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Businessmirror february 22, 2017

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BMReports

‘Breaking hearts’ legally costly for many Filipinos By Joel R. San Juan

@jrsanjuan1573

Part Three

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IVE years ago, the High Tribunal confirmed an anomaly involving resolutions of petitions for annulment involving a provincial court judge. The case originated from reports by the Local Civil Registrars (LCRs) of Manila and Quezon City to the Office of the Court Administrator (OCA). The LCRs said they have received an alarming number of decisions, resolutions and orders on annulment of marriage cases issued by Judge Cader P. Indar, presiding judge of the Regional Trial Court (RTC) Branch 14 in Cotabato City and acting presiding judge of the RTC Branch 15 in Shariff Aguak, Maguindanao. The Court has established that Indar issued decisions on numerous annulment of marriage cases when, in fact, he did not conduct any judicial proceedings on the cases. Worst, it was discovered that the decisions were issued without even the filing of the petitions by concerned parties. The Court held that Indar made it appear in his decisions that the annulment cases complied with the stringent requirements of the Rules of Court and the strict statutory Continued on A2

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Wednesday, February 22, 2017 Vol. 12 No. 133

DOE bid to implement RCOA stopped anew T By Joel R. San Juan

@jrsanjuan1573

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he Supreme Court (SC) has temporarily barred the government from implementing new regulations that compel big consumers to enter into a power-supply deal with any of the retail electricity suppliers (RES) accredited by The current number of Departthe Department of Energy (DOE) and the ment of Energy-accredited Energy Regulatory Commission (ERC) by retail electricity suppliers February 26. See “DOE,” A2

MOBILE-DATA PRICE WAR HURTING TELCO’S PROFITS

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otpot Pinili, a Philippine travel blogger, is paying less to access the Internet on the go— almost half as much as three years ago, thanks to a price war. “Data has become definitely cheaper,” said Pinili, 41. “You can do more online quicker and at less cost.” Pinili and other Philippine customers are benefiting, as the nation’s two largest phone companies fight

for smartphone subscribers in a market that, according to International Data Corp. (IDC), had 30-percent penetration as of 2015. PLDT Inc. and Globe Telecom Inc. are luring prospective consumers with data packages that are among Asia’s cheapest, saying they need to spend money now to counter a decline in revenue from calls and text messages. See “Mobile-data,” A2

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IBBY Copeland reviews Bill Schutt’s new book, Cannibalism, for Slate. We recall the cannibalism of the soccer team whose plane crashed in the Andes. In Stephen King’s The Shining there’s reference to the Donner party, which dined on each other when they were lost in a snowstorm. In China, an edict of 205 BC allowed Chinese to exchange one another’s kids, so the kids could be eaten by nonrelatives. And human flesh was regarded as a delicacy by the Chinese elite. (So let’s think carefully about substituting the supremacy of an America far away for a partnership with China within cooking distance.) Continued on A11

Is your smartphone making you shy? By Joe Moran

Liverpool John Moores University

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uring the three years I’ve spent researching and writing about shyness, one of the most common questions people ask is about the relationship between shyness and technology. Are the Internet and the cell phone causing our social skills to

atrophy? I often hear this from parents of shy teenagers, who are worried that their children are spending more time with their devices than with their peers. This anxiety isn’t new. At the first international conference on shyness, organized in Wales in 1997 by the British Psychological Society, Stanford psychology professor Philip Zimbardo was the keynote speaker. He noted that since he

began the Stanford Shyness Survey in the 1970s, the number of people who said they were shy had risen from 40 percent to 60 percent. He blamed this on new technology, like e-mail, cell phones and even automated teller machines, which had loosened the “social glue” of casual contact. He feared the arrival of “a new ice age” of noncommunication, when we would easily be able to

go an entire day without talking to someone. Some of Zimbardo’s fears have been realized. Look at any public space today and you’ll see faces buried in tablets and phones. The rise of loneliness and social anxiety is now a familiar refrain in the work of sociologists such as Robert Putnam, John Cacioppo and Sherry Turkle. See “Smartphone,” A2

n japan 0.4437 n UK 62.5719 n HK 6.4662 n CHINA 7.2992 n singapore 35.3818 n australia 38.5448 n EU 53.2782 n SAUDI arabia 13.3815

Source: BSP (21 February 2017 )


A2 Wednesday, February 22, 2017

BMReports BusinessMirror

‘Breaking hearts’ legally costly for many Filipinos Continued from A1

and jurisprudential conditions for voiding marriages, when quite the contrary is true, violating Canon 3 of the Code of Judicial Conduct. Canon 3 mandates that a judge perform official duties honestly.

Anomaly discovered

AS discovered by the OCA’s audit team, the list of cases submitted by the LCRs of Manila and Quezon City does not, appear in the records of cases received, pending or disposed of by Indar. The cases do not, likewise, exist in the docket books of the Office of the Clerk of Court, RTC in Cotabato. The audit team also noted the case numbers on the list are not within the series of case numbers recorded in the docket books of either RTC in Shariff Aguak or the RTC in Cotabato. Based on the verification of the records of the trial court, there was nothing to show that proceedings were applied on the questioned annulment cases. “There was nothing in the records to show that (1) petitions were filed; (2) docket fees were paid; (3) the parties were notified of hearings; (4) hearings were calendared and actually held; (5) stenographic notes of the proceedings were taken; and (6) the cases were submitted for decision,” the decision read.

Dismissals

IN April 2012 the Court found Indar guilty of gross misconduct and dishonesty, and ordered his dismissal from the service, with forfeiture of all benefits due him.

Smartphone. . . Continued from A1

They argue that individualized consumerism is isolating us from each other and selling us cheap techno-fixes to ease the pain. We rely increasingly on what Turkle calls “sociable robots”, like Siri, the iPhone digital assistant, as a stand-in for flesh-and-blood intimates. Even when spending time with others we are halfelsewhere, distracted by technology— “alone together,” as Turkle puts it. And yet, this sense of being “alone together” can actually be useful for shy people, who can turn to technology to express themselves in new ways.

A different kind of social The shy aren’t necessarily antisocial; they are just differently

He was, likewise, disbarred for violation of Canons 1 and 7 and Rule 1.01 of the Code of Professional Responsibility, and his name ordered stricken from the Roll of Attorneys. In 2015 the SC also dismissed from the service Judge Alan Flores, presiding judge of the RTC Branch 7 in Tubod, Lanao del Norte. Flores, who was also former acting presiding judge of RTC Branch 21 in Kapatagan, Lanao del Norte, was dismissed for taking cognizance of, and deciding cases on annulment of marriage even if said cases were beyond territorial jurisdiction of the courts he presided. The Court also dismissed in 2012 Presiding Judge (RTC in Paniqui, Tarlac, Branch 67) Liberty O. Castañeda for alarming and indiscriminate granting of petitions for nullity and annulment of marriage.

er violations of the AM 02-11-10. A Court insider also said the OCA is currently investigating four trial court judges in Cavite for similar offenses.

his wife, Consuelo David. However, the option was removed in 1950, following the implementation of the Civil Code.

Divorce pushed

FOR Jessica Siquijor-Magbanua of the Office of the Solicitor General (OSG), it does not matter whether it is divorce or annulment. Both will have the end-result, that is, “parties acquiring the status of being unmarried or single,” Siquijor-Magbanua said. For Liza (not her real name), it’s a road she has long taken. Liza was married for almost seven years, before she finally decided to leave her husband in 2012 and eventually filed an annulment petition. “It was because of his psychological incapacity to handle responsibilities of a husband,” she told the BusinessMirror. “It took me a while to realize it, since as a wife, I tried to understand his shortcomings. But, I guess, it was just too grave that I decided I couldn’t take it and, hence, I left him.” Liza has so far spent P150,000 for the process, and the cost is expected to reach up to P200,000 until its final resolution. “I really look forward to finally getting my annulment. Once a woman marries, you carry your husband’s name,” Liza said. “[That] is good if you are in a happy marriage. But it you are separated and wants to get out of the marriage, it is a dilemma for women, because you will always carry your ex-husband’s name.” Liza said she is looking forward to getting back her maiden name and start a new chapter in her life.

CASTAÑEDA’S dismissal came following the conduct of an audit by the OCA that showed she granted the extremely high total of 410 petitions for annulment of marriage and legal separation in 2010 alone. The Court described as “scandalous and disturbing” the haste with which she disposed of such cases. Based on the findings of the Court, Castañeda allowed the petitions for nullity of marriage or annulment to prosper despite the impropriety of venue; resolving petitions despite nonpayment of docket fees; failure to furnish the Office of the Solicitor General (OSG) and the Office of the Public Prosecutor (OPP) copies of the petition, which under the rules must be done within five days from the date of its filing; and several oth-

MANY Filipinos are divided on the divorce issue, with the Catholic Church strongly opposing it. For Lorna Kapunan, a wellknown family lawyer, it is already about time to pass a law allowing divorce as a legal option for married couples wanting to separate. “[Divorce] is definitely cheaper, because the process will be shorter and faster,” she said. Kapunan said she does not share the position of the Catholic Church that divorce would destroy the sanctity of marriage and the foundation of the family. “I am for divorce, because double standard naman ang society natin, ang nakikinabang diyan eh ’yung mga husband na nagkaka-mistress, Wala namang divorce, kaya ’di mahiwalayan ng mga babae ang mga asawa nila. [I am for divorce because our society has double-standards against women. The only people who would benefit from this are philandering husbands. There’s no divorce, hence, women can’t break away from spousal relations],” Kapunan said. She also noted that divorce is not new to the Philippines, since it was allowed during the American and Japanese occupation. Records would show that during the Japanese Occupation, the late Vice President Arturo Tolentino managed to get a divorce on September 15, 1943, on the grounds of desertion and abandonment by

social. They learn to regulate their sociability and communicate in indirect or tangential ways. Cell phones allow them to make connections without some of the awkwardness of face-to-face interactions. When the Finnish company Nokia introduced texting to its phones in the mid-1990s, it seemed to be a primitive technology—a time-consuming, energy-inefficient substitute for talking. But texting took off among Finnish boys because it was a way to talk to girls without the signals being scrambled by blushing faces or tied tongues. Two sociologists, Eija-Liisa Kasesniemi and Pirjo Rautianen, found that while Finnish boys would rarely tell girls they loved them, they might spend half an hour drafting a loving text message. They also discovered that boys were more likely to text the words “I love you” in English rather than Finnish, because they found

it easier to express strong feelings in a different language. Another scholar of cell-phone culture, Bella Elwood Clayton, showed how text messages served a similar purpose in the Philippines. Filipino courtship rituals are traditionally coy and convoluted, with elaborate customs, such as “teasing” (tuksuhan) among mutual friends or using an intermediary (tulay, which literally translates to “human bridge”) between potential partners. The cell phone allowed young Filipinos to circumvent these elaborate, risk-averse routines and test the waters themselves by text. Such is the case wherever cell phones are used: Texting emboldens those who are more dexterous with their thumbs than with their tongues. The ping announcing a text’s arrival is less insistent than a phone ring. It does not catch us by surprise or demand we answer it instantly.

‘Scandalous and disturbing’

New chapter

To be continued

It lends us space to digest and ponder a response.

The shyness paradox As for the looming “social ice age”created by technology, Zimbardo made that claim before the rise of social networks and the smartphone. These have made it easy for people to lay bare intimate details of their private lives online, in ways that seem the very opposite of shyness. Advocates of this kind of online self-disclosure call it “radical transparency”. Not everyone using social networks is amenable to radical transparency, of course. Some prefer to hide behind online personas, pseudonyms and avatars. And this anonymity can also inspire the opposite of shyness—a boldness that turns into hostility and abuse. So these new mobile and online technologies have complex effects. They aggravate our shyness at the same time as they help us to overcome it. Perhaps, this paradox tells us something paradoxical about shyness. In his book The Shock of the Old, historian David Edgerton argues that our understanding of historical progress is “innovation-centric”. We think that new technologies change everything for good. However, according to Edgerton, we underestimate how much these innovations have to struggle against the forces of habit and inertia. In other words, new technologies don’t change our basic natures; they mold themselves around them. So it is with shyness. After about 150,000 years of human evolution, shyness must surely be a resilient quality— an “odd state of mind”, as Charles Darwin called it, caused by our strange capacity for “self-attention”. And yet, we are also social animals that crave the support and approval of the tribe. Our need for others is so strong that shyness simply makes us sublimate our social instincts into other areas: art, writing, e-mail, texting. This, in the end, is my answer to the worried parents of shy teenagers. Is their cell phone making them shyer? No: They are both shy and sociable, and their phone is helping them find new ways to express that contradiction. AP

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Mobile-data. . . Continued from A1

The outlays are eating into profits and hurting share performance. PLDT, whose 2016 profit is forecast to be the lowest since 2003, was the worst performer on the Philippine Stock Exchange index last year. Globe was the fourth-worst, and recorded a drop in income for the first time in three years. “The Philippines is a two-player market, yet they are killing each other,” said Karen Hizon, a Manila-based analyst at UBS Group AG. One megabyte of data brings in just 0.1 US cent of revenue in the Philippines, compared with 1.13 US cents in China, according to UBS. Last month Globe matched a PLDT offer and started offering a three-day, 1-gigabyte plan that includes a bonus 300 megabytes to use on apps from Facebook Inc. and Spotify Ltd. for P50 ($1). “This is the cheapest price for mobile data so far,” said Yolanda Crisanto, a spokesman for Taguig City-based Globe. A year ago, P50 was only paid for 350 megabytes. Shares of Globe and PLDT fell about 0.1 percent as of 1:29 p.m. Hong Kong time. Similar promotions helped Globe, a venture of Singapore Telecommunications Ltd., boost mobile subscribers 12 percent to 62.8 million in 2016. PLDT, which had 61.8 million mobile-phone users as of September 30, is scheduled to report full-year results on February 28. Globe’s revenue rose 6 percent in 2016 to a record P120 billion, with mobile-data bringing in P34.6 billion. Profit fell 4 percent to P15.9 billion, because of spending on subsidies and network enhancements. The company expects a “highly competitive”

DOE. . .

