Issuu

GOVT SPEEDS UP APPROVAL OF PUBLIC INFRA PROJECTS By Cai U. Ordinario

@cuo_bm

Conclusion

file photo-nonoy lacza

ocioeconomic Planning Secretary Ernesto M. Pernia said streamlining the approval process for public projects is in accordance with the President’s directive to cut red tape in government. Duterte has earlier criticized the National Economic and Development Authority (Neda) for taking a long time in evaluating and approving projects. However, Pernia assured that the “voice” of the agencies that were removed from the Neda Board and the Investment Coordination Committee (ICC) will still be heard. Pernia said the agencies that were removed, such as the Department of Agriculture, Department of Science and Technology, and the Housing and Devel-

media partner of the year

United nations

2015 environmental Media Award leadership award 2008

See “Govt,” A2

BusinessMirror

www.businessmirror.com.ph

A broader look at today’s business

Thursday, December 28, 2017 Vol. 13 No. 78

‘PHL on course for tighter monetary policy in 2018’

By Bianca Cuaresma

@BcuaresmaBM

hile change has come for the Bangko Sentral ng Pilipinas, as seen in the transition of leadership from the two-termer BSP Governor Amando M. Tetangco Jr. to the new Governor Nestor A. Espenilla Jr., one thing remains unchanged for the Central Bank—its policy stance.

For t he entire 2017, t he BSP Monetary Board decided to keep its monetary-policy rates unchanged no matter where global and local economic headwinds sail. In its last policy meeting for 2017, the BSP decided to keep the 3-percent rate on its overnight reverse repurchase facility—a rate which has been in place since the monetary authority’s transition to the Interest Rate Corridor in mid-2016—with unchanged settings on corresponding interest rates on overnight lending and deposit facilities. Continued on A2

DOJ has its hands full in 2017 By Joel R. San Juan @jrsanjuan1573

HE year 2017 was a busy year for the Department of Justice (DOJ), what with probes left and right on various controversies and the indictment of individuals who figured in high-profile cases. This year the DOJ started investigating the allegedly questionable multibillion-peso Disbursement Acceleration Program (DAP). The probe to be conducted by the National Bureau of Investigation (NBI) will determine if there is sufficient evidence to warrant the filing of malversation charges against former President Benigno S. Aquino III and his budget secretary and another official in connection with the DAP during his term. Continued on A3

opment Coordinating Council, among others, will be called by the Neda Board and ICC from time to time, depending on the agenda of the meeting. Their removal from the Neda Board, Pernia added, does not in any way send the message that the Duterte administration no longer prioritizes the development areas these agencies represent. Based on Administrative Order (AO) 8, the Neda Board, the highest policy-making body of the Neda, will be chaired by the President. Pernia, as socioeconomic planning chief, will serve as vice chairman. The Executive Secretary, Cabinet secretary, deputy governor of the Bangko Sentral ng Pilipinas, chairman of the Mindanao Development Authority and the secretaries of budget, finance, public works, transportation, energy and trade are considered members.

TRADING RESUMES Traders are back to work at the trading hall of the Philippine Stock Exchange in Makati City following the Christmas festivities in the Philippines. ALYSA SALEN

PESO exchange rates n US 50.2450

2016 ejap journalism awards

business news source of the year

P25.00 nationwide | 2 sections 12 pages | 7 days a week

Greening a brown economy Rene E. Ofreneo

laborem exercens

yphoon Vinta and the deaths and devastations it visited on Mindanao remind us that the Philippines is facing two life-crippling environmental problems—extremes in global climate behavior dubbed as climate change, and the general environmental degradation of the archipelago. The irony is that the Philippines is a low emitter of greenhouse gases—0.3 percent of the world’s total per study by the UN Environmental Program. And yet, it is in the global short list of the most vulnerable to climate changes, which spawn devastating droughts, floods and land instabilities. This vulnerability is further compounded by the sad state of the country’s environment and natural resources, characterized, among others, by massive deforestation, biodiversity loss, poor solid-waste management and weak implementation of the laws on clean air and clean water. Another irony is that the Philippines has a relatively comprehensive set of environmental laws, enacted in the course of the last four or five decades. The Philippines is considered relatively advanced in developing Asia in terms of policy responses to different environmental challenges, ranging from reforestation and biodiversity conservation to air and water-quality maintenance, solid-waste management, renewable-energy development and adoption of mitigation/adaptation measures related to climate change. These legislative responses were crafted partly in response to the clamor for environmental reforms raised by a fairly active environmental movement. However, there is a wide gap between legislation and implementation of environmental reforms. For example, the reforestation laws dating back to the 1970s have failed to stop the denudation of our forests. In fact, the Philippines has one of the fastest rates of deforestation. Per study by the Ateneo de Manila’s Environmental Science, the national forest cover shrank from 50 percent in the 1950s to only 6 percent in 2010. This was the reason the Aquino administration launched a multibillion National Greening Program (NGP) with ambitious targets—1.5 billion trees planted in 1.5 million hectares in six years. It is not clear if the NGP targets have been met and if the planted trees are now maturing to provide protection to all the regions of the country. Continued on A6

n japan 0.4440 n UK 67.2278 n HK 6.4329 n CHINA 7.6768 n singapore 37.4236 n australia 38.8243 n EU 59.6056 n SAUDI arabia 13.3987

Source: BSP (27 December 2017 )

A2 Thursday, December 28, 2017

BMReports BusinessMirror

www.businessmirror.com.ph

‘PHL on course for tighter monetary policy in 2018’ Continued from A1

The much-talked about reserve requirement ratio of banks was also kept steady at 20 percent. The BSP also maintained its inflation forecasts unchanged from its last meeting, at 3.2 percent for this year, 3.4 percent for 2018 and 3.2 percent for 2019. All forecasts are within the BSP’s target range of 2 percent to 4 percent. BSP officials said there is no need for a policy shift to tighter conditions, particularly in the nearterm, as inflation remains steadily cruising within target and domestic growth remains in check. ING Bank Manila senior economist Joey Cuyegkeng said the tame inflation gives the BSP a reason to keep policy settings steady for as long as it can. However, several economists are concerned about the pending rise in the increase in consumer prices, which could lead to the BSP hiking key rates next year. “Eyes are on the BSP’s handling in inflation control while preserving economic growth momentum.

Govt. . .

Continued from A1

Small victories

The list of initiatives that aimed to improve the project approval process resulted in the Neda Board’s approval of 20 project proposals—14 new projects and six changes in ongoing projects— this year alone. Pernia said most of these projects will be funded locally, or through overseas development assistance. Together with the project okayed in 2016, the Duterte administration has so far approved 36 proposals.

Going forward, given likely inflation pressure from tax reforms, higher oil prices and the weaker currency, as well as from buoyant domestic demand, consumer price trends and the way the Central Bank controls the situation would draw our attention,” Japan-based credit watcher Ratings and Investment Information Inc. (R&I) said. International think tank BMI Research also said the BSP is set to start its tightening bias in 2018 on account of rising inflation, among other issues that need addressing. “Inf lation is likely to face upside pressures from strong credit growth and higher commodity prices amid a strong economic growth environment,” BMI Research said. “With the peso already one of the worst-performing currencies in the region—depreciating by 2.1 percent against the US dollar in the first 11 months of 2017—and the US Federal Reserve [the Fed] set to continue on its rate hiking cycle, the Central Bank is, therefore, likely to tighten monetary policy in

an effort to safeguard macroeconomic stability,” it added. Cuyegkeng forecasts a rate hike as early as in the second quarter of 2018. Singapore-based DBS Bank also said a tighter monetary policy is needed not only to ensure long-term growth momentum, but also to provide support to Philippine bonds. “Worries about external funding and rising price pressures have increased the term premium and led to peso weakness over the past few quarters. The Bangko Sentral ng Pilipinas has thus far resisted raising rates, but leeway to do so is limited. A tighter monetary policy stance to address overheating risks may actually provide support for bonds,” DBS Bank said. “Longer-term growth sustainability is key and a tighter monetary policy stance is warranted, in our view. As the government continues to ramp up its investment spending, excessive credit growth will be increasingly a risk,” it added. Should the BSP decide to pull the trigger and deliver its first rate

hike in years, the local monetary authority will be riding the wave of higher interest rates in the region, as its neighboring counterparts are also expected to tighten monetary policy in 2018. “Monetary policy will likely be less accommodative in a number of major Asian economies over the course of 2018. We expect central banks in Malaysia, the Philippines, Thailand, South Korea and Taiwan to raise their benchmark policy interest rates over the coming months as inflationary pressures rise and to ensure macroeconomic stability,” BMI Research said. “Obviously, there’s a need to manage or address domestic macro issues, especially that the pressure of the peso has skewed to the situation that the current account has shifted from surplus to deficit, as well, effects of inflation, which is actually moving on an upward trend,” Maybank economist Suhaimi Ilias said. Ilias said the Philippines may follow the trend of higher interest rates, starting with the United States delivering a total of 75 basis

point increase for 2018. The Maybank economist also said the Philippines’s neighbors are set to raise rates, as well, in 2018. He projected that the Indonesian Benchmark Policy Rate would go up to 4.5 percent, from the current 4.25 percent. Thailand’s is seen to rise to 1.75 percent next year from the current 1.5 percent. Ilias also forecasts Malaysia’s main policy rate to hit 3.25 percent by the end of 2018, from the current 3 percent, while Singapore’s is seen to hit 1.55 percent from an estimated 1.2 percent by the end of 2017. While more experts see the Philippines implementing a rate hike next year, the latest pronouncements from the BSP, however, still point to a neutral policy stance as their favored direction. “Our monetary policy is independent of what the Fed does. We’re not obliged to follow since we don’t have fixed exchange rate. Instead, our primary focus is on the inflation outlook relative to our target,” Espenilla recently told reporters.

What the governor is hinting at are further refinements in the BSP’s current monetary-policy tool kit to give monetary-policy more teeth. “We are upgrading our monetar y operat ions f ramework: The interest-rate corridor [IRC] system was deployed last year to enhance the monetary-policy transmission mechanism. The IRC is also compatible with the further development of our capital market. We shall continue to enhance the IRC for a more market-friendly implementation of monetary policy,” Espenilla said in a recent speaking engagement. “To maintain price stability, the BSP adopted the Inflation Targeting framework in 2002. This has served us well. We continuously refine monetary-policy conduct. The implementation of the interest-rate corridor system in July 2016 is a manifestation of our commitment. More refinements are coming. These changes are enhancing the transmission channels of monetary policy,” he said in a separate talk.

