THE BEST WAYS YOUR ORGANIZATION CAN SUPPORT WORKING PARENTS
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ver the past decade, I’ve advised management teams and coached individuals struggling to balance the competing demands of work and home. The following approaches are what I’ve found the most effective.
■ Start with the facts: Before launching any support programs for working parents, gather the relevant data: Where do parents sit within the organization? What are their attrition patterns? Finding the actual pain point is what leads to effective solutions. ■ Define the demographic: Most companies concentrate their efforts
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on “visible working parents”—new biological mothers, for example—focusing all programming on lactation rooms and other relevant supports. While these are positive steps, they address the problem too narrowly. Working parenthood is an 18-year job, and it is done by both men and Continued on A12
See “Working parents,” A2
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Wednesday, January 3, 2018 Vol. 13 No. 84
Govt needs to spend ₧24T until 2030 to bridge infra gap
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By Jasper Emmanuel Y. Arcalas
@jearcalas
he government should spend at least P24 trillion until 2030 to meet the country’s growing demand for roads, bridges and other public infrastructure, according to the Organisation for Economic Cooperation and Development (OECD).
In its biennial economic outlook report, the OECD estimated the Philippines’s funding requirement at between P23.7 trillion and P27 trillion to bridge the so-called infrastructure gap and sustain the country’s economic growth.
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@jonlmayuga
weeping changes in both the leadership of the Department of Environment and Natural Resources (DENR) and policies affecting Philippine flora and fauna marked the year 2017. Former Environment Secretary Regina Paz L. Lopez had zeroed in on mining, a sector often criticized for causing “massive” environmental destruction and degradation. Lopez shuttered mining operations and had banned open-pit mining. An environmental advocate and known critic of large-scale mining, Lopez’s crackdown on irresponsible mining and destructive development projects continued until her last few days in office. In January to May, under Lopez’s as stewardship of the DENR, she continued to issue policy pronouncements that heavily favored environmental protection and biodiversity conservation, adversely affecting large-scale mining operations. Lopez kicked off 2017 with an announcement that an interagency task force that would protect the right of indigenous peoples (IPs) over their ancestral lands was created. Special Order 2016-761 establishing the Indigenous Peoples’ Inter-Agency Task Force composed of the DENR, its corporate arm the Natural Resources Development Corp. (NRDC) and the National Commission on Indigenous Peoples
(NCIP), provides a new mechanism to protect the rights of IPs as they exercise their Free and Prior Informed Consent (FPIC), a requirement under Republic Act (R A) 8371, or the Indigenous Peoples’ Rights Act (IPRA). This follows her promise to use the DENR’s fund for the National Greening Program (NGP) to uplift the lives of upland dwellers, including IPs. Two days later, on January 3, Lopez bared her policy on the issue of small-scale mining to the BusinessMirror, saying that she is not keen on approving new Minahang Bayan, where smallscale gold processing is allowed under the law. She added that if she would have it her way, she would rather see small-scale miners having alternative sources of income and livelihood revolving around the protection and conservation of the environment, and promote sustainable development based on ecologically sound economic activities, such as agri-forestry and ecotourism. On January 9 the feisty Lopez yet again issued a controversial policy pronouncement toughening her stance on the issuance of environmental compliance certificates (ECCs) for environmentally critical projects. She ordered a comprehensive review of all ECCs granted by her predecessor prior to her appointment to the top DENR post in the second half of 2016. This put on the spotlight 800 ECCs.
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friend of a friend of mine, a health freak like her, said that her friend was a water fanatic who drank eight tall glasses of water every morning and every chance she got. She collapsed from the loss of electrolytes. I have kin so strict in their diet that by the start of old age their bodies were fit to live indefinitely because their arteries were clear of plaque, but they were drooling because their brains had shrunk from malnutrition. Continued on A10
Continued on A2
2017 SAW D.E.N.R. HEIGHTENING ENVIRONMENTAL STEWARDSHIP DESPITE LEADERSHIP CHANGE By Jonathan L. Mayuga
BEEBRIGHT | DREAMSTIME.COM
work vs. life
By Daisy Wademan Dowling
Manufacturing sector in pink of health, set for stronger growth By Bianca Cuaresma @BcuaresmaBM
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The Jaybanga Rice Terraces is only three hours away from Manila. DOT photo
8 must-visit PHL destinations for 2018 By Ma. Stella F. Arnaldo
@akosistellaBM Special to the BusinessMirror
Part One
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INCE the Department of Tourism (DOT) launched “It’s More Fun in the Philippines” brand campaign in 2012, many of us have become more aware of the beauty that lies in our countryside. In fact, the amount of money we spend on traveling to local destinations has grown substantially. According to the Philippine Statistics Authority (PSA), domestic travelers spent about P2.1 trillion in 2016, up by 19.1 percent from the P1.77 trillion recorded in 2015. The same data also
indicated that domestic tourism expenditure accounted to close to 20 percent of a household’s final consumption expenditure in 2016, compared to 18 percent in 2015, and just 12.7 percent in 2012, the first year of the Philippines “fun” brand campaign. The affordability of airfare has also made traveling around the Philippines—an archipelago— much easier. One can be in Davao City in the southern island region of Mindanao from Angeles, Pampanga, in Luzon in just under two hours, and for an average of P5,000 round-trip airfare for one. Also, the construction or improvement of airports in many provinces have made it possible for many of us to check out new and
exciting destinations previously unheard of, or were just not accessible enough to visit. For instance, reaching the famous long beach of San Vicente in Palawan, is no longer just a pipedream since its airport was inaugurated in June 2017. While the airport is open just to light aircraft in the meantime, a number of major airlines have intimated the possibility of flying there soon, what with well-known resort brands opening soon, or already in the planning stages. From deserted island beaches to rocky mountains, deep drops of colorful coral walls and diverse marine life, to heritage churches and cultural icons, there is a wealth of wonder in the Philippines. Continued on A12
he Philippine manufacturing sector is in the pink of health and is positioned to post stronger growth this year, based on the country’s Purchasing Managers’ Index (PMI) at the end of 2017. On Tuesday regional business media organization Nikkei and international think tank IHS Markit announced that the Philippines’s PMI was at 54.2 in December, slightly lower than November’s 54.8. But IHS Markit principal economist Bernard Aw said the December level still signals that the local manufacturing sector is in the pink of health. “The Philippine manufacturing economy finished the year with its best quarter for 2017, setting the scene for stronger growth, as the country moves into next year. Output and new orders maintained marked growth rates in December. Domestic demand stood out as a key driver for manufacturing activity, as export growth remained subdued,” Aw said. The PMI is a composite index, calculated as a weighted average of five individual subcomponents. Readings above 50 signal an improvement in business conditions on the previous month, while readings below 50 show deterioration. “Other survey indicators point toward a strong start to 2018 for the sector. See “Manufacturing,” A12
n japan 0.4423 n UK 67.1165 n HK 6.3882 n CHINA 7.6413 n singapore 37.3228 n australia 38.9050 n EU 59.6131 n SAUDI arabia 13.3121
Source: BSP (29 December 2017 )
BMReports BusinessMirror
A2 Wednesday, January 3, 2018
Govt needs to spend ₧24T until 2030 to bridge infra gap Continued from A1
“However, meeting the demand for infrastructure in the Philippines, in line with the average annual economic growth rate of 7 percent that the government is targeting from 2017 to 2022, will require considerable capital, and a more efficient utilization of the available financial resources,” the OECD said in its report, titled “Economic Outlook for Southeast Asia, China and India 2018.” The OECD based its estimates on the Asian Development Bank’s earlier forecast that between 2016 and 2030, Southeast Asia will need to raise between $2.76 billion and $3.15 billion to meet domestic demand for infrastructure in four key areas alone: power, water and sanitation, transport and telecommunications. “Assuming that these regional projections hold true for the Philippines, and based on 2015 prices, the government would need to raise between P17.2 trillion and P19.6 trillion from 2017 to 2030, or around $340.7 billion to $391.8 billion,” the OECD report read. “In terms of current prices, this would rise to between P23.7 trillion and P27 trillion, or around $473.6 billion to $540 billion,” it added. The government has earlier announced that it is planning to spend at least P8 trillion until 2022 to usher in the “golden age of infrastructure.” The Paris-based organization noted that the Philippines’s “shallow” pool of funds poses a challenge for the country in meeting its infrastructure demands by 2030. “This kind of infrastructure spending may be a tall order for the Philippine government at this point. Government revenue collection has been a little less than
Lawmakers. . . Continued from A12
Moreover, House Committee on Banks and Financial Intermediaries Chairman Ben P. Evardone of the Lone District of Eastern Samar urged the government to activate its task force to monitor price increases. “The government should activate its task force composed of the department of Energy Justice and Philippine National Police to strictly monitor oil companies from possible violation of the existing laws,” he said. “The task force can conduct on the spot audits of oil companies to prevent them from charging excise tax to old stocks.”