Continued from A1

At a press briefing, SC Spokesman Theodore O. Te said the Court issued a temporary restraining order (TRO) stopping the implementation of DOE Circular DC-201506-0010 and ERC Resolution 5, Series of 2016; Article I, Sections 2 and 3 thereof; ERC Resolution 10, Series of 2016; ERC Resolution 11, Series of 2016; and ERC Resolution 28, Series of 2016. “The Court noted that petitioners have established a clear, legal right to the TRO, considering that the Electric Power Industry Reform Act [Epira] provides for voluntary migration of end-users to the contestable market, and there appears to be no basis for the mandatory migration being ordered by the DOE and the ERC through the questioned issuances,” Te said. The TRO was issued by the 15man High Tribunal during the regular en banc session on Tuesday. The DOE and the ERC both deferred comments pending receipt of the SC decision. The two agencies issued the regulations to implement the Retail Competition and Open Access (RCOA) scheme, which supposedly seeks to give customers the freedom of choice in sourcing their power requirements. The RCOA’s implementation has been pushed back several times due to lingering court battles. The High Court, in its decision, noted the urgent need to issue the TRO, considering the February 26, 2017, deadline imposed by the ERC for end-users to enter into a retail supply contracts with accredited RES, now numbering 27. “If a TRO is not issued, the petition will become moot and petitioners stand to suffer grave and irreparable injury, because they will be disconnected from the distribution utility or made to pay a supplier of last resort a 10-percent premium between the higher contracts and the Wholesale Electricity Spot Market,” the Court pointed out. The case stemmed from the petition filed by the Philippine Chamber of Commerce and Industry, Ateneo de Manila University, San Beda College (Alabang) and mall owner Riverbanks Development Corp. The petitioners specifically asked the High Court to immedi-

market this year. Makati City-based PLDT is forecast to post a 6-percent drop in net income to P20.7 billion for 2016, while its revenue is projected to fall 1 percent to P168.7 billion, according to analysts estimates compiled by Bloomberg. Pangilinan said on Tuesday there is no need to list PLDT’s mobile unit, Smart Communications Inc., since its parent is a publicly traded company. PLDT highlighted its changing business when it renamed itself from Philippine Long Distance Telephone Co. last year. The new moniker reflects the “current thrust to decisively shift its business to data-driven services.” The change isn’t good for nearterm earnings until PLDT and Globe do away with steep price cuts, said Julian Tarrobago, who helps manage about $1.8 billion at Maybank ATR Kim Eng Capital Partners Inc. The situation is likely to improve in the next three to five years, and both stocks could offer gains of more than 20 percent, he said.

‘Rational pricing’

“At some point rational pricing will kick in, and both companies will focus on profitability rather than market share,” said Tarrobago, who bought the shares as they tumbled in 2016. “I also think of what demand will be like for mobiledata services in the next 10 years.” Globe shares have rebounded in 2017, and are trading at levels last seen in October. The 19-percent gain has made it the best stock on the local benchmark. PLDT shares, which fell 34 percent last year, have climbed 6.7 percent this year. Still, the transition for both companies is far from over, said Riche Levin Lim, an analyst at BPI Securities Corp. “It’s important to see what the competitive environment will become in the coming quarters,” Lim said.

ately put a stop to the implementation of the new regulations that compel power consumers with a monthly average peak demand of 1 megawatt to abandon their current power-supply contracts and enter into new contracts with any of the 27 suppliers chosen by the ERC to supply the contestable market. Named respondents to the suit are Energy Secretary Alfonso G. Cusi, ERC Chairman Jose Vicente Salazar, and incumbent ERC commissioners Alfredo Non, Gloria Victoria Yap-Taruc, Josefina Patricia Asirit and Geronimo Sta. Ana. The new resolutions, according to the petitioners, would actually deprive electricity consumers of their basic constitutional right to freedom of choice. The petitioners argued that the new regulations would limit their choice of suppliers by prohibiting distribution utilities from participating in the contestable market, even if the DUs can offer the lowest price to consumers. They pointed out the DOE and the ERC violated the Constitution and the Epira when they issued the regulations. The petitioners said the DOE circular and the ERC regulations in question do not promote free competition, and will lead to higher prices of electricity, affecting ordinary consumers and hurting the economy. The petitioners lamented that the new regulations abandoned a previous policy allowing DUs and their retail supply units from competing for large consumers in the contestable market. As a result, the regulations limited choices of large power consumers from the list of retail suppliers deemed qualified by the ERC. The petition also protests the deadline imposed on these big power consumers to enter into new power-supply contracts at no later than February 26, 2017, or be slapped with the penalty of disconnection, or the payment of a hefty 10-percent premium on their contract price or the Wholesale Electricity Spot Market price, whichever is higher. The petitioners warned that the regulations could lead to an increase in the cost of their power requirements that could translate to an increase in the prices of goods and services that are detrimental to the national economy.


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Editor: Dionisio L. Pelayo • Wednesday, February 22, 2017 A3

Deadlock seen in death-penalty bill vote

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By Butch Fernandez

@butchfBM

ENATE President Aquilino L. Pimentel III on Tuesday predicted a possible deadlock between 24 senators when the bill reviving death penalty for heinous crimes is put to a plenary vote.

Pimentel confirmed over the weekend seeing a split vote over the reimposition of the death penalty earlier endorsed for enactment into law by the Duterte administration. “I can see that the vote is divided,” he said, noting that “at the rate things are going, it could be 10-14 vote, either way—for or against the revival [of the death penalty].” Pimentel added, “it can even go 12-12”, a split down the middle of the 24-member chamber. “Puwede pa nga

maging 12-12 iyan.” The Senate President acknowledged that death penalty had always been “a very divisive issue”. “I was originally against it—but not based on religion, but as a matter of policy,” Pimentel said, but added: “Now, I’m open to it...to send a signal to criminals that these are the penalties that await you; that you could get even a death sentence.” He clarifies, however, that the bill pending in the Senate is death penalty for “heinous crime” without the lengthy list that is in the House

version of the counterpart bill. “In the House, they are expanding their list; in the Senate, we’re limiting it,” Pimentel said, “because many senators are against death penalty.” T his developed as senators shrugged off veiled threats they could lose committee chairmanships if they vote against the reimposition of the death penalty that is being pushed by the Duterte administration. “If so, then so be it,” said Sen. Francis P. Pangilinan.

Senate Majority Leader Vicente C. Sotto III, in a separate interview, also ruled out the possibility that prolife senators could be stripped of committee chairmanship for opposing death-penalty revival. Sotto believes a committee revamp is not likely to ensue even if the death-penalty bill comes to a showdown vote for or against the measure reviving capital punishment. He says a revamp can not be carried out “in an evenly divided house”.

Mexican experts echo local group’s plea vs military role in antidrugs campaign By Marvyn N. Benaning Correspondent

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HE appeal of the humanr ights watchdog K arapatan for President Duterte to end the bloody antidrugs war and stop using the military in the campaign has found merit among Mexican experts. As early as August 2016, Karapatan Secretary-General Cristina Palabay asked President Duterte to end the killings, since the very same elements

suspected of committing extrajudicial killings during the past two administrations have apparently been clothed with blanket authority to kill. “The killings are either done as punishment in the name of Duterte’s campaign against drugs or are perpetrated to silence those who might turn witness and expose details of the illegal-drugs manufacture and trade. Either way, the drug-related killings in poor communities have become too rampant,” Palabay said. “Enlisting the Armed Forces in

the antidrugs campaign is even more alarming, given its propensity to use the campaign for counterinsurgency purposes. The use of the military, vigilante groups and armed formations in so-called wars against drugs is a concept that has been peddled by the US government in countries such as Mexico and Colombia through the Merida Initiative,” she ad Writing for InSightCrime, a web site that focuses on public-security issues in Latin America, on February 15 Deborah Bonello said Mexico’s 10-

year antidrug war, that has resulted in 100,000 deaths, showed which a myriad of human-rights abuses and an overall increase in violence happened when the military was tapped to eradicate drug traffic and eliminate crime gangs. “After a decade of a militarized drug war, there is still no adequate public data or evaluation of the military’s role in the campaign against organized crime. Neither is there solid evidence available to explain why the Federal Police and the gendarmerie, a

new militarized police force created by President Enrique Peña Nieto, are insufficient tools for fighting organized crime without support from the armed forces,” Bonello said. From the beginning, there was never any justification for dispatching the country’s military in the drug war. When then-President Felipe Calderón took power at the end of 2006, after a controversial election, the nation was enjoying “historic lows” in homicides. One of Calderón’s first actions in office was to send thousands of soldiers to his

home state of Michoacán, which remains one of the most violent in the country. “It was after the start of the permanent operations of the military that a real epidemic of violence occurred at a national level, rising to 27,000 homicides in 2011,” Bonello said, quoting the report prepared by the Belisario Dominguez Institute. “Between 2007 and 2011 the level of homicides tripled [from 9,000 to 27,000], and the homicide rate went from 8.1 to 23.7 homicides per 100,000.”


Economy

A4 Wednesday, February 22, 2017 • Editors: Vittorio V. Vitug and Max V. de Leon

Cargo handler supports Sasa Port modernization

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AVAO CIT Y—A homegrown cargo-handling firm is throwing its all-out support to the proposed modernization of Sasa Port to address the growing demand of cargo ships docking at Davao’s main port. Harry Lopez-Chua of Filipinas Port Services (Filport) said modernizing the Sasa Port would improve services and result in faster turnaround, while an additional space would accommodate some new equipment. He said currently, the port handling remains traditional using only short cranes. If there is improvement in cargo handling, it is private-initiated to improve their service and cope with competition. Lopez-Chua said the modernization of the Sasa Port is needed given the increasing volume of cargoes unloaded here. He told reporters during Monday’s Kapehan sa Dabaw at SM Davao that the city is also booming. In fact, he noted the growing volume of construction materials, particularly cement and billets (raw material for steel), being unloaded at the port. Compared to previous years, Lopez-Chua said the frequency of ships unloading construction materials is sometimes averaging three from two, with total volume of cargoes at 18,000 metric tons. The ISO-certified Filport, which has been operating as cargo-han-

dling group for 40 years now in Davao City, is seeing how demands are growing. The Sasa Port modernization project, which was supposed to be undertaken under the public-private partnership (PPP) scheme, has been put on hold after stakeholders, and the city government questioned its project amount, from P4.5 billion to P19 billion. Last year the Department of Transportation (DOTr) conducted a review of the project on the costfinancing scheme and the period of implementation. A modernized Sasa port would improve trade access to Mindanao and the Philippines by providing a dedicated containerized port; support the growing agroindustrial sector; assist in creating an enabling environment and model for private- sector participation in port infrastructure through the development of a financially sound PPP scheme; and boost economic activities in the region and Mindanao. Lopez-Chua was hopeful the modernization of Sasa pushes through. The port is accessible for the majority of shipping lines and exporters/importers. He said that, despite the development of the Davao International Container Terminal in Panabo that offers a modernized cargo-handling services and bigger space, Sasa Port remains the major port of call for most cargo ships. PNA

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PCC: ₧1-B M&A threshold stays

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he Philippine Competition Commission (PCC) has released a policy statement outlining its view that there is no pressing need to raise the P1-billion threshold for reviewing merger and acquisition (M&A) deals in the country.

“ T he commission initiated a preliminary review of all relevant data, and finds that there is a sound basis to maintain the P1-billion threshold, at least for now,” PCC Chairman Arsenio M. Balisacan said in a news statement released on Tuesday. Under Republic Act 10667, or the Philippine Competition Act, the antitrust regulator should be notified for M&A deals whose transaction values are above P1 billion before the transaction is consummated. The PCC conducted the review to find out whether the P1-billion

threshold is too low. A low threshold could mean additional delays for companies engaged in M&A transactions while, at the same time, over-burdening the one-year-old competition agency. The commission said the P1billion minimum is reasonable as a cross-country comparison with other jurisdictions with mandatory notification requirements, adding the country’s threshold is similar to economies of comparable size, such as Colombia and South Africa. Moreover, over the past year of operation, there has been no backlog

in the PCC’s merger-review docket. Based on the assets of companies in the Philippines, less than 1 percent, or at most 1,5000 firms, would be subject to the current threshold if they decide to expand their businesses through M&A. Transaction value refers to the companies’ total assets located in the Philippines or the revenues that are earned from the country. The PCC will conduct regular monitoring of the M&A notifications and will revisit the threshold level periodically to make sure it is

responsive to changes in the markets and the economy. “The commission will continue to monitor developments in the country’s markets and consider additional information from forthcoming notifications,” Balisacan said. “The PCC’s review of the threshold could consider factors such as inflation, GDP growth and changes in technology consistent with the practices in other jurisdictions. Ultimately, in determining the threshold, the PCC will consider what is best for the country.”