Data showed that eight of these projects are considered “flagship” projects. These are the Mindanao Railway project; Philippine National Railways North 2; Cavite Industrial Area Flood Management Project; and the Clark International Airport New Terminal Building Project, which held its groundbreaking on December 20. The list also includes the Chico River Pump Irrigation Project; New Centennial Water Source-Kaliwa Dam Project; Manila Metro Line 9 (Mega Manila Subway Project - Phase 1); and the Binondo-Intramuros Bridge. Pernia said that with the number of approvals, Filipinos can expect more projects to start in 2018. He added the

Philippine economy will likely grow by 7 percent next year if the government will be able to roll out 12 of its bigticket infrastructure projects. He said the Neda expects that the Neda Board will approve another 15 hard infrastructure projects in 2018. Neda Assistant Secretary Jonathan L. Uy earlier said the ICC-Cabinet Committee has proposed to the Neda Board six other projects for approval this year, or early next year. Three of the six projects are new, namely, the P20.313-billion Safe Philippines project; the P11.369-billion Bridge Construction and Acceleration Project for Socioeconomic Development project; and a project to improve

the capacity of the Philippine Coast Guard (PCG). The Safe Philippines project entails the construction of 18 integrated operations and command centers that are complete with video surveillance systems and a remote backup data center. The Bridge Construction and Acceleration Project involves the construction of five iconic and 25 truss bridges. These will be constructed in nine regions of the country and will be completed by 2022 and have a collective length of 2,848 lineal meters. The project to improve the capacity of the PCG involves the acquisition of six helicopters that will be used for

marine disaster response.

as enable the government to address some of the recurring issues, that’s why [we included] other related studies,” Tungpalan said. He explained that apart from helping in feasibility studies, projects that would encounter recurring issues such as right-of-way acquisition would be able to tap into the fund. This is just one of the new innovations being introduced to realize the President’s vision that will come in 2018. As implementation starts next year, the Neda expects more changes to be introduced. Nothing is set in stone, but one thing is clear—the battle lines have been drawn and the government appears to be ready to address the country’s infrastructure constraints.

Down in the trenches

Changes in the project approval process and the facilities that will be made available to agencies in terms of project preparation and implementation are still being introduced. For instance, starting next year, the Neda will set aside P1.5 billion of its budget to fast-track the appraisal of the ICC next year. Neda Deputy Director-General Rolando G. Tungpalan said these funds will be used as Project Development and Other Related Studies fund to help agencies speed up project development. “[It aims to] support the translation of a list of projects, as well

News

BusinessMirror

DOJ has its hands full in 2017 continued from a1

The probe was ordered by Justice Secretary Vitaliano N. Aguirre II based on the complaint filed by the Coalition for Investigation and Prosecution represented by Greco Belgica. Aside from Aquino, also to be investigated for alleged DAP fund misuse are former Budget Secretary Florencio Abad and former Budget Undersecretary Mario Relampagos. The investigation was ordered following the group’s submission in September to the DOJ of documentary evidence showing alleged misuse of DAP funds, which the Supreme Court had declared unconstitutional. Specifically, Belgica is seeking an investigation into the alleged discrepancy of P2.6 billion from the DAP spending program and pursue cases of malversation of public funds with aggravating circumstances against Aquino, Abad and Relampagos. The DOJ also recently launched a probe and case buildup on the controversial P3.5-billion denguevaccine project of the Department of Health that reportedly put at risk the physical well-being of children who were vaccinated but without history of the disease. Aguirre also tasked the NBI to lead the investigation that would determine the possible culpability of some individuals involved in the program. Also subjected to a probe was former Commission on Elections (Comelec) Chairman Andres Bautista, who was forced to resign from his post last October following accusations from his estranged wife that he purportedly accumulated some P1 billion in ill-gotten wealth. Aguirre has tapped the Presidential Commission on Good Government, an attached agency of the DOJ that the Duterte administration plans to abolish, to look into alleged anomalies under Bautista’s watch. The NBI has also been directed to conduct a case buildup against Bautista. Probers are looking into possible cases of money laundering and violation of Republic Act (RA) 3019 (Anti-Graft and Corrupt Practices Act) if evidence is gathered against the poll chief. The DOJ has also probed the killing of teenagers Carl Angelo Arnaiz and Reynaldo de Guzman in August. Arnaiz, 19, and de Guzman, 14, were neighbors in Cainta, Rizal, but were reported missing on August 18. T h e C a l o o c a n C i t y p o l i c e c l a i med A r n a i z d ied du r ing a shoot-out on August 18 when he allegedly resisted arrest and fired a handgun at chasing policemen following a taxi robbery committed against Tomas Bagcal. Arnaiz’s body was found at the Ezekiel Funeral Homes weeks after his disappearance. Several policemen have been charged before the DOJ in connection with the incident.

Controversies hound the doj

Meanwhile, several resolutions presented by the DOJ have earned criticisms from the public and lawmakers. One of this pertains to the dismissal of illegal-drug charges filed against former Customs Commissioner Nicanor Faeldon and other former officials of the Bureau of Customs (BOC) relating to the smuggling of P6.4-billion methamphetamine or shabu shipment in May. In a resolution, the DOJ found no probable cause to indict Faeldon and several others for a number of criminal charges filed by the Philippine Drug Enforcement Agency (PDEA) in connection with the seized shabu shipment. Dismissed were PDEA’s complaint for conspiracy to import illegal drugs and protecting or coddling of drug traffickers under R A 9165 (Comprehensive Dangerous Drugs Act), negligence and tolerance under Article 208 of the Revised Penal Code, and corrupt practices of public officers under Section 3 of R A 3019 (Anti-Graft and Corrupt Practices Act). The DOJ held that PDEA failed “to state with clarity the acts or omission supposedly committed by the abovenamedBOCrespondentsthatwouldcon-

stitute violation of the offense charged.” However, the DOJ panel found probable cause to push for the trial of the importers, brokers and other individuals involved in the shipment. The panel recommended no bail on the personalities involved in the drug-importation case filed before the Regional Trial Court (RTC) in Valenzuela City for violation of Section 4, in relation to Section 26 (a) of RA 9165. The DOJ dismissal of the case against Faeldon and other BOC officials was widely criticized by several senators, who conducted a probe on the matter, as well as by some groups critical of the present administration. Aguirre also had to defend from criticisms his resolution issued last May downgrading from murder to homicide the charges filed against several policemen involved in the killing of Albuera, Leyte Mayor Rolando Espinosa and fellow inmate Raul Yap inside the subprovincial jail in November 2016. The justice secretary set aside the resolution issued by a DOJ panel of prosecutors that recommended the filing of two counts of murder against members of the Philippine National Police-Crime Investigation and Detection Group of Region 8 headed by Supt. Marvin Marcos, Senior Inspector (SI) Deogracia Pedong Diaz, SPO2 Benjamin Layague Dacallos, PO3 Norman Tiu Abellanosa, PO1 Jerlan Sadia Cabiyaan, PCInsp. Calixto Cabardo Canillas, PCInsp. Lucresito Adana Candelosas, SPO2 Antonio Romangca Docil, SPO1 Mark Christian Castillo Cadilo, PO2 John Ruel Baldevia Doculan and PO2 Jaime Pacuan Bacsal. Four other police officers were charged for the murder of Espinosa: Supt. Santi Noel Matira, Chief Insp. Leo Daio Laraga, SPO4 Melvin Caboyit and PO3 Johnny Abuda Ibanez. Four others were similarly charged for murder of Yap, including SI. Fritz Bioco Blanco, SPO4 Juanito Duarte, PO2 Lloyd Ortiguesa and PO1 Bernard Orpilla. Abellanosa, Laraga and witness Paul Olendan were also indicted on two counts under Article 129 of Revised Penal Code for maliciously obtaining search warrants. The DOJ filed the case before the RTC in Baybay, Leyte, after the panel of prosecutors found that the killings of Espinosa and Yap inside the Baybay jail were attended by treachery and that the respondents used stealth to carry out the raid. Se vera l sen ators, i nc lud i ng Sen. Richard J. Gordon, known a l ly of President Duter te, e xpressed t hei r d i sappoi nt ment with the DOJ decision. Gordon insisted that Marcos and his men should not be allowed to post bail for the “cold blooded” murder of the local government executive. Sens. Grace Poe and Panfilo M. Lacson Sr. also expressed grave concern over the DOJ decision.

Cases resolved

While there were questionable resolutions issued by the DOJ, there were also decisions that received praise from the public. Among them was the resolution that found probable cause to file 295 counts of inciting to rebellion charges against Karen Aizha Hamidon, the widow of a slain terrorist leader, for allegedly recruiting both foreigners and Filipinos to join the terrorist groups Maute and the Islamic State of Iraq and Syria in the fight to occupy Marawi City using various social-media applications or platforms. The resolution was seen to have bolstered the government campaign against terrorism. The DOJ explained that Hamidon posted 295 messages inciting others to commit rebellion on the social-media applications Telegram and WhatsApp. The DOJ also conducted a preliminary investigation on the fatal hazing of University of Sto. Tomas law freshman Horacio Tomas “Atio” Castillo III. The DOJ is expected to

release its resolution on the case soon. The Manila Police District (MPD) filed its complaint before the DOJ on September 25, while Atio’s parents submitted a supplemental complaint on October 9. Atio died after undergoing initiation rites at the Aegis Juris library on September 17 and was declared already dead when brought to the Chinese General Hospital. The MPD named 18 respondents in its complaint for murder, robbery and the violation of RA 8049 or the anti-hazing law. Atio’s parents have cited 31 respondents whom they accuse of murder, robbery and violation of the antihazing law. The parents also charged 23 respondents of four counts of perjury and obstruction of justice. Also this year, the DOJ issued a resolution ordering the filing of criminal charges against officials of the Comelec and Smartmatic officials for violation of the provision of the Cybercrime Prevention Act. The case stemmed from alleged unauthorized alteration of the script of the transparency server at the canvassing of votes during the May 9, 2016, national and local elections. The DOJ found probable cause to charge Smartmatic personnel Marlon Garcia, Head of the Technical Support Team, and his subordinates Neil Baniqued and Mauricio Herrera, as well as Comelec informationtechnology experts Rouie Peñalba, Nelson Herrera and Frances Mae Gonzales with violation of Sections 4(a)(1), (3) and (4) of RA 10175 or the Cybercrime Prevention Act. Section 4 (a)(1) of RA 10175 penalizes the access of a computer system without any authority, while Section 3 penalizes the intentional and reckless altering of computer data. Section 4, on the other hand, penalizes the act of hindering or interfering with the functions of a computer and computer network by inputting, deleting and altering computer data and programs, without any right or authority. Aguirre reversed the September 28, 2016, resolution issued by the Office of the City Prosecutor of Manila who dismissed the case initiated by former Party-list Rep. Jonathan de la Cruz of Abakada. In his complaint filed last year, de la Cruz accused the respondents of “ intentionally altering the election data without any right or authority.” De la Cruz pointed out that shortly after the unauthorized alteration of the script of the transparency server, the lead of vice presidential candidate Ferdinand R. Marcos Jr. over his closest rival started to taper at a uniform rate. Experts have said was statistically impossible. Marcos’s huge lead of over 1 million votes was eventually overtaken deep into the night and in the wee hours of the following morning.

