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Monday, August 15, 2016 Vol. 11 No. 310

Tax cuts to yield ‘chopper bonanza’ for Pinoys–Zubiri By Butch Fernandez

@butchfBM

en. Juan Miguel F. Zubiri, taking the cue from President Duterte’s promise to scale back personalincome tax, has filed a bill reducing the automatic deductions from taxpayers’ monthly paycheck. In Senate Bi l l 124, Zubir i proposes to spread “tons of helicopter money” on households through “huge cuts in taxes automatically withheld from everybody’s paycheck.” Zubiri pointed out in the bill that Filipinos have long endured “the most burdensome personal

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MANILAMED CELEBRATES 49 YEARS OF COMPASSIONATE HEALTH CARE

income-tax rates in Southeast Asia,” asserting it is now “absolutely imperative for Congress to reduce individual tax rates, and enlarge personal exemptions at the same time.” Zubiri said, “Families deserve stacks of helicopter money by way of a broad-based withholding-tax

25%

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Emergency powers and PPPs. Do they mix? PPP Lead

The income-tax rate being proposed by Zubiri

cut to enable every household to spend more and achieve a superior quality of life.” A ccord i ng to t he sen ator, economists around the world use Nobel laureate Milton Friedman’s analogy of a helicopter dumping piles of money from the sky—for everybody to freely collect and spend—to illustrate cash injections as potent stimulants to See “Tax cuts,” A2

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Federalism seen to offer uncertain future for mining, power sectors A8-A9

Alberto C. Agra

ow will public-private partnerships (PPPs) fit into the proposed grant of emergency powers in addressing the traffic crisis? What are the boundaries of the grant of emergency powers to the Executive branch of government? What PPPrelated laws must be changed to expedite PPPs? Continued on A14

Emergency Powers in PPPs

rio olympics medal tally

Shortened Procedures

1 United States 2 China 3 Great Britain 4 Germany 5 Japan 6 Russia 7 Australia 8 Italy 9 South Korea 10 France 11 Hungary 12 Netherlands 13 Spain 14 New Zealand 15 Canada 16 Kazakhstan 17 Belgium 17 Thailand 19 Croatia 20 Switzerland 21 Iran 22 Sweden 23 Denmark 52 Philippines

G S B T 24 18 18 60 13 11 17 41 10 13 7 30 8 5 3 16 7 3 14 24 6 9 8 7 6 7 9 22 6 7 5 18 6 3 4 13 5 8 5 18 5 3 3 11 3 2 3 8 3 0 2 5 2 6 0 8 2 2 8 12 2 2 3 7 2 1 1 4 2 1 1 4 2 1 0 3 2 0 1 3 2 0 0 2 1 3 1 5 1 2 3 6 0 1 0 1

Approval includes all franchises and clearances Competitive Negotiations This October 29, 2005, file photo shows a gold trader weighing gold sold by a small miner from Mount Diwata in Compostela Valley province in southern Philippines. While the gold rush in the mountain area has brought livelihood to thousands of people, it also led others to their deaths due to improper handling of chemicals in the processing of gold. AP By Jonathan L. Mayuga @jonlmayuga

Part One

HE shift to a federal form of government offers a ray of hope to the minerals-development sector, with big players optimistic of changing the games under a different—and quirky, for some—scenario.

PESO exchange rates n US 46.7330

There are two laws that regulate mining in the Philippines: Republic Act (RA) 7942, or the Philippine Mining Act of 1995, which regulates large-scale mining; and RA 7076, or the People’s Small-Scale Mining Act, which regulates smallscale mining. The former, signed by then-President Fidel V. Ramos in 1995, aims to attract more foreign investment

“by defining the agreements for mineral exploitation, and provide the requirements for acquiring mining rights,” according to Roberto B. Raymundo of the De La Salle University (DLSU) School of Economics. In the paper he presented at the DLSU Research Congress in 2014, Raymundo explained t he l aw a l low s 10 0 - percent

Unsolicited Proposals with direct government support Single Implementing Agency Author: Alberto C. Agra

bm Graphics: Job Ruzgal

Continued on A2

n japan 0.4584 n UK 60.5473 n HK 6.0253 n CHINA 7.0407 n singapore 34.8027 n australia 35.9610 n EU 52.0559 n SAUDI arabia 12.4661

Source: BSP (12 August 2016 )

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Federalism seen to offer uncertain future for mining, power sectors Continued from A1

foreign ow nership of mining projects through Financial or Technical Assistance Agreements (FTAAs). To encourage mining the law also gives several incentives such as a four-year income-tax holiday, tax and duty-free capital equipment imports, value-added tax exemptions, income-tax deductions (when operations are posting losses) and accelerated depreciation. Raymundo also said the law “strengthens the role of local government units in mining projects, both as beneficiaries and as active participants in mineral resource management, consistent with the provisions of the constitution and government policies on local autonomy and empowerment.” Under a new government, mining operations currently pass through the proverbial eye of the needle with an environmental advocate at the helm of the Department of Environment and Natural Resources (DENR).

Unclear future

DENR officials told the BusinessMirror that a change in the form of government offers an uncertain future. Leo L. Jasareno, DENR senior undersecretary for Mining, said mineral resource management would depend on the law that would create federal states. “Hindi pa natin alam [We still don’t know what would happen to

the law].” Jasareno said. “It all depends on Congress,” he added. DENR Undersecretary Luis Jacinto, the concurrent chief of the Mines and Geosciences Bureau (MGB), agreed. “It will depend on the form that [government] will take. There will be set of rules,” Jacinto said. “Makikita doon kung ano ang [The set of rules would show the] key role ng federal states as far as the country’s minerals-resource management is concerned.” He added that the rules would also determine how governance would not be only of the mining sector, but also of the country’s natural resources. According to Jacinto, the Lower House has not crafter a working paper yet on how to govern the mining sector under a federal form of government. “It all depends on what will Congress come up with,” he said. “Right now, we have no clear picture of federalism’s impact on mining.”

Local condition

THE application of RA 7942 was marked by several hiccups marked the application of the country’s mining act, according to Raymundo. The law was met by protests by non-governmental organizations (NGOs) and indigenous peoples’ communities. Lawsuits were filed that, according to Raymundo, arose from the conflicting national and local government laws.

Tax cuts. . .

Continued from A1

consumption and growth. Zubiri’s proposal to reduce the personal income-tax rate and allow more exemptions, he explains, should quickly raise the standard of living among Filipinos, create jobs and help push for a more inclusive economic expansion. Once passed into law, Zubiri’s bill doubles from P50,000 to P100,000 the basic personal exemption enjoyed by all taxpayers and similarly inflate the additional exemption for each qualified dependent child, from P25,000 to P50,000, up to a maximum of four

The noise spooked investments and risked the attainment of the law’s purpose. He added that, “Because of the continued protest over alleged violations of mining companies, their destruction of the environment and the displacement of indigenous people and communities, local governments of 14 provinces had promulgated ordinances banning open pit mining. “The amount of investments flowing into the mining sector [has] not been sufficient in order to fully tap the immense potential mineral reserves of the country,” Raymundo said. “One of the primary reasons for the low level of investments being generated by the sector is the risk and uncertainty created by the flawed provisions of the Philippine Mining Act of 1995 and its overlaps with other laws, such as the Local Government Code of 1991.”

Better days

ALREADY shaken by pronouncements of new DENR chief Regina Paz L. Lopez , mining companies remain hopeful of better days ahead under federalism. The Chamber of Mines of the Philippines (Comp), which represents large-scale mining companies through its Executive Vice President Nelia Halcon, says while the federal form of government will not take shape overnight, it will be good for everyone to consider the sys-

children. At the same time, the Senator also filed companion Senate Bill 121 seeking to “cut down to just 25 percent the individual tax rate of 32 percent.” Upon enactment, Zubiri said the twin proposals would effectively “raise household incomes by double digits.” “Let us assume we have a husband and wife who are both employed and who have two dependent children. They have a combined annual compensation income of P480,000, or P40,000 monthly,” Zubiri said for instance. He quickly added that under his proposal, “the couple would pay 68 percent less in withholding taxes every year and would have to pay only P23,500 in withholding taxes,

tem. Halcon added that the Comp believes federalism is expected to enhance the development of the rural areas and provinces. “A federal economic center in the regions that will oversee the development of provinces based on their priorities and economic advantage will be a welcome development and, hopefully, will also put all local government officials on their toes since no LGU [local government unit] would want to be placed at the bottom line of development,” Halcon said. However, Comp believes that federalism will not necessarily improve minerals production. “This will depend on the implementation of the system of processing permits and licenses. Streamlining the process is a must,” she said. Halcon, however, said she and Comp are confident that LGUs would toe the line in seeing to it that no illegal-mining operations will be allowed under their “transparent” governance.

Devolution to LGUs?

HALCON said Comp believes under federalism, the DENR’s mandate would not necessarily be diminished. She expressed hope that devolution of functions and responsibilities will be clear “so that it would be easier for the mining industry to work with LGUs since their operations are in the provinces. “We presume that the DENR

or P50,500 less than the P74,000 they are currently shelling out.” As a result, he said, the couple would enjoy an additional takehome pay of P50,500, or “helicopter money” that translates to a 12.5-percent jump in the household’s annual disposable income. “Here’s how it works. Right now, the couple is allowed only P150,000 in exemptions —P50,000 for each spouse [or P100,000 for both spouses] plus P25,000 for each dependent child [or P50,000 for both children],” the senator said. “After deducting the P150,000 in exemptions from their P480,000 in earnings, the couple winds up with a combined net taxable income of P330,000.” Applying existing tax rates, he noted the P330,000 is hit with P74,000 in withhold-

will work hand in hand with LGUs and while LGUs have their own levels of needs and policies, they will think about the good of the country or the marcolevel benefits,” she added. For its part, the Comp said the industry could harness the technical capabilities of government agencies, which can help capacitate LGUs. She said discussions about mineral resource development could open the minds of everyone that mining could be undertaken in a responsible manner and the need to explore areas to delineate the nation’s wealth is paramount for developing a country, like the Philippines. Halcon said the perspective of the industry to link its Social Development Management Program (SDMP) with the development plan of LGUs would further enhance the province or region’s economic base, thereby providing the catalyst for economic growth. “The development of industries, no matter how big or small, can promote the development of industrial centers of growth in the region and can reverse migration to the cities,” she added.

Solving hiccups

According to Halcon, federalism can address conflicts in the implementation of laws governing environmental protection measures, as well as in share in mining profit.

ing taxes—a flat P50,000 plus P24,000; or P50,000 plus 30 percent of the excess over P250,000 (with P80,000 being the excess taxable at 30 percent). Under t he Zubi r i bi l l , t he couple wou ld be a l lowed P30 0,0 0 0 in exemptions—P100,000 for each spouse (or P200,000 for both spouses) plus P50,000 for each dependent child (or P100,000 for both children). After deducting the P300,000 in exemptions from the P480,000, the couple would end up with a combined net taxable income of only P180,000. He said the P180,000 is then slapped with only P23,500 in withholding taxes— a flat P7,000 plus P16,500; or P7,000 plus 15 percent of the excess over P70,000 (with

She said these conflicts could either be avoided or ultimately resolved. Among these conflicts is the ban on open pit mining, an extraction method allowed by law. However, such method is banned in several provinces, like South Cotabato. The province is one of the areas covered by the $5.9-billion Tampakan Copper-Gold Project. Other conflicts include the nontransmitttal or late transmittal of the rightful share of LGUs on mining taxes and the expansion of “no-go zones” in mining without clear justification. Halcon said Comp believes under federalism, rules and regulations on these issues could be made clearer, and responsibilities and accountabilities are pinpointed. Elected officials in the provinces who do not implement laws will need to think twice about their governance framework under federalism, she added. Lopez had already suspended at least nine mining operations for failing to meet environmental standards and violating mining and environmental laws. An ongoing mining audit, with very rigid criteria giving more weight to social, environmental and lately biodiversity considerations on top of the physical or technical aspect of mining regulation makes all mining operation prone to closure under Lopez’s watch. To be continued With additional reporting by Dennis D. Estopace

P110,000 being the excess taxable at 15 percent). In a statement, Zubiri, however, did not indicate the absolute amount of “helicopter money” he wants dropped on Filipino families every year. But during the May 2016 election campaign, Zubiri promised voters he would push passage of “tax privileges that would deliver as much as P250 billion in new money at the disposal of Filipino families every year.” He said the additional spending money should immediately boost consumption, create new wide-ranging demand for goods and services, encourage domestic industries to lift output and employ more workers, and spur faster economic growth overall. The senator recalled that President Duterte, in his first State of the Nation Address, vowed to reduce personal, as well as corporate income-tax rates. “My administration will pursue tax reforms toward a simpler, more equitable and more efficient tax system that can foster investment and job creation. We will lower personal and corporate tax rates,” Zubiri quoted Duterte’s campaign promise.

Budget. . .

Continued from A16

He said the number of the country’s drug rehabilitation facilities is not enough to handle the multitude of drugaddicts who have surrendered to the government. “There’s a national shortage. The demand for rehab is way, way bigger than available facilities,” Angara said. From July 1 to 20 alone, 114,833 illegal-drug suspects had given themselves up to the police, an official report from Camp Crame said. It predicted that surrenderees will eventually reach more than a million. Angara said, like any war, the campaign against drugs has created its own refugees.“Thousands are fleeing the drug trade. We can’t leave them stranded. We need to process them and then help them.” In calling for a “multisectoral and holistic approach” to solving the drug menace, Angara said agencies, outside those whose primary mission is to combat drug abuse, must also have an assigned part. The lawmaker filed Senate Bill 311 that includes a National Anti-Illegal Drug Campaign and Research Fund under the annual budgets of the DILG, the Department of Education, Dangerous Drugs Board and the Philippine Drug Enforcement Authority in addition to the appropriations of these agencies under the General Appropriations Act. Under the proposed measure, such exclusive fund will be used to 1) establish a nationwide education and awareness program on illegal drugs; 2) implement a mandatory training for local government unit personnel involved with the enforcement, research and policymaking on illegal drugs; 3) conduct a nationwide study on the nature and extent of drug abuse; 4) put up a national helpline for drug abusers; and 5) create a public registry of drug dealers, pushers and traffickers. “We must acknowledge that, while the government has declared war against illegal drugs in order to maintain peace and order, it must also provide an opportunity for drug abusers to reform their lives, as they are merely victims, as well, of drug lords who control the massive illegal-drug trade in the country,” Angara said.

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Govt eyes ₧4.26-B budget for RH law implementation

Monday, August 15, 2016

‘duterte admin must prepare industries for PACIFIC TRADE DEAL’ By Catherine N. Pillas @c_pillas29

UNICEF Philippines

By Cai U. Ordinario @cuo_bm

he Duterte administration wants to nearly double the government’s budget for the implementation of the responsible parenthood and reproductive health (RPRH) law next year, according to the National Economic and Development Authority (Neda).

Socioeconomic Planning Secretary and Neda Director General Ernesto M. Pernia said the government is proposing to increase the RPRH budget to P4.26 billion in 2017, from P2.28 billion in 2016. “We’re really serious about the full implementation of the reproductive-health law,” Pernia recently told reporters in an interview. The RPRH law is included in the “Zero plus 10” agenda of the Duterte administration. The new administration intends to step up the implementation of the law. Pernia earlier said the RPRH

₧2.28B The government’s budget for the implementation of the reproductive-health law this year

law will enable couples, especially the poor, to have “informed choice” on the number and spacing of children they can properly care and provide for.