The PCC’s review of the threshold could consider factors, such as inflation, GDP growth and changes in technology, consistent with the practices in other jurisdictions. Ultimately, in determining the threshold, the PCC will consider what is best for the country.”—Balisacan

briefs m.i.c.c. eyes 3-month review of phl mining operation

The multistakeholder team of the Mining Industry Coordinating Council (MICC) has proposed a three-month review of the operations of 23 mining firms ordered closed by the Department of Environment and Natural Resources (DENR). Finance Undersecretary Bayani Agabin said members of the team, which had their first meeting on Monday, had agreed on the “composition, scope and process by which we will undertake the review”. ”No programs [yet but] essentially the matter by which we will undertake the review,” he told members of the media after the review team’s meeting that finished on Monday night. Agabin, the Department of Finance’s (DOF) Legal Affairs head and in charge of the Domestic Finance Group (DFG), said they planned to start the review by March, but the team must first get the approval of the MICC on administrative issues, as well as on the budget. “We will certainly try to start as soon as we can,” he said. Agabin said the team planned to get experts from academe, but decided to exclude those from mining companies, as part of the review team. He, however, declined to give names as they have yet to talk to these people. He said the study will be “done in a scientific manner” and will take into account the “technical, economic and social aspects of the mining operations”. He said any decision on mine site visits would depend on the review team. Results of the fact-finding measure would be submitted to MICC and recommendatory in line with Executive Order 79, which established MICC, he said. Rea Cu with PNA

vessel-monitoring device now mandatory at taÑon strait

The Tañon Strait Protected Area Management Board (PAMB) executive committee has approved the resolution for the mandatory installation of vessel-monitoring devices for all commercial fishing vessels sailing within the protected seascape. Ocean-conservation advocacy group Oceana Philippines lauded the move, saying it will boost the protection and conservation of one of the country’s largest marine-protected areas. “We laud the move to require vessel monitoring for all commercial fishing vessels along Tañon Strait. It is an effective tool to deter and stop illegal fishing, and its implementation is a momentous step in protecting our diverse, yet fragile, municipal waters and protected areas,” lawyer Gloria Estenzo Ramos, vice president for Oceana Philippines, said in a news statement issued on Tuesday. In a resolution approved as a policy on January 31, the executive committee of the Tañon Strait Protected Seascape required the installation of vessel-monitoring technology for all commercial fishing vessels that dock and transit within the protected seascape. “Due to the large size of the protected area, there is a need for mechanisms, such as vessel-monitoring, to ensure that the management plan and enforcement plan are effectively carried out and restore ecological integrity in Tañon Strait,” the resolution said. Jonathan L. Mayuga

‘rogue’ ncrpo cops reach basilan

The Philippine National Police (PNP) will slap additional charges against “rogue” members of the National Capital Region Police Office (NCRPO), as only 53 of them out of the 387 showed up on Tuesday for their deployment to Basilan. PNP Spokesman Senior Supt. Dionardo Carlos said the 53 showed up at Villamor Air Base and boarded an Air Force C-130 cargo plane bound for Zamboanga City. “They arrived in Zamboanga City onboard C-130 plane around 9 a.m., then to Basilan [aboard] MPAC [multipurpose assault craft] of the Philippine Navy,” Carlos said. Carlos added those who failed to take the flight will be facing additional charges. “They will have additional administrative cases—those who did not show up, AWOL [absent without official leave] and insubordination/defiance to a lawful order from the PNP chief,” he said. Rene Acosta

Beach lovers Local and foreign tourists relax under the sunny shorelines of the world-famous Boracay Island on Monday. PNA/Avito C. Dalan

Group to SC: Outlaw online cockfight betting in OTBs By Joel R. san Juan

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@jrsanjuan1573

NON-GOVERNMENTAL organization has filed a petition before the Supreme Court (SC), seeking to order the Philippine Racing Commission (Philracom) to direct all off-track betting (OTB) stations to cease and desist from allowing the betting of online cockfighting, or sabong, in its premises. In a 19-page petition for mandamus, the Liga ng Eksplosibong Pagbabago Inc. (Lepi) claimed that the government is losing P350 million in tax revenues from the illegal scheme every year. Thus, the group also asked the Court to direct the Philracom to collect from those responsible the supposed revenue share of the government that was lost because of online cockfighting and to immediately remit the same to the National Treasury. “We are asking the SC to immediately compel Philracom to perform its mandate, that is to protect our horseracing industry—which has been a lucrative source of amusement-tax revenue—by putting a stop to the illegal operation of online sabong in the OTBs,” Dr. Gilda Peralta, Lepi secetary-general, said in the petition. “The government is losing revenues, because there is no clear mechanism to

tax online sabong, and it has been eating into the revenues of horseracing, since racing aficionados end up betting in sabong, instead of horseracing, when these two games are held simultaneously in the OTBs,” Peralta said. She added that, as a regulatory body, Philracom has all the powers to stop online cockfighting in the OTBs, but the agency has not done anything despite its oft-repeated statement of protecting and regulating all matters pertaining to horseracing. “We have no other recourse but to go to the Supreme Court, because there is much confusion as to the legality of online sabong and the government stands to lose more, as horseracing revenues go down, along with the 25 percent in amusement taxes from horseracing, as a result of the proliferation of online sabong in the OTBs,” Peralta pointed out. According to the group, about 90 percent of horseracing revenues are derived from the OTBs, hence the severe impact of allowing online sabong in these betting outlets, which are supposedly exclusive for horseracing. Based on the petition, there is nothing in the mandate of Philracom under Presidential Decree 420 that allows online gambling—such as online sabong—to be conducted in OTB stations.

Cusi eyes malls as charging areas for electric vehicles

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alls and other establishments are being considered as charging areas for electric vehicles (e-vehicles), the Department of Energy (DOE) said on Tuesday. “The Technical Team must make recommendations on the advancement of e-vehicle charging stations and related infrastructure, such as other viable options for locations like malls and other establishments,” Energy Secretary Alfonso G. Cusi said. An Ad-Hoc Technical Working Group (TWG) was created to study the technical viability of the e-vehicle charging stations, evaluate its safe operations by assessing the necessary protocols and standards, and to determine required policies and supporting legal basis. The TWG is cochaired by the DOE-Energy Utilization Management Bureau and the DOE-Oil Industry Management Bureau. Cusi said the TWG was created to determine the suitability of gasoline stations as charging areas for e-vehicles with the emergence of the e-vehicle industry in the Philippines. He stressed that safety and accessibility are also major considerations on where to put up e-vehicle charging stations. The DOE is in the process of drafting a circular for the policy guidelines in the overall development and increased utilization of alternative fuels and energy technologies, which include the e-vehicle industry. “I have to stress that this venture should be in compliance with existing environmental, safety and other relevant rules and regulations,” he added. “Apart from increasing public awareness, the DOE, in coordination with relevant government agencies, will create an environment for the equitable and nondiscriminatory access for alternative fuels and energy technologies with preference for indigenous ones,” Cusi said. Lenie Lectura


The Regions BusinessMirror

news@businessmirror.com.ph

Editor: Efleda P. Campos • Wednesday, February 22, 2017

DA keen on ridding pest preventing sale of Palawan mangoes outside province

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By Jasper Emmanuel Y. Arcalas @jearcalas

HE Department of Agriculture (DA) said it will do its best to eliminate a pest that has prevented Palawan from exporting its locally grown mangoes for three decades now.

“ T he DA w i l l prov ide t he prov i nce a n i r rad i at ion m achine that will detect and kill weevils in infected mangoes,” Agriculture Secretary Emmanuel F. Pinol said in a statement on Tuesday. Since the detection of mangopulp weevil (MPW) in 1987, Palawan has not been allowed to trade locally produced mangoes outside the province in order to prevent the spread of the pest in other mango-producing areas. “The mango pulp weevil Sternochetus frigicus is hereby declared as an injurious and dangerous pest of mangoes,” said former Agriculture Secretary and now Finance Secretary Carlos G. Dominguez III in the Bureau of Plant Industry (BPI) Special Quarantine Administrative Order 20, Series of 1987. Pinol said the mango growers in the province should organize themselves and implement good agricultural practices in mango production to help contain or eliminate the spread of MPW in Palawan. He said the DA will provide Palawan-based mango growers with drying facilities and mango-processing equipment to allow them to produce world-class processed mango products. “We will design a machine capable of processing dried mangoes and mango purée until the canning stage so that it would be ready for the market. With this, you will no longer export fresh mangoes,” he said. A study conducted by the Philippine Nuclear Research Institute

of the Department of Science Technology and the DA Regional Office 4B proved irradiation treatment is effective in eliminating MPW. Currently, mango growers apply vapor-heat treatment for mangoes bound for export. The process is not effective against MPW. In Febr uar y 2013 t he US, through the Animal and Plant Health Inspection Service, declared the Philippines as a freedom area for mango pulp and s e e d we e v i l ( M S W ), e x ce pt for Palawan. The declaration allowed Philippine mangoes sourced from any province, except from Palawan, to enter the US mainland market. Before the Philippines was declared MSW-and MPW-free by the US Department of Agriculture, the BPI conducted a nationwide low-monitoring survey for MPW and MSW in different areas in Luzon, the Visayas and Mindanao. The survey was done in 15 regions and 50 mango-growing provinces. Six regions and 20 provinces were surveyed in Luzon; three regions and 10 provinces in the Visayas; and six regions and 20 provinces in Mindanao. Last year Manila and Canberra signed an amended Specific Commodity Understandi ng for Au st ra l i a’s i mpor t ation of fresh mangoes from the Philippines. The signing formalized Australia’s recognition of the areafreedom status of the Philippines from MSW and MPW, except for the island of Palawan.

SEA URCHINS

Sotero Bragado, a fisherman of Barangay San Roque in Sabangan, Ilocos Sur, shows off big cultured sea urchins he sells for P80 a kilo. The seaside barangay is one of several places along the Ilocos region that breed the sea urchin for food. MAU VICTA

Central Luzon MSMEs earned ₧94.4M from trade fairs in 2016 By Ashley Manabat Correspondent

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ITY OF SAN FERNANDO— Micro, small and medium enterprises (MSMEs) doing business in Central Luzon earned a total of P94.4 million from their earnings from participation in 120 local and international trade fairs in 2016. The Central Luzon regional office of the Department of Trade and Industry (DTI 3) said the figure was made by 1,587 MSMEs operating in Central Luzon. The DTI 3 report showed 497 MSMEs from Pampanga had the

4 cops killed, 3 hurt in Kalinga shootout By Rene Acosta

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@reneacostaBM

OUR policemen were killed, while three others were wounded on Tuesday in a shootout with a wanted suspect whom they were supposed to arrest in Kalinga. Senior Supt. Brent Madjaco, director of the Kalinga Provincial Police Office, identified the dead policemen as PO3 Cruzaldo Lawagan, PO2 Juvenal Aguinaldo, PO1 Charles Ryan Compas and PO1 Vincent Tay-od. He also identified the wounded as Senior Insp. Edward Liclic, PO1 Ferdinand Asuncion and PO1 Ferdie Diwag, who are now being treated at the Kalinga Provincial Hospital. The suspect, identified as Willy Sagasag, who had been listed by the Philippine National Police as the country’s most wanted person, escaped. Madjaco said members of the K alinga Provincial Police Office, the Provincial Public Safety Company and the Regional Public Safety Battalion were supposed to serve a warrant of arrest against Sagasag. However, the suspect, who is being sought for murder and other criminal charges, engaged the

policemen in a shootout at around 7:30 a.m. in Lubuagan, Kalinga. Aside from his murder cases, Sagasag was also tagged as the leader of a robbery group behind the ambush of Kalinga policemen in 2002, where three policemen were killed. The suspect carries a reward of P600,000 for his arrest.

Sagasag was arrested in April 1998, but escaped. Kalinga policemen rearrested him in 2001, but he again escaped while being transported to the Cagayan provincial jail. His men reportedly ambushed the vehicle taking him to Cagayan, killing two jail guards.

C.A.M.P. INDUCTION Capt. Jimmy C. Vistar (center) takes his oath of office as

director of the Cebu Association of Media Practitioners Inc. (CAMP Inc.) before BusinessMirror Editor in Chief Jun Vallecera (second from right). Present during the induction are (from left) BusinessMirror columnist Johnny Dayang, former ANAD Party-list Rep. Jun Alcover and CAMP President Emeritus Greg S. Senining. Also in attendance are (back row, left) Boie Cagalitan, past CAMP President; and Max Andrino, CAMP VP for TV. PHOTO COURTESY OF KIM ROSE NADAL

most trade-fair exhibitors, earning a total of P38.34 million, followed by Bulacan, with 280 sellers earning P20.49 million; and Bataan, with 242 sellers earning P5.23 million. Nueva Ecija had 197 participants, earning a total of P20.18 million; Aurora had 151 sellers, earning P4.95 million; Tarlac had 146 participants, earning P4.02 million; and Zambales with 74 trade-fair attendees, earning P1.19 million. “More than 100 of our MSMEs earned around P32.55 million during the Likha ng Central Luzon held on October 10 to 13, 2016, at Glorietta in Makati City,” DTI Regional Director Judith Angeles said.

