DEPARTMENT OF SCIENCE & TECHNOLOGY
PHILIPPINE STATISTICS AUTHORITY
2018 BANTOG DATA MEDIA AWARDS CHAMPION
BusinessMirror
www.businessmirror.com.ph
A broader look at today’s business n
Sunday, April 7, 2019 Vol. 14 No. 179
2018 EJAP JOURNALISM AWARDS
BUSINESS NEWS SOURCE OF THE YEAR
P25.00 nationwide | 2 sections 16 pages | 7 DAYS A WEEK
SKY’S THE LIMIT FOR TRUE ALLY PHL reaps benefits from Japan’s ‘redefinition’ of its pacifist role
I
By Rene Acosta
N a somewhat providential twist, the Philippines has become the principal beneficiary of Japan’s decision to redefine its pacifist role. Military assistance from Tokyo has begun to swamp the Armed Forces of the Philippines, which is currently in the process of building up its air and sea capabilities.
The Philippines, in fact, has been the first country in Southeast Asia to receive so-called excess defense articles from Tokyo since the amendment of its Self Defense Force Act that positioned its military for a wider and bigger role in the region’s security. The military equipment, unlike those coming from the country’s traditional allies, are given for free, thus freeing a slice in the AFP’s modernization money which could be used to procure other much-needed assets and equip-
ment for its capability upgrade.
Beefing up air power
TWO weeks ago, defense and military officials accepted the first delivery—out of the P5 billion worth of spare parts and maintenance equipment—that the Japanese Ministry of Defense donated for the Air Force’s fleet of Huey Combat utility helicopters. Defense Secretary Delfin N. Lorenzana, underscoring the importance of continued operations of the Hueys, said the helicopters
are tested and proven to be reliable air assets of the whole AFP in its campaign and operations to address various internal security threats. “I therefore see sustainable and continued operations of these vital air assets with these Japanese-donated UH-1H [Huey] spare parts and maintenance equipment which we could readily use whenever these ‘helicopter-workhorses’ need repairs or maintenance to keep them airworthy, and maintain their ready-for-mission sta-
tus,” he said. “On top of that, the UH-1Hs also play an important role for the nontraditional functions, such as search and rescue operations, and in missions for Humanitarian Assistance and Disaster Response or HADR,” he added. Lorenzana said the Hueys remain a pillar in the military’s internal security operations, which it must first hurdle before it could completely gear toward territorial defense—challenge best symbolized Continued on A2
US billionaires are living longer than ever, making heirs wait By Simone Foxman
W
Bloomberg News
HEN Tom Benson died last year at the age of 90, he left behind a sprawling empire that included two professional New Orleans sports teams and a group of car dealerships. Unfortunately for him, he spent some of the last years of his life squabbling with heirs over who would get what. The legal battle was marked by claims Benson wasn’t mentally competent when he made sweeping changes to his estate plans. His daughter and two grandchildren alleged he was acting at the direction of his third wife, Gayle Benson, 72, whom he married in 2004. Tom Benson rejected the claims, and a Louisiana court agreed. When all was settled, his wife ended up with the New Orleans Saints and the New Orleans Pelicans and
his daughter and two grandchildren got most of his other holdings. But it took a lot of time, a lot of lawyers—and presumably a lot of money. This kind of drawn-out fight for control is a risk faced by a growing number of longer-living American billionaires. At least 15 of them died last year, leaving behind assets collectively worth about $60 billion, including all the complex trappings that come with immense
PESO EXCHANGE RATES n US 52.1050
SUMNER REDSTONE
JONATHAN ALCORN/BLOOMBERG
wealth: wide-ranging business interests, properties, sports teams, yachts, planes—you name it. The number of US billionaires has grown swiftly of late. There were an estimated 747 of them in North America in 2017, up from 490 in 2010, according to a study. At the same time, long-term economic data suggest the 10-figure crowd and those just behind them
control ever-larger pieces of the economic pie. The wealthiest 1 percent control 37.2 percent of the country’s personal wealth, while the bottom 50 percent control nothing. And the rich are living longer than ever, adding years of asset accumulation at a time when income inequality has become a political Continued on A2
LIGHT MOMENT President Rodrigo Duterte shares a light moment with D. Edgard A.
Cabangon, chairman of the Aliw Media Group to which the BusinessMirror belongs, during the 31st annual convention of the Prosecutors’ League of the Philippines at the Citystate Asturias Hotel in Puerto Princesa, Palawan, on April 4, 2019. TOTO LOZANO/PPD
n JAPAN 0.4667 n UK 68.1481 n HK 6.6385 n CHINA 7.7661 n SINGAPORE 38.4567 n AUSTRALIA 37.0519 n EU 58.4722 n SAUDI ARABIA 13.8939
Source: BSP (April 5, 2019 )
NewsSunday BusinessMirror
A2 Sunday, April 7, 2019
www.businessmirror.com.ph
Sky’s the limit for true ally Continued from A1
by the West Philippine Sea issue. “For while our modest defense modernization program envisions our AFP to gradually transition itself from internal security operations focus toward the territorial defense mode, we cannot abandon our continuing vital defense role to maintain internal security, peace and stability that would propel continued socioeconomic growth in our country,” he said. Air Force chief Lt. Gen. Rozzano Briguez said the much-needed spare parts and maintenance equipment would ensure they could put back into service their fleet of combat utility helicopters that have been stalled in their hangars for quite some time.
Navy’s maritime patrol
IN March last year, Japan also completed its donation of five Beechcraft TC-90 naval reconnaissance and patrol aircraft, a big boost to the Philippine Navy’s patrol of the country’s vast maritime waters, specially the contentious West Philippine Sea. The aircraft were initially leased at a measly sum before the arrangement was turned into a grant and, finally, into a donation. Originally, the Navy eyed the aircraft in order to boost its maritime air surveillance and intelligence surveillance reconnaissance capabilities, given that it has no
permanent asset dedicated for this type of operations. The TC-90’s patrol range is double compared to those that are currently in the service of the Air Force that only have a maximum range of 300 kilometers.
Reliable ally
GIVEN Tokyo’s support and continued socioeconomic and security assistance, officials have dubbed Japan as a true and reliable ally of the country. “Truly, Japan is a true and ever-loyal close friend and partner ally of the Republic of the Philippines,” declared Lorenzana. Briguez, on the other hand, recalled that when Supertyphoon Yolanda struck the Visayas in 2013, Japan was among the first countries to be in the country, besides providing C-130 planes and Chinook helicopters to provide humanitarian assistance and disaster response to the stricken families. “Years after, they continued their assistance to encourage us to adopt the build-back-better concept aimed at rebuilding communities through proper land use, and by integrating disaster risk reduction on roads, bridges and infrastructure,” he said. Briguez said that through the Japan International Cooperation Agency (Jica), the Japanese government also distributed HADR kits and other assistance to areas
‘W
E, at the Philippine side, fully support the recent amendment of…Japan’s Self Defense Force Act that would allow the Japanese government and its Ministry of Defense the needed flexibilities and allowance for the Japanese military force to play a greater or increased role in maintaining peace and security in the Asia-Pacific region.”— Defense Secretary Delfin Lorenzana
threatened by the category-5 Typhoon Ruby when it entered the country in December 2014. The Air Force chief also said that Japan lined up a number of quick evacuation projects in support of the country’s rehabilitation and recovery efforts, and gave rafts and emergency drugs, and constructed classroom buildings and modular day-care centers. “There is no doubt that the letter of the mutual cooperation between Japan and the Philippines have been sustained, strengthened and institutionalized all over the years,” Briguez said.
Relaxation of pacifist stance
SINCE the Japanese military assistance would not have been possible without the amendment of Japan’s Self Defense Force Act, the Philippines earlier fully backed Tokyo in its initial bid to relax its pacifist role and encouraged it to be more active in the region’s security affairs “We, at the Philippine side, fully support the recent amendment of…Japan’s Self Defense Force Act that would allow the Japanese government and its Ministry of Defense the needed flexibilities and allowance for the Japanese military force to play a greater or increased role in maintaining peace and security in the Asia-Pacific region,” Lorenzana said. Lorenzana expressed hope
that the “increasing and growing” Philippines and Japanese defense alliance and close partnership would expand further as the geo-
political challenges in the region are evolving fast. “Our only option, then, is to collaborate and cooperate to pre-
serve our shared and common values for peace and freedom and to enhance our democratic way of life,” he said.
US billionaires are living longer than ever, making heirs wait Continued from A1
flashpoint. While cuts to estate and gift taxes are partly to blame for the concentration of wealth, another cause is a growing advisory industry aimed at making sure all that money goes exactly where the super rich want it to go. A New Orleans native, Tom Benson got his start selling cars, first in Louisiana and then Texas. In 1985 he was part of a group that bought the Saints franchise, now worth almost $2 billion, for $70.2 million. In 2012, he bought the Pelicans for $338 million. That franchise is now worth about $1 billion. The fight over his estate began playing out in 2014, after the billionaire, then 87, shifted future control of some assets from his daughter Renee and her children to his wife, Gayle Benson. The grandchildren, Rita and Ryan LeBlanc, had been involved in running parts of the family businesses. The dispute culminated in a mental competency hearing, where a New Orleans judge held that, despite “memory lapses,” Benson was able to manage his own affairs. Another prominent case involved a multibillionaire still among the living. Disputes over the competency of 95-year-old Sumner Redstone led to four years of litigation over his assets and business holdings. In January, Redstone settled a long-running legal fight with a former lover and confidante. The deal resolved all pending lawsuits between him and Manuela Herzer, who after a falling-out had sought to be reinstated as Redstone’s health-care agent. This triggered a cascade of litigation around his family’s control of the media empire, Redstone’s pay and his daughter Shari’s influence over his $3 billion fortune.
“Stepping into the shadows is something that older people don’t want to do.”
These days, the fortune of modern-day billionaires is “so large that it’s anticipated to last for not just children or grandchildren or even great-grandchildren, but great-great-grandchildren who these patriarchs will never know,” said Elizabeth Glasgow, a partner at Venable LLP who specializes in succession and wealth planning. And with that expectation comes the increased threat of litigation. So it’s not surprising that 45 percent of wealth management firms now offer estate and succession planning as primary services, up from 37 percent just a year ago, according to Cerulli Associates. The data provider estimated that demand for these capabilities will continue to snowball: Over the next 25 years, $68 trillion of wealth will be transferred in the US alone.
Most major banks now advertise “family office” and planning services for clients with more than $25 million in investable assets. Some offer perks for the superprivileged: Wells Fargo & Co.’s family office group has a historian to document family legacies, while Citigroup Inc. and Deutsche Bank AG boast summits that teach heirs how to invest in Silicon Valley. Longevity can be critical to the growth and long-term success of such family business interests, said Jonathan Flack, who leads PricewaterhouseCoopers’s US Family Business unit. In earlier eras, longer lifespans were driven by declining child mortality. In the past 50 years, the driver has been older people living longer. Men in the top one-fifth of America by income born in 1960 can on average expect to reach almost 89, seven years more than their equally wealthy brethren born in 1930. (Life expectancy for men in the bottom wealth quintile remained roughly stable at 76.) John Davis, founder of Cambridge Family Enterprise Group, said advising clients on how to successfully hand off power increasingly requires finding them a life beyond their business interests, given how long the rich are living. Davis, who teaches at the Massachusetts Institute of Technology’s Sloan School of Management, said he started paying more attention to the challenges raised by longevity about 15 years ago, when he realized several clients had three generations of adults involved in the family business. “The oldest generation was still around,” he said, “and not just still around, but still active and still wanting a role.” That could be a recipe for disaster. “Stepping into the shadows is something that older people don’t want to do. It’s kind of scary,” said Davis, who has made a career of advising ultra-rich families on how to transfer wealth. Data reflect this hesitancy: Just 18 percent of family businesses in the US said they have a robust succession plan, according to a 2019 survey from PwC. Flack tells clients that early planning can allow for a more efficient transfer: for example, asset owners who assign shares of a company to a trust earlier, at a lesser valuation, can avoid some taxes if the business appreciates. But Glasgow warns that such concerns must be balanced with the possibility that children or trustees might “jump the gun” to have them declared mentally incapacitated. “The state of diminished capacity isn’t going to be a bright line,” she explained, given the vagaries of such diseases as dementia or Alzheimer’s. In the past, an aging tycoon may have relied on a trustee or
family friend to make the call. Nowadays, the rich are planning for the possibility of a slow decline, making use of vehicles to transfer wealth or fund philanthropy while keeping control longer. And for protection, Glasgow said, the rich are introducing clauses in wills that require heirs to produce two, or even three, doctors who agree they are unfit to administer their own estate. One client stipulated that only a court could determine whether he was mentally incapacitated, she said.