Apar t from increasing the budget, Per nia sa id t he new administration is also working on addressing the temporar y restraining orders (TROs) issued by the Supreme Cour t on R PR H-related programs. The first TRO was issued by the High Court against the distribution of contraceptive implants, Implanon. The implants were bought by the government for P400 million and will be distributed to poor women nationwide. The other TRO prevents companies authorized to import other contraceptives, pills, condoms and intrauterine devices from renewing their authorization to import. Because of this TRO, Pernia said, there will be no importation of these commodities or supplies, which could threaten the full implementation of the RPRH law. “I think we still have supplies, but this could be depleted if the authority to import will not be renewed next year. But the one that cannot be implemented by the government agencies is the Implanon, which is the most effective,” he said. If population growth continues at its current pace, experts said the Philippines

could miss the opportunity to fully benefit from the so-called demographic dividend. Contrary to the claims made by some business groups, Pernia said the Philippines is not yet in the “demographic sweet spot.” He said this is an “erroneous” claim, which has been parroted by former Finance Secretary Cesar V. Purisima and Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. The demographic transition has three phases that the Philippines has yet to go through, according to United Nations Population Fund (UNFPA) Country Representative Klaus Beck. He said the first phase entails an initial decline in infant mortality, but fertility/birth rate remains high, which results in a high youth-dependency group. The second phase, Beck said, happens when the proportion of working-age population (aged 15 to 64 years old) is larger than the young dependents (0 to 14 years old) and the older dependents (65 years and older). The last phase occurs when the older cohort or those aged 65 and overswells relative to the total population.

side from preparing for the Trans-Pacific Pa r t nersh ip ( T PP), the government must also prioritize the development of micro, small and medium enter pr ises (MSMEs), according to a former socioeconomic planning chief. Dr. Cielito Habito, economist and chief of party of United States Agency for International Development’s Trade Related Assistance for Development, again pushed for the need to prepare for TPP, lest the Philippines is out-maneuvered by neighboring countries that are parties to the trade deal. “Looming large in megatrade deals is the TPP. Of the 12 countries, four are from Asean: Malaysia, Brunei Darussalam, Singapore and Vietnam. These four are aiming to ratify the TPP. If we don’t get into this once they open it to new members, we’re going to be in trouble,” Habito warned. “Some companies are already thinking of moving out of the Philippines and transfer to Vietnam. They foresee that if we’re not part of TPP, it’s more attractive to be situated [in Vietnam] because of the duty-free access to these 12 economies,” he said during the recent forum dubbed as the Center of Futuristics and Management’s Prospects for 2016-2022. For the Philippines, the TPP stands as the most preferable route for local goods and ser vices to access the US market, as Washington, D.C., has shifted its trade strateg y from chasing bilateral deals to forging expansive, multi-party deals. Aside from garments manufacturing—a sector that could lose investments to Vietnam, according to the Department of Trade and Indust r y (DT I)—Habito said other manufacturers of traditional export products could also incur losses. “ There are potential areas

₧1.4B

The amount of foreign direct investments pumped into the Philippines by TPP members in 2014

where we could gain an advantage, such as chemicals in A sean, and traditional manufactures, like apparel and furniture. Those are the tremendous opportunities we have for the US and Latin America,” he said. The resumption of discussions on the TPP hands on the decision of the US Congress and the direction that will be taken by the future US president. Half of Philippine exports go to two of the 12 TPP members—the US and Japan—and nearly half of the country’s total foreign trade are from the parties to the trade deal. Of the $6.2-billion direct investment inflows into the Philippines recorded in 2014, gover nment d at a showed that TPP members accounted for only $1.4 billion. Habito said preparations for the TPP should go hand in hand with the current administration’s efforts to develop MSMEs to achieve inclusive growth. “ We need gover nmentwide coordination on this M S M E d e v e l o p me nt . We don’t even have an effective coordinating entity for all MSME programs; it can’t be [the domain of the] of the DTI alone,” Habito said. Promoting r ura l and “va lue chain development” as a way to increase r ura l and agricultural enter prise productivity is part of Pres. Duter te’s 10 -point socio economic agenda. DTI chief Ramon M. Lopez recently led the launching of the “Kapatid Program” with GoNegosyo to entice big businesses to incor porate small businesses into their value chain.

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Japan to provide rail, coaches for $2.4-B North-South commuter railway project

By Recto Mercene

@rectomercene

he major components of the $2.4-billion North-South Commuter Railway (NSCR) Project would be provided by Japan as part of its concession loan to the Philippines, “one of the biggest Japanese yen loan ever,” Masato Ohtaka said during a breakfast forum with members of the media.

“Japan will provide the coaches and the rail, everything,” Ohtaka added. Asked what makes the Japanese trains better than competing brands, Ohtaka said, based on the performance of the Shinkanzen, Japan’s “bullet train” that started service in 1965, the system has never had a train accident for 50 years. “When the big earthquake hit north of Japan in 2011, 38 highspeed trains were running then but the trains safely stopped, and nobody got hurt. That sort of demonstrated the rigorousness of our system,” he

said. Ohtaka said Japanese trains are also known for their punctuality. “Our trains are notorious for being punctual. I don’t know whether we need to be that punctual, but the average time of delay for Shinkanzen is 30 to 40 seconds, or something less than a minute.” Ohtaka added Japan was also open to building a railway in Mindanao, a project President Duterte previously said China had offered to fund. Ohtaka was in the country, accompanying the three-day visit of Foreign Minister Fumio Kishida. He had

a discussion with the media, giving an overview of what transpired between President Duterte and Kishida when they met in Davao last Thursday. The Malolos-to-Tutuban NSCR, funded by the official development assistance from Japan, involves the construction of a 38-kilometer elevated commuter train. The deal, with interest rates of 0.1 percent per annum, was sealed last November with the Japan International Cooperation Agency (Jica). “All our loans are highly concessional,” Ohaka said, saying the entire amount would be disbursed in batches, depending on how the plan evolved. As its name suggests, the NSCR project aims to spur development in provinces north and south of Metro Manila, the capital region that is home to about 12 million people and powers over a third of the country’s economic output. “This project aims to strengthen the transport network and ease traffic congestion in Metro Manila by constructing a commuter railway that would contribute to a more secure and sustainable economic development and promotion of investment,” Jica said. The Jica study shows that Metro

Manila has been suffering from the effects of urban congestion, and this was costing road users about P2.4 billion a day. “That would swell to P6 billion daily by 2030,” Ohtaka warns, hence the importance of the project. Ohtaka dismissed concerns, expressed by some quarters, that the NSCR rail has narrow gauge, compared to the wide gauge of highspeed trains. “We have narrow gauge in Japan, too. It does not mean it’s not safe. We are very flexible, it’s the same, it depends on how it is built.” With the growing number of cars and the inefficiency of existing masstransit systems, Metro Manila has been suffering from the effects of urban congestion. The NSCR is expected to address this problem by efficiently moving large numbers of passengers. Specifically, the NSCR hopes to revive a once-robust Luzon railway system, which, in the 1970s, spanned 900 km linking La Union province in the north to Legazpi City in Albay province in the south. Jica said Luzon’s railway network had expanded only by 5 km over the last decade, despite rapid growth in Metro Manila and nearby provinces. The bigger portion is the NSCR’s

south line, which involves about 653 km of railway lines, mainly the Tutuban-to-Legazpi City long-haul route that was suspended in 2012 due to typhoon damage to bridges along its alignment. Part of the NSCR project is a 58km line from Calamba, Laguna, to Batangas City, Batangas, and a 117km line from Legazpi City to Matnog, Sorsogon. At the same briefing, Ohtaka said Japan is providing the country with two 90-meter (295-feet)-long vessels on top of the 10 Coast Guard vessels that Tokyo pledged during the Aquino administration. In addition, he said Japan is also leasing four turbo-prop surveillance airplanes to help the under-equipped Coast Guard. The two new large ships and planes are on top of 10 Coast Guard ships that Tokyo pledged to former President Benigno S. Aquino III. “We are talking about big-sized, 90-meter (295-foot)-long vessels. We are also discussing the possibility of leasing aircraft designed for training. They are surveillance aircraft,”Ohtaka said. T he countr y cont inued strengthening its armed forces as part of its revised 15-year mod-

ernization program, with an initial budget of P75 billion under the Aquino administration. Although the Philippines won a legal victory on July 12, when the United Nations-backed tribunal declared that China’s nine-dash line is illegal, China refused to recognize the ruling. Ohtaka said the new ships were among topics discussed by Japanese Foreign Minister Fumio Kishida and President Duterte last Thursday in Davao City. Despite the favorable ruling, Mr. Duterte preferred a bilateral approach to the problem and has sent former President Fidel V. Ramos as special envoy to China. “[I don’t want] to start hostilities at this time of our lives, and he said Japan would do the same. They just want dialogue. They do not want further incursions,” President Duterte said. After the meeting between Kishida and Foreign Affairs Secretary Perfecto R. Yasay Jr., the two urged Beijing to observe the rule of law. Despite the warnings from the US not to increase tension in the South China Sea, following the Tribunal ruling, China was reported to have fortified its aircraft hangars on the disputed reefs.

House think tank cites Eternal Gardens celebrates 40th anniversary advantages of federalism

REJOICING, REMEMBERING

By Jovee Marie N. dela Cruz

Eternal Gardens President and COO Numeriano B. Rodrin (from left), Vice President for Human Resources Management Division Victoria C. Nava, 35-year service awardee Executive Secretary Rosario T. Lachica, Chairman and CEO D. Edgard A. Cabangon and Vice Chairman Benjamin V. Ramos

ternal Gardens celebrated its 40th anniversary last Thursday (August 11) with a grand festivity at Citystate Tower Hotel in Ermita filled with rejoicing over the accomplishments of the past four decades, and fondly remembering and paying tribute to its founder, Ambassador Antonio L. Cabangon Chua, whose leadership made the success possible. As D. Edgard A. Cabangon, chairman of the board of Eternal Gardens, noted in his brief remarks, “It is exactly five months since my Dad passed away. I am sure he is now looking down on us, happy that we are together on this great occasion.” The Ambassador bid farewell to Eternalites and the rest of the ALC Group of Cos. on March 11, a Friday, a day he spent without fail going to Quiapo Church in Manila in keeping with his devotion to Jesus as the Black Nazarene. A brightly lit stage splashed a greeting in bold letters extolling the occasion, while an almost life-size standee portrait of the Ambassador was by the right side of the stage, showing him in confident pose, smil-

ing and his arms folded before him. “We best honor and show our love for him by keeping alive his legacy of hard work, determination and perseverance to reach our goals,” Cabangon told the Eternalites. The crowd that filled the grand ballroom of Citystate Tower Hotel included officers and staff from the head office in Makati, and managers and representatives from each of the 10 branches of Eternal Gardens. Highlighting the occasion was the presence as special guests of pioneer officers and sales workers who helped the Ambassador set up the company and overcome great hurdles encountered in the earliest days 40 years ago, when the concept of the modern first-class memorial park was something new and unfamiliar with Filipinos. Among them were former Mindoro Oriental Rep. and Gov. Rodolfo G. Valencia, veteran publicist and newsman Juan P. Dayang, marketing executive Antonio Lorenzo and several sales agents who pioneered the offering of the products and services of Eternal Gardens to the public.

In his own remarks, Valencia, who had been the Ambassador’s business associate for several years before he left business to join politics, said among the business undertakings where he had worked with the Ambassador, “Eternal Gardens, under the direct leadership of Pareng Tony, proved to be the most successful.” At that time of his younger days, the founder was better known as Col. Tony Cabangon Chua, being a reservist in the Armed Forces. Valencia recalled that under the Ambassador’s vigorous management, the pioneering leaders of Eternal Gardens attracted many accomplished memorial-industry professionals to join the fledgling company. Among them were Tony Lorenzo, Gabriel Vida and many other competent memorial-industry expert workers. Four decades after those early struggling days, Valencia said, he was happy to see that “Eternal Gardens is one of the most successful business enterprises in the country,” growing from one humble park in Baesa, Caloo-

can, to a chain of 10 memorial parks in key places all over the country today.” Presentation of the Service Awards also highlighted the special event. A total of 33 Eternalites were recognized for their loyal service to the company for five, 10, 15, 20, 25 and 35 years, headed by Executive Secretary Rosario T. Lachica, a 35-year service awardee. In her message, Lachica thanked the management of Eternal Gardens and the Cabangon family “for all the opportunities you have given me all these years.” Another important part of the evening was the unveiling of the trophy for the Business Excellence Award of Eternal Gardens. Measuring 6 feet in height, the stainlesssteel trophy will be awarded at the end of the year to the branch of Eternal Gardens that will be adjudged best in excellence in the areas of sales, finance, operations, marketing and human resources. The award will be held for one year by the winning branch and the same trophy will be passed on to the succeeding winners each year.

@joveemarie

he think tank of the House of Representatives strongly supports the proposal to change the country’s form of government from presidential to federal. Dr. Romulo Emmanuel M. Miral Jr., director general of the Congressional Policy and Budget Research Department (CPBRD), said government officials will be more accountable for their acts under the federal system of government. “What is important in the federal form of government is you give them [states] the power to carry out their functions and hold them accountable for those functions assigned to them,” Miral said in an interview with the BusinessMirror. Under the federal system, Miral said responsibilities of the national government and the states will be defined clearly. “The responsibilities of both national and [states] will be clearer, particularly in the use of government resources,” he said. “This accountability will result to significant change, and that change would reflect on the country’s economic growth,” Miral added. According to Miral, coordination and cooperation between national and states will be strengthened under the proposed system. “[Another important thing is] we will come up with institution and rules that would facilitate those coordination and cooperation [between the national and states] which, unfortunately, are very weak in our current system,” Miral said. Speaker Pantaleon D. Alvarez has said a shift to the federal form of government would bring a longlasting solution to the centuries-old problem of poverty, because growth of the regions had been stifled under the unitary form of government that colonizers, like Spain and America, imposed on the country primarily for better administrative control. “Right now, all the provinces and regions are being controlled by the central government, because we have a unitary form of government. Now, by shifting to a federal form of government, these regions or states can

manage their own economy, manage their own natural resources, create opportunities for their people,” Alvarez said. He said under such a system, the masses will also enjoy the benefits of an improved economy, unlike in the present system, where the benefits of economic growth are not felt by ordinary people. Moreover, Miral said the problem of uneven development and poverty in the country may also be addressed under federal government. “The problems we have now are uneven development and poverty, and these problems somehow are attributed to [centralization]. Some of the problems are in the LGU [local government unit] level but it is still the national government who delivers the services,” he added. Earlier, Nacionalista Rep. Luis Raymund Villafuerte of Camarines Sur said the shift to a federal form of government is needed if the government wants to create economic zones and spur development outside Metro Manila. Villafuerte said a federal government structure would truly bolster President Duterte’s plan to decongest Metro Manila by attracting investments in the regions, thus stimulating development and creating jobs in the countryside. He added these economic zones should preferably be put up in provinces where there are coastlines, like what they do in Thailand and Indonesia, in order “to spur growth and development strategically and geographically.” Currently, the lawmaker said over 50 percent of economic zones are in either Metro Manila or neighboring provinces like Cavite, Laguna and Batangas. In our current form of government, all funds are centralized in the National Capital Region and the provinces need to remit their income to the National Treasury. Federalism means autonomy in government rules per province, with independent taxation and economic system. Under the federal form of government, provinces will no longer remit their income to the national treasury, but they will be required to give a percentage of their income to the national government. A new Constitution is also needed for federalism to push through.

news@businessmirror.com.ph

AseanMonday BusinessMirror

Monday, August 15, 2016 A5

Indonesia mulls developing tax-haven areas to lure investment

ndonesia is considering options for setting up tax-haven jurisdictions as it tries to lure back billions of dollars through its amnesty program to fund infrastructure projects and finance the widening budget deficit, Coordinating Maritime Minister Luhut Panjaitan said on Sunday.

News of the haven plan follows an announcement by the government on August 11 that it would allow repatriated funds to be invested in assets, such as gold and property. The central bank has said the tax amnesty program could attract about 560 trillion rupiah ($43 billion) of funds stashed overseas. More avenues to park the repatriated money may encourage greater participation and help President Joko Widodo partly

plug a shortfall in tax revenue as the nation grapples with a slowdown in China and low commodity prices. “It is still in early stage,” Panjaitan wrote in a mobile-phone text message. “The government still needs to discuss the technical aspect of it.” Indonesian and foreign businesses would be able to set up shell companies in Bintan and Rempang and enjoy lower tax, the Jakarta Globe reported, citing Panjaitan. Both islands are around 60 kilometers (37 miles) away from Singapore. The expectation that the amnesty will draw funds into the country appears to be putting upward pressure on the rupiah, domestic asset prices and demand, Edward Teather, a Singaporebased senior economist at UBS Group AG, wrote in a note sent by e-mail before the August 11 announcement. The rupiah has strengthened 5.1 percent this year. The Jakarta Composite Index has rallied 17 percent, making it the third-best performer in Asia, so far, in 2016. Bloomberg News

$43B The estimated amount of repatriated funds that could be attracted by Indonesia’s tax-amnesty program

Rony Zakaria/Bloomberg

Yamaha sees Asean push lifting Asustek shifts tack to smartphones in Thailand margins amid Indonesia slump