The 28 Central Luzon MSMEs that participated during the National Trade Fair held from December 7 to 11, 2016, at SM Megamall earned P7.02 illion, while the 32 MSMEs that joined the Manila FAME held from April 21 to 24 and October 20 to 22, 2016, at the World Trade Center and SMX Convention Center, respectively, had a combined sales of P7.4 million. “Eight MSMEs from Bulacan participated in the 2016 Philippine Festival Trade Fair in Hibiya Park in Tokyo, Japan, on June 18 and 19. The delegation was able to develop market linkages with the business community there,” Angeles said.

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Ex-solon prods govt to act now on ₧2.9-B Clark airport funds

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LARK FREEPORT—The P2.9 billion meant to expand the Clark International Airport will be reverted to the general funds by year-end if it is not be spent. Former Pampanga Rep. Joseller M. Guiao aired this warning, saying if the money is returned to the government’s general funds, the expansion of Clark airport will be delayed by another five years. “Nobody is championing Clark right now, although I have confidence Arthur Tugade—since he came from here and is now the head of the Department of Transportation—dapat sana he should be following it up or pushing for it,” Guiao told members of the Capampangan in Media Inc. (Cami) during the Balitaan media forum organized by the group, in cooperation with the Clark Development Corp. (CDC), at the Bale Balita here last Friday. Guiao was referring to Transportation Secretary Arthur P. Tugade, who was the previous CDC president and CEO under the Aquino administration. “The news that came to us is Clark airport may be undertaken by PPP [public-private [artnership]. That seems to be their plan,” he said. “But there is a big problem with PPP. It is complicated, and PPP projects always take a longer period.” “So now if you do a PPP and there are no investors and no takers, you lose the P2.9 billion, and then there is also no PPP project,” he said. “My concern is we went through a difficult process to look for the funds.” Guiao recalled that in 2015, “we were able to appropriate P800 million for Clark airport, and that is for the detailed engineering studies and the ground works.” He said the funds appropriated for the 2016 include the P2.1 billion for the start of the structure itself. So there is a total available fund now of almost P3 billion, but the problem now is that the budget was appropriated in the 2015 General Appropriations Act and it has a lifetime of only two years. So if you do not spend that by the end of this year, it will revert to the general funds.” “Our problem is there seems to be no urgency, I am not aware of steps being taken to spend the P800 million. That means if those funds will not be used by December or they won’t be obligated, we will lose it all,” he said. Ashley Manabat

Ceza marks 22nd founding anniversary

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HE Cagayan Economic Zone Authority (Ceza), operator of the 54,000-hectare Cagayan Special Economic Zone and Freeport (CSEZP), is celebrating its 22nd founding anniversary this month with various humanitarian activities meant to uplift the people of hometown Santa Ana, Cagayan. Ceza Administrator and CEO Jose Mari B. Ponce said to make the celebration meaningful, the agency—created in 1995 under Republic Act 7922—will spearhead medical, dental and bloodletting missions in Santa Ana. “Ceza intends to make this occasion not only about remembering the past, celebrating its birth, but more important, about shaping the future that every individual may benefit and may contribute more for the progress of Santa Ana and Cagayan Valley region, as well,” Ponce said. He said the community programs this February included the distribution of various construction materials, such as nails and GI sheets, to various towns in Cagayan that were affected by Typhoon Lawin. Lawin hit Cagayan Valley in October 2016, causing damage to infrastructure and homes. In response, Ceza star ted a community-outreach program that seeks to provide assistance to the victims of the typhoon in Cagayan. Ceza has led relief operations around the province and donated

relief items to the local government units (LGUs). To monitor the progress of rehabilitation efforts, Ceza visited different towns, such as Tuao, Amulung, Alcala, Enrile, Baggao, Aparri, Santa Teresita and Gonzaga from February 13 to 17. The agency also distributed GI sheets and nails, which was made possible through the sponsorship of First Cagayan Leisure and Resort Corp. Ceza officials and employees, as well as locators in CSEZP, attended a thanksgiving Mass on February 18 to formally commemorate the 22nd year of the agency and the free port, which now plays a vital role in economic development of Region 2. Ceza, in partnership with the Philippine National Red Cross Region 2 Chapter, also held the annual bloodletting activity at Ceza Complex, where 100 donors donated blood on February 18. Blood donors included officers and staff of Ceza, Bureau of Fire Protection, Philippine National Police Santa Ana, volunteers from Ceza locators, barangay officers of LGUs in Santa Ana and members of the community. Another yearly activity that benefited the people of Santa Ana was the medical and dental mission on February 18, where medical practitioners from the Bureau of Fire Protection and other private practitioners invited by Ceza conducted medical checkup on 350 beneficia-

ries and provided them with free medicines. Ceza and CSEZP are now the big gest employers i n C agaya n Valley region. As a governmentowned and -controlled corporation (GOCC), Ceza remitted to the National Treasury more than P234 million, representing 60 percent of its 2015 income. This is on top of the 30-percent corporate income tax it paid to the Bureau of Internal Revenue (BIR) and the taxes paid by Ceza locators and other income generated by other government agencies through Ceza-related operations. Ceza was ranked as the 16th GOCC with the highest dividends share, out of 54 GOCCs that remitted to the National Treasury in 2016. This means that Ceza has been operating on profit over the past several years, on top of being an economic growth nexus in northeastern Luzon. It was also listed at 285th among the 500 largest nonindividual taxpayers of the country by the BIR based on taxable year 2014. Ceza manages and develops the CSEZP, which covers the entire town of Santa Ana in Cagayan province, as well as the islands of Fuga, Barit and Mabbag in the town of Aparri. CSEZP is rising as a major transshipment hub, an agroindustrial growth center, and a tourism and ecotourism haven in northeastern Philippines.


ARCHITECT’S perspective of Shanata central promenade

WHEN URBAN LIVING IS LIKE

VACATIONING AT HOME EVERY DAY

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By Leony Garcia

S finding peace at the center of the city possible? The hardworking urbanites also dream of living peacefully, as they enjoy the fruits of their labor and save up for the future. If you are among these urban dwellers, you don’t have to look far in search of the ideal community, as tranquility and order are just within your reach. Suntrust “Shanata” (which is a Sanskrit word for “peaceful” or “serene”) is strategically located along Quirino Hi-way in Novaliches and will connect you conveniently to almost everything that matters, but will also give you more opportunities to slow down and unwind. Suntrust Shanata is a 12-cluster condominium community that is just ten minutes drive away from the North Luzon Expressway (NLEX), making accessibility one of its topmost advantages. It is also close to numerous places of interest such as shopping malls, private and government offices, and topnotch schools and universities Each Shanata cluster offers only 16-18 units per floor which maximizes space as well as allow residents to move around conveniently in the common areas. With the highest cluster at only 12-storeys high, this is truly a benchmark for a low-density condominium investment. There is also a vast array of leisure amenities available to residents in Shanata which makes it so much like vacationing at home everyday!

Charming community with a Modern Asian theme

SUNTRUST Shanata is a charming community developed by Suntrust Properties, Inc., a wholly owned subsidiary of property giant Megaworld Corporation. This 12-cluster residential development features a modern Asian theme, with approximately 1,700 units, ranging from studio to three-bedroom units with a floor area of 26.7 to 52.8 square meters. As a low-density condominium building, the typical unit features also include ceramic floor tiles, custom-built under-counter kitchen cabinets, mechanical ventilation for the kitchen, toilet and bath, individual electric and water sub-meters, single-point water heater, and provisions for telephone line and CATV. For safety, convenience, and leisure, Suntrust Shanata also provides resort-like amenities that include a lap pool, kiddie pool, paved sunbathing deck, clubhouse, basketball court, fitness gym, children’s playground, water station, function rooms, and a day care center. Aside from the NLEX, Suntrust Shanata is also accessible to places of interest such as malls and supermarkets (SM North Edsa/The Block, Trinoma, Waltermart, Munoz and Balintawak markets), busi-

RENDERING of the clubhouse and amenities area

ARTIST’S illustration of Shanata interior

ness center/attractions (UP-Ayala Technohub, La Mesa Eco-Park, Quezon Memorial Circle, Parks and Wildlife, Veterans Memorial Golf Course), churches (Iglesia ni Cristo Central Church and Baesa branch, St. Peter’s Parish Our Lady of Hope Parish, and UP-Diliman chapel), schools (St. James College of Quezon City, Our Lady of Lourdes School of Novaliches, AMA University, FEU – NRMF, NCBA, St. Lukes School of Novaliches, Sacred Heart Academy of Novaliches, Dr. Carlos S. Lanting College), and hospitals (FEU – NRMF Hospital, Veterans Memorial

Medical Center, Lanting Medical Hospital and Casaul General Hospital).

The Suntrust Brand

SUNTRUST Shanata is developed by Suntrust Properties, Inc., a whollyowned subsidiary of Megaworld Corporation. From the time of its incorporation it has led the way in providing master-planned communities in strategic locations to the Filipino market, in the areas of Cavite, Laguna and Batangas. Suntrust has also made a name in the development of condominium communities with projects in Metro Manila, Quezon City, Pasig, and Mandaluyong, and as far as Baguio City and Davao City.


AseanWednesday

A8 Wednesday, February 22, 2017 • Editor: Max V. de Leon

BusinessMirror

news@businessmirror.com.ph

Singapore eyes Asean’s first carbon tax by 2019

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ingapore plans to implement Southeast Asia’s first carbon tax by 2019, a move that would raise energy costs in the island-nation and require more than 30 big polluters, such as power plants, to pay the levy.

The proposal would charge between S$10 ($7) and S$20 a ton on emissions of carbon dioxide and five other greenhouse gases, Finance Minister Heng Swee Keat said in a speech outlining the government’s 2017 budget. The ta x is equivalent to a $3.50-to-$7-a-barrel increase in the cost of oil. It would raise electricity costs by 2 percent to 4 percent, according to a government report released after Heng’s speech. “The most economically efficient and fair way to reduce greenhousegas emissions is to set a carbon tax, so that emitters will take the necessary actions,” Heng said. “Singapore is vulnerable to rises in sea level due to climate change. Together with the international community, we have to play our part to protect our living environment.” The revenue from the tax would help fund industry measures to reduce emissions, Heng said. The government has been consulting with industry leaders and plans to begin public meetings on the tax in March

before deciding on a final tax and implementation schedule. The government also hopes the move spurs job creation in clean energy. Singapore would be the first Southeast Asian nation to put a price on carbon. Japan has a national carbon tax along with some regional emissions trading markets, and South Korea and New Zealand have national emissions trading. China has several regional trading markets and is planning to launch the world’s largest national carbon market this year.

‘More aggressive’

“Singapore looks to be taking a more aggressive course of action on reducing its greenhouse-gas footprint than it agreed at the Paris climate talks,” Chris Graham, Wood Mackenzie Ltd. vice president for energy research, said by phone from Singapore. “These signal concrete plans to put a price on cleaner air.” The biggest impacts would be felt on power generators and heavy

industrial users, such as oil refineries, he said. Singapore uses natural gas, the cleanest burning fossil fuel, for the vast majority of its power generation. The tax may spur some investment in renewable energy, although Singapore doesn’t have much land for such developments, and increased energy efficiency by end-users, Graham said. The government will have to work with industrial users to make sure the tax doesn’t raise the cost of business to a level that makes them unable to compete with similar firms in the region that don’t have to pay for emissions, Graham said. Royal Dutch Shell Plc., which operates one of three oil refineries in Singapore, said it supported in general government-led efforts to price carbon emissions, and would evaluate this particular proposal’s impact on its operations as more details emerge. “ We wou ld emphasize the

critical importance of a policy design which addresses strong economic growth and the competitiveness of Singapore companies in the international market place,” a Shell Singapore spokesman said in an emailed statement. “It must ensure companies can compete effectively with others in the region who are not subject to the same levels of CO2 [carbon dioxide] costs.” Exxon Mobil Corp., which operates another oil refinery in Singapore, said it’s committed to working with the Singapore government to balance the risks of greenhouse-gas emissions with the need to maintain a strong economy. “A uniform price of carbon applied consistently across the economy is a sensible approach to emissions reduction,” company spokesman Aaron Stryk said in an e-mailed statement.