“If you start early enough and do it long enough, you can move a lot of money without estate tax.”
Then there are the taxes— or, more specifically, minimizing them. Take the dynasty trust, an increasingly popular structure designed to move large amounts of money into a long-term vehicle that can pay future generations while limiting estate and generation-skipping taxes. Such vehicles allow the wealthy to pass chunks of their businesses to descendants tax-free, provided they fall under gift-tax exemptions—currently $22 million for a couple. Grantor Retained Annuity Trusts, or GRATs, can be particularly effective for passing on wealth when employed over decades, said Steve Antion, an attorney for Winston & Strawn LLP in Los Angeles. He advises clients to stash some of their more volatile existing investments in these structures for short periods, a minimum of 2 years. At the end of the term, the client gets her money back plus a statutory interest rate—3 percent annually as of April. An heir who is the beneficiary of such a trust gets everything else and doesn’t have to pay taxes on it. A $10-million initial investment that appreciates 25 percent over three years would return $11.02 million in principal and interest to its creator (assuming a stable interest rate). The rest of its gains, some $1.48 million, would be transferred to heirs tax-free. Once each GRAT expires, Antion advises clients to roll the investment into a new one, and repeat the process. The strategy is “amazingly effective and completely legal,” he said. “If you start early enough and do it long enough, you can move a lot of money without estate tax.” But even in the best of circumstances, balancing tax benefits with maintaining control of your assets is tricky. Those who pass on their wealth or business too early can find themselves on the sidelines sooner than they’d wanted. Still, doing so early and quietly might just avoid the kind of mess Tom Benson found himself in. Careful planning won’t cure all family drama, but it just might keep it out of the headlines.
The World BusinessMirror
www.businessmirror.com.ph
Sunday, April 7, 2019
A3
China hails ‘new consensus’ on trade, but ‘monumental’ deal not ready yet
C
hina and the US claimed progress in talks to end their trade war, with President Xi Jinping pushing for a rapid conclusion and President Donald J. Trump talking up prospects for a “monumental” agreement that may still be some weeks away.
Through a message passed to Trump via Vice Premier Liu He, Xi called for an early conclusion to negotiations and said that strategic leadership was needed to ensure healthy and stable US-China relations, the official X inhua News Agency said. Liu, who took part in talks this week in Washington, said the two sides had “reached new consensus on such important issues as the text” of a trade agreement, according to X inhua. Trump said any trade deal with China was probably still weeks away, although both sides were making progress on an accord that could be “very monumental.” “We have ways to go,” Trump told reporters at a meeting Thursday with Liu at the White House. “We are rounding the turn.” Liu met with the president after two days of talks between Chinese and American trade negotiators in Washington. Trump didn’t announce a summit with Xi—a meeting Trump has said is critical to finalizing an agreement. A month ago, Trump was touting the idea of a “signing summit” with Xi, with aides suggesting the meeting could
take place at Trump’s Mar-a-Lago resort in Florida. “If we have a deal, then we’ll have a summit,” Trump said. It might take four weeks to put together a framework for the deal and two weeks more to get the details on paper, he said. Trump’s remarks prolong the uncertainty over whether the world’s two-biggest economies can end their nine-month trade war, which has disrupted supply chains, whipsawed markets, and weighed on the world economy. International Monetary Fund Managing Director Christine Lagarde this week warned both sides to avoid the “self-inflicted” wound of a protracted trade conflict. “Trump is pressing China at the last stage of the talks, requiring it to offer greater concessions on market opening and strengthen the supervision over the implementation of promises,” said Li Yishuang, a Shanghai-based economist at China Securities Finance Co. who specializes in international trade. “But these issues are all at the implementation level. A deal in principle is still likely to be reached by the end of April.”
Trump backs off southern border shutdown but threatens auto tariffs
W
ASHINGTON—Abandoning his threat to immediately seal the southern border, President Donald J. Trump warned instead on Thursday that he’d slap tariffs on cars coming to the US from Mexico unless the Mexicans do more to stop the flow of migrants and drugs to the US. In his latest backtrack in recent days, Trump told reporters he would try the “less drastic measure” before resorting to his standing borderclosure threat. “Mexico understands that we’re going to close the border or I’m going to tariff the cars. I’ll do one or the other. And probably start off with the tariffs,” Trump said. He added later: “I don’t think we’ll ever have to close the border because the penalty of tariffs on cars coming into the United States from Mexico, at 25 percent, will be massive.” It was the latest, seemingly sudden attempt at new leverage by a president struggling to solve what his administration has called a border “crisis.” And it was a dramatic departure for Trump, who last week tweeted that he would close the border or large swaths of it this week unless Mexico immediately halted “all illegal immigration coming into the United States”—a seemingly impossible task. Trump said at the time that he was “not kidding around,” and his acting chief of staff Mick Mulvaney said in a television interview Sunday that it would take “something dramatic” for Trump not to close down the crossings. Since then, however, White House advisers, border city leaders and US economists have warned that such a move would have enormous economic consequences on both sides of the border, interrupting supply chains and boosting US consumer prices on everything from avocadoes to autos. Trump in recent days has also backtracked on his push for Republicans to again take on health care and surprised his own education secretary
by reversing a plan to ax federal aid for the Special Olympics. Those ac tions have only added to longstanding concerns about whether Trump’s words can be trusted. Trump, who has long said his unpredictability is one of his greatest negotiating assets, has also followed through with some of his most bombastic threats, including forcing the country’s longest-ever government shutdown over border funding. Trump had already appeared to be easing off his border threat earlier this week. Though he said Tuesday all options remained on the table, he shifted his goal posts, calling on Congress to pass immigration legislation to avert a closure and praising the Mexican government for doing more to apprehend migrants traveling through the country from Central America—though it’s unclear anything has changed. Marcelo Ebrard, Mexico’s foreign relations secretary, said Tuesday his government had not changed its policies. And on Thursday, Mexico’s ambassador to the US Martha Barcena told The Associated Press the country was working to make its own border “more orderly,” but “migration will never be stopped.” Jesus Seade, the Mexican undersecretary for North America, also brushed off the threat of new tariffs, saying officials were “not concerned” and noting the tariffs are not part of the United States-Mexico-Canada Trade Agreement (USMCA) that the countries have agreed to but not yet ratified. On Thursday, Trump also threatened tariffs if Mexico doesn’t halt the flow of illegal drugs across the border, saying he’d give the country “a one year warning” to comply. “But if in a year from now drugs continue to pour in we’re going to put tariffs on,” he said, adding: “I don’t play games.” As for concerns his actions might interfere with the trade deal he fought for, Trump said the border was “more important to me than the
issues are critical: Manufacturers in the United States have long been harmed by China’s unfair trade practices.” Tr ump said the remaining sticking points are intellectualproperty protection, tariffs and enforcement of the deal. He said he would discuss tariffs with Liu in their meeting but didn’t elaborate. “We’ve agreed to far more than we have left to agree to,” he said.
2025 commitments
US President Donald J. Trump, right, speaks as Liu He, China’s vice premier, listens during a meeting in the Oval Office of the White House in Washington, D.C., on Thursday. Trump said a deal to end the trade war between the US and China isn’t yet ready, but a “very monumental” agreement may be announced in about a month. Andrew Harrer/Bloomberg
S&P 500 Index futures and Treasury yields ticked higher, though moves were muted. Futures on the FTSE China A50
Index advanced in early trading Friday in Singapore, with Hong Kong and China’s markets closed for a holiday.
Trump is pressing China at the last stage of the talks, requiring it to offer greater concessions on market opening and strengthen the supervision over the implementation of promises. But these issues are all at the implementation level. A deal in principle is still likely to be reached by the end of April.”—Li
An administration official, who spoke on t he cond it ion of anonymity, said that talks would continue in Washington on Friday. There’s no timetable for further negotiations after that, the official said.
Not easy
“Nobody thought these talks would be easy, but as they enter these final stages, we’re encouraged by the continued progress towards detailed text on both structural and enforcement issues,” Linda Dempsey, a v ice president at the National Association of Manufacturers, said in an emailed statement. “Those
Dr afts of an ag reement to end a nearly yearlong trade war would give Beijing until 2025 to meet commitments on commod it y pu rc h a ses a nd a l low American companies to wholly own enterprises in the Asian nation, according to people familiar with the talks. Those would be binding pledges that could trigger US retaliation if unfulfilled, according to the people, who asked not to be identified because the talks are private. Other nonbinding promises China has offered to implement by 2029 wouldn’t be tied to potential US retaliation, they said, without elaborating. US Trade Representative Robert Lighthizer said on Thursday that there were still major issues to resolve in the agreement. Peter Navarro, a White House trade adviser, said that “the last mile of the marathon is actually the longest and the hardest.” The limited scope and time frame of the deal raises questions about whether it would reshape the longer-term economic relationship, rather than simply serve as a political win for Trump ahead of his reelection campaign. Bloomberg News
It’s all work, all play in Singapore if biz district plan gets go ahead
L
iving where you work and play may not seem like the ideal balance in terms of escaping the grind, but it’s a key plank of Singapore’s vision for its central business district. Like many cities’ financial centers, Singapore’s is bustling by day and close to deserted during a weekend. The government hopes to change that and laid out details of how it aims to go about it in an urban draft plan released last month. Chief among the proposals is increasing the number of residential developments and hotels by encouraging firms to convert existing office space. One suggestion involves boosting buildings’ socalled plot ratios—the higher the plot ratio, the more subdivisions of floor space that are allowed. These incentives will specifically target older-style buildings around central areas, such as Anson Road, Cecil Street, Shenton Way and Tanjong Pagar. That could prove a boon for some developers, especially those with low debt. They’d be in a prime position to participate in any auctions for land in the CBD, according to Jonathan Koh, an analyst at UOB Kay Hian Pte. His top picks are CapitaLand Ltd. and City Developments Ltd., whose building known as The Arcade is particularly old and in need of restoration. “Urban regeneration is a journey that Singapore needs to take to emulate the success of cosmopolitan hubs like Manhattan, London and Shanghai,” said Moray
Commercial buildings in the central business district of Singapore Brent Lewin/Bloomberg
Armstrong, managing director of CBRE Group Inc. in Singapore. “We’re excited that some of the older buildings are now part of the plans to revitalize the CBD.” It could unlock a lot of value by allowing developers to breathe new life into their obsolete office stock, he said. The conversion of office space into hotel rooms or serviced apartments could also help alleviate the shortage in the hospitality sector with the current pipeline of hotel rooms not expected to meet the predicted rise in tourists. The draft master plan, under the remit of Singapore’s Minister for National Development, Lawrence Wong, also includes a proposal to move more facilities like storage and utilities underground in order to free up
space for living. An increase in the number of green spaces like parks and park connectors is on the agenda too. It’s hoped that in future, more than 90 percent of households will be within walking distance of a park. Public feedback can be submitted by April 25. It’s not as if there isn’t any apartment living in Singapore’s CBD currently. W hen the Mar ina Bay f inancia l d istr ict— often referred to as the city’s second dow ntow n—was built around seven years ago, with it came luxur y apartments, including T he Sail and Marina Bay Suites. Other central unit blocks like One Shenton Way and V on Shenton have bars, restaurants and retail stores clustered around their base.