Thursday, December 28, 2017 A3

Thursday, December 28, 2017

The World BusinessMirror

Editor: Lyn Ressureccion | www.businessmirror.com.ph

World’s wealthiest gain $1 trillion in 2017 on market exuberance

he richest people on Earth became $1 trillion richer in 2017, more than four times last year’s gain, as stock markets shrugged off economic, social and political divisions to reach record highs. The 23-percent increase on the Bloomberg Billionaires Index, a daily ranking of the world’s 500 richest people, compares with an almost 20-percent increase for both the MSCI World Index and Standard & Poor’s 500 Index. Amazon.com Inc. Founder Jeff Bezos added the most in 2017, a $34,2-billion gain that knocked Microsoft Corp. Cofounder Bill Gates out of his spot as the world’s richest person in October. Gates, 62, had held the spot since May 2013, and has been donating much of his fortune to charity, including a $4.6-billion pledge he made to the Bill & Melinda Gates Foundation in August. Bezos, whose net worth topped $100 billion at the end of November, currently has a net worth of $99.6 billion compared with $91.3 billion for Gates. George Soros also gave away a substantial part of his fortune, revealing in October that his family office had given $18 billion to his Open Society Foundations over the past several years, dropping the billionaire investor to No. 195 on the Bloomberg ranking, with a net worth of $8 billion. By t he end of t rad i ng on Tuesday, December 26, the 500 billionaires controlled $5.3 trillion, up from $4.4 trillion on December 27, 2016. “It’s part of the second-most robust and second-longest bull market in history,” said Mike Ryan, chief investment officer for the Americas at UBS Wealth Management, on December 18. “Of all the guidance we gave people over the

course of this year, the most important advice was staying invested.”

Winners

The 38 Chinese billionaires on the Bloomberg index added $177 billion in 2017, a 65-percent gain that was the biggest of the 49 countries represented. Hui Ka Yan, founder of developer China Evergrande Group, added $25.9 billion, a 350-percent jump from last year, and the second-biggest US dollar gain on the index, after Bezos. Technology billionaire Ma Huateng, cofounder of messaging service Tencent Holdings, became Asia’s secondrichest person when his fortune nearly doubled to $41 billion. The number of Asian billionaires surpassed the US for the first time, according to a UBS Group AG and PricewaterhouseCoopers report. The US has the largest presence on the index, with 159 billionaires who added $315 billion, an 18-percent gain that gives them a collective net worth of $2 trillion. Russia’s 27 richest people put behind them the economic pain that fol lowed President Vladimir Putin’s 2014 annexation of Crimea, adding $29 billion to $275 billion, surpassing the collective net worth they had before western economic sanctions began. It was also a banner year for tech moguls, with the 57 technology billionaires on the index adding $262 billion, a 35-percent increase that was the most of any sector on the ranking. Facebook Inc. Cofounder Mark Zuckerberg had the fourth-largest

US dollar increase on the index, adding $22.6 billion, or 45 percent, and filed plans to sell 18 percent of his stake in the social-media giant as part of his plan to give away the majority of his $72.6-billion fortune. In all, the 440 billionaires on the index who added to their fortunes in 2017 gained a combined $1.05 trillion.

Losers

The fortune of French telecommunications billionaire Patrick Drahi fell $4.1 billion to $6.3 billion, a 39-percent drop. Prince Alwaleed Bin Talal, the richest person in Saudi Arabia, dropped $1.9 billion to $17.8 billion after he was detained in a crackdown against corruption led by Crown Prince Mohammed bin Salman that targeted royals, government officials and business leaders. There were 60 billionaires who fell from the ranking, including South African retailer Christo Wiese, whose fortune dropped to $1.8 billion from a peak of $7.7 billion, in August 2016, after news of an accounting scandal at his Steinhoff International Holdings NV broke on December 5. Sumner Redstone, 94, also fell

off the list as CBS owner Viacom Inc. continued to grapple with a bitter battle for control between his daughter and other executives, while Rupert Murdoch, 86, sidestepped succession concerns with a December deal to sell much of 21st Century Fox Inc.’s entertainment assets to Walt Disney Co. Redstone shed $90 million. Murdoch added $2.7 billion. In all, the 58 of the 500 billionaires who saw their fortunes shrink in 2017, lost a combined $46 billion.

New wealth

The Bloomberg index discovered 67 hidden billionaires in 2017. Renaissance Technologies’s Henry Laufer was identified with a net worth of $4 billion in April. Robert Mercer, 71, who plans to step down as co-CEO of the world’s most profitable trading fund on January 1, couldn’t be confirmed as a billionaire. Two fish billionaires were caught: Russia’s Vitaly Orlov and Chuck Bundrant of Trident Seafood. A Brazilian tycoon who built a $1.3-billion fortune with Latin America’s biggest wind developer was interviewed in April. Two New York real-estate moguls were identified, Ben Ashkenazy

Syria rebels, opposition reject Russia-proposed talks

EIRUT—Syrian rebels and opposition groups on Tuesday rejected Russia’s proposed peace talks, accusing Moscow of failing to pressure its ally, President Bashar Assad, to end the conflict. In a series of statements, 40 rebel groups, including some of Syria’s most prominent, as well as political opposition groups, said the talks ex pected next month are an attempt to “circumvent” the United Nationsled process, which has made virtually no progress since it began in 2014. The rebel groups said Moscow has asked them to give up their demand for Assad to step down. “We reject this, and we affirm that Russia is an aggressor that has committed war crimes against Syrians,” the statement signed by 40 rebel groups said. “Russia has not contributed with a single move to alleviate the suffering of the Syrian people and it has not pressured the regime it claims it guarantees to move an inch toward any real path toward a resolution.” T he rebel g roups, i nc lud i ng A h ra r a l- Sh a m, A r my of Isl a m a nd a nu mber of Wester n a nd reg iona l ly bac ked outf its, sa id t h e y a r e c o m m it t e d t o t h e U N -led G ene v a process, a nd c a l le d on t he i nt e r n at ion a l com mu n it y to end t he bloodshed , now i n it s se vent h yea r. Po l it i c a l o p p o s it i o n g r o u p s

a nd gover ning bod ies in rebelhe ld a rea s h ave a l so re jec ted Ru ssi a’s proposed t a l k s. The talks are scheduled for January 29 and 30 in Sochi, and were announced after talks among Russia and Iran, which back the government, and Turkey, which supports the opposition. Sy r ia’s gover nment said it would attend the talks. Assad told reporters recently that the Sochi talks have a clear agenda of discussing new elections and possibly amending the constitution. The fate of Assad has been the main point of contention in all previous rounds of talks. The opposition has long called for a transitional period in which Assad would have no role, something the government refuses to even consider. T he Sochi ta lks wou ld open up a four th track of ta lks bet ween par ties to the complex conf lict. T he UN’s ow n Geneva program has been supplemented by “technica l ” ta lks in A stana brokered by Russia, Iran and Turkey. Russia periodically opens a third track through Cairo. Egypt has provided a base for Syrian reformists seen as acceptable to the Damascus government. It’s not yet clear who will attend the Sochi talks. Turkey has said the Syrian Kurdish group know n as the PYD, which governs around 25 percent of Syria’s territory and

wants autonomous rule, should not be invited. Russia said last week that Kurdish representatives would attend, but that it would not invite the PYD. In a statement, the self-administration of northeastern Syria, where the PYD is dominant, said the author it y and not individual parties should be represented at the Sochi talks. The PYD is the major political arm of the United States-allied Kurdish militias that played a major role in defeating the Islamic State group. Ankara views the group as an extension of the Kurdish insurgency raging in its southeast. Highlighting its close ties to the Syrian government, Russia on Tuesday moved ahead with plans to lease a naval base in Syria for an additional 49 years. The upper chamber of the Russian parliament voted to extend Russia’s lease of the Mediterranean base at Tartus, the last step before President Vladimir Putin’s expected signature. Russia’s air campaign in Syria, which began in September 2015, helped turn the tide of the civil war in favor of Assad. Earlier this month, Putin announced a par tia l pu l lout of troops from Syria, but Russia is determined to maintain its militar y presence there. Localized cease-fire agreements brokered by Russia, Iran and Turkey have reduced the

violence across much of Syria, but the government has kept up pressure on insurgents on the outskirts of Damascus and in the northwestern rebel-held Idlib province. T he B r it a i n - b a s e d Sy r i a n Observatory for Human Rights said at least 20 people have been killed since Monday in air strikes in southern Idlib, where the government is waging its f irst major g round of fensive in years. The Observatory and the Syrian Civil Defense said in the past 24 hours, government aircraft have dropped dozens of barrel bombs in the area, an indiscriminate weapon that has killed thousands over the course of the civil war. Elsewhere in Syria, the state news agency Sana said a military jet crashed in the northern suburbs of Hama after “terrorist groups” fired on it. It said the pilot was killed. Rebel groups issued competing claims of having downed the plane. The Observatory and the activist-operated Damascus media center reported that five sick residents were evacuated from eastern Ghouta on Tuesday. The government recently tightened its siege on the rebel-held suburb, home to nearly 400,000 people. The UN says the government has refused to allow hundreds of Syrians requiring medical treatment to reach hospitals minutes away. AP

and Joel Wiener. Several technology start-up billionaires were identified, including the CEO of Roku Inc. and the two cofounders of Wayfair Inc. Investor euphoria created a number of Bitcoin billionaires, including Tyler and Cameron Winkelvoss, with the value of the cryptocurrency soaring to more than $16,000 on Tuesday, up from $1,140 on January 4. The leap came with a chorus of warnings, including from Janet Yellen, who called the emerging tender a “highly speculative asset” at her last news conference as chairman of the Federal Reserve, on December 13. With wealth surging to new highs, billionaires may quickly learn that a billion dollars doesn’t buy what it used to. The price of housing has topped $300 million, the cost of divorce has hit $1 billion and a rediscovered painting by Leonardo da Vinci sold for $450.3 million at a Christie’s auction in November, the most expensive work ever sold. “Would you believe it?” Eli Broad, who has a $7.4-billion fortune and his own museum in Los Angeles, said after the sale: “It’s wild.” Bloomberg News

Rohingya refugees have only memories, saved on cell phones

UTUPALONG, Bangladesh—Abdul Hasan can spend hours watching old videos he shot on his cell phone. “My heart aches for my village, my home,” the 16-year-old Rohingya refugee from Myanmar said in a camp in neighboring Bangladesh. “That’s why we have brought these memories, this video, from Myanmar.” S i n c e l a t e - A u g u s t h u n d re d s o f thousands of Rohingya Muslims have fled to Bangladesh to escape attacks by Myanmar security forces. But before fleeing from advancing soldiers, few Rohingya had time to grab many of their belongings. Instead, they poured across the border into Bangladesh bringing with them little more than horror stories of marauding forces and memories of terrifying treks through the forests. Their old lives—homes, cattle, villages, everything—are gone. All they have left is their memories. But if they’re lucky, some of those memories are stored on the cell phones many refugees managed to bring with them. It’s the closest Hasan gets to experiencing his old life and country. One video shows him having what he calls a “coconut party.” A song hailing the bravery of a Rohingya rebel leader plays in the background as Hasan and his friends eat coconuts, and laugh as they throw them at each other. “When I watch this video, I think of my country, Myanmar. It really breaks my heart so much,” he said. The government of Buddhist-majority Myanmar has refused to accept Rohingya as a minority group, even though some have lived in the country for generations. Rohingya were stripped of their citizenship in 1982, denying them almost all rights and rendering them stateless. In late-August attacks by Rohingya militants triggered a brutal and indiscriminate response by Myanmar’s military, sending more than 630,000 Rohingya fleeing to nearby Bangladesh. Mohammad Fahid, 15, said he often finds himself looking through old photos and videos on his phone. He misses his friends. He misses school. “I shared a lot of good times and laughter with my friends. I can’t do that here anymore,” he said. “We could go to school, now we can’t. So that is why I have kept these pictures. To remember.” There is little work for the adults in the camps, and almost no schools for the children, who make up nearly 60 percent of the refugees. There is plenty of time to scroll through cell phones. But not all the phone memories are happy. AP

