Businessmirror august 11, 2017

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NO SURPRISES IN ESPENILLA’S FIRST MONETARY-POLICY MEETING AS BSP CHIEF

Rates retained despite inflation uptick

A

By Bianca Cuaresma

@BcuaresmaBM

pprehension over the projected path of commodities prices showed clearly in the decision of the Bangko Sentral ng Pilipinas (BSP) on Thursday, when the Monetary Board (MB) kept the key policy rate unchanged at 3 percent but scaled up the forecast inflation this year and next.

The freezing of the policy rate was widely expected, even as the seven-man MB recognized that this year’s forecast inflation has to be recast to 3.2 percent instead of 3.1

percent, as bared earlier, and to 3.2 percent next instead of the original forecast rate of just 3 percent. Price pressures in 2019 were to moderate to only 3.1 percent under the

forecast scenario.

The corresponding interest rates on the overnight lending and deposit facilities were also frozen where they are at present, and the banks’

deposit reserves similarly steadied.

The rate-setting meeting of the MB on Thursday was the Central Bank’s fifth policy meeting this year and the first under Nestor A. Espenilla Jr. as BSP governor and MB chairman.

Espenilla said while inflation was seen trending up, the sevenman MB is convinced that inflation, or the rate of change in prices, should remain manageable and end the year within target.

“The future inflation path continues to be within the target for 2017 to 2019. Inflation expectations also were to remain firmly anchored close to the midpoint of the government’s 2 percent-to-4 percent target over the policy horizon,” Espenilla said in a statement. “ T he Monetar y Board also recognizes that the balance of risks

to the inflation outlook continues to be on the upside. While the proposed tax-reform program may exert potential transitory pressures on prices, various social safety nets and the resulting improvement in productivity will likely temper the impact on inflation over the medium term,” he added.

Other influencing events the MB considered were the global economic outlook, as well as the robust expansion of credit activities in the country.

“While output prospects for the global economy have improved, downside risks to external demand remain, due in part to geopolitical tensions and lingering uncertainty over macroeconomic policies in advanced economies,” Espenilla said.

See “Rates,” A2

How to make employees use their vacation time

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OUTSTANDING FILIPINOS The Metrobank Foundation Outstanding Filipinos for 2017 were named at a press conference in Quezon City on Thursday. Metrobank Foundation President Aniceto Sobrepeña (center) posed with the 10 outstanding Filipinos: (from left) Philippine Army (PA) SSgt. Narding Pascual, PA Lt. Col. Ricky Bunayog, PA Lt. Col. Elmer Suderio, master teacher Jennifer Rojo, University of the Philippines professor Dr. Alonzo Gabriel, De La Salle University professor Dr. Esperanza Cabrera, high-school teacher Edgar Elago, Cebu P/Senior Supt. Joel Doria, MPD P/Chief Insp. Rosalino Ibay and Davao Police P03 Shiela May Pansoy. NONOY LACZA

PESO exchange rates n US 50.6210

acations are good for business. Taking time off not only enhances productivity but also immunizes us against the negative attitudes that can be contagious in the workplace.

But if vacations produce positive effects, why are we taking fewer days off? In one study, researchers found that employees fear that their manager will think less of them. To change this perception, you need to be creative about getting your team members to take a vacation.

First, make the business case.

During a team meeting, share research on the benefits of vacation.

For example, taking time off improves creativity and engagement.

Foregoing vacation has been linked to impulsiveness, poor concentra-

tion and negativity. Hearing this information will help disabuse your employees of the notion that you’ll think poorly of them for taking their full vacation.

As with all important workplace matters, the key to vacation compliance is to measure and manage it. Keep track of how many vacation days employees have taken, and give periodic updates. Ideally, work it into performance planning at the beginning of the year. (Research has shown that vacations planned more than a month in advance are restorative, whereas the stress of last-minute vacations can negate their positive impacts.) If getting employees to use their full vacation allotment is a challenge, make tracking it public to increase

SUGARY DRINKS MAY DODGE TAX HIKE AS PALACE COMPROMISE

ANGARA: “He [Dominguez] was indicating they might be willing to trade the SSB, but in exchange for full passage of the higher excise tax on fuel products.”

By Butch Fernandez @butchfBM

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alacañang signaled its willingness to drop the Palace-endorsed tax increase on sugar-sweetened beverages (SSBs) in exchange for retaining the additional P6 excise tax on fuel products as part of a compromise explored by Executive and Legislative officials to facilitate approval of the Duterte administration’s Tax Reform for Acceleration and Inclusion (TRAIN).

Sen. Juan Edgardo M. Angara on Thursday said the compromise was conveyed during a recent Palace meeting between President Duterte and Senate leaders, where the fate of the pending tax bills was discussed.

Interviewed at the sidelines of Thursday’s Senate Ways and Means Committee hearing on the TRAIN bill, Angara clarified it was not Duterte himself who manifested willingness to strike a compromise with Congress on the tax bills.

“No, that is Finance Secretary See “Sugary drinks,” A2

See “Vacation time,” A2

n japan 0.4599 n UK 65.8377 n HK 6.4773 n CHINA 7.5842 n singapore 37.1285 n australia 39.9197 n EU 59.5354 n SAUDI arabia 13.4986

Source: BSP (10 August 2017 )

BMReports BusinessMirror

A2 Friday, August 11, 2017

Tourists from SoKor, US, China lift visitor arrivals in PHL in H1 Continued from A12

decreases noted even from neighboring markets in Asia, such as Singapore (-8 percent), Thailand (-19.5 percent), Hong Kong (-21 percent), South Korea (-1.2 percent), Macau (-23.3 percent) and Taiwan (17.7 percent). Even visiting overseas Filipinos fell by 19.7 percent in June 2017 from June 2016.

I n a te x t mess a ge to t he

Vacation time. . . positive peer pressure.

For some employees, not taking time off is actually a selfish move.

They find it arduous to prepare everything for their absence and conclude that it’s just not worth it. Your role is to make preparing for vacation as seamless as possible. Over the long term, establishing backups for each position and codifying processes make it easier for employees to be away, knowing their job is in good hands. In the short term, provide a template for employees to document their activities and projects, and assign someone to cover each. Start this conversation a couple of weeks before vacation so

Sugary drinks. . .

[Carlos G.] Dominguez III. He was indicating they might be willing to trade the SSB but in exchange for full passage of the higher excise tax on fuel products,” Angara told reporters, referring to the P6 fuel-tax hike that the House passed in increments of P3 for the first year of implementation, P2 in the second year

BusinessMirror, DOT Spokesman and Assistant Secretary for Public Affairs, Communications and Special Projects Frederick M. Alegre explained: “It is due to seasonal factors and, admittedly, there is an effect from the declaration of martial law and travel advisories from foreign governments [regarding terror threats in the south].”

But he was quick to add that the

Continued from A1

that as many tasks as possible can be finished in advance. A smooth getaway this year will increase the likelihood that the person will take more vacation next year.

But your efforts to encourage people to take time off will be for naught if you reinforce the wrong behavior during vacation. Make it clear before employees leave that you don’t want them checking their e-mail or voicemail.

When possible, exclude them from group e-mails. Instead, save a list of things that you want to cover when they return.

A lthough vacations are for unplugging, many employees fear

Continued from A1

and P1 for the third year.

Asked if the senators would be amenable to the Palace proposal, Angara said he told Dominguez they would need some time to study the options, as senators are also inclined to reduce the P6 fuel excise-tax hike.

Angara assured that the Senate

DOT is “launching a massive campaign in its major markets: Korea, China and Japan” to counteract the slowdown in arrivals.

Duterte declared martial law in the entire island region of Mindanao on May 23, owing to the clashes between government troops and purported elements of the jihadist terror groups. Prior to the clashes, foreign governments already warned of possible terror

threats in Central Visayas and Mindanao, advising its citizens to avoid these areas.

For June 2017, total visitor arrivals rose a slight 3.42 percent to 474,854. On a monthly basis, visitor arrivals have been declining from its peak of 631,639 reached in Januar y 2017. Subsequent months showed the slowdown in arrivals: February, 579,178; March, 574,065; April, 565,098;

and May, 532,757.

June 2017 also showed the lowest annual growth rate at 3.42 percent, coming from May at 19.6 percent; April, 19.8 percent; March, 12.5 percent; February, 5.36 percent; and January, 16.5 percent.

Due the monsoon season, overall visitor arrivals are expected to remain weak, but are seen picking up by October or November.

the avalanche of e-mails that will await them. To increase the use and quality of vacation time, make returning from it less painful. Ideally, schedule a day or a half day for the person to catch up and leave the other employees covering the role.

If you have flexibility as a manager, allow the person to work from home on the first day back to help with overcoming jet lag or tackling laundry. Small gestures that create a little breathing room will ensure that you don’t erode the vacation’s benefits right away.

One of the benefits that you’ll want to capitalize on is the time for the brain to focus on other things.

This resting phase allows it to consolidate all the information it has learned over the year. Changing

gears also promotes insight and creativity. Take advantage of these perks by scheduling a long meeting with the person a few days after his vacation. Lavishing him with attention will reinforce his choice to take time off and provide the opportunity for a different kind of conversation. This meeting is an ideal time to talk about process improvements, challenging stakeholder issues or career development, all of which will feel more manageable after a vacation.

Even if you try proactive strategies, some of your team might still leave unused vacation time.

Don’t ignore it. Make this a subject for feedback. Try something like: “I notice you have seven unused vacation days. I checked, and

this is the third year in a row you haven’t taken all of your vacation.

I’m concerned about your ability to bring your best if you’re not getting an opportunity to fully unplug. When are you going to schedule those days?”

But before you implement these strategies, check your own vacation balance. If you’re a vacation violator, be honest. Opening up about why you haven’t taken time off and what you’re going to do to change that might help others get there with you. The New York Times News Service

Ways and Means Committee is not rushing to endorse a compromise bill with the Palace, saying: “We are still studying the implications.”

For instance, Angara affirmed they are well aware of the implications, admitting that “of course, we were contcerned about inflation”.

Even the Palace, he added, has yet to convey a firm position on the possible compromise formula trading SSB

for higher fuel-excise tax. “Not yet.

We are still at the discussion point. It was just raised by the finance secretary…’like what do you think?’”

Angara hastened to clarify they were not engaged in “bargaining” in meeting with the Executive officials. “I think it was just a discussion.”

The senator said he was expecting another round of meeting with the administration’s economic managers on

the pending tax bills “if not this week, maybe next week”.

At the same time, Angara expressed confidence the Palace economic managers would be “receptive” to earmarking additional revenues from government’s higher-tax impositions. He surmised Palace officials realized there is a bigger chance of passing higher-tax bills if the taxpayers and lawmakers know where the money would be spent.

The author Liane Davey is the cofounder of 3COze Inc. and author of You First: Inspire Your Team to Grow Up, Get Along, and Get Stuff Done.

www.businessmirror.com.ph

Budget. . .

Continued from A12

December 31, 2017, and I doubt very much if [the] DICT will be able to utilize these funds before the year ends. So instead of wasting these funds, I would rather use the money to support the higher-education law for free tuition and miscellaneous fees for students in SUCs, LUCs, TVIs,” Nograles said.