But Cushman & Wakefield Plc’s head of research for Singapore, Christine Li, writing an opinion column in a local newspaper, noted that “families shun this neighborhood, due to the lack of amenities, childcare and school options for young children. The target pool of residents remains mostly expatriates, singles and dual income nokids couples.” The advent of more homes in the city could also benefit office landlords, such as CapitaLand Commercial Trust and Keppel REIT, as the redevelopment of older office buildings into hotels or apartments reduces the supply of available space. CCT could look to redevelop the HSBC Building at 21 Collyer Quay while Keppel REIT could redevelop Bugis Junction Towers, UOB Kay Hian’s Koh said. P r i me of f ice rent s i n Si ngap ore a re a l re a d y t he h i g he s t i n a d e c a d e , pre l i m i n a r y e s t i m at e s f rom Jone s L a n g L a S a l le I nc . showe d l a st mont h . T he av e r a ge mont h l y re nt of Grade A C BD of f ice s pace rose 3.7 percent to S$10.63 ($7. 8 5) per squ a re foot i n t he qu a r ter e nd e d M a rc h 31 v e r s u s t he pre v iou s t h re e mont h s . “In land-scarce Singapore, we can’t afford to have entire precincts dedicated to a single usage defined by official working hours,” CBRE’s Armstrong said. “Specific initiatives are needed to inject more vibrancy and draw crowds beyond working hours.” Bloomberg News
A4
The World BusinessMirror
Sunday, April 7, 2019
Libya showdown looms after Haftar orders troops to advance on Tripoli
L
ibyan strongman Khalifa Haftar ordered his forces on Thursday to advance on the capital, threatening a major escalation in violence that could reshape the country’s political map and upend plans for a negotiated settlement to its conflict. “We hear your call, Tripoli,” the commander told his selfstyled Libyan National Army, according to recording of a speech he gave to troops. “It is now the time for the great victory. March forward.” Haftar, whose stronghold is in Libya’s east, urged fighters to show restraint and not fire at anyone who doesn’t raise a weapon at them. Underscoring the seriousness of the escalation, the internationally recognized Tripoli government of Prime Minister Fayez alSarraj ordered its forces to mobilize earlier in the day and approved the use of air strikes if necessary to counter any offensive. “It’s been clear for a long time that Haftar’s ambition is to be leader of Libya,” said Crispin Hawes, founder of the Idrisi Advisors consultancy in London. “He needs the institutions that control the money,” namely the National Oil Corp. and the central bank. Both are based in Tripoli. T he c a mp a i g n m a r k s t he boldest advance yet by Haftar’s
LNA, the countr y’s most organized militar y force. Internationa l powers have appea led to both sides to avert an armed showdow n t h at cou ld rat t le global oil markets and sow further chaos in a divided countr y already struggling to defeat Islamic State and stem the f low of migrants toward Europe. The troop movements also coincided with the arrival in Libya of the United Nations SecretaryGeneral Antonio Guterres. The LNA’s spokesman, Ahmed al-Mismari, said that Tripoli residents would be safe and urged all to surrender their weapons. “This fight isn’t between Libyans,” he said in a televised press conference, urging the militias operating
Six minutes to disaster: Ethiopian Air pilots battled Boeing 737 Max
T
Antonio Guterres, secretary-general of the United Nations, speaks during the UN General Assembly meeting in New York on Tuesday. Jeenah Moon/Bloomberg
in the capital to surrender their weapons. “it’s between Libyans and terrorists.” His comments came hours after Haftar’s forces claimed they had taken control of Ghar yan, a
It’s been clear for a long time that Haftar’s ambition is to be leader of Libya. He needs the institutions that control the money.”—Hawes
city about 100 kilometers south of the capital. That assertion could not be independently verified, but his push toward Tripoli has been going on for weeks. The buildup suggested that Haftar would either make a concerted drive to seize the capital or at least strengthen his bargaining position ahead of a UN-sponsored conference on April 14 aimed at taking steps to unify the country. The LNA said he had moved to its control center for western operations. The developments cast a somber backdrop for Guterres’s visit. In Tripoli, he renewed a call for calm, and told reporters that there could be no militar y solution to the countr y’s conf lict. A l-Mismari, looking to debunk specu l at ion t hat Ha f ta r was making a grab for power, said the LNA was supportive of the upcoming conference. Since a the North Atlantic Treaty Organization-backed war ended Muammar Qaddafi’s 42year rule in 2011, the Organization of the Petroleum Exporting Countries member Libya has been carved up among militias, with rival administrations eventually emerging in the east and Tripoli. Though it sits on Africa’s largest proven reserves of crude, infighting has repeatedly interrupted oil shipments and production, hitting the economy and roiling global oil markets. Haftar has steadily expanded his hold to most of the country, including southern oil fields, in what he says is a mission to combat “terrorism.” A military drive toward the northwest—home to most of Libya’s population—would be much harder. While better organized than rivals, Haftar’s forces are a disparate collection of moderatelytrained troops and guns-for-hire. They could face more determined opposition around Tripoli as well as Misrata and Sirte, where local militias jealously guard their hard-won autonomy. The militia from the port city of Misrata said it would back Sarraj’s forces. The latest move reflects one of two possibilities, Hawes said. Either Haftar is serious in taking Tripoli militarily, or he is trying to sufficiently intimidate Sarraj’s government “to force it to compromise and essentially allow him to be installed as the effective government of Libya.” “Either way, I think the threat is the most important thing at the moment,”said Hawes. Bloomberg News
Editor: Angel R. Calso
he alarms started sounding just seconds after Ethiopian Airlines Flight 302 took off on March 10 from Addis Ababa with 157 people on board. As speed and altitude readings started going hay wire, a device known as a stick shaker activated on the left side of the cockpit, where the captain sits. The mechanism makes a loud noise and rattles a pilot ’s control column to warn of an impending aerodynamic stall. But the Boeing Co. 737 Max wasn’t about to stall. Instead, a computer was getting erroneous readings from a sensor mounted like a weather vane on the jet’s nose. The malfunction triggered an antistall feature that forced the plane into a dive—the same system that was implicated in a crash less than five months before in Indonesia that killed 189 people. To counteract it, the Ethiopian Airlines pilots responded with at least some of the steps that Boeing and the US Federal Aviation Administration (FAA) recommended after the first accident. But amid a chorus of confusing alarms, they also made a critical oversight as they struggled for control, according to three pilots with experience in accident investigations: They left the engines set nearly to maximum. “The thrust was full bore the whole way,” said Roger Cox, a former accident investigator at the National Transportation Safety Board, who flew earlier models of the 737 while working as an airline pilot. “That is extremely curious.” Ethiopian Transport Minister Dagmawit Moges said in a news conference on Thursday that the pilots followed proper procedures issued after the October crash of a Lion Air jet. She recommended that Boeing review its flightcontrol system. Aviation authorities should verify that the issues have been adequately addressed “before the release of the aircraft to operations,” she said. Ethiopian safety officials stopped short of saying the plane needs a redesign. That helped boost Boeing’s shares 2.9 percent to $395.86 at the close in New York, paring the decline since last month’s crash to 6.3 percent. Still, the two disasters in five months have pushed Boeing into one of the biggest crises in its century-long history. The crash in Ethiopia resulted in the worldwide grounding of the 737 Max, the revamped version of a plane model that accounts for a third of Boeing’s operating profit. The accidents also prompted multiple investigations and reviews— including a criminal probe led by the US Justice Department—of how US regulators certified the flawed antistall system, known as MCAS. The groundings are piling pressure on Boeing to come up with a fix that will keep pilots from having to make such complicated, split-second decisions to keep the 737 Max aloft. The company is redesigning its software and expects to complete the work within weeks. Among other changes, the update will keep the safety system from kicking in when only one of the sensors detects a stall. “We at Boeing are sorry for the lives lost in the recent 737 Max accidents,” CEO Dennis Muilenburg said in a video. The Chicago-based planemaker blamed the accident on “a chain of events” and acknowledged the sensor malfunction.
Near-maximum thrust At near-maximum thrust, the plane became more difficult to fly, multiplying the problems created by the flaw in the 737 Max’s software, according to pilots who reviewed a preliminary report issued on Thursday by Ethiopia’s Aircraft Accident Investigation Bureau. High speed also made it impossible to recover in the final seconds when the plane’s nose pointed downward into their final, high-speed dive. “They exacerbated it,” said Jeffrey Guzzetti, the former director of the FAA’s Accident Investigation Division. The Ethiopian report clearly showed that MCAS—the Maneuvering Characteristics Augmentation System, a safety measure added to the new plane to prevent it from dangerous stalls—had activated multiple times. That was similar to the Lion Air crash. Sensors in the aircraft that report how high its nose is pointed relative to oncoming air varied by almost 60 degrees. One of the “angle-of-attack” gauges read 15.3 degrees, likely an accurate reading for a plane taking off. The other erroneously read 74.5 degrees—
which would suggest a plane pointing almost straight skyward.
Lost control Even though pilots took at least some of the steps recommended by Boeing and the FAA to counteract MCAS, they were confused and ultimately lost control, according to the report. “As pilots have told us, erroneous activation of the MCAS function can add to what is already a high workload environment,” Muilenburg said in his statement. “It’s our responsibility to eliminate this risk. We own it and we know how to do it.” Every plane crash typically involves multiple contributors, and the detailed Ethiopian report chronicles many factors that occurred over a matter of minutes leading to the accident. “Everyone can talk about it from a desk, but when you see it happening it’s another thing,” said Dennis Tajer, a spokesman for the Allied Pilots Association at American Airlines. “What steps were taken, what steps were missed? Those are all things we’re going to be looking at for several weeks.” What Bloomberg Intelligence says “Boeing may have to pay about $1 billion to settle the multiple wrongful-death lawsuits filed against it on behalf of victims of the Lion Air and Ethiopian Airlines 737 Max 8 crashes.” Pilots interviewed by Bloomberg didn’t agree completely about the factors. Some took issue with Ethiopia’s transport minister, saying the Ethiopian Airlines pilots had actually failed to properly follow the procedures. Other pilots said the flight crew’s actions were understandable given the chaotic situation. But they all agreed that the speed was critical. The plane took off at 94 percent of full power, according to the report. That is normal for liftoff, but pilots then typically pull back the power soon afterward. Even though the captain called for setting the speed at 238 knots, or 274 miles per hour, about a minute after takeoff, the engine thrust remained at the same level for the entire short flight, according to the report. Before it picked up speed in its final dive, the plane was flying as fast as 365 knots, or 420 miles an hour—almost twice the usual top speed at that low altitude. In addition to the multiple warnings prompted by the MCAS failure, the pilots were also getting audible alerts indicating they had exceeded the safe flying speed, according to the report. The Ethiopian crew followed one important step required to deal with an MCAS failure when they shut off power to the motor the system uses to automatically drive down the nose, according to the report. However, at the high speed at which they were flying, it became much harder to adjust the plane’s pitch manually, said John Cox, president of Safety Operating Systems and a former airline pilot.