Angry young, rural voters to set economic tone for India in 2018

rime Minister Narendra Modi will probably boost spending to retain young voters and those in India’s hinterland, who are straying away from his party as joblessness grows. The government will target a budget deficit of 3.2 of GDP in the year starting April 1, according to a Bloomberg survey published this month, wider than the previous goal of 3 percent. Higher expenditure will stoke inflation that’s seen accelerating to 4.6 percent, from 3.5 percent the previous year, and boost GDP growth to 7.5 percent, from a projected 6.7 percent. More people aged 18 to 25 are estimated to have voted for the opposition in an election in Modi’s home state of Gujarat, which ended with the ruling party getting its lowest seat tally in more than two decades. His Bharatiya Janata Party (BJP) was pushed across the finish line largely because of its urban voters, which is acceptable for this region because of its higher urbanization rate but could backfire in a slew of state elections next year and a national vote in 2019. “The BJP is unlikely to interpret these results as businessas-usu a l,” Neel k a nt h Mishra and Deepali Bhargava, analysts at Credit Suisse Group AG, wrote in a December 18 report. They predict the budget due February

will focus on rising farm distress and unveil cash transfers for fertilizer subsidies, crop insurance and possibly higher guaranteed crop prices.

Fiscal slippage

“However, contrary to widely held beliefs, we do not expect a fiscal slippage,” they said, predicting a 3.1-percent shortfall for next year versus the 3.2-percent currentyear target. Bank of America Merrill Lynch sees the government retaining 3.2 percent for next year, as write offs on farm loans will probably double to $40 billion by the time Modi faces reelection in early-2019. Its economists Indranil Sen Gupta and Aastha Gudwani said the federal government—which raised salaries for its employees last year—could extend this to staff of state-run companies, and provincial administrations will rush to follow its lead. The budget should also raise the income-tax exemption limit, they said, adding that “we reiterate our call of playing consumption over investment.” W hile India’s consumption growth has been perceived as resilient, it’s largely being funded by declining savings, so a pickup in employment is needed to sustain or spur demand, according to analysts at UBS Group AG. Bloomberg News

www.businessmirror.com.ph | Editor: Lyn Ressureccion

The World

Macron gets tough as France struggles to deal with migrants

ARIS—It’s getting colder, the clock is ticking and regional authorities are scrambling to meet President Emmanuel Macron’s deadline: Get migrants off France’s streets and out of forest hideouts by year’s end. That won’t likely happen, and Macron’s government is now tightening the screws: ramping up expulsions, raising pressure on economic migrants and allowing divisive identification checks in emergency shelters. Critics contend that Macron’s increasingly tough policy on migrants—though wrapped in a cloak of goodwill—contradicts his image as a humanist who defeated an anti-immigrant populist for the presidency, and has crossed a line passed by no other president in the land that prides itself as the cradle of human rights. From snowy Alpine passes to the borders with Spain or Germany, migrants keep making their way to France. In Paris alone, police have evacuated around 30,000 people camping on sidewalks in the last two years. No one doubts that France’s system of dealing with migrants needs fixing, w ith a perennia l housing shortage and long wait times in applying for asylum. “Living in the street. Living in a tent. Sometimes you get food. Somet imes you not get food,” said Samsoor R asooli, a 25 -year-old A fghan standing in line since 6 a.m. to apply for asylum at a Par is facilit y, where some spend the night on the sidewa lk, strew n w ith filth, to keep their place. T he door closed at mid-day, the 100 places a l lotted that day for applicants fil led. “It’s winter. I can’t sleep in the street,” Rasooli said. A sylu m opens t he way for temporar y housing, but on ly one -t h ird of t he 95,000 applicants this year were accepted, government of f ic i a ls say. The huge makeshift camp in the English Channel port city of Calais, dismantled last year, was emblematic of the problems. Its residents were d ispersed around France, but others keep coming in hopes of reaching Britain, and are finding a rude welcome. France’s highest administrative body said the migrants have been subjected to inhuman and degrading conditions, and an investigation ordered by the interior minister found that it was “plausible” that police used excessive force against migrants, as Human Rights Watch maintained. A bill overhauling asylum and immigration policy will be debated in the spring, notably expediting asylum demands but also doubling to 90 days the time a person without papers can be held in a holding center, the last step before expulsion—an approach the government says is “balanced” and “efficient.” Macron said in a speech in July in Orleans before a group of new citizens that he wanted people “off the streets, out of the woods” by the end of 2017. “I want emergency lodgings everywhere.” While his words conveyed humanit y, the underly ing message bites. Macron has made clear he wouldn’t accept economic migrants in France, wants those who don’t qualify for

asylum expelled and doesn’t want them even trying to come to France. The French president has been rol ling out a multipronged approach that stretches to Africa, with points set up in Chad and Niger to preselect those certain of gaining asylum—and weed out potential economic migrants. At home, Interior Minister Gerard Col lomb has ordered prefects, regional representatives of the state, to crack down on illegal immigration, “act quickly” to expel those who fail to gain asylum and report results within weeks, according to a November order cited by the newspaper Le Monde. A newer set of orders in December rang alarm bells. Collomb told regional authorities to set up “mobile teams” to run checks in emergency housing to ascertain the status of migrants. Emergency shelters are considered bedrocks of the French tradition of open arms to those in need and have long been considered untouchable, even by security authorities. The accent on security in dealing w ith immigration has appalled even some who support the centrist Macron. In a first, a lawmaker from Macron’s young party broke ranks last week with critical remarks about the direction the country is taking on the immigration issue. “All foreigners in France are not terrorists. All foreigners in France are not indelicate social aid fraudsters,” Sonia Krimi said, to the applause of the opposition. Far-right leader Marine Le Pen, defeated by Macron in the May presidential race, sees the direction the government is taking as a “political victory” for her anti-immigration National Front party. “ W hat the gover nment wants is more expulsions” and “more quickly,” Jacques Toubon, the state-appointed national rights defender, told France-Inter radio. But “the situation of vulnerable people isn’t taken into account.” Feeling the heat, Prime Minister Edouard Philippe h a s a nnou nced consu lt ations starting on January 11 with mayors, lawmakers and aid groups that play a major role in helping to feed and house migrants. On the ground, authorities are scrambling to show they are following the president’s clear-the-streets orders. A camp of about 40 Afghan migrants was dismantled last week in the Pas-deCalais region in northern Fra nce, a nd a not her wa s taken down in Macon in the east. On Thursday a camp on the banks of the Seine River was the latest in Paris to be bulldozed, with 131 migrants taken to shelters. Police staked out a tollbooth north of Paris in an operation against the “migrant flux,” stopping car after car to check for migrants who don’t have residency documents. Pat r ic k We i l , a mon g France’s leading immigration specialists, said Macron “tweets about human rights and refugees during the day and at night give the opposite orders.” Weil contended on BFM-TV that Macron’s approach is “the most extreme we’ve had since the war.” It’s coated “with a smile, with bonbons, but in practice it’s a dagger,” he said. AP

BusinessMirror

Thursday, December 28, 2017

Vietnam export boom in 2017 defies Trump’s trade threats

rom mobile phones to furniture, Vietnam’s export boom shows no signs of losing steam, defying a gloomy outlook at the beginning of the year when United States President Donald J. Trump persisted with his trade threats.

Furniture maker Xuan Hoa Viet Nam Co. is planning for a 20-percent increase in export orders next year by investing $3 million on equipment to expand production, General Director Le Duy Anh said in an interview. The company, based near Hanoi, makes office tables and cabinets for clients, including Ikea. “I’m quite optimistic about our sales next year,” Anh said. “We have new customers in Europe, while our regular clients also sent more orders than last year.” When Trump pulled the US out of the Trans-Pacific Partnership in January, it was seen as a blow to Vietnam, which exports about a fifth of its goods to the world’s largest economy. Instead, a global trade recovery and Vietnam’s young and low-cost work force have been magnets for international investors like Nestle SA, which have opened factories in the country

this year. That’s helping underpin its economy, which economists predict expanded 6.75 percent this year ahead of data due on Wednesday, among the fastest in the world.

Coming of age

“We’ve seen Vietnam’s coming of age this decade with its rapid transformation to a manufacturing powerhouse,” said Eugenia Victorino, an economist at Australia and New Zealand Banking Group in Singapore. “The diversification of products and markets provides a tailwind to exports. We are very bullish on growth, though we remain cautious of structural issues of legacy bad debts.” The strength of the US economy bodes well for Vietnam, which was the top exporter of goods last year among Southeast Asian nations. Nguyen Sy Hoe, deputy general

A worker arranges pieces of fabric under embroidery machines inside the Esquel Group garment factory at the VietnamSingapore Industrial Park in Thuan An, Binh Duong province, Vietnam, on June 3, 2014. Brent Lewin/Bloomberg

director of Phu Tai Corp., which makes home furniture for WalMart Stores Inc. outlets in the United States, forecasts a 30-percent increase in exports next year. Phu Tai, based in a central province of Vietnam, relies on the US for 40 percent of its sales. Vietnam’s exports surged to a record $177 billion last year, with US customers accounting for about 22 percent of sales. Mobile phones and parts make up the biggest segment at about a fifth. Shipments abroad accounted for 90 percent of GDP in 2015, compared with 64 percent a decade ago, according to the World Bank. Xuan Hoa is buying three machines that make wooden furniture parts and equipment to make steel cabinets, Anh said. The company is also boosting its work force by 20 percent with the hiring of

End of 47-year Japan rice program seen boosting ramen wheat output “After seeing photographs and videos of our outlets via social media, they come here to have a real one,” said Yukari Shibayama, a spokesman at Ichiran’s flagship shop in Fukuoka City. “We have seen a surge in foreign customers to our shop, mainly from Taiwan, Korea and Hong Kong, in the past three years.” “Tonkotsu ramen is the best Japanese food for me, along with sushi,” said Jeon Byeong Hyun, a 34-year-old office worker visiting Fukuoka from Busan, South Korea. “I came here to introduce my favorite shop to my friends.” Tonkotsu ramen noodles made from Ra-Mugi at a Hakata-Sanki facility Tomohiro Ohsumi/Bloomberg

he end of Japan’s four decades of rice-market control could be good news for noodle lovers. That’s because rice farmers may plant alternative crops like wheat once government control ends by March 31 and look to tap into rising demand for ramen. Fukuoka, on Japan’s southern island of Kyushu, is expanding production of a locally developed variety of grain, known as Ra-Mugi, that’s designed to be perfect for tonkotsu ramen: a dish of cloudy white pork broth, with noodles and slices of pork that originates in the region. Ramen demand has climbed in recent years with restaurants opening from London to Sydney, challenging the ubiquity of Japan’s other well-known food export sushi. The number of shops outside the country more than doubled to over 2,000 in the two years to early 2015, Shin-Yokohama Raumen Museum says, with the expansion supported by the governmentbacked Cool Japan Fund. Asia’s second-biggest wheat importer relies on grain from the United States, Canada and Australia to produce ramen noodles domestically. “What is ideal for our ramen noodle is a chewy, sticky one

that can preserve its texture in a soup,” said Yuji Yamaguchi, counselor at Tofuku Flour Mills Co., which developed the wheat jointly with the Fukuoka prefectural laboratory. “Ra-Mugi is designed to meet our requests.”

