisan howl that greeted Iv a n k a Tr u mp’s s t at e me nt this week about Moore for a demonstration of the perilous crosscurrents around Trump on the issue. “There’s a special place in hell for people who prey on children,” Trump’s daughter told the Associated Press, adding that she had “no reason to doubt the victims’ accounts.” She did not call for Moore to leave the race. Liberals and conservatives both pounced. Those on the left noted she had waited a week to chime in, and had never given similar credence to the claims of her father’s accusers. Some on the right faulted her for buying into unproven accusations. Liberal movie director Rob Reiner tweeted: “Ivanka believes Roy Moore’s accusers. But the more than 12 women who accuse her father of sexual abuse are all liars. The difference is?...” The sexual-assault drama is playing out as a painful sequel for Leeds and other women who came forward during the 2016 presidential campaign to accuse Trump of harassment and more—only to see him elected president anyway. “My pain is everyday,” Jill Harth, a former business associate who claimed Trump put his hands under her dress during a business dinner in 1992, tweeted in October. “No one gets it unless it happens to them. NO one!” It’s the same for those who accused former President Bill Clinton of sexual misconduct, their charges once written off as “bimbo eruptions.” “I am now 73...it never goes away,” nurse Juanita Broaddrick, who accused Clinton of raping her in 1978, tweeted last Friday. Allegations of womanizing, extramarital affairs and abuse dogged Clinton over the course of his political life, culminating in his 1998 impeachment— and acquitta l—over his affair with W hite House intern Monica Lewinsky. He also agreed to an $850,000 settlement with Arkansas state worker Paula Jones, who had accused him of exposing himself and making indecent propositions when he was governor. The settlement included no apology or admission of guilt. Leading feminists and Democratic-leaning groups stayed loy a l to h i m t h roughout— though some are rethinking that stance now. Even in the current charged e n v i r o n m e nt , w h e n e v e r y new allegation can produce screaming headlines, Trump may well be able to go his own way—and take a hands-off approach to Moore. “Trump’s base likes him when he’s gratuitously ornery: Insulting war heroes, Gold Star families and the disabled have all been good for him, so what does he gain by strongly opining on Moore?” asks Dezenhall. “Nothing that I can see, so as a guideline, he doesn’t need to do all that much.” AP

AseanMonday BusinessMirror

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Editor: Max V. de Leon • Monday, November 20, 2017 A11

SE Asia’s economic boom reaches Thailand

N economic boom that’s reverberated across Southeast Asia has finally crossed over to Thailand.

The economy, which has lagged its neighbors this decade, is projected to have grown at the fastest pace in more than four years last quarter even as the baht surged. There’s reason to be optimistic, as exports post double-digit percentage gains and the end of a yearlong mourning period for King Bhumibol Adulyadej bolsters the outlook for consumption. “We’re becoming more and more optimistic as the recovery in exports is more enduring than we expected,” said Eugenia Victorino, an economist at Australia & New Zealand Banking Group Ltd. in Singapore. “There’s still a lot of challenges, particularly the inability of

the government to ‘crowd in’ private investment. That would really reenergize the economy.” The GDP probably grew 3.8 percent in the third quarter from a year ago, according to the median estimate of nine economists surveyed by Bloomberg. That would be the quickest pace since the first quarter of 2013, according to the data. The government will release official figures on November 20. Southeast Asian economies are enjoying a growth resurgence with expansion in Vietnam and the Philippines quickening. Malaysia’s economy grew at the fastest pace in more than three years in the third quarter, data showed last Friday.

People walk past the entrance to the Chang Chui night market in the Thonburi district of Bangkok. Bloomberg

Exports Thailand’s exports are coping with the strength of the baht, posting gains of more than 10 percent in each of the five months through September. The baht has advanced more than 8 percent in 2017, among the best performers in Asia.

“The broad-based rise in exports has continued despite a strong baht,” said Tim Leelahaphan, Bangkok-based economist at Standard Chartered Bank. “The baht has been driven by healthy macroeconomic fundamentals rather than portfolio inflows, and these should continue to support the currency

for the rest of this year and in 2018.” The government approved this month tax breaks for year-end shopping and has embarked on a 1.5-trillion baht ($45-billion) plan to build infrastructure and advanced industry along the eastern seaboard. The Bank of Thailand has held its key interest rate near

a record low since 2015. Thailand—under military rule since 2014—is on course for elections next year, injecting uncertainty into the outlook. While some analysts expect a growth boost, others are concerned political divisions could once again flare up. Bloomberg News

Japan urges TPP partners to sign Cambodia’s top court orders opposition party dissolved Pacific trade pact before elections P

ations working to salvage a mammoth Pacific-rim trade pact that the United States abandoned need to move forward before electoral politics get in the way, according to Japan’s chief negotiator. “Next year various countries have elections, there’ll be movements in governments,” Economy Minister Toshimitsu Motegi said last Friday in an interview in Tokyo. “Considering this, we ought to get it signed quickly before then.” While Motegi didn’t cite any specific membercountries of the Trans-Pacific Partnership (TPP) or provide a time frame, Malaysia must hold an election by mid-2018 and Mexico is set to go to the polls in July next year. Yet, not all countries are so keen to move fast, with Canada, in particular, arguing for a quality agreement over a quick one. Discussions over exemptions for Canada’s cultural goods and services need to be finalized before any deal is signed and details concerning state-owned enterprises and trade sanctions also need to be worked out. “The cultural exception item came up abruptly from Canada at the last minute,” Motegi said, referring to talks that took place in Vietnam earlier this month. He added that what

constitutes a cultural exception hasn’t been defined with each country.

Canada challenge

“Canada will have to present the details of its thinking to each country and get their understanding,” he said. “I think it will take a lot of effort on the part of Canada.” The United States withdrawal from the multilateral trade pact earlier this year greatly reduced the economic weight of the agreement, which would have covered 12 nations that together account for 40 percent of the global economy. While the chances of the US returning to the TPP any time soon are low, Motegi said Japan will continue trying to bring it back into the fold. The remaining TPP-11 group has decided to freeze 20 items that were originally planned in the deal with the US. Those items are attractive to the US and could potentially be reactivated as an incentive to bring it back to the agreement, according to Motegi. He added, on November 14, after returning from TPP-11 talks in Vietnam, that labor-related disputes and sanctions need to be discussed before a final sign-off, and that Japan intended to lead coordination between the member-countries on this. Bloomberg News

Asean nations must build next-generation ecozones to attract more FDI–report

ember-states of the Association of Southeast Asian Nations continue to develop more economic zones to boost foreign direct investments (FDI) and socioeconomic development. The “Asean Investment Report 2017” noted that economic zones facilitate quick set up of operations for foreign investors, lower the transaction costs of investing and operating in the host country and ensure factories are more secure. “The need to provide good services in and to economic zones is important. The key issue is how to make them more effective in attracting FDI and in achieving the economic objectives of the host country,” the report read. The report said Asean members should develop or upgrade economic zones to be competitive or build next-generation zones to attract targeted industries and to support the stage of the country’s economic development. “Furthermore, regional cooperation in economic zone development, to facilitate regional value chains and production networks, can be considered or pursued to improve the competitiveness and connectivity of economic zones in Asean,” it added. It also underscored the important roles of players through providing suitable industrial facilities to fa-

cilitate investment to designated areas and operating in them in order for economic zones to be successful and for a country to be competitive. “In most cases, the private sector is the largest developer and owner of economic zones in the region. However, the public sector provides the crucial enabling environment through policy, institutional support and public-private partnerships,” the report read. The investment report further said foreign companies have also played an important role in the development of economic zones in Asean—often in joint ventures with local partners. “Multinational enterprises from Japan, China and other countries are involved in economic zone development in the region. Companies from Aseanmember-states are increasingly participating in the development of economic zones in other Asean member-states,” it read. “With increasing demand in the region, more economic zones are being planned and developed,” it added. The Asean bloc, which includes the Philippines, has over 1,600 economic zones ranging from freetrade zones, export-processing zones, informationtechnology parks to mega special economic zones.