Control column For more than two minutes during the flight with the trim system powered off, the crew had to apply strong pressure to their control column to continue flying, according to the report. Normally, pilots would adjust the wing at the tail of the plane to make the nose point upwards and reduce that pressure. During that time, the captain asked the copilot to try making adjustments—known as trimming—manually. “The first officer replied that it is not working,” according to the report. The two wheels that pilots turn by hand to trim would have been “very hard to move or impossible” at that speed, John Cox said. While it’s not clear from the report exactly what steps the pilots took, their struggles to keep the plane climbing apparently led them to switch power back on to the trim system. About 30 seconds before they crashed, it was activated by the pilots to slightly raise the nose. Five seconds later, MCAS engaged again, once more pushing down the nose. At that speed, they couldn’t overcome the dive using their control column alone, according to John Cox and Guzzetti. For reasons that haven’t been explained, they didn’t try to also trim the plane using switches on their control yokes. The plane eventually pointed down by 40 degrees and the plane reached speeds of 575 miles per hour. “You can’t read the transcript and not put yourself in the cockpit,” Tajer, of the Allied Pilots Association, said. “Every honest pilot says, I could see me right there, doing that, even if it was not a good thing, or saying, yeah that makes sense.” Bloomberg News
Science
BusinessMirror
Editor: Lyn Resurreccion • www.businessmirror.com.ph
Sunday
Sunday, April 7, 2019
A5
US experts reviewing low-carb, other diets for new guidelines
N Humor separates humans from robots The humanoid robot “Alter” on display at the National Museum of Emerging Science and Innovation in Tokyo on August 1, 2016. Understanding humor may be one of the last things that separates humans from ever smarter machines, computer scientists and linguists say. AP/Koji Sasahara
Senior-high students develop Internet-based fire-alarm system
Team Project FLAME composed of Adrian Robert Doroteo, Alec Denji Santos, Emmanuel Freeman Paloma, Darwyn James Goling and Jacob Martin Manguiat, with Engr. Ericson Dimaunahan as mentor. S&T Media Service
S
enior h igh- sc hool st udents from Manila have developed an Internet-based fire-alarm system that can notify your phone if a fire breaks out in your home. Developed by students from the Mapua Science High School, the alarm called Project FLAME, for Fire Luminosity and Multisensory Equipment, uses heatsignature mapping and a multisensor system to detect if there is a fire and notify the homeowner through an app. Funded under the Young Innovators Program (YIP) of the Department of Science and Technolog y-Philippine Council for Industry, Energy and Emerging Technology Research and Development (DOST-PCIEERD), Project FLAME sought to reduce the number of casualties and properties destroyed by fire by providing a faster and reliable information to authorities. The students used a thermalimaging camera, current and gas sensors, which were connected to the Internet through which data output came from their developed algorithm. Using the Internet of Things technology, the developed system is able to monitor heat irregularities and other fire hazards using video-image analysis and create an accurate early-detection system. With its double-trigger feature, accuracy is secured because it will only alarm when a heat irregularity is shown in the heat map and a fire-hazard sensor is triggered. Connected with the equipment is a mobile application that allows data to be viewed from an Android device via an Arduino Bluetooth module. Through the app, the user shall be notified of fire-hazard alerts, which shall also be sent to the Bureau of Fire Protection (BFP) for a faster fire-incident response. Unlike existing fire systems, FLAME is capable of sensing multiple fire hazards and prevents false alarms by autonomously analyzing the heat signatures shown in the heat map.
The device will not only increase the efficiency of fire prevention but will also improve the reliability and response time of firemen through its alert system. DOST-PCIEERD Executive Director Dr. Enrico C. Paringit is optimistic that the system the students developed can be replicated to a larger scale and be adopted as well by government authorities and help in mitigating fire disasters. “This spark of ingenuity by our young students from Manila shows that we have a bright future for our scientific community. DOSTPCIEERD will be front and center in stoking the flames of innovation in the hearts and minds of the youth through the YIP,” he said. Under the YIP, student groups from high school to college, composed of three to 10 members, and aged 30 years old and below, get a grant of up to P1 million for their research, provided it is aligned with DOST-PCIEERD’s sectoral priority areas, or with the Harmonized National Research and Development Agenda. Project FLAME team leader Alec Denji Santos said the increase in fire incidents yearly ignited their curiosity to look for ways on how it can be mitigated. “During our Disaster Risk Reduction Management class, we saw the trend of fire incidents in the country, which is increasing every year. This caught our attention thinking about what we can do about this alarming situation. Using our knowledge in our own fields of expertise, we developed Project FLAME,” he said. Santos said they support the BFP’s thrust in preventing fire disasters through immediate and timely responses to fire alarms. “Project FLAME shares the same goal with the BFP that is to save lives and protect properties. It does much the same with accurate early detection, an automatic alert system for both fire extinct victims and fire authorities and a tool for immediate mitigation and investigation,” Santos said. S&T Media Service
EW YORK—With ketofriendly recipes sweeping social media, some followers of low-carb eating are hoping for a nod of approval in the upcoming US dietary guidelines that advise Americans on what to eat.
It may seem minor, but backers say low-carb’s inclusion could influence nutrition advice that doctors give and help shape government food programs like school lunches. Currently, the guidelines cite the Mediterranean, vegetarian and other diets as examples of healthy eating. “The main point is to get away from a one-size-fits-all diet,” said Nina Teicholz, who has written about low-carb diets. Last year, US health officials said low-carb diets would be reviewed along with other eating styles for the 2020 update to the guidelines. Backers are hopeful because the panel of experts selected to review the evidence includes members nominated by Atkins Nutritionals and a beef industry group. The group had its first meeting last week and is expected to issue a report to help shape the guidelines by next year. Low carb’s consideration comes amid skepticism of nutrition research for producing confusing
advice. Low-carb supporters say rising obesity rates show conventional wisdom about nutrition, reflected in the guidelines, doesn’t work for everyone. Some nutrition experts caution that evidence for low-carb diets is new, and that it’s unclear what the long-term effects might be. They say criticism of the guidelines is overblown, and blame the food industry for distorting messages to market low-fat snacks full of sugar and massive portions. They note the guidelines have cautioned against sugar since they were introduced in 1980, and that key recommendations have been largely consistent and remain sound. Low-carb diets generally limit foods like bread, pasta and sugar to less than 30 percent of calories, or around 750 calories for someone eating 2,500 calories a day. The idea of restricting carbohydrates has been around for decades, and many remember the Atkins craze. The ketogenic diet has been used to treat people with epilepsy
Steaks on a grill at a restaurant in New York in November 2018. The idea behind the low-carb diet is that the body enters a ketogenic, fat-burning state when it runs out of the blood sugar that’s fueled by carbs. Still, many nutrition experts say sticking to a low-carb diet is hard, and not everyone is convinced it should be added to the dietary guidelines. AP/Mary Altaffer
and has resurfaced as a very lowcarb diet embraced by celebrities. Charles Garrison, a mortgage officer in Florida, decided to try the keto diet, including food like waffles made with almond flour. “I don’t plan on being super strict about it forever,” he said. Low-carb diets can work well for people with type 2 diabetes, who are more sensitive to carbohydrates. But the benefits of low-carb can also be overblown, and people still have to make sure their overall diet is healthy, said Kevin Hall of the National Institute of Diabetes and Digestive and Kidney Diseases. Some nutrition experts say sticking to low-carb diets can be hard, and that people should make changes that can last. Marion Nestle, a nutrition
researcher who helped write the 1995 guidelines, said she prefers guidance that encourages healthy habits, such as the types of food to eat or limit. “People don’t eat nutrients, they eat food,” she said. Adding low-carb diets could further muddle messages. The guidelines, now more than 120 pages, also advise people to limit the saturated fat commonly found in meat and butter—foods many link with low-carb diets. Instead of adding another diet to the mix, simplifying the guidelines would be more useful, said Stanford University health policy researcher John Ioannidis. “If we eat more, that will make us obese. That’s 100-percent correct,” he said. AP
Students are shown as they are taking the 2019 DOST-SEI Undergraduate S&T Scholarships examination at the Philippine Science High School-Main Campus in Quezon City on October 21, 2018. DOST-SEI photo
DOST-SEI scholarships hit new record with 9,852 S&T qualifiers
Q
ualifiers to the Department of Science and Technology-Science Education Institute (DOST-SEI) Scholarship Programs reached yet another all-time high as 9,852 graduating high-school students clinch a slot in the country’s premier science scholarship programs. This year’s qualifiers breached the 8,994 mark of last year’s passers, up by 10 percent, a record for the scholarship program, which started in 1958. Out of the total number of passers, 5,819 qualified as scholars under the Republic Act 7687 Scholarship Program for academically talented students who belong to economically disadvantaged families; while 4,033 top-ranking examinees passed under the DOSTSEI Merit Scholarship Program. The 2019 DOST-SEI Undergraduate Scholarship Examination, which
was held on October 21, 2018, in 290 test centers nationwide hit a record-breaking of 73,712 total number of examinees. Dr. Josette T. Biyo, DOST-SEI director, said that DOST scholarship programs will provide greater opportunity to students as they pursue a college science degree, especially to those who are hard up in life. “The scholarship will certainly allow the students to pursue their dreams in their desired fields in science, technology, engineering and mathematics in leading universities and colleges and will ultimately lead them to become key players in the country’s development once they practice their professions four or five years from now,” Biyo said. “We are hopeful that these qualifiers will soon help us in creating
S&T-based solutions to our pressing national concerns,” Biyo added. The new S&T scholars will receive monthly stipend of 7,000 across all disciplines. They are also entitled to tuition subsidy up to 40,000 per academic year; book allowance; MS/PE clothing allowance (one-time only); one economy-class round trip fare per year for those studying outside of their home province; and group accident insurance. The scholarship qualifiers must enroll in any of the University of the Philippines’s campuses, in state universities and colleges, or private higher-education institutions recognized by the Commission on Higher Education as Centers of Excellence or Centers of Development, or with Federation of Accrediting Agencies of the Philippines Level III accreditation
for the S&T priority programs. The list of priority S&T programs can be found in the SEI web site. DOST-SEI scholars are required to render service in the country along their fields of specialization after graduation for a period equivalent to the number of years they enjoyed the scholarship as a return service. SEI maintains that this strategy allows the country’s industries to have “the best minds” to do value-added services and products. “As early as now, we welcome these new scholars in the S&T community,” Biyo said. “We are optimistic that they are more than qualified to be the experts that will lead this nation toward the development we always hoped for.” The official list of qualifiers to the 2019 DOST-SEI Undergraduate Scholarships Program is posted on www.sei.dost.gov.ph.