Also, he said an additional P5 billion can be sourced from the DAR and P30 billion from the DOTr. “Another department with low utilization rate is the Department of Agrarian Reform that failed to utilize P6 billion in 2015, and failed to obligate P5 billion in 2016,” he added.

Nograles said the DOTr, on the other hand, failed to use P33 billion in 2015, and in 2016 “they have, so far, failed to obligate P30 billion of their budget allocation”.

While allocations under the 2015 and 2016 General Appropriations Acts cannot be tapped for the 2018 national-expenditure program, the chairman of the appropriations committee said they can be programmed for spending under a supplemental budget.

Rates. . .

Continued from A1

“Moreover, as credit activity expands in line with output growth, the economy’s improving absorptive capacity is, likewise, seen to be sustained, thus, mitigating inflation pressures over the long run,” he added.

Espenilla also said the optimistic view is validated by buoyant consumer data, business sentiment and, certainly, by ample liquidity in the system.

The Philippine Statistics Authority (PSA) is scheduled to release the second-quarter output data within the month.

“With these considerations, the Monetary Board believes that prevailing monetary policy settings continue to be appropriate. Looking ahead, the BSP will remain vigilant against any risks to the inflation outlook and will adjust its policy settings as needed to ensure that future inflation stays aligned with the medium-term target while being supportive of sustainable economic growth,” Espenilla said.

Earlier this week, the International Monetary Fund (IMF), likewise, said: “When we look at the world, we do see interest rates are going to increase, and this is most likely going to have an impact on the Philippines.

We would expect higher interest rates in the Philippines down the road in line with global tightening of financial conditions, but we don’t see the need to tighten monetary policy stance today,” IMF Mission Head Luis Breuer said at the conclusion of its so-called Article IV consultations with the Philippines.

Free tuition. . .

Continued from A12

Aside from this, de Vera said SUCs may adopt the framework of the medicine program of the University of the Philippines (UP) Manila. Aspiring doctors studying in UP Manila are required to undergo return-service program after graduation in compliance with their scholarship agreement. “[SUCs] will probably or may adopt that as part of the admission policies so that if you don’t want to do return service, then you pay for [your tuition],” the CHED official said.

However, de Vera said it will still be the call of the school administration to implement a return-service agreement, depending on its admission and retention policies.

Economists have criticized President Duterte’s decision to sign the Universal Access to Quality Tertiary Education Act, saying it will not benefit the poor.

Echoing the opinion of the government’s economic team, experts have warned that the free-tuition scheme is not sustainable since it has given away too much “freebies” recently, including free housing to a group of urban-poor settlers.

They also said the government will have to give up some programs and projects to make room for free tuition in SUCs.

news@businessmirror.com.ph

The Nation BusinessMirror

PCOO exec, media brat pack clash over DO on presidential coverage

By Elijah Felice E. Rosales @alyasjah

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embers of the Malacañang Press Corps (MPC) on Thursday clashed with an official of the Presidential Communication Operations Office (PCOO) over a department order (DO) allowing social-media practitioners to cover the activities of the President.

In a news briefing, reporters from various news outfits questioned the intention of DO 15 of the PCOO allowing social-media practitioners to cover the activities of the President.

Under DO 15, any person 18 years of age and with at least 5,000 followers on social media may cover news briefings in Malacañang and events of the President, which, before DO 15, was solely reserved for the MPC. PCOO Assistant Secretary Michel Kristian R. Ablan said there are guidelines on the accreditation of social-media practitioners intending to cover the Office of the President. One of which is that the social-media practitioner may not pass on to another person his privilege to cover.

“We added the laws of accreditation as an important section in the policy because we saw that once we accredit social-media practitioners in Malacañang and PCOO activities, they may pass on the accreditation pass to another person that we did not screen,” Ablan said.

However, a reporter for an online news outfit said the order might imperil the security and life of the President since the 5,000 follower requisite may just be used by any social-media practitioner or blogger with ill inten-

tions to get inside the Palace or, worse, get near the President.

Another reporter asked what output the PCOO is expecting from the socialmedia practitioners allowed to cover the President. To this, Ablan said it expects none from the practitioners as they are given the right to publish as they may.

Ablan added the PCOO will allow profanities in its contents about the President’s activities, which mainstream reporters are not permitted to use. “[On] the use of profanity, the policy is silent,” Ablan said.

Another reporter from a newspaper said the department order insults journalists who rose to the ranks through years of serving the mass media industry. “If you’re in the mainstream, some will have to begin in the police beat, in general assignments, before being given the task to cover the President.

Now you have bloggers, who are not well-versed with communications and journalism, allowed to cover Malacañang,” the newspaper reporter said.

DO 15 earned online ire for allegedly allowing social-media users without knowledge of media ethics the privilege to report on the activities of the President. A number of journalism and communication students said the order is insulting to their degree, given that their future profession will be handed out to any person 18 years of age and with at least 5,000 followers on social media.

According to Ablan, the order was issued as a form of gratitude of the President to “bloggers who supported him during the campaign”.

Editor: Vittorio V. Vitug • Friday, August 11, 2017 A3

Espenido to LGU officials in narco trade: Quit or die

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By Joel R. San Juan

@jonlmayuga

ONTROVERSIAL Ozamiz City Police Chief Insp.

Jovie Espenido has warned local officials in his next area of assignment to immediately resign if they are involved in illegal drugs for them to live longer.

Espenido led the operations last week, which resulted in the death of Ozamiz City Mayor Reynaldo Parojinog Sr. and 14 oth-

ers, including other members of Parojinog’s family.

The Parajinogs were among the local officials earlier tagged

by President Duterte in the country’s illegal-drug operations.

National Police chief Director General Ronald M. dela Rosa earlier said Espenido is a sought-after official in the campaign against illegal drugs, with local officials asking for his assignment in their areas.

Dela Rosa said the next target in the government’s war against illegal drugs is likely where Espenido would be assigned.

Pending his reassignment, Espenido said he would continue to perform his duties and comply with the orders of the higher-ups.

When asked about his message to those involved in illegal drugs where he would be assigned next,

Espenido answered: “They should resign if they are involved.”

When pressed why these officials need to resign, Espenido replied “Para humaba buhay ba [So they can live longer]”.

Espenido was among the awardees as the PNP celebrated its 116th founding anniversary last Wednesday.

He bagged the PNP’s Individual Award for Anti-Illegal Drugs Operation.

The police official was at the Department of Justice on Friday to follow up on the complaint filed against him and his men in connection to the encounter with Martilyo Gang members in Ozamiz City in July.

BOC’s Estrella quits post amid probe on ₧6.4-B shabu shipment

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NOTHER official of the Bureau of Customs (BOC) has offered to quit his post, amid allegations he received payola money to allow the entry of P6.4 billion in illegal drugs.

BOC-Customs Intelligence and Investigation Service (BOC-CIIS) Director Neil Anthony Estrella said he decided to submit his courtesy resignation out of delicadeza,

while insisting his innocence over allegations made by Customs broker Mark Taguba during a House inquiry into the smuggling of the said shabu shipment.

Estrella, who headed the unit that conducted the illegal-drug operation on May 26 in a warehouse in Valenzuela City, is the second Customs official who quit from the agency following

Taguba’s testimony.

Import Assessment Service Director Milo Maestrecampo’s, name was mentioned by Taguba as among the Customs officials receiving tara, although their names were not specifically included in the list presented before Congress.

Both Estrella and Maestreocampo are retired military officers.

“I deny in the strongest possible

terms having received money or any form of bribe from Mr. Mark Taguba. As he himself admitted, he merely relied on text messages. I am not on his list,” Estrella said in his one-page resignation addressed to President Duterte and coursed through Customs Commissioner Nicanor E. Faeldon and Finance Secretary Carlos G. Dominguez III. Joel R. San Juan

Economy

A4 Friday, August 11, 2017 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

Neda’s Pernia sees ‘tepid’ factory output growth in coming months

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By Cai U. Ordinario

@cuo_bm

he rainy season, US interest hikes and protectionism could cut the country’s manufacturing output in the coming months, according to the National Economic and Development Authority (Neda).

In a news statement issued on Thursday, Socioeconomic Planning Secretary Ernesto M. Pernia said, however, that he remains optimistic about the sector’s performance in the second semester.

The Neda said the manufacturing sector grew by an average of 10 percent in the first six months of 2017 on the back of strong factory output coming from the food sector.

This is higher than the 9-percent average growth posted in the same period last year.

“Looking ahead, the outlook for the manufacturing sector remains optimistic on the back of favorable domestic conditions, such as stable inflation rate, robust economic demand, increased investments and business confidence,” Pernia added. “[But] we need to be ready for possible disturbances in business activi-

ties during the rainy season. External risks, on the other hand, include the planned interest-rate hikes of the US and the inward-looking trade policies of major economies,” he added.

Pernia said there is a need to expand production capacity and to encourage entry of new manufacturing firms so as to keep prices low and stable.

He added the government is addressing this in terms of investing heavily on infrastructure and streamlining government procedures to reduce the cost of doing business in the Philippines.

The data is based on the Monthly Integrated Survey of Selected Industries (Missi) for June 2017 of the Philippine Statistics Authority.

In June the volume of production index and value of production index for manufacturing

increased by 8.1 percent and 5.1 percent, respectively, from their June 2016 levels.

The Neda said the increases were driven by the increase in construction-related and exportoriented products, food manufacturing, transport equipment and petroleum products.

The agency added the increase in the production of basic metals, fabricated metal products and

non-metallic mineral products boosted the construction sector.

Leather products and footwear also led the increase in production of export-oriented goods.

The Missi is a report that monitors the production, net sales, inventories and capacity utilization of selected manufacturing establishments to provide flash indicators on the performance of the manufacturing sector.

news@businessmirror.com.ph

DTI seeking ₧2-B budget hike from Congress to finance CARS Program

By Catherine N. Pillas @c_pillas29

T

Looking ahead, the outlook for the manufacturing sector remains optimistic on the back of favorable domestic conditions, such as stable inflation rate, robust economic demand, increased investments and business confidence. [But] we need to be ready for possible disturbances in business activities during the rainy season. External risks, on the other hand, include the planned interestrate hikes of the US and the inwardlooking trade policies of major economies.”—Pernia

‘Microinsurance key to disaster resilience’

Rice stocks down 14.08%–PSA

By Jasper Emmanuel Y. Arcalas @jearcalas

By Rosabell C. Toledo | Correspondent

T

he country’s rice inventory as of July 1 declined by 14.08 percent to 2.347 million metric tons (MMT), from 2.732 MMT recorded a year ago, according to the latest report of the Philippine Statistics Authority (PSA).

Despite the decline in stocks, the PSA said the total rice inventory during the period is equivalent to the rice-consumption requirement of Filipinos for 69 days.

“Stocks in the households would be enough for 29 days, those in commercial warehouses for 35 days and those in National Food Author it y [NFA] depositor ies for five days,” the PSA said in its monthly report, titled “Rice and Corn Stocks Inventory July 2017,” published on Thursday.

Of the rice inventory as of July 1, the PSA added 42.37 percent were with the households, 51.03 percent were in commercial warehouses and 6.60 percent were in NFA depositories. Almost 70 percent of NFA stocks consisted of imported rice.