Philexport News & Features

HNOM PENH, Cambodia—Cambodia’s Supreme Court ordered the country’s main opposition party to be dissolved last Thursday, dealing one of the most crushing blows yet to democratic aspirations in the increasingly oppressive Southeast Asian state. The decision means authoritarian leader Hun Sen, who has held power for more than three decades, will face no serious challengers in elections due in July —a scenario likely to cement his rule for years to come. The verdict was widely expected and came amid an intense push by Hun Sen’s government to neutralize political opponents and silence critics ahead of the polls. The opposition Cambodia National Rescue Party (CNRP) issued a statement, saying it would not recognize the ruling and would maintain its leadership structure. It said the verdict was politically motivated and deprived millions of their supporters of their right to be represented. Chief Judge Dith Munty, who is a senior ruling party member, announced the ninemember court’s unanimous ruling in the capital, Phnom Penh. He said 118 opposition party members would also be banned from politics for the next five years, and the verdict could not be appealed. The government accuses the CNRP of plotting a coup and has called for its dissolution for weeks. The opposition staunchly denies the allegations—a position backed by international rights groups and independent analysts who say no credible evidence has emerged to back the claims. The party had been expected to be a serious contender in next year’s polls. During the last vote in 2013, it scored major gains in a tense race that saw Hun Sen narrowly retain office. Since then, the opposition’s fortunes have ebbed dramatically. Sam Rainsy, who led the party during that vote, went into exile in 2016 and faces a jail term for a criminal-defamation conviction if he returns. The party’s current leader, Kem Sokha, has been imprisoned since September, charged with treason. Amid deepening fears over the nation’s fate, more than 20 opposition lawmakers —about half of those with seats in Parliament—have also fled the country. Mu Sochua, an opposition party vice president who is among those who have left, said the struggle for democracy was not over in Cambodia. Speaking in London just before the verdict, she said there were no plans to launch demonstrations immediately. “But, in the

IN this March 30 file photo, leader of the opposition Cambodia National Rescue Party Kem Sokha prays during a Buddhist ceremony to mark the 20th anniversary of the attack on anti-government protesters in 1997, in Phnom Penh, Cambodia. AP

heart, in our hearts, in our minds, in our spirits, in our souls, the fight for democracy will continue. It will not die.” The rights group Amnesty International blasted the decision, calling it “a blatant act of political repression.” “This is yet more evidence of how the judiciary in Cambodia is essentially used as an arm of the executive and as a political tool to silence dissent,” said James Gomez, Amnesty International director for Southeast Asia and the Pacific. “Sadly, this is just the culmination of several months of threats, rhetoric and outright repression. The authorities have launched a widespread assault on dissent... the international community cannot stand idly—it must send a strong signal that this crackdown is unacceptable.” The government-led crackdown has targeted civil-society groups and independent media outlets, too. In September authorities shut down the English-language Cambodia Daily, and they have shuttered radio stations that aired programming from United States-funded Radio Free Asia and Voice of America, whose reports they allege are biased. The government also expelled the US National Democratic Institute, which helped train political parties and election monitors, accusing it of colluding with its opponents. The crackdown reflects a major shift away from American influence, which has waned for years as Cambodia edges closer to China. Analysts say Hun Sen has also been emboldened by US President Donald J. Trump, who has welcomed

Thailand’s coup leader to the Oval Office and praised the Philippine president, despite a crackdown on drugs that has left thousands dead. Hun Sen has been in office since 1985 and has held a tight grip on power since ousting a co-prime minister in a bloody 1997 coup. Although Cambodia is a nominally a democratic state, its institutions remain fragile and the rule of law weak; the judiciary is not seen as independent. Before last Thursday’s ruling, Hun Sen had encouraged opposition lawmakers to defect to his ruling party. In a speech last week to garment workers, he was so confident the court would rule against the opposition party that he offered anyone 100 to 1 odds if they were willing to bet it would not happen. In a speech late Thursday, Hun Sen called on Cambodians to remain calm and go about their lives. He said the decision was necessary to maintain peace and political stability in the country. Charles Santiago, a Malaysian lawmaker who chairs the Asean Parliamentarians for Human Rights, slammed the verdict, calling it “the final nail in the coffin for Cambodian democracy.” “Its decision not only leaves the country without its only viable opposition party less than a year before scheduled elections, but also completely undermines Cambodia’s institutional framework and the rule of law,” Santiago said. “The CNRP was dissolved not for breaking any laws, but simply for being too popular and a threat to the ruling party’s dominance.” AP

Green Monday BusinessMirror

A12 Monday, November 20, 2017

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

Hopes high for the conservation of hornbills on Panay, Negros

By Jun N. Aguirre Correspondent

“Aban” is one of the dugongs or sea cows this reporter (at the back of the dugong) see and play with recently on Calauit Island in Busuanga, Palawan. Marrise Tumampos

Playing with dugong ‘Aban’ in Calauit

By Stephanie Tumampos

few weekends back, this reporter finally met the elusive but beautiful dugong, or sea cow, a vulnerable species that’s almost endangered in Calauit, Busuanga, Palawan.

Overwhelmed by its size compared to mine, while this reporter was trying to freedive at the back of the dugong, “Aban,” as what the tribes call this sea cow, was very playful and has been acquainted with the presence of humans. Going to Calauit Island was very challenging. We immersed ourselves among the Tagbanua tribesmen for four days and three nights. We thanked them for accommodating us and for taking care of this wonderful creature. We had to walk past eight mountains and a climbed one. Our group had to stay overnight in the middle of the forest before heading to Calauit Island. There, we learned a lot of the struggles being hurdled by the Tagbanua tribe in protecting their land— our land and natural resources. In fact, the Tagbanuas were among the only few who are willing to guard the protected areas without pay. Nonetheless, they remain one of the most humble Filipinos who perfectly exemplifies what Filipino hospitality is.