Yanagi

amaha Motor Co., which sold a third of its motorcycles in Indonesia last year, plans to make up for a slump in the market by boosting sales to the rest of Southeast Asia with new models and almost double profit margin in the region. The operating profit ratio for the two-wheeler business in the Asean region may reach 10 percent as soon as this year, compared with 5.7 percent in 2015, CEO Hiroyuki Yanagi said in an interview. That’s at least a year ahead of projections by Koichi Sugimoto, an analyst at Mitsubishi UFJ Morgan Stanley. Indonesia’s economy is feeling the effects of a slowdown in China, its top export market, and slumping commodity prices, weighing on a motorcycle market Yamaha counts on for sales. The manufacturer has introduced models built on common platforms, such as the M-SLAZ sports model and the NMAX scooter, to reduce costs and boost profitability in Southeast Asia markets Viet-

nam, Thailand and the Philippines. “As they upgrade the model lineup, the margins will greatly improve,” Sugimoto said by phone. “The new models have much better margins.” Yamaha rose 2.7 percent to ¥1,935, the highest level since June 1, at the close in Tokyo. The shares have jumped 26 percent since July 12, when Nikkei Inc. said the company would replace Sharp Corp. on the Nikkei 225 Stock Average from August 1. The benchmark index has gained 5.1 percent in the same period. Yamaha last week cut its fullyear net income forecast by 25 percent to ¥60 billion ($591 million), as the yen strengthens and sales in Indonesia are estimated to plunge about 40 percent from 2014 levels. Indonesia’s market may recover next year, Yanagi said on Tuesday. The operating profit margin for the company’s two-wheeler business in the Asean region widened to 7.8 percent in the first half, according to Yanagi. Bloomberg News

sustek Computer (Thailand), the local operating unit of Taiwanese PC maker Asus, is aiming to boost its smartphone sales to make mobile handsets the core of its revenue engine. The company is also seeking out robotics and Internet of Thingsbased devices that could become new growth engines to offset declining computer sales. “We aim to drive our smartphone sales revenue to surpass computer sales revenue within the next three years,” said Eric Chen, corporate vicepresident of Asus. Although the global smartphone market growth cycle has reached maturity, Chen said the growth of worldwide smartphone shipments reached 1.4 billion units in 2015—five times higher than global computer sales of 300 million units last year. He said computer revenue accounted for 70 percent of Asus’s total income last year, with smartphones making up 15 percent. Chen said Asus is investing in its smartphone research and development (R&D) infrastructure to enhance its innovation and design capabilities. “We’re positioning ourselves as a premium lifestyle brand, rather than a tech-savvy brand,” he said. Chen said Asus has allocated 80 percent of its marketing budget to operating units in Indonesia, Vietnam, Thailand and Malaysia to promote its smartphone brand in the high-growth region. “We rank No.2 among smartphone vendors with an 11percent market share in Asean

Environment advocates: Declare Spratlys marine-protected area

n environmental advocacy group and a private think tank have expressed support to push for the declaration of the Spratlys as a marine protected area. Ysan Castillo, secretarygeneral of the Philippine Business Environmental Stewardship (PBEST), said the damage done to the marine ecosystems in the area is shocking. “There must now be a conscious effort to protect remaining coral reefs and preserve marine resources,” Castillo lamented. Castillo said protection of the fragile marine resources in the Spratlys is critical being the spawning area of fish caught in the coastal waters of Luzon, Palawan, Malaysia, the Sulu seas, Brunei Darussalam, Vietnam, as well as China. Castillo aired the urgent

environmental concern during a forum held on August 11, entitled “Post-Arbitration Series: A Focus on the Harm Done to the Environment,” organized by The Stratbase Institute (ADRI) and PBEST, in partnership with the Office of the Chancellor and the International Studies Department of the De La Salle University-Manila. Stratbase ADRI President Dindo Manhit said, “We cannot afford a major fisheries collapse that will cause starvation to millions of people in the nations surrounding the Spratlys. “A declaration by all concerned countries to preserve marine resources and the banning of destructive fishing in the disputed waters will be a positive move for food security and peace in the region.” Manhit asked what happened to environmental

groups who claim to espouse the rights of the marginalized. “I believe the Filipinos need their zeal in this one,” Manhit remarked, when the destructive fishing practices of the Chinese were discussed during the said forum. “The bottom line is that the government must unite every Filipino to one position where the nation can effectively stop the destruction of our marine environment,” Manhit said. Prof. John McManus of the University of Miami pegs the economic damage from China’s incursions at nearly $6 billion per year from the destruction of an estimated 16,200 hectares of coral reef. This approximation only factored in the environmental services provided by the coral reefs, not the human anguish brought about by this dispute. That is harder to ascertain.

2.5M The number of computer units sold by Asustek in Thailand last year

after boosting our presence in the region the last two years,” he said. Jeff Lo, the country manager of Asustek Computer (Thailand), said it aims to double its smartphone market share in

Thailand to 10 percent this year, moving it into the top 3 handset vendors locally. Asus recently appointed actress Praya Lundberg as a brand ambassador to reflect its position as a premium lifestyle brand. The company rolled out its third smartphone series, Zenfone 3, priced from 11,990 to 28,990 baht. “We’re focusing on mobile phones with prices ranging from 10,000 to 20,000 baht, a segment that accounts for 20 percent of local smartphone sales,” he said. Sales of smartphones in Thailand are projected to have

single-digit growth to 14 million units this year, thanks to intense competition in the 4G wireless broadband market. Chen said Thais now use computers longer than before— an average of six years— compared with three to four previously. Computer sales in Thailand reached 2.5 million units in 2015, compared with 8 million to 9 million in 2010. Globally, Asustek reported consolidated revenue of $14 billion in 2015. Some 3 percent of annual revenue is slated for R&D investment. TNS

Monday, August 15, 2016 • Editor: Lyn Resurreccion

Venezuelans cross Colombian border for food and medicines

The World

UCUTA, Colombia—They came looking for flour, pasta and cooking oil. They came looking for blood-pressure medicine, spark plugs and condoms. They came looking for loved ones and a way out. As Venezuelans on Saturday were allowed to cross the border into Colombia for the first time in almost a year, the river of wants they brought with them provided a stark glimpse of the needs on the other side of the border. Carlos Texeiro traveled more than 400 miles from the city of Maracay with two empty suitcases for the chance to do a few hours of shopping in Colombia. Asked what he planned to take back with him, he said “anything I can find.” But his primary goal was to buy diapers and powdered milk for his granddaughter. Baby products are some of the hardest things to score in shortage-plagued Venezuela. Texeiro, a candy salesman, said people aren’t going hungry in Maracay yet, but they’ve had to radically change their diet. “We can get fruits and vegetables,” he said. “What we don’t have are the things we eat every day, flour and pasta. Meat is just too expensive.” “I wouldn’t say there’s hunger but there’s huge lines, you have to wait in line to get anything you might want,” he added. “And you have to get lucky, very lucky.” Others painted a darker picture. Nelson Buque said he lost 60 pounds in the past five months. A cabdriver in Miranda state, he said sometimes he goes home with cash but still hungry because he can’t find anything to eat. “If you did find something open there would be lines that stretched for kilometers,” he said. Trade along the 1,274-mile Venezuela-Colombia border has traditionally thrived. But on August 19, 2015, Venezuelan President Nicolas Maduro began closing border crossings as he blamed Colombian “paramilitary groups” for attacking guards who were on an anticontraband mission. The border had been temporarily reopened a few times occasions since then, sparking huge waves of Venezuelan shoppers. On Thursday, however, the two governments said they had agreed to keep the border permanently open, but only to foot traffic and only during daytime. Saturday’s 6 a.m. opening had a festive feel to it, as a military marching band greeted weary travelers, and police handed out balloon animals to children. Families waited to greet relatives they hadn’t seen since the border was closed. Migration officials here are expecting 80,000 to 100,000 people to cross the border this weekend. Travelers are required to fill out paperwork, which was causing bottlenecks but also seemed to be limiting the flow of people pouring into the city. Not everyone was crossing with the intention of going home. Alexandra Zapata said that when she heard that the border would be open, she knew it was time to make a decision. She had a job at the mayor’s office in San Cristobal, a position, she says, that would be prestigious in any other country. But in Venezuela she didn’t earn enough to keep food on the table. She and her boyfriend crossed the international Simon Bolivar bridge on Saturday morning with the aim of getting to Colombia’s capital, Bogotá. While Colombia is flush with goods, it’s also expensive for Venezuelans who rely on their devalued bolivar currency. As she and her boyfriend ate three empanadas, Zapata noted that the snack cost about one-tenth of her monthly salary. Even so, she thinks life will be better on this side of the border. “There’s not a future for young people in Venezuela,” she said. TNS

BusinessMirror

GOP nearing breaking point with Trump over his gaffes

Republican presidential candidate Donald Trump points to the crowd after speaking during a campaign rally at Lackawanna College on July 27 in Scranton, Pennsylvania. Jake Danna Stevens/The Times and Tribune via AP

LTOONA, Pennsylvania— The Republican Party could be nearing a breaking point with Donald Trump.

As he skips from one gaffe to the next, GOP leaders in Washington and in the most competitive states have begun openly contemplating turning their backs on their party’s presidential nominee to prevent what they fear will be wide-scale Republican losses on Election Day. Back in 1996, the party largely gave up on nominee Bob Dole once it became clear he had little chance of winning, so it’s not without precedent. Nevertheless, it’s a jolting prospect now, with roughly three months still left before the November 8 vote and weeks before the three presidential debates. Republicans who have devoted their professional lives to electing GOP candidates say they believe the White House already may be lost. They’re exasperated by Trump’s divisive politics and his insistence on running a general election campaign that mirrors his approach to the primaries. “Based on his campaign record, there’s no chance he’s going to win,” said Sara Fagen, the political director for former President George W. Bush. “He’s losing groups of people he can’t get back.” Trump’s campaign says things are moving in the right direction, a position that itself feeds the discontent among his GOP detractors. The billionaire businessman’s loyalists say enough time remains to change the dynamic against Democrat Hillary Clinton who, like Trump, is deeply unpopular with voters. And his backers are blaming the media for the perception that all is not well. “Frankly, a lot of stuff over the last week...it’s him being distorted,” said Trump’s campaign chairman, Paul Manafort. “For the last week or so, he’s been very focused and very much on his game.” Trump did show some modest improvement as a candidate in the past week. He has stopped criticizing a Muslim family of a fallen US soldier. Gone are the fights with some of his party’s most respected members of Congress. But also in the past seven days, Trump has questioned the advice of

senior aides, threatened to stop raising money for the party, dismissed the usefulness of get-out-the-vote efforts and defended his decision not to run any television ads even as his opponents fill the airwaves with spots backing Clinton in several contested states. It all largely overshadowed the content of 44 previously unreleased email exchanges Clinton had while at the State Department. They became public on Tuesday and showed her interacting with lobbyists, political and Clinton Foundation donors and business interests while serving as secretary of state. “He can’t simply continue to preach to the choir and think he’s going to put together a coalition that will win the White House,” said Ryan Williams, a party strategist and former aide to 2012 GOP nominee Mitt Romney. “He’s essentially guaranteeing that he will lose by refusing to clean up his mistakes and stop committing future ones.” The mistakes do keep coming. Trump this past week stuck by a patently false claim that President Barack Obama founded the Islamic State group. The candidate made an off-handed remark about Clinton that was widely condemned by critics as an invitation to violence. He even acknowledged that losing might not be so bad. “I’ll just keep doing the same thing I’m doing right now,” he told CNBC on Thursday. “And at the end it’s either going to work or I’m going to you know, I’m going to have a very, very nice, long vacation.” All of it, to some Republicans, should lead the party to give up on its nominee. More than 100 GOP officials, including at least six former members of Congress and more than 20 former staffers at the Republican National Committee, have signed a letter asking the party chairman, Reince Priebus, to stop helping Trump’s campaign. They call the New York real estate mogul a threat to the party and to the nation. They want the RNC to take resources now helping Trump and shift them to vulnerable GOP

candidates for House and Senate. The letter follows a steady stream of recent defections from Republican elected officials and longtime strategists who vow never to support Trump. They want party leaders to acknowledge that backing his White House bid is a waste of time and money. “They’re going to do it sooner or later. They might as well do it sooner to have more impact,” said former Minnesota Rep. Vin Weber, one of the Republicans to sign the letter to Priebus. Senior Republicans in Washington and in some of the most contested states have discussed a scenario in which the party scales back its presidential focus in states that don’t feature top races for Senate. They could abandon a state such as Virginia, for example, and focus more on a state such as Indiana, where Democrat Evan Bayh is trying to make a Senate comeback. That’s according to several Republican officials in Washington and states that would be affected, including Ohio, Pennsylvania and New Hampshire. They spoke to The Associated Press on the condition of anonymity because they were not authorized to describe publicly those private discussions. There is no evidence that a formal plan to break with Trump exists at either the state party or RNC level, but Priebus has informally discussed the possibility with party leaders in battleground states in recent days, three of the officials said. Should that occur, it’s not likely to happen until after Labor Day, as the party is still relying on Trump to help raise money to fund its expansive political operation. But the amount of money needed decreases as each day passes, giving the RNC greater financial freedom to potentially change course as the election nears. For now, Priebus is vocally supportive of Trump. The party chairman joined the nominee on Friday, part of a larger effort to ensure an experienced political hand is almost always at the candidate’s side when he travels. Others keeping Trump company this past week include former Arkansas Gov. Mike Huckabee and former New York City Mayor Rudy Giuliani. “We’ve always found it’s wise to have people traveling with him, because it’s an opportunity to have him engaged and not just sitting there,” Manafort said. Some credit that strategy for

126

The approximate number of GOP officials, former members of Congress and former staffers at the Republican National Committee, who have signed a letter asking the party chairman to stop helping Trump’s campaign

Trump’s avoiding devastating unforced errors, such as his tussle with Khizr and Ghazala Khan, the Muslim-Americans parents whose son, US Army Capt. Humayun Khan, was killed in Iraq in 2004. Manafort also has privately assured swing state Republicans that Trump no longer will attack party rivals—House Speaker Paul Ryan of Wisconsin, Arizona Sen. John McCain and Ohio Gov. John Kasich among them. But it’s hardly foolproof. After several error-free days, Trump caused a major stir on Tuesday when his comments about supporters of the Second Amendment’s right to bear arms were viewed by some as advocating violence against Clinton. He came in for criticism again after saying on Wednesday that Obama was the “founder” of IS, a false claim he repeated several times on Thursday—even when given the chance to tone down his attack on the president’s foreign policies. On Friday Trump started the day saying he was only being sarcastic, before telling a Pennsylvania rally, “but not that sarcastic, to be honest with you.” It’s those kinds of moments that lead experienced Republicans to think Trump cannot be saved from himself. “He’s almost like someone with an addiction who can’t stop,” Fagen said. “Until he gets help and admits it, he won’t be able to change.” The dissension in the Republican ranks hasn’t affected Trump’s ability to draw supporters to his rallies. Lisa Thompson, a firefighter from St. Cloud, Florida, is among the many who continue to stand in long lines for hours to see Trump at his events. AP

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US-backed Syrian force captures IS stronghold

EIRUT—On the streets of Manbij, men chanted slogans against the Islamic State (IS) group or clipped their beards and women walked with their faces uncovered for the first time in over two-and-a-half years, hours after the militant group was pushed out of the northern Syrian city. US-backed fighters seized the key IS stronghold late on Friday after two months of heavy fighting that killed more than 1,000 people and displaced thousands. The fighters also freed hundreds of civilians the extremists had used as human shields, Syrian Kurdish officials and an opposition activist group said. The capture of Manbij is the biggest defeat for the extremist group in Syria since July 2015, when they lost the town of Tal Abyad on the border with Turkey. The capture of Tal Abyad deprived the militant group of a direct route to bring in new foreign militants or supplies. Manbij is important because it lies on a key supply route between the Turkish border and the city of Raqqa, the de facto capital of the IS group’s self-styled caliphate. Manbij had been under IS control since January 2014, when the extremists evicted other Syrian militant groups from the town. The IS’s loss of Manbij followed two months after they lost the Iraqi city of Fallujah. Nasser Haj Mansour, of the predominantly Kurdish Syria Democratic Forces (SDF), told The Associated Press that the town of Manbij “is under full control,” adding that operations are ongoing to search for any IS militants who might have stayed behind. The SDF launched its offensive in late May to capture Manbij, and was supported by US-led air strikes. Amateur videos posted online showed that shortly after SDF fighters captured the town late Friday, scores of residents went down to celebrate in the streets. A man was filmed trimming his own beard with scissors, and then moving to clip the beard of another man on a motorbike. Women were able to uncover their faces. IS imposes a harsh and extreme version of Islam on the territory under its control, including a mandatory dress code. “May God destroy them. They slaughtered us,” a young man shouted in a Manbij square. “May they not live for a minute.” The videos appeared genuine and corresponded to Associated Press reporting of events. In a photo posted online by Kurdish activists, a young woman defiantly uncovered her face while smoking a cigarette and flashing a victory sign. Under the extremists’ rule, women had to wear long black cloaks that covered all but their eyes, while all adult men were forced to grow beards. Smoking was banned. Haj Mansour said some IS fighters were captured in the town while others fled to nearby villages. “Military operations will continue until these villages are clean,” Haj Mansour said. AP

briefs

3 killed in ‘historic’ Louisiana floods; thousands rescued

BATON ROUGE, Lousiana—At least three people were killed across Louisiana, and the rescues were continuing late on Saturday, including missions by crews in high-water vehicles who went car to car to pluck motorists from a flood-soaked interstate. Maj. Doug Cain from the Louisiana State Police said about 125 vehicles were stranded on a seven-mile stretch of Interstate 12 near Baton Rouge and the occupants were being taken to safety. `In one dramatic moment earlier in the day, two men on a boat pulled a woman from a car that was almost completely underwater, according to video by WAFB, a CBS-affiliated television station. The woman, who is not initially visible on camera, yells from inside the car: “Oh my god, I’m drowning.” AP