Question
Meanwhile, Rep. Carlos Isagani T. Zarate of Bayan Muna on Tuesday said the Makabayan bloc is now carefully studying to question before the Supreme Court the implementation of the new tax law. “We will challenge the legality of this runaway TRAIN, as it was railroaded in the House without the required
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15 percent of GDP on average from 2011 to 2016,” the report read. “Moreover, capital markets are not deep in the Philippines. Nonetheless, the country’s current administration is keen on narrowing the infrastructure gap through reforms in fiscal policy, partnership with the private sector and official development assistance,” it added. The OECD said the government could explore venturing into the bond market to finance its long-term infrastructure projects as public-private partnership schemes may not be sustainable in the long run. “But, in the absence of deep long-term fund pool, private project developers bear higher cost of credit owing to revenue-cost maturity mismatch. This scheme can also be potentially risky if unsettling market disturbances happen midway through the project cycle,” it said. “Infrastructure projects have long gestation periods [from the preconstruction phase to the operations phase] and should ideally be funded by long-term financial instruments. This means at least 10 years, and maybe as long as 15 years,” it added. However, the OECD pointed out that it is “imperative” for the government to improve the quality infrastructure projects it would roll out as it sees the public sector shouldering most of the country’s infrastructure spending in the short run. “In the short run, the public sector will continue to shoulder most of the burden in terms of infrastructure spending. Thus, it is imperative to improve the quality of how the government spends money on such projects, which means greater discipline in the prioritization of projects, a more streamlined project cycle, and also
a rigorous insistence upon post-construction audit,” the report read. To raise funds, the Philippine government could consider “levies that capture the appreciation in land value that results from the infrastructure built in the area to raise revenues.” “Another measure worth considering would be the specific allocation of infrastructure-user fees to pay for maintenance costs,” the OECD report read. “In addition, the government should evaluate the possibility of becoming a party in funded cross-currency swap agreements with multilateral development institutions, or highly-rated private financial enterprises, to finance infrastructure,” it added. Over the medium to long term, it would be “prudent” for the Philippine government to follow up on its capital market development plan for 2013 to 2017, according to the OECD. “Incidentally, capital market development issues are not discussed in detail in the Philippine Development Plan 20172022, and delivery of progress reports on the capital market development plan seems, according to information on the website of the Securities and Exchange Commission, to have ceased in December 2014,” the report read. “Although the Central Bank helps harness more bank resources for this purpose through its regulations [as mentioned earlier], traditional bank loans will not considerably close the funding gap unless domestic loan syndication activity gains traction. Domestic bond and equity markets in the Philippines need at least to catch up in terms of depth with the country’s regional peers,” it added.
quorum and distribution of [bicameral conference committee report] approved copies to the members,” Zarate said. The lower chamber ratified the congressional bicameral conference committee report last December 13. “The majority of our poor people will suffer more and would be mired further into poverty with the expected spike in the prices of major basic commodities and services beginning this month,” he said. “This ‘price shock’ would definitely hit the poor the hardest considering that they do not have higher takehome pay due to TRAIN but have to shell out more money due to it, he added. According to Zarate, the TRAIN would kick oil prices up by P2.97 a liter for gasoline, P2.80 a liter for diesel and P3.36 a liter for kerosene. “These would have a severe domino effect on the prices of other products and services which is further aggravated by the VAT increases on these said products themselves. The effect of this ‘price shock’can be crippling to the 15.2 million poor families and even to the whole economy,”the lawmaker said. The government has started implementing the TRAIN on January 1.
For oil and petroleum, the law imposed a tax of P3 for kerosene, P2.50 for diesel, P1 for liquified petroleum gas, while all petroleum products used as input, feedstock, raw materials for petrochem and refining or as replacement fuel are exempted. It, meanwhile, provides that workers earning P250,000 will be exempted from paying personalincome tax. The law also imposed excise tax on coal: P50 per metric ton for the first year, P100 for the second and P150 for the third. The TRAIN said the tax rate to be imposed on sugarsweetened beverages are P6 tax per liter for juices and energy drinks and P12 tax per liter for beverages with high-fructose corn syrup. It said the excise-tax rates for all nonmetallic minerals and quarry resources and all metallic minerals, including copper, gold and chromite, will be doubled. For automotive, it imposed an excise tax of 4 percent for vehicles priced up to P600,000; 10 percent for over P600,000 to P1 million; 20 percent for over P1 million up to P4 million; and 50 percent for over P4 million. The law also eased the rates of estate and donor’s taxes by imposing a unitary tax rate of 6 percent.
DENR. . .
Continued from A12
The order also centralized the processing of ECC applications, in effect, clipping the powers of DENR regional offices in granting ECCs in their respective jurisdictions. The order is covered by department administrative order (DAO) 2017-04, titled “The amendment of DAO 2016-07 dated May 19, 2016, on manual of authorities on technical matters.” At the same time her announcement also saw 10 companies having been issued show-cause orders as a result of the initial findings of a team conducting the ECC audit a month before. Prior to the issuance of the show-cause orders, the DENR has issued ECC cancellation orders for several mining projects within or near watersheds. The following week, on January 17, the DENR chief caused the cancellation of four mining projects and two other development projects because of their potential hazard that may compromise important watersheds. Questioning the anti-mining policy of Lopez, the Chamber of Mines of the Philippines (COMP) announced on February 5 its decision to bring up the issue to Malacañang, to appeal to President Duterte about the plight of large-scale mining companies, warning the highest official of the land of the risk of losing potential investors. The appeal was made in response to Lopez’s decision to issue closure or suspension orders affecting 23 large-scale mining operations a few months after issuing the mine audit in the last quarter of 2016. Claiming that the industry is fighting for its life, the COMP, which represents the industry’s big players, also issued a similar appeal to the Mining Industry Coordinating Council (MICC), seeking to set aside Lopez’s orders which they said was made arbitrarily by the DENR chief, in some cases, ignoring even the recommendations of the mine audit teams. Determined to convince the Duterte administration of its commitment to responsible mining, COMP said it also supports Lopez’s campaign but insisted that its members are compliant of the various requirements to operate the mines as mandated by RA 7942, or the Philippine Mining Act of 1995, Executive Order 79, as well as other DENR administrative orders, such as the ISO 14001 certification, which is a seal of excellence in environmental management specifically for mining. On February 14, however, Lopez went on with her campaign against mining, this time, ordering the cancellation of 75 mineral production sharing agreements (MPSAs) and one financial and/or technical assistance agreement (FTAA) for inactive mining projects within or near watersheds, a move hailed by environmental groups but again, criticized by mining proponents. Justifying her decisions and further asserting her conviction that the economy will grow even without mining through sustainable management of the country’s natural resources and conservation of its rich biodiversity, Lopez launched the DENR-United States Agency for International Development (USAID) P1.2billion biodiversity-conservation project called “Protect Wildlife Project.” The project highlights the need to fight threats posed by wildlife trafficking, illegal fishing, land-use conversion, irresponsible mining and indifference of stakeholders. As Lopez was relentless in her campaign, the COMP mounted a campaign against the DENR chief, officially declaring its opposition to her appointment before the CA. The COMP slapped Lopez with graft charges through then-COMP Chairman Art Dissini and Vice President for Policy and Legal Ronald Recidoro before the Office of the Ombudsman against for alleged violation of RA 3019, or the Anti-Graft and Corrupt Practices Act; and RA 6713, or the Code of Conduct and Ethical Standards for Public Officials and Employees. Lopez, the sole respondent in the case, allegedly acted without due process in ordering and publicly announcing the closure of 23 mines and suspending five others. Unfazed by the strong opposition in her confirmation by the CA, Lopez rolled out an Integrated Area Development Plan (IADP) for Aroroy, a gold-rich town in Masbate province in partnership with Filiminera Resources Corp., Philippine Gold Processing and Refining Corp. and the local government unit of Aroroy. The IADP, the first accord under the DENR DAO 2017-02 signed by Lopez, calls for the formulation and implementation of a six-year Sustainable Integrated Area Development (SIAD) Action Plan by the government, civil society and the private sector. The SIAD is “an approach, a strategy and a guiding philosophy that weaves environmental considerations with social justice and human development”and is aimed at applying area-based interventions and concepts on natural resources development programs. This was followed by the launching of Lopez’s pet project, the promotion of “green economy models” (GEMs) to provide a transition to the agency’s programs and projects to give premium to the environment while providing well-paying and decent jobs to communities. DAO 2017-08 signed by Lopez contains the guidelines for the shift to GEMs, where community members could create sustainable goods and services for the rehabilitation of degraded ecosystems. Lopez, a staunch environmental advocate before her assumption to top DENR post, said shifting to a green economy will create opportunities for inclusive growth, job creation and poverty reduction. Among the development and rehabilitation activities to be undertaken under the GEMs are the Enhanced National Greening Program, with focus on the expansion of bamboo and mangrove plantations, the biochar program, the Sustainable Coral Reef Ecosystems Management