Legend

A legend being told by tribal elders in Palawan tells of a sea creature with a tail like a mermaid that is gracefully swimming through the waters around the Calamianes Group of Islands. It is said through that the sea creature was actually the blind wife of a cheating fisherman, who used his poor wife as an anchor of his boat while fishing and left her there under the waters to attend to his mistress. Their three kids, however, longed for their mother. Their three children, waiting for their mother by the seashore, sing of songs longing: “Mother please feed your milk to Neneng, please show yourself to us. Dodong is also sad without you. Whatever your face is now, we are not afraid of you, DodongDodong, Dodong-Dodong.” One day, a big brown creature with small eyes appeared along the shore, laid down and offered its breasts to give milk to the

brother who has been longing for his mother’s milk. From then on, every morning, the children went by the seashore to wait for the creature which they called “Dodong-Dodong.” The name passed on to generations, which eventually became “Duyong,” to the current dugong, the sea cow, where in Malay term literally means, “the lady of the sea.”

Dugong of Palawan and their importance

“They have been here for as long as our elders know,” Jimmel Novero said to the BusinessMirror in Filipino. Novero is part of the Calamian Tagbanua tribe, head of Bantay Dugong and part of the Committee on Ecotourism in Calauit, Palawan, where a dugongconservation area exist. The Calamianes Group of Islands is located north of Busuanga Island. It is a three-hour van ride from Coron City, where tourism has been booming since it was hailed as the world’s best island by Travel and Leisure magazine, Conde Nast Traveler and National Geographic Traveler for more than once. It is owned solely by the Calamian Tagbanua tribe after they have won a Supreme Court case, and was awarded a Certificate of Ancestral Domain Title over more than 22,000 hectares of land and sea in 1998. This includes the island of Calauit where the dugongs are conserved. There are over 50 dugongs already identified by the Tagbanuas with the help of partner nongovernment organizations, such as the Community Centered Conservation (C3) Philippines, government agencies, such as the Department of Environment and Natural Resources, and partner institutions, including universities and research groups. The Tagbanua tribe protects the dugongs as they believe that gifts from nature must be taken cared of, Novero said. “There will be nothing else left to see by our future generation if the dugongs will be gone,” he added.

For Novero, it is both a privilege and responsibility for them, the Tagbanua tribe, to protect and conserve what they have, including the forests. “We don’t want to abuse what we have, we want to protect it as it protects and provides for us.”

Threat to extinction

“The population of this species is shrinking due to many factors,” Novero said. One of the factors is the loss of habitat and feeding grounds. An attempt to seaweed farming was held because it can disrupt and destroy the feeding grounds of the dugong. The dugong (Dugong dugon) is a mammal that eats seagrass. It is specifically categorized as the only marine herbivorous mammal and the only living representative of the once-diverse family Dugongidae. Its closest relative, the Stellar’s sea cow was hunted and became extinct in the 18th century. The dugong is largely dependent on seagrass and feeds on it. It is largely present in Indo-West Pacific region, which includes Australia, Indonesia and the Philippines. They occur in wide, shallow, protected areas, such as bays and mangrove channels, yet they are restricted in coastal habitats as they are threatened. For thousands of years, the dugong has been poached and hunted for meat and oil. According to the International Union for Conservation of Nature, the dugong is listed as vulnerable to extinction, while the Convention on International Trade in Endangered Species has resolved to limit or ban the trade of products derived from the dugong. “They are like people,” Novero said. “They care for their young ones extensively, get stressed when there’s too much disturbance of their environment, which sometimes causes their death, and are compassionate animals.” Along with the its slow rate of reproduction—with females giving birth only a few times during their life, and fertility and sexual maturity reaching only between 10 years to 17 years, and with a long lifespan of 70 years—the dugong is especially vulnerable to extinction.

Protection, conservation and sustainability through ecotourism

W ith t he he lp of C 3 Ph i l ippi nes, t he Ta gba nu a t r ibe g uarding the dugong-conservation area have been educated and trained on how to take care of this vulnerable creature.

“C3 Philippines have been instrumental in educating us on how to protect the dugong, and on how we can also benefit from it without harming it or destroying its habitat,” Novero said. The dugong ecotourism attraction started in March but, way before this date, tourists have already been flocking to see this creature. “We needed to limit our tourists to only 20 to 25 a day,” Novero explained. “We have a booking system where a tourist needs to book a day [earlier] in order to see the dugongs.” The Tagbanua tribe has a strict schedule. Tourists are only allowed to see the sea cows from 9 a.m. to 3 p.m. and walk-ins are not allowed. “This is to avoid them [dugongs] to get stressed, and so they can eat and rest normally without the interruption of humans.” Novero explained that if the dugongs are gone, the tribesmen’s livelihood would be affected, too, as many of them rely on the existence of the dugong. Besides a source of income through ecotourism, it is also a venue for other areas to be protected. “Marine-protected areas grew when the dugongs were finally conserved,” Novero added. Several areas around Calauit Island have been raised and established as protected areas, hence, they give the tribes more resources to fish for food and business. Not only that, C3 Philippines also initiated the establishment of many forest conservation areas after the dugong was declared as protected. Ginelle Jane Gacasan, who works for C3 Philippines at the Salvacion site, told the BusinessMirror that the Bogtong forest reserve has been created because “we believe that, whatever happens to the sea, where the dugong lives, is also affected by the disruptive activities of the mountains and the forest.” Which is why C3 Philippines, together with the Tagbanua tribesmen, have been supported by GIZ, a German development agency that provides support and services in the field of international development cooperation. The Tagbanuas volunteered as the protectors of the conserved areas, especially the forest reserve. Over 2,600 hectares of open woodlands and grasslands forest have been protected by an ordinance in Barangay Bogtong and Chewey. Endemic birds and wildlife are now protected and the tribes are pushing forward to declare their area as a national protected site.

ANDAN, Antique—Hopes are high for the conservation of both writhed-billed hornbills and the Visayan tarictic hornbills in Pandan, Antique. Rhea Santillan of the Philippine Initiative for Conservation of Environment and the People Inc. (Philincon) said that, in 2015 there were around 1,183 nest holes of both Visayan tarictic and writhed-billed hornbills have been found in Pandan. She said they had started conducting another inventory this year the results of which are expected to be released in the first quarter of 2018. The town of Pandan was included in the Northwest Panay Peninsula. It also included the towns of Nabas, Malay and Buruanga in nearby Aklan province and Libertad in Antique province. Both hornbills, especially the writhed-billed hornbills, are being considered as critically endangered on Panay and Negros islands. The writhed-billed hornbill is locally known as dulungan. In 2002 the Philincon only recorded 31 nest holes, while in 2006 around 502 nest holes were found.

The hornbills are being considered as the provincial bird of Antique. Since 2002 the Philincon has been in the forefront of protecting the hornbills from possible extinction. Their increase could be credited to the effective nest-protection scheme of the Philincon. Virgilio Sanchez of the Save Antique Movement said although the hornbills are increasing in number, threats against them— such as illegal hunting and poaching—continue in the province. “We have been hearing reports that residents are poaching these birds for food and money,” Sanchez said. Gianne Portaje, technical staff of the Protected Area Management and Biodiversity Conservation Unit of the Provincial Environment and Natural Resources Office in A k an, said they continue to keep an eye in the conservation of hornbills in the Northwest Panay Peninsula. “Our office has recorded the rescue of these hornbills from Boracay Island and in neighboring areas for several years now,” Portaje said. Besides in Pandan, it is also believed that there are also several hornbills existing in the Central Panay Mountain Range.