Faith A6 Sunday, April 7, 2019
Sunday
www.businessmirror.com.ph • Editor: Lyn Resurreccion
Pope: Women have ‘legitimate claims’ for justice, equality
V
ATICAN CITY—Pope Francis said in a document released this week that women have “legitimate claims” to seek more equality in the Catholic Church, but he stopped short of endorsing recent calls from his own bishops to give women leadership roles. In the text, Francis also told young adults they should try to help priests at risk for sexually abusing minors in what a Vatican official said was a great act of trust the pope has for today’s youth to help “priests in difficulty.” Francis issued the document, known as an apostolic exhortation, in response to an October 2018 meeting of the world’s bishops on better ministering to today’s young Catholics. The synod took place against the Church ’s clergy sex-abuse crisis and included demands for greater women’s rights. The bishops’ final recommendations called the need for women to hold positions of responsibility and decision-making in the church “a duty of justice.” In the new document reflecting at length on the October meeting, Francis did not echo that sweeping conclusion. Instead, he wrote that a church that listens to young people must be attentive to women’s “legitimate claims” for equality and justice, as well as better train both men and women with leadership potential. “A living church can look back on history and acknowledge a fair share of male authoritarianism, domination, various forms of enslavement, abuse and sexist violence,” Francis said. He continued: “With this outlook, she can support the call to respect women’s rights, and offer convinced support for greater reciprocity between males and fem a les, wh i le not a g reei ng with everything some feminist groups propose.” An organizer of last year’s synod, Cardinal Lorenzo Baldisseri,
was asked at a news conference about Francis’s lack of reference to women in leadership positions and the need to welcome gay Catholics. Baldisseri replied that Francis couldn’t rewrite everything from the final synod recommendations. Francis’s new document, a 299-paragraph booklet entitled “Christ is Alive,” covers a wide range of issues confronting young people today. In it, he notes that many feel alienated from the Church because of its sexual and financial scandals, and are suffering themselves from untold forms of exploitation, conflict and despair. A hefty chunk of the document focuses on both the promises and perils of the digital world and dedicates ample space to the plight of migrants. It uses millennial lingo, calling the Virgin Mary an “influencer” and describing relations with God in computing terms: “hard disk,” ‘’archive” and “deleting.” Francis wrote that he was inspired by all the reflections from the bishops’ synod and refers readers to the 2018 recommendations. He said he wanted to use his new text to “summarize those proposals I considered most significant.” Throughout, he urges young people to be protagonists in rejuvenating the Church. On the topic of child sex abuse and cover-ups in the Church, the pope called for the “eradication” of traditions that allowed child sex abuse to take place and for a challenge to how church leaders handled cases with “irresponsibility and lack of transparency.” He urged young people to call out a priest who seems at risk
Pope Francis kneels before a priest to confess during a penitential liturgy in Saint Peter’s Basilica at the Vatican on March 29. AP/Andrew Medichini
of seeking affection from children and youth, “and remind him of his commitment to God and his people.” Asked if that message wasn’t putting young people in potentially dangerous positions with potential predators, another synod organizer, Monsignor Fabio Fabene, said it was the contrary. The pope’s words showed Francis wanted to entrust youth with “showing closeness to priests experiencing difficulty” in their missions and for young people to help “rejuvenate the heart of a priest who is in difficulty.” Such terms have long been used by church officials to minimize the criminality of priests and bishops who rape and molest children. A sked why there was no reference to Francis’s frequent call for “zero tolerance” for abuse, Baldisseri said the pope doesn’t need to repeat the phrase in ever y document. “You don’t need to say ‘zero tolerance’ every time you go to lunch and dinner,” he said. The document acknowledges the importance of sexuality in the development of young people. As with the roles of women in the Catholic Church, Francis did not repeat the bishops’ wording in recommendations for deeper anthropological, theological and pastoral study on sexuality and sexual inclinations. The term “homosexuality” appears once in Francis’s text. Women have often complained
they have second-class status in the Church. History’s first Latin American pope has vowed to change that, but he has done little that is concrete and counts no women among his own advisers. Just last week, the founder of the Vatican’s women’s magazine resigned with members of the editorial board, citing what she said was a climate of distrust and delegitimization in the Vatican. The editor of the newspaper that distributes the magazine denied efforts to undermine the women. Nine nuns were invited to participate at the October synod on Catholic youth, alongside 267 cardinals, bishops and priests. None of the women had the right to vote on the final recommendations. The nuns publicly made clear their displeasure before, during and after the meeting. The recommendations advocated making women a greater presence in church structures at all levels while respecting church doctrine that the priesthood remains for men only. The Women’s Ordination Conference, which advocates for a female priesthood, blasted the pope’s document for ignoring the synod’s recommendation to make the whole church aware of the “urgency of an inescapable change” to put women in decision-making roles. The document, the group said in a statement, “offers only lip service to the movement for women’s equality in the Roman Catholic Church.” AP
Santisima Trinidad celebrates its 25th year
T
he Santisima Trinidad Parish in Manila capped its 25th anniversary celebration on March 25 with a Mass presided by Novaliches Bishop Emeritus Teodoro Bacani Jr. It also held on March 23 a Soup Kitchen for the Poor, and distributed bags of grocery items, which were sponsored by the Catholic Mass Media Awards (CMMA). Leading the CMMA activities were Parish Priest Fr. Joselito Buenafe and CMMA official Benjamin Ramos, and CMMA staff members and Eternal Gardens volunteers. Simultaneous with the feeding and
gift-giving was a medical mission held by the parish. Santisima Trinidad on Estrada Street in Manila was the recipient the fund-raising concert that was held in celebration of CMMA’s recent 40th anniversar y. The funds raised were used for the parish’s feeding and gift-giving activities. The other activities held in celebration of the parish’s anniversary were a threeday Trinity Congress, a Triduum Mass, street dance Sayaw Santatlo and Parada Bente Singko. Lyn Resurreccion
5th Sunday in Lent: ‘John 8:1-11’
Lessons from an adulteress Msgr. Josefino S. Ramirez SUNDAY GOSPEL IN OUR LIFE
T
he gospel reading today presents us with the woman who was caught in the act of adultery and who had been dragged to the presence of Jesus Christ in order to see if He would proceed with her condemnation to death, as stipulated by Jewish law. This incident is also singled out by Pope John Paul II in his important letter on the dignity and vocation of women. There, the pope points out an important discrepancy—the woman’s condemnation is sought, but the man, who is equally guilty, is nowhere to be found. The guilty male partner seems to get away scot-free. What was Jesus’ reaction? The gospel tells us that he refused to condemn the woman to death. At the same time, He did not condone her sin of adultery. We can say that He preferred the conversion of that sinful person over her punishment. In fact, Jesus’ advice to her was “From now on, sin no more” (John 8:11). Yet we can extend that concern of Jesus to the anonymous accomplice in her sin. And we can even extend it to all the men who had gathered around in order to participate in the prospective stoning session. In fact, we can extend this piece of advice to ourselves. Regarding the men who clamored for the punishment of the woman, Jesus also had a lesson
Saint Julie Billiart, foundress By Corazon Damo-Santiago
T
h e Fre n c h R e vo l u t i o n t a rg e te d the nobility and the Catholic Church. Considered as a Reign of Terror, anti-Catholic Church provisions outlawed public and private worship and religious education, closed churches, forced abjuration of priests of their religious vows and even forced the clergy to marry. Friends had to move Julie Billiart from one place to another to protect her, an ordeal since she was paralyzed. Finally she was hidden in a cart of haystack and brought to Compiégne, France.
Saint of Cuvilly
Marie Rose Julie Billiart was a teacher all her life. She studied at the village school that was administered by Thibault Guilbert, an uncle, in Cuvilly in northern France. At 7 years old, she had memorized the catechism lessons. She would gather friends and recite or explain the biblical parables. Father Dangicourt, the parish priest, recognized something special about her spirituality, and allowed her to have her first communion when she was 9, at a time when 13 was the allowed age. After five years she took her vow of chastity. The fifth of seven children, she was born on July 12, 1751, to a devout family with a small business in Picardy, France. She was called the “Saint of Cuvilly” for her virtues and piety. A murder attempt on her father shocked her. After having health problems, she had paralysis of her lower limbs for the next 30 years. A daily communicant, she would spend four to five hours of prayer in contemplation, after communion, and spent the rest of the day making linens for the altar or teaching about God to children who gathered around her bed. She gave first communicants special attention. Placing all her confidence on God, she declared: “I go quietly on day by day. I wait for the good God. I look at God. I follow God.”
Reign of Terror
Fr. Joselito Buenafe and CMMA official Benjamin Ramos distribute bags of grocery items to parishioners of Santisima Trinidad Parish on March 23. Lyn Resurreccion
Novaliches Bishop Emeritus Teodoro Bacani Jr. (center) presides at the Mass during the 25th anniversary of Santisima Trinidad Parish in Manila on March 25. With him are former parish priest Fr. Domingo Baybay (left) and the current parish priest Fr. Joselito Buenafe. Jun Resurreccion
for them. “Let the one without sin among you be the first to cast a stone at her” (John 8:7). Were they not also sinful? Did they not have something to be sorry for, too? After a bit of personal examination, they had to admit it. And so they began to leave, all of them, the old and the young. That incident at least helped them not to be self-complacent. Like the woman, Jesus’ first advice was for them to sin no more. It is so easy to raise a fuss over the supposed faults of others. It is so easy to suffer for all the sins of mankind, past, present and future. In a mysterious way, as Christ was suffering on the cross, He also had in mind the personal sins of each one of us. So that whenever we offend God grievously, it is like we were crucifying Christ once again. And every time we commit a venial sin, we are somehow inflicting more pain to His wounds. This coming Holy Week is a wonderful occasion for us to resolve to fight against sin. And we can do so by going to the sacrament of penance and reconciliation. In that sacrament, we apply all the merits of Christ’s suffering to our guilty condition. On the other hand, if we choose to ignore this moment of grace and conversion, we are wasting all that suffering and squandering away the love of God.
A woman of great faith, she lifted the spirits of the people around her. “The good God is our good Father. As long as we serve God with our whole hearts, God will not abandon us.” Unafraid, she offered her house as a recluse for religious loyal to God. Her bedroom became a place for celebration of Masses and for pious women to pray together. She encouraged others to protect priests and spoke against those who supported the French Revolution. Her recluse in Compiégne afforded spiritual insights yet to come. She had a vision
of Calvary: She was in a group of women, religious in habits she had never seen. And, she heard a voice: “Behold these spiritual daughters I give you in an institute marked by a cross.”
1804, a blessed year
Billiart met Viscountess Marie Louise Françoise Blin de Bourdon of Gezaincourt when she took refuge in Amiens during the French Revolution. In 1803, Billiart and Blin de Bourdon, together in obedience to Father Peré Joseph Varin, S.J., superior of the Fathers of Faith, conceived the foundation of the Institute of the Sisters of Notre Dame de Namur to assist poor children. On October 15, 1804, four women, including Billiart and Blin de Bourdon, took their vows for a lifework of educating girls and training religious teachers. Billiart was 53 years old then. It was also in 1804, on the Feast of the Sacred Heart, that she was mysteriously healed of paralysis she had endured for 22 years. Fr. Enfantin, who prays with her, urged her to take just one single step for the love of God. She did, and miraculously regained her mobility. The congregation Sisters of Notre Dame was approved by imperial decree on July 19, 1806. From 1804 to 1816, 15 convents were founded. Mother Julie, the superior, had to travel, and continued spiritual correspondence with her spiritual daughters. Hundreds of those letters were preserved in the motherhouse in Namur, Belgium. Sometimes she traveled not in stagecoach but on foot. A courageous soul, her solid piety was an inspiration. Ghent Bishop Maurice-Jean Madeleine de Broglie said of her: “She saves more souls by her inner life of union with God than her outward apostolate.” In 1815, when Belgium was the battlefield of Napoleonic wars, she suffered anxiety because many of the convents were on war zones, but none was destroyed. However, she was involved nursing the wounded and feeding the starved war victims of the Battle of Waterloo. Three months before her death, she helped nurse them. The congregation currently serves in 17 countries in five continents. Saint Julie Billiart died on April 8, 1916. She was canonized on June 22, 1969, by Pope Paul VI. Damo-Santiago is a former regional director of the Department of Education National Capital Region. She is currently a faculty member of Mater Redemptoris Collegium in Calauan, Laguna, and of Mater Redemptoris College in San Jose City, Nueva Ecija.
Tourism&Entertainment BusinessMirror
Editor: Carla Mortel-Baricaua
Sunday, April 7, 2019
A7
MÖvenpick Boracay Resort and Spa boasts of its 3,300-square-meter multilevel swimming pool, considered as the largest pool on the island.
Third time’s a charm for MÖvenpick Boracay By Gelyka Ruth R. Dumaraos
U
Photos courtesy of MÖvenpick Boracay Resort and Spa
pscale spa and resort front liner MÖvenpick Boracay Resort and Spa is now ready to welcome guests who are revisiting the idyllic paradise following its third reopening last year. Guests can choose rooms that have premium sea views.
General Manager André Brulhart explained that the resort soft opened in October 2017, after it bought Club Panoly’s property of lush greenery and private beachfront. Its second and official opening happened in January 2018,but the resort had to cease operations three months after, due to Boracay’s forced shutdown in April. Then, for the third time and hopefully the last, MÖvenpick reopened in October 2018. “It is wonderful to be able to welcome guests to Boracay,” Brulhart said. “With our private beach on the island’s northern tip, the amazing team of Mövenpick Resort and Spa Boracay is more than ready to receive guests with warm Filipino hospitality.”