www.businessmirror.com.ph Program, the Coastal and Marine Environment Program and the National Ecosavers Program. Other activities include ecotourism, mining rehabilitation, pollution mitigation and bioremediation, which is a natural technique in waste management that utilizes the organisms to remove pollutants from a contaminated site. While enjoying the support of environmental groups and advocates, Lopez’s decision to bring in her own team as “consultants”earned the ire of rank-and-file employees of the DENR. The feeling of fear and resentment—fear of getting transferred, or eventually losing their position or worse— jobs that started as a quiet “emotional outburst” among rank-and-file employees triggered by a show-cause order and transfer order affecting two employees—Miriam M. Marcelo, the chief of the personnel division, and Rolando R. Castro, a supervisor at the same unit—exploded with walkout on April 10 and 11. While silent protest, where employees reported for work clad in black, and the one-hour protest the following day during lunch break was not meant to block Lopez’s confirmation by the CA, it did not escape the knowledge of the members of the CA who brought up the issue of sweeping demoralization by her decision to put in floating status several DENR officials and employees. Last April, a few days before her rejection, Lopez issued DAO 2017-10 banning prospective open-pit mining for select ores—gold, copper, silver and complex ores. Lopez was eventually rejected by the CA last May, declared by her supporters as “a sad day for the environment,” giving miners renewed hope. While resenting Lopez’s rejection by the CA, Duterte named Cimatu as her replacement and a turn-over was held, which saw the former Armed Forces of the Philippines chief of staff taking over the DENR. COMP has vowed to lobby for the reversals of what they describe as Lopez’s anti-mining policies through Cimatu. In his acceptance speech, Cimatu vowed to listen to all voices and make full use of the power and resources of his office to ensure that various concerns will be properly and judiciously addressed. Cimatu’s first official act was to strengthen the security protocol of the DENR for the protection of the agency’s officials and employees. The media-shy Cimatu coursed the order through a memorandum, wherein employees were reminded to strictly observe existing security protocol prohibiting the publication or giving out of mobile numbers, residence address and residence telephone number/s of DENR officials and personnel. A memorandum, dated May 15, 2017, signed by Environment Undersecretary for Administration, Finance and Management Demetrio L. Ignacio Jr. claimed that several reports have been received regarding attempts, such as extortion from DENR officials, personnel and external clients, by criminal elements who appear to be taking advantage of the transition period in the agency. The order is anchored on RA 6713, otherwise known as the Code of Conduct and Ethical Standards for Public Officials and Employees, which prescribes a policy of full public disclosure of all its transactions involving public interests. Within a few weeks upon taking over as the DENR’s top official, Cimatu gave a mining company operating in Brooke’s Point, Palawan, Ipilan Nickel Corp., a taste of his resolve to discipline erring mining companies. He ordered the company to stop its tree-cutting activities within and outside its mining tenement, earning the official praise for the decision. But the support for Cimatu easily waned after in the first week of July, the DENR chief ordered to restore the ECC processing function to DENR regional offices, a reversal to Lopez’s order that centralizes ECC processing. DAO 2017-18 signed by Cimatu aims to address the problem brought about by Lopez’s order as part of a review process covering the hundreds of ECCs granted or approved by DENR regional offices. With Cimatu’s order, the processing of pending ECC online and/or manual applications can now proceed pursuant to Administrative Order 42, Series 02 and DAO 2016-07. The order also tasked the Environmental Management Bureau, which is processing the ECC applications, to undertake a further review of the environmental impact-assessment procedures and policies and to recommend to the DENR secretary possible amendments or revisions. Cimatu, on July 25, and apparently taking the cue from President Duterte, vowed to prioritize environmental protection over mining interest. Cimatu cited Duterte’s very strong point in his second State of the Nation Address with his pronouncement that the protection of the environment must be made a priority over benefits derived from mining. To ensure responsible mining, he said the DENR will strictly enforce mining and environmental laws. Cimatu also took on the issue of illegal logging, and bared plans during one of the executive committee meetings within the DENR of the idea of arming forestprotection officers for their own protection against armed groups engaged in illegal logging and wildlifetrafficking activities. The plan, however, is still under review and consideration. Mining operations found violating laws, rules and regulations, Cimatu added, would have to pay the price for damages caused, through payment of fines, suspensions or outright closure. Under his watch, mining companies are relieved and have seen a renewed hope of revival for the industry that severely suffered from Lopez’s 10-month crackdown. All eyes are on the new DENR chief as he is set to decide on a number of policy pronouncements and orders issued by his predecessors, including the mine closure and suspension orders, the cancellation of the 75 MPSAs and 1 FTAA and the ban on open-pit mining.
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Editor: Vittorio V. Vitug • Wednesday, January 3, 2018 A3
Palace questions Callamard’s ‘credibility’ to probe EJKs
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By Elijah Felice E. Rosales
@alyasjah
fter slamming United Nations Special Rapporteur Agnes Callamard for her criticisms on the government’s war on drugs, Malacañang is now questioning her “credibility” to investigate human-rights violations for her purported lack of experience in the field.
Black Nazarene fever
A woman sells replica images of the Black Nazarene near Quiapo Church in Manila as part of the forthcoming yearly celebration of the Feast of the Black Nazarene on January 9. ROY DOMINGO
In a radio interview on Tuesday, Presidential Spokesman Harry L. Roque Jr. said Callamard does not possess the credentials to serve as rapporteur on human-rights violations. He noted the UN expert specializes on freedom of expression, and admits she is top caliber on that field, but claimed she does not have the capacity to investigate extrajudicial killings. “Pero itong si Agnes Callamard, hindi ko nga maintindihan kung bakit siya ay naging expert on illegal killing kasi kakilala ko iyan; ang larangan talaga niya iyong freedom of expression. So, sige, aaminin ko eksperto iyan sa freedom of expression [I don’t understand how Agnes Callamard became an expert on illegal killings because her area of expertise is on freedom of expression. I would admit, she really is an expert on freedom of expression],” Roque said. “Dapat ang kinuha niyang puwesto special rapporteur on freedom of expression, dahil mayroon namang ganoon. Pero para maging
special rapporteur siya ng extrajudicial killing, hindi ko alam kung ano ang kanyang special qualification [She should have applied to become special rapporteur on freedom of expression, because there exists such a position. But to become a special rapporteur on extrajudicial killings, I don’t know what special qualification she possesses],” he added. Malacañang and Callamard were at it in recent months for the latter’s criticisms of the war on drugs. Callamard is one of the many
strong critics of President Duterte’s antinarcotics campaign, which, she claims, like most human-rights groups here and abroad, to have killed thousands of innocent lives mostly in urban-poor communities. Callamard recently defended Manila’s special rapporteurs against Roque’s comments. The Palace official told the Philippine rapporteurs to not embarrass the government by claiming there were human-rights violations committed by the military against indigenous peoples, mainly in Mindanao. To this, Callamard said the UN experts will not be cowed by anyone’s warnings, least that of Roque. She said when public officials choose lies over truth, it is because they have much to hide. It is in this exchange of heated words that Roque raised Callamard’s portfolio against her, saying first of all, she does not deserve to speak as an expert on extrajudicial killings. He said the special rapporteur does not even stand up in court to prosecute criminals accused of murder, adding she does not even have her own investigation on the reported spate of killings in the country.