From brown to green: DENR battles environmental issues through biotech

s the research bureau of the Department of Environment and Natural Resources (DENR), the Ecosystems Research and Development Bureau (ERDB) conducts various researches to help protect and preserve the environment. The ERDB takes advantage of the plant-microorganism relationships in developing biofertilizer that are useful to produce quality planting materials.

Combatting deforestation

One of the problems the Philippines faces today is deforestation. The DENR has been exerting efforts to raise public awareness on the importance of the forests and trees in the environment. It has been also strictly implementing the policy on cutting trees and urging tree-planting, especially in degraded areas. To support the DENR in this endeavor, the ERDB has developed a biofertilizer called Hi-Q VAM 1. It is a fungus that attaches to the roots and serves as extension that helps plants better absorb water and makes plants healthier and immune to diseases. Hi-Q VAM 1 is applied only once on the seedlings. Once it penetrates the roots, the biofertilizer continues to multiply. The ERDB developed the technology to produce quality planting materials of indigenous forest trees that are used for re forestation, including the National Greening Program. Hi-Q VAM 1 can also be used in agricultural crops. The ERDB has been conducting technology forum on the use of the biofertilizer and attended by various people’s organizations (PO) from different parts of the country. Most composed of farmers, the POs are informed on the

importance of planting indigenous trees besides crops.

Clonal propagation for quality planting materials

It is important that the plants that used in rehabilitation sites are of good quality, thus, the ERDB implements clonal propagation. Clonal propagation is through stem cuttings from mother trees or trees that carry good characteristics. Stem cuttings are the vertically grown shoots after the mother tree was detopped. They are rooted in sterilized medium for two to four weeks and applied with Hi-Q VAM 1. Clonal propagation is another effort of the ERDB to produce quality planting materials for rehabilitation purposes.

Reviving degraded areas in mining sites

The DENR also faces the challenge of rehabilitating mining sites. The ERDB has conducted phytoremediation in Itogon, Benguet and Bagacay Mines in Hinabangan, Samar. Trees were planted in these mining areas to absorb heavy metals in the soil. Indigenous trees like narra, agoho, kupang, batino and Benguet pine were applied with Hi-Q VAM1. They were planted in mining areas and absorb the heavy metals in the ERDB research sites. There are currently trees growing in the former barren areas. As the DENR explores biotechnology, its uses and potentials in environmental protection and conservation are being discovered. The ERDB has been continuously e n g a gi n g i n va r i o u s re s e a rc h a c t i v i t i e s to p ro m o te n e w d i s cove ri e s to co n t r i b u te i n s u s t a i n a b l e d e ve l o p m e nt o f t h e co u nt r y.

Biodiversity Monday BusinessMirror

Asean Champions of Biodiversity Media Category 2014

Monday, November 20, 2017 A13

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

Ecotourism for wildlife conservation

By Jonathan L. Mayuga @jonlmayuga

“We’ve all heard about our carbon footprint, the negative impacts on the areas we visit. We’re now promoting the idea of our carbon handprint, the positive impacts enjoyed by the communities, wildlife and habitats we visit,” he said in a text message last Tuesday. “Yesterday, we dove with rare and endangered dugongs in Palawan. It was a fine example of wildlife-based ecotourism. We were briefed twice and were accompanied by a pair of Bantay Dugong to ensure we complied with dugong interaction regulations.” Yan said one of the guides was a local Tagbanua tribesman who was an amazing spotter and knew lots about dugong. “Part of the funds go back to the protection and conservation of Palawan’s dugong—so forking over a few hundred pesos actually felt more good than painful!”

ndowed with rich natural resources, white sandy beaches, pristine waters, astonishing landscapes surrounding inland water bodies and a variety of wildlife, the Philippines has the potential of pump priming the economy through ecotourism. According to the latest report from the Department of Tourism (DOT), the first seven months of the year yielded the country 3.93 million foreign tourists—a marked increase of 11.02 percent from the same period last year Visitor receipts from January to July 2017 hit some P179.86 billion, an increase of 21.07 percent from the same seven-month period in 2016. Clearly, the Philippines is taking the opportunity of generating the much-needed revenues from tourism while spurring economic activities in various parts of the country through ecotourism.

Manila Declaration

Recognizing the important role of migrator y w ild life in ac h iev ing globa l sust a inable development goals (SDGs), the recent 12th Conference of the Parties to the Convention on the Conser vation of Migrator y Species of Wild Animals (CMSCOP) held in the Philippines adopted a resolution recognizing the role of migrator y wildlife in achieving global sustainable Development Goals (SDGs). T he Manila Declaration, a resolution drafted and proposed by the Philippines, marked an important milestone in international efforts to protect migratory species and habitats critical to their survival. The resolution acknowledges the significant contribution of migratory wildlife to sustainable development, especially in the areas of agriculture, forestry, fisheries, tourism, energy, transport and trade.

Significant milestone

In a statement released by the Department of Environment and Natural Resources (DENR), Undersecretary Ernesto D. Adobo Jr. said the adoption of the Manila Declaration is a significant milestone in the global effort to protect migratory species as the resolution calls on the CMS Range States to develop national frameworks and implement relevant plans to achieve the goals of the convention, with a view of contributing to the achievement of the SDGs. The resolution also invited the private sector to engage in a dialogue to align the policies and objectives of the CMS, and recognized the crucial role of indigenous and local communities in the sustainable management of natural resources. Environment Undersecretary Juan Miguel T. Cuna, for his part, said the Manila Declaration is consistent with the SDGs set by the United Nations to ensure prosperity for mankind and protection of the planet.

Sustainable tourism and migratory species

Another Philippine-drafted resolution, this time on Sustainable Tourism and Migratory Species, was adopted by the 124 Range States. The resolution aims at understanding the effects of interactions brought about by tourism on migratory species, and managing

these activities according to the precautionary principle at the national level. The resolution urged the Range States to adopt appropriate measures, such as national action plans, regulations and codes of conduct and, if required, binding protocols or additional legal frameworks and legislation, to ensure that ecotourism activities do not have adverse effect on species anywhere within their migratory range. Among the resolution’s objectives is to encourage the Range States to develop appropriate guidelines for wildlife interaction—taking into account basic philosophies, such as tourism activities shall not inhibit the natural behavior and activity of migratory species nor adversely affect the associated habitat.