For a better island experience
Following Boracay Island’s more heightened measures on overall tourism management, MÖvenpick is confident to serve guests with strength-
ened commitment for sustainability. A property managed by multinational hospitality company AccorHotels, MÖvenpick takes pride in its own environmental and sustainability measures. “The thing is, we’ve always complied, even before the closure,” Brulhart said. “That was basically the problem with all the hotel owners who had complied but had to close [business] for six months, but we’ve always complied.” Brulhart shared that the resort has its own sewage-treatment plants (STP) even before the Boracay shutdown. He also added that their next project is to install the resorts’ own desalination facilities for the production of safe and clean drinking water. Particular to MÖvenpick, Brulhart revealed that the challenge of the resort, being abruptly closed down and reopened again six months after, is the fact that they do not have
concrete data about their market and collated feedback on their products yet at that time. “Before the closure, we didn’t have full inventory for the first opening and the second opening. The product was not 100-percent ready,” Brulhart admitted. However, the Boracay shutdown proved to have worked in their favor, giving the management more time to make changes and improve on their products. He added, “This third [opening] really gave us the possibility to put things right.” Since the island is still in rehabilitation with dug-up streets and ongoing construction of infrastructure projects, convenient transportation is an evident concern, having several transfers from the plane’s touchdown to the hotel’s lobby. “In general, the arrival experience in Boracay is still a little bit of
The Market serves daily breakfast buffets.
a challenge,” Brulhart said, noting that it should be immediately addressed since Boracay is a world-class destination. As a possible solution, the management hopes to get a permit very soon so that they can dock in their speedboats directly to their private beach, just as it was before the Boracay closure.
For more world-class amenities
According to Brulhart, the past months since its opening saw a variety of Asian guests, who are more into short-term stays. Other international guests who are up for longterm stays may still take a while to come back, but there’s a lot of reasons to do so. Nestled at Punta Bunga Cove, MÖvenpick boasts of its 312 rooms and suites featuring bright, contemporary designs and views of the tropi-
cal gardens, or the sea. While MÖvenpick Boracay is aimed to be a family-friendly resort, its doors are also open to guests for weddings, family gatherings and other happy occasions having several event venues and F&B outlets. As the only resort with six F&B outlets inside its vicinity, MÖvenpick Boracay offers a variety of dining experiences from couples to families. Brezza introduces authentic Italian cuisine and is known for its fast handmade pizza named “The Beast,” baked in a wood-fire Napolitan oven. Sol Marina Beach Club takes pride in its romantic, distinct location for a breathtaking sunset viewing while enjoying cocktails on the side. Meanwhile, The Market is an international restaurant serving daily buffet breakfasts, while Ssam is a mixture of Korean, Chinese and Japanese cuisines.
Pedal and pray with Lima Park Hotel’s 6th Bisikleta Iglesia
L
ent is a time for fervent expressions of faith. In Batangas, there is a unique expedition that takes devotees and biking enthusiasts on an awesome faith, sports and heritage tour. This is Bisikleta Iglesia Season 6. Organized by Lima Park Hotel, Bisikleta Iglesia kicks off on April 13, Saturday, at 5 a.m. The pilgrimage tour on bike will take cyclists on a 42-kilometer journey of seven beautiful Batangas lakeshore churches: Santo Niño Parish Church, Marawoy, Lipa City; Saint Therese of Child Jesus, Lipa City; Minim Nuns of Saint Francis of Paola, Lipa City; National Shrine of Saint Padre Pio, Santo Tomas; Saint John the Evangelist Parish Church, Tanauan City; Nuestra Señora de la Soledad Parish Church, Tanauan City; and Immaculate Conception Parish Church, Malvar. One of the main faith tourism attractions in Batangas that recently drew thousands of devotees is the National Shrine of Saint Padre Pio. It was among the churches that housed the “incorrupt heart” relic of Saint Padre Pio of Pietrelcina, Italy, when it arrived in the country in October 2018 as part of an organized worldwide tour. Considered as the “Saint of the Millennium,” Saint Padre Pio is best known for his charity and gift of stigmata. According to Lima Park Hotel’s Director for Marketing and Corporate Communications Rose
The Pool Bar welcomes guests with tropical vibes brought by its private cabanas and sunken swim-up bar, while The Café serves gives a cozy retreat for cakes, teas and sandwiches. It is also where guest can indulge in MÖvenpick’s famous trademark Chocolate Hour, a chocolate buffet that is an all-time kid-favorite. Lastly, the Fun Pub is the ultimate watering hole for sports fans. A must-do for MÖvenpick’s guests is to take a swim in its 3,300-square meter multilevel pool, considered as the largest pool on the island. For a relaxing treat, one can try the Sagay Spa, a one-of-a-kind pampering session using native Visayan seashells to ease the body and the mind. A Kid’s Club and a 24-hour gym are also available for guests. MÖvenpick also offers free shuttles going to the island’s shopping district at White Beach.
Bellevue Easter Chronicles
P
Immaculate Conception Parish Church
Santo Niño Parish Church
M. Landicho, Bisikleta Iglesia is an initiative to promote wellness, sports and faith tourism in Batangas. “Our Bisikleta Iglesia is an excellent vehicle to promote the province, its attractions, its rich culture and noble heritage.” Expecting to attract more than 400 pilgrim bikers, Landicho shared that Lima Park Hotel has been working with the Department of Tourism (DOT) to develop Batangas as one of the more accessible destinations for religious tourism in the country. “Lipa, in particular, is a virtual showcase of beautiful churches, both old and new. In fact,
Lipa is dubbed as the Little Rome of the Philippines; thanks to its numerous churches, chapels, convents and seminaries,” Landicho said.
Fifth installment
Last year, Bisikleta Iglesia attracted over 300 bikers whose ages ranged from as young as eight years old to seniors aged 70 years old. They took the 52-kilometer road adventure that started in Malvar all the way to Balete and down to Lipa. Landicho pointed out that this event has the elements of a spiritual retreat on
the road. Like last year, Bisikleta Iglesia 2019 will feature prayers, reflections and sharing in every stop with 14 riders carrying their own stations of the cross and assuming the responsibility of being station leaders. Leading the bikers’ pack is Fr. Robert Reyes.
Lent-only offer
The event registration fee is only P450 (net) inclusive of breakfast, lunch and pitstop snacks. The first 100 registrants will receive a commemorative Bisikleta Iglesia shirt, plus a chance to win
exciting raffle prizes. For a limited time, Lima Park Hotel is offering the Bisita Batangas Vacation Specials in time for the Lent season. The Family Getaway deal can be booked on a weekend for only P5,000, while the Family Staycation package can be enjoyed for only P3,499 when booked and bought 14 days in advance. In both offers, vacationers can enjoy the hotel’s Wi-fi access and top-notch amenities such as the gym, pool and children’s playground. A 30-minute complimentary use of the hotel bikes is included in the packages.
repare, all you princes and princesses, as the royal kingdom of Bellevue is putting together a grand day fit for its loyal subjects on April 21 at the Grand Ballroom! For only P1,350 net per person, guests will experience the magical kingdom of Bellevue come alive as dragons and knights in shining armor come together to grant you all a day filled with festive games, majestic prizes to be won and a delicious feast fit for a royal.To top it off, four lucky guests will get the chance to win an overnight stay at The Bellevue Manila, B Hotel Alabang, B Hotel Quezon City and a three-day, two-night stay at The Bellevue Resort in Bohol. A special rate of P1,150 net has been granted to all Bellevue Kids Club princes and princesses and their parents/ guardians. To experience all the magic the royal kingdom of Bellevue has to offer, treat the whole family to our Easter Room Promo! Enjoy a relaxing overnight stay in a Main Wing Deluxe Room for only P6,900 net per night or a Tower Wing Deluxe Room for only P7,900 net per night at Bellevue’s castle.
A8 Sunday, April 7, 2019
Sports BusinessMirror
Editor: Jun Lomibao | mirror_sports@yahoo.com.ph
Cuba releases first group of players eligible for MLB
H
AVANA—The Cuban Baseball Federation released its first group of players able to sign contracts directly with Major League Baseball organizations, and some could be playing in the United States this
year. The 34 players are 17 to 25, classified as international amateurs under Major League Baseball (MLB) rules and eligible to sign minor league contracts. Minor league salaries start at $850 a month, but signing bonuses for top players can exceed $1 million, while hundreds of players sign for $10,000 or less. The deal announced in December by MLB, the Cuba Baseball Federation (CBF) and the Major League Baseball Players Association specifies 25 percent of the signing bonus will go to the CBF as a release fee. Cuban players also pay a 4-percent income tax on foreign earnings. No likely stars were apparent on the list, but more notable players included 22-year-old Raidel Martinez Perez and 23-year-old Liván Moinelo Pita, who have played professionally in Japan; 17-year-old infielder Loidel Chapellí Zulueta; and 18-year-old pitcher Norge Carlos Vera Aldana. The agreement, which runs through October 31, 2021, allows Cubans to sign under rules similar to those for players under contract to clubs in Japan, South Korea and Taiwan. Only players under contract to the Cuban federation are covered by the agreement, and the Cuban federation agreed to release all players 25 and older with at least six years of professional experience. They would be classified as international professionals under MLB’s labor contract with the players’ association and not subject to international amateur signing bonus pools. The Cuban federation may, at its discretion, release younger players to sign minor league contracts with MLB organizations, as it did on Tuesday. “We’re doing this in the spirit of moving forward the implementation of the deal, with the goal of developing the potential of Cuban and international baseball and, above all, fighting human trafficking,” the Cuban Baseball Federation said in a statement. A former Cuban federation player under contract to a MLB club may return to Cuba during the offseason. He can play in Cuba during the offseason only with his MLB club’s consent. Without a formal path from Cuba to the major leagues, hundreds of top players have left the island for good, many making harrowing crossings on rafts and rickety boats in the years before Cuba abandoned a hated exit permit requirement for most of its citizens. The agreement comes despite rising tensions between Cuba and the Trump administration, which is accusing Havana of providing military and intelligence support to Venezuelan President Nicolas Maduro, whom Washington is trying to overthrow. Negotiations for the Cuba-MLB agreement date back to former US President Barack Obama’s detente with Cuba and opponents of the Cuba government, like Sen. Marco Rubio, have pledged to try to overturn it. AP
GERMAN rower Jonathan Koch says the International Olympic Committee has no reason not to distribute additional funding to athletes.