I don’t understand how Agnes Callamard became an expert on illegal killings, because her area of expertise is on freedom of expression. I would admit, she really is top caliber on freedom of expression.”—Roque
Full implementation of SC’s eSubpoena system for policemen set By Joel R. San Juan
@jrsanjuan1573
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HE Supreme Court (SC) is now set to fully implement the electronic subpoena system or eSubpoena in trial courts nationwide, a system that is expected to speed up court proceedings involving police officers. The SC, through Court Administrator Jose Midas Marquez, issued Circular 224-2017 to all first, and second-level courts that have undergone training for the project to start implementing the eSubpoena system. The circular, which was issued on December 21, also tasked lower courts with connectivity issues to use contingency measures and implement the program immediately. “Pending full connectivity of all the courts nationwide, those courts, which have no signal or are experiencing intermittent Internet signals in their stations are directed to use available Internet facilities in their respective areas and utilize the monthly extraordinary and miscellaneous expense allowance provided to the judges in sending the eSubpoena,” the administrative order read. Marquez, who supervises all regional
trial courts, metropolitan trial courts, municipal trial courts and other local courts in the country, also reminded the courts and the Philippine National Police (PNP) to strictly accomplish the feedback section in the system. He lamented that over 52,000 subjects issued with eSubpoena did not have feedback, disabling the effective monitoring of attendance of summoned police officers in court hearings. Marquez, likewise, tapped the SC’s Management Information System Office to handle courts that still do not have accounts or need to restart their password for the modernization. The eSubpoena was approved by the SC in April 2014 in partnership with the PNP as part of the judiciary-modernization program. It was intended to ensure the attendance of police officers when called to testify in criminal cases. The program is aimed to address the absences of police officers in hearings, which had previously led to the thrashing of thousands of cases—mostly drug cases—and the prolonged detention of suspects that further
Too late the hero: Peza suspends mall, BPO company in deadly Davao City fire By Catherine N. Pillas
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@c_pillas29
he Philippine Economic Zone Authority (Peza) has issued suspension orders for both the New City Commercial Center (NCCC) mall in Davao City as an ecozone developer and business-process outsourcing (BPO) firm Research Now SSI following a deadly preChristmas blaze that killed 37 BPO workers. Peza Director General Charito B. Plaza announced the suspension, which took effect last week, after it was initially discovered that SSI has been remiss in complying with Peza’s requirements for fire safety since 2013. “NCCC mall got their building and fire permit from the local government unit [LGU] from the time it was constructed and every year thereafter. Peza also issues an annual fire-inspection permit once they register with us, which was in 2008. They stopped complying since 2013,” Plaza revealed. A deadly fire broke out at the third floor of the NCCC mall last December 23, claiming the lives of 37 BPO employees who were trapped in the firm’s premises. SSI was allegedly noncompliant with fire safety-inspection requirements of Peza, which
include submitting the latest preventivemaintenance test records of fire extinguishers, emergency lights, fire detection and alarm system. The company also did not conduct fire-exit drills. Even with this noncompliance, the BPO company still enjoyed government incentives such as the coveted multiyear income-tax holidays. “That’s something we missed, and we’re trying to correct,” Plaza said. Peza underlined, as per the Department of Justice’s (DOJ) opinion, the responsibility lies with the Bureau of Fire Protection (BFP) at the local government level. “The suspension [for NCCC and the SSI] stays until cleared by authorities. Essentially, we’re deferring to other authorities, such as the BFP and LGU, which are already undertaking their respective investigation,” Peza Deputy Director General for Operations Mary Harriet O. Abordo added. Peza will be finalizing a memorandum of agreement with the BFP, which, since the fire in Resorts World Manila last year, has been designated by Justice Secretary Vitaliano N. Aguirre II to implement the Fire Code in Pezaregistered establishments.
contribute to jail congestion. Under this system, court personnel enter the details of the subpoena in the PNP’s database using an eSubpoena form. Once sent, the PNP unit’s court process
officer acknowledges the receipt and will inform the police officer being summoned. Within three days from the receipt of the eSubpoena, the PNP is mandated to inform the court of the summoned officer’s avail-
ability for the hearing. Police officers who will fail to appear in a hearing despite receiving the summon through the eSubpoena system may face administrative and criminal actions.
Economy
A4 Wednesday, January 3, 2018 • Editors: Vittorio V. Vitug and Max V. de Leon
BusinessMirror
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Palace won’t allow ERC ‘paralyzation’–Roque
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alacaÑang is not allowing the Energy Regulatory Commission (ERC) to be “paralyzed,” as it assured the public the Executive branch is studying all options to address the problem inside the agency. Presidential Spokeman Harry L. Roque Jr. made this assurance on Tuesday in response to ERC Chairman and CEO Agnes Devanadera’s earlier warning of massive blackouts following the year-long suspension of all ERC commissioners by the Office of the Ombudsman, which she said would lead to “severe paralysis” of the country’s power industry. Citing Executive Secretary Salvador C. Medialdea, Roque said in a radio interview Malacañang is studying the issue carefully, including the basis of the Ombudsman to suspend ERC Commissioners Alfredo Non, Gloria Yap-Taruc, Josefina Patricia Magpale-Asirit and Geronimo Sta. Ana, and whether President Duterte would terminate them. But Roque claimed the problem lies with the fixed term of those at the ERC. He added the option raised by Presidential Chief Legal Counsel Salvador Panelo to appoint an officer in charge might be feasible. “Isang posibilidad din po. Pero ang malinaw po hindi po pupuwedeng ma-paralyze ang ERC dahil napaka-importante po ng papel na ginagampanan ng tanggapan na iyan [That’s a possibility. But what is clear is that ERC
Senate panel eyes separate investigation on Dengvaxia
cannot be paralyzed because of the office’s very important role],” Roque said. He added the President would do something about it and they just could not disregard the suspension order on the officials because the office would get paralyzed. Roque supports Panelo’s suggestion to have an officer in charge appointed to the ERC. PNA
That [appointment of an officer in charge] is a possibility. But what is clear is that the ERC cannot be paralyzed because of the office’s very important role.” —Roque
By Butch Fernandez
@butchfBM
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Shoe wonderland A boy appears to be fascinated by an avalanche of shoes around him and his mother at a shoe thrift shop in
Zamboanga del Sur. Nonie Reyes
‘Smoke belching’ factories operate sans permit, ECCs By Jonathan L. Mayuga @jonlmayuga
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hile highly urbanized cities continue to struggle to clear the streets of smokebelching vehicles, there are factories that continue to emit toxic fumes. Worse, these factories are operating without a permit to operate and without the mandatory environmental clearance certificate (ECC) from the Environmental Management Bureau (EMB), a line bureau of the Department of Environment and Natural Resources (DENR), an environmental group said. Clean Air Philippines Movement, Inc (Capmi), through its president Manuel J. Galvez, said they have discovered that some factories emitting deadly smoke are able to operate without a permit and an ECC, a basic requirement for business operation in the Philippines. According to Galvez, the air pollution brought about by the operation of these factories pose as “a clear and present danger” and serious risks to the health of the general public, especially the factory workers inside these establishments. The group is urging the DENR and the Department of Labor and Employment to seriously look into the illegal operations of factories that emit toxic fumes, either because of the obsolete or outdated machines or equipment and the technology that they use in violation of the Clean
Air Act, which puts factory workers in grave danger of acquiring respiratory problems. Last October Capmi filed various complaints at the EMB against Melter Steel Corp., Real Steel Corp., Wan Chiong Steel Corp., all in San Simon, Pampanga, Davao Mighty Steel Corp. in Davao and MetroDragon Steel Corp. in Caloocan City for various violations of the Clean Air Act and the Environmental Impact Assessment, or ECC law of the Philippines. Republic Act 8749, or the Clean Air Act of 1999, is the law that protects air quality, while an ECC is a vital requirement before any industrial establishment can be given the needed permits to engage in a business. “We filed the necessary complaints against certain smoke-belching factories nationwide months ago, but until now we still await the decisive action of the EMB to quickly resolve the deadly air pollution that these factories are producing,” Galvez said in a news statement. “On behalf of the unwilling victims who are continuously being exposed to the dangerous air pollution from these steel mills, we are appealing to the government to immediately put a stop to this environmental crime. Each day of inaction clearly results to another day of life threatening air-pollution exposure that our people in these areas are subjected to,” Galvez finally said.