Foreign tourists

Tonkotsu ramen was invented in 1937 by noodle-shop operator Tokio Miyamoto and was initially eaten by fish-market workers in Fukuoka as fast food. Two decades later Momofuku Ando invented the instant ramen noodles beloved by college students. The global retail value of instant noodles rose 11 percent since 2012 to $33 billion this year, Euromonitor International estimates. In Japan tourists are also driving demand and ramen now ranks alongside sushi and Wagyu steak as one of their top menu choices, according to Motoo Kawabata, a professor for global marketing at Kwansei Gakuin University in Nishinomiya. The number of foreign tourists visiting Fukuoka City rose 24 percent in 2016 to 2.57 million, a fifth straight record. Korean tourists accounted for about 40 percent, according to the city government.

Returns

Farmers may also be encouraged to grow Ra-Mugi wheat as it offers higher returns. Yukio Endo, 49, who grows rice, wheat and barley in Fukuoka, must spray crops with fertilizer for a fourth time, with a heavy machine on his back about a month before harvesting Ra-Mugi on his 8-hectare (20 acres) paddy. That compares with three times for other wheat, but is necessary to maintain a high level of protein. Millers request at least 12 percent. “It requires us to work harder, but rewards us better,” he said in an interview. Farmers producing Ra-Mugi can get premium of ¥2,300 ($20) per 60-kilogram bag compared with conventional wheat. Growers are also eligible for a ¥35,000 subsidy for every 0.1 hectare of wheat planted, as the government seeks to curb its reliance on imports. Producers are unable to keep up with local demand. Fukuoka, Japan’s second-biggest wheat grower, wants to raise Ra-Mugi production by more than 30 percent to 8,000 tons in the near future, which would be enough to supply about half the ramen shops in the prefecture, said Tadayuki Matsumoto, director at the local government’s agricultural department. Bloomberg News

100 more laborers. “We’ve increased production and are now preparing for the first shipment next quarter,” Anh added. “We’re very prepared.” V i e t n a m’s g o v e r n m e nt i s counting on those shipments to bolster growth to as much as 6.7 percent in 2018, the same goal for this year. “ T here are some potentia l risks for next year that we need to be mindful of,” said economist Vu Minh Khuong, associate professor at National University of Singapore, who is also a member of the newly formed economic advisory team to Vietnamese Prime Minister Ng uyen Xuan Phuc. “Dow nside factors may come from the US and some other international markets. But for now, the economy is resilient with good indicators.” Bloomberg News

Emerging markets’ dream run could see a reality check in 2018

ulls will retain the upper hand in emerging markets [EMs] next year, though some assets may face a bumpier ride than in 2017. Bonds and equities in developing countries will continue to streak ahead, outpacing their developed-nation peers into next year, according to a Bloomberg survey of 20 investors, traders and strategists. Currencies, however, may struggle to stay in front. The survey was conducted from December 5 to 14. And while the Federal Reserve’s (the Fed) actions will remain key in determining the fate of what has been the strongest equity rally for EM stocks in eight years, geopolitical risks will be less of a focus as investors zero in on Donald J.Trump and the outlook for the world’s second-largest economy: China. “The environment for emerging markets was great in 2017 with the Goldilocks factors of economic growth and low inflation in industrialized countries,” said Hideo Shimomura, chief fund manager in Tokyo at Mitsubishi UFJ Kokusai Asset Management Co., which oversees the equivalent of $114 billion. “The EM rally we saw this year will probably extend into 2018, but after a period of strong growth and low inflation, some adjustment will be inevitable.” Investor darlings in 2017 thanks to their high yields and buoyant growth prospects, emerging markets have weathered Trump’s protectionist rhetoric and a swathe of geopolitical brush fires—from the Middle East to the Korean peninsula. But while stocks and currencies in developing nations are on track for their best year since 2009, investors may become more selective in 2018 as headwinds like the Fed tightening weaken the appeal of EMs. Consistent with a survey in October, market watchers continue to see the Fed and President Trump’s policy moves to be key for developing-country assets in the new year. What happens with China—where authorities are waging a battle against debt and President Xi Jinping is cementing his power—has edged up in the rankings. Going forward, Mexico’s peso and bond market, as well as Brazilian equities are among the most-favored EM assets, while Turkey’s assets ranked low given the country’s persistent political uncertainty. Bloomberg News

A6 Thursday, December 28, 2017 • Editor: Angel R. Calso

Opinion

BusinessMirror

www.businessmirror.com.ph

editorial

People can handle the truth about the environment

ome scientists think that humans can’t handle the truth about the damage they are doing to the environment—that findings must be sugar-coated lest people lose the hope needed to act. They should listen to psychologists and stop holding back. Earlier this year, the journalist David Wallace-Wells examined some of the more extreme possible consequences of climate change, including collapsing food supplies, perpetual war and extreme heat making cities uninhabitable. Climate skeptics were predictably outraged, but some scientists also criticized the article for scaring people. “The most motivating emotions,” they claimed, “are worry, interest and hope.” Fear, they argued, tends to make people disengage and dismiss the issue. Is that true? Not really. In a recent paper, the psychologist Daniel Chapman and coauthors argue that this oversimplifies how emotions influence our actions. They aren’t like buttons that can be pushed to trigger a certain behavior. Rather, they act in a subtle way, tagging information in our memory with emotive tones, or influencing how we might seek out further information. As a result, any simple recipe for emotional persuasion—say, being negative or positive—is unlikely to have the desired effect. Finding a way to communicate is crucial, because the situation is, in many ways, dire. Researchers in Germany, for example, recently reported that flying insect populations in some 63 protected nature zones had declined by 75 percent over the past few decades, with no obvious cause in weather or other conditions. If, as ecologists expect, this reflects changes in the insect population more broadly, then a large component of the biosphere on which we depend could be collapsing before our eyes. Although the cause isn’t certain, it appears likely to be a combination of widespread pesticide use and loss of wild areas. One ecologist interpreted the finding as evidence that we’re “on the path to ecological Armageddon.” Arguably, this is not overstatement, as some 80 percent of wild plants depend on insects for pollination, and 60 percent of birds rely on them for food. So how to get the message across? In an interview, Chapman said it would be a big mistake to downplay frightening issues just because the public might not like to hear about them. What’s important is to provide other information that can help readers relate the news to their own lives, and to identify practical avenues by which they might respond. People tend to care more about issues that have repercussions locally, both in time and geography. So, if such potential repercussions exist, communications should emphasize them. To many readers, for example, ecological Armageddon sounds far off, as do insects in Germany. Yet the findings suggest that states, such as California, Iowa or Nebraska, could face similar declines in insect populations, with severe consequences for agriculture. In addition, people need some feeling of agency: Strategic changes in agricultural policy and practice, for instance, could help the insects recover. Chapman mentioned one final thing, perhaps the most important: authenticity. People want to be treated with respect and given balanced information, and they’ll turn away if they feel they’re being sold something. Granted, balance won’t necessarily change the minds of the most ideologically fixated readers, but they’re in the minority. “A much larger portion of the public,” Chapman said, “is either disinterested, unaware or inundated with too much other information.” These people can handle frightening news, no softening needed, if offered some help in seeing how it might touch their lives and what they can do about it.

Cycling into 2018 John Mangun

OUTSIDE THE BOX

E mark milestones as dates on the calendar. The cycle of our personal lives are celebrated by a birthday. The Christian faith marks the fixed date of the Christmas birth. Most of us look backwards with successes and failures and forward with added experience each New Year. The cycles never end, including the one we can never change—birth, life and death. Yet, the western mind-set and world view refuses to accept that the cycles are part of the universe and are part of everything in our world. From examining the cycles, patterns emerge. For example, if you look at the timing of every financial panic between 1683 and 1907, on average, there had been a panic every 8.6 years. And then a pattern emerges. If you count the number of days in 8.6 years, it is 3,141. That is one thousand

times pi. If pi is essential to the physical world, maybe it helps govern what happens in the markets and even with fluctuations in human behavior. What cycle may we be facing into 2018? For the past two years, I have been ranting about how we have been in a time of political chaos and change. The only traditional political party that was able to gain more power was the Communist Party in China. OK, the Liberal Democratic Party in Japan of Shinzo Abe is stronger, but Abe also broke with the “Liberal” part

Greening a brown economy

Since 2005

BusinessMirror A broader look at today’s business

Dr. Rene E. Ofreneo

LABOREM EXERCENS

✝ Ambassador Antonio L. Cabangon Chua Founder Publisher

T. Anthony C. Cabangon

Editor in Chief

Jun B. Vallecera

Managing Editor Associate Editor City & Assignments Editor

Max V. de Leon Jennifer A. Ng Vittorio V. Vitug

Senior Editors

Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Efleda P. Campos Dennis D. Estopace

Online Editor Social Media Editor

Ruben M. Cruz Jr. Angel R. Calso

Creative Director Chief Photographer

Eduardo A. Davad Nonilon G. Reyes

Chairman of the Board & Ombudsman President VP-Finance VP Advertising Sales Advertising Sales Manager Group Circulation Manager

Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Adebelo D. Gasmin Marvin Nisperos Estigoy Aldwin Maralit Tolosa Rolando M. Manangan

BusinessMirror is published daily by the Philippine Business Daily Mirror Publishing, Inc., with offices on the 3rd floor of Dominga Building III 2113 Chino Roces Avenue corner De La Rosa Street, Makati City, Philippines. Tel. Nos. (Editorial) 817-9467; 813-0725. Fax line: 813-7025. (Advertising Sales) 893-2019; 817-1351, 817-2807. (Circulation) 893-1662; 814-0134 to 36. E-mail: news@businessmirror.com.ph.

www.businessmirror.com.ph

Printed by brown madonna Press, Inc.–San Valley Drive KM-15, South Superhighway, Parañaque, Metro Manila MEMBER OF

of LDP by calling for the increased militarization of Japan. Every time there has been a period of political upheaval, this was followed by a period of economic chaos, and this should take place beginning 2018 through 2020. As I said before, a clear indication for this will be a strong—not weaker—dollar. Europe cannot afford any capital flight into the US dollar. Further, an increase in US interest rates would be bad for the United States government when paying or servicing its debt. Such would also raise the attractiveness of investing in the US. In spite of terrible approval ratings, President Donald J. Trump is getting high marks—very high marks—from the public on the economic issues. Consumer confidence is at the highest level in almost 17 years. While the media and press bash the new tax laws in the United States, the results will be so positive that the Australian Minster of Finance is saying that his country’s economic growth may be as much as 1 percent slower as business moves to more favorable condition in the US. Here in the Philippines the new tax laws will also have a favorable