Tax measures

Singapore’s government is also

The most economically efficient and fair way to reduce greenhouse-gas emissions is to set a carbon tax, so that emitters will take the necessary actions. Singapore is vulnerable to rises in sea level due to climate change. Together with the international community, we have to play our part to protect our living environment.”—Heng

studying measures to boost revenue, including higher taxes, to help ease pressure on the budget as spending increases. “Medium-term expenditures will continue to rise significantly, be it for infrastructure or for health-care reasons,” Lawrence Wong, second minister of finance, said in an interview on Tuesday with Bloomberg TV’s Haslinda Amin. “So we are studying revenue. Revenue means taxes.” Finance Minister Heng Swee Keat said in his budget speech on Monday the surplus will narrow to 0.4 percent of GDP in the next fiscal year beginning April 1. Singapore takes a fiscally conservative approach as the government is mandated to run a balanced budget over its term in office.

Wong, 44, also serves as minister for national development. He was appointed to the finance post last August to assist Heng, who had a stroke three months previously. Heng delivered a set of targeted measures in the budget to support the trade-dependent economy, including support for the struggling oil-services industry and tax rebates and grants to spur consumer demand. The oil and gas industry is “going through a down cycle and we have some specific cyclical measures to support them,” Wong said. “But as in most industries there will up and downs and through this down cycle some of the weaker companies may have to fold and be restructured. But I’m sure at some point in time they go up again.” Bloomberg News

Malaysia: Investigation on Kim’s death impartial

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he investigation into the death of the exiled half-brother of North Korea’s ruler is being conducted in an impartial manner, Malaysia’s ambassador to Pyongyang said on Tuesday, rejecting accusations from the North that the probe was politically tinged. Mohamad Nizan Mohamad spoke in China’s capital, Beijing, while in transit to Malaysia to where he had been recalled following the death last week in the Southeast Asian nation of Kim Jong Nam. Kim appeared to have been poisoned at Kuala Lumpur’s international airport and police have so far arrested four people carrying identity documents from North Korea, Malaysia, Indonesia and Vietnam. Those arrested include two women who were allegedly

seen approaching Kim on February 13, as he stood at a ticketing kiosk at the budget terminal of the Kuala Lumpur airport. North Korea’s ambassador to Malaysia on Monday denounced the country’s investigation into Kim’s death, calling it politically motivated and demanding a joint probe. Malaysia’s foreign ministry responded that the ambassador’s comments were“culled from delusions, lies and half-truths”. Malaysian Ambassador Mohamad said the country’s investigators were proceeding in a professional manner and would “be very objective and fair to everybody”. “I think the investigation is still ongoing, so just wait and see for that. And we can assure you of the impartiality of the investigation itself because there is no

reason for us to be sided with anybody,” Mohamad said. The attack took on added political dimensions when Malaysia refused demands by North Korean diplomats to turn over Kim’s body and proceeded with at least one autopsy over the diplomats’ objections. North Korean ambassador to Malaysia Kang Chol told reporters on Monday that Malaysia was working in collusion with South Korea as Seoul tries to deflect attention from its own months-long political crisis. The police “pinned the suspicion on us, and targeted the investigation against us,” Kang said. Kang referred to the dead man as “Kim Chol,” the name on the passport found with Kim Jong Nam. AP

Cambodian lawmakers approve law threatening opposition party

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ambodia’s legislature amended a law governing political parties on Monday to allow the government to apply to the courts to have a party dissolved, an act aimed at the sole opposition group in parliament. The opposition Cambodia National Rescue Party boycotted Monday’s 90-minute debate on the legislation and subsequent vote, in which all 66 lawmakers from the ruling Cambodian People’s Party who were present voted in favor. The amendments now need approval from the ruling party-controlled Senate, a simple formality. Long-serving Prime Minister Hun Sen suggested the amendments earlier this month, in what is seen as an attempt to shore up his party’s strength ahead of local elections this year and a general election in 2018. The opposition staged an unexpectedly strong challenge in 2013’s general election. The new provisions allow the Supreme Court to dissolve parties whose leaders have criminal convictions, and bar the leaders from political activities for five years. Critics charge that Cambodia’s courts are under the political influence of the ruling party. In addition, the Interior Ministry will be allowed to suspend parties whose activities incite national disintegration, a catch-all clause similar to those in other laws that are used against

CambodiaN Prime Minister Hun Sen (left) registers before a meeting at National Assembly in Phnom Penh, Cambodia, on Monday. AP the government’s critics. “The passage of these amendments marks the final consolidation of absolute power in the hands of Prime Minister Hun Sen and the ruling Cambodian People’s Party,” said Phil Robertson, deputy Asia director of New York-based Human Rights Watch. “Hun Sen’s election strategy is clear: bulldoze what’s left of Cambodia’s democratic institutions by using laws like this one, while simultaneously intimidating civil society into silence with arbitrary arrests of human rights defenders and threats to de-register troublesome NGOs,” Robertson said. The Cambodia National Rescue Party,

in a statement issued before the debate, said the changes violate the principles of liberal and multiparty democracy. “The proposal of the amendments was done too quickly and with the aim of intimidating and destroying the rival party,” it said. There were political consequences even before the amendment was passed, with longtime opposition leader Sam Rainsy, who has been in self-imposed exile since late 2015, resigning from the Cambodia National Rescue Party because he was convicted in a defamation case and has several other cases pending. AP


ExportUnlimited BusinessMirror

Asean high-level task force discusses priority measures toward AEC 2025

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HE 31st meeting of the HighLevel Task Force on Asean Economic Integration (HLTFEI) convened on February 16 to discuss and recommend mechanisms that will support and strengthen the implementation of the AEC Blueprint 2025 toward greater regional cohesion and integration. matters to ensure that the benefits of integration are fully realized and shared by everyone in Asean. Strengthening compliance and monitoring our AEC commitments, and finding ways to deepen engagement with our stakeholders in designing and implementing regional strategies and initiatives are some of the topics we will focus on during the meeting,” Rodolfo said. In light of the substantial progress of Asean’s economic integration, the AEC Blueprint 2025 requires a stronger undertaking in the presence of wider competition and vast opportunities in goods, services, skilled labor, investments and capital. “Our recommendations will take into account the need to implement both liberalization and

includes the proposal to establish a more effective tool for measuring trade facilitation; launching of a pathfinder initiative by adopting self-certification for MSMEs; leading the way forward on trade in services through a modern Asean Trade in Services Agreement; developing a peer review monitoring mechanism for AEC commitments; creating linkages between MSMEs and MNEs using the inclusive business framework; inclusivity of women and entrepreneurship; adoption of a declaration on innovation; and the launch of the landmark Asean roll-on, roll-off scheme. The Philippines’s agenda fully supports Asean in its Golden Jubilee year with specific actions that promote deeper and meaningful engagement with stakeholders and provide steps toward regional integration and cooperation. The HLTF-EI is composed of Asean’s trade vice ministers from the 10 Asean economies, and functions primarily as an advisory body to the economic ministers of the Asean member-states. Its primary responsibility is to ensure that the 10 Asean economies are on track and on time with the plans and programs intended to realize regional economic integration and achieve the vision of an Asean Economic Community. The 31st HLTF-EI meeting was held on February 15 and 16 in Manila.

By Jose Antonio Buencamino

Commercial Counselor, Philippine Trade and Investment Center-(PTIC)-Brussels &

Jeoffrey Houvenaeghel Trade Assistant, PTIC-Brussels

MARKET DEVELOPMENT UPDATE Part Two

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T is precisely this marked dependence on trade with European Union neighbors—all destined for relatively slow growth in the foreseeable future—that perhaps drives a small trading nation like Belgium (with a population of 11.4 million, Belgium is still smaller than Metro Manila) to look for additional opportunities elsewhere. For sure, Belgium has serious interests in Asean’s largest market, Indonesia; and in the fastest-growing economy in the African continent, Cote d’Ivoire (Ivory Coast). This may explain Belgium’s interest in the Philippines—we are, after all, also a huge market in Asean with a potent purchasing power. With a 7.1-percent GDP growth in the third quarter of 2016, we were the fastest-growing economy in Asia for that quarter. From 2011 to 2015 Belgium’s average trade with the EU accounted for 68 percent of its global trade. A notable trend is that Belgium is substantially exporting more to, rather than importing from, the EU. In 2015 it reached a trade surplus of €44.8 billion with EU. Traditionally, Belgium’s top trading partners have been the Netherlands and Germany. Bilateral trade with Germany, the Netherlands and France has been gradually declining since 2012, while trade with the United Kingdom and Italy has been increasing since 2011.

Trade with Asean

IN 2015 Asean only represented a mere 2 percent of Belgium’s global two-way bilateral trade. Belgium’s top six trading partners in Asean in 2015 were Singapore (€6.8 billion), Thailand (€2.3 billion), Vietnam (€2.1 billion), Indonesia (€1.7 billion), Malaysia (€1.5 billion) and the Philippines (€560 million). Singapore alone accounted for 44.5 percent of Belgium’s total two-way bilateral trade with Asean, while the Philippines accounted for a mere 3.7 percent. For all Asean countries bilateral trade has been rising, except for Brunei Darussalam.

Abandonment, return of cargoes ‘still manageable’ –BOC official By Roderick L. Abad Contributor

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HILE abandoned and returned shipment incidents in the country remain low at present, the Bureau of Customs (BOC) still reiterated the importance of raising awareness on the export and import laws and regulations it implements. The case of abandonment happens when an importer renounces his interest and property rights over his shipments; relinquishes his title to a cargo at the port of destination and then ownership is vested on the government; or transfers his goods or assets to another party in order to file an insurance claim for total loss. BOC Ninoy Aquino International Airport (Naia) Aircraft Operations Division Acting Assistant Chief Amalia B. Apolonio told the BusinessMirror abandoned goods under their management remains minimal at 1 percent. “Abandoned goods pertain to the imported items. Papasok lang sila sa export [category] kapag i-shiship out na kaya talagang napakaminimal [Abandoned goods pertain to the imported items. They will fall under the export category once they are shipped out, which seldom happen],” she said. An imported item will be considered abandoned if returned to the country and remain unclaimed within the 30-day period of its storage in the BOC warehouse. The so-called express abandonment is committed when an importer or his agent signifies his disinterest of claiming it by writing the Customs collector of his intent on or before the one-month time imposed by the agency. “Implied abandonment” is done if the owner, importer or consignee, after due notice, fails to file goods declaration. It also happens if the claimant is yet to file an entry for his corresponding goods, or he already

The Belgians are coming!

PINEAPPLE SECTOR TO CREATE 4,000 MORE JOBS Dole Philippines President and COO David DeLorenzo (fifth from left)

on February 8 discussed the company’s growth and investment plan in the country’s pineapple sector to Trade Secretary Ramon M. Lopez. Dole Philippines forecasted growth production of 1 million tons of pineapples, creating 4,000 additional jobs in this sector in Mindanao by 2019. Such forecast challenges the Department of Trade and Industry (DTI) to further initiatives to help local growers attain greater efficiency to expand market opportunities, including the move to reduce tariff rates in Japan and South Korea under the Philippines-Japan Economic Partnership Agreement and the Asean-Korea Free Trade Agreement. The DTI said the Philippines is in the process of strengthening trade relations with Russia and the European Union as potential importers of tropical fruits. Joining the meeting were DTI undersecretaries Rowel Barba (third from left) and Ceferino Rodolfo (third from right), DTI Assistant Secretary Rafaelita Aldaba (left) and Agnes Perpetua Legaspi (second from left), Dole-Stanfilco General Manager Oscar Garcia (second from right) and Dole Corporate Affairs Director Melquiades Hernandez III (right).

filed an import entry but failed to settle the assessed duties and taxes within the reglamentary period of 15 days from the date of final assessment. Another reason would be the failure to move out the shipment from the BOC within 30 days after payment or accomplishing the first two requirements. Expressly abandoned items shall be deemed the property of the government and will be disposed of through public auction, donation to another state agency or declared for official use of the BOC. Goods subject to sale at public bidding will be sold at a price not less than the landed cost of the goods adjusted for normal depreciation. The proceeds of the sale of abandoned items, after deduction of any duty and tax and all other charges and expenses incurred will be turned over to those persons due to receive them, or if impossible, held at their disposal for a specified period. Once the deadline lapses the balance will then be transferred to the forfeiture fund under the name and management of the BOC to be used to facilitate customs seizure, abandonment and forfeiture pro-

ceedings, enhance customs intelligence and enforcement capability to prevent smuggling, or to support modernization program and other operational efficiency and tradefacilitation efforts of the bureau. If the BOC has not disposed of the abandoned cargo, the owner, importer or consignee may reclaim it provided that all legal requirements have been complied. “As far as the Naia is concerned, in 2016 we had two biddings,” Apolonio said, without citing the exact total transaction value. Meanwhile, returned shipments in the country are a “bit higher” compared to abandoned goods yet still manageable, she said sans revealing the exact figure. Exported products usually returned to the Philippines from any destination abroad are defective equipment subject for repair or for exhibit purpose only. One example that an exporter may experience this problem is if the specification of their items does not match the order of their clients. In case the exported product was previously imported, BOC Naia Export Division Supervising

Trade Control Examiner Lorna J. Morales said import documents must be presented since there are goods that fall under the “temporary importation” category. With surety bond, the item or equipment is just for exhibition or demonstration here and shall be returned back to its place of origin, she further explained. “The other basic documents needed are the commercial invoices, packing list and certificate of identification with Customs Documentary Stamp, among others,” Morales said. Because time is important in the import or export of products, securing all the legal papers and adhering to Customs procedures are deemed necessary to avoid abandoned or returned shipments. “Unlike in seaports wherein unloading of the package will take days, we, at Naia, process [the entry or exit of products] for one hour only. Once you exceed even for a minute, it will really incur additional cost to the importer or exporter,” she said. At BOC, educating the owners, exporters/importers or consignees, and even the public on export and import policies is a top priority.