he Senate Committee on Health is mulling over separate hearings on the Dengvaxia controversy to focus on the publicsafety aspects of the “ineffective” anti-dengue vaccine injected to over 800,000 schoolchildren, apart from the ongoing blue-ribbon panel inquiry into potential “malfeasancemisfeasance” liabilities of Aquino administration officials involved in the allegedly overpriced P3.5-billion drug purchase. Joseph Victor Ejercito, health committee chairman, on Tuesday said their follow-up inquiry will also look into potential liability of Sanofi Pasteur, the French pharmaceutical company that supplied the Dengvaxia vaccines to the Department of Health (DOH). Sen. Ejercito confirmed plans to conduct the Health Committee’s Dengvaxia hearings when Congress, now on extended Christmas recess, reconvene regular sessions on January 15, “or early-February.” The senator assured reporters the Dengavaxia controversy has not been “forgotten,” and the pending issues will be addressed soon after the Senate returns to work. Ejercito clarified that while the Blue Ribbon Committee probers are focused on the potential liabilities of Aquino administration officials, his separate committee inquiry will review how the DOH officials monitored the status of dengvaxia-vaccinated 800,000 children. He added the Health Committee will also look into Sanofi Pasteur’s role in monitoring the schoolchildren inoculated with Dengvaxia. Ejercito said Senate probers are also keen to verify reports reaching the Health Committee the Dengvaxia vaccines were overpriced, allegedly costing P1,000 per injection, jacking up the total cost to P3.5 billion paid by the Aquino administration. But the senator hastened to clarify they have no plans yet to invite former President Benigno S. Aquino III to appear before the upcoming Health Committee hearings. Ejercito recalled that Aquino already testified before the Blue Ribbon Committee, which has jurisdiction on issues involving possible anomalies and irregularities attending government’s “hasty” purchase of the multibillion-peso vaccine supply.
House aims passage of Traffic Crisis Act this month–solon
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he House of Representatives is eyeing the passage of the proposed Traffic Crisis Act this January, a lawmaker said on Tuesday. House Committee on Transportation Chairman Cesar V. Sarmiento of the Lone District of Catanduanes said the plenary debate on House Bill (HB) 6425, or the proposed Traffic Crisis Act, will start when Congress session resumes on January 15. “It will be calendared for plenary debate when we resume session in mid-January,” Sarmiento said. “[The measure] is replete with easily implementable programs that have immediate and far-reaching implications in our transportation sector in contrast to the big-ticket transportation projects, which usually take years to complete,” he added. In 2016 President Duterte asked Congress to grant him emergency pow-
er to address the immense and growing traffic problem in the National Capital Region and major cities in the country. The bill is one of the priority measures of the 17th Congress. It was authored by House Speaker Pantaleon D. Alvarez, Majority Leader Rodolfo C. Fariñas and Sarmiento. Moreover, Sarmiento said the measure would pave the way for the creation of a single traffic authority, headed by a traffic czar who will be appointed by President Duterte. “The traffic czar is expected to come up with a traffic-management plan within 90 days that will harmonize and unify all existing traffic regulations in the affected areas,” Sarmiento added. Earlier, Party-list Rep. Carlos Isagani Zarate of Bayan Muna urged the leadership of the lower chamber to reconsider the HB 6425 in the committee level. Zarate said the recent transport
strikes highlighted the need to further scrutinize the measure, which will essentially “phase out and not modernize the iconic public-utility jeepneys.” “Based on our study, the perceived solution to the worsening traffic problem being espoused by the bill is to control public-utility vehicles (PUV) or, in other words, our public transportation,” Zarate said However, he said, the bill is oddly silent on the regulation of private vehicles. “In other words, its main purpose is just to corporatize public transportation. In particular, on Section 16, where the transport chief is vested with the authority to revoke, modify the franchise and permit,” he said. According to Zarate, the bill also states that after the route rationalization, franchises can only be given to operators with appropriate capacity to serve the routes. Jovee Marie N. dela Cruz
Agriculture/Commodities BusinessMirror
www.businessmirror.com.ph
Editor: Jennifer A. Ng • Wednesday, January 3, 2018
Farmers to get ₧182M for typhoon losses By Jasper Emmanuel Y. Arcalas
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@jearcalas
ore than 20,000 farmers in Mindanao whose crops were destroyed by Typhoon Vinta (international code name Tembin) will receive P182 million in insurance payments from the government, according to the Department of Agriculture (DA).
“A total of P182 million in insurance payments will be ready for release this week to over 20,000 farmers in six regions in Mindanao,” Agriculture Secretary Emmanuel F. Piñol said in a Facebook post. “Payments for farmers in the Zamboanga Peninsula and Northern Mindanao will be released on January 4 and 5 when I and other DA and the Bureau of Fisheries and Aquatic Resources visit the typhoon-devastated areas,” he added. Citing Philippine Crop Insurance Corp. (PCIC) President Jovy Bernabe, Piñol said the bulk of the
total insurance payments, or nearly 30 percent, will be given to farmers in Region 12. Piñol also said 5,284 farmers in the Davao region would get insurance payments totaling P50.1 million. The PCIC pegged the indemnity for 3,348 typhoon-affected farmers in Zamboanga Peninsula at P18.5 million. The PCIC, an attached agency of the DA, will insure 5,872 farmers in Region 12 amounting to P53.4 million. A total of 4,439 farmers in Northern Mindanao will also be insured. Piñol sa id 1,735 far mers in Caraga region and 162 farmers in the Autonomous Region in Muslim Mindanao affected by Vinta will also be covered by the PCIC. He added he is scheduled to meet the DA’s regional directors in Mindanao to assess and evaluate the extent of the damage caused by the typhoon. T his would a l low the DA to
NFA apprehends 2,561 rice sellers for various violations
T In this photo made from video by Aclimah Disumala on December 22, 2017, villagers cross raging floodwaters in Lanao del Norte, Zamboanga Peninsula. A tropical storm has unleashed flash floods and set off landslides in Mindanao, leaving dozens of people dead. Aclimah Disumala via the AP
Ukraine’s ban on selling farmland is choking the economy, agri firms say
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he 1,400 acres of snowy farmland being churned into thick black mud by grumbling trucks and house-high red harvesters could be a picture of rural prosperity. Instead, the early winter scene about 250 miles west of Kiev illustrates Ukraine’s failure to drag its most historically significant industry into the 21st century and help its economy recover from the country’s violent conflict. Mriya Agro Holding Plc., the company hauling away the last of the sugar beet crop, owns none of the wide-open field. Under the snow, it’s a patchwork of 270 individual plots that the company leases for three to five years each. The peasants, who were bequeathed the land after the fall of communism, aren’t allowed to sell, and the company isn’t allowed to buy, so it has little incentive to spend any money to increase the harvest. “If the company is the owner, it would be possible to invest more,” says Viktor Tarchynskyi, a foreman for Mriya. “Germans put in complex fertilizers every five years. We can’t afford to do that.” Few things define Ukraine more than farming. Its people have lived, toiled and starved on the land for centuries, and their economic and political struggles are dug deep into the soil. It is here that Stalin’s forced collectivization drive exacted its heaviest toll. More than 6 million Ukrainians perished in the 19321933 famine. One enduring legacy of that painful history is that land reform has been too sensitive for successive governments to tackle. Ukraine tallied $13 billion in agricultural exports in the Januaryto-September period, equal to about 40 percent of total exports. The country is among the world’s top producers of sunflower oil, barley, wheat and corn. Still, there’s huge untapped potential: While Ukraine
boasts one of the world’s richest concentrations of fertile black soil, its crop yields are among the lowest in Europe. Like so much in the region, it all harks back to the messy transition from communism to capitalism. Following the dissolution of the Soviet Union in 1991, Ukrainians, whose forebears had been victims of collectivization, were awarded parcels of land averaging 4 acres and together totaling 166,000 square kilometers (64,000 square miles), or an area almost the size of Florida. In 2001 Kiev passed a law prohibiting the sale and purchase of these plots, a ban that has been extended nine times. More than 4 million Ukrainians—most of whom are now beyond retirement age—earn an average of $190 a year, or the equivalent in grain, sugar or other commodities, by leasing out a 4-acre plot. The government has been under pressure from the International Monetary Fund and companies, such as Mriya Agro, to lift the ban. “This is a huge challenge for all of us,” says Simon Cherniavsky, Mriya CEO. “We are all farming on shortterm leases, which is not in line with the long-term returns that everyone expects to get in agriculture.” Ukraine’s parliament voted on December 7 to extend the moratorium through January 1, 2019, while some argued for an extension to 2024. Without it, foreign companies from the European Union or the United States would flood into Ukraine, lawmakers say. “Land will be taken from people for pennies,” said Oleh Lyashko, the leader of the Radical Party, in the debate before the vote. “And the land that is supposed to feed their grandchildren and children will feed large property barons and representatives of power structures.” Larysa Hrynevych, 42, a Kiev resident, inherited two plots an hour outside of the capital from her