2 men fatally shot near NYC mosque, police say NEW YORK—Outraged members of the Islamic community in Queens rallied on Saturday evening, hours after an Ozone Park imam and his assistant were shot and killed on the street two blocks from their mosque. NYPD officials said they had not determined a motive in the afternoon shooting deaths of Maulama Akomjee, 55, an imam at the al-Furqan Jame Masjid, and Thara Uddin, 64, of Queens. Uddin was identified as an assistant imam at the mosque by the Council on American-Islamic Relations in New York. TNS

The World BusinessMirror

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Trump, Clinton missed vital points in their econ speeches

ASHINGTON—Donald Trump and Hillary Clinton spelled out their economic visions in high-profile speeches in Michigan this week. They delved into taxes and regulations, trade deals and job growth. Yet perhaps most notable about their speeches is what they left out. Mostly unmentioned were major challenges that have slowed the US economy and made goodpaying jobs harder to find, particularly in struggling pockets of the country. They are challenges that tend to preoccupy economists and defy simple fixes: A less efficient workforce. A dwindling proportion of adults either working or looking for work. Automation and increasingly high-skilled jobs that require technological know-how that many people lack. They are problems that analysts say require a transformative vision. Yet, neither candidate voiced anything like the highreaching themes that were hallmarks of previous campaigns— from Bill Clinton’s “Bridge to the 21st century,” which urged Americans to face a more globalized economy, or George W. Bush’s “No Child Left Behind,” which sought to overhaul public education to better serve more children. Each promised a bright future but also spotlighted the country’s challenges. “It’s much easier to be

0.5% The percentage of the work force’s average growth each year in the last decade, barely half its post-World War II pace

either optimistic about the future or harp on problems that voters already recognize,” said Daron Acemoglu, an economist at the Massachusetts Institute of Technology who has studied the impact of automation on the workforce. When Trump spoke on Monday and Clinton followed on Thursday, each pledged more spending for rebuilding roads, bridges, tunnels and other infrastructure, which many economists say is long overdue. Such work, beyond creating more construction jobs, could ultimately lower transportation costs, raise workers’ productivity and accelerate economic growth. But economists worry that the

United States faces long-run challenges beyond dilapidated airports and tunnels. An economy’s ability to expand is shaped largely by two trends: The size of its work force and how much its workers produce for each hour on the job. In both areas, the US is weakening. In the past decade, the work force has grow n an average of just 0.5 percent a year— barely ha lf its post-World War II pace. Much of that slowdow n is due to the continuing retirements of the vast baby-boom generat ion, 10,0 0 0 of whom t u r n 6 5 e v e r y d a y. S i m i l a r demog raphic trends are a lso bedev iling Europe and Japan. And productivity—output per hour worked—has increased an average of just 0.6 percent a year in the past five years, the slowest pace since the recession of the early 1980s. Rising productivity is vital to raising living standards because it allows businesses to pay employees more without having to raise prices. All of which means the United States may be stuck in a low-growth rut for years to come. Federal Reserve officials now estimate that the economy’s growth potential is only 1.8 percent to 2 percent a year, down from 2.5 percent to 2.8 percent five years ago. That broader slowdown went unmentioned by either candidate. Potential solutions are complicated and in many cases wouldn’t be popular with voters. For example, most economists consider increased immigration not a problem but a solution—to the challenge of an aging US work force. More legal immigrants would

accelerate work-force growth. Yet, few issues are as contentious in this election. William Galston, a senior fellow at the Brookings Institution, said immigration reform, if it provided a path to citizenship for people who entered the country illegally, would be economically beneficial—in part because it would bar employers from underpaying those workers and thereby give them more spending power. Galston argued that Japan’s economy, which is aging faster than the US and has barely grown for two decades, has suffered from an “absolute refusal to countenance immigration.” In her speech, Clinton briefly mentioned “comprehensive immigration reform” and said it would “unleash a lot of new income and growth.” Trump, who launched his campaign with promises to build a wall to keep out Mexicans, barely mentioned the issue. Clinton also proposed helping more students attend college, increasing training for those who don’t and spending more on “scientific research that can create entire new industries.” Those steps might help boost productivity over time if they improved workers’ skills. But Clinton didn’t cast them as potential remedies for weak productivity. Rather, she hailed the US workforce as the “most productive” in the world. Openings for such high-skilled jobs as data scientist, software engineer, physician’s assistant and nurse practitioner have grown fast since the Great Recession. Yet, they require more skills than many workers have, particularly older

people with less education. That trend has contributed to a sharp drop in the proportion of Americans in their prime working years— ages 25 through 54—who either have a job or are looking for one. And automation is threatening lower-paying jobs. Self-driving cars, check-in kiosks at airports and hotel and potentially touchscreen ordering at restaurants could put more lower-sk illed Americans out of work. “We’re really just seeing the very beginning of robots competing with workers,” Acemoglu said. The consequences “could be potentially very disruptive if we pursue business as usual. Or they could be amazingly fruitful if we adapt to them.” Acemoglu says this would require overhauling high-school education to provide more skillsrelated training, rather than waiting for community college, in addition to providing training for current workers. Yet, instead, both candidates spent considerable time discussing ways to revitalize American manufacturing. Trump focused more on old-line sectors, like autos, planes and steel, which have mostly shrunk in recent years. Clinton cited “advanced manufacturing” that requires greater skills. Yet, modern factories that use more technology typically don’t employ as many people as those that are retrenching. “I would like to see the work force prepared for the jobs of tomorrow, rather than bringing back the jobs of the past,” said Tara Sinclair, chief economist at Indeed, a jobs-listing web site. AP

ON his 90th birthday

Fidel Castro thanks Cuba, hits Obama H

AVANA—Former Cuban President Fidel Castro thanked Cubans for their well-wishes on his 90th birthday and criticized President Barack Obama in a lengthy letter published in state media. He appeared, but did not speak, at a gala in his honor broadcast on state television. “I want to express my deepest gratitude for the shows of respect, greetings and praise that I’ve received in recent days, which give me strength to reciprocate with ideas that I will send to party militants and relevant organizations,” he wrote about his birthday on Saturday. “Modern medical techniques have allowed me to scrutinize the universe,” wrote Castro, who stepped down as Cuba’s president 10 years ago, after suffering a severe gastrointestinal illness. Just after 6 p.m., he could be seen in footage on state television slowly approaching his seat at Havana’s Karl Marx theater, clad in a white Puma tracksuit top and green shirt. He s at i n w h at a p p e a re d to be a n espec i a l ly equ ipped wheelc ha ir a nd watc hed a music a l t r ibute by a c h i ld ren’s theater company, accompanied by foot age of h igh l ights f rom h is decades in power. He sat alongside his younger brother, President Raul Castro, and President Nicolas Maduro of Venezuela, along with Cuba’s highest-ranking militar y and civilian officials. In his letter,

Monday, August 15, 2016

briefs

Japan plans to develop missiles to protect islands, ‘Yomiuri’ says

The Japanese government has decided on a plan to develop landto-sea missiles with a range of 300 kilometers to protect the nation’s isolated islands, including the Senkaku, the Yomiuri newspaper reported, without saying where it got the information. Costs for development will be part of the defense ministry’s budgetary request for the fiscal year ending March 2018, according to the Yomiuri. The government will aim for deployment around the year ending March 2024, it said. China has been stepping up pressure on Japan over the disputed Senkaku Islands, which are called Diaoyu in Chinese. Hundreds of fishing boats and more than a dozen coastguard vessels have been spotted recently in the area, encroaching at times on what Japan sees as its territorial waters. Any escalation in the long-running dispute between Asia’s two largest economies over the uninhabited islands raises the risk of an unintended military clash. Ties between the major trading partners suffered a sharp deterioration in 2012, when Japan bought three of the East China Sea islands from a private landlord, but tensions receded several years into the administrations of Japanese Prime Minister Shinzo Abe and China’s President Xi Jinping. China had also been focused primarily on separate territorial disputes it has in the South China Sea. Bloomberg News

Pelosi got obscene messages after House cyber-security breach

WASHINGTON—House Minority Leader Nancy Pelosi told fellow Democrats to change their phone numbers and not let family members read their text messages after a cybersecurity breach led to the release of personal information of members of Congress and their staff. “I have received scores of mostly obscene and sick calls, voicemails and text messages,” Pelosi said on Saturday in a letter to party members. “Please be careful not to allow your children or family members to answer your phone.” Friday’s was the latest release of information from cyber attacks—including those by groups with purported ties to Russia—against Democratic organizations as the 2016 elections heat up. Pelosi said the Democratic Congressional Campaign Committee has hired a cyber-security technology firm to investigate the breach, which she termed “an electronic Watergate break-in,” and that the Capitol Police were looking at any threats posed by the release. The House informationtechnology system wasn’t compromised. Bloomberg News/TNS

Novartis Korea executives charged with bribing doctors

Cuba’s former President Fidel Castro (center, right) attends a gala for his 90th birthday accompanied by his brother and current President Raul Castro (center, left) and Venezuela’s President Nicolas Maduro (right) at the Karl Marx theater in Havana, Cuba, on Saturday. Ismael Francisco, Cubadebate via AP

Castro accompanied his thanks with reminiscences about his childhood and youth in eastern Cuba, describing the geology and plant life of the region where he grew up. He touched on his father’s death shortly before his ow n v ictor y in overthrow ing US-backed strongman Fulgencio Batista in 1959. Castro returns at the end to criticize Obama, who appeared to anger the revolutionary leader with a March trip to Cuba, in which he called for Cubans to look toward the future. A week

after the trip, Castro wrote a sternly worded letter admonishing Obama to read up on Cuban histor y, and declaring that “we don’t need the empire to give us anything.” In Saturday’s letter, he criticizes Obama for not apologizing to the Japanese people during a May trip to Hiroshima, describing Obama’s speech there as “ lacking stature.” The Cuban government has taken a relatively low-key approach to Castro’s birthday, in comparison with the large-scale

gatherings that had been planned for his 80th. Along with the Saturday evening gala, government ministries have held small musical performances and photo exhibitions that pay tribute to the former head of state. Castro last appeared in public in April, closing the twice-adecade congress of the Communist Party with a call for Cuba to stick to its socialist ideals amid ongoing normalization with the US. The need for closer economic ties with the US has grown more urgent as Venezuela, Castro’s

greatest ally, tumbles into economic free-fall, cutting the flow of subsidized oil that Cuba has depended on the South American country for more than a decade. Meanwhile, tens of thousands of Cubans are migrating to the US, hollowing out the ranks of highly educated professionals. The brightest spot in Cuba’s flagging economy has been a postdétente surge in tourism that is expected to boom when commercial flights to and from the US, Cuba’s former longtime enemy, resume on August31. AP

SEOUL, South Korea—Prosecutors have indicted a former chief executive of the South Korean unit of Novartis and five other former and current company managers over allegations that they illegally paid doctors 2.6 billion won ($2.3 million) in return for prescribing the company’s drugs. In response, the Swiss pharmaceutical company expressed regret through a statement this week, but also said without elaborating that such conduct would not have been sanctioned by the “most senior management” at Novartis Korea. “Novartis does not tolerate misconduct and we are already implementing a remediation plan in Korea, based on the findings from our own investigation,” the Basel-based company said. AP

A BusinessMirr

A8 Monday, August 15, 2016 | www.businessmirror.com.ph

MANILAMED CELEBRATES 49 YEARS OF COMPASS A By Leony R. Garcia

GROUP of distinguished physicians who were graduates of the University of the PhilippinesPhilippine General Hospital (UP-PGH) returned in the Philippines in 1965, after many years of specialized training in the United States.

The six doctors, headed by Nobel Prize nominee and National Scientist for Nuclear Medicine Dr. Paulo C. Campos, pooled their limited financial resources to set up in the City of Manila a small laboratory with basic capabilities. This laboratory—the Medilab—was the beginning of a vision of comprehensive medical care that integrates a hospital and a medical-insurance system under the University Physicians’ Services Inc. (UPSI). Backed financially up by a nonmedical group headed by Soledad Lirio-Dolor, the UPSI established Medical Center Manila on July 29, 1967. What it had to offer was

the best and most advanced medical and diagnostic equipment and a staff of well-known and experienced consultants who are specialists in their respective fields. On August 15, 1967, the hospital was formally inaugurated as Medical Center Manila with Dr. Campos as its first medical director. Under the administration of the Sisters of Saint Paul de Chartres, it opened with an initial capacity of 176 beds for adults and children, and 24 bassinets in the nursery. In 2009 the hospital was renovated to such an extent that it was hardly recognizable. It became a very modern facility and was expanded to a capacity of 250 beds. The Philippines is considered as one of three major health-care destinations that foreign tourists should consider if they have a medical emergency, perhaps, owing to its location, being near the Ermita area, which was popular with tourists, adjoining Rizal Park and the Manila Ocean Park. On August 1, 1987, UPSI created the Hospital Management Services Inc. (HMSI) as the legal entity that will own, manage and operate the Medical Center Manila. Over the years the hospital enjoyed stability due to its reputation as home to many of the nation’s respected physicians in their field of specialization, who

have undergone extensive training locally and internationally; its affordable services; the “Patients Come First” philosophy and complimented by state-of-the-art facilities and equipment, and personalized services of highly competent and caring hospital staff. Along with the comprehensive medical-facility upgrade and total hospital-rehabilitation program that the young and the dynamic medical consultants were admitted to complement its present set of senior medical experts. Its roster of highly competent and well-known physicians had undergone extensive training in the Philippines and abroad. 2013 Ramon Magsaysay Award-

ee Dr. Ernesto O. Domingo began his private practice at Medical Center Manila upon his retirement from UP in 2011, while continuing his publichealth advocacy of advancing universal health care in the Philippines, which eventually led to the crafting of the government’s “Kalusugang Pangkalahatan” (Universal Health Care) program. In March 2013 Mount Grace Hospitals Inc. (MGHI) bought majority shares of HMSI and now operates and manages Medical Center Manila, rebranding it with its former nickname ManilaMed. Today all rooms for adults and patient wards are air-conditioned. Rooms range from very fancy rooms, with many ameni-

UPGRADING & DEVELOPMENT IN MANILA ManilaMed keeps on giving only their best

UGUST is ManilaMed’s anniversary month. The medical institution continues its commitment to help its clients feel better with various improvements to ensure optimal service delivery and patient comfort. As you approach ManilaMed, you will feel revitalized as the greenery welcomes you. Studies have shown that elements of nature are guaranteed to uplift anyone’s disposition. This complements the clean and nicelyscented in the hospital. Staff members greet you with smiles and offer assistance as you arrive. This contributes to the “environment of care” in ManilaMed.

SPECIALIZED CENTERS

IN response to patients’ various needs, several new centers have been opened, including the Child Development Center, the Fertility Unit of the Center for Women’s Health, PEME Phil Center for Seafarers, and the Bone, Muscle and Joint Center—all firsts in Metro Manila. The Centre for Comprehensive Care also offers a unique service: a comprehensive care in the home setting after hospitalization or surgery. In the pipeline are the Brain Center, Lithotripsy (Stone) Center, and the Cancer Center in response to clamor from clients.

A Cardiac Catheterization Laboratory includes a cardiovascular-surgical suite and coronary care units; complementing the Heart Station and the Cardiac rehabilitation Center.

LEVELED-UP FACILITIES AND EQUIPMENTS

THE facilities have also been updated in: 2D echo, Doppler Cardiac rehab, Cath lab, MRI, minimally invassive surgery, and IMU. The Surgical Suites have been renovated and now include an endo suite for minimally invasive surgery. The Radiology and Imaging Department, telemetry unit, isolation room with negative pressure, COC, ACC, endoscopy, room dental OR, chemotherapy unit, and industrial clinic have all been renovated.

IMPROVED SKILLS AND TALENTS

IN terms of professionalizing the hospital’s roster, a deputy medical director for Professional Services is now on staff to enhance professionalism of training projects. In addition, a deputy medical director for Ancillary Ser-

vices helps to improve processes and delivery of care at different patient-service units. ManilaMed President Ronaldo de los Santos confidently states that because of all these developments, “more and more doctors want to practice [their profession] here.” The nurses, tectnicians and administrative staff have also been trained under the ManilaMed Academy for continued learning. All the rooms, suites and wards have been modernized. The renovations and upgrades in the hospital were made to contribute to a pleasant patient experience. “There is an excitement and hope for the hospital to grow and be more competitive,” Emma Gaspar-Trinidad, medical directorinternist cardiologist says of the staff. “As for our patients, they are happy in the changes. [We have observed] a significant number of them returning.” “Our customer complaints have turned into compliments!” says Dr. Carmen Isabel Dinglasan, vice president for Operations.

AND THE INNOVATIONS CONTINUE…

SOON, there will be a linear acceleration for Cancer available. Patients and their loved ones can also look forward to a complete CV care package and more medical packages for cost-efficiency. All of these to continually guarantee that ManilaMed gives “only the best, to make you feel better.”