Trade with the Philippines

BELGIUM’S trade with the Philippines represents a minuscule proportion (0.8 percent) of its total global bilateral trade. From 2011 to 2013 trade between Belgium and the Philippines was in decline. Imports from the Philippines declined by 31 percent in 2012 and by 18 percent in 2013 while exports were stagnant in both years. We then see a significant increase in imports from the Philippines with a 19-percent growth in 2014 and 40 percent in 2015. Exports to the Philippines marginally declined in 2014, but significantly increased in 2015 by 27 percent. Overall, we see a huge percentage increase in total bilateral trade in 2015 with 32 percent compared to previous years. The total bilateral figure of 2015 of €560.3 million finally surpassed the €508.4 million registered in 2011. Belgium has a significant annual trade surplus with the Philippines from 2011 to 2015. Belgium gained its biggest trade surplus of €115 million in 2015, which is unprecedented compared to the trade performance of the Philippines’s regional counterparts. The two other Asean countries with which Belgium has a trade surplus are Brunei and Lao PDR. Belgium has a trade deficit with the rest of the Asean countries. An analysis of the top 20 Belgian product groups exported to the Philippines in 2010 and their performance from 2010 to 2015 show 12 product groups remained in the top 20 in 2015. Interestingly, four out of these 12 product groups are medical-related products, demonstrating the stable demand of the Philippines for these product groups. In 2014 and 2015, five product groups performed exceptionally well with strong growth rates. These were medicaments consisting of mixed or unmixed products (40 percent), vaccines for human medicine (137 percent), medicaments containing antibiotics (46 percent), cooked and frozen potatoes (57 percent)—yes, these are the famous Belgian fries!— and milk and cream in solid form (122 percent). To be continued

DTI, P&G tie up for MSME program

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HE Department of Trade and Industry (DTI) and personaland household-care manufacturer Procter and Gamble (P&G) Philippines have partnered for a microentrepreneurship development program called “P&G Angat Kita”. In a statement on Monday, the DTI said P&G Angat Kita program aims to reach 20,000 to 30,000 microentrepreneurs nationwide to help them develop their business skills and provide start-up capital. Under the program, the DTI will give trainings and seminars to microentrepreneurs, particularly sari-sari store owners, through its Go Negosyo Centers. To date, there are 448 Go Negosyo Centers in the country.

P&G will provide P2,500 worth of products as start-up capital and will provide network linkage to entrepreneurs. “This agreement is a huge lift for our microentrepreneurs, especially that we are targeting those who are at the bottom of the pyramid. We are a step closer to achieving the trabaho at negosyo [jobs and entrepreneurship] agenda of the administration,” DTI Regional Operations Group Undersecretary Zenaida Maglaya said. “This is a welcome agreement for us. After the launching of the Pondo sa Pagbabago at Pag-asenso, or P3, we hope more industry partners link up with the DTI to come up with Business Models, especially for budding microentrepreneurs,” she said. PNA

upcoming events Compiled by Louise Kaye G. Mendoza DTI-EMB Knowledge Processing Division

FEB 23

Event: Philippine Export Competitiveness Program 2017

Fumigation Requirements for Exporters

Overview of EMB Services and Export Procedures Accreditation of Fumigators Requirements on Quarantine Fumigation Fumigation Requirements for Quarantine Purposes Venue: Penthouse, DTI International Building, 375 Sen. Gil Puyat Avenue,

Makati City

The 31st HLTF-EI meeting gathers Asean high-ranking trade officials in consultations on how the region can effectively address emerging challenges in a dynamic global environment. The Philippines will be represented by Dr. Ceferino S. Rodolfo, undersecretary for Industry Development of the Department of Trade and Industry (DTI) and managing head of the Board of Investments. “The Asean High-Level Task Force is considered a visionary group that assesses the progress of the region’s economic integration and proposes measures that will be submitted to the ministers who, in turn, will discuss these at the Asean Economic Ministers’ Retreat in March 2017. The meeting gives us the opportunity to consult each other on several

cooperation measures, and move forward the implementation of integration activities articulated in the Asean Economic Community’s 2025 Vision,” Rodolfo said. “The Philippines will also be taking to the HLTF the statement of its civil-society organization on how Asean integration should truly be people-centered, environmentally conscious and equitable.” The meeting’s agenda includes the presentation of the Philippines’s economic priority deliverables for its Asean 2017 chairmanship, with the theme “Partnering for Change, Engaging the World”, as well as the commemorative events and activities to celebrate Asean’s 50th anniversary. “For the Philippines, priority is in pushing for an Asean driven by inclusiveness and innovation,” the Philippine HLTF-EI lead highlighted. “One measure of success for this hosting is in terms of how many Filipinos and Asean nationals are we able to lift out of poverty through the policies and cooperative projects that we are able to introduce, institutionalize and implement during the hosting year.” “Inc lusive, Innovation-L ed Growth,” AEC’s thematic priority for 2017, sets the tone for the Philippines’s agenda on increasing trade and investments; integrating micro, small and medium enterprises (MSMEs) in the Global Value Chains (GVCs); and developing an innovation-driven economy. This

Editor: Efleda P. Campos • Wednesday, February 22, 2017 A9

MARCH 2-6

Event: Hong Kong International Jewellery Show 2017 To be attended by: Ms. Grace Juan of the Consumer Industries Division Venue: Hong Kong Convention and Exhibition Centre

1 Expo Drive, Wan Chai, Hong Kong


A10 Wednesday, February 22, 2017 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

Responsible mining in PHL

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ost in the noise and confusion generated by the decision of the Department of Environment and Natural Resources (DENR) to shut down 28 largescale mines is the fact that 12 companies were given the go signal to continue their mining operations. Along with her decision to close 23 mines and suspend five others, Environment Secretary Regina Paz L. Lopez announced that she spared the mining operations of 12 firms. These include Philex Mining Corp., Rio Tuba Nickel Mining Corp., Carmen Copper Corp., Taganito Mining Corp., Agata Mining Ventures Inc. and Apex Mining Co. Inc. Mines being operated by Cagdianao Mining Corp., Greenstone Resources Corp., Philsaga Mining Corp., Pacific Nickel Philippines Inc., Century Peak Metals Holdings Corp. and SR Metals Inc. will also remain open. Based on reports, the DENR said it decided not to serve a closure or suspension order on the 12 companies, because their mining operations did not pose “significant threat” to the environment. In a statement posted on its web site, TVI Pacific Inc., which operates the Agata nickel laterite mine in Northern Mindanao, said it was recognized by the DENR to be “operating in accordance with the highest environmental and societal standards upon which [the department] based their audit”. The company said it considers a priority to “respect the environment and the communities in which [we] operate”. Philex Mining Corp., which operates the Padcal mine in Benguet, had expressed confidence last year that it will hurdle the audit following an inspection from the DENR’s technical team. The company has various International Organization for Standardization certifications, and is already certified for Integrated Management System by Germany-based TUV Rheinland. Philex Mining said the certification covers its environment-management system and safety management, which includes operations in mining, milling and tailing-storage facilities. Other mining firms were fortunate that their operations were not in watersheds, a factor which Lopez considered nonnegotiable in deciding whether to shut down a mine and in canceling mineral production sharing agreements. Lopez has yet to disclose the details of the audit conducted on all mining firms in the country, saying she is not under obligation to do so, except if the President will ask for it. While the government is no longer keen on seeking mining investments, revealing the complete details of the audit would help guide future investors. In a way, the DENR audit has practically defined what the Philippines regards as “responsible mining”, something which Lopez herself supports. In the meantime, the DENR must also do its part in helping displaced employees of shuttered mining companies. While Lopez has been vocal about encouraging foreign and local investments in ecotourism, the DENR has yet to put in place a plan to help affected communities adjust to the loss of their livelihood. This should have been crafted a long time ago, as soon as the mining audit was initiated. But Lopez has made an assurance that she could help these affected communities find feasible alternatives in two years. Displaced employees and their families are keeping their fingers crossed. They are praying that government assistance would come soon, as residents of mining communities need to put food on their tables and send their children to school.

Since 2005

How is SSS retirement pension computed? Susie G. Bugante

All About Social Security

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embers of the Social Security System (SSS) often wonder how their retirement pensions are computed. Today’s column will attempt to explain how the basic pension is arrived at following the provision of Section 12 of the SSS Act of 1997. It says, the monthly pension shall be the highest of the following amounts: The sum of the following: P300; plus 20 percent of the average monthly salary credit (AMSC); plus 2 percent of the AMSC for each credited year of service (CYS) in excess of 10 years; or 40 percent of the AMSC; or minimum pension of P1,200 for members with at least 10 CYS; and P2,400 for those with 20 CYS. Using these three computations, let us assume the case of someone

How can we get rid of Trump?

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who contributed for 25 years based on the AMSC of P16,000. Using the first formula, we have P300 + 20 percent (16,000) + [2 percent (16,000) x (25-10)]=P300 + P3,200 + [320 x15]=P8,300. The basic pension amount in this case is P8,300. The second formula, which is 40 percent of the AMSC, will be 40 percent of P16,000=P6,400. Applying the third formula would yield P2,400 as the basic pension. Since the law provides that the highest amount shall be

granted as the pension, this means that the basic pension shall be P8,300. If the retiree pensioner still has dependent children at the time of retirement, each dependent child, not to exceed five starting from the youngest, shall be entitled to a dependent’s pension, of 10 percent of the basic pension, or P250 per child, whichever is higher, until they reach the age of majority, get employed or get married. It has often been said for every peso that a member contributes, he or she gets no less that P16 in return. Let us take, for example, the cases of Juan and Pedro. Juan has a monthly salary credit of P1,000 (the lowest salary level subject to the SSS contribution) and contributes to SSS based on this salary for 25 years, while Pedro has a monthly salary credit of P16,000 (the maximum salary as of to-date) and also contributes for 25 years. Juan’s monthly contribution of P110 would total P33,000 after 25 years of contribution to the SSS, while Pedro, whose monthly con-

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e’re just a month into the Trump presidency, and already so many are wondering: How can we end it? One poll from Public Policy Polling found that as many Americans—46 percent—favor impeachment of President Donald J. Trump as oppose it. Ladbrokes, the betting web site, offers even odds that Trump will resign or leave office through impeachment before his term ends. Sky Bet, another site, is taking wagers on whether Trump will be out of office by July. There have been more than 1,000 references to “Watergate” in the news media in the last week, according to the Nexis archival site, with even some conservatives calling for Trump’s resignation or warning that he could be pushed out. Dan Rather, the former CBS News anchor who covered Watergate, says Trump’s Russia scandal isn’t at the level of Watergate but could become at least as big. Maybe things will settle down. But what is striking about Trump is not just the dysfunction of his administration but also the—vigorously denied—allegations that Trump’s team may have cooperated with Vladimir Putin to steal the election. What’s also different is the broad concern that Trump is both: A) unfit for office and B)

dangerously unstable. One proAmerican leader in a foreign country called me up the other day and skipped the preliminaries, starting with: “What the (expletive) is wrong with your country?” So let’s investigate: Is there any way out? Trump still has significant political support, so the obstacles are gargantuan. But the cleanest and quickest way to remove a president involves Section 4 of the 25th Amendment and has never been attempted. It provides that the Cabinet can, by a simple majority vote, strip the president of his powers and immediately hand power to the vice president. The catch is that the ousted president can object, and in that case Congress must approve the ouster by a two-thirds vote in each chamber, or the president regains office. The 25th Amendment route is to

be used when a president is “unable” to carry out his duties. I asked Laurence Tribe, the Harvard professor of constitutional law, whether that could mean not just physical incapacity, but also mental instability. Or, say, the taint of having secretly colluded with Russia to steal an election? Tribe said he believed Section 4 could be used in such a situation. “In the unlikely event that Pence and a majority of Trump’s bizarre Cabinet were to grow the spine needed to do the right thing with the process set up by that provision, we would surely be in a situation where a very large majority of the public, including a very substantial percentage of Trump’s supporters, would back if not insist upon such a move,” Tribe said. “In that circumstance, I can’t imagine Trump and his lawyers succeeding in getting the federal courts to interfere.” The better known route is impeachment. But for now it’s hard to imagine a majority of the House voting to impeach, and even less conceivable that two-thirds of the Senate would vote to convict so that Trump would be removed. Moreover, impeachment and trial in the Senate would drag on for months, paralyzing America and leaving Trump in office with his finger on the nuclear trigger. My take is that unless things get much worse, removal may be a liberal fantasy. Progressives thought that Trump would never win the nomination or the election. He survived the “Access Hollywood” tape

tribution of P1,7650, would sum up to P528,000 after 25 years. If they both file for retirement pension at the same time and receive pensions for 25 years, Juan, whose pension will amount to P2,400 per month, would have received a total of P780,000, while Pedro, whose monthly pension is P8,300, would have received P2,699,500 after 25 years. Furthermore, if they both pass away and are survived by their legal spouses, their pensions will cross over to their spouses as their primary beneficiaries. Indeed, the SSS is a good deal for its members, and may be considered the cheapest insurance in town!