grandparents about a decade ago. She says she is happy to lease out the land to a small company that plants sunflower, corn and soybeans, as she is not about to move to the countryside to become a farmer. The arrangement earned her 11,500 hryvnia ($410) last year. “It’s good support for local people,” she says. “They can choose how they get paid.” Nevertheless, calls to rescind the moratorium are getting louder as Ukraine’s economy continues to lag such other former communist countries as neighboring Romania and Poland. Gross domestic product contracted by a cumulative 16 percent in 2014 and 2015 because of the conflict in the east with Russian-backed separatists and growth has been tepid since. Though agriculture is the largest single contributor to goods sold abroad, a World Bank report published on October 3 said that farm productivity and yields in Ukraine are a fraction of what they are in other European countries, blaming the land law. Wheat yields are less than half of those in Germany, it noted. Agroindustrial companies say they would be able to boost yields and make higher profits if they owned the land they farm. Myronovskiy Hleboproduct SA, a Ukrainian poultry producer that also grows wheat, sunflowers and other crops, says the cost of having to manage hundreds of individual leases is a drag on investment, particularly at a time when wheat prices are depressed. “Given the present level of grain prices, the cost of leasing land, and the headache associated with extending lease agreements, it’s very expensive to expand the areas we farm,” says Yuriy Kosyuk, its CEO. As long as the ban remains in place and the wheat market stays depressed, the company is unlikely to expand its farming operations, he says. Bloomberg News
he National Food Authority (NFA) said it has apprehended 2,561 grains businessmen and collected P14 million in penalties, administrative fines and other fees in 2017. The NFA, an agency attached to the Office of the President, inspected a total of 39,407 grains business establishments nationwide and noted 3,421 violations, such as non-renewal of NFA license, operating without license, noncompliance to the prescribed rice box and display of price tags and signboards. “Being the Filipinos’ basic staple food, rice should always be available, accessible, affordable and safe for consumers anytime and anywhere across the country,” NFA Administrator Jason L.Y. Aquino said in a statement. Aquino added the food agency collected P12.2 million in penalties and enforcement fees, and P1.8 million in administrative fines and other fees from violators. He said he instructed all NFA enforcement agents and monitoring teams to be “very vigilant” in watching over the rice market. Aquino also warned grains traders to refrain from doing illegal activities. As part of its industry regulation and development program, the NFA conducts monitoring of the grains market and businessmen; enforcement of rules and regulations governing grains business; licensing and registration of all rice and corn business; and promotes “harmonious and productive relationship” among rice and corn industry stakeholders. Aquino noted that under Presidential Decree (PD) 4, which created the NFA, the agency is empowered by law “to inspect palay, rice, and other grains stored by any person, partnership, corporation or association, for purposes of taking inventory and record of such commodities”. He added the NFA is also authorized “to order the seizure, when there is hoarding of rice and other grains products, including facilities and equipment used in said hoarding, or whenever there is a scarcity of supply in such commodity in the consumer market and/or an unwarranted increase in the price”. In 2016 the NFA recorded 3,155 violations by 2,404 grains businessmen and was able to collect P19.67 million in fines and enforcement fees. “Our constant market monitoring did not only keep the price of rice stable at P35 to P42 per kilogram but we were also able to keep the grains retailers from unnecessarily increasing their retail price based on market speculation or manipulation of big rice traders,” Aquino sa id i n a st atement re lea sed i n October. Jasper Emmanuel Y. Arcalas
determine what other interventions could be delivered in the t y phoon-affected areas during his two-day sort ie in Za mboa nga Peninsula and Northern Mindanao, according to Piñol. A report from the DA indicated that as of December 28,
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typhoon-affected famers have incurred losses amounting to P234.91 million. The department said the typhoon affected 19,240 hectares of agricultural areas in Regions 9, 11, 12 and 13. The production loss was pegged at 4,803 metric tons.
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Wednesday, January 3, 2018
The World BusinessMirror
Editor: Lyn Ressureccion | www.businessmirror.com.ph
Trump effect: Business, anticipating less regulation, loosens purse strings
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ASHINGTON—A wave of optimism has swept over American business leaders, and it is beginning to translate into the sort of investment in new plants, equipment and factory upgrades that bolsters economic growth, spurs job creation—and may finally raise wages significantly.
W hile business leaders are eager for the ta x cuts that take effect this year, the newfound con f ide nce w a s i n it i a l ly i nspired by the Trump administration’s regulator y pullback, not so much because deregulation is saving companies money but because the administration has instilled a faith in business executives that new regulations are not coming. “It’s an overall sense that you’re not going to face any new regulatory fights,” said Granger MacDonald, a homebuilder in Kerrville, Texas. “We’re not spending more, which is the main thing. We’re not seeing any savings, but we’re not seeing any increases.” The applause from top executives has been largely reserved for the administration’s economicpolicy agenda. Many chief executives have been publicly critical of President Donald J. Trump’s approach to social and cultural issues, including his response to a white nationalist march over the summer in Charlottesville, Virginia, that turned deadly and his decision to withdraw from the Paris climate accord. Two of the business advisory councils that Trump assembled in the nascent days of his presidency disbanded after executives grew concerned about his public remarks on the violence
in Charlottesville. There is little historical evidence tying regulation levels to growth. Regulatory proponents say, in fact, that those rules can have positive economic effects in the long run, saving companies from violations that could cost them both financially and reputationally. Cost-benefit analyses generally do not look just at the impact of a regulation on a particular business’ bottom-line in the coming months, but at the broader impact on consumers, the environment, public health and other factors that can show up over years or decades. But in the administration and across the business community, there is a perception that years of increased environmental, financial and other regulatory oversight by the Obama administration dampened investment and job creation—and that Trump’s more hands-off approach has unleashed the “animal spirits” of companies that had hoarded cash after the recession of 2008. Some businesses will essentially be able to get away with shortcuts they could not have under a continuation of Obamaera policies. The coal industry, for instance, will not have to worry about a regulation, overturned by Congress and Trump, that
Hollywood celebs join launching of coalition to work vs harassment
Coal-power pace slows in India as glut leaves plants unused
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EW YORK—Reese Witherspoon, Shonda Rhimes and Jennifer Aniston are among hundreds of Hollywood women who have formed an antiharassment coalition called Time’s Up. The initiative (www. timesupnow.com ) was launched on Monday with an open letter vowing support for women in the entertainment business and beyond, from janitors to healthcare workers. Time’s Up will include a legal defense fund and will advocate for legislation combatting workplace harassment. Time’s Up also is backing the movement for women to wear black, in solidarity with those who have been sexually harassed, at Sunday’s Golden Globes ceremony. Donators to Time’s Up defense fund range from Meryl Streep and Taylor Swift to J.J. Abrams and Viola Davis. Dozens of men have faced harassment and assault allegations in recent months, including Harvey Weinstein, Charlie Rose and Kevin Spacey.