Continued from A1

lso, the overwhelming majority of the local government units have not complied with the law on the closure of open and unsanitary landfills or dump sites. In environmental education, a 2008 law requires its integration at all levels of basic, tertiary and technical-vocational education; and yet, the three educational authorities—Department of Education, Commission on Higher Education and Technical Education and Skills Development Authority—still have to comply with this integration mandate, although they have been carrying out specialized environmental education/training programs. Clearly, there is an urgent need for greater vigor, coherence and consistency in the implementation of environmental laws and programs. The 20 or so typhoons that regularly wash to our shores every year and alternating El Niño (drought)/La Niña (typhoons) affecting the country underline the urgent need to put environmental renewal and climate-change readiness at the center of development planning for the government. This necessarily requires a green shift in the economy. Ironically, a shift toward a green/ greener economy is the key to a jobfull, sustainable development path for the country. Combating climate change and environmental degradation means adopting measures to insure sustainable broad-based development for the country. Unlike in the 1950s to 1970s, the Philippines cannot afford to use its remaining forests and minerals to export

and finance the requirements of agro-industrial development at home—unless it is prepared to commit ecological suicide. The country then was an import-dependent, inward-looking economy. Today, it has a stagnating agro-industrial base unable to compete in the global export market as well as in the liberalized domestic market for varied reasons, primarily the high cost of doing business and the nightmarish absence of needed infrastructures. Only the narrow export sector (electronics assembly, select auto-parts manufacture and banana/pineapple products) and the globally outsourced call-center/business-process outsourcing services are doing well. But, on the whole, the remittances of 10 million or so overseas Filipino workers (OFWs) are what are sustaining the country and the various service industries in the country. If the idea is to create jobs through industries competing globally on the basis of cheap natural resources, the

Philippines is a goner as a nation. If the idea is to compete on the basis on cheap labor, it is also a loser, as it has been losing out to China, Vietnam, South Asia and now Africa. Going green? This is clearly the way forward for the Philippines. As pointed out by this author in earlier articles, going green has tremendous job and business potentials for the country. First, millions of jobs can be created by restoring the environment—the renewal and rebuilding of our disappearing forests, eroded watersheds, missing esteros and waterways and threatened ecosystems. The Visayas State University in the Visayas and the Haribon non-governmental organization have perfected the “rainforestation” model, which transforms host communities into forest keepers and trains them to plant climate-resistant tree varieties, mostly of the old types. The Department of Environment and Natural Resources (DENR) architects of the NGP have adopted this model in the promotion of DENR-community organization partnership in planting trees. Second, millions of jobs can be created by transforming communities nationwide (from the coastal to the highland) into climate-change ready or climate-change resilient habitats and infrastructures, such as building up dikes and drainage systems, cleaning up rivers and esteros, fortifying houses or settlements against floods and soil erosion, developing concrete barangay pathways and generating alternative fuel. The whole idea is to rebuild communities into ecological and sustainable ones. Local communitydevelopment planners should abandon the old relocate-and-transfer approach in favor of an integrated on-site or nearsite community-renewal and -rebuilding program involving job and housing creation for the urban and rural poor. Third, the emerging “green sector”

impact, although there will be some price increases. My personal view of the Philippine economy—and the stock market for that matter—is that the first half of 2017 was not impressive. It was as if the engine was idling at normal speed and not any more. I do not feel as though the economy or the market was moving much. The second half of the year was only slightly changed in that at least we are moving forward now. What I see for 2018 is that we will start building momentum that should carry through to at least the third quarter. Having said that, note that my optimism applies only to the Philippines. I would not place any bets longer than one year. The next six months are going to provide great money-making opportunities in both business and the stock market. But, like Joseph of ancient Egypt, use that time to fill your barns just incase a famine comes. Happy New Year! E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stockmarket information and technical analysis tools provided by the COL Financial Group Inc.

of the economy—hydro, wind, solar, geothermal, etc.—should and must be supported. One challenge that must be addressed by the government is how to help finance community-based or small renewable-energy (RE) projects that are labor-intensive and community-friendly, e.g., series of mini hydro projects or sabo dams. Another challenge is how to connect these RE projects to the grid and buy the energy at fair prices. A green economic shift also means the greening of the three economic sectors—industry, agriculture and services. The way forward for the globalized but uncompetitive Philippine manufacturing is through an upgrading program requiring higher value-adding but energy-efficient chains of industrial activities. This entails, for example, the transformation of the export-led electronics and auto-assembly plants into generators of higher-value-added products, such as original equipment manufactures, brands and even new global products. For local manufacturing, this means a similar industrial upgrading and adoption of an energy economy supplemented by a fair-trade policy regime (e.g., anti-smuggling). To sum up, going green is a win-win proposition for the country. But such a shift will not be easy, for this requires “unlearning” by government economic planners of the old paradigm of “trickling down” growth through debt-financed big-ticket infrastructure, focus on the promotion and development of select export products and outright reliance on OFW remittances. Going green—at the national level—also means going beyond superficial green programs like cleaning up of public parks or once-ina-while dredging of the Pasig River or building “green homes” for the rich and famous. Going green means total mobilization of the country under a green development vision where rich and poor Filipinos have a role to play.

Sports BusinessMirror

Editor: Jun Lomibao | mirror_sports@yahoo.com.ph

Thursday, December 28, 2017

Monsalve-Uy tandem tops 4-ball for 2-stroke lead

yan Monsalve and Lanz Uy combined for nine birdies and dominated the opening four-ball format with a 59 to seize a two-stroke lead over Paolo Wong and Don Petil in the National Doubles Amateur Golf Championship at Camp Aguinaldo Golf Club in Quezon City on Wednesday. Monsalve and Uy, who yielded the overall crown to Carl Corpus and Yuto Katsuragawa last year, broke away from a four-way tie after nine holes with five birdies at the backside of the par-68 layout, capping their romp with back-to-back birdies for a 31-28 card in best ball. They hope to keep their charge as play shifts to aggregate today with the final round tomorrow to feature the tougher two-ball, foursome (alternate shot) format. “We played pressure-free throughout. It’s been smooth and quite easy since even if one gets into trouble, the other will step up and save the hole. We just enjoyed it,” said Monsalve, whose partnership with Uy netted them the Group I title in last year’s staging of the season-ending tournament, organized and conducted by the National Golf Association of the Philippines and sponsored by the MVP Sports Foundation. Wong and Petil, who matched Monsalve and Uy’s 31

Ayo

IS AYO LEAVING DLSU FOR UST?

E LA SALLE said Aldin Ayo is staying as the Green Archers’ head coach. But a report at the University of Santo Tomas (UST) camp said otherwise. The Varsitarian, UST’s official student publication, reported that Ayo looked headed to España in a recent article headlined “UST backers in talks with La Salle coach Aldin Ayo to transfer to UST Growling Tigers.” Ayo’s supposed change of heart to move to UST reportedly came after Christmas Day and official statements from both De La Salle and UST are expected anytime soon to confirm Ayo’s transfer. Ayo failed to steer De La Salle to a second straight University Athletic Association of the Philippines men’s basketball crown, losing to Ateneo de Manila in three games in the finals. Speculations that he was on the way out sprouted after the loss to the Blue Eagles, but Ayo refused to make any confirmation. “I don’t want to comment on the issue,” Ayo told the reporters after their Game Three loss on December 3. “Actually, I have lots of friends in UST. The priest who brought me here in Manila, my thesis adviser, he’s a Dominican and there are lots of priests and alumni from UST who are my friends.” De La Salle recently lost dominant big man Cameroonian Ben Mbala, who decided to forego his last season of eligibility in favor of a stint in the Mexico professional league. Ayo and officials from De La Salle and UST did not return calls or replied to text messages on the issue. Lance Agcaoili

start, actually grabbed the lead with three straight birdies to start their backside drive but the duo slowed down and missed a couple of birdie chances, settling for a 30 and dropping to second instead with a seven-under 61. Lester Lagman and Gab Manotoc also carded an opening 31 and birdied Nos. 11, 12 and 14, but fumbled with a bogey on No. 14 and slipped to third with a 62 in the premier division. Many-time national champion Rupert Zaragosa and Adrian Romero also failed to sustain their hot 31 start with a birdie-bogey stint in the last nine holes and fell five strokes off the pace at 64. Carlo Gatmaytan and Rocky Brobio pooled a 65 for fifth, while the pairs of Sean Ramos-Jed Dy, Dan Cruz-Luigi Guerrero, Aniceto Mandanas-Carlo Quimson and Clare Legaspi-Felicia Medalla each shot 66s and stood seven shots behind in the event serving as part of the PLDT Group National Amateur Golf Tour. Siblings Aldo and Paqo Barro made a 67, while the Annika Guangko-David Guangko, Kristine TorralbaMatthew Abalos and Eddie Bagtas-Leandro Bagtas

Tessa Jazmines tessa4347@gmail.com

PART OF THE GAME

2017 moments

Ryan Monsalve (right) and Lanz Uy break away from a four-way tie after nine holes, with five birdies at the backside of the par-68 layout.

TEAM PHL BEEFS UP T

EAM Philippines beefs up its roster as it sets out for the Pradera Verde Ladies Challenge from January 15 to 17, ready to get back at fancied Team Southeast Asia (SEA) in the second staging of the blue-ribbon event at the Pradera Golf Club in Lubao, Pampanga. Yuka Saso and Harmie Constantino will suit up for the hosts, vowing to provide the firepower, poise and maturity lacking in the team’s unsuccessful bid in the inaugurals of the unique championship pitting the country’s leading jungolfers and amateurs against the top players from neighboring Southeast Asian countries in a Ryder Cup-style format event. Saso is the reigning Philippine Amateur Open, Junior Open and Match Play champion, while Constantino topped this year’s RVF Cup and Northern Luzon Regional. The duo also led Team Phl to victory in last year’s World Junior Girls title in Canada with the Fil-Japanese shotmaker bagging the individual crown. “Yuka [Saso] and Harmie [Constantino] are seasoned internationalists, so that gives Team Phl maturity and spunk as we try to get even with Team Southeast Asia,” said Coach Norman Sto. Domingo, one of the team’s three skippers in the three-day event put up by Archen Cayabyab and Lubao Mayor Mylyn PinedaCayabyab as part of their effort to boost the country’s junior and amateur golf program. The hosts succumbed to a talent-laden Team SEA last year, losing in the four-ball, foursomes and singles competitions, 10 1/2-19 1/2.

Yuka Saso will suit up for the host team.