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www.businessmirror.com.ph | Monday, August 15, 2016 A9

SSIONATE HEALTH CARE ties, to private rooms and, then, semi-private rooms. The lowest level of beds are on open patient wards. All beds, even on wards, have a toilet and with a shower. In addition, the hospital has a Neonatal Unit. The Medical Center Manila has a variety of services. These include (for in-patients and out-patients) an emergency department, a surgical complex, an imaging department, a cardiovascular laboratory and a breast-care center. Other services are mainly catered tothe out-patients. These include rehabilitative medicine, family medicine, dentistry services, and obstetric and gynecology services. The hospital has also a midwife service. MGHI seeks to create a nationwide network of hospitals, organized to provide comprehensive, excellent and compassionate health care. MGHI values the vital role of doctors in the provision of care. It recognizes that an optimal clinical outcome and a favorable patient experience are made possible by the coordinated efforts of all the hospital personnel, as well as the cooperation of the patient in the delivery of care. As part of its thrusts, MGHI

focuses on improving and upgrading hospital facilities, enhancing operating efficiency, delivering quality service and organizational culture-building. MGHI supports the hospitals in its network to keep up with the evolving demands of health care by, among others: pursuing operational synergies, promoting rational patient care, improving accessibility with the use of appropriate technology and tracking developments on external factors impacting on the hospital sector. The end result is an organization that is better equipped to provide efficient and affordable medical care, notable for its exceptional level of commitment to patient care and community needs.

Why choose ManilaMed?

WHAT quality sets ManilaMed apart from other medical institutions? The hospital’s core value said it all: It values the good in every patient before anything else. This is why the ManilaMed strives hard to equip itself with only state-of-the-art medical equipments and with the country’s top healing professionals, still with compassionate health care at its

very core. For every person who walks through its doors, it promises nothing but its very best—all in the interest of making patients feel better. In 2015 ManilaMed received Gold for Asian Hospital Management Awards on Marketing, Press Release and Online Presence category. The Asian Hospital Management Awards recognizes and honors hospitals in Asia that implement best hospital practices. Now in its 15 year, it is the accepted hospital-management awards program for the Asia-Pacific region. Awards are given to hospitals in the region that, in the opinion of the judges and advisers, have implemented or enhanced outstanding and innovative projects, programs and best practices at the prescribed time period. The event is part of the yearly conference of Hospital Management Asia. The 2016 edition, covering pressing issues for hospital managers, such as patient safety, management and administration, customer service and patient engagement and quality improvement, among others, will be held on September 7 and 8 at Sheraton Hotel, Ho Chi Minh City, Vietnam.

BETTER CARE FOR BONES Holistic orthopedic care now available at the Bone, Muscle and Joint Center of the ManilaMed

OUR BONE, Muscle and Joint Center Doctors: Dr. Anne Kathleen Ganal-Antonio, Dr. Luisito Maano, Dr. Geraldo Herrera, Dr. Chris Canto and Dr. Marc Limson.

HEN Rafael Zosa was 16 years old, he suffered from tuberculosis of the bone. After taking medication, he had recovered.

Today, Zosa, now 69 years old, walks confidently, with head held high. But that was not the case at the end of 2015. He was almost immobilized by the pain from severe osteoarthritis. His doctor, Geraldo Herrera of the ManilaMed, relays how, when he first saw Zosa, the patient had to be moved around in a wheelchair. “He was suffering from severe osteoarthritis.” In fact, for the past two years, Zosa says the pain was almost unbearable and he had gotten by with the help of painkillers. After checking Zosa’s x-ray and an initial examination, Dr. Herrera advised a total hip replacement. After telling on the expected expenses, he replied: “I’ll get back to you when I have enough money.” Understandably, Zosa, who still works as an account manager for a travel agency in Malate, Manila, had to go consult with his wife and son. He also asked for a second and third opinion from other doctors. After crunching the numbers, they have determined that

the family could save for the procedure. After three months, Zosa sent word to his doctor that he was ready for the operation. Prior to the operation, Dr. Herrera explained to Zosa what the operation would involve—a replacement of his right hip, joint ball and socket with an insertion made of metal and plastic. Dr. Herrera also gave him a pamphlet of do’s and don’ts related to the procedure. In mid-January Zosa was confined at the ManilaMed for five days, including post-operation physical-therapy sessions. The relief was almost immediate. “After three weeks, I was going up the stairs already,” he says. Dr. Herrera, who has been seeing his patient for regular checkups every three weeks, is very happy with the continued improvement. “I can now take short walks. For longer walks, I just use a cane,” Zosa says. Of course, as he had been warned, he needs to be mindful on how he sits and sleeps. But all the little things are negligible, compared to the ease and bigger range of movement he

is experiencing now. “I feel much better and relaxed; I can stand up straight, unlike before.” The Bone, Muscle, and Joint Center at the ManilaMed will help patients, like Zosa, throughout the process of similar operations by fully orienting them on what to expect before surgery and including sessions of physical therapy after the procedure. 10 orthopedic surgeons, including Dr. Herrera, will explain the risks and benefits of surgeries, as well as expected expenses, to the patients in terms they can truly understand. The services that will be offered include the following: n Fracture care and casting; n Sports injury-prevention counseling and management; n ACL reconstruction; n Nonsurgical and surgical treatment of osteoarthritis; n Total joint (hip and knee) replacement; n Arthroscopic surgery; n Shoulder surgery; n Orthopedic injection care; n Scoliosis and back treatment; n Pediatric and bone deformity management; and n Bone-tumor management; Call the Bone, Muscle, and Joint Center at the ManilaMed at (02) 523-8131 local 2638 to book an appointment.

Congratulations to

on its 49th Anniversary !!!

Tourism&Entertainment BusinessMirror

A10 Monday, August 15, 2016

Editor: Carla Mortel-Baricaua

It’s more fun to dive again in the Philippines

‘T

By Bernard L. Supetran

Photos from the DOT Market Development Group

he Philippines have the most species in the least space of anywhere in the planet. Out of the Earth’s 500 coral species, more than 400 are here.” Whaleshark at Sogod Bay Sogod Bay Scuba Resort

Thresher shark of Malapascua Bo Mancao

Marine biodiversity at Sarangani Bay Gutsy Tuason

Sea turtle at Apo Island Bo Mancao

Dive Resort Travel 2015 participants with DOT Undersecretary Benito C. Bengzon, Jr. (Eleventh from left, standing)

So boasts the Department of Tourism’s (DOT) “It’s More Fun in the Philippines” TV ad. So when Dive Resort Travel (DRT), Asia’s largest diving and resort expo, set its foot in Manila for the first time last year, the international diving community was blown away by the country’s lush underwater world. Being at the center of the world’s Coral Triangle, which is host to rich marine biodiversity, with 7,500 charming islands and an infinite coastline, the whole archipelago is a virtual dive spot. The country’s marine wonder takes global spotlight once more as the DRT Show returns in a threeday power-packed exposition fromSeptember 9 to 11 at the Megatrade Hall in SM Megamall. Organized by the Hong Kong and Shanghai-based LX Development Group (LXDG) and supported by the DOT, the event will gather the world’s dive industry stakeholders, which include some 2,000 dive centers, tourism boards, dive tour operators, equipment suppliers and marine conservationists. The core event is the Philippine Dive Travel Exchange (Dive Travex) where foreign buyers of dive-tours and services will meet local divetour sellers in business-to-business (B2B) meetings. This year’s Travex is expected to be stronger with the presence of the biggest international dive operators from major source markets, such as the United States, China, Korea, Japan, Taiwan and Australia. To date, 67 buyers have registered and confirmed their participation, the most notable of which are Caradonna and Ultimate Dive Travel from the US, and Dive Ad-

ventures and Allways Dive Expeditions from Australia. New markets, such as India, the Middle East, Italy and Spain, will also be looking into the vibrant local dive market. An added component is the “Know Your Market Seminars,” led by international buyers, to introduce local sellers of dive products and services to appropriate markets. Activities include seminars on dive tourism, dive safety training, exhibits of top dive sites, and pep talks and competition on underwater photography featuring the world’s top diver-photographers. Meanwhile, lectures on marine biodiversity and conservation from the Marine Wildlife Watch of the Philippines and Ocean Quest will highlight the need to conserve and enrich the marine ecosystem. Adding glitter to the event are Emmy Award-winning underwater IMAX film producers Howard and Michele Hall, French shark conservation specialist Steven Surina and prized Filipino underwater photographer Scott Gutsy Tuason of Squires Bingham. Tourism authorities recognize scuba diving as a high-value activity that can help spur the economy in the countryside, especially the communities which are host to dive spots. This adventure watersport also brings attention to the need to preserve the marine and coastal ecosystem for sustainable development and tourism. Foreign buyers will also be taken to a postevent dive tour to some of the country’s top marine havens, such as Coron in Palawan, Malapascua and Moalboal in Cebu. Ne-

DRT buyers gear up to dive in Bohol

Sardine Run at Moalboal, Cebu Jerome Kim

gros Oriental DRT Show is also supported by the Tourism Promotions Board, the Tourism Infrastructure

and Enterprise Zone Authority, and the Philippine Commission on Sports Scuba Diving.

Bohol underwater world David Hinkel

Lima Park Hotel Receives 4-Star Rating from D.O.T. PHL, Thailand spur

atangas shines brighter as a tourism, business and leisure hub, after Lima Park Hotel (LPH) earns fourstar rating from the Department of Tourism (DOT), affirming its reputation as a premier business and leisure establishment. The citation was given during the Recognition and Awarding of Certificates and Plaques for Star Rating Hotel ceremony held at the DOT 4A office in Calamba, Laguna. The plaque was awarded by Rebecca Villanueva-Labit, regional director of the DOT 4A, and the certificate handed over by Marites T. Castro, head of Standards and Accreditation of the DOT. LPH is the only four-star hotel in Batangas and one of two in Region 4A to receive the coveted award. Labit commends LPH for its effort to exceed expectations. “There were very few establishments which was able to comply with the standards that were set forth by the Department of Tourism when we started the program for the star rating. Today is a truly proud moment for us because we are awarding your seal of excellence as a four star-rated hotel. We congratulate Lima Park Hotel for continuously pursuing excellence in its facilities and service,” she says. Edilberto P. Evangelista Jr., resident manager of LPH, says, “We thank the Department of Tourism for its vote of trust and

Marites T. Castro (left), head of Standards and Accreditation of the Department of Tourism (DOT), shows the four-star certificate, while Edilberto P. Evangelista Jr., (from left) resident manager of LPH, and Rebecca Villanueva-Labit, regional director of DOT 4A, hold the four-star plaque. Also present in the event is Rosalind M. Landicho, director for Marketing and Corporate Communications of LPH. The awarding was held at the DOT 4A office in Calamba, Laguna. confidence. We also thank our guests whose feedback helped shape our vision for pursuing excellence in our standards. This fourstar rating and accreditation come with greater challenges and bigger responsibilities. We are both humbled and inspired by this latest recognition, and we commit to provide every guest the best experience

for their every stay at Lima Park Hotel.” The assessment was done by regional tourism officers and third-party professionals who are involved in the hospitality industry.

Lima Park Hotel facilities

LPH, situated in the heart of Malvar, Batangas, has gone through significant changes

through the years. From its initial offering of 60 rooms, LPH now provides 136 rooms, ranging from Superior, De Luxe, Premiere Luxe, Suite, Executive Suite and Governor’s Suite. LPH’s amenities are a cut above the rest. The hotel houses the biggest grand ballroom that can accommodate 1,000 individuals; a 250-capacity premier ballroom; an all-glass 150-capacity function room by the garden (Occasions Garden House); and nine events spaces for meetings, conferences, conventions, corporate events and personal milestones, like weddings, birthdays and debut, among others. LPH, a culinary destination, offers a curated menu in its restaurants, Asian Flavours and La Terrazza Bar, which serves pizza, pasta, bar chow and cocktails. Guests can also enjoy top-notch facilities, such as a gym, a horizon swimming pool, a playground and a teambuilding park.

TripAdvisor Certificate of Excellence

TripAdvisor recently awarded LPH with the Certificate of Excellence 2016. LPH first received this recognition in 2015. The Certificate of Excellence is TripAdvisor’s way of recognizing accommodations, restaurants and attractions that consistently receive great traveler reviews on their web site.

‘exchange tourism’

he Philippines has embarked on an “exchange tourism” agreement with Thailand in what is expected to encourage more Thai tourists to visit the country. This developed during the four-day visit of Tourism Secretary Wanda Corazon T. Teo to Bangkok last week on the invitation of the Tourism Authority of Thailand (TAT), as part of the celebration of the 84th birthday of Her Majesty Queen Sirikit. Teo met with Kobkarn Wattanavrangkul, the Thai minister of Tourism and Sports, who offered collaboration between the two countries in farm tourism, youth development, and women and indigenous community projects. During the working visit to “The Land of Smiles,” the Department of Tourism chief also met with the Thai Travel Agents Association (TTAA) at Tawana Ramada Hotel. As a result, TTAA President Suparerk Soorangura announced his group will come to the Philippines in September for the Philippine Travel Exposition (Phitex) and tour the cities of Cebu, Davao and Cagayan de Oro. Soorangura, who claims he heard

about the Philippines only three years ago, said they wanted to see Mayon Volcano, go deep-diving, shopping and get a taste of authentic Filipino cuisine. Teo, who was a top travel executive and tourism advocate herself, expressed great appreciation, saying she can learn a thing or two from Thai authorities, who catapulted Thailand’s tourism to the top, besting most, Southeast Asian countries. She was treated to a grand reception by Royal Thai Navy and tours to the Royal Grand Palace, the Emerald Buddha Temple, the Queen Sirikit Textile Museum, the Bang Pa-in Summer Palace, Bang Sai Royal Folks Arts and Crafts Center, and the AsiaTique River Front. The two countries, in fact, share so much in common that Teo felt somewhat at home during her four-day working visit to Bangkok last week. “I realized that one would find their sceneries somewhat familiar to those that we have here, but what struck me is the fact that we have a lot more to offer,” Teo said. The DOT chief was invited to promote the Philippines in the Thai International Travel Fair in February next year.

Tourism&Entertainment BusinessMirror

Editor: Carla Mortel-Baricaua

Monday, August 15, 2016 A11

El Nido On the Cusp of Change

Story & photos by Joshua Berida

’ve been to El Nido three times and, in those trips, I’ve seen it change from the first time I set foot on one of its islands back in 2013. However, there is still something about the island that is both old and new with each visit. Old places, new experiences

The unfinished structures were now either complete or almost completed; the road to town is crawling slowly toward completion; and there is now a new town just outside the old one to accommodate the increasing number of tourists. Just walking outside felt different, the narrow streets are more crowded with vendors and restaurants, and houses are turned to guesthouses. There are now more automated teller machines in town compared to none a few years ago. Electricity has been running for 24 hours for several months rather than having rotational brownouts in the morning. These little things are something we take for granted, but on this island, these are huge leaps toward development. I couldn’t imagine traveling here for more than the allotted six hours, which was the case several years ago. Despite the transformation El Nido is experiencing, it still manages to keep some of its idyllic charm and tropical island feel.

Island-hopping

I was looking for something new to do as I’ve done most of the islandhopping tours, except one. However, the tour I wanted to do wasn’t popular, since most foreign and local tourists do the island-hopping trips A, B and C. It took a while and some bargaining before a boatman agreed to do tour D the following day. I was expecting a bigger boat with a seat for a passenger, but when I arrived at the dock, I saw only a small fishing boat with only one seat for the boatman and an overhead cover good enough for just one person. I had to maneuver and maximize the space given to me, to avoid blocking

the line of vision of the boatman, sit without falling off and get ample shade from the sun. Our little boat moved through the sea roughly, I felt every jerk and wave, big or small, as the boatman maneuvered to enter an island. I’ve been to Cadlao Lagoon before—our first stop but at that time, I traveled with a friend and the lagoon had other visitors. This was the first time I was there as the only tourist, the only other visitor was a local who was cleaning and maintaining his boat. Since we were only three people in the lagoon, the slightest sounds we made were amplified, made vivid and detailed. The same goes with the humming of the motor just before it stopped, and the splashing of footsteps on the glass-like waters. I could hear the sounds of the island clearly—the birds chirping, the rustling of the trees and the ripple of the waves. As the emerald waters glistened under the heat of the sun, I had my own piece of paradise even just for a moment. I was expecting more people in the next stops because they were all beaches. However, once we docked at Paradise Beach, I was again the only tourist. Don’t get me wrong. I could get used to having the fine, white sand, the swaying coconut trees and the clear waters all for myself. After leaving Bukal Beach, it began to rain, and it wasn’t just a drizzle, it was a downpour. The rain drenched our little boat, and the fog that accompanied the heavy rains limited our vision to just a few meters. We were fortunate that Natnat Beach was close by. We docked until the rain stopped and the weather improved. From a gloomy patch of beach, the small island turned into a

Going early enough to Cadlao Lagoon allows you to swim in its emerald waters without other tourists.

Las Cabanas may not offer a white, powdery sand beach, but it is a great place to unwind in while watching the sunset.

Paradise is a cliché you often hear about El Nido’s islands. Use the word as much as you want, because it is true nonetheless.