AP
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ndia is add ing t he lea st amount of coal-fired power in more than a decade as tepid demand from indebted state retailers fails to utilize the nation’s existing generation capacity. Coal-fired capacity, which accounts for more than three quarters of the nation’s electricity, rose by 809 megawatts (MW) during the April-to-November period, according to Bloomberg calculations based on the latest available data from the Central Electricity Authority, the planning wing of the power ministry. T h a t ’s t h e s l o w e s t p a c e si nce 6 8 0 M W wa s added du r ing t he sa me eight-mont h st retc h i n 20 0 6. Power producers have canceled some coal-fired projects as existing plants fail to sell all the electricity they can produce. Nearly 40 percent of the country’s coalbased capacity is unused because the core customers—state-managed distribution companies— struggle to increase purchases in the face of massive debts and losses through electricity theft, insufficient metering and selling power below cost. The inability of state distributors to utilize existing plants leaves India with a glut of capacity while still nearly 300 million
President Donald J. Trump at a news conference where he said that he had rolled back 22 regulations for every new one in the Roosevelt Room of the White House, on December 14, 2017. After years of blaming excessive federal regulation for holding back investment and job creation, businesses are beginning to increase spending and investment, instead of hoarding cash. Doug Mills/The New York Times
would have protected streams from mining runoff. Brett Hart, government affairs director at the Center for Biological Diversity, said the Trump administration might avoid bigsplash regulatory rollbacks this year and instead would make it harder for federal agencies to block business expansion. “It’s not going to be sexy things like ‘We’re killing the Clean Power
Plan,’” Hart said, referring to the Obama-era rule aimed at curbing greenhouse-gas emissions from coal-fired power plants. “But you can make it systematically harder for an agency to do the right thing.” Only a handful of the federal government’s reams of rules have actually been killed or slated for elimination since Trump took office. But the president has declared that rolling back regulations will
The notion that deregulation unleashes growth is virtually impossible to find in the data. What does matter is this idea that confidence matters. If their expectations about the future are positive, then it does make a difference.”—Bernstein
Indians, mostly rural, remain without access to electricity. P r i me M i n i s te r Na re nd r a Modi ’s administration, which came to power in 2014 promising electricity for all, has launched ambitious programs to br ing electricity to every household by December 2018. “Financially, the distribution companies are still not out of the woods and there isn’t enough demand to use up all the power capacity,” said Debasish Mishra, a partner at Deloitte Touche Tohmatsu Llp. in Mumbai. “Netcapacity additions for coal may fall even lower in coming years as some of the older plants get phased out.” A rapid increase in renewable power on the back of Modi ’s pledge to provide clean energy is exacerbating the glut. From April to November, the country added 4.8 gigawatt (GW) of renewable capacity, according to the Ministry of New and Renewable Energy. That’s almost sixfold the additions for coal. I nd i a won’t re qu i re a ny ne w coa l - f i re d c apac it y u n t i l at le a st 2027 b e yond t he 50 GW a l re ady i n t he work s, Ce nt r a l E le c t r ic it y Aut hor it y e st i m ate d i n D e ce mb e r 2016 . Bloomberg News
be a defining theme of his presidency. On his 11th day in office, Trump signed an executive order “on reducing regulation and controlling regulatory costs,” including the stipulation that any new regulation must be offset by two regulations rolled back. That intention and its rhetorical and regulatory follow-ons have executives at large and small companies celebrating. And with tax cuts coming and a generally improv ing economic outlook, both domestically and internationally, economists are revising growth forecasts upward for last year and this year. Even before it bec a me c lea r t hat Republ ic a ns wou ld pa ss a m ajor t a x c ut , c apit a l s pendi n g h ad r i s e n s i g n i f ic a nt ly, c l imbing at an annua l ized rate of 6. 2 percent du r i ng t he f i rst t h ree qu a r ters of l a st yea r. Su r ve y s of pl a n ned s pend i ng a l so show i nc rea ses. Tr u mp brag ged i n a news conference last month that he has rol led back 22 reg u lations
for ever y new one— 67 deregu lator y actions, versus three new reg u lations. Often in conjunction with the Republican Congress, his administration has canceled several rules approved at the end of the President Barack Obama’s term, including a regulation on limiting mining debris in streams, a requirement that broadband providers obtain permission from customers to collect and use online information, and a ban on plastic bottles in national parks. Administration officials said last month that since last January, federal agencies have delayed, withdrawn or made inactive nearly 1,600 planned regulatory actions. Further rollbacks will affect financial services, as well as energy and labor rules, among others. And Trump has appointed outspoken critics of regulation to lead several federal agencies, including the Environmental Protection Agency and the Consumer Financial Protection Bureau. T he ev idence is weak that regulation actually reduces economic activity or that deregulation stimulates it. But business executives are largely convinced that the cost of complying with rules diverts money that could be invested elsewhere. And economists see a plausible connection between Trump’s determination to prune the federal rule book and the willingness of businesses to crank open their vaults. Measures of business confidence have climbed to record heights during Trump’s first year. “The notion that deregulation unleashes growth is virtually impossible to find in the data,” said Jared Bernstein, a senior fellow at the Center on Budget and Policy Priorities who served as the chief economic adviser to Vice President Joe Biden. “What does matter is this idea that confidence matters. If their expectations about the future are positive, then it does make a difference.” New York Times News Service
Trump to hold Pakistan aid linked to action against terror
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he United States will continue to withhold $255 million in military aid to Pakistan as the White House reviews the nation’s “level of cooperation” in fighting terrorism, a National Security Council spokesman said. T he a n nou ncement c a me ju st hou rs a f ter Tr u mp i n a t weet sa id t he US h a s “ fooli sh ly ” g iven more t h a n $33 bi l l ion i n a id to t he cou nt r y a nd got ten on ly “ l ies a nd deceit ” i n ret u r n. Trump has “made it clear” that he expects Pakistan to take strong action to fight terrorists and extremism, the spokesman said. The country’s efforts against terrorism “will ultimately determine the trajectory of our relationship, including future security assistance,” the spokesman said. Following Trump’s tweet, Pakistan Prime Minister Shahid Khaqan Abbasi called a Cabinet meeting on Tuesday and a meeting of the highlevel National Security Committee, which includes top civil and military leadership,
on Wednesday, state-run Radio Pakistan reported. The Securities and Exchange Commission of Pakistan has also prohibited a group led by Hafiz Saeed, the alleged mastermind behind the 2008 Mumbai terrorist attacks, from collecting donations, Pakistan’s Dawn newspaper reported on Monday citing a notification from the regulator. S a e e d w a s r e c e nt l y r e leased from house arrest in Lahore, prompting a condemnation from the US State Department, which has labeled him a “specially designated global terrorist.”
Military aid
Pakista n has long posed contradictions for the US: It’s a partner in the fight against terrorism, yet is also the place where Osama bin Laden hid out for years before being killed in a nighttime raid by US Navy Seals. Si nce 2015, t he US h a s denied Pa k istan $650 mill ion i n Coa l it ion Sup por t Fund reimbursements that
cou ld be released only if the U S m i l it a r y ce r t i f ie d t he countr y in ma k ing accepta ble prog ress a g a i n st t he Haqqani net work, which is affiliated w ith the Ta liban. The Pentagon also continues to review whether $400 million that Congress approved for fiscal year 2017, pending a certification, can be released. The fiscal 2018 defense-policy bill earmarks an additional $350 million, which can’t be released until there is a Pentagon certification, as well. Sen. Rand Paul, a Republican from Kentucky, praised the move in a tweet: “I’ve been fighting to end aid to Pakistan for years and will again lead the charge in the Senate. Let’s make this happen.” Trump spent the first morning of 2018 wading into Middle Eastern affairs, with another tweet calling for “a change in Iran” as that country undergoes a rare show of public disapproval, in which as many as a dozen people have died in a series of riots, according to state TV and local reports. Bloomberg News
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N. Koreans hijack computers to mine cryptocurrencies N orth Korean hackers are hijacking computers to mine cryptocurrencies as the regime in Pyongyang widens its hunt for cash under tougher international sanctions. A hacking unit called Andariel seized a server at a South Korean company in the summer of 2017 and used it to mine about 70 Monero coins—worth about $25,000 as of December 29—according to Kwak Kyoung-ju, who leads a hacking analysis team at the South Korean government-backed Financial Security Institute. The case underscores the increasing appetite from cyberattackers for digital currencies that are becoming a source of income for the Kim Jong Un regime. North Korea is accelerating its pursuit of cash abroad as the world tightens its stranglehold on its conventional sources of money with sanctions cutting oil supplies and other trade bans. “Andariel is going after anything that generates cash these days,” Kwak said. “Dust gathered over time builds a mountain.” The hackers may have seized other computers to mine cr y ptocurrencies and appear to prefer Monero because the currency is more focused on privacy and easier to hide and launder than Bitcoin, Kwak said, citing the analysis of the ser ver. Andariel was able to take control of the ser ver undetected by its operator, he added. A cryptocurrency can be earned if a complex mathematical problem is solved, but it requires highpowered computers that often only corporations can afford. Not every company spends as much on protecting their computers from hackers. Yapian, the
owner of bitcoin exchange Youbit, said last December it would close after getting breached. Like Bitcoin, Monero uses a network of miners to verify its trades. But it mixes multiple transactions to make it harder to trace the origin of funds, and adopts “ dual-key stealth ” addresses that make it difficult to pinpoint recipients. South Korean investigators are looking at North Korea among their suspects. The country’s hackers are increasing attacks on cryptocurrency exchanges in Seoul, security researcher FireEye Inc. said last September. The US has also blamed North Korea recently for the WannaCry ransomware attack that affected hundreds of thousands of computers globally in 2017. Hackers demanded Bitcoin in exchange for unlocking the files they had coded with malware. North Korea denies any role in cyber crimes. The majority of attacks from North Korean hackers in the past year have focused on financial gain rather than government secrets, according to researchers dealing with them. The shift of focus may accelerate this year as the UN is stepping up its efforts to cut the flow of funds used by the regime to fuel its nuclear arms development. “North Korean threats meant attacks on the government and national defense, but now they are looming very large over the private sector,” Lee Dong-geun, chief analyst at the governmentr u n Korea Inter net Sec u r it y Center in Seoul, said at a forum. “They are primarily after information for financial ends.” Bloomberg News
Andariel is going after anything that generates cash these days. Dust gathered over time builds a mountain.”—Kwak
Japan emperor greets cheering crowd at palace for new year
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OKYO—Japan’s Emperor Akihito, who is handing the Chrysanthemum Throne to his son next year, was showered with cheers from tens of thousands of New Year’s well-wishers on Tuesday at the Imperial Palace. “Happy New Year,” the 84-yearold emperor said from a balcony. “I wish that this year will prove a gentle and spiritually fulfilling one for as many people as possible.” Crown Prince Naruhito and his wife appeared at the emperor’s side. Masako, a former diplomat, has suffered from stress and has often skipped public events. It’s unclear how she will step up to her upcoming role as empress. Emperors have rarely abdicated in Japan, the last being 200 years ago. Akihito’s father, wartime Emperor Hirohito, died in 1989 of an illness. Akihito’s abdication was set for April 30, 2019, after he expressed his wish to retire because of his age and health concerns. The New Year’s appearance is a rare opportunity for the public to greet the emperor on palace grounds, and this year’s was expected to attract even more people than usual because of his retirement. The other such appearance he makes is for his birthday last December.