Ravena makes waves in first 2 games in PBA

RESHMAN guard Kiefer Ravena has been living up to the high expectations two games into the Philippine Basketball Association’s (PBA) 43rd season. The young Ravena has been phenomenal during his first week as a pro, posting stellar averages of 19 points, 8.5 assists, 4.5 rebounds and two steals to lead to victories against KIA and GlobalPort, respectively, in the Philippine Cup. Ravena’s inspired showing earned him the first PBA Press Corps Player of the Week award for the season to beat NLEX teammate JR Quiñahan, San Miguel slotman June Mar Fajardo, Ginebra’s Greg Slaughter, Meralco forward KG Canaleta, and Rain or Shine’s big men Beau Belga, as well as Raymond Almazan. The former two-time UAAP Most Valuable Player got off to an explosive debut as a rookie after churning out a near triple-double output of 18 points, 12 assists and seven rebounds to help NLEX shake off a tough KIA Picanto side, 119-115, during their season debut on December 20. NLEX Coach Yeng Guiao had nothing but glowing words for NLEX’s prized recruit. “I had no doubt he can make an impact and lead the team as I was hoping. That’s exactly what he did. He’s going to be special,” Guiao said of Ravena, who was selected second overall in the 2017 PBA Rookie Draft. Five days later, the 24-year-old former Ateneo stalwart proved that his impressive debut was no fluke after leading NLEX past GlobalPort, 115-104, on Christmas Day at the Philippine Arena in Bocaue, Bulacan. The sweet-shooting guard finished with 20 points, to go along with five assists, 4 steals and two rebounds against a GlobalPort side that relied heavily on Stanley Pringle as the the Batang Pier will continue to miss the services of an injured Terrence Romeo. NLEX will be gunning for its third straight win in the all-Filipino conference when it returns to action on January 7 against Phoenix at the Smart Araneta Coliseum.

tandems turned in identical 68s. Meanwhile, Pierre Ticzon and Allan Crisostomo assembled a 70 to open a twoshot lead over Rald Sarmiento and Masaichi Otake in Group II play with Santino Diokno and Miguel Roque falling five strokes behind with a 75. Allen Embuscado and Jimmy Suelo, on the other hand, carded a 72 to gain a onestroke lead over Edwin Abesamis and Hermie Salibio, with the Boom Coscolluela-Joey Anciano and Vic Se-Byron San Pedro tandems staying within striking distance with a 74 and 75, respectively, in Group III.

KIEFER RAVENA is named the season’s first Best Player of the Week.

PSA ANNUAL AWARDS UP T

HE Philippine Sportswriters Association (PSA) will hold its annual Awards Night on February 27 as it continues to preserve a time-honored tradition of feting athletes who shine here and abroad and make the nation proud. Billiards king Carlo Biado, bowling queen Krizziah Lyn Tabora and boxing titlist Jerwin Ancajas head the list of athletes to be feted during the two-hour affair—their reward for doing their share in making the year that’s about to end a memorable one. Biado, Tabora and Ancajas have also been named by the PSA board of directors in its recent meeting as candidates for the Athlete of the Year, the highest accolade to be given during the rites scheduled at the Maynila Hall of the historic Manila Hotel. The number of nominees for the top award may increase to four if another Filipino boxer in International Boxing Federation light-flyweight champion Milan Melindo wins his unification bout with World Boxing Association titlist Ryoichi Taguchi on New Year’s Eve in Tokyo, Japan. “It’s that time of the year again when the PSA throws a party for the best and brightest in

NBA RESULTS Dallas 98, Toronto 93 Detroit 107, Indiana 83 Miami 107, Orlando 89 Chicago 115, Milwaukee 106 San Antonio 109, Brooklyn 97 Denver 107, Utah 83 Phoenix 99, Memphis 97

But Sto. Domingo and co-team captains Rolly Romero and Daisy Reyes see a different result this time. “While we acknowledge the depth of Team SEA’s roster, we also have a strong, more mature squad, thus boosting our chances this time,” Sto. Domingo said. Saso and Constantino actually spearheaded Team Pradera’s record-setting victory in its maiden Philippine Airlines Ladies Interclub stint in September with outstanding age-groupers Annyka Cayabyab, Nicole Abelar, Kyla Nocum and Tomi Arejola backstopping the squad. Cayabyab, 13, Abelar, Nocum and Arejola are also in next year’s Team Phl roster, along with new recruit Laurea Duque and The Country Club mainstays Mikha Fortuna, Bernice Olivarez-Ilas and Sofia Chabon. Team SEA will field in a practically new squad, led by Thais Kultihda Pramphun, Phannarai Meesomus, Pimkwan Chookaew, Pinkaew Trachentong and returning Onkanok Soisuwan, with Malaysians Winnie Ng, Ashley Lau, Audrey Tan and Zulaikan Nurzian and Indonesian Michela Tjan, also a member of last year’s winning squad, bolstering the team co-captained by Phunampa Pornperapan and Jantsonn Kan. Keen competition is expected right in the opening day with the Scramble format in the morning and the alternate shot in the afternoon among five teams on each side. Play shifts to best ball in the second day then back to alternate shot format in the afternoon with the deciding singles (10 matches) set on January 17. The team to score 15.5 points will win the perpetual Pradera trophy, according to the organizing Forthinker Inc., headed by chairman Marilen Nuñez.

Philippine sports,” PSA President and Spin.Ph editor Dodo Catacutan said. “These athletes deserve nothing less.” Several prominent officials and friends of sports, led by Ramon S. Ang of San Miguel Corp., Manuel V. Pangilinan of the MVP Group of Cos. and Ernesto “Judes” Echauz, are also expected to get recognition and share the limelight with the athletes for their boundless help to local sports. According to Catacutan, the 23 gold medalists

in the Kuala Lumpur Southeast Asian Games and the 20 winners in the Asean Para Games, also held in the Malaysian capital, will also be given appropriate honors in the rites where former sportswriter and boxing analyst and now Agriculture Secretary Emmanuel “Manny” Piñol will be the guest of honor and speaker. “It’s a great honor that a former colleague in the sports beat who has risen to prominence will be with us on the night when we fete our top athletes,” Catacutan said. Organized in 1949 and considered as the oldest group of media practitioners in the country, the 80-member PSA has also started seeking the help of its old and new friends in sports, like San Miguel Corp., Milo, Tapa King, Cignal, Philippine Sports Commission, Mighty Sports and GlobalPort, to stage the affair. The 25-year-old Ancajas, a native of Panabo, Davao del Norte, who fights under Manny Pacquiao Promotions, made it to the short list of AOTY candidates for successfully retaining his IBF junior bantamweight title three times, the last against Irishman Jamie Conlan whom he stopped in the sixth round in Belfast, Ireland. The last two months of 2017 also proved kind to two other Filipinos athletes in Tabora and Biado. In one cold night in November in Hermosillo, Mexico, Tabora went hot, winning the Bowling World Cup and ending a 14-year title drought in the tournament where Filipino bowlers had big successes in the past. In winning this one, Tabora became the fifth Pinoy to capture the BWC title after the great Paeng Nepomuceno, the late Lita de la Rosa, Bong Coo and C.J Suarez. Not to be outdone was Biado, who clinched the World 9-Ball crown in Doha, Qatar, in mid-December to cap an unforgettable season that saw him also top the same event in the World Games and in the KL SEA Games. Biado, 34, joined the legendary Efren “Bata” Reyes (1999), Franciso “Django” Bustamante (201), Ronnie Alcano (2006) and Fil-Canadian Alex Pagulayan (2004) as Filipino champs in what is considered as the premier 9-ball tournament in the world. Special awards like Mr. Basketball, Ms. Volleyball, President’s Award, and the National Sports Association of the Year will also be handed out.

THE crowing in the Year of the Rooster will soon give way to the barking of the Year of the Dog. So this is a good time to look back and remember what all the crowing was all about, right? From my perch, 10 things caught my attention. So I’d like to invite y’all to do a little time travel with me as we look back at some sports events and issues that sent people clucking around town and in social media. 1. LA SALLE-ATENEO. We begin this column with the Green and Blue and we will end it also with the Blue and Green. As we all know, Ateneo-La Salle battles in whatever sport always brings out the hype, makes for the best box-office, and sends ticket scalpers scrambling for their biggest money-making ventures every time. In May the University Athletic Association of the Philippines (UAAP) Season 79 had another box-office finale to its volleyball season that began in February. The De La Salle Lady Spikers, led by graduating senior Kim Fajardo, successfully scored a back-to-back against archrival Ateneo. To boot, DLSU middle spiker Majoy Baron went home with the MVP trophy, beating heavies Jaja Santiago of National U and Ateneo’s Michelle Morente. How Green can you get? 2. DURANT TO GSW. Also in May, that sweet, homespun boy with the phenomenal basketball talent, Kevin Durant, opted to cut ties with home team Oklahoma Thunder to bring his talents to Oakland. Boy, did that cause a roar! He didn’t just break hearts in Oklahoma, he stoked all the anger OKC fans had in their burner—changing their perception of him from hero to heel faster than you can say KD. He got ripped in social media and all other media. He got unimaginable flak worse than what Ray Allen got after Allen brought his talents to South Beach. All that for the chance to get a ring. Well, both he and Ray got the jewelry they wanted in the end. Who cares about delicadeza? 3. PACQUIAO-HORN. In July Manny Pacquiao faced Australian Jeff Horn in his native Brisbane, Australia, and got rough-housed. As a result, Pacman’s world ratings fell and his dream for a possible rematch with Floyd Mayweather Jr. went pffft. Pacquiao fans don’t want to remember this one. 4. M&M. August came and another fight captured the collective imagination. McGregor-Mayweather. A mixed martial arts fighter against an undefeated boxing champ? Right. Everyone loved Conor McGregor’s guts. If popularity were the yardstick, McGregor would have been the king of boxing. But the reality is, Floydie won that one. The MMA champ actually turned in a strong performance but Mayweather rallied and buried his opponent by TKO in the tenth. Mayweather stayed unblemished at 50-0 and announced his retirement. 5. GILAS GOLD BUT.... Our Gilas boys—made up of a perfect mix of vets and cadets—won basketball gold in the 2017 Southeast Asian Games in Indonesia. But the Philippine team in general had a dismal performance. The modest target of 63 golds (against 113 golds bagged in 2005) was not reached. (We only got 24.) This is also the first time that PHL ranked 6th in the games that we used to dominate. Oh, well.... 6. PARA GAMES GAINS. Our differently-abled athletes did better in their own Southeast Asian Para Games held in Kuala Lumpur, Malaysia, in September. They targeted 27 golds and got 20 on top of 20 silvers and 29 bronzes to finish fifth behind Indonesia, Malaysia, Thailand and Vietnam. The 111-athletes strong contingent is the biggest sent so far in nine Asean Para Games. Philippine Paralympic Committee president Mike Barredo is mighty proud of our paraathletes and rightly so. 7. GI-NE-BRA! The most popular pro team in the land scored yet another coup when it successfully defended its Governors’ Cup title against equally popular Meralco in the Philippine Basketball Association’s last conference for the year in October. Game Seven, held at the humongous Philippine Arena, drew an all-time-high attendance for the PBA: 54,086. The game, highlighted by a 20-point lead by the Gin Kings at one point, and a late-game comeback by the Bolts, will go down in history as a classic. One of the best indeed. 8. PBA HULLABALOO. And then came the controversy in the off-season. The pre-draft trade between San Miguel and KIA that sent top draft pick Christian Standhardinger to the already formidable San Miguel setup scandalized not just a faction of the PBA board of governors but the fans, as well. That the PBA commissioner approved the trade sent the whole league into crisis mode—threatening the very existence of the 42-year-old league at one point because of the possibility of team pullouts. Thankfully, things have since been resolved and the league goes on. But during its heyday, this crisis was crazy! 9. ATENEO-LA SALLE. In early-December the sporting world got treated to another epic showdown between the two archrivals, this time in basketball. The Blue Eagles owned the Season 80 elims and lost just one game—to La Salle. La Salle made it first to the finals, but Ateneo won the best of three. La Salle was able to pull off a blockbuster win in Game Two to stay in the running. But the Blue Eagles prevailed, down to the exciting end. Like the Ginebra-Meralco game, this was a classic. Unforgettable too. 10. MBALA OUT. At the end of the year, La Salle’s two-time UAAP MVP Ben Mbala announced his tough decision to leave La Salle. The 6'7" Cameroonian, who led the Archers to their 2016 championship, will turn pro and play for Mexican ball club Fuerza Regia in Monterrey. Who will dominate the UAAP the way Mbala did in Seasons 79 and 80? The answer to that is for another column in 2018.