PSA data showed that NFA stocks during the period reached 154,960 metric tons (MT), while commercial warehouses accounted for 1.198 MMT. Households accounted for 994,830 MT. “Compared with the previous year, rice stocks in the NFA depositories dropped by 83.04 percent,” the report read.

“However, stocks in households and in commercial warehouses grew by 1.47 percent and 42.83, respectively,” it added.

On a monthly basis, rice stocks across all sectors were lower compared to their levels in June.

The PSA said stocks in the households were down by 7.84 percent, while stocks held in commercial warehouses declined 7 percent.

Rice stocks in NFA depositories declined by almost a quarter, or by 24.49 percent, month-on-month.

Data from the PSA showed that the total rice inventory as of July 1 is 8.75 percent lower than the

he Department of Trade and Industry (DTI) is asking Congress to increase its 2018 budget by 41 percent, or nearly P2 billion more of its allocation this year, as the agency gears up to release the first tranche of government support for the Comprehensive Automotive Resurgence Strategy (CARS) Program.

According to the DTI’s budget proposal, the DTI is eyeing a total new appropriations for next year to amount to P6.57 billion, from 2017’s P 4.6 billion. The P6.57 billion excludes the budget for attached corporations, such as the Philippine Economic Zone Authority and Small Business Corp.

Among the Office of the Secretary’s five attached agencies partaking in the budget, the heftiest increase will be allocated to the Board of Investment (BOI), or a 415.8 percent hike, from last year’s P390 million to P2 billion.

The P1.6-billion increase is due to the roll-out of the BOI’s CARS, program next year, where an amount of P1.64 billion was proposed to fund the Fixed Investment Support (FIS) incentive promised to carmakers.

The BOI pledged total government support of P27 billion to be given to three carmakers over the six-year duration of the program.

However, since only two participants qualified for the program, the total support may be reduced.

The other attached agencies with a share in the budget include the Construction Industry Authority of the Philippines (CIAP), the Philippine Trade Training Center, Design Center of the Philippines and the Construction Manpower Development Foundation. Of these, only the CIAP’s budget was reduced by 8 percent.

On a program basis, the DTI has a budget of P5.1 billion.

The CARS fall under the Exports and Investments Promotion and Development program of the DTI. The umbrella program is getting 48 percent of the total P5.1 billion, or P2.5 billion.

Micro, small and medium enterprises development corners the next biggest share of 27 percent, or P1.3 billion.

Industry Development Program’s share is at 11 percent, amounting to P550 million.

The BOI, under the DTI, spearheaded the creation of the CARS in 2013, in a bid to attract investments in the auto industry and make the Philippines an automotive hub in the Asean region.

Currently, vehicles locally assembled in the countr y face a $1,800 gap in production cost compared to neighboring manufacturing countries.

The program aims to boost the local auto industry’s competitiveness by bridging this gap, essentially providing a $1,000 per unit fiscal support through CARS.

O

Easy does it Construction workers install the overhead beam of a building at the Bonifacio Global City (BGC) in Taguig City. Construction activities in BGC has remained on the upswing owing to the growing demand for commercial and residential space in the area. NONOY LACZA

83.04% The decline in rice stocks in NFA depositories, but stocks in households and in commercial warehouses grew by 1.47 percent and 42.83, respectively, according to the PSA

2.572 MMT posted in June.

The government periodically

monitors rice inventory to determine whether it would need to import the staple to boost local stocks.

During the period PSA data showed that total corn-stock inventory tripled to 683,620 MT, from last year’s record of 215,920 MT. However, the corn-stock inventory as of July 1 was also 30.16 percent lower than the 978,860 MT recorded in June.

The PSA said the bulk of cornstock inventory in July, or 89.71 percent, was in commercial warehouses, while households accounted for 9.48 percent. NFA depositories accounted for only 0.81 percent.

Corn stocks in commercial warehouses amounted to 613,270 MT, 64,810 MT in households and 5,540 MT in NFA warehouses.

“Corn stocks in all sectors increased compared with their levels the previous year. Stocks in the households grew by 36.35 percent, in commercial warehouses by 264.97 percent and in NFA depositories by 1,487.97 percent,” the report read.

“Month-on-month, corn stocks in the households in commercial warehouses and in NFA depositories decreased by 29.40 percent, 30.37 percent and 12.96 percent, respectively,” it added.

N its second year of hosting a multistakeholder disaster resilience forum, Cebuana Lhuillier on Wednesday again emphasized the role of microinsurance coverage in preparing Filipinos for both natural and man-made calamities.

The forum was organized in partnership with the Insurance Commission (IC), the Climate Change Commission and international development organization Deutsche Gesellschaft für Internationale Zusammenarbe (GIZ). Entitled “2017 READY-All Sectors In: Making Everyone DisasterResilient”, the focus was on farmers and fishermen, sectors described as being the most vulnerable when disaster strikes, therefore the sectors that would benefit most from microinsurance coverage.

The forum was held in a Makati City hotel.

Cebuana Lhuiller President and CEO Jean Henri Lhuillier stated in his opening address that in the past two decades, natural calamities and disasters “affected the lives of millions and impacted 80 percent of the local economy”.

“To live with the effects of these natural disasters has become the ‘new normal’ to many Filipinos. We at Cebuana Lhuillier, together with our partners—the Insurance Commission, the Climate Change Commission and GIZ—believe that now, more than ever, is the best time to work together to formulate strategies that will help us inform, empower and protect millions of Filipinos against the continuous onslaught of natural disasters,” he said.

Microinsurance as a type of coverage geared toward low-income households that has premiums within the minimum-wage worker’s reach was cited by various speakers in the forum as something that can address the immediate need of ordinary households in the aftermath of disaster.

In his speech, IC Acting Division Manager for Microinsurance Jose Paulo Roxas lamented the fact that microinsurance coverage dropped by 6.3 percent in the first quarter of 2017 compared to the end of last year. He said around 28 million Filipinos were covered as of year-end 2016, while only around 26.6 million as of the first quarter this year.

He said, however, the IC looks forward to raising this number toward the year’s last half.

“We are quite optimistic that it will still increase before the year ends.

Hopefully, we can cover at least 31 million lives,” he added.

He explained that, first and foremost, Filipinos have to be more aware that microinsurance as a product exists and has, in fact, been available in the local market since 2010. This way, microinsurance penetration in the country could improve from its current low levels.

Roxas said the IC continues to conduct information drives and education campaigns about microinsurance.

Cebuana Lhuillier, for its part, offers microinsurance programs, like NegosyoCare, which is geared toward protecting micro, small, and medium enterprises (MSMEs) from damages to property caused by fire, typhoon and flood, and even burglary and robbery.

By targeting agricultural MSMEs, along with other vulnerable enterprises, Cebuana Lhuillier and its partners and allies in advocating disaster preparedness hope to reduce the impact of calamity onslaught in the country, as records from the National Disaster Risk Reduction Management Council still show major gaps in the country’s disaster preparedness. For instance, in 2014 and 2015, the local agriculture sector alone suffered a loss of P60-billion due to tropical cyclones. Very recently, Supertyphoon Lawin left agricultural damages estimated at P18.4 billion. These are numbers that microinsurance advocates hope to shrink.

The World BusinessMirror

Friday, August 11, 2017

A5

S. Korea, Japan warn Kim vs firing missile at Guam

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outh Korea and Japan warned North Korea that it would face a strong response if it carried through with a threat to launch a missile toward the US territor y of Guam. Defense Minister Itsunori Onodera said it would be legal for Japan to intercept a missile aimed at Guam, Kyodo News reported.

North Korea’s threats to strike around Guam poses a serious challenge, a spokesman at South Korea’s Joint Chiefs of Staff told reporters on Thursday.

“We give a strict warning,” the spokesman said. “If North Korea commits provocations despite our stern warning, it will face a strong response from South Korea’s military and the US-South Korea alliance.” Responding to US President Donald J. Trump’s warning to unleash “fire and fury”. North Korea outlined a detailed plan to fire four Hwasong-12

intermediate-range ballistic missiles at Guam by mid-August. They would fly over southwestern Japan and land as close as 30 kilometers from Guam, the Korean Central News Agency (KCNA) reported on Thursday.

South Korea’s Kospi index fell as much as 1.2 percent as foreigners sold shares, before paring the drop to 0.4 percent at the close. The won weakened 0.6 percent against the dollar, touching the lowest level in almost a month. Hong Kong’s stock market saw heavy selling, while the Topix index in Tokyo closed little changed. The yen climbed 0.1 percent.

More than 3,000 km southeast of North Korea, Guam is an important strategic hub for the US military, which has air and naval bases, as well as missiledefense launchers on the island.

“Sound dialogue is not possible with such a guy bereft of reason, and only

absolute force can work on him,” KCNA reported, citing a statement in response to Trump by a general of the Korean People’s Army (KPA). “The military action the KPA is about to take will be an effective remedy for restraining the frantic moves of the US in the southern part of the Korean peninsula and its vicinity.”

South Korea’s government plans to hold a national security meeting later on Thursday to discuss North Korea’s missile threat. North Korea first fired a missile over Japan in 1998, prompting the Japanese government to initiate its current ballistic missile-defense system with the US. While a second attempt failed in 2005, North Korea again succeeded in launching one in 2009 that flew over northern Japan and continued for another 3,000 km before landing in the Pacific.

Bloomberg News

US officials offer mixed messages on N. Korea

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RIDGEWATER, New Jersey—Senior US officials sent mixed signals on North Korea on Wednesday, as President Donald J. Trump’s “fire and fury” warning rattled allies and adversaries alike, a sign of his administration’s deep divisions as the outcast state once again threatened to wage nuclear war on the US. The president’s advisers calibrated his dire warning with statements that, if not directly contradictory, emphasized different points.

Secretary of State Rex W. Tillerson stressed diplomacy and reassured Americans that they could “sleep well at night,” while Defense Secretary Jim Mattis said North Korea risked “the end of its regime and the destruction of its people” if it did not “stand down.”

North Korea gave no indication that it would do so. In a statement late on Wednesday, the North Korean military dismissed Trump’s fire-and-fury warning on Tuesday as a “load of nonsense” and said only “absolute force” would work on someone so “bereft of reason.”

The military threatened to “turn the US mainland into the theater of a nuclear war” and added that any US strike on North Korean missile, and nuclears targets would be “mercilessly repelled”.

The statement also said that the North Korean military would finalize a plan by mid-August to fire four midrange missiles into the waters off the Pacific island of Guam, a US territory used as a strategic base, to create a “historic enveloping fire.”

The spiral of fighting words left the Trump administration debating how to handle a standoff that has defied three presidents and grown only more ominous in recent weeks as North Korea successfully tested intercontinental ballistic missiles for the first time.

Neither Tillerson nor Mattis had reviewed in advance Trump’s threat on Tuesday, when he said North Korea “will be met with fire and fury like the world has never seen.”

And the dissonance in their own follow-up statements reflected the struggle inside the Trump administration.

“I don’t think there is a single policy at work,” said Ellen L. Frost, a longtime Asia specialist at the East-West Center, a Honolulu-based research organization. “I’m not even sure that Trump cares about having a consistent policy on any subject.”