ATHLETES CALL FOR FAIR SHARE A
GROUP of German athletes has called on the International Olympic Committee (IOC) to take action to provide increased independent representation in sport and for competitors to be given a bigger share of Olympic revenue. Athleten Deutschland, an independent body comprised of toplevel athletes in Germany, has also urged the IOC to build on a recent decision in
Germany, which significantly scaled back the organization’s Rule 40. In a position paper sent to the IOC, which centers on “the future of athlete representation and the distribution of Olympic revenues,” the group has made a series of proposals, which it claims will “ensure athletes rights are sufficiently respected and upheld.” In a statement, the group said that it wants to “initiate an exchange on the future of the international sports system” with the IOC and other major sports organizations. “How the representation of athletes and their financial participation will look like in detail will have to be discussed and decided by meaningfully involving all stakeholders,” the statement adds. One of the main topics focuses on the way revenue generated from the Olympic Games is distributed, with the group claiming athletes are entitled to a larger share. Athleten Deutschland said its call was given further credence by the recently published Association of Summer Olympic International Federations (ASOIF) “future of global sport” report. The ASOIF document highlights how Summer Olympic Games gross revenue redistributed by IOC to International Federations (IFs) has grown from $297 million in 2008 to $540 million in 2016. Athleten Deutschland feels a greater proportion of the money should be given to athletes who compete at the Games. “Given the increase of revenues, it should be no problem to distribute a fair share to those who are at the heart of the Olympic Games: the athletes,” said Athleten Deutschland board member Jonathan Koch. “In addition, we believe athletes should be better engaged in assessing how revenues are distributed. “This could be done without diminishing the Olympic Solidarity program.” The group also believes the IOC should help oversee the creation of “truly independent and professional athlete representation” without the influence of sports bodies, such as International Federations. The IOC enhancing the role of athletes in decision-making structures
at sporting organisations is another proposal made by the group, along with providing “sufficient financial and human resources for effective interest representation.” The position paper marks the latest example of a growing trend in world sport, where athletes are speaking up in an attempt to secure better representation in sports bodies and increase the amount of money they can earn in their careers. It comes prior to the International Athletes Forum in Lausanne next week. Increased representation and awarding athletes more of the revenue generated from the Games are set to be among the main topics at the event, scheduled to run from April 13 to 15. It follows the Federal Cartel Office reducing the advertising restrictions placed on athletes by the IOC’s rule 40 in a decision hailed by athletes in Germany and further afield. Rule 40.3 of the Olympic Charter warns that “no competitor, team official or other team personnel who participates in the Olympic Games may allow his person, name, picture or sports performances to be used for advertising purposes during the Olympic Games.” The men’s tennis singles final at the Olympics, meanwhile, has been shortened to a best-of-three-sets match as part of format changes designed to reduce the workload of players competing in multiple events. It means all matches across the men’s and women’s singles are now best of three sets with tiebreakers. In another alteration, the men’s and women’s doubles matches will have a Champions Tiebreak to 10 points when the score is 1-1 in sets, like in mixed doubles. The International Tennis Federation announced the changes on Wednesday, saying they “reduce concerns of overplay for players who reach the latter stages of all three events—singles, doubles and mixed doubles.” They will come into effect for the 2020 Games in Tokyo. AP and Insidethegames
Motherhood mellows Lewis—a bit
R
THE 34-year-old Stacy Lewis is making her fourth start since the birth of daughter Chesnee in late October. AP
ANCHO MIRAGE, California—Stacy Lewis thinks motherhood has mellowed her—a bit. “Maybe a little bit more even keel and low key,” Lewis said at the ANA Inspiration, the major championship that begins on Thursday at Mission Hills. “Maybe that will help on the golf course. I don’t know. Life is so different. I don’t even remember what it was like before.” The 34-year-old Texan is making her fourth start since the birth of daughter Chesnee in late October. “Everything has changed,” said Lewis, who is married to University of Houston women’s golf Coach Gerrod Chadwell. “The way I go about my day, my golf swing feels different, my body feels different, the mindset when you leave the golf course is way different.” She acknowledged her intensity has been a detriment at times. “I think there has been a point where I get to where it starts to hurt me,” she said. “Maybe the perspective of having Chesnee maybe changes that a little bit. Definitely when I leave the golf course, I’m not worried about golf as much. It becomes all about her. I’m definitely able to leave it more at the golf course and come back more fresh the next day.” Lewis returned to the Ladies Professional Golf Association (LPGA) Tour in January with a sixth-place tie in the opener in Florida. She skipped the Australia and Asian events, then missed the cut two weeks ago in Phoenix and was 12th last week in Carlsbad. “I didn’t know what to expect,” Lewis said. “I didn’t know how the traveling with the baby was going to be. I had to figure out early and late tee times. Teeing off at 1 p.m. with a baby that wakes up at 6 a.m. is very hard. We had things like that to figure out.” She won at Mission Hills in 2011 and lost a playoff to Brittany Lincicome in 2014. AP
BURLESCK | DREAMSTIME.COM
Start-up wields tech to lure millennials back to farms
AGRABAH Marketplace cofounder Joselito Ocol Jr. (left) with three farmers from Pampanga whom the startup is helping through the use of technology. By Rizal Raoul Reyes
C
AN an app named after a Disneyland feature lure millennials back to agriculture? Joselito Ocol Jr., cofounder of the start-up Agrabah Marketplace, believes so.
Ocol sat in front of a monitor and sent replies to questions emailed by the BusinessMirror centering on how the start-up uses the power of digital technology to empower the farmers so they can live better lives. BusinessMirror: How did the agricultural community receive Agrabah’s technology? Joselito Ocol (JO): Agrabah Marketplace was well received by the agricultural community. In fact, we are overwhelmed with the
[number] of farmers trying to reach out to us from different provinces in the Philippines. Most of the farmers are asking if they could already use our platform so they will have the capacity to supply directly to institutional consumers. BM: Describe the business model of Agrabah. How does it plan to uplift the plight of farmers who complain most of the time being exploited by middlemen? JO: Agrabah Marketplace’s business model is simple: We connect farmers and fishermen to institutional consumers. People often think we want to remove the middleman from the equation. However, our goal is to provide a fair profit share to farmers and fishermen in the value chain. We must face the fact that middlemen are playing an important role in the agriculture value chain. They provide logistics, financing, post-harvest processing, and they take the risk of getting rejects from institutional consumers. Agrabah Marketplace focuses on empowering farmers and fishermen through community building, education and awareness campaigns to provide long-term solutions to the current value-chain problems. We want
2 BusinessMirror
our farmers and fishermen to take on the responsibility of aggregating the supply, doing the post-harvest processing and doing the logistics. This way they can have a bigger chunk of the profit ensuring that they steadily earn a fair profit share through our processes and technology platforms. Agrabah Marketplace is guided by its three main pillars, which can easily be remembered as “EAT.” The first pillar is “Education:” we want to provide farmers with the right skill sets so that they can increase their farm’s productivity. We want to build more agriculture entrepreneurs so that farmers can gain a better understanding of the business side of farming. We recently launched a “collaborative farmers’ group” on Facebook providing daily farm tips and tricks so that farmers can help, collaborate and learn from each other. We also create infographics, videos and handy print-out guides on how to farm, per produce variation, as a free resource to our farmers. If we can make our farmers more efficient, we can start a ripple effect. With each person adding to the wave, we can make a positive impact where everyone
APRIL 7, 2019
can benefit. It starts with the increase of food production, local quality food being sold in our markets and fair pricing for both consumers and farmers. We need to be to the catalyst of the changes we want to see. The second pillar is “Awareness.” The average age of the Filipino farmer is 57 years old. Furthermore, most of the arable land in the Philippines is not being fully utilized. Our food production is not keeping up with the consumer demand. Hunger and food waste is becoming an increasingly alarming issue and yet the Philippines is still called an agricultural country. Part of our initiative is to create awareness about food sustainability and to encourage the youth and urbanites to take part in the wave of change. Everyone’s efforts can help create the ripple effect regardless of how big or small their input is. We aim to do this through volunteering efforts and also promoting “agripreneurship” as a viable occupational choice. We want to show Filipino youth that farming is not just a noble profession; it can be a profitable one too. We want to encourage Filipinos to take more of an interest in where their food is Continued on page 8
BusinessMirror
MUSIC
PAGE
PUT3SKA IS BACK!
4
4
Sound BusinessMirror
APRIL 7, 2019 | soundstrip.businessmirror@gmail.com
MUS
PUT3SKA: FIRE AND A
by Rick Olivares
RNOLD MORALES, his hair dyed platinum blonde, arrived at the Blue Light Studios in Kamuning, Quezon City for practice with Put3ska
for their upcoming reunion concert at the Music Museum this May 24. Lugging his black Gretsch guitar, he wore a vest plastered with the logos of American ska bands The Toasters and The Pietasters.
Since Morales first came up with punk band College, then the Urban Bandits, and later with ska crewPut3ska, he has alternated between punk, skinhead, to a local facsimile of a version of the Specials’ Walt Jabsco. Yet for all his incarnations, the passionate fire has always burned in his eyes. This is a man who takes his music very very seriously. He had been a huge force in arguably two of the greatest albums in Filipino music history: in Urban Bandits’ punk classic “It’s Independence Day,” and Put3ska’s self-titled debut. In recent years, Morales had enjoyed somewhat of a renaissance. The Urban Bandits reunited for a show. And while the band hasn’t performed since, they have recorded six new songs that are partially finished for the band’s long-awaited second album. In the meantime, he has been jamming with punk outfit Bad Omen. And there is the Put3ska reunion that has reignited that fire. According to Put3ska bassist Rommel Cruz, Morales has written three new ones for the band— some of which will be unveiled at the reunion show.
Full steam ahead
THERE have been feel-good vibes since the reunion was announced in February. And while it is full steam ahead, it hasn’t been without a little problem, as a former member has—without valid rhyme or reason—suddenly dropped out of the reunion, while stirring up some controversy about claiming that it was he who came up with the band name, when it actually wasn’t. “Nauubos na ang pasensiya ko,” Morales said in a low voice during the band interview prior to practice. Put3ska bandmate and vocalist Skarlet Brown placed a calming hand on Morales’ arm. The fire is stilled. A former rock-club owner recently remarked that it isn’t Put3ska without any issues. And true enough, it’s those issues that saw the untimely demise of one of the best live-wire acts of the 1990s’ band explosion. Put3ska released two wellreceived and best-selling albums. They toured heavily and were fixtures in the music scene, as well as on television and radio. Even talk show hosts invited the band for guest appearances.
d trip
soundstrip.businessmirror@gmail.com | APRIL 7, 2019
5
SIC ON PRINT
D EPHEMERAL VIBE
Well, that was then… and this is now.
Alive and well
THE local ska scene is alive and well. There are bands all over the archipelago gigging and releasing albums on vinyl, compact disc or cassette. Many make their discography available online. And there is a regular ska stage during the annual Fête de la Musique. For Morales, the reunion, that will also beget a tour and a new album, isn’t about reclaiming the throne, or whatnot. He doesn’t care for such plaudits. “It’s about the music, mate,” he clarifies. “Wala akong pake kung ano yung uso. We just make music we like. Kung meron may gusto, then great. We go.” His Put3ska bandmates are Continued on page 6
6
APRIL 7, 2019 | soundstrip.businessmirror@gmail.com
Sound trip BusinessMirror
MUSIC ON PRINT
DEF LEPPARD FRONTMAN
nervous about rock hall speech J OE ELLIOTT has no problem addressing huge crowds at concerts and festivals. But when his band Def Leppard gets inducted into the Rock & Roll Hall of Fame, it’s the speech that will make him uneasy. “Getting up and going, ‘How’s everybody doing? Are we ready to rock?’ is a lot easier than standing there, for God knows how long, trying to acknowledge and hope to God you haven’t forgot[ten] anybody—people [who] go back all the way to the beginning of the band, which is 40-odd years ago. So, no pressure,” Elliott joked. Def Leppard—whose hits include Pour Some Sugar on Me, Love Bites, Foolin’ and Animal—enters the Rock Hall as a first-time nominee. They join a class that includes Roxy Music, Stevie Nicks, Janet Jackson, The Zombies, The Cure and Radiohead. The band had been eligible to join rock gods such as Buddy Guy, Chuck Berry and Elvis Presley in the “Hall” since 2005, but Elliott credited fans for creating a headwind during voting late last year. The top five artists make up a special fan ballot that’s tallied along with others that are submitted by industry officials, music writers and selected artists. “We got this huge fan vote, which then really kind of turned our heads as well. Because what it was then, it wasn’t just this faceless committee deciding who was cool enough and it was not good enough—it was the fans,” said Elliott. “And we’d been told the last six years whoever won the fan vote was, you know, inducted. So, we kind of
figured if we win it, we’ll probably get in and here we are.” Queen’s Brian May was named to induct the band. Elliott said Def Leppard and Queen have a history dating back to 1981, and said May has always been a “go-to guy” for the band. “We first met him in Europe. We were opening for Ritchie Blackmore’s Rainbow, and I think Queen was recording ‘Hot Space’ in Munich,
maybe. And he came in and said ‘Hi!’ and we were like just blown away. In 1983 we happened to be at the LA Forum… [May] was in town and he asked if he could come and jam with us, and we were like, ‘Are you kidding? Of course you can!’” Elliott shared how the band celebrated when they learned they were inducted. “We were on tour in the UK and
we were on a day off in a fantastic castle hotel on the outskirts of Glasgow in Scotland,” he said. “We decided we’d have dinner to celebrate it. So, we had this huge castle to ourselves. There’s nobody else in the dining room. We just sat at this big table, a couple bottles of bubbly, and we just cheered each other. That’s it… we’re in. It’s a great moment, it really was.” John Carucci/AP
Put3ska...
from page 5
excited for many reasons. Aside from returning to their roots and gearing up like the good-old days, the new songs are cause for excitement. Morales has rediscovered his mojo. Cruz, who himself cannot contain his excitement, is more succinct. “This is not only about a show, but also about making new music.” “Ska appeals to the hips, mate,” Morales pointed out. “The Filipino references appeal to the heart.” That, in a nutshell, is Put3ska.