Las Cabanas provides one of the best sunsets I’ve seen in any of the provinces I’ve visited in the Philippines.

tropical haven, with white sand and azure waters. I was ready to end the islands tour after the skies turned blue again. I’ve heard many good things

about the sunset in Las Cabanas, a beach near the town. I planned to watch the sunset during my previous visits, but somehow, I never got the chance to. I saw the beach be-

fore, but have never seen the sunset. I rented a tricycle to take me there, expecting it the same scene like the first time I visited. However, once I got to Las Cabanas, I saw restaurants and bars along the shoreline, pumping loud music, with tables and lounge chairs. It was no longer the pristine beach I went to. I didn’t let the changes bother me and just waited for the sunset. The sky transformed from a clear blue to a warm orange and then to a fiery red as the day ended. I knew that the El Nido I once knew was on the cusp of becoming something else.

was ours. Maybe it was the place where the waters were cerulean, with no boats breaking its glass-like surface. Maybe it was where we partied all night with friends or went on an island-hopping tour with a loved one. Maybe the island is better developed and accessible, or maybe it’s not. It’s the destination we want to call our own, but it really isn’t. Who are we to judge other people’s experiences? We can’t have the island because it stands alone, we can’t own it, it doesn’t change— we do.

It’s the destination

Travel Guide

I was afraid El Nido would lose its soul because of its changes. These are thoughts of a selfish traveler who wants to own a piece of something as a bragging right. Something untainted by mass tourism, something precious that no one else could have. Maybe the El Nido we knew was that place where the electricity went out in the morning, or that place where the bone, white-sand beach

El Nido is changing fast as more and more foreign and local tourists are traveling to this northern part of Palawan. There are many vans and buses that travel to the town from Puerto Princesa so you have several options. Some airlines have a direct flight from Manila to El Nido. The tours cost around P1,200 to P1,400, excluding snorkeling gear, and the P200 environmental fee. It is better to ask if the price quoted includes the latter two.

AWH: advancing PHL hospitality and tourism through cutting-edge curricula

n recent years, there has been an upsurge in the interest of Filipinos in our hospitality and tourism fronts. This is evident in the rise of the number of established local schools and learning institutions providing formal education for the said disciplines. To date, we have produced topcaliber professionals who have helped stamp our distinct brand of hospitality in hotel and leisure establishments here and abroad—thanks primarily to the curricula in place, and, of course, the hospitality educators who ensure the effective transfer of knowledge to our experts, keeping them on a par with their counterparts overseas. To make them even stand out in the global arena and help expand their horizons in the Asean market, Asia World Hospitality (AWH) Managing Director Margarita Borja feels the time is ripe for a review of the courses being offered in our schools.

Ready for the world

“The Asean Integration and even the institutionalization of K to 12 are certainly great steps forward for our industry, but there are also the challenges,” Borja said in an exclusive interview with BusinessMirror. “Leveling off with our Asian neighbors and the world, what should also be done is to upgrade the current curricula, as well as to continue the professional development of the teachers, utilizing the top-quality programs available in the market. In fact, the Department of Tourism has been looking into fostering the growth of the Philippine hospitality and tourism industry, where our academic programs and industry needs are aligned with.” One such endeavor is the Philippines Qualification Framework (PQF), which guarantees our hospitality and tourism

Asia World Hospitality organization hosts the first public workshop for the Certified Guest Service Professionals for Academics. pros’ competitiveness “in an enlarged economic community, where humanresource movement across countries is ruled by knowledge, skills and values required in the job market.” The PQF, she furthered, compels the need for globally competitive graduates. To realize this, AWH had forged a partnership with the American Hotel and Lodging Educational Institute (AHLEI), the latter focusing on education and training, hotels and resorts management, and a range of hospitality services, like mystery shopper, human systems and consulting, among others. “We also constantly seek for new properties to manage, bringing in our expertise in quality assessment, talent development training and monitoring results,” Borja explained.

Partner for education

The AWH managing director added that her organization and AHLEI could help local hospitality students gain the necessary knowledge to compete in the overseas market: “Academic institutions around the world turn to AHLEI for industry-driven hospitality management

content, which is backed by globally recognized and respected course credentials. Its clientele include colleges and universities in the United States and Canada, as well as Global Academic Partner schools in nearly 50 countries. No other educational source offers this tangible industry connection: a stamp of approval from a respected hospitality association that represents more than 10,000 lodging properties worldwide. These academic certificates are also backed by 60 years of AHLEI’s experience in providing materials to educate hospitality students and professionals around the world.” AHLEI programs and courses, Borja claimed, are recognized by the hospitality industry worldwide, with graduates often becoming the first choice for national and international hospitality groups: “Using hospitalitymanagement textbooks and courses from AHLEI, students gain valuable knowledge that reflects the most current practices and trends in today’s hospitality industry. They also have the opportunity to receive course completion certificates from AHLEI. To date, 12 of our courses have been evaluated

Leading the local hospitality and tourism education, Asia World Hospitality produces globally competitive graduates through its academic programs. and recommended college credit by The American Council on Education’s College Credit Recommendation Service. This service enables adult learners to present a nationally recognized transcript to the college or university of their choice for the award of academic credit.”

First master trainors

A major goal of AWH and AHLEI is to hone the pioneering batch of Philippine master trainors. To achieve such, the AWH has been gearing up to heighten the development and upgrading of our country’s hospitality-education industry through its first-ever series of Certified Hospitality Educator (CHE) workshops, the first of which were recently held between May and June. Developed by AHLEI, Borja said the CHE designation has become one of the most recognized credentials in hospitality and tourism education, as it is the only professional development opportunity

designed for postsecondary hospitality educators around the world. So far, three professors from the workshop were chosen to participate in the master trainor program and are earmarked to be authorized within the next few months. Borja shared that AWH will be very active in the coming days. On July 28 and 29, her organization played host to the first public workshop for the Certified Guest Service Professionals for Academics, and from August 24 to 26, it will be participating in the Tourism and Security Conference 2016, which will introduce the Certified Lodging Security Officer workshop to the academic industry as a solution to address the gap between the quality of service of professionals from academe. According to her, AWH also has a two-year Hospitality and Tourism Management Program suitable for K to 12, and upcoming public workshops for onthe-job training students and hospitality

professionals, such as the Certified Guest Service Professionals and Skills, Tasks and Training Results (START) program. Through AWH and AHLEI, prospective students may gain an international diploma, which could serve as their key in obtaining a bachelor’s degree in the US. In addition, AWH also conducts training for hospitality professionals, offering certifications from the general manager level down to the front-line employees. Borja is optimistic that AWH can offer a global solution to the hospitality education industry through the distribution of the AHLEI programs. With the largest range of educational materials, a good number of hospitality schools in the Philippines have adopted the AHLEI programs and have become GAP schools. With AWH at the forefront of local hospitality and tourism education, expect world-class Filipinos to be at the forefront of the industry in every corner of the globe. Mike Policarpio

Green Monday BusinessMirror

BusinessMirror

A12 Monday, August 15, 2016

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

Tubbataha Reefs featured in Monaco’s Oceanographic Museum 360° video

he Oceanographic Museum of Monaco is currently featuring the Tubbataha Reefs Natural Park in 360° immersive experience. According to the Department of Foreign Affairs (DFA), the footage used for the virtual-reality experience was taken during the State Visit of Prince Albert II of Monaco to the Philippines in April. The initiative led by Prince Albert II is meant to raise awareness on the issue of sea turtles. “The 360˚ video exhibition, viewed through a mobile phone attached to a virtual-reality headgear and a headphone, is available

Typhoon survivor Jessica Bibera and her baby Niño Cedric partake of free meals being distributed by a charitable organization at the “tent city” for Supertyphoon Yolanda (international code name Haiyan) survivors on November 7, 2014, in Tacloban City, Leyte. Yolanda ravaged Leyte and other provinces in central Philippines on November 8, 2013, killed thousands of people in Leyte alone and left a wide swath of destruction. AP/Bullit Marquez

Climate victims: Every second, 1 person displaced by disaster

OME—Climate change and related extreme weather events have devastated the lives and livelihoods of tens of millions of most vulnerable people worldwide— by far exceeding the total of all the unfortunate and unjustifiable victims of all terrorist attacks combined. However, the unstoppable climate crisis receives just a tiny fraction of mainstream media attention. See these dramatic facts. “Every second, one person is displaced by disaster,” the Oslobased Norwegian Refugee Council (NRC) reports. “In 2015 only, more than 19.2 million people fled disasters in 113 countries. Disasters displace three to 10 times more people than conflict and war worldwide.” As climate change continues, it will likely lead to more frequent and severe natural hazards; the impact will be heavy, warns this independent humanitarian organization providing aid and assistance to people forced to flee. “On average, 26 million people are displaced by disasters, such as floods and storms every year. That’s one person forced to flee every second.” “Climate change is our generation’s greatest challenge,” says Jan Egeland, secretary-general of the NRC, which counts with over 5,000 humanitarian workers across more than 25 countries. The climate refugees and migrants add to the ongoing hum a n it a r i a n emergenc y. “ Not since World War II have more people needed our help,” warned the secretary general of the NRC

26 million The average number of people displaced by disasters, such as floods and storms every year, or one person forced to flee every second

Jan Egeland, who held the post of UN undersecretary general for Humanitarian Affairs and Emergency Relief (2003 to 2006). Egeland—who was one of the most active, outspoken participants in the World Humanitarian Summit (WHS) in Istanbul in May—also said that the humanitarian sector is failing to protect civilians. “I hope that world leaders ask themselves if they can at least stop giving arms, giving money to those armed groups that are systematically violating the humanitarian law, and bombing hospitals and schools, abusing women and children,” he said to Inter Press Service (IPS) during the WHS. For its pa r t, t he Inter n ational Organization for Migration (IOM) forecasts 200 million environmental migrants by 2050, moving either within their countries or across borders, on a permanent or temporary basis.

Many of them would be coastal population. On this, the United Nations Environment Programme warns that coastal populations are at particular risk, as a global rise in temperature of between 1.1 and 3.1 degrees Celsuis would increase the mean sea level by 0.36 to 0.73 meters by 2100, adversely impacting low-lying areas with submergence, flooding, erosion and saltwater intrusion. In a recent interview with IPS Nairobi correspondent Manipadma Jena, the director general of the IOM, William Lacy Swing, said that coastal migration is starting already but it is very hard to be exact as there is no good data to be able to forecast accurately. “We do not know. But it is clearly going to figure heavily in the future. And it’s going to happen both in the low-lying islands in the Pacific and the Caribbean, and in those countries where people build houses very close to the shore and have floods every year as in Bangladesh.” “It is quite clear that we will have more and more conflicts over shortages of food and water that are going to be exacerbated by climate change,” Lacy Swing warned. Political crises and natural disasters are the other major drivers of migration today, he told IPS. Lacy Swing confirmed the fact that climate victims now add to record 60 million people who are fleeing war and persecution. “We have never had so many complex and protracted humanitarian emergencies now happening simultaneously from West Africa all the way to Asia, with very few spots in between which do not have some issue. We have today 40 million forcibly displaced people and 20 million refugees, the greatest number of uprooted people since the Second World War.” On July 25, the United Nations

General Assembly unanimously adopted a resolution approving an agreement to make the IOM part of the UN system. Founded in the wake of the World War II to resettle refugees from Europe, OIM will celebrate its 65th anniversary in December this year. “Migration is at the heart of the new global political landscape and its social and economic dynamics. At a time of growing levels of migration within and across borders, a closer legal and working relationship between the UN and IOM is needed more than ever,” said the UN Secretary-General Ban Kimoon in a statement welcoming the Assembly’s decision. IOM, which assisted an estimated 20 million migrants in 2015, is an intergovernmental organization with more than 9,500 staff and 450 offices worldwide. “We are living in a time of much tragedy and uncertainty. This agreement shows Member States’ commitment to more humane and orderly migration that benefits all, where we celebrate the human beings behind the numbers,” Lacy Swing said. Through the agreement, the UN recognizes IOM as an “indispensable actor in the field of human mobility.” IOM added that this includes protection of migrants and displaced people in migration-affected communities, as well as in areas of refugee resettlement and voluntary returns, and incorporates migration in country development plans. The agreement paves the way for the agreement to be signed by Ban and Lacy Swing at the UN Summit for refugees and migrants on September 19, which will bring together UN member states to address large movements of refugees and migrants for more humane and coordinated approach. IPS

WWF, HSBC Rain Campaign prepares households for monsoon season

he rainy season is finally here! This time of the year, the Rain Campaign of the World Wide Fund for Nature (WWF) and HSBC is at its most significant. The Rain Campaign raises awareness on the importance of freshwater supplies, while making people more conscious of their water footprint. The campaign promotes the use of rainwater collectors as an alternative source of water for households. This campaign that started in 2012 has now reached seven schools in Pasig and Donsol, educated more than 1400 students—and helped more than 100 families. HSBC volunteer employees have helped WWF in teaching students to be more discriminating in using water. Volunteers took part in the collection of water samples to test water quality, like the level of alkalinity and

the presence of bacteria in both tap water and collected rainwater. H S B C vo l u n te e r s a l s o m e n to re d students about simple household solutions to have safe drinking water, while joining students in painting drums that can serve as rainwater collectors. Selected teachers from several schools underwent training on climate change, water conservation and environmental education. The campaign also brought about household challenges, which aim to involve parents in creating rainwater collectors for families, while assessing their household water-use habits. As the country braces for the monsoon season, the knowledge and awareness that the Rain Campaign will give to students, teachers and families will be more useful than ever.

World Wide Fund for Nature and HSBC teachers and their students pose with a freshly painted rainwater collector. Alexa Cancio/WWF

in French and English. The video features a mix of footage of Prince Albert’s expedition, including the boat ride to the site, the Prince’s interaction with Filipino locals, underwater footage of marine life, as well as the tagging of sea turtles for the Oceanographic Institute’s scientific research,” the DFA said. Representatives from the Philippine Embassy in France and the Department of Tourism office in Frankfurt had the opportunity to visit the exhibition on August 5. The exhibit will run until August 31. For more information, visit the museum’s web site http://www. oceano.mc/en. Recto Mercene

Taal Volcano ecotourism receives boost from Globe-Pusod project

Boat ride to Taal Volcano Island Richard Tabigue/Globe volunteer

aal’s ecotourism has received a big boost from the collaboration between Globe Telecom and the nonprofit environmental organization Pusod Inc., which are both working to empower communities around the lake through environment education and sustainable enterprises. One of the key programs implemented by Globe and Pusod to address the area’s environmental concerns is the promotion of ecotourism through the Taal Lake Conservation Center (TLCC), which gives a low-impact alternative to commercial tourism and promotes conservation of the ecosystem. As a result of the partnership, the earnings of TLCC jumped by 1,400 percent. From revenues of only P40,000 during its first year, TLCC registered an annual revenue of P600,000 by end 2015. The facility was established by Pusod, in partnership with the local government of Mataasnakahoy and Taal Volcano Protected Landscape (TVPL) Protected Area Management Board in 2011. TLCC serves as a knowledge hub for researches conducted in TVPL and operates the ecotourism program in partnership with Globe Citizenship. The program offers community walking tours, heritage tours, knowledge tours to the Calawit side of the volcano island and other low-impact water sports—kayaking, oz goose sailing and standup paddling. “We continue to find ways of cooperation to protect the environment and support sustainable livelihood and conservation, thereby, giving birth to our partnership with Pusod, which shares the same environmental values as Globe. Through our joint efforts, we are able to create positive impact across the value chain—from the community-based tour guides, boat operators, horse guides, local caterer and community volunteers,” said Fernando Esguerra, director of Globe Citizenship. “Lakes take a long time to respond to conservation measures. Those that are still connected deeply with the livelihood that the lake provides are less and less reliant on it. It prompted

us to take action because a lot of people really depend on the lake for livelihood. The only way we can really save the lake is if they take pride in it,” said lawyer Ipat Luna, executive trustee and founding member of Pusod Inc. Ann Hazel Javier, executive director of Pusod Inc. added: “ Together with Globe, we work with communities and tell them more about the ecosystem where they are and to eventually help them to protect it and create enter prises around them. We sta r ted w it h t he ecotour ism program. We have built capacities for the people in the volcano island whose main motivation is really to help conser ve and protect the ecosystem.” TLCC tours provide the least economic leakage as possible, ensuring that the local community benefit as tour and boat guides or food caterers. The tours include a full briefing on the lake region and eruption history of the volcano, a boat ride from Kinalaglagan, Mataasnakahoy, to Calawit, Balete, on Volcano Island and back, a horse ride or trek with a local guide, insurance, snacks and lunch of Batangas fusion cuisine and local refreshments, user fees and a conservation contribution. The tours also encourage visitors to engage in lake conservation. Besides ecotourism initiatives, Globe was able to establish a monitoring system involving 5,000 fishermen of the Kilusan ng Maliliit na Mangingisda ng Lawa ng Taal through the TxtConnect facility, a Web-based platform that enables them to broadcast messages critical to the implementation of the TVPL Management Plan. Globe also paved the way for mobile financial services to reach almost all fisherman communities across the 13 municipalities and three cities in Batangas and Cavite under the TVPL by distributing 5,000 SIM cards with discounted call and SMS rates. At the same time, it improved the productivity of 276 households in Barangay Calawit, Balete, Batangas, with the provision of solar lamps through the Stiftung Solarenergie collaboration.