Candaba Swamp in Pampanga is an important staging and wintering area for ducks and other threatened waterbirds. As part of the East Asia-Pacific Migratory Flyway, the Philippines has 117 Important Bird Areas covering 32,302 square kilometers that act as refuge for as many as 115 globally threatened species of waterbirds. DENR web site

Bad practice

Migratory birds, ‘butanding,’ tarsiers

Besides showcasing its whitesand beaches, soaring mountains, awesome trails and breath-taking waterfalls, ecotourism in the Philippines means an opportunity for wildlife interaction. Bird-watching is a common tourist activity in the country, it being part of the East Asia-Australian flyway. There are six Ramsar Sites in the Philippines, which are recognized as wetlands of international importance. These are the Las Piñas-Parañaque Critical Habitat and Ecosystem Area, Naujan Lake National Park, Puerto Princesa Subterranean River National Park, Tubattaha Reefs Natural Park, Olango Island Wild life Sanctuary and the Agusan Marsh Wildlife Sanctuary. Besides bird-watching, the Philippines is known to promote interaction with the whale sha rk , loca l ly ca l led butanding, which was uplisted during the recent international wildlife conference. There is whale watching in Donsol, Sorsogon, and interaction with the species on Oslob Cebu. Bohol province also boasts of interaction with tarsier, which is endemic to the Philippines.

Tourism guideline

Director Theresa Mundita S. Lim of the DENR’s Biodiversity Management Bureau (BMB) admitted that there is a need to draft a guideline for wildlife interaction in the country. The DENR-BMB encourages resort owners to help protect and conserve the country’s threatened animal wildlife and avoid promoting captive wildlife. Lim said the resolution adopted during the wildlife conference encourages all signatories to the CMS, also called the Bonn Convention, to come up with proper guidelines in promoting wildlife interaction, including consideration of the carrying capacity of the ecosystem, or causing disruption that will alter the behavior of wild animals. Moreover, she added it is important for concerned local government units (LGUs) and other stakeholders to work together

Whale shark, also known as butanding Mau Victa

Black noddy in Tubbataha Reef Greeg Yan

to explore other tourist attractions to lessen the dependence on wildlife interaction, so as not to adversely affect the species being showcased by proponents of the tourism activities. “There should be alternative livelihood or other activities that will not affect the livelihood of the communities,” she said. Lim said wildlife interaction, such as the practice in Oslob, on a positive note, has led to the residents’ increased appreciation of the presence of whale shark, altering their behavior to “tolerating” it rather than “hunting” for food. “We really need to communicate and involve the communities and LGUs and other stakeholders to improve ecotourism practice, and translate these into policies for proper implementation,” Lim added.

For people, environment

What is sustainable tourism? Environmental activist Clemente Bautista said in its truest sense sustainable tourism is the promotion of the country’s beauty in terms of culture, history, economy and environment. “But in government terms, it is more of the commodification of our places and people,” Bautista told the BusinessMirror in a telephone interview last Tuesday. He lamented that ecotourism should benefit the communities in terms of jobs or livelihood, and not lead to their economic dislocation or displacement. “Such is the case of ecotourism which supposedly highlights our rich and beautiful environment, such as coastal and forest areas,” he added. However, he lamented that

tourism programs and projects of government in partnership with big business resulted in the displacement of communities, privatization of land and seas a nd deg rad at ion of t he countr y’s ecosystems. “Look at our experience in Puerto Galera in Mindoro and Boracay in Aklan. IPs [Indigenous people] like Mangyan and Ati, and the basic sectors like fishermen and peasant were displaced in their communities and land,” he said.

Good practice

Gregg Yan, Ocean Philippines d i re c tor of com mu n ic at ion s a nd B est A lter n at ives C a m paign founder, said ecotourism is simply tourism with positive environmental, economic and social impact.

Yan said wildlife-based ecotourism have its drawbacks. One of the most well-known, yet controversial, offerings is Oslob’s whale-shark program in Cebu, where thousands of tourists line up to have selfies taken with whale sharks while they were being fed, according to Yan. He said environmentalists are up in arms to stop the practice, but it can’t be denied that tourism has uplifted the lives of the townsfolk. “Feeding poses many potential problems,” Yan added. “The natural behavior of whale sharks is altered, forming a dependency on humans to augment their diet. Feeding and pollution from too many resorts could also overload an area with nutrients, causing plankton blooms—which are good for filter feeders like whale sharks but very bad for light-dependent creatures like the corals which create the world’s reefs.” “In time, local communities and visitors will see the advantages of ecotourism—an exchange where all parties—humans, animals and their habitats—are enriched,” he explained. Another bad tourism practice recently caught the attention of several environmental and conservation advocates who called the attention of the country’s top environment official. Vince Cinches, Oceans and Political campaigner of Greenpeace, Danny Ocampo of Rule of 2/3, and Ana Oposa, executive director of Save Philippine Seas, have urged Environment Secretary Roy A. Cimatu to facilitate the immediate release of caged sharks, rays and marine turtles in Sibadan Fish Cage, which is operating a seafood restaurant and resort at Port Lamon in the town of Hinatuan, Surigao del Sur. The DENR is conducting an investigation into the report. “The Philippine Marine Ecosystem is currently facing a crisis due to illegal, unregulated, unreported and destructive fishing, destructive land-based development and unsustainable tourism.… While only a few sharks and ray species are protected in the Philippines, it doesn’t mean that other activities that will lead to their demise should not be regulated or ceased,” they said. The caging of the marine wildlife for tourism attraction, they said “is a representative of a bigger problem hounding our seas and marine ecosystem due to unsustainable tourism.” “We hope this will lead to a bigger and sustained intervention to pursue responsible, sustainable and culturally sensitive tourism activities across the country for the benefit of all Filipinos. Protecting our marine ecosystem and the animals in it is important as ‘their future is our future,’” they added.

A14 Monday, November 20, 2017 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

Might makes right

erhaps more so than ever before is the question of a nation’s sovereignty balanced with its apparent obligation to the international community. We use the term “apparent obligation” because there is no clear definition or standard of what a country actually owes to that global community. An organization, like the United Nations was established as a forum where countries might find a venue to settle differences and disputes. The UN evolved into a “non-governmental organization” where the combined efforts of its members could be put to better use collectively rather than singularly. The World Health Organization and World Food Program come to mind. However, over decades the UN has tried to become some sort of almost-world government body with powers over individual nation states. Its legal powers are almost nonexistent, except to the extent that it members try to convince or bully other members into complying with want the majority of the members wants. In principle, all countries are created equal. In fact, that is far from a reality. The five states that the UN Charter of 1945 granted a permanent seat at the UN Security Council (UNSC) are China, France, Russia, the United Kingdom and the United States. Any one of these countries can veto any action that a majority vote of the full 15 members of the UNSC wishes to take. There are some people who believe when a nation like the Philippines joins in a global collegial body like the United Nations or a regional group, such as the Association of Southeast Asian Nation, willingly surrenders a piece of its sovereignty for the privileges and benefits of joining that group. President Duterte recently faced severe criticism for saying, “I was elected by the people of the Republic of the Philippines. I only answer to the people of the Republic of the Philippines.” This was in reference to comments from “foreigners” regarding the administration’s war on drugs. But that does not sound too much different from something that happened at the United Nations General Assembly this past week. United States Ambassador to the UN Nikki Haley said the following in a speech to the 193-member general assembly before it adopted a resolution calling for an end to the US economic embargo on Cuba. “This assembly does not have the power to end the US embargo. It is based in US law, which only the United States Congress can change.” Yet, the US wanted increased action against Venezuela as Haley said, “The crisis in Venezuela today poses a direct threat to international peace and security.” China and Russia would not even attend the meeting to discuss the issue. This past week, the Philippines voted against a draft UN Resolution on the human-rights situation involving Myanmar’s Muslim Rohingya people. Russia and China also voted against it along with Cambodia, Lao PDR and Vietnam. Indonesia, Malaysia and Brunei Darussalam—all Muslim majority countries—were in favor, while Singapore and Thailand abstained. Philippine Ambassador to the UN, Teddy Boy Locsin Jr., summed up the situation clearly and identified where the Philippines must balance its sovereignty in regard to regional interests versus global concerns. “A yes [vote] is divisive and will kill Asean.” The question of how far another nation or an organization of nations can go in forcing a sovereign country to change its actions is not going to be answered soon or easily. Since 2005