Also about family
WHEN they hit the stage on the 24th of May in full ska gear, they will feature members from various incarnations of the band. “The show is also about family,” Brown was quick to point out.
Generation Z: The kids corporate America just can’t afford to ignore
T
HIS is the year Gen Z takes over, and fusty companies that want to sell them stuff have to crack the kids’ code.
online trend, with an emphasis on subscription and customization, such as those from algorithm-driven businesses like the personal styling company StitchFix.
Universe of choices
THERE is an ever expanding universe of choices. “You can walk away from one company to another,” Seemiller says. “For Gen Z, it’s less about the product and more about the organization.” Companies are trying. Kellogg Co. hired what it calls “inspiring Gen Z leaders” ages 12 to 17 to design its newest Kashi cereal. McCormick & Co. has a new marketing program called Imagine that, the spice maker says, “directly links our food, flavor and products with our sustainability efforts.” Ulta Beauty Inc. sells a vegan and cruelty-free line aimed at “Gen Z beauty enthusiasts.” Church & Dwight Co.’s campaign on YouTube for its condoms tackles Gen Z’s approach to sex—and flexible preferences— with videos starring “Trojan Man,” who has a fro, wears flowing robes and says things like, “Sex is the sandwich, and you can put whatever you want on it.” CEO Matthew T. Farrell said on an earnings call last month that the company was excited about the potential of the ads’ appeal. He also recognized the people on the phone likely didn’t know what he was talking about. “Now no one in this room is in the target group, so you haven’t seen any of the digital ads.”
Good luck with that. Ziad Ahmed sees what a challenge it is every time he makes a presentation, as he did recently to some American Express Co. marketing executives. It was his “Gen Z Crash Course/ Make a Meme Workshop,” and they drew blanks watching slides about the dialect spoken by the young. Esketit? OTP? One guy took a stab. “Old Tired Person?” Ah, no. That stands for “one true pairing,” to describe a perfectly matched couple. Esketit, coined by the Gen Z rapper Lil Pump, means “Let’s get it.” It’s a learning curve. “People are just starting to catch up,” says Ahmed, the 20-year-old chief executive officer of JUV Consulting, which sells expertise in his cohort, who are, according to the firm’s website, “sought after as customers and misunderstood as people.” They belong to what this year becomes the biggest generation, 61 million strong in the US alone, roughly between the ages of seven and 22, depending on how you crunch it. They were born after the internet went mainstream; the oldest were about 10 when the iPhone was introduced. “We are the socialmedia natives,” as Ahmed put it. They are distinct from the millennials before them—who were “digitally native” only—and they don’t shop the way their parents do. One estimate is that they already have direct spending power of as much as $143 billion. And most of them are still in school. “No one in this room is in the target group, so you haven’t seen any of the digital ads.”
Whispers or slurps
New spin WHATEVER the actual amount of money in the possible Gen Z spending pot, companies don’t want to—and can’t afford to—blow it as many did with millennials. A common assumption was that those young people now in their 20s and 30s weren’t interested in the American tradition of consumption. Maybe they weren’t, but only because they were broke, having come of age during the 2008 financial crisis and following recession. Automakers, for one, took the bait, rolling out smaller cars they figured that generation would go for, models being killed off now that more millennials are flush and hankering for gas-guzzling SUVs. Levi Strauss & Co. got it wrong too, which CEO Chip Bergh said hit home when his own millennial sons wouldn’t wear the brand. Kraft Heinz Co.’s jaw-dropping $15.4 billion writedown on stale brands last month helped frame just how wide the millennial
miss was for some leading names. People in generational cohorts are never as uniform as marketers would like. Still, to hear researchers and Gen Zers themselves tell it, this one will put a new spin on consumerism, making things difficult for the big, established chains.
Philanthroteens ONE reason: Gen Z consumers don’t much care about brands. Or labels. Or corporations. They see themselves as entrepreneurial; around half may never work for someone else if they get their way. They’re ethnically diverse, socially tolerant, globally connected, environmentally aware. One nickname for the group: Philanthroteens. They don’t much use e-mail or Facebook; think Instagram and YouTube instead. They’re into thrift-shopping and internet influencers. They sure don’t watch ads on
7 BusinessMirror
TV, whatever that is. They prefer word-of-mouth (preferably through meme or post or video) when it comes to enlightenment about what to buy, says Adam Grant, 33, the CEO of the marketing agency Campus Commandos. “What’s better than learning about a product or service than your friend?” A survey of 11,000 US adults by Bloomberg News and Morning Consult shows the generation is more willing than its predecessor to put its money where its values are. “If they’re paying money to corporations, they have to align with what they believe in,” says Corey Seemiller, an associate professor at Wright State University who became a lecturer on Gen Z after a student asked to skip a community-service requirement because she was running her own nonprofit. Gen Z is expected to accelerate the shop-
APRIL 7, 2019
ANOTHER advertising tack: targeting Gen Z with the sounds—like whispers or slurps—that can trigger an autonomous sensory meridian response, also known as a brain orgasm. ASMR videos are huge on YouTube; they can be relaxing and may help you sleep after too many hours of stimulating blue light from your always-on screen. PepsiCo Inc. aired a commercial during the Superbowl with Cardi B doing her famous tongue-rolling “Okurrrr.” AnheuserBusch InBev SA ran an ASMR ad during the game too, where Zoe Kravitz whispered at, tapped on and then poured a fizzy Michelob Ultra next to multiple microphones. “It’s harder for brands to have a straight ad now,” Grant says. “It’s so crowded out there.” As brands chase Gen Z, more than a few will flub it, Ahmed says from the WeWork space in New York where JUV has its main headquarters, working with companies including Unilever, Edelman and Viacom. He gave an example: a client that resisted having a social media presence at a launch event because it didn’t want to encourage the generation’s dependence on it. Back to that learning curve. “There’s this misconception that we’re scrolling mindlessly,” Ahmed says. What Gen Z’s actually doing is connecting and communicating and figuring things out—like where to spend their money. Bloomberg News
Millennials in hoodies spend $28 million on Simpsons art
M
ILLENNIALS snapped up $28 million worth of art inspired by the Simpsons television show, along with skateboarding shoes and cans of spray paint at a Sotheby’s auction in Hong Kong as a new generation of collectors comes of age.
and about 15 times the estimate. A young Chinese buyer with a short back and sides haircut, who was wearing a green army camouflage jacket, shelled out $2.6 million for another KAWS piece called UNTITLED (KIMPSONS #3). The work depicts the Simpson family sprawled unconscious on their couch, with the artist’s signature crosses for eyes. “I am not surprised by the demand, but I am surprised by the final number,” said Max Dolgicer, a New York collector who’s been buying the artist’s work for seven years. “It’s a very fast-moving market.” In November, another painting by KAWS, whose real name is Brian Donnelly, sold for a then-record $3.5 million. Last week, a 37-meter-long inflatable version of his signature character, called Companion, floated on its back in Hong Kong’s Victoria Harbor during the Art Basel Hong Kong art fair. Other items at the auction included two pairs of sneakers designed by KAWS for Nigo’s A Bathing Ape (Bape) line of clothing that fetched $16,000, and an 18.5-inch high KAWS figure based on the Japanese manga character Astro Boy, which sold for $303,000. Bloomberg News
“The auction room suddenly got a lot hipper, with all these cool millennial buyers in hoodies,” said Edie Hu, art advisory specialist at Citi Private Bank in Hong Kong. “Their tastes are very different from their parents, and Sotheby’s is tapping into that.” The highlight of the 33-lot auction of items belonging to Japanese fashion designer Nigo was a painting by Brooklyn street artist KAWS based on the Beatles’ Sgt. Pepper’s Lonely Hearts Club Band album but populated with Simpsons characters. It sold to an unidentified buyer for $14.8 million including fees, a record for the artist
Start-up wields tech to lure millennials back to farms Continued from Page 2
coming from, who the farmer is that produced their food and the ways and means it took to get their food from farm to table. We’re on a mission to put farming in the spotlight, leading the wave of change to help create a sustainable Agricultural Ecosystem here in the Philippines. We want to make things better for the next generation of Filipino farmers. The last pillar is “Technology.” Agrabah Marketplace is building a platform for farmers and fishermen to supply directly to institutional consumers. As transactions happen in the platform, we are gathering data which we hope to utilize in the following years. We will use data analytics and integrate machine learning to create predictive analytics and provide suggestions to farmers on what to plant in a specific month or season based on market demand. We also want to provide institutional consumers with data insights on what produce is available on the market and what will be available in the following months. This will help restaurant chefs and caterers plan their seasonal menus among other things. We are also closely working with other companies providing farm build-out (aquaponics and hydroponics) and farm automation. We want farmers and fishermen to have access to technology. BM: What is the vetting process of Agrabah to ensure it sells quality products? JO: Agrabah Marketplace has put in place
a strict vetting process to ensure that our farmers will provide quality produce and that they are well supported. We do this by physically visiting our farmers and their farms while conducting focus group discussions within the farming community to see what assistance we can provide to ensure quality harvest. BM: Please describe the front-end and back-end operations of Agrabah. JO: The front end of Agrabah is a simple web-responsive app interface. It is a user friendly interface easily understood by our farmers. The back-end operation of Agrabah is a complex networking and negotiation with institutional consumers to get orders directly from our local farmers. Through the help and support of Armada Innovation Labs, our technology is built with security in mind. We follow the philosophy of DevSecOps, which involves creating a “security as code” culture with ongoing, flexible collaboration between our development team and security team. Our platform also highly values the relationship and support we have from Microsoft Philippines. More than just hosting our platform, they really take the time to understand why our mission is so important. Their strategic partnership goes beyond just the services they provide. They are an integral part of our business making connections and building a bigger community. As long as there are people believing our
8 BusinessMirror
cause, we will continue to help farmers and fishermen in the country. With everyone’s help we can make farming great again. BM: What motivated you to put up Agrabah amid the current challenging stage of Philippine agriculture? JO: Having a start-up in the Philippines is very challenging if you are boot-strapped. However, our team is always up for a challenge. We know that the current agriculture value chain is flawed. I used to be a middleman and I see the injustice our farmers face on a daily basis. Some studies even suggest that there are seven layers of middlemen before produce even reaches the consumer. I want to address the gap, by encouraging our farmers to take on the responsibilities of doing the post-harvest processing and logistics. The only thing preventing them from doing this is the visibility over the market need. This is where Agrabah Marketplace comes in to the equation, because we provide visibility over the market. We are on a mission to help redistribute a fair profit share to our hardworking farmers and fishermen. BM: How enthusiastic are the millennials in the start-up? How are they motivated? JO: Our small team brings to the table different areas of expertise and their own unique reasons for why they believe this to be a noble cause. My cofounder and chief partnerships officer and, coincidentally, my wife, grew up in a small farming community in the heart-
APRIL 7, 2019
lands of Northeastern Ohio. With a degree in International Studies and a strong background in building longlasting partnerships, she is passionate about building impact and helping create a better future for farmers and fishermen globally. Our Chief Creative Officer Ivan Roman has a long track record of content creation for global clients. He’s an artist at heart with an entrepreneurial spirit. Roman is passionate about creating content with social impact. He is also a recreational urban farmer. As a bootstrapped start-up, we understand the challenges we face, but it doesn’t discourage us from continuing to move forward in our mission to help farmers and fishermen. We are lucky because we are supported by a program of the Asian Institute of Management. They have provided us with invaluable training, resources, connections and support that have helped our start-up grow from a small seed of an idea to what we are today. Their expert guidance really helped push us to think outside of the box and be able to meet our minimum viable product in the first month of operation, which validates that our processes work even without the technology. Our first transaction alone has helped over 500 farmers and their families in coastal communities across the Bicol region. Imagine how many more farmers and fishermen globally we could help along the way, if we could get more people to support our cause. We truly believe that the grass is always greener where you water.