For more details on SSS programs, members can drop by the nearest SSS branch, visit the SSS web site (www.sss.gov.ph), or contact the SSS call center at 920-6446 to 55, which accepts calls from 7 a.m. on Monday all the way to 7 a.m. on Saturday. Susie G. Bugante is the vice president for public affairs and special events of the SSS. Send comments about this column to susiebugante.bmirror@gmail.com.

and countless crises that pundits thought would doom him, so it’s not clear why Republicans would desert him now that he’s president. Some people believe that the 2018 midterm elections will be so catastrophic for the GOP that everyone will be ready to get rid of him. I’m skeptical. In the Senate, the map is disastrous for Democrats in 2018: The Republicans will be defending only eight Senate seats, while Democrats will, in effect, be defending 25. So while Democrats can gnash their teeth, it’ll be up to Republicans to decide whether to force Trump out. And that won’t happen, unless they see him as ruining their party as well as the nation. “The only incentive for Republicans to act—with or without the Cabinet—is the same incentive Republicans had in 1974 to insist on Nixon’s resignation,” Larry Sabato of the University of Virginia told me. “The incentive is survival.” Trump does have one weakness, and it’s parallel to Nixon’s. Republicans in Congress were willing to oust Nixon partly because they vastly preferred his vice president, Gerald Ford — just as congressional Republicans prefer Mike Pence today. If I were betting, I’d say we’re stuck with Trump for four years. But as Sabato says: “Lots of things about Donald Trump’s election and early presidency have been shocking. Why should it stop now?” And what does it say about a presidency that, just one month into it, we’re discussing whether it can be ended early?


Opinion BusinessMirror

opinion@businessmirror.com.ph

Asia’s strongmen aren’t strong enough

Warned Teddy Locsin Jr.

Free fire

Michael Schuman

BLOOMBERG VIEW

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cross Asia, the world has supposedly been witnessing the return of the strongman. Chinese President Xi Jinping has been grasping more and more control in his own hands since claiming power in 2012. Two years later, Prime Minister Narendra Modi in India and President Joko Widodo (known as “Jokowi”) in Indonesia won office by selling themselves as forceful economic and political reformers. All three were heralded as the firm hands these giant developing nations needed to rejuvenate their promising, but troubled, economies. Yet, here we are, at the start of 2017, still waiting. Jokowi’s lackluster reform program has produced equally lackluster growth. Xi’s much-hyped pro-market manifesto, approved in 2013, has gone almost nowhere, leaving China to limp along on ever-greater infusions of debt. While India is the best performing of the bunch, Modi has remained reluctant to press ahead on key changes that could lift growth even higher. The truth is that Asia’s strongmen aren’t strong enough. This matters to a world counting on emerging markets in Asia and elsewhere to lift global growth. Last October Capital Economics released a report darkly entitled “The End of the Golden Age”, which predicted that “widespread expectations for a sustained rebound in emerging-market growth after the slowdown of recent years will be disappointed.” Emerging economies’ GDP, the research outfit forecast, would grow no more than 4 percent in coming years, sharply slower than the 6 percent notched since 2000. To be fair, as big economies, like India and China, advance, eye-popping growth rates naturally become harder to come by. But these countries don’t lack potential—they lack leadership. Compare current policies to the bold decision-making witnessed during Asia’s go-go years. In India in the early 1990s Prime Minister P.V. Narasimha Rao and his finance chief Manmohan Singh tore down large swaths of a regulatory raj that had been considered sacrosanct. In the early 1980s, Deng Xiaoping and a team of forward-thinkers discarded the economic irrationalities of Mao. Even Suharto in Indonesia, with his myriad faults, instituted dramatic changes that greatly alleviated poverty in the world’s fourthmost populous country. Why haven’t today’s leaders acted as forcefully? Partly it’s a problem of success. Though millions of people in these countries remain trapped in poverty, overall, they are a lot less desperate than they once were, easing some of the urgency to force through difficult and potentially unpopular changes. Since 1980, GDP per capita in Indonesia has increased more than five times; in India, six times; and in China, more than 26 times. Despite the fact that globalization has been the prime driver of these gains, there are still powerful voices who aren’t convinced further opening is necessary or desirable, especially in light of the turmoil in the global economy over the past decade. Arguably, too, most of the lowhanging fruit has been plucked. Previously, connecting low-cost economies to global trade, services and supply chains was sufficient to spur dramatic gains in productivity and incomes. Today’s economies are far more complex and their challenges—such as spurring innovation—much tougher. The prospect of opening protected sectors and untangling regulations threatens special interests that benefited from the earlier booms. Xi’s reform

Why haven’t today’s leaders acted as forcefully? Partly it’s a problem of success. Though millions of people in these countries remain trapped in poverty, overall, they are a lot less desperate than they once were, easing some of the urgency to force through difficult and potentially unpopular changes. Since 1980, GDP per capita in Indonesia has increased more than five times; in India, six times; and in China, more than 26 times. roadmap, for instance, affects everyone, from state enterprises and banks to Communist cadres and coddled tycoons. True, none of these Asian leaders are free to act as they wish. Modi still must contend with a spirited political opposition, and Jokowi has had to tiptoe through a political minefield even within his own party. Even Xi faces a major Communist Party conference later this year, which may lead to a reshuffling of the country’s top leaders. At the same time, democracy isn’t the roadblock. There seems to be an inverse relationship between Xi’s expanding grip on China and the pace of free-market reform, for instance. The democratically elected Modi has arguably introduced more meaningful reforms in India—reducing barriers to foreign investors and ushering in a major and long overdue tax reform—than Xi has. After a slow start, Jokowi, too, has at least sliced red tape and made it easier to start new companies in Indonesia. For another self-proclaimed economic strongman—Donald J. Trump—the lessons abound. Much like Xi, Modi and Jokowi, Trump’s arrival has boosted the hopes of investors and CEOs for great, business-friendly changes. But high expectations can very quickly turn into even bigger disappointment. Trump’s Asian counterparts all allowed political distractions to sidetrack their reform agendas; with his White House in turmoil, Trump may be making the same mistake. Unless today’s Asian leaders get back on track, their economies won’t either. Modi must resume the campaign for land reform to speed the process of building industry, and launch a sweeping privatization of lumbering state companies. Jokowi needs to push forward with a productivity-enhancing infrastructure program. Both Modi and Jokowi must also reduce barriers to hiring and firing workers to attract the manufacturing that would increase exports and incomes. Xi needs to stop subsidizing zombie enterprises, slim excess capacity and, most of all, allow market forces to have greater sway in financial and capital markets. If they can’t act more boldly—and soon—Asia’s golden age might truly be over.

Continued from A1

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n famines and scarcity, Chinese children would slice off their own flesh and prepared it in a soup for elders. Most commonly consumed was part of the thigh, and, I suppose, just a part of the upper arm. If the entire upper arm, the lower part would be not only useless, it would fall off if grandpa wanted bulalo. The eyeball was banned by imperial edict in 1216.

Wednesday, February 22, 2017 A11

British royalty and the British rich drank “concoctions prepared from human body parts.” English epileptics flocked to public beheadings to lap up the blood on the chopping block. Schutt himself went to Texas to take up the offer of a mother of 10 to eat her placenta, which tasted like veal. But Spaniards, as Catholics and conscious of the Last Judgment when the dead shall rise again, did not want to resurrect on the last day not as one but two or more people by eating others. However, being smart, Spaniards accused of cannibalism peoples who never practiced it as an excuse to exploit them despite Catholic strictures against slavery.

In the insect world, the female redback spider is bigger than the male. When they copulate, the large female starts eating the small male then spits an acid on it. Offended, the male walks away half-eaten. But stupid, he comes back for more. By then, the acid has liquefied his insides, which the female sucks out of him “like a slurpee”, Schutt says. The theory of evolution says all creatures share a single origin. Somewhere inside us there is a bit of spider. Women may have inherited eating in bed—and men the stupidity of their prey. There you go, guys, don’t say you haven’t been warned.

When mining problems get too big, catch water? Michael Makabenta Alunan

on the contrary

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hen a problem gets too big, the solution is to proverbially douse it with water just like what you do in stopping a fire from spreading.

“Mine your business?” The drastic sweeping reforms imposed by Environment Secretary Regina Paz L. Lopez is a welcome development to many, more so among environmentalists, but is also causing headaches to President Duterte. Lopez has ordered the closure of 23 mining firms, the suspension of five more with a sixmonth deadline to shape up and the cancellation of 75 mineral production sharing agreements (MPSAs). The mining industry has, indeed, over mined our resources and undermined our laws, but are now facing their nemesis and match in Lopez, a scion of a wealthy family who has the mind, the heart and the true grit or guts to push for reforms. For minding their mining businesses and hitting strong and hard, it is likely some interlocking interests close to some Cabinet people, representatives and senators got hurt. Thus, Lopez’s confirmation was blocked, although she got reappointed by Duterte, who has wavered a bit owing to her drastic, wholesale and decisive actions. Meanwhile, mining firms are considering filing graft charges against her. Duterte’s dilemma over Lopez. No

one could deny Lopez’s facts over the environmental damage and the longterm social havoc caused by mining. Her only “fault” is that she did it one time, big time wholesale. She should have differentiated between strategy and tactics, without losing track of her goals and mission. Simply put, she should have done it in phases, while simultaneously implementing programs, like agri-tourism and ecotourism, or the adoption of Australian/Canadian responsible mining methods and technologies. However, if she does it phase by phase, she may be accused of selective favoritism, which puts her in a dilemma as the law must be applied equally to all. Duterte is also in a dilemma amid the opposition from some of his supporters in the Cabinet, Congress, and in business. Thus, Duterte issued a statement saying what Lopez did was a mess. Lopez’s wholesale action has forced mining firms to gang up on her, and it’s admirable that she still strongly stands pat on what she claims is truthful or factual, what is rightful and what is for the common good. Her transparency and integrity are her strong points, but in

On economic arrogance Paul Krugman

new york times

A

ccording to press reports, the Trump administration is basing its budget projections on the assumption that the US economy will grow very rapidly over the next decade—in fact, almost twice as fast as independent institutions like the Congressional Budget Office and the Federal Reserve expect. There is, as far as we can tell, no serious analysis behind this optimism; instead, the number was plugged in to make the fiscal outlook appear better.

I guess this was only to be expected from a man who keeps insisting that crime, which is actually near record lows, is at a record high, that millions of illegal ballots were responsible for his popular vote loss, and so on: In Trump world, numbers are what you want them to be, and anything else is fake news. But the truth is that unwarranted arrogance about economics isn’t Trump-specific. On the contrary, it’s the modern Republican norm. And the question is why. Before I get there, a word about why extreme growth optimism is unwarranted. The Trump team is apparently projecting growth at between 3 percent and 3.5 percent for a decade. This

wouldn’t be unprecedented: the US economy grew at a 3.4-percent rate during the Reagan years, 3.7 percent under Bill Clinton. But a repeat performance is unlikely. For one thing, in the Reagan years baby boomers were still entering the work force. Now they’re on their way out, and the rise in the working-age population has slowed to a crawl. This demographic shift alone should, other things being equal, subtract around a percentage point from US growth. Furthermore, both Reagan and Clinton inherited depressed economies, with unemployment well over 7 percent. This meant that there was a lot of economic slack, allowing rapid growth as the unemployed went back

politics these are not good enough. She, therefore, needs the support of Duterte, who has the political will, knows strategy and tactics, is familiar with astute political strategists from history like Machiavelli and Sun Tzu, and plays with hyperboles by dishing out white lies or three incorrect statements out of five that he says. While we detest Duterte’s human-rights records, he needs the support to make it easy for him to back up fully Lopez’s actions. But what they say is not what you see. Mining firms may drumbeat their contributions to the economy, employment and to government revenues, as well as complain about who is going to repay them for their billions of lost investments, actual losses and lost opportunities. But for Lopez, apart from her impassionate speeches, she believes losing the mining industry is worth the gamble, as it is not really contributing much anyway with its gross value added averaging only about 0.65 percent of GDP for 2012-2016, and this already includes nonmetallic mining. If you collapse the entire industry, it will affect only less than 1 percent of the economy. Moreover, it shares only about 5 percent of total exports, and accounts for about 0.6 percent of total employment. What is also going around social media are actual video footages of the massive destruction that is happening on the ground. On the argument that to see is to believe, what the miners are saying are no match to what people can see from the videos. Without alternatives, actions won’t hold water. Nonetheless, there are valid issues that need to be addressed immediately because stopping mining operations drasti-

cally in compliance with environmental laws, but without establishing ready program alternatives, may be worst as such an approach does not hold water figuratively. Building livelihood alternatives is crucial and can take time, but what people need are instant but significant jobs on a mass scale, similar to what US President Franklin D. Roosevelt did at the height of the 1930s Great Depression, when he created 4 million jobs in a month’s time, equivalent to over 10 million today, says a book by Nick, titled When FDR put the Nation to Work. These were productive jobs, whereby millions of jobless illiterates underwent basic literacy and numeracy skills training from carpentry, plumbing, electrical, etc., then tasked to create physical wealth by building roads, farm silos, bridges, hospitals, etc. The basin is the catch? Lopez’s agri-tourism and ecotourism thrusts are good, but before they can prosper what is necessary is a prerequisite program that can generate productive jobs instantly as she lays down the foundations for her goals. One vital and viable program is the building of thousands of catch basins in these mining areas and other mountain barangays. For one, these catch basins can harness rainfall for irrigation. Second, they can be a source of water for household use. Third, surrounding areas become more fertile for agriculture, vegetable gardening, mini forestry or orchard fruit tree farming. Fourth, they can be used to raise fish. Last, they are an effective climate-adaptation strategy that prevents not only soil erosion but downstream floods.