Sports BusinessMirror

A8 Thursday, December 28, 2017

Editor: Jun Lomibao | mirror_sports@yahoo.com.ph

TESTING REFORM LIMITS By Aya Batrawy The Associated Press

UBAI, United Arab Emirates— Saudi Arabia is hosting a world chess tournament for the first time on Tuesday nearly two years after the country’s top cleric issued a religious edict against playing the board game. Politics have also interfered, with players from Israel and Qatar missing the tournament due to regional tensions. Saudi Arabia’s top cleric, Grand Mufti Sheikh Abdulaziz Al Sheikh, said in early 2016 that chess is “forbidden” in Islam because it wastes time and can lead to rivalry among players. Similarly, top Iranian clerics have also decried the game, saying it can lead to gambling, which is not permissible in Islam. The mufti’s comments at the time led to an outcry on social media by young Saudis who defended the game as intellectually stimulating. Muslims, who introduced chess to Europe, have been playing the game since the 7th century in Persia. Despite the mufti’s past criticism, Saudi Crown Prince Mohammed bin Salman has pushed for greater social openings, including lifting a ban on women driving that goes into

effect next year, allowing concerts and movies, and easing rules on gender segregation. The chess tournament, however, has also been hit by regional politics. Israelis say Saudi Arabia ignored requests by Israeli players to obtain visas to participate in the tournament. Israel and Saudi Arabia do not have diplomatic relations. Meanwhile, players from Qatar and Iran, which have strained ties with Saudi Arabia, have been granted visas to participate in the tournament. However, Qatari players will not compete in the championship because Qatar’s chess federation said organizers demanded that the players not display the Qatari flag during the competition. A statement issued by the World Chess Federation said that visas for players from Iran and Qatar were secured. It made no mention of Israeli players. “The fact that players from Iran and Qatar may decide not to participate, after consulting their own authorities, is clearly their own individual decision,” the statement said. The statement added that Saudi authorities had proposed that, for security reasons, the Qatari players should play under the organization’s flag, but that the issue was resolved and the Qatar Chess Association was informed that their players would play under their own flag.

The tournament, called the King Salman World Rapid and Blitz Chess Championships, runs until Saturday. It includes around 240 players— both men and women—from 70 countries. There are 16 players from Saudi Arabia. The world’s top 3 chess players from Norway, Armenia and Azerbaijan are participating in the tournament. There is also a women’s chess tournament taking place alongside the open championship. Women are reportedly being allowed to wear dark blue or black formal trousers and high-necked blouses, avoiding Saudi rules of dress that require female residents and most visitors to wear loose-fitting, long robes known as abaya. Most Saudi women also cover their hair and face with veils. James Dorsey, a Mideast scholar and senior fellow at the University of Singapore, said the kingdom was granted hosting rights by the World Chess Federation with a $1.5 million check that amounts to four times the federation’s standard annual fee. “Literally everything involving Saudi Arabia’s hosting of a chess tournament is political,” he wrote in an analysis of the tournament. “Saudi Arabia’s visa policy is political as is the kingdom’s willingness to concede on women’s dress.”

TWO Saudi Arabian officials play during the opening of the first-ever chess tournament in Riyadh. AP

Ledecky swims to Female Athlete of the Year honors K

atie Ledecky got her start in swimming because she just wanted to make friends. Her brother was eager to join a team at a pool near their house and as a 6-year-old, she tagged along. By summer’s end, the Ledecky siblings had made 100 friends ranging in age from 6 to 18. Some of them remain good friends with Katie, who went on to become the world’s best swimmer in the post-Michael Phelps era. She earned five golds and a silver at this year’s world championships in Budapest, maintaining the upward trajectory she first established as a surprise gold medalist at the 2012 London Olympics. Her dominant performance in Hungary earned Ledecky Associated Press Female Athlete of the Year honors. In balloting by US editors and news directors

announced on Tuesday, Ledecky received 351 points, edging out Serena Williams with 343. Williams won the Australian Open for her Open era-record 23rd Grand Slam tennis title. Olympic track star Allyson Felix finished third in voting, with 248 points. Last year Ledecky was second to gymnast Simone Biles in the balloting. The AP Male Athlete of the Year will be announced on Wednesday. Ledecky is the eighth female swimmer to win and the first since Amy Van Dyken in 1996. Among the others is 1969 winner Debbie Meyer. At last year’s Rio de Janeiro Games, Ledecky equaled Meyer’s feat of sweeping the 200, 400 and 800 freestyles in a single Olympics. “It’s a really great history of women swimmers and freestylers,” Ledecky said of the AP honor roll. “I really look up to a lot of those women.”

Katie Ledecky’s dominant performance in Hungary earns her the Associated Press Female Athlete of the Year honors. AP

She is the first active college athlete to win since UConn basketball player Rebecca Lobo in 1995. Ledecky is a sophomore at Stanford, still debating whether to major in psychology or political science, and enjoying life in the dorms, where she lives with five other swimmers. “Just being in the college environment has kind of added another layer of fun,” she said. “Being with teammates and working toward NCAA championships and having that team goal, that’s another thing that is fun.” Ledecky heads to Colorado Springs, Colorado, for highaltitude training with her Stanford team this week. Her focus is on the collegiate season through the NCAAs in March. In moving crosscountry from her home in Bethesda, Maryland,

to attend college in California, Ledecky left behind longtime coach Bruce Gemmell. But like some of those old summer league teammates, Ledecky has stayed in touch. She trains with Gemmell when she returns to visit her family. She was a star to them in 2012 but a little-known 15-year-old to the rest of the world when she won the 800-meter freestyle in Americanrecord time in London. In 2013 Ledecky won four golds at the worlds in Barcelona, setting a pair of world records. Two years later in Kazan, she swept every freestyle from 200 to 1,500 meters, setting two more world records. Another two world records fell last year in Rio. In her typically understated way, Ledecky said: “I really pride myself on the consistency I’ve had over the past couple years. Just being able to compete at the international level and come away with some gold medals each year.” AP

SPIETH: GO GET THAT W

ITH three words, Jordan Spieth delivered a British Open moment as memorable as the 50-foot eagle putt that prompted his famous line. “Go get that.” He was telling Michael Greller to get his ball from the cup as Spieth stood to the side of the 15th green, still soaking up the significance of such a long eagle putt that restored his lead with three holes to play.

And there’s a story behind it. The reaction, while entirely spontaneous, might not have happened except for Spieth being in the makeshift gym all week at Royal Birkdale. “I had been watching replays of the Open in the gym,” Spieth said. “There was a TV in there, and they were playing old Opens. For whatever reason, it intrigued me earlier in the week that the guys, when they made putts, they never went and picked their ball out of the hole. The caddie went and got it on long putts. And I guess that stuck in my head: ‘You don’t have to pick the ball out of the hole. Michael can go get it.’” There was more to the moment, of course. Two holes earlier, Spieth missed the 13th fairway so far to the right that it hit a spectator in the head and caromed into the dunes. When he found it, he realized the driving range was not out of bounds, took a drop, had to take relief from the equipment truck and sent Greller toward the green to scout out the shot. The whole process took some 20 minutes as Matt Kuchar waited at the green. On the 15th hole, Kuchar was in a bunker in two and blasted out to about 6 feet, and then Spieth made his 50-foot eagle putt. “Michael, when I looked over, he’s laughing,” Spieth said. “For whatever reason, I didn’t want to walk all the way up there. It was pretty far away. He started to walk toward the bag, but I was already walking toward the bag and I was really intense at that point. ‘Michael, go get that!’ “It was half being serious, like: ‘Go get it quickly because Kuch still needs to putt and we don’t need to drag this on. I’ve already been in his way too much the last couple of holes. Let’s not do that anymore.’ And it was half intense— ’Pick that ball out of the hole.’” Either way, Greller went and got it. Spieth added two birdies and his name was etched into the silver claret jug. AP THE reaction, while entirely spontaneous, might not have happened except for Jordan Spieth being in the makeshift gym all week at Royal Birkdale. AP

LDV ‘Comanche’ on course for Sydney to Hobart record

OBART, Australia—Super maxi LDV Comanche held a big lead and was well inside a record pace in the Sydney to Hobart yacht race on Wednesday. The line honors favorite established a buffer of more than 11 nautical miles over rival super maxi Wild Oats XI just over 22 hours into the race. LDV Comanche was about 450 nautical miles into the 630 nautical miles to Hobart on the island state of Tasmania. LDV Comanche was averaging around 20 knots and on schedule to finish inside Perpetual Loyal’s 2016 race record time of one day, 13 hours, 31 minutes and 20 seconds. The first four boats were all on record pace, although those projections and the chance of a record could be dashed if they encounter light winds once they cross Bass Strait. The big loser overnight was InfoTrack, the former Perpetual Loyal, which slipped from

third to fifth after sustaining a damaged sail. The yacht was overtaken by Black Jack, the first boat out of Sydney Heads on Tuesday, and the 24-meter (80-foot) Hong Kong boat, Beau Geste, the only non-super maxi in the top five. “We spent a fair bit of time trying to get a damaged sail down and that hurt us,” InfoTrack boat captain Ty Oxley said. “That’s out of the race, so now we’re using a secondary sail.” The fleet of 102, including 27 international yachts, has had only one retirement—the German TP52 Rockall, pulling out with a broken rudder. LDV Comanche and Wild Oats XI nearly collided after a tack from the eight-time line honors winner Wild Oats 15 minutes into the race. That brought it to within a few meters of LDV Comanche, which raised a protest flag. Wild Oats XI could receive a time penalty after the race concludes, although Comanche LDV Comanche is averaging around 20 knots and on schedule to finish inside Perpetual Loyal’s 2016 race record time of one day, 13 hours, 31 minutes and 20 seconds. AP could withdraw the protest if it wins. AP