BusinessMirror A broader look at today’s business

A wise approach to December Atty. Jose Ferdinand M. Rojas II

RISING SUN

lot of people do not look forward to December because of the shopping crowd and the holiday traffic that it entails. Shopping for gifts could become a nightmare because of the long cashier lines, parking hassle and traffic problems. Booking a venue for Christmas parties is also a challenge—all the good ones are reserved early. The drive to and from parties is also an exercise in patience.

As we approach this festive and hectic month, it’s good to consider our options. Take shopping, for instance. E-commerce is enjoying immense popularity these days, especially at this time of year, because people simply don’t want to endure the crowd and the horrible traffic. E-commerce portals are making a killing: Statistics show that 1.5 percent of retail sales are from ecommerce, “with around 10 million e-commerce customers every day.”

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book now. Go online and search early because corporate parties and family gatherings are scheduled as early as September. There still might be good ones open at this time. For the most important part of Christmas—health and wellness—I would like to offer a Christmas fitness challenge to help us balance the indulgences of the season with some honest-to-goodness health rituals. In between all the parties, drinking, sweet gifts and holiday bingeing, it’s best not to lose track of our health and fitness goals. Here is a very simple 12 days to holiday health that you can start anytime from now until December, or even January!

Day 1—Take a 20-minute walk; brisk walking is best. Day 2—Drink the right amount of water for your body weight (formula is 0.6 ounce times body weight in pounds divided by 8=number of cups needed). Make it a habit, for best results. Day 3—No sugar day. Day 4 —Fifteen minutes of stretching, and then take the stairs at work. Day 5—Eat healthy day, which means no fried foods, no salty, fatty, sweet meals. Day 6—Spend 15 to 30 minutes in meditation. Day 7—No processed food today. Day 8—Spend time dancing, doing yoga or any fitness activity that you enjoy. Day 9—Pick a chore that lets you burn some calories. Day 10 — Something for the workaholics— take a seven-hour beauty sleep; why not make it eight hours? Day 11— Go outside. Biking, swimming and running are great outdoor activities for boosting health. Day 12—Spend a few minutes planning the next year and setting your fitness and health goals. It’s your reward for prioritizing your well-being during the holidays and approaching December wisely.

Medical tourism–the Philippines claim to fame!

✝ Ambassador Antonio L. Cabangon Chua Publisher

Entrepreneurs are looking at an increase this season—to the tune of 63 million customers in total! Shopping on a giant online portal is like going through 40 shopping malls with millions of products from various brands. A physical mall has about 600,000 products only—and it would take a lot of hours and physical effort to finish shopping. Those who are looking for venues for their Christmas get-togethers must be reminded that it is time to

Shopping on a giant online portal is like going through 40 shopping malls with millions of products from various brands. A physical mall has about 600,000 products only—and it would take a lot of hours and physical effort to finish shopping.

n a special report on medical tourism published by the Department of Tourism(DOT) in “Balikbayan”, the Philippines was ranked in 2015 as eighth among the top medical tourism destinations in the world, according to a list compiled by the International Healthcare Research Center and the Medical Tourism Association (MTA), a global nonprofit association for medical tourism and international patient industry which represents healthcare providers, governments, insurance companies, employers and other buyers of health care. The MTA index ranked the top 7 medical destinations, providing the most suitable economic, secure and cultural environment and acceptable health-care cost as follows: Canada (first), the United Kingdom (second), Israel (third), Singapore (fourth), Costa Rica (fifth), Italy (sixth) and Germany (seventh). Although the Philippines is ranked eighth, the DOT Director of Medical Travel and Wellness Tourism Cynthia C. Lazo expounds that the Philippines is the “rising epicenter of medical tourism.” Over $200 million is now generated from the medical tourism industry alone and continues to grow exponentially every year. To date, medical tourism in the Philippines cares to approximately

80,000 to 250,000 patients or clients annually, with 62 hospitals around the country now internationally accredited. Clients come from East Asia (China, Japan, Korea and Taiwan), Sri Lanka, the Pacific Islands (Guam, Palau, Marshall Islands and Micronesia), Australia, North and South America, Europe and the UK and the Gulf States, Filipino expats and overseas Filipino workers, likewise prefer to have their medical procedures done in the country. In a 2014 study by renowned medical tourism author, Ian Youngman, the global health and wellness tourism market is worth $438.6 billon. Philippine medical tourism was able to generate $66 million and $145 million for 2013

and 2014, respectively. Among the factors cited in the survey include competitive price of health and wellness services, the warm hospitality and compassion that Filipinos are known for, high standards of health care provided in internationally accredited hospitals by well-educated and English-speaking health-care professionals. The country’s proximity to major international hubs and its tropical climate also a boon to medical travelers, encouraging healing and relaxation after medical procedures. A cost analysis (Philippines versus the United States) indicate that the Philippines offers a wide range of high-quality services at just a fraction of the cost compared to those in North America and Europe—ranging upward of 50-percent to 80percent cheaper. Consider: Service

It puzzles me that, while foreigners have specificaly come to the Philippines to undergo medical treatments, still a considerable number of affluent Filipinos travel to the US, Europe and even Singapore for their medical, health-care and wellness concerns. Vestiges of colonial mentality? With sufficient government support and publicity, payment of the appropriate salaries to our doctors, nurses and medical practitioners to stop the brain drain, improvement in the state of the art health care that patients deser ve, investment in cutting-edge technolog y, the Philippines can and will be the destination place for medical treatment not only in Asia but worldwide. Proud to be Filipino!