Instead, she added, the president’s fire-and-fury threat was a play to show toughness to his political base “followed by more nuanced cleanup operations on the part of Tillerson and Mattis, who are walking a political tightrope.”

Trump remained out of public sight on Wednesday at his golf club in Bedminster, New Jersey, where he is spending most of a 17-day working vacation.

But he posted a link on Twitter to a news report on his threat, and followed up by boasting that he had ordered the modernization of America’s nuclear arsenal.

“Hopefully we will never have to use this power,” he wrote, “but there will never be a time that we are not the most powerful nation in the world!”

US allies in Japan and South Korea were caught off guard by Trump’s threat, as were other regional players like China and Russia. Analysts reported deep anxiety over the prospect that a war

of words could easily turn into a real one. But some discounted Trump’s comments as the sort of bombast they have become accustomed to from a president who has publicly assailed not just enemies, but even allies, like Germany, Canada and Mexico. The difference is that Germany is unlikely to respond to a presidential tirade with an attack on Guam, as North Korea threatened after Trump’s warning.

Tillerson took on the role of soother, telling reporters as he returned from a trip to Asia that he saw no reason to believe that war was imminent. He urged North Korea to engage in talks about its nuclear program.

“I think Americans should sleep well at night, have no concerns about this particular rhetoric of the last few days,” Tillerson said as his plane stopped to refuel in Guam, the very island that North Korea threatened to target.

He added, “Nothing I have seen and nothing I know of would indicate that the situation has dramatically changed in the last 24 hours.”

Tillerson said Trump simply chose the sort of attention-grabbing words that the North Korean leader would use.

“What the president is doing is sending a strong message to North Korea in language that Kim Jong Un would understand, because he doesn’t seem to understand diplomatic language,” Tillerson said. Hours later, Mattis issued a written statement that, while not as florid as Trump’s comments on Tuesday, still held out the possibility of a strong retaliation that could destroy much of North Korea.

“While our State Department is making every effort to resolve this global threat through diplomatic means, it must be noted that the combined allied militaries now possess the most precise, rehearsed and robust defensive and offensive capabilities on Earth,” Mattis said.

North Korea’s military, he added, “will continue to be grossly overmatched by ours and would lose any arms race or conflict it initiates.”

At the urging of the Trump administration, the UN Security Council unanimously approved new sanctions against North Korea last Saturday. But even as China and Russia supported the measure, it was unclear how hard they would work to enforce it.

Some saw Trump’s message as aimed at providing an incentive to Beijing to do more to avoid war, although it also risked disrupting the very alignment he had been trying to forge.

Mattis, in his statement, stressed the international solidarity against North Korea: “Kim Jong Un should take heed of the United Nations Security Council’s unified voice and statements from governments the world over, who agree the DPRK [Democratic People’s Republic of Korea] poses a threat to global security and stability. The DPRK must choose to stop isolating itself and stand down its pursuit of nuclear weapons.”

While the State Department insisted that the administration was speaking with “one voice,” analysts said that voice was not necessarily a consistent one.

“Clearly there is not a coordinated messaging strategy,” Evan Medeiros, the managing director at the Eurasia Group and a former Asia adviser to President Barack Obama, said by telephone

from Tokyo. “This is being put together incrementally, and of all the countries and all the issues you deal with, North Korea is not the one to be kludging together statements by the president and Cabinet secretaries because the risk of miscalculation is so high.”

Alexander Vershbow, a former ambassador to South Korea, said that the Trump administration “policy seems incoherent”

and that the threat of military action “will likely harden the North Koreans’ stance” and make it more difficult to get China to follow through on its support for the UN sanctions.

“If denuclearization is still the goal, the only way to get there is through increased Chinese pressure,” Vershbow said. “Since there is no viable military option, the only other course of action is to develop a long-

term deterrence and containment strategy— but that means accepting the unacceptable,” North Korea as a nuclear power.

That, so far, is one thing Trump has made clear he would not accept. His administration has sent conflicting signals about whether it would entertain direct talks with the North Korean government.

New York Times News Service

The World

BusinessMirror Though increasingly worried over Washington’s word war with North Korea A8

Friday, August 11, 2017

Guam’s residents feel US patriotism

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AGATNA, Guam—The tiny US territory of Guam feels a strong sense of patriotism and confidence in the American military, which has an enormous presence on the Pacific island. But residents are increasingly worried over Washington’s escalating war of words with North Korea.

The people of Guam woke up on Thursday to another pointed threat from Pyongyang, which vowed to complete a plan to attack waters near the island by mid-August—adding a timeline to a threat from a day earlier that North Korea would create an “enveloping fire” around Guam.

Like other US territories, Guam has a sometimes complicated relationship with the US mainland but many across the island say despite the threats and concerns they feel reassured and protected by the military—especially in times of tense, geopolitical sparring.

The American military presence on Guam consists of two bases—Andersen Air Force Base in the north and Naval Base Guam in the south—which are home to 7,000 US troops.

“I feel that the presence of the military on Guam will help us a lot,” said Virgie Matson, 51, a resident of Dededo, Guam’s most populated village. “They are here to protect the islands, just in case something happens.”

The possibility of a nuclear confrontation is considered remote, but international alarm has been escalating in recent days.

In the latest development, Gen. Kim Rak Gyom, who heads North Korea’s rocket command, said in a statement carried by state media that his country was “about to take” military action near Guam.

He said the North would finalize a plan by mid-August to fire four mid-range missiles hitting waters 30 kilometers (km) to 40 km away from the island.

7,000 The number of US troops on its two bases on Guam, Andersen Air Force Base in the north and Naval Base Guam in the south

It’s not the first time North Korea has threatened Guam, which is a crucial, strategic hub for US forces in the Pacific.

Andersen Air Force Base houses a Navy helicopter squadron and Air Force bombers that rotate to Guam from the US mainland, including the B-2 stealth bomber, B-1 and B-52. Their location in a US territory means its military is just hours from potential flashpoints in the western Pacific.

Naval Base Guam is an important outpost for US fast-attack nuclear-powered submarines that are a key means for gathering intelligence in the region, including off the Korean Peninsula and in the South China Sea, where China has been building military bases on man-made islands that have stirred tension across Asia.

The US military has said it plans to increase its presence on Guam and will move thousands of US Marines currently stationed in Japan to the island between 2024 and 2028. “I’m pro military buildup,” said resident Gus Aflague, 60,

A family plays in the sand in Tumon, Guam, on August 10. The small US territory of Guam has become a focal point after North Korea’s army threatened to use ballistic missiles to create an “enveloping fire” around the island. The exclamation came after President Donald J. Trump warned Pyongyang of “fire and fury like the world has never seen.” AP/Tassanee Vejpongsa

whose grandfather and brother both joined the US Navy.

“North Korea has always threatened other countries. They threatened US, other countries, and they threaten Guam. It’s a propaganda, that’s how I feel,” he said, but added that the military offered an extra reassurance. “I feel safe with our military presence here—Andersen and the Navy.”

There’s a sense of patriotism among those who cite the island’s history of Guam residents serving in the US military.

The US took control of Guam in 1898, when Spanish authorities surrendered to the US Navy.

During the Vietnam War, the Air Force sent 155 B-52 bombers to Guam to hit targets in Southeast Asia. Guam was also a refueling and transfer spot for people heading to Southeast Asia, and many refugees fleeing Saigon were evacuated through Guam.

But there’s also some resentment about not being able to vote in the general election for US president. Guamanians have served in all major US wars since World War II and see military service as a source of pride. A huge red, white and blue ribbon is outside the airport terminal.

Resident Isaac Camacho, 19, says he feels Guam’s relationship with the US mainland is “a little misunderstood on their part.”

“They believe that we are not true US citizens, when we do have plenty of Chamorro people going into the US military and serving for their country and dying for their country,” he said. Chamorros are the indigenous people of Guam. “And not a lot of Americans know that.”

Guam is about 3,380 kilometers southeast of Pyongyang and 6,115 kilometers west of Honolulu in the Pacific Ocean. For

years, North Korea has claimed Guam is w it hin its missi les’ striking distance, making furious statements each time when the US f lew powerful bombers from the island ’s air base to the Korean Peninsula.

In August last year the North’s Foreign Ministry warned that all US military bases in the Pacific, including Guam, would “ face ruin in the face of all-out and substantial attack ” by the North ’s military.

In 2013 state med ia cited leader Kim Jong Un as having ordered his military to prepare plans on launching strikes on US military bases in Guam, Hawaii and South Korea, as well as the American mainland.

Guam is armed with the US Army’s defense system known as Terminal High A ltitude Area Defense, which can intercept missiles. AP

Experts: Trump team garbles climate science W

ASHINGTON—President Donald J. Trump and his Cabinet often avoid talking about the science of climate change, but when pressed what they have said clashes with established mainstream science, data and peer-reviewed studies and reports.

Even the federal government’s own reports—including a draft science study for the National Climate Assessment obtained this week by T he A ssociated Press and other media—paint an entirely different reality than what’s coming from the Trump administration.

Cooling and hoax

President Trump has not talked directly about the science since taking office, but on the Hugh Hewitt radio show in 2015 he said: “I’m not a believer in man-made global warming. It could be warming, and it’s going to start to cool at some point. And you know, in the early, in the 1920s, people talked about global cooling.”

And in a now-famous socialmedia post, Trump tweeted in 2012: “ The concept of global warming was created by and for the Chinese in order to make US manufacturing noncompetitive.”

The usual talking point among nonscientists is that in the 1970s— not 1920s—experts thought the world was cooling.

University of Georgia meteorology professor Marshall Shepherd calls this a “zombie myth” long disproven but somehow still sticking around.

Scientists looked at peer-reviewed literature between 1965 and 1979 and found only seven papers talking about global cooling, 20 neutral and 44 implying global warming, according to a 2008 analysis in the Bulletin of the American Meteorological Society.

On global warming being a hoax invented by the Chinese, the previous National Climate Assessment, National Aeronautics and Space Administration (Nasa), Environment Protection Agency (EPA), the National Academy of Sciences and many other scientific organizations say otherwise.

The American Institute of Physics in a historical timeline says the first calculation of global warming dates back to 1896 and a Swiss scientist and even earlier, in 1859, an Irish physicist noticed certain gases trap heat.

Role of humans, carbon dioxide

Key members of Trump’s Cabinet

have more recently questioned whether carbon dioxide (CO 2) and other greenhouse gases created by human activities are the primary cause for global warming.

Energy Secretary Rick Perry testifying before the Senate Energy Committee in June said: “I did not think that CO 2 was the primary knob that changes it. I don’t. I think that there are some other naturally occurring events, the warming and the cooling of our ocean waters and some, you know, other activities that occur.

I also said in the next breath that man’s impact does, in fact, have an impact on the climate.”

On CNBC in March, EPA Administrator Scott Pruitt said, “I think that measuring with precision human activity on the climate is something very challenging to do and there’s tremendous disagreement about the degree of impact, so no, I would not agree that it’s a primary contributor to the global warming that we see.”

Nasa calls humanity’s increase in greenhouse gas “the main cause of the global warming.”

The draft science report, echoing numerous previous scientific reports, precisely calculates the energy causing climate change since the industrial age. The

amount of additional warming coming from human activity— mostly burning of coal, oil and gas—is more than 40 times stronger than changes in the sun’s heat.