Science Monday

Monday, August 15, 2016 A13

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

Mysterious placenta checked for Zika, other health concerns

Research and Development Engineer Avinash Eranki examines a donated placenta as researchers are working to create a 3D bioprinted version to study preeclampsia at Children’s National Medical Center in Washington on June 15. Researchers are looking into how problems with the placenta lead to health threats from preeclampsia to Zika. AP/Andrew Harnik

ASHINGTON—Scientists carefully probe into a placenta donated after birth, bluish umbilical cord still attached. This is the body’s most mysterious organ, and inside lie clues about how it gives life—and how it can go awry, leading to stillbirth, preterm birth, even infections like the Zika virus, that somehow sneak past its protective barrier. In labs around the country, major research is under way to finally understand and monitor this floppy, bloody tissue that’s often dismissed as the “afterbirth,” the organ that lives about nine months and then gets thrown away. The stakes are high. The placenta is the ultimate multitasker: It nourishes a fetus, acts as its lungs, kidneys and liver, provides immune defense, and even produces key hormones. “We take it for granted,” said Dr. Catherine Spong of the National Institutes of Health (NIH), which has spurred a research boom with its $50-million Human Placenta Project. “Yet, there are lifelong implications for both the mother and the baby.” Zika’s shocking birth defects have brought into focus t he desperate need to learn how a healthy placenta does its many jobs, and find treatments for when it is undermined. “Tomorrow there may be a new virus,” warned Dr. Yoel Sadovsky of the University of Pittsburgh Medical Center, a leading placenta researcher. “If I were a virus and wanted to attack humans, probably the best time to do it was during pregnancy, where you’re attacking the next generation.” Doctors have few tools today to examine a placenta during pregnancy. And precious as that donated placenta is for research, studying one that already ushered in a birth reveals only so much, like counting the rings in a downed tree to visualize the sapling. What scientists and obstetricians really need is a way to peek at how the placenta forms and changes in the different stages of pregnancy. That could help spot problems early—such as preeclampsia, a blood-pressure complication that can be life-threatening to the mother and the baby. It affects up to 8 percent of pregnancies, but typically isn’t detected until the second trimester, even though it’s thought to stem from abnormal placenta formation. How? In a Washington lab, Eng. Avinash Eranki turns over the donated placenta, examining the side that was attached to the mother. That outer layer is made up of cells called trophoblasts that had to invade the uterine wall and then burrow into maternal arteries, enlarging them to provide blood flow for the fetus. The theory: If those cells get off course and the blood vessels don’t widen enough, the downstream effects of a placenta struggling to support the fetus eventually stress the mother’s own organs. The research team at Children’s National Health System is using a 3D bioprinter to create a unique

$50M The cost of the Human Placenta Project living model of how a human placenta forms, to mimic how trophoblasts create that blood supply. The printer deposits layer after layer of human cells and other substances they need to thrive. “It can actually grow. It’s a dynamic piece of tissue,” said res e a rc he r C he -Y i n g K uo of t he Un ive r s it y of M a r y l a nd and Children’s National, which is funding the work. Once it’s complete, the model could help researchers test ways to detect brewing preeclampsia earlier, and inter vene. Today, the only cure for severe cases is premature deliver y of the baby. At the NIH, researchers are targeting another critical gap: It’s hard to tell how much oxygen is reaching the fetus. Doctors rely on indirect measurements, such as during labor when fetal heart rate can signal problems even if the baby’s fine. Biomedical Eng. Afrouz Anderson of the National Institute of Child Health and Human Development is developing a wireless device, called an oximeter, that uses near-infrared light to measure placental oxygen when held over the mom’s abdomen. Anderson, who is testing the device in a model that mimics blood flowing through a placenta, sees its potential use during preeclampsia, or when the fetus isn’t growing properly. In a study planned for early next year, she’ll team with military doctors to measure what’s normal in healthy pregnant women. “My biggest hope is if the oxygenation status would give a more accurate picture,” so that “we don’t have to go do a C-section, because the baby’s actually happy,” said Dr. Shad Deering, obstetrics chairman at the Uniformed Services University of the Health Sciences. “It’s very exciting to see people focusing on the real-time changes that happen during a pregnancy and how those shape later outcomes,” said Dr. Anna Penn, a neonatologist at Children’s National. She studies hormones the placenta produces that affect brain development, in search of protective therapies for premature infants. “The whole idea is early detection of problems, so that if things are going off in the wrong direction, hopefully, we can get back on track.” But the Zika virus, which can destroy a developing brain when an infected mother passes infection to her unborn child, is proving a tough challenge. Only certain viruses can reach a fetus through the placenta and it’s not clear how Zika does. So far, researchers have found that it seems able to infect some types of placenta cells and not others. AP

Perseid meteor shower In this night photo, a Perseid meteor streaks across the sky during the annual Perseid meteor shower above a roadside silhouette of a Spanish fighting bull, in Reduena, Spain, on Friday. Scientists say this year the Perseid meteor shower will be more intense than normal, predicting up to 200 meteors per hour caused by a trail of debris from a comet orbiting the Sun. AP/Daniel Ochoa de Olza

Scientist: Prop up space education

he Philippines needs to focus on space education, according to Filipino astrophysicist Dr. Rogel Mari Sese, project leader of the National Space Development Program (NSDP) and focal person for the Philippine Space Science Education Program (PSSEP) under the Department of Science and Technology (DOST). An aspiring astronaut since he was 5 years old, Sese shared his knowledge and thoughts on space science during a forum organized by the DOST’s Science Education Institute (SEI), dubbed as TEC Talk: Space Science, which was held recently at the University of the Philippines Diliman-National Institute of Physics (UPD-NIP). Space science has its applications in agriculture and environment, meteorology, disaster risk reduction, national security navigation, communications, and exploration and discovery. However, various challenges have led to the country’s failure to mount a space program. In his talk, titled “Reaching for the Stars: How Do We Start the Journey?” Sese emphasized the need to prop up space education in the Philippines. He cited some of the challenges in mounting a space program

in the country—including lack of public awareness about space science; lack of exposure in the basic educational system; space science not being a conventional choice of study for students; lack of universities offering space-related courses; and lack of financial support for students. “Knowledge of space science gives us a better sense of the world,” said another eminent Filipino physicist Dr. Ian Vega, “and we deserve a science policy that is aware that our greatest resource is our people.” Vega, head of the gravity group of UPD-NIP’s theoretical-physics group, added that knowledge of space science leads to progress. To address the challenges, Sese suggested that plans should be in place to encourage students to pursue science, technology, engineering and mathematics (STEM) careers, push for a greater

Dr. Rogel Mari Sese of the National Space Development Program Photos by Teddy R. Amante/S&T Media Service

integration of space science into the basic-education curriculum, get more universities to offer space-related degree programs, train teachers and educators in the field and develop culturally appropriate educational materials on space science in English and local languages. Strengthening outreach activities to increase public awareness of space science and establishing strong regional collaborations and linkages are also important, Sese said. Currently, Sese and the NSDP team are engaged in talks with both the public and private sectors for the development of space industries, possible investment opportunities and potential collaborations, among others. Meanwhile, the PSSEP has various activities, such as telescope viewing and the National Water Bottle Rocket Competition ,where winners get to compete internationally.

Dr. Ian Vega, gravity group head of UPD-NIP’s theoretical physics group

“Even though we are lagging behind, we are doing what we can,” Sese remarked, “so you guys can benefit from it.” Besides Sese and Vega, TEC Talk was also attended by Dr. Jose Perico Esguerra, professor II and coordinator of UPD-NIP’s theoretical physics group; and Dr. Apollo Arquiza, a DOST Balik Scientist who worked at the International Space Station, studying foods for space habitats. The forum was attended by DOST scholars from UP Diliman, Ateneo de Manila University and Rizal Technological University. Part of the National Science and Technology Week celebration, TEC Talk was a TED Talks type of forum where renowned Filipino scientists shared their e x per iences to ent ice DOS T scholars to work in space science and be part of the country’s efforts for national progress. Espie Angelica A. de Leon/S&T Media Service

Tilapia ice cream, anyone? This CLSU project bagged an intl award

a e r rys Tilapia Ice Cream won the Salon International de L’Agroalimentaire (SIAL) Innovation Gold Award during the SIAL Asean Manila 2016 at the World Trade Center in Pasay City. A project of the Central Luzon State University (CLSU), the Tilapia Ice Cream was selected among 350 exhibitors from 25 countries. Made with tilapia fillet, all-purpose c re a m , c o n d e n s e d a n d f re s h m i l k , chopped walnut and diced cheese, the Tilapia Ice Cream has no fishy smell and aftertaste. The flavor was a result of the study of Assistant Prof. Dana D. Vera Cruz. The recipe was developed from the idea of Dr. Tereso “Terry” A. Abella. The product name, Daerrys, was coined from the combination of the proponents’ nicknames, Dana and Terry. The Tilapia Ice Cream line includes

Original Flavored Tilapia Ice Cream, Tilapia Sansrival, Tilapia Ice Cream Pops and Tilapia Ice Cream Sandwich. As recipient of the Innovation Gold Award 2016, Tilapia Ice Cream will be showcased in the SIAL networks in Paris, Canada, China, Middle East and Indonesia. The event was organized by the Comexposium Group and Manila Foods and Beverages Expo, and is part of the SIAL Network, the world’s largest food and beverages exhibition network. In support of product development using tilapia, the Department of Science and Technology (DOST) funded the National Tilapia Science and Technology Program, which was then monitored by the Inland Aquatic Resources Research Division of the Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development of the DOST. Jobelle Mae L. Zuraek/S&T Media Service

A14 Monday, August 15, 2016 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

It is still all about the PHL economy

resident Duterte promised voters he would hit the ground running upon his election, and that is certainly true. While the emphasis has been on the administration’s war on crime and drugs, there have already been some positive initiatives and movement, such as in transportation. However, questions as to the President’s personal leadership ability and capability on economic matters have come up. President Duterte, while campaigning for the highest office, did not present himself as the “economics president”. By his own admission, economic matters would be handled by his team, which has received favorable reviews from both local business and abroad. The confidence of Filipinos in the economic future of the nation has risen strongly since the beginning of the year. The FT (Financial Times) Confidential Research Economic Sentiment Index for the Philippines rose from 54.2 to 66.9 at the end of the second quarter. The reality is that this “economic sentiment” reflects more of current and immediate past performance, rather than a predictor of the future. If the country’s economic growth in the second quarter—expected by the Bangko Sentral ng Pilipinas (BSP) to come in at 7 percent—underperforms, then sentiment will fall. The BSP reported that the Gross International Reserves (GIR) hit an alltime high in July, which is one measure of money coming into the Philippine economy. But this was not a large increase, and GIR is not the only measure of money flows. Portfolio inflows, or the so-called “hot” money, hit a 17-month high. This has helped keep the Philippine peso stable with a slightly stronger bias. But even with the new foreign money, the local stock market is showing some signs of weakening upside momentum. The BSP, though, has been able to keep its interest-rate policy unchanged on the back of both a stable global rate environment and stable local inflation. But, this also is a month-to-month evaluation. The one clear economic negative is of exports steadily falling with a continuation of 15 months of negative growth. The current data show all major categories of goods exports in trouble, from electronic products contracting 5.1 percent to machinery and transport equipment (-31.6 percent) and woodcraft and furniture (-19.2 percent). As of yet, there are no flashing economic-warning lights, but that can change at any time. The people are willing to give their political leaders great benefit of the doubt and wide flexibility in the formation and implementation of policies. The Duterte administration still must keep a close eye on economic issues and, more important, let the public know that the economy is just as high a priority as everything else. We also need some conversations, if not, speeches on the economy.

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Emergency powers and PPPs. Do they mix? By Alberto Agra

PPP Lead Continued from A1 n Amendment of laws, not the Constitution. The inherent limitation to the power of Congress to enact laws is the same restraint for the legislative grant of emergency powers to the President. The 1987 Constitution cannot be amended or revised through ordinary legislation. The proposed grant of extraordinary powers to the Executive Branch must not be inconsistent with the basic law of the land. Thus, the Supreme Court could not be deprived of its judicial power, the right to due process cannot be abrogated and the local autonomy enjoyed by local government units cannot be revoked. n Enhancement, not abolition of private-sector participation. Another constitutional policy,

which must be respected even under a “state of traffic emergency or crisis,” is the recognition of the “indispensable role of the private sector.” Whether as partner, concessionaire, contractor, supplier, funder, designer or operator, the private sector can, and should, participate in addressing the traffic crisis. The framers of the Constitution foresaw, which I believe is true to this very day, that government cannot address the woes of the country and move toward better quality of life without the private sector. We are all stakeholders. n Traffic is not, not is, an indicator of progress. Some have argued that traffic is a measurement of progress because more people can afford to buy cars. I beg to disagree. Mass transit that is

Every place has detractors By Megan McArdle | Bloomberg View

‘I

am not the only Southern child,” Maggie Young writes, “who fled for more progressive, urban pastures as adulthood approached. Today, I occasionally cross paths with my fellow Bible Belt refugees. In coffeeshops, we swap stories of our dysfunctional families, relatives who plant themselves in church pews, but would never apologize for the physical, mental and emotional abuse they have inflicted on us. We bond over the post-traumatic stress of growing up in a conservative culture rotting away behind its Dixie façade.”

I grew up in one of the urbane, progressive pastures in which writers, like Maggie Young, now gambol: Manhattan’s Upper West Side. My father worked for a Democratic mayor; I attended a church so liberal that I did not realize until I went to college that “Lord of the Dance” was supposed to be a hymn about Jesus. I knew more people who had gone to socialist summer camp than I knew Republicans. Because as far as I knew, I had never met a Republican. I am not the only child of such an upbringing who fled to a place where you could openly admit to having voted for a Republican presidential candidate without expecting to come under withering verbal attack. In Applebee’s and Waffle Houses, we swap stories of the affordable housing ac-

tivists who spent their free time lobbying against building high rises in our neighborhoods, ostensibly because it would change the character, but really because it would destroy the light in the fourth-f loor apartment they’d purchased in 1972; of the people who proclaimed their commitment to diversity and tolerance, while doing their best to get any conservative socially ostracized or fired; of the outrageously bigoted way our neighbors would talk about “those people” (some combination of white, lowermiddle class, religious, Southern, conservative); of the laboriously hypocritical indignities we were subject to, like complicated building-wide recycling schemes promoted by “environmentalists” who flew to Europe four times a

appealable to and will be used by all sectors of society is. But this takes unwavering political will, strong sense of urgency, collective undertaking and patience, broad pa r t icipat ion f rom a l l stakeholders and purposive PPPs. The emergency powers must be anchored on these. n Prioritization of projects and amendments of PPP laws. The people can no longer wait. I cannot wait. Emergency powers are needed soon, even yesterday. Within the next two years, construction of mass-transit systems must begin. This means that awards for procurement contracts and PPP projects must be made not later than 2017. In 2014 a final report titled Roadmap for Transport Infrastructure has already been submitted to the National Economic and Development Authority (Neda). Numerous studies have been prepared. It is now time for action. Selection procedures under the Government Procurement Reform Act, Build-Operate-and-Transfer Law and Joint Venture Neda Guidelines must be shortened.

Unsolicited proposals must be a l lowed for pr ior it y projects, even if there is a direct gover n ment g u a ra ntee, sub sidy or equity. For some proje c t s , p r e f e a s i b i l it y s t u d i e s may be sufficient. An alternative procedure may be introduced for PPPs—competitive negotiations. The implementing agency may, after publication, conduct simultaneous negotiations with eligible and qualified proponents and awards the project to the proponent that offers the best combination of quality and price. A second round of negotiations may be conducted to elicit better terms. Approvals must be streamlined and redundancies eliminated. Consent of t he Ned a-Investment Coordination Committee should be enough, regardless of the amount, even for purposes of granting any franchise and environmental compliance certificates. A nother sug gestion is that one agency, maybe the Department of Transportation, could be designated as the sole implementing agency. Enough said. Let us move.