Cost in USA (in US Dollar)

Cost in Philippines (in US Dollar)

Lasik (both eyes)

$4,000

$1,500+

Cataract Surgery (per eye)

$3,500

$1,300- $3,300

Face Lift

$11,000

$3,500-$4,500

Dental Implant

$2,500

$500-$600

Breast Implants

$6,400

$3,000-$3,500

Gastric ByPass

$25,000

$9,800+

Liposuction

$5,500

$3,000-$4,000

In Vitro Fertilization (IVF)

$12,400

$5,300+

Tummy Tuck

$8,000

$3,000-$4,000

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Opinion

In pursuit of quality audit

Availing of availability payments

BusinessMirror

By Alberto Agra

Dr. Conchita L. Manabat

PPP Lead

DEBIT CREDIT

any may still recall the Enron accounting scandal and how it precipitated the significant changes in the accounting and auditing landscape. As a consequence of the incident that had global impact, the Sarbanes-Oxley Act was passed in 2002 in the United States. This paved the way to the creation of the Public Company Accounting Oversight Board (PCAOB). The PCAOB (the Board) is the independent, quasigovernment oversight entity that has the statutory authority over the registration, standard-setting, monitoring and disciplinary actions for public accounting firms that audit public clients. It conducts periodic inspections of audit firms meant to restore and enhance public confidence in the auditing profession. The results of the periodic inspections are released as inspection brief aimed at establishing and reporting audit-quality indicators. Based on the latest Board staff-inspection brief released early in November this year, the inspectors examined parts of more than 780 public company audits in 2016, and reviewed the system of quality control at more than 190 firms. The brief highlighted three main areas where recurring deficiencies were most frequently found: a. Assessing and responding to risks of material misstatement; b. Auditing internal control over financial reporting; and c. Auditing accounting estimates, including fair-value measurements. Per report, the inspectors also looked at how firms are developing and using auditing software, and how engagement teams are coping with the risks of material misstatement and related controls associated with cybersecurity. According to PCAOB Director of registration and inspections, Helen Munter, “The number and significance of the recurring audit deficiencies that were identified suggests that some firms may need to consider whether additional or different steps need to be taken to improve and sustain audit quality.” The practice of accountancy in the Philippines is state-regulated in accordance with The Philippine Accountancy Act of 2004. Proposed amendments to the law were incorporated in a proposed bill filed with the 17th Congress. The significant revisions include the creation of the Accountancy Regulatory Office that may be considered the country’s version of the US PCAOB. The bill is

As we claim to be part of the global economy without borders and an active member of the aggrupation of regional nations called the Asean, we need to reflect and, hopefully, take immediate measures to have the appropriate framework and corresponding policies and procedures to gain that level of confidence on the quality of audit attributed to the US counterpart. not among those considered urgent, thus, it remains to be a filed bill. The gap between 2002 to date is an indication of how far behind the practice of accountancy in the country is visa-vis that of the US. As we claim to be part of the global economy without borders and an active member of the aggrupation of regional nations called the Asean, we need to reflect and, hopefully, take immediate measures to have the appropriate framework and corresponding policies and procedures to gain that level of confidence on the quality of audit attributed to the US counterpart. Dr. Conchita Manabat is the president of the Development Center for Finance. She is a member of the International Auditing and Assurance Standards Board Consultative Advisory Group (CAG) and the International Ethics Standards Board for Accountants CAG. She was once the chairman of the Board of Accountancy. A past chairman of the International Association of Financial Executives Institutes, she now serves as the chairman of the Advisory Council of the said organization. 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.

Continued from A1

ne such mechanism is “availability payments (AP).” AP is a long-term agreement with fixed periodic payments by a government agency or sponsor to the private-sector proponent (PSP) when the facility is completed and delivered to government. When the facility or service becomes available, the government or the sponsor pays, hence the name. Simply put—no facility, no AP.

Unlike in a full concession, the scope of services in an AP would exclude ridership, demand risks and fare collection. Contrasted with amortization, amortization is just paying the debt over time, regardless of whether the facility

or service is present. Since government pays for the facility, in an AP, there must be an appropriation. Under our system, the General Appropriations Act (GAA) is annually passed. But what if the GAA for a specific year does not

We are all connected Siegfred Bueno Mison, Esq.

THE PATRIOT

recently was a guest in a leadership empowerment seminar given to all pursers of the Philippine Airlines (PAL). Over cocktails, I came to learn that one of the flight pursers was actually a neighbor when I lived in my father’s quarters in Camp Aguinaldo; another was a high-school classmate of a first cousin; another was the niece of my father’s colleague in government; and one has a son who is currently my student in Ateneo Law School. When asked to give share some insights about leadership, I simply asked them to remember one word—connections.

As leaders in every flight where pursers are tasked to supervise up to 18 flight attendants and stewardesses, and are charged with the safety and convenience of up to 370 passengers depending on the size of the aircraft, I told the small group to make the effort of connecting with their subordinates, as well as their passengers when the situation warrants it. The so-called six degrees of separation really does exist, and the world is truly small. We will all encounter people who will, in some way, be connected to us. I told the pursers, then, that each and every passenger will have their stories to share that will somehow connect to

them, one way or another. These connections, in turn, create rapport and help establish a personal relationship needed to make things better for each other and for everyone else connected in that relationship. Good leaders who can truly connect with their subordinates open the gates toward a better and more open communication—a critical ingredient in relationship management. In the corporate setting, business leaders need to connect with their customers as much as with its employees. Accessibility fosters connection. PAL has taken all kinds of initiatives to keep employees engaged to promote participation

What to ask when decades-old harassment surfaces Megan McArdle

BLOOMBERG VIEW

few weeks ago, in a meditation on the allegations that have followed the Harvey Weinstein revelations, I described how we’d know if we’d come to a real watershed in our cultural tolerance of sexual abuse:

We’ll know we’ve made progress when women are willing to accuse men at the height of their powers, men who can hurt them for years to come—or benefit them in exchange for their silence. And when the people around those men move swiftly and without hesitation to deprive them of the power they’ve abused, even though they’ll be tainted by the scandal, even though they’ll suffer personal costs from the loss of an ally. The intervening weeks have unleashed a flood of accusations against younger men in the entertainment industry. But now we’ve come to the real test: Senator Al Franken has been accused of sexual harassment by Leeann Tweeden, a newscaster and former model. In 2006 on a United Service Organizations tour, Franken the

comedian was in a skit with Tweeden, and she says that during a rehearsal for a scene in which his character tries to kiss hers, Franken grabbed her and put his tongue in her mouth. Later he posed for a photo in which he appears to be groping her breasts while she’s asleep. (It’s not clear whether he did actually grope her; to my eyes, given the shadows under his hands, it looks as if he’s simply miming it.) To their credit, high-ranking Democrats are calling for an ethics investigation into one of their own. Given the underwhelming efforts Congress has made to investigate its troublemakers in the past, that seems like a definite sign of change. But what will happen after the ethics investigation? Will Franken reiterate the apology he’s already made, and be subject to a

toothless censure from the Senate? Since he’s not up for reelection for years, that doesn’t seem like much of a consequence. Alternatively, the Senate could move to expel Franken (or more realistically, make it clear that they’re going to expel him, and allow him to resign in advance of the formal separation). But Democrats will, understandably, be reluctant to shove out a political ally. And Republicans will probably be reluctant to go forward without the blessings of Democratic leadership, because they probably wouldn’t want to evict the suspect members of the GOP and defend those seats against Democrats. Which leads me to a question I’ve been asking myself over the last few weeks: As the accusations of sexual-harassment snowball, how ready are we for the consequences of rewriting the sexual rule book so drastically, all at once? When I ask this, I’m not thinking of people like Weinstein, whose behavior was very far over any line we might care to draw between “appropriate” and “inappropriate.” I’m thinking of circumstances more like the allegations against Franken. I’ve thought of the older man who pestered me to give him a birthday kiss—on the lips—when I was 17. The young man celebrating his birthday in a bar, who grabbed