to work. Today, by contrast, unemployment is under 5 percent, and other indicators suggest an economy close to full employment. This leaves much less scope for rapid growth. The only way we could have a growth miracle now would be a huge takeoff in productivity—output per worker-hour. This could, of course, happen: maybe driverless flying cars will arrive en masse. But it’s hardly something one should assume for a baseline projection. And it’s certainly not something one should count on as a result of conservative economic policies. Which brings me to the strange arrogance of the economic right. As I said, belief that tax cuts and deregulation will reliably produce awesome growth isn’t unique to the Trump-Putin administration. We heard the same thing from Jeb Bush (who?); we hear it from congressional Republicans like Paul Ryan. The question is why. After all, there is nothing—nothing at all—in the historical record to justify this arrogance. Yes, Reagan presided over pretty fast growth. But Bill Clinton, who raised taxes on the rich, amid confident predictions from the right that this would cause an economic disaster, presided over even faster growth. President Barack Obama presided over much more rapid private-sector job growth than George

W. Bush, even if you leave out the 2008 collapse. Furthermore, two Obama policies that the right totally hated—the 2013 hike in tax rates on the rich, and the 2014 implementation of the Affordable Care Act—produced no slowdown at all in job creation. Meanwhile, the growing polarization of American politics has given us what amount to economic policy experiments at the state level. Kansas, dominated by conservative true believers, implemented sharp tax cuts with the promise that these cuts would jump-start rapid growth; they didn’t, and caused a budget crisis instead. Last week Kansas legislators threw in the towel and passed a big tax hike. At the same time, Kansas was turning hard right, California’s newly dominant Democratic majority raised taxes. Conservatives declared it “economic suicide”—but the state is, in fact, doing fine. The evidence, then, is totally at odds with claims that tax-cutting and deregulation are economic wonder drugs. So why does a whole political party continue to insist that they are the answer to all problems? It would be nice to pretend that we’re still having a serious, honest discussion here, but we aren’t. At this point, we have to get real and talk about whose interests are being served.

E-mail: mikealunan@yahoo.com


2nd Front Page BusinessMirror

A12 Wednesday, February 22, 2017

www.businessmirror.com.ph

Lawmaker eyes panel approval of CTRP proposal by March 15 T

By Jovee Marie N. dela Cruz

@joveemarie

he House Committee on Ways and Means is eyeing the approval of the Comprehensive Tax Reform Package (CTRP) before the lower chamber goes on a break by the middle of next month.

PDP-Laban Rep. Dakila Carlo E. Cua of Quirino, committee chairman, is optimistic they will finish tackling the tax package in the last three weeks of session. The committee is set to conduct its fifth hearing today, Wednesday, on the CTRP focused on the provision lowering individual income-tax rates. “[I expect the bill will be approved] at least [on] the committee level [before the break]. That’s our best effort. Of course, [I] cannot promise anything, because it will still be voted upon,” he said. “In order to cover everything, if ever there are parts that were glossed over, we will have hearings on the bill as a whole, so that everything you want to ask, everything you want to clarify, [including the] proposed amendments, will be discussed tomorrow [Wednesday],” Cua added. ACT Teacher Rep. Antonio L. Tinio, a committee member, said he will vote against the passage of the tax-reform bill, if the committee will retain the inflationary provisions in the package. He said the proposed offsetting measures, which will be shouldered by low-income earners and poor families, should be discussed separately by the lower chamber. According to the lawmaker, there

QUIMBO: “In my opinion, the entire tax package will have difficulty passing without amendments, as there are portions that are clearly objectionable for being antipoor, and makes the country unattractive to investors.”

are no opposition to the income-tax reform—unlike the other reforms it was proposed with—such as the excise taxes and value-added tax. “The lowering of income tax might not push through if other taxes will not be approved,” he said. Tinio added the proposal to lower persona l income ta xes shou ld be “unbund led ” f rom the tax-reform package. Deputy Speaker and Liberal Party Rep. Romero S. Quimbo of Marikina City admitted earlier it will be difficult for Congress to pass the tax-reform package as a whole or without amendments. “In my opinion, the entire tax package will have difficulty passing without amendments, as there are portions that are clearly objectionable for being antipoor, and makes

the country unattractive to investors,” said Quimbo, former chairman of the ways and means committee during the 16th Congress. Forcing the radical overhaul on the country’s tax system, he said, is not only imprudent, time-wasting and fiscally unhealthy, but it will also bring about more harm than good in the long run. Under the bill, the tax shall be computed in accordance with and at the rates established in the two schedules. For 2018 and 2019, the new tax brackets are: ■ t hose ea r n ing not over P250,000 will be exempted from paying tax; ■ those earning over P250,000 but not over P400,000 would pay a fixed tax 20 percent of the excess over P250,000; ■ those earning over P400,000 but not over P800,000 would pay a fixed tax of P30,000, with an additional 25 percent of the excess over P400,000; ■ those earning over P800,000 but not over P2 million would pay an excess tax of P130,000, with an additional 30 percent of the excess over P800,000; ■ those earning over P2 million but not over P5 million would pay a fixed tax of P490,000, with an additional 32 percent of the excess over P2 million; and ■ those earning over P5 million would pay a fixed tax of P1,450,500, with an additional 35 percent of the excess over P5 million. For 2020 onward, the new tax brackets are: ■ t hose ea r n ing not over P250,000 will be exempted from paying tax; ■ those earning over P250,000 but not over P400,000 would pay a

fixed tax of 15 percent of the excess over P250,000; ■ those earning over P400,000 but not over P800,000 would pay a fixed tax of P22,500, with an additional 20 percent of the excess over P400,000; ■ those earning over P800,000 but not over P2 million would pay an excess tax of P102,500, with an additional 25 percent of the excess over P800,000; ■ those earning over P2 million but not over P5 million would pay a fixed tax of P402,500, with an additional 30 percent of the excess over P2 million; and ■ those earning over P5 million would pay a fixed tax of P1,302,500, with an additional 35 percent of the excess over P5 million. The bill proposed that after 2020, the taxable income levels in the above schedules shall be adjusted once every five years through rules and regulation issued by the Department of Finance (DOF). However, the proposal also includes the imposition of excise tax on fuel as compensatory measure for the foregone revenues due to the lowering of income tax. The DOF proposes a staggered increase of P6 per liter of diesel, kerosene and liquified petroleum gas to be imposed within a three-year period. The bill also includes the relaxation of the Bank Secrecy Act, imposition of excise taxes on automobiles and taxing Philippine Charity Sweepstakes numbers’ game and lotto winnings. The tax-reform package involves foregone revenue of around P200 billion, but, at the same time, will generate around P206.8 billion for the government in the first full year of its implementation.

Skyjet starts Siargao flights By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

S

KYJET Airlines starts flying to Siargao today (Wednesday) with a fully loaded plane of select officials of the Duterte administration eager to check out the surfing capital of the Philippines. In an interview with the BusinessMirror, SkyJet COO Joaquin Po said the carrier is eager to expand its routes and increase in-flight frequencies, especially since its third plane, a British Aerospace 146-200 jet, has arrived. “We will be adding Siargao to our routes; it’s a destination that has attracted an increasing number of tourists, especially now that it has attained a global reputation for its surf sites,” he said. Surigao del Norte posted a 19.3-percent increase in visitor arrivals to 145,950 in 2015, according to data from the Department of Tourism (DOT), due to the influx of foreign and local tourists traveling to Siargao. The resort island is home to Cloud 9, the most popular surfing spot in the Philippines. World competitions are held in Siargao annually, as major surfing heavyweights troop to the island and ride out Cloud 9’s waves. The flights to Siargao are four times—every Monday, Wednesday, Friday and Sunday. The flights depart Manila at 6 am and arrive at the Sayak Airport at 7:40 am. The flights leave Siargao at 8:10 am and arrive in Manila at 9:50 am. The base fare for the Siargao route, which officially begins on February 24, is about P4,277 per person, one way. Before SkyJet, only Cebu Pacific Airways offered direct flights to Siargao but via Cebu, a costly option, especially for those coming from Manila. Major carriers also fly directly from Manila to Surigao City, temporarily suspended, however, due to the closure of the city airport, which was damaged by the recent earthquake. Tourists then take a 15-minute jeepney or tricycle ride to the pier, before embarking on a three-hour ferry ride to Siargao island, north of the city. Wednesday’s trip to Siargao will carry Transportation Secretary Arthur P. Tugade, Tourism Secretary Wanda Corazon T. Teo and other members of the Cabinet and government executives for the formal launch of the boutique airline’s new route. SkyJet, which is owned by the Tieng family’s Solar Group, also flies to Basco, Batanes, daily, except Tuesday to Boracay (Caticlan) twice a day, everyday; and to Coron, daily, three times a day. Po also observed the growing demand for flights to Coron, as more local and Filipino tourists discover the destination’s multifaceted offerings. He said, though the current congested air-traffic situation at the Ninoy Aquino International Airport prevents SkyJet and other carriers from expanding their routes or frequencies,“We’d like to increase our flights to Coron to five times a day, for instance, but because of the air-traffic congestion at the Naia, we’re limited to three flights a day.” SkyJet also hopes to increase its frequencies to Siargao to daily flights, he added. The carrier has three planes—two BaE 146-100 jets and one BaE 146-200.

House minority: No quorum, no revival of death penalty F

ollowing the decision of the House leadership to fast-track the passage of the death-penalty bill, lawmakers belonging to the opposition bloc have vowed to use the lower chamber’s perennial problem of absence of quorum to block the proposal to revive the capital punishment. In a news conference, Liberal Party Rep. Edcel C. Lagman of Albay said it is still the responsibility of the House leadership to maintain the quorum to assure that the interpellations and debates on the pending bills would continue. “We are willing to debate, to interpellate till kingdom come, but we will do this if we have quorum,” Lagman said. “It is a puzzle why the House leadership gets peeved when the absence of a quorum is raised considering that under the [House] Rules, no business can be conducted in the absence of a quorum,” he added. Lagman said the advance voting was a reaction to the quorum calls of those objecting to the retrogressive measure. He added that moving for adjournment due to absence of a quorum under Article 75 of Rule XI of House rules is a legitimate parliamentary motion, like calling for a nominal voting under Article 116 of Rule XV. Earlier, Majority Leader Rodolfo C. Fariñas of Ilocos Norte said the leadership of the lower chamber has decided to put to an early vote the Durte administration-backed death-penalty bill. He said the House Bill (HB) 4727 will be approved on second reading on

Lagman: “It is a puzzle why the House leadership gets peeved when the absence of a quorum is raised considering that under the [House] Rules, no business can be conducted in the absence of a quorum.”

Februar y 28 —a week earlier than the March 8 original schedule. The opposition is continuously questioning the lack of quorum that delays the sponsorship and debate period. Moreover, Lagman said he cannot understand why the lower chamber is rushing the voting on the very important, although retrogressive, measure. “During the past Congresses debating the comprehensive agrarianreform program, reimposition of the death penalty, the abolition of the death penalty [and] the reproductive-health bill, nobody was muzzled. “This kind of muzzling has not happened before. This is a way of continuing the culture of violence, because suppressing freedom of expression is a form of violence,” he added. “A train terminal has been installed menacingly in the plenary hall of the House of Representatives for the railroading of the approval of HB 4727

reimposing the death penalty. The train’s arrival has been advanced from March 8 to February 28, when the death penalty bill has been scheduled by the House leadership for voting,” he said. Akbayan Rep. Tom S. Villarin said the House leadership is railroading the passage of the death-penalty bill to propel President Duterte’s popularity. “That is the only pragmatic and political reason on why they want to rush this bill.” Meanwhile, the so-called super-majority” has agreed to narrow down to 10 from 21, the number of heinous crimes punishable by death, which include drug-related offenses, plunder, rape and treason. These drug-related cases include importation of dangerous drugs and or controlled precursors and essential chemicals; sale; trading; administration; dispensation; delivery; distribution and transportation of dangerous drugs and/or controlled precursors and essential chemicals; and maintenance of drug den. Also punishable by death are manufacture of dangerous drugs and/or controlled precursor and essential chemicals; cultivation or culture of plants classified as dangerous drugs; unlawful prescription of dangerous drugs; criminal liability of public officer for misappropriation; misapplication or failure to account for the confiscated seized or surrendered drugs; and criminal liability for planting evidence. Jovee Marie N. dela Cruz


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