We can’t count on expats to tell us “what it is like” to live where they came from; they can only tell us what it was like for them to live there. I often think of this when I see some conservative pointing to a quote from some self-exiled Muslim as evidence that Middle Eastern cultures are sick. Or when liberals cheer a self-exiled Southerner who reports that everything’s rotten below the Mason-Dixon line. Or any other person explaining how the group they left is fundamentally broken.

right. Flawed, but pretty all right. And so are places. I certainly have a fraught relationship to my old neighborhood’s politics and culture. But most of my neighbors were good people, by Harper Lee’s definition: doing the best they could with what they had. Maybe not all the time, every minute. But mostly. There is grave danger in judging a neighborhood, or a culture, by the accounts of those who chose to leave it. Those people are least likely to appreciate the good things about where they came from, and the most likely to dwell on its less attractive qualities. I might as well have left New York for Washington, D.C., even if I had been as progressive as my neighbors. But as it was, I left worn down not merely by the expense and inconvenience of living in Manhattan, but also by the surprisingly constant slurs about my political leanings, the unsurprisingly constant need to decide, with strangers, whether I wanted to risk the awkwardness or abuse that often followed outing myself, or simply smile and pass myself off as a liberal Democrat. By the dates that soured when someone somehow guessed that I was not on Team Blue State, and the dinner parties that degenerated into See “Detractor,” A15

year; of the white liberals who shook their heads at all those horrid racists, while trying to mask, with code words, their determination to isolate their own children from minority peers, except for a token handful who were solidly upper middle class. Now, I could write a piece on how the real hypocrites are liberals, or a “pox on both their houses” sort of column on how everyone is terrible. But you know what? People are generally pretty all

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Opinion

Grab that Uber!

Rate cuts are better than negative rates

BusinessMirror

Atty. Lorna Patajo-Kapunan

legally speaking

s you all may know, Grab and Uber cars are now seen as an alternative for taxi cabs, not only here in the Philippines, but across the globe, as well. The main reason being is that riding a Grab or Uber car may be more convenient and may be safer compared to taxi cabs. I have read testimonials that Grab and/or Uber are more convenient than taxi cabs, since you just need a smartphone and a working mobile-data connection in order for you to hail a Grab or Uber car, as compared to the gruesome task of hailing a taxi cab for several minutes with fear of rejection from taxi-cab drivers or overpricing of fare. There are some testimonials, as well, that say that passengers using Grab and/or Uber feel more secure when they rode the same, as the details of the Grab or Uber driver is shown in the mobile application. Aside from the popularity of Grab and Uber among Filipino commuters, Grab and Uber proved to be popular among starting entrepreneurs, as well. As many claimed, a Grab peer or Uber partner may earn as much as P1,500 to P3,000 per day, if the owner is the driver, as well, and depending on the hours spent on the road. Hence, by reason of this popularity, many neophyte entrepreneurs are venturing to the Grab or Uber business, considering that car dealers are now offering more flexible payment terms for car purchases. However, on July 21, the Land Transportation Franchising and Regulatory Board (LTFRB) issued Memorandum Circu lar 2016 008. In the said memorandum, the LTFRB recently suspended the applications for a transportation network vehicle service (TNVS), a government application, which is vital for Grab peers and/or Uber partners to finally launch their transport services on the road. Furthermore, the LTFRB, in the said memorandum, is currently reviewing its existing policies and other relevant and pressing issues regarding the issuance of franchise to TNVS. A plausible reason for issuing such memorandum is due to the increasing rate of TNVS applications from Grab peers and/or Uber partners. According to the LTFRB, TNVS applications for Grab and Uber have ballooned to a total of almost 29,000 applications. With the said memorandum,

Detractors. . . Continued from A14

ten-on-one attacks not just on my politics, but also on my character. By the time I left, I was in no mood to be generous about the citizens of my birth city. When a conversation turned toward New York City, I did not break out into singing “give my regards to Broadway.” However, I am, like many political columnists, kind of obstreperously opinionated. I think a lot about politics, and I care a lot about politics. I have trouble keeping those thoughts to myself. Even as right-leaning folks go, I was probably more likely than most to bring abuse on myself. I am, in short, an outlier, an especially bad fit for the city of my birth. Which is one of the reasons that I left for a place where right-leaning libertarians were not so unusual. We can’t count on expats to tell us “what it is like” to live where they came from; they can only tell us what it was like for them to live there. I often think of this when I see some conservative pointing to a quote from some self-exiled Muslim as evidence that Middle Eastern cultures are sick. Or when liberals cheer a self-exiled Southerner who reports that everything’s rotten below the Mason-Dixon line. Or any other person explaining how the group they left is fundamentally broken.

With the said memorandum, Grab peers and Uber partners who are seeking for TNVS applications cannot obviously operate yet on the road, as the same is necessary under the existing laws, memorandums and circulars to obtain a Certificate of Public Convenience. According to the Commonwealth Act 146, otherwise known as The Public Service Law, a publicutility vehicle, before it may operate, must first obtain said Certificate of Public Convenience. Grab peers and Uber partners who are seeking for TNVS applications cannot obviously operate yet on the road, as the same is necessary under the existing laws, memorandums and circulars to obtain a Certificate of Public Convenience. According to the Commonwealth Act 146, otherwise known as The Public Service Law, a public-utility vehicle, before it may operate, must first obtain said Certificate of Public Convenience. Unfortunately for those who just purchased a vehicle for Grab and/or Uber, they might wait for the said memorandum to be lifted or revoked before they may successfully start their Grab and/or Uber business. I do not dispute the truth of their personal experience. What I dispute is that any personal experience can be the full measure of a people or place. They are often correct about its faults. But they often miss the virtues of which those faults may be a side product. For instance: Tight, cohesive communities provide a high degree of social support, particularly to vulnerable folks like the sick and the elderly and the grieving; they can also be nosy, controlling and somewhat hostile to outsiders. If you are the sort of person who hates the nosiness and doesn’t particularly care about the levels of social support such places can provide… well, you’re sure right that it’s nosy. But you’re not necessary right that it’s awful. Now, an outlier’s view of the internal workings of their own culture can be a valuable thing. Their unique qualities put them in a position to see things that others miss. The danger is when this “survivor’s account” is presented or received as “the truth about X.” The account is valuable only if we hear it as “a truth about X.” Maggie Young’s truth about the South will be more informative if you also wander below the MasonDixon and talk to some people who are still quite happily living there. But you’ll have to make a field trip to find the people who know why you should stay, as well as the reasons you might want to leave.

Paul Donovan

onetary policy has become increasingly complicated. We have rising interest rates in some parts of the world. We have falling interest rates in other parts of the world. Some central banks have taken rates negative. For investors, it is important to understand how such changes in monetary policy affect the economy at large. Lower rates can boost economic growth in three ways. Traditionally lower rates may encourage borrowing. This is old-fashioned supply and demand. If the price of borrowing goes down, the demand for borrowing goes up. The problem is that borrowing is not just about the price of credit. Borrowing also depends on confidence. Borrowers need to be confident about their future. Lenders need to be confident about the borrower’s future. If there is a lack of confidence, then borrowing is not likely to be encouraged by falling interest rates. Lower rates may reduce saving. This is different from encouraging borrowing, because confidence in the future seems to play less of a role. If savers receive a lower return on their savings, their attitude may be “I might as well spend; there is no point in saving.” There is an exception to this rule. If I am

“saving up”—saving money to buy a car or for a holiday—then it will take longer to save the required amount if interest rates are reduced (therefore, I will delay my spending). Reducing interest rates will move money between different groups in society. Lower rates take income from people who have savings and give it to people who have debt. The fact that the Bank of England is likely to cut rates in August makes my father unhappy, because he has savings. The fact that the Bank of England (BOE) is likely to cut rates in August makes me happy, because I have a variable interest-rate mortgage. The BOE is reducing my father’s income and increasing my income (clearly, I view this as a good thing. My father does not share that view). If reducing rates can stimulate growth, why not keep going into

Monday, August 15, 2016 A15

Lower rates may reduce saving. This is different from encouraging borrowing, because confidence in the future seems to play less of a role. If savers receive a lower return on their savings, their attitude may be “I might as well spend; there is no point in saving .“ There is an exception to this rule. If I am “saving up”—saving money to buy a car or for a holiday—then it will take longer to save the required amount if interest rates are reduced (therefore, I will delay my spending).

negative territory? The reason, as the Swiss, Swedes and Danes have discovered and the Japanese may be about to find out, is that negative rates do not necessarily act as an economic stimulus. Negative interest rates are a tax on banks and large savers, and are, thus, a thinly disguised fiscal policy. Banks are legally required to hold reserves with the central bank. The central bank charges banks a negative rate of interest on those reserves. This creates a legal obligation to pay the central bank money. A legal obligation to pay a branch of the government money is commonly referred to as a tax.

If negative rates act as a tax, then the economic stimulus of negative rates is the same as the economic stimulus of increasing a tax. Increasing taxes are not generally considered an economic stimulus. Banks can pass on negative rates to large customers, who have no choice but to hold cash in a bank. Small customers can avoid negative rates by holding physical cash. The increase in demand for high-denomination bank notes in countries with negative interest rates indicates this demand for cash. Large bank customers may choose to try and reduce their cash holding in the face of negative rates. By spending or lending cash as their deposit rates turn negative, large bank customers may boost economic growth. So reducing rates should be an economic positive—although how rate cuts impact the economy will vary. Taking rates negative is less clearly an economic positive. The stimulus of negative rates will depend on whether the disincentive to save can offset the effects of the tax that negative rates represent. Investors should bear all this in mind as interest rates continue to move around. Paul Donovan’s latest book, The Truth About Inflation was published by Routledge in April 2015. Visit www.ubs.com/pauldonovan for more research. Paul’s commentaries in the UBS series of documentaries on Nobel Laureates in economics are available at www.ubs.com/nobel

Responding to Noclar and the professional accountant Conchita L. Manabat

DEBIT CREDIT “A professional accountant shall maintain confidentiality, unless there is a professional duty or right to disclose confidential information, when not prohibited by law, to comply with technical standards and ethics requirements.” —Adopted from the Code of Ethics for Professional Accountants

ike any other professions, the accountancy profession has its Code of Ethics as set by the International Ethics Standards Board for Accountants (IESBA). The IESBA (or Ethics Board) is an independent standard-setting board that continuously develops and issues high-quality ethical standards and other pronouncements for professional accountants worldwide. A professional accountant is expected to comply with five fundamental principles: n Integrity n Objectivity n Professional competence and due care n Confidentiality Professional behavior The development of international ethical standards is a tedious process. The standard-setting body comes up with a work plan that includes all projects lined up for the period. A techni-

cal team undertakes the necessary research in order to generate an initial draft of a standard. Then, there is the long consultative process that may lead to more than one exposure draft. A case in point is a recent pronouncement on Responding to Non-compliance with Laws and Regulations, also known as Noclar. It went through two exposure drafts and three global roundtables (Washington, D.C., Brussels and Hong Kong) to reach out to all conceivable stakeholders. It took about six years before it was

approved by the Public Interest Oversight Board (PIOB) during its 47th meeting on July 1. The new pronouncement will take effect on July 15, 2017. This new standard sets out a framework to guide auditors and other professional accountants in what actions to take in the public interest when they become aware of a potential illegal act committed by a client or employer. Essentially, it is incumbent on the professional accountant after knowing the noncompliance or the suspected noncompliance with laws and regulations, to uphold the fundamental principles of integrit y and professional behavior by informing management, or when appropriate those charged with governance and to take such subsequent action as may be deemed appropriate in the public interest. By disclosing such information, the concerned party will be able to rectify, remediate or mitigate the consequences of the identified or suspected noncompliance, or it may deter the commission of non-compliance if it has not occurred. The IESBA chairman, Dr. Stavros Thomadakis, said, “This standard not only raises the ethical bar for the global accountancy profession but also provides an opportunity for it to demonstrate its

The EU’s broken budget rules need changing

ules are there to be broken—and that’s official. Spain and Portugal have just escaped punishment for breaking the European Union’s (EU) budget-deficit limits.

In the EU such lapses without consequences are not exactly uncommon. In the case of the budget rules, that’s a good thing, because the rules are widely acknowledged to be no good. But here’s a radical thought: Bad rules that nobody has any intention of enforcing would be better scrapped. The debt-and-deficits rules, part of the 1997 Maastricht Treaty, were designed to assure Germany and other fiscally conservative euro-zone members that less disciplined governments wouldn’t get a free ride. They’ve failed—

and in two distinct ways. Too much wasteful spending remains a problem in many countries. And the pressure to cut, such as it was, has fallen too heavily on public investment. Spain’s budget deficit was 5.1 percent of GDP last year and Portugal’s was 4.4 percent—both in excess of agreed-upon targets. Breaching the EU’s deficit targets without permission is supposed to be met with a fine of up to 0.2 percent of GDP. But the targets, based on a ceiling of 3 percent under normal circumstances, are

Europe’s leaders need to rethink. They call the budget rules the “cornerstone of the EU’s economic governance.” What nonsense. Rules too dumb to be enforced should be mended or scrapped.

too low. Under current conditions, it would be a mistake for some countries to be on the right side of that number. Europe has been suffering from a serious shortfall of demand, and fiscal stimulus was the right response. Spain, moreover, has been a bold reformer in other ways. Its conservative government pushed through

unflagging commitment to act in the public interest. The standard reinforces the public interest role that professional accountants play in stimulating more trustworthy and accountable organizations, and in helping to protect stakeholders and the general public from substantial harm that may stem from breaches of laws and regulations.” The Philippines adopts the international standards of accounting, auditing and assurance, and ethics for accountants. Thus, it is expected that the regulators will roll out in the country this new pronouncement from the international standard setter. Dr. Conchita L. Manabat is the president of Development Center for Finance. She is a past chairman of the International Association of Financial Executives Institutes, where she now serves as chairman of its Advisory Council. A certified public accountant, she was once the chairman of the Board of Accountancy, the national regulator of the accounting profession. This column accepts contributions from accountants, especially articles that are of interest to the accountancy profession, in particular, and to the business community, in general. These can be e-mailed to boa.secretariat.@gmail.com

tax and labor-market reforms that helped to restore growth, now running at more than 3 percent. Its government deserves to be commended, not punished. Portugal is in worse shape, to be sure, with its high public debt, sluggish growth and dangerously fragile banks. Its government does need to undertake a fiscal correction—but fining it for failing to do so would hardly have made that politically challenging task any easier. Again, therefore, Europe was right to withhold punishment. Europe’s leaders need to rethink. They call the budget rules the “cornerstone of the EU’s economic governance.” What nonsense. Rules too dumb to be enforced should be mended or scrapped. Bloomberg View

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Monday, August 15, 2016

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Angara wants to include rehab of drug addicts in 2017 budget F

By Butch Fernandez

@butchfBM

unds for the rehabilitation of hundreds of thousands of drug dependents must be included in the 2017 national budget to bolster the government’s war against illegal drugs, according to Sen. Juan Edgardo M. Angara. Angara said the P3.3-trillion national budget for next year, which President Duterte is scheduled to send to Congress on August 15, should carry “appropriations for the treatment” of drug addicts. He said a strong national drug-rehabilitation program is “the logical next step to the administration’s drive to suppress widespread use of illegal drugs.” “It is not enough that we have a budget for the ‘jail the pusher’ part. We must also fund the ‘save the user’ component of the antidrug campaign,” Angara said in a statement. “We should help addicts turn over a new leaf. They need help. Without intervention, there’s a strong chance they’ll backslide to their old ways. If that happens, then we’re back to square one,” he added.

₧634.4 million

The budget of the Department of Health for the operation of dangerous drug-abuse treatment and rehabilitation centers Angara noted that there is very little amount in the 2016 national budget for drug rehabilitation centers or programs. “There’s none in the P154-billion budget of the Department of Interior and Local Government [DILG] and a measly P634.4 million for the operation of dangerous drug-abuse treatment and rehabilitation centers of the Department of Health,” the senator said. “For a problem so big, treatment of drug addiction has very, very small footprint in the national budget. This should not be the case in the 2017 national budget,” he added. Angara said drug-prevention funds could even extend to providing training from the Technical Education and Skills Development Authority to vulnerable youth. “For addicts who have dropped out of school, we should increase funding for Alternative Learning System programs.” See “Budget,” A2

PHILPRINT MEDIA SHOW SET ON SEPTEMBER 2-4

value-packed show of seven unified major associations of printing and allied industries is slated to be held at the World Trade Center, Pasay City, from September 2 to 4. Under the theme “Unified Philippine Printing Industry Towards Asean Integration,” the show unites for the first time in years seven major associations. The associations, with their respective leaders, who worked together to mount the “show of shows” are: Association of Law Book Writers BUHAIN of the Philippines, Dr. Edgardo Paras, president; Association of Paper Traders of the Philippines, Dennis Tan, president; Filipino-Chinese Printers Association, Michael Yao, president; Philippine Educational Publishers Association, Jose Mario Policarpio, president; Philippine Printing Technical Foundation Inc., Atty. Dominador D. Buhain, president; Printing Industries Association of Davao Inc., Iladio Aviola, president; and, Screen Printing & Imaging Digital Graphics Association of the Philippines, Nestor Coralde, president. The Printing Industry Board Foundation Inc., headed by the dynamic and visionary industry leader Buhain, is the convey or of the three-day event. Aside from the comprehensive array of print and media products and services, such as printing machines, publishing, paper and substrates, graphic design, screen printing, etc., the show will present exhibition from auxiliary industries, including banking and real estate, financial and legal consultancy, as well as on-the-spot essay writing contest, photography, training programs and performances to entertain and educate both the exhibitors and visitors. And, just for fun, the show’s got something for everyone.