BusinessMirror February 28, 2019

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See “Farm growth,” A8

DEPT. OF SCIENCE AND TECHNOLOGY

PHILIPPINE STATISTICS AUTHORITY

2018 BANTOG DATA MEDIA AWARDS CHAMPION

BusinessMirror A broader look at today’s business

www.businessmirror.com.ph

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Thursday, February 28, 2019 Vol. 14 No. 141

5 more contracts bid out in ’19 for PHL subway

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By Lorenz S. Marasigan @lorenzmarasigan & Bernadette D. Nicolas @BNicolasBM

HE Department of Transportation (DOTr) aims to auction off the remaining components of the P357-billion Metro Manila Subway System within the year to achieve its goal of full operability by 2025. After the department broke ground for the first phase of the facility on Wednesday, Transportation Secretary Arthur P. Tugade said his group will bid out five more contracts for the construction of

the first fully underground railway system in the country. “We will be bidding out five more contracts and we assure that there will be continuity and consistency in the construction because

we have hired a consultant that will ensure that the construction will be patterned to the flow of the detailed engineering and designed that we made for the subway,” he said in an interview.

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The length of time, in minutes, the riding public will take to travel from Quezon City to Naia Terminal 3 on the subway trains, which will run at 80 kph, across 15 stations Tr a n s p or t at ion Unde r se cretary Timothy John R. Batan said the whole subway program is divided into six contracts, so as to hasten the construction of the whole facility, while ensuring partial operability in the coming years.

@caiordinario

& Jasper Emmanuel Y. Arcalas

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@jearcalas

HE implementation of the rice trade liberalization law will not necessarily make imports cheaper, as the projected hike in the demand for the staple could make it more expensive and lead to another price crisis, according to a local agronomist. The Philippines cannot simply depend on imports, Agriculture Secretary Emmanuel F. Piñol said, as thinning rice supply will not be enough to meet the requirements of the world’s expanding population. Additional pressure on thinning rice supply, University of the Philippines Los Baños Agr icu lt ure Economist Teodoro Mendoza said, could jack up international and domestic prices as the Philippines is one of the biggest rice importers. Higher demand for rice in countries like Africa, India and China could further exert pressure on international prices and lead to volatility, Mendoza said. “It has already happened in 2008 when we imported 2.5 million metric tons [MMT]. We were the world’s largest [rice] importer at that time. We also triggered the increase in rice prices which reached $1,000 per metric ton [MT],” he said.

“At that time, our exchange rate was at 47 to the dollar, but now, if rice prices will increase to $1,000 per MT, rice prices, including transportation costs, could reach about P65 per kilogram,” Mendoza added. IBON Foundation Executive Director Sonny Africa told the BusinessMirror that, while it is hard to say that rice price crises could ensue after the law becomes effective, it could lead to supply volatility. “Consumers are now even more vulnerable to price and supply shocks from foreign-exchange movements, unilateral decisions of a handful of major rice exporters, competition in tight global rice markets, and even rice trader exploitation,” Africa said.

Higher MAV

MENDOZA said the draft implementing rules and regulation (IRR) released by the National Economic and Development Authority (Neda) on Tuesday, which indicated a possible increase in the minimum access volume (MAV), could be a sign that the government is already anticipating an increase in rice prices. The draft IRR stated that the Neda, upon the recommendation of the National Food Authority Council (NFAC), could adjust the MAV. Under the law, the country’s MAV would return to its 2012 levels at 350,000 MT once the law See “Rice trade,” A2

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Shaping the social contract for ILO’s second century Rene E. Ofreneo

LABOREM EXERCENS

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N June this year, the tripartite representatives of governments, employers and trade unions of different countries shall gather in Geneva not only to hold the annual International Labor Conference (ILC) but also to mark the centenary of the International Labor Organization (ILO). The ILO is a product of the 1919 Treaty of Versailles that formally ended World War I. The winning Allied forces—United States, Great Britain and France—openly declared that there would be no closure to the war if the social and labor issues convulsing Europe were not addressed. Section II of the Treaty states: “Lasting peace can be established only if it is based on social justice.” In fact, most of the European governments then were worried over the possible spread of “bolshevism”. Two years earlier, in 1917, Vladimir Lenin’s Bolshevik Party successfully overthrew the Tsarist regime and installed a “Worker government” led by the Russian Communist Party. Continued on A7

See “Subway,” A8

‘Rice price crisis could hit PHL despite rollout of rice trade lib law’ By Cai U. Ordinario

2017 EJAP JOURNALISM AWARDS

MICP wants to hasten containers’ disposal By Rea Cu

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right now. The challenge is to get them to produce right away,” Perlada told reporters on Wednesday. According to the trade official, Ever Win is registered with the Philippine Economic Zone Authority (Peza), although investment figures have yet to be released by the agency. “The reason that they gave us [why they are moving out of China] is that China is becoming more

HE Manila International Container Port (MICP) said on Wednesday that it has created an oversight committee to hasten the disposal of overstaying containers to decongest the yards. The Bureau of Customs (BOC)MICP said in a statement that the committee will monitor and oversee the continuous action of overstaying containers. MICP District Collector Erastus Sandino B. Austria cited the high number of overstaying containers as one reason for the delay in the release of shipments. The influx of imports, Austria said, also contributed to the problem since it increases the number of overstaying containers. “MICP is closely working with the port operator, shipping lines and various stakeholders to address this issue,” Austria said. He said the International Container Terminal Services Inc. (ICTSI) is now repairing the bay doors of the Designated Examination Areas to allow the MICP to inspect more containers and hasten the release of shipments. The BOC is currently crafting a memorandum order to address the return of empty containers and

Continued on A8

See “MICP,” A2

PAL IS 78! Four-star carrier Philippine Airlines on Wednesday announced product innovations it is rolling out to obtain 5-star quality service rating. It announced this and an eye-popping “P78, $78” promo to mark its 78th anniversary as Asia’s longest-operating airline, covering more than 2 million seats. At Wednesday’s press conference are PAL executives (from left) Eric Carl Tan, special assistant, Commercial Group-PAL; Ryan Uy, VP for Sales; Dr. Jaime Bautista, president and COO; Ria Domingo, VP for Marketing; and Jose Enrique Perez De Tagle, VP for Corporate Communications. They are holding a miniature of a PAL A-350 at the press conference at the Century Park Manila. Story on B1. NONIE REYES

DTI: Firms fleeing trade war relocate to PHL By Elijah Felice E. Rosales

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@alyasjah

HE Philippines is starting to benefit from the trade conflict between the United States and China, as a manufacturing giant relocated to the country to avoid taking damage from Washington’s stiffer tariffs on Chinese goods. Senen M. Perlada, director for the Department of Trade and In-

dustry’s Export Marketing Bureau, said electronics firm Ever Win International Corp. is closing down its shops in China. The firm is fleeing the rising cost of production, as well as the heavier duties imposed by the United States on products originating there. In a move that benefited the Philippines, Ever Win relocated and opened a factory here. “They are supposed to operate as soon as possible, and they are [here]

@ReaCuBM

n JAPAN 0.4706 n UK 68.9723 n HK 6.6293 n CHINA 7.7659 n SINGAPORE 38.6244 n AUSTRALIA 37.3947 n EU 59.2893 n SAUDI ARABIA 13.8742

Source: BSP (27 February 2019 )


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