T he emperor’s role has been sy mbol ic a f ter Japa n’s defeat in World Wa r II, a nd he a nd t he imper i a l fa m i ly have no pol it ica l powers. Naruhito and Masako have a daughter, Princess Aiko, but only males can inherit the throne. Masako’s not producing a son is widely believed to be related to her stress-related problems. From t he st a r t, when she m a r r ie d Na r u h ito, i n 19 9 3, t he publ ic was aware of t he pressu res she m ight face i n the cloistered tradition-bound royal family. Naruhito, educated at Oxford, made a widely publicized remark that he would “protect Masako.” Nar u hito has a younger brother who has a son among his three children. A kihito and Empress Michiko, the first commoner to marr y into the royal family, are popular in Japan. Although Japan fought World War II in the name of the emperor, Akihito has always stood for peace. Before the royal couple retires, they are expected to visit places that commemorate peace, as well as people who f led their homes after the 2011 tsunami set of f a nuclear disaster in northeastern Japan. AP
Wednesday, January 3, 2018
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China warms up for 2018 ‘critical battles’ as econ cools
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hina’s economy begins 2018 facing what its own leaders call three years of “critical battles.”
Those fights to tackle domestic debt, poverty and pollution pose a hat-trick of risks to the world’s No. 2 economy even before higher interest rates and trade war threats from the United States are taken into account. W hile the nation is starting from a position of streng th, with full-year growth in 2017 poised for its first acceleration since 2010, the expansion is seen slowing in 2018. As a result, the government of Xi Jinping is signaling that it’s sanguine about more modest economic performance, if progress on the top risk—financial fragility—can be made. “Significant economic imbalances continue to create downside risk to the outlook for 2018,” said Rajiv Bissau, chief Asia-Pacific economist at IHS Markit in Singapore. “Risks to the Chinese economy will remain among the key risks to the global growth outlook in 2018, with the AsiaPacific region particularly vulnerable to the shock waves from a slowdown.” Those waves haven’t materialized, and in fact economic activity is holding up. The official manufacturing purchasing managers index (PMI) was at 51.6 last December, signaling improving conditions. New export manufacturing orders also climbed to a six-month high, according to a subindex. The Caixin manufacturing PMI, which is more representative of smaller firms, also showed strong momentum with a reading of 51.5 last December, beating all estimates. However, figures “likely are overstating momentum, particularly in construction,” according to a report by Freya Beamish, chief Asia economist at Pantheon Macroeconomics Ltd. in Newcastle, United Kingdom. “The profit story appears to be deteriorating, as input price rises continue to slow.” Forecasters see expansion slowing to 6.5 percent—the slowest pace since 1990—this year, the following are among areas they flag as having the potential to trip up economic growth or spur market turbulence.
and control financial risk, calling it a pivotal challenge for the next three years. As the financial system opens further to foreign firms, a debt-to-GDP ratio that’s heading toward more than 320 percent by 2022 stands as the main danger. “Even its ow n propaganda mac hine ad mits t hat t his is suc h a ser ious problem t hat Beijing doesn’t ex pect there to be any solution in anything less than three years,” said Pau line Loong, manag ing director at research f ir m A sia-A na ly tica in Hong Kong. “Financial instability is the core problem. Solve that and you ease pressure on capital outf lows, complications from deleveraging, weaknesses in sma l ler banks.”
Financial risks
A man walks past China flags ahead of China’s National Day celebrations on October 1, 2017. Bloomberg
The Communist Party recently renewed its pledge to prevent
Construction slowdown
The tightening of financial and environmental regulations to help curb debt may cause tremors in 2018 that slow housing and inf rastr ucture constr uction, according to Frederic Neumann, cohead of Asian economics research at HSBC Holdings Plc. in Hong Kong. “A sh a r p er - t h a n- e x p e c te d slowdown in construction could thus weigh on broader activity with emerging sectors not yet vigorous enough to provide a sufficient cushion,” Neumann said. “The biggest fault line running through the Chinese economy is the construction sector.”
Trade brawl
U.S. President Donald J. Trump’s recent national security strategy speech was a “tee up” for a turn toward protectionism, says David Loevinger, a former China specialist at the US Treasur y Department. “On the menu for 2018: lots of red meat for the base, and that
Risks to the Chinese economy will remain among the key risks to the global growth outlook in 2018, with the Asia-Pacific region particularly vulnerable to the shock waves from a slowdown.”—Bissau
means bashing imports,” said Loevinger, now an analyst at TCW Group Inc. in Los Angeles. “Since nationalistic populism is as irresistible in China, Chinese politicians will feel compelled to retaliate.”
Fed, tax
If t he US Federa l Reser ve (the Fed) raises interest rates more than markets expect and ta x cuts build on underly ing 3.2-percent growth, the dollar may get a second wind that puts the yuan and capital outf lows under pressure again, according to George Magnus, an associate at Oxford Universit y’s China Centre and former adviser at UBS Group AG. “If the Fed starts hiking and the dollar goes on a bull run, that would cause big problems,” says Christopher Balding, an associate professor at the HSBC School of Business at Peking University in Shenzhen.
North Korea
Should tension between the US and North Korea escalate into a more significant confrontation, there will be profound and farreaching consequences not just for China’s economy but that of the entire Asia-Pacific region, says Zhu Ning, deputy director of the National Institute of Financial Research at Tsinghua University in Beijing. China sent an envoy to North Korea after the Xi-Trump talks. Bloomberg News
Opec wins over hedge funds to make 2017 oil’s most bullish year
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i l bulls are charging into the n e w ye a r w i t h u n p re ce d e nte d v i g o r, a n d t h e c re d i t g o e s to Organization of Petroleum Expor ting Countries (Opec). The signs that the group is w i n n i n g i t s t u g - o f - wa r w i t h s h a l e are compelling, and money managers have taken note: Their combined bets on rising prices for West Texas Intermediate ( WTI) and Brent crude reached record levels last December. “At l e a s t t h ro u g h t h e f i r s t h a l f of 2018, they’ll stay pretty bullish,” said Ashley Petersen, lead oil-market strategist at Stratas Advisors in New York. “June will be a real turning point because that’s when we’ll hear about unwinding the deal, and if Opec