So it seems worth asking whether we need some sort of statute of limitations on these kinds of offenses in our culture, not just in our laws. It would not be a blanket pardon for anyone who manages to go unreported through the five- or 10-year mark. It would be a mitigating factor in deciding how to respond in the present to actions from another time: autre temps, autre moeurs.

me and kissed me, at great length. (What is it with birthdays, anyway?) The many men I’ve worked with who liked to tell dirty jokes. (Let me hasten to add: Not colleagues in my current job!) I had mixed reactions to these attentions, from stammering and twisting my way out of the older man’s attempted embrace, to telling a few dirty jokes myself. How many of those guys would I want to see publicly shamed, fired and shunned? The answer, I’ve concluded, is none of them. These events, after all, took place at least two decades ago. In some cases, cultural norms really have changed. I’d be shocked now to hear a really dirty joke told at work, but in my early 20s, I don’t recall even being mildly nonplussed. I’m

Monday, November 20, 2017 A15

contain such item? Even a multi-year obligational authority issued by the Department of Budget and Management cannot bind or be used to compel or dictate upon Congress. The appropriations risk thus becomes directly proportional to the number of years of the project—the risk of nonappropriation is higher as the period wherein the AP must be made gets longer. So how can the apprehension of PSPs be assuaged? A performance undertaking or a promise by the Department of Finance (DOF) to pay the monetary obligations is one way. But the DOF may not be predisposed to this. There is an alternative. International financial institutions (IFIs) may provide the level of comfort for PSPs. IFIs may backstop APs by guaranteeing them. While this may involve an additional cost, in the long run, government incurs savings… and the people benefit from the much-needed social service facility. Financing costs by the PSP will

be lowered since the interest rates will go down due to greater certainty of repayment when backed by an IFI like the Asian Development Bank (ADB). The interest rate is just passed on to government. When the PSP gets better rates, government, effectively, pays less. This scheme ensures working capital for the PSP whereby the PSP delivers the service at a relatively lower cost because of mitigated risks. The AP is guaranteed by a letter of credit (LC) and that LC is guaranteed by the ADB. When government fails to pay, the ADB pays and a sovereign obligation is created. Verily, this does not create an additional obligation for government because in pursuing the PPP with APs, government already assumed that obligation. Appropriations risk is removed because a sovereign obligation is automatically appropriated. This columnist hopes that PPPs can avail themselves of this add-on. If and when, this should be disclosed.

in all activities and to solicit feedback from customers via e-mail, Facebook, web sites and all other communication channels. More recently, PAL appointed Jessica Abaya as the chief customer experience officer to oversee and analyze all customer information collected from surveys, complaints, feedback and wish lists. Since she has joined PAL a few years back, Abaya has been trying to understand the psyche of each passenger—how he thinks, what he wants and why. As her team is about to acquire a more sophisticated business-intelligence tool to have real-time monitoring of customer sentiments, Abaya is charged with consolidating all information gathered from all passenger connections or, as more known in the industry, customer touch points. With Abaya’s professional experience and organizational skills, I have seen a number of improvements, that PAL has introduced to increase the desired customer experience. And the ultimate objective of staying connected is to know the desires of the heart of travelers who fly PAL. In personal relationships, especially those families with relatives and friends overseas, there are many ways to stay connected. The desire to stay connected is brought about by the proposition that we were all made to love each other. Children were raised to love everyone in the

family because of blood connection. Partners and friends stay and hang out together because of chemistry or connection. And keeping in touch, by way of a phone call, an FB or IG post showing what’s keeping us busy, or a token gift is one of the simplest ways of showing our affection to our loved ones. In the process, these gestures will open doors for more love to flow all around. Connection allows for more love and vice versa. When we are connected, we allow ourselves to give and receive love. In the Bible, Acts 17:26-27 says, “From one man He made all the nations, that they should inhabit the whole earth; and He marked out their appointed times in history and the boundaries of their lands. God did this so that they would seek Him and, perhaps, reach out for Him and find Him, though He is not far from any one of us.” God is everywhere, and He has created men and women to stay connected, in love and through His spirit. His design was for families, friends and even strangers to have a way to express their love for each other. And as I recall, whenever we pray for someone, we are offering them the purest form of love. Connection, in whatever setting, is truly integral to harmony among people. We simply have to do our part to be and stay connected. It’s the best way to know and understand the desires of the heart.

not saying that the norms of those workplaces were right, but I am saying that the men who told them did not have mens rea: the knowledge that they were doing something wrong. And in general, it’s a bad idea to punish people for trespassing against rules they didn’t know. Or rules that didn’t exist. But even if they had known, I still wouldn’t be eager to out and punish them now. I did a lot of things decades ago that I regret, and I would hate to be held accountable for them now as if they’d happened last week. And since I hope to grow and change a bit in the coming decades, I’d also hate to be punished in some far tomorrow for the norms—or even the folly—of today. So it seems worth asking whether we need some sort of statute of limitations on these kinds of offenses in our culture, not just in our laws. It would not be a blanket pardon for anyone who manages to go unreported through the five- or 10-year mark. It would be a mitigating factor in deciding how to respond in the present to actions from another time: autre temps, autre moeurs. The question when confronted with reports of decades-old misdeeds is not “Would this guy be a creep if he did this today?” Better to ask: “Was he better or worse

than his environment?” And also: “Is there reason to believe he might have changed since then?” Some cads and criminals would fail all these tests. And if the offense was last year, or if the accused attempts to intimidate the victim or explain away the transgression, then the answer to those questions is probably “No.” But if a man shamefacedly confesses that he made a mistake decades ago, through bad understanding or bad judgment, just how far are we willing to go in shunning him? To the same extreme we would for a recent, remorseless, serial offender? If so, how many of us are willing to live under that standard—in which the sins of our distant past are ripe for litigation at any moment? In which the court of public opinion issues the same summary judgment immediately after every accusation? In which every defendant’s reputation and contributions are discarded into the same garbage heap, no matter what the age or nature of the offense? Victims have lived in fear and silence for too long, and it’s a tremendous achievement that more now feel able to speak out. But in dealing with these transgressions, our aim should not just be to shift the shoe to the other foot. It should be to build a world in which there is less fear to go around.

Congratulations to

President Rodrigo R. Duterte for leading the Filipino people in successfully hosting the

31st ASEAN SUMMIT and Related Meetings

+Special Celebration of ASEAN@50 with the Leaders

From

CABANGON FAMILY ALC Group of Companies