Nearly three-quarters of that human-caused warming is from carbon dioxide, the Nobel Prize winning Intergovernmental Panel on Climate Change said, citing “very high” confidence levels.

Modest warming

At a White House briefing in June, Pruitt quoted a New York Times opinion columnist, who is not a scientist, calling the warming that has already happened modest and belittling climate computer simulations.

Pruitt said: “I would say that there are climate exaggerators. In fact, many of you—I don’t know if you saw this article or not, but the Climate of Complete Certainty,

by Bret Stephens, that was in the New York—the New York Times talked about—and I’ll just read a quote, because I think it’s a very important quote from this—from this article. “’Anyone who’s read the 2014 report of the IPCC [Intergovernmental Panel on Climate Change] knows that, while the—while modest, 0.85 degrees Celsius,

warming of the earth’ has occurred since 1880. ‘Much else that passes as accepted fact is really a matter of probabilities. That’s especially true of the sophisticated, but fallible models and simulations by which scientists attempt to peer into the climate future. To say this isn’t to deny science. Isn’t to acknowledge it honestly.’”

W hi le 0.85 deg rees Celsius—1.5 degrees Fahrenheit— may sound modest, on a global scale that small amount of warming has resulted in weirder and w ilder weather, such as heat waves and g iant dow npours, melting glaciers, disappearing snow cover, shrinking sea ice, rising seas and increasing human health issues, according to the draft federal report. That amount of warming in 135 years is unprecedented in the history of Earth, according to studies.

As for the accuracy of climate predictions, a review of 38 past computer models by Berkeley Earth climate scientist Zeke Hausfather found that on average they had accurately predicted the levels of warming later observed.

Even with moderate carbon pollution cuts, the federal scientists project US will warm another 2.5 degrees in the coming decades. AP

www.businessmirror.com.ph

FBI agents searched Trump’s former campaign chair’s home

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A S H I NG T ON — Fe d eral Bureau of Investigation (FBI) agents looking for financial documents have searched one of the homes of President Donald J. Trump’s former campaign chairman, Paul Manafort, whose past foreign political work has been swept into the investigations into Russian interference in the 2016 election.

A Manafort spokesman confirmed the search on Wednesday.

Manafort spokesman Jason Maloni said in a statement that FBI agents had obtained a warrant and searched one of Manafort’s homes, but he would not say when the search occurred or what it was for.

“Mr. Manafort has consistently cooperated with law enforcement and other serious inquiries and did so on this occasion, as well,” Maloni said.

T he A ssoc i ated P ress h a s learned the warrant for the search on July 26 at Manafort’s home in Alexandria, Virginia, sought information, including tax documents and banking records. The Washington Post first reported the raid.

Manafort has been a subject of a long-standing FBI investigation into his dealings in Ukraine and work for the country’s former president, Viktor Yanukovych.

That investigation has been incorporated into the probe led by special counsel Robert Mueller, who is a lso scr utinizing Manafort’s role in the Trump campaign as he looks into Russia’s meddling in the 2016 election and any possible collusion with Trump associates.

Manafort, who led the Trump campaign for several months, has denied any wrongdoing. He also spoke behind closed doors to Senate investigators for an interview just one day before the search of his home.

The use of a search warrant indicates that law-enforcement officials have convinced a judge there is probable cause to believe a crime may have been committed.

A house raid can be seen as an aggressive tactic given that Manafort has been cooperating with congressional investigators and has turned over hundreds of pages of documents. It could indicate law enforcement was looking for records beyond what Manafort provided. Word of the raid is the latest revelation about Mueller’s investigation, which had been operating in relative secrecy compared with numerous congressional probes looking at the election.

In recent days, it’s become clear the former FBI director is using a grand jury in Washington as part of his investigation. A grand jury in the Eastern District of Virginia in recent months has also been used by investigators looking into former Trump national security adviser Michael Flynn.

Also, FBI agents have been asking witnesses since the spring about $530,000 worth of lobbying and investigative work carried out

by Flynn’s firm, Flynn Intel Group, according to a person familiar with the investigation.

That work sought the extradition of an exiled Turkish cleric living in the US. Through his attorney, Flynn has declined to comment on the investigation.

The person, who spoke on condition of anonymity to discuss the sensitive details of the investigation, said FBI agents have also been asking about Flynn’s business partner, Bijan Kian, who served on the Trump presidential transition. Kian has not responded to multiple attempts to contact him over several months.

In recent months, Flynn and Manafort have turned over documents to congressional committees investigating the election interference. AP

Banking&Finance BusinessMirror

news@businessmirror.com.ph

Editor: Jun B. Vallecera • Friday, August 11, 2017

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20-year bonds eyed to help rebuild Marawi

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By Rea Cu

he Department of Finance (DOF) already plans for the rebuilding of war-torn Marawi City and has tasked the Bureau of the Treasury (BTr) to evaluate the possible sale of P30 billion worth of bonds to help underwrite the plan Finance Secretary Carlos G. Dominguez III acknowledged the proposed rehabilitation and reconstruction effort for Marawi City would be massive.

According to the finance chief, the “Marawi” bonds would appeal to the patriotic sense of duty of citizens who would like to help rebuild the lives of their fellow Filipinos in the city.

“These are what you would call ‘patriotic’ bonds to help augment the funds that the government has set aside for Marawi’s rehabilitation,” Dominguez said.

National Treasurer Rosalia V. de Leon said such a project would require the sale of long-dated IOUs, probably 20 years in this case.

Earlier, Budget Secretary Benjamin E.

PPAI benefits 28% higher in 2016

@ReaCuBM

Diokno said the government would release at least P15 billion to rehabilitate Marawi City over a period of two years.

T he a l loc at ion wa s e x pl a i ned to form part of the proposed budget of the Marawi Reconstruction master plan, spearheaded by the Department of Public Works and Highways (DPWH), with an initial fund of P5 billion this year to be sourced from the 2016 and 2017 National Disaster Risk Reduction and Management Council (NDRRMC) fund.

“The initial fund of P5 billion for 2017 will be sourced from the 2016 and 2017 NDRRMC fund with a combined remaining balance of around P7.4 billion, and the 2017 contingent fund with a balance of almost P3.35 billion, both as of July

T Dominguez

2017,” Diokno said in a statement.

For 2018, a total of P25.5 billion has been allocated for disaster management, with P10 billion being allotted for the recovery and rehabilitation program of Marawi City, according to Diokno.

On Wednesday Senate President Aquilino L. Pimentel III approved the resolution for the creation of a committee to oversee the rehabilitation of Marawi City to support the call to help rebuild the city.

The committee includes Sens. Gregorio B. Honasan II, Panfilo M. Lacson, Grace Poe, Joseph Victor G. Ejercito, and Paolo Benigno A. Aquino IV. The members are tasked to monitor the government’s reconstruction program, and also submitting recommendations on matters that are deemed to require immediate improvements.

Fed official supports September start for bond reductions

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member of the Federal Reserve’s (the Fed) interestsetting committee said on Wednesday it would be appropriate for the central bank to announce next month that it will begin trimming its $4.5-trillion balance sheet, but wait until December before raising a key interest rate again.

Charles Evans, the president of the Fed’s regional bank in Chicago, said he does not expect the balance-sheet reduction to make much of a market impact because the move has been “well-choreographed”.

Speaking to a group of reporters, Evans added that he believes waiting until December to raise rates would give the Fed time to assess whether inflation is moving back toward the Fed’s 2-percent annual target.

Evans joked that he would like to see inflation rise above the Fed’s 2-percent target “at some point in my Fed career.” Evans, who has a vote on the Fed’s nine-member policy committee this year, is viewed

as a leading “dove”­—a group of Fed officials who believe it is important to push unemployment as low as possible as long as inflation remains under control.

The Fed’s two goals are to pursue interest-rate policies that foster maximum employment and price stability. The central bank has succeeded on the employment front with the jobless rate now at a 16-year low of 4.3 percent, but it has had trouble lifting prices to what it considers an optimal rate of 2-percent annual increases.

In fact this year, the Fed’s preferred measure of inflation has been backtracking, dropping to a 12-month increase of 1.4 percent in June, below the 2.2 percent 12-month gain the inflation gauge had hit in February.

Evans told reporters at a breakfast session at the Chicago regional bank that he agreed with Fed Chairman Janet Yellen that the decline stems from a number of temporary factors, including a price war for mobile-phone plans. AP

he Passenger Personal Accident Insurance (PPAI) program reported benefit payments worth P63 million in 2016, or an increase of 28 percent, according to the Insurance Commission (IC).

Insurance Commissioner Dennis B. Funa said such benefits aggregated only P49 million in 2015.

“For calendar year 2016, the total benefits paid under the mandatory insurance program amounted to P63 million, an increase of 28 percent compared to the P49 million benefits paid in 2015,” Funa added.

The data is based on the report submitted to the IC by the two accredited management companies under the current PPAI program, which are the SCCI Management and Insurance Agency Corp. (SCCI) and Passenger Accident Management and Insurance Agency Inc. (Pami).

A total of P46.25 million, or 73 percent of the P63 million, claims paid under the PPAI program, were paid as death benefits.

For the last three years, the death benefits paid continued to rise by an average 29.63 percent, from 2014 to 2016. Another P16.44 million and P320,000 were paid as medical and disability benefits, respectively, he added.

Funa said the increase in benefits paid was traced to the increase in the death benefits, from P150,000 to P200,000, under the 2015 to 2018 Enhanced PPAI program. The rise can also be attributed to the continued growth in the number of incidents.

Under the program, an increase in the number of public-utility vehicles (PUVs) insured under the PPAI program was noted, according to Funa.

“For the year 2016 a total of 392,299

Case clippings

By Justice S J Ranada Jr. DOUBLE JEOPARDY–necessary elements Double jeopardy attaches only when the following elements concur: 1) the accused is charged under a complaint or information sufficient in form and substance to sustain conviction; 2) the court has jurisdiction; 3) the accused has been arraigned and has pleaded; and 4) he or she is convicted or acquitted, or the case is dismissed without his or her consent. Thus, where the case is dismissed upon motion of the accused, double jeopardy does not attach.

David v. Marquez 05 Jun 2017

US oversight of accounting firms: The Hong Kong and ‘Big Four’ experience “In the absence of sound oversight, responsible businesses are forced to compete against unscrupulous and underhanded businesses, who are unencumbered by any restrictions on activities that might harm the environment, or take advantage of middle-class families, or threaten to bring down the entire financial system.”

—Barack Obama

O

n July 25 Michael Rapoport of the Wall Street Journal Online reported that the US Public Oversight Board (Public Company Accounting Oversight Board, or PCAOB) sanctioned Crowe Horwath (HK) CPA Ltd. from auditing US traded companies for three years. This translates to the revocation of the accounting firm’s US registration, though it may reapply after the period of restriction.

The sanction was on account of the accounting firm’s refusal to turn over the audit work papers and related documents re audits of unnamed Chinese company that PCAOB was investigating. (The oversight of PCAOB on audits of all entities traded on US stock markets extends beyond the US shores.) It was reported that Crowe Horwath admitted to its conduct in settlement with the US government audit regulator.

The report further stated that the sanction was the second that PCAOB took against a Hong Kong audit firm. The Hong Kong accounting firm PKF was barred by PCAOB in January 2016 due to the firm’s refusal to cooperate in

PUVs were insured under the PPAI program compared to the 351,157 units and 355,691 units insured in 2014 and 2015, respectively. In terms of type of units insured, the jeepney segment has the highest share with a total of 176,213 units insured,” he said.

In terms of number of units insured, the jeepney segment was followed by the sedan segment, with 90,930 units; truck segment, with 66,756 units; AUV segment, with 32,462 units; and the bus segment, with 25,938 units.

In terms of reported incidents and claims filed, a total of 1,044 incidents were reported and a total of 2,474 claims filed before the two management companies, according to the IC. “As to the number of reported incidents involving PUVs, there was an increase of 11 percent, from the 941 reported incidents in 2015 to 1,044 incidents in 2016, a majority of which involved jeepney accidents,” he added.

A total 2,474 were filed as death, medical and disability benefits.

However, there was a 43-percent increase in reported incidents involving the bus segment, from 247 incidents in 2015 to 354 incidents in 2016, he said.

Under the Insurance Code, PUVs are required to procure insurance cover for their passengers, including the driver, for accidental death and bodily injury claims.

Under the Enhanced PPAI, the maximum amount of death benefit is P200,000 per passenger, while the amount of benefits for bodily injuries is based on a schedule of benefits provided under the policy depending on the injury sustained. Rea Cu

FINEX free enterprise Dr. Conchita L. Manabat PCAOB’s investigation.

The sanctions by PCAOB also covered the “Big Four” accounting firms in the past. Rapoport said in 2015, PriceWaterhouseCoopers, Deloitte Touche Tohmatsu, KPMG and Ernst & Young paid $2 million as settlement with the US Securities and Exchange Commission over their past refusal to hand over required work papers and documents.

One major observation worth citing on news affecting the accounting profession is the role of the professional accountant expressing an opinion on the financial statements of a client. One basic principle that the professional accountant observes is the principle of confidentiality.

The Code of Ethics for Professional Accountants (developed by the International Ethics Standards Board for Accountants) enumerates circumstances where disclosure of confidential information may be

appropriate (Section 140.7) a. Disclosure is permitted by law and is authorized by the client; b. Disclosure is required by law; and c. There is a professional duty or right to disclose, when not prohibited by law.

In the cases mentioned by Rapoport, jurisdictional considerations may have been a factor in the professional accountants’ decisions not to cooperate with the US regulator and possibly, the clients’ wishes.

Close to home, there had been incidents of late involv ing listed companies w ith reference to audited financial reports of publicly listed companies. While it is a wish to have a Philippine counterpart of the PCAOB to protect the interests of the investing public and other third parties, of what relevance would it be if matters are settled for a consideration?

Dr. Conchita L. Manabat is the president of the Development Center for Finance and a trustee of the Finex Development and Research Foundation. A past chairman of the International Association of Financial Executives Institutes, she now serves as the chairman of the Advisory Council of the said organization. She is a member of the International Auditing & Assurance Standards Board Consultative Advisory Group and the International Ethics Standards Board for Accountants CAG. She can be reached at clm@clmanabat.com.

GR 209859 Tijam, J

A10 Friday, August 11, 2017 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

Falsely accused or truly guilty?

T

ransparency International (TI) is an international non-governmental organization that is based in Berlin, Germany. Founded in 1993, TI publishes the annual “Corruption Perceptions Index”, ranking countries “by their perceived levels of corruption, as determined by expert assessments and opinion surveys”.

Trying to understand a topic through “perceptions” is a tricky business.

Do opinions actually and accurately reflect reality? Going by the 2016 Corruption Index, 85 percent of humans live under a corrupt government.

But then again, looking at the newspaper headlines, Israel’s Prime Minster Benjamin Netanyahu is facing multiple police investigations for corruption. South African president, Jacob Zuma, narrowly survived a motion of no confidence in parliament, after months of growing anger over allegations of corruption.

The list and the headlines go on and on. “Corruption Is Holding Back Democracy and Prosperity in Ethiopia”. “The federal corruption trial of US Sen. Bob Menendez will begin as scheduled next month”. Ethiopia Arrests State Minister for Finance on Suspicion of Corruption”. “Man Who Advised Michelle Obama on School Lunches Arrested For Defrauding Lunch Program”.

On a scale of zero to 100—with any score below 50 being “Mostly Corrupt”—the corruption index rates 176 countries. The global average score is a dismal 43, indicating rampant corruption in a country’s public sector.

In 2016, at the top, Denmark and New Zealand both scored 90. The US (74) and Japan (72) were scored “Less Corrupt” than most. Italy and Saudi Arabia were “average” at 47 and 46, respectively. Indonesia (37), the Philippines (36), Thailand (35) and Vietnam (33) are all considered generally corrupt. With the exception of Israel, the United Arab Emirates and Qatar, stay out of the Middle East and Africa if you are looking for anything resembling an honest government.

In case you were wondering, based on the report, corruption in the Philippines is virtually unchanged since 2011. This situation must be stopped.

US President Theodore Roosevelt once said, “When they call the roll in the Senate, the senators do not know whether to answer present or not guilty.” We cannot expect politicians to take the lead in exposing and ending government corruption. The political and government process itself requires “going along to get along”, even for the honest elected and appointed public servants.

The only way to stop corruption is the sunlight of transparency and that must begin before—not after—the elections and appointments to office. Public officials do not have the right to privacy when the public good is at stake.

When a man or woman decides to enter government service, banksecrecy laws must be waived. Tax returns must be opened. A Statement of Assets and Liabilities must be verified. Of course, these are extreme measures—they are meant to be. The correlation between government corruption and unequal distribution of power in society, wealth and income inequality and bad government services is undeniable.

No longer can we, the people, rely on trusting government officials to do the right thing. We must take the initiative and take the power to bring good government back into our own hands. There should never be again a situation where traditional politics makes the decision if a man or woman is falsely accused or truly guilty. The facts must be exposed to speak for themselves.

Since 2005

BusinessMirror A broader look at today’s business

Sooner rather than later James Jimenez

spox

E

arlier this week, the House caucused and came up with a declaration of how it intended to deal with the question of the postponement of the 2017 Barangay and Sangguniang Kabataan (SK) elections. According to the reports I read, the main idea was to have the elections postponed to May 2018, and—unless I missed something important—that there would be no appointment of barangay executives.

On the one hand, this was a great development. The news coming out of the House has contributed much to the clarity of the situation. On the other—and, perhaps, more significant—hand, this isn’t quite a postponement, yet. To put it very simply, we are still just a third of the way there.

Postponing the elections requires a law; passing a law is a three-step

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the elections nationwide, the Comelec is still predisposed to invoking its authority under the Omnibus Election Code, to suspend elections.

In anticipation of this probability, the Comelec has deviated from its typical ballot-printing schedule. In less parlous times, ballots for Mindanao are often the very first ones to be printed. This ensures that those ballots are packed and shipped first, considering that many precincts in that part of the country are considered “far-flung”.

But since the suspension of the elections in Mindanao is a definite possibility, the printing of ballots for Mindanao has been bumped down in the order of priority. This way, if the elections are, in fact, suspended—a decision that will be made after the August 15 public hearing the Comelec has called for that purpose— then no money will have been spent printing ballots that won’t be used right away anyway.

Makes sense, yes? Here’s to hoping that that sort of logic scales up, sooner rather than later.

Clarifying the VAT provisions of the renewable energy law

✝ Ambassador Antonio L. Cabangon Chua Publisher

process. Steps one and two involve the House of Representatives and the Senate coming up with their own versions of the same proposed measure and then harmonizing the two.

Step three—the one that seals the deal, so to speak—is the President signing the harmonized bill. As of the moment, we’re all but done with step one, which means we now have to wait for step two.

In the meantime, the Commission on Elections (Comelec) has gone ahead with the printing of the ballots, starting on Wednesday with the 11,000 ballots bound for Batanes. With about 100,000 ballots projected to have been printed by today, Friday, at a cost of three pesos per ballot, that’ll come out to at least P300,000 already committed to the idea that we adhere to the existing schedule of barangay and SK elections. Unless something happens that stops the Comelec from pushing through with its preparations—something like a law that says Stop!—that’s not going to be the last peso we invest in this.

Incidentally, the Comelec is seriously considering suspending the holding of the elections in Mindanao, owing to the fact that the violence and terrorism currently afflicting that area, as evidenced by the declaration of martial law, really makes the holding of free and fair elections there rather iffy. In other words, even if no law is passed postponing

I

n the historic Paris climate agreement to which the Philippines is a signatory, countries have agreed to hold the increase in global average temperature to below 2°C and to pursue efforts to limit the temperature increase to 1.5°C. In order to meet this commitment, the Philippines has to transition to a clean energy economy through investments in renewable energy (RE). Although we have seen in recent years a boost in RE development, further investments in the sector are threatened by the lack of clarity over the tax provisions of Republic Act 9513, or the Renewable Energy Act of 2008 (RE law), in particular, the value-added-tax (VAT) zero-rating of purchases.

A VAT zero-rated transaction pertains to a sale by a VAT-registered person, which is subject to a zero- percent rate, meaning the tax burden is not passed on to the purchaser.

A zero-rated sale does not result to any output tax, which is the VAT on the sale of taxable goods or services.

However, in a zero-rated sale, the input tax or the VAT paid on importations of goods or local purchases of goods or services can be claimed as a tax credit or refund.

Under the Tax Code and as reiterated in the RE law, the sale of power generated through renewable sources of energy is considered zero-rated. Thus, no output tax can

be passed on by RE developers to the purchaser, i.e. transmission companies. As the sale is zero-rated, the RE developer should be entitled to claim as a tax credit or refund the input tax on its importations of goods or local purchases of goods or services. However, under the same provision, the RE law states that all RE developers shall be entitled to “zero-rated VAT on its purchases of local supply of goods, properties and services needed for the development, construction and installation of its plant facilities”. Moreover, the law provides that the provision applies to “the whole process of exploring and developing RE sources up to its

conversion into power, including, but not limited to, the services performed by subcontractors and/or contractors”. Otherwise stated, the sale that the local supplier of goods, properties and services needed for the development, construction and installation of plant facilities and for the exploration and development of the RE source is zero-rated and, thus, no VAT should be passed on by the local RE supplier to the RE developer.

In recent decisions, however, the Court of Tax Appeals has held that, since no VAT should have been shifted to the RE developer for above-mentioned purchases and, consequently, no input VAT should have been paid, a RE developer is not entitled to refund or tax credit in the event the VAT is passed on to it. Further, in one case, the said doctrine was applied to include the VAT paid on importations.

On the issue of whether a RE developer can claim VAT shifted to it by local RE suppliers, the above doctrine should be revisited. While indeed purchases from local RE suppliers are zero-rated, the RE developer should not be barred from claiming any VAT passed on to it. In one case, the Supreme Court has said that if excise taxes, an indirect tax, is shifted by the seller to the buyer, the buyer must be allowed to claim the tax refund or tax credit even if it is not the statutory taxpayer and only bears the economic burden of the tax. VAT is, likewise, an indirect

tax, and there is no reason why the same should not apply.

On the issue of VAT paid on importations, the RE law is clear-cut in stating that what are subject to a VAT zero-rate are the purchases from “local” RE suppliers. A perusal of the RE law would show the intent of the legislature to promote the development of local RE suppliers. This explains why there is no mention of importations being subject to a zerorate or even to an exemption from VAT, as this would benefit foreign RE suppliers.

To include the importations within the coverage of zero-rating not only goes against the clear provisions of the RE law but likewise creates an absurdity, as it conflicts with the “destination principle”, which serves as the basis of our VAT system. Under this principle, goods and services are taxed only in the country, where they are consumed and, thus, exports are zero-rated, while imports are taxed.

In addition, it must be emphasized that zero-rating applies only to “local” purchases of goods, properties and services needed for the development, construction and installation of plant facilities, and for the exploration and development of the RE source. It follows then that local purchases not related to the same remain to be subject to 12-percent VAT and, thus, can be claimed for refund or tax credit.

See “Reyes,” A11

Opinion BusinessMirror

opinion@businessmirror.com.ph

The other side of free tertiary education

Manners for mourning Tito Genova Valiente

Alvin Ang

EAGLE WATCH

I

N 2010 I was involved in a research on youth employment in the Philippines. In one of our focus group discussions with college graduates on their employment opportunities, graduates of local colleges and universities complained that while they received free college education, they were unable to compete for jobs and waited longer to get a job that was not related to what they studied. This was what came to my mind when I read the news that the President signed into law the Free Tuition for government tertiary and technical vocational schools.

The public finance and related issues of this policy have already been raised by colleagues in the Economics profession, and the potential benefits have also been defended by those who claim that this law will be pro-poor and will help improve the chances of poor people in the future. I will no longer argue for or against this law. Never mind the high on opportunity costs that go with it. We will respect the decision of the government making tertiary education a public good.

Besides, we trust that the government will come up with, beyond resources, a well-thought and forward looking implementing rules and regulations of the law.

This opinion zooms out and looks at the other side of the picture. Free college education addresses the supply side of human resources. There is a demand side and that is the capacity of the economy to produce jobs that will employ the future graduates. At present, the Philippines continue to grapple with the challenge of youth unemployment. The highest unemployment has been usually in the 15 to 24 age group. This is not a unique Philippine experience, even developed countries have high youth unemployment.

But in the case of the Philippines, the unemployment rate of this age group is highest among those postsecondary undergraduates at 57 percent in 2016, unchanged in the last four years. High-school graduates follow with 52 percent in 2016, and this has fallen from 56 percent in 2010. College graduates, meanwhile, recorded unemployment rates of 48 percent in 2016, an increase of about 2 percentage points from 2010. For those aged 25 to 34, unemployment rates of highschool graduates and postsecondary graduates fall to 27 percent and 37 percent, respectively, for 2016, while that of college graduates now has the highest unemployment rate of 36 percent.

These data are telling us that free tertiary education will not immediately result to jobs. There is a waiting period to get absorbed. In the meantime, college graduates of certain profession are most likely in a job that has little or nothing to do with their degrees. Consider the data from the Philippine Statistics Authority Integrated Survey on Labor and Employment (ISLE 2013-2014). A total of 753,000 job vacancies were recorded from January 2013 to June 2014, or a period

Reyes. . .

continued from A10

In sum, RE developers should be able to claim as tax refund or tax credit the VAT paid on their purchases from local RE suppliers where VAT has been passed on, the VAT paid on their purchases unrelated to RE and most especially the VAT paid on their importations.

Developing RE resources is costly and, thus, the need for incentives that make investing in clean energy attractive. Such incentives are already in the RE Law but the uncertainty created by recent CTA

of one and a half years. Of these vacancies, about 17 percent were difficult to fill. Breaking down by occupation group, the most difficult to fill were professionals (29 percent), technicians and associate professionals (25 percent) and clerical position (21.5 percent). It should be noted that clerical positions include customer service representatives and call-center agents comprising half of the total vacancies.

The top reasons cited for hard to fill vacancies were: lack of competency/ skills (29.9 percent), few applicants (26 percent) and lack of experience (16.8 percent). Meanwhile, data from the Commission on Higher Education shows that the tertiaryeducation graduates are dominated by business courses and teachers combining for about 60 percent of total graduates.

The data from the demand side is telling us that the system continues to have challenges absorbing graduates. It also shows that while it has the capacity to absorb more, the issue of quality remains to be a critical element that need to be addressed at the supply side. Likewise, the alternative provided by overseas work also makes domestic demand in need. Furthermore, despite the current vacancies, the unemployment of postsecondary to college graduates in the 15 to 24 and 25 to 30 age brackets remain relatively high. This is a clear sign of a mismatch of what the school system produces to what the industry and the economy need. In the near future, workers are at risk of replacement by artificial intelligence, including workers in business-process outsourcing.

In order to address these challenges, which will be faced by the future graduates of the free- tuition law, the government has to zoom out and ensure an environment that will help firms produce more jobs. Firms and industry should provide the right signal for schools to respond faster and quicker, using existing mechanisms and technology. The government can also direct its tertiary institutions to limit offering to the most critical courses required by the economy requiring significant adjustments from where it is today. Much of the benefits to be gained from this policy require efforts from both the public and private sectors to work closely both at the supply and demand side. We do not want to hear the same complaints I heard in 2010 for future graduates of this law.

annotations

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anners are not rules; they are reminders that, as inhabitants of a universe that may be expanding or collapsing, there are things around us that we can control, or attempt to manage. Certainly, we cannot keep death from coming, but, I am sure, we can orchestrate all human events that follow it.

I have attended many wakes for the last few months. In one of these, as I watch the chaos and disorder around me, I decided to compose in the enforced solace of my tiny space in that room, these rules. The results of my rumination follow.

1. Do not bring children to wakes or vigils. If there are no nannies or kin to take care of them, make sure your child is intelligent and charming enough to get away with some misbehavior. If your little boy keeps throwing the candies and peanuts on the floor, do not wait for the Dead to rise and smite him. It is time to take him home, with you in tow, of course.

Remember that, in a wake, children should not outnumber adults, or else, they will be like pigs in a highland society that adores these ruminants.

Like the important pigs, the children will dominate the place, transforming the parlor into a playground.

2. Do not take home any of the delicacies or sweets served in the wake. Actually, there is a taboo for this in Philippine society, but, often, food of the highest kind is served for the Dead than for the Living. Bite

your lips. Do not go into anthropological discourse about avoidance and other culturally forbidden matters. The funeral parlor is not for academic discussion. Reserve your thoughts for the next Philippine Studies conference.

3. Solemnity should pervade inside the funeral parlor. That is why there is an area outside for those who are there for the whisky and the camaraderie. Once inside, you should exert effort to be somber, your fashion included. Do not wear cocktail dress to wakes, especially if you are a man. An important part of the wake is when you walk up to where the coffin is situated. This part is called “the viewing”. The reference is to the deceased and not to you.

People come to wakes not to view you make an entrance or an exit. The best thing is to keep one’s head low, as if in a meditative bow. Once you reach the center of the parlor, when the flowers on the dais are overpowering, do not face the audience. The greatest thought for this moment is this: the most important person in the room lies in repose. Try to be like

The author is a senior associate of Du-Baladad and Associates Law Offices (BDB Law), a memberfirm of WTS Global.

The article is for general information only and is not intended, nor should be construed as a substitute for tax, legal or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported therefore by a professional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at pierremartin. reyes@bdblaw.com.ph or call 403-2001 local 311.

that person—quiet, detached.

4. Black and white are still the accepted tones for mourning. Red has no place in this event unless you are a flower, in which case your place is on the wreath and not with humans.

5. Gossiping is allowed during wakes. We cannot ban this national pastime. A dictator once labeled gossiping as “rumor mongering” and proceeded to ban it. He did not last. So, feel free to gossip so long as you are sensitive to the silence and sobriety of the place. Keep your voice really down. This means that your gossip mate is limited to the person beside you. Do not include the persons behind you or in front of you. The results can be fatal. As with any cultural artefacts, there is an art to gossiping. You have to consider the tools and devices around you. In wakes, the candies can support your human enterprise. Start talking as you reach for the candy.

Continue talking as you slowly peel the wrapper. From afar or even to those near you, you will look like you are appraising the quality of the candy or chocolate. When you put the candy in your mouth, mention the important names in your story.

As you swirl the nougat or the caramel with your tongue, deliver the punch line, the so-called coup de grace of your narrative. Then look at the people who may be looking at you at this point and then smile.

Do not look at the consumer of your gossip for that will betray the meanness in your heart.

6. Do not comment on the flower arrangement even if they do not conform to your aesthetics. Do not analyze how the wreaths are arranged according to the significance of the

person or institution that gave the offering. You are not to pestimate the price of each wreath or bouquet and never, never try to impress the bereaved that you could get these flowers at very cheap prices in the local public market.

7. Do not announce your presence.

Bear in mind that in that place, we are commemorating the physical absence of a person.

8. Your presence is already a consolation. The words of consolation are really unnecessary. A firm handshake, a light kiss and a lighter hug are good actions. Do not tell an anecdote about the deceased. Keep them to yourself and, when the right time comes and the right grammar and conciseness are available to you, send them to Reader’s Digest.

9. It is not proper to tell ghost stories during wakes. The implications are not nice. What you are really saying is that the central figure in that room can be a ghost, as well.

Again, like the anecdotes, keep your ghost stories close to your heart.

When the right time comes, write a horror story.

9. Do not be too sad. Never be sadder than the closest kin or the bereaved. Without laughter, keep your sense of humor during days and hours of bereavement. Think of this, Death, to wildly paraphrase Dorothy Parker, is merely Life that glows in the candlelight, or Life that has done a costume change, turning a satin into a shroud.

10. Finally, think of a wake not as a party but a long prayer for us who are left to live, and to contend with the bad manners of mourners.

E-mail: titovaliente@yahoo.com.

Veritas 846 serves up hot ‘Pandesal Forum sa Veritas’ Rev. Fr. Antonio Cecilio T. Pascual

decisions as to what previously seemed to be clear VAT provisions are making both current and prospective RE developers think twice.

Friday, August 11, 2017 A11

SERVANT LEADER

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adio Veritas, the leading faith-based AM station in the Mega Manila, serves its newest program, titled “Pandesal Forum sa Veritas”.

The program, which is in partnership with Kamuning Bakery Café, will have its first broadcast on August 17 and will air from Monday to Friday, 5:30 to 6 p.m.

“Pandesal Forum sa Veritas”, a daily news, business feature and public-service program, will feature writer and realty entrepreneur

Mr. Wilson Lee Flores, Wharton educated business leader Mr. George T. Siy of Integrated Development Studies Institute and broadcast journalist Jarkie Miranda as anchors.

Listeners will now be able to join the Pandesal Forum which hopes to help elevate the quality of pub-

lic debate and discourse regarding current affairs, socioeconomic and political issues, reform needs and other diverse topics.

“Pandesal Forum sa Veritas” is part of the initiatives of Radio Veritas through its Veritas 500 program that aims to expand the Church in multimedia and reach a nationwide audience as the Catholic Church prepares for the celebration of the 500 years of Christianity in the Philippines.

The nonpartisan, informal, tertulia-inspired, Pandesal Forum, started at the 78-year-old Kamuning Bakery Café in Quezon City in 2015, where newsmakers and leaders dialogue with media to highlight unpopular or neglected topics.

Kamuning Bakery Café is one of the oldest bakeries in Metro Manila and the oldest in Quezon City.

It was founded in 1939 and, until today, it is continuously expanding and baking as the country’s pioneer bakeshop.

Radio Veritas 846, the No. 1 faith-based Radio in the Philippines, is owned and operated by the Archdiocese of Manila. Established in 1969, the Ramon Magsaysay Awards recipient Catholic radio station continues to be the leading social-communications ministry for truth and new evangelization in the country today.

To know more about Caritas Manila, visit www. caritasmanila.org.ph. For your donations, call our DonorCare lines 563-9311, 564-0205, 09997943455, 0905-4285001 and 0929-8343857. Make it a habit to listen to Radio Veritas 846 in the AM band, or through live streaming at www.veritas846.ph. For comments, e-mail veritas846pr@ gmail.com.

2nd Front Page BusinessMirror

A12 Friday, August 11, 2017

www.businessmirror.com.ph

Manila wants Asean to address alarming rise of trade barriers 5,975 T

By Cai U. Ordinario

@cuo_bm

he government is alarmed by the rising tide of protectionism in the region in the form of nontariff barriers (NTBs), making it important for the Philippines to use its chairmanship of the Asean this year to push for the removal of these trade-distorting measures.

Socioeconomic Planning Secretary Ernesto M. Pernia and local economists stressed that the Philippines would have a better chance of boosting its exports if it will push for the removal of these NTBs in intra-Asean trade.

“In light of our hosting of the Asean Summit this year, our country is also in a better position to push for a reduction in nontariff barriers within the region,” Pernia said. He noted that nontariff measures in the region increased to 5,975, from 1,634

between 2000 and 2015.

The statement comes on the heels of the report released by the Philippine Statistics Authority (PSA) on Thursday that showed the country’s total trade dropped 1.2 percent in June, after posting 10 consecutive months of positive growth since August last year.

PSA data showed that in June, total exports grew 0.8 percent, while imports declined 1.2 percent.

Total trade stood at $11.97 billion and the country’s trade deficit declined to $2.15 billion.

The Philippines posted a modest growth of 4.8 percent in its exports to other Asean countries in June.

While economists agreed that removing NTBs can help boost trade, the government needs to make it easier for businesses to operate in the country and encourage product innovation and diversification.

Ateneo de Manila University EagleWatch senior fellow Alvin Ang said simplifying rules and reviewing existing policies will make lessen the burden on the shoulders of businessmen. “Yes, [removal of NTBs can boost trade], but our institutions are weak to implement them. Too much regulations are the challenge,” Ang said.

University of Asia and the Pacific School of Economics Dean Cid Terosa said boosting trade also means creating new products and opening new markets.

Terosa noted that removing nontariff measures, if left unchecked, can easily affect traditional products. “Well the government has started diversifying markets, but there is also a need to diversify products, as well as expand value-added of our traded goods and services.”

The estimated number of nontariff measures being used to distort intra-Asean trade as of 2015

“As infrastructure projects can increase imports and widen the trade gap, it is imperative that export growth can buffer the impact through diversified markets and products and greater value-added goods and services,” he added.

Pernia said the country can also take advantage of its Generalized System of Preferences Plus (GSP+) privilege given by the European Union (EU) to the Philippines.

The chief recommended that the Department of Trade and Industry continue its information sessions on “Doing Business with the EU using the GSP+” in key cities and towns in the country.

Pernia added there are ongoing regulatory reforms identi-

DAR, DOTr, DICT could see budget cuts in 2018

T

By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

S

@joveemarie

See “Budget,” A2

percent from the previous year’s level of $3.98 billion.

Total export receipts from the country’s top 10 market destinations for the month of June were valued at $4.13 billion, or 84.2 percent of the total.

Japan, including Okinawa, was the country’s top export market and accounted for 18.5 percent of total exports. The increase in shipments to Asean and EU (up 3.9 percent) helped cushion the decline in traditional markets, such as the US ( down 8.7 percent), Japan ( down 9 percent) and China (down 2.4 percent).

In April Philippine Institute for Development Studies senior research fellow Erlinda M. Medalla and Project Development Officer Melalyn C. Mantaring said in a study that the NTBs most Filipino firms encounter are customs clearances and controls, as well as rules of origin and other trade rules. Filipino firms also find it difficult to comply with product requirements and conformity, particularly when exporting their products. These are justified for different reasons, such as health, security, environment and consumer protection.

Tourists from SoKor, US, China lift visitor arrivals in PHL in H1

By Jovee Marie N. dela Cruz

he House Committee on Appropriations on Thursday identified three government agencies that may get budget cuts next year due to low absorptive capacity and sluggish implementation of projects and programs.

Rep. Karlo Alexei B. Nograles of Davao City, the panel chairman, said the Department of Information and Communications Technology (DICT), the Department of Agrarian Reform (DAR) and the Department of Transportation (DOTr) can contribute at least P37.5 billion to fund Republic Act 10931, or the Universal Access to Quality Tertiary Education Act. “[The P37.5 billion] can act as a standby fund once the free college education program is fully implemented,” Nograles said.

Under 2018 national budget, the DICT has submitted a P6.87-billion budget request for 2018. The DOTr is asking P73.8 billion, while the DAR is seeking P10.3 billion.

During the budget deliberations of the Commission on Higher Education (CHED), the agency estimated that P34.1 billion is needed to fund the free tertiary education program. Students who will benefit from the law will be coming from 114 state universities and colleges (SUCs), 16 local universities and colleges (LUCs) accredited by CHED, and 122 technical-vocational institutions (TVIs) under Technical Education and Skills Development Authority (Tesda).

During the budget briefing of the DICT, Nograles said his panel found out the agency has P2.7 billion in unused appropriations in 2016 and P2.695 billion in untouched budget in 2017.

“These funds will expire in

fied in the Philippine Development Plan 2017-2022 that will help boost trade.

These include delisting, abolishing and consolidating or easing existing rules and regulations that affect doing business in the country.

“We expect Philippine trade to recover, as the global economic recovery is seen to be on firmer footing in the second half of the year,” Pernia said. “This will help businesses to comply with the requirements, such as rules of origin, and hurdle trade barriers, such as product standards,” he added.

In June 2017 PSA data showed the total payment for the country’s top 10 imports reached $5.12 billion, accounting for a 72.6-percent share in the total import bills.

Total payments for the top 10 countries that imported to the Philippines in June amounted to $5.60 billion, or 79.4 percent of the total.

China is the country’s top import source with an 18.8-percent share in June 2017.

In terms of exports, total receipts from the top 10 major exports reached $4.01 billion, or 81.6 percent of the total exports, recording a slight increase of 0.6

FEMALE OBLATION Foreign students take a photo of the UPLift sculpture at the University of the Philippines campus in Diliman, Quezon City.

Created by Ferdinand Cacnio, the brass sculpture depicts a naked woman in midair with her hair touching a pool of water. NONIE REYES

‘Free tuition no excuse for lax admission policy’

By Elijah Felice E. Rosales

T

@alyasjah

he Commission on Higher Education (CHED) has instructed state universities and colleges (SUCs) to adopt tighter student admission and retention policy in light of the approval of the free-tuition bill, a senior official of the agency said on Thursday.

“What we’re going to do is to require them to be strict in implementing their admission and retention policies and that the subsidy of government will cover only normal increase in enrollment,” CHED Commissioner Prospero E. de Vera said.

“There might be a temptation on the part of some state universities

DE VERA: “There might be a temptation on the part of some state universities [to allow open admission] because they will be receiving additional funding from the government. So we are telling the state universities and colleges that the new free tuition and miscellaneous law should not be an excuse to do open admission.”

[to allow open admission] because they will be receiving additional funding from the government. So we are telling the state universities and colleges that the new free tuition and miscellaneous law should not be an excuse to do open admission,” de Vera added.

Among the measures SUCs may take is limiting subsidy to students

taking double-degree courses, as well as ensuring students are enrolling full load every term.

De Vera said these will help the government maintain fiscal stability while giving free education to deserving students, as it will limit the number of students it has to finance.

See “Free tuition,” A2

OUTH Korea continues to top the list of the Philippines’s major source markets for tourists in the first half of 2017.

Data from the Department of Tourism (DOT) show arrivals from South Korea reaching 795,085 from January to June 2017, still accounting for almost a quarter of the total visitor arrivals for the period in review. Said arrivals from South Korea also rose by some 15.9 percent from last year’s 686,118.

The first half of the year yielded 3.35 million foreign visitors, up 12.73 percent from the same period last year. “Another milestone is reached as visitor count for the first six months surpassed the 3-million arrivals mark surpassing the 2,978,438 count for the same period last year,” said Director Mila Say of the DOT’s Office of Tourism Development Planning, Research and Information Management, in her memorandum for Tourism Secretary Wanda Corazon T. Teo dated August 4.

But the agency again failed for the third time, to release its cumulative visitor receipts data, although in its accomplishment report issued before President Duterte’s State of the Nation Address, it said receipts reached P222.3 billion from July 2016 to May 2017. No explanation was issued by the agency regarding the delay in the release of the current visitor receipts report.

Meanwhile, ranked as the second top source of foreign tourists was the US, with 513,443 arrivals, up 13 percent from the same period last year. Visitors from the US accounted for some 15.3 percent of total arrivals for the six-month period in 2017.

In third spot was China, with a 33.4-percent jump in arrivals to 454,962, accounting for a 13.6-percent share in total arriv-

3.35M The number of tourists that visited the country in January to June, up 12.73 percent

als for the period.

Teo expressed confidence that it would reach the agency’s target of 1 million Chinese tourists this year, “and it will exceed the arrivals from the US”. The Beijing government committed the said number of Chinese tourists this year, as ties with Manila warmed with Duterte setting aside The Hague arbitral tribunal’s ruling on the South China Sea issue.

In fourth place was Japan, which sent 294,080 visitors to the Philippines in the first half of the year, up 12.8 percent. Japan represented some 8.8 percent of total arrivals for the period.

Ranked fifth was Australia with 130,992 arrivals, up 3.8 percent from the first half of 2016. The market accounted for almost 4 percent of total visitor arrivals for the six months to June 2017.

Other major tour ism markets for the Philippines in the first six months of the year was: Taiwan 127,017 (+13.3 percent); Canada 108,243 (+18.4 percent); the United Kingdom 93,649 (+7.8 percent); Singapore 85,207 (-7.5 percent); Malaysia 72,211 (-0.12 percent); and Hong Kong 55,653 (-9.5 percent).

Tourists from India grew a substantial 23.4 percent to 54,663, making it a potential market to further develop. Other strong markets include France with 38,890 arrivals (+25 percent); Russia 19,365 (+39 percent); Vietnam 21,903 (+22.5 percent); and the Netherlands 17,839 (+12.4 percent).

On a month-on-month basis, however, tourist arrivals in June 2017 alone appear to be weak, with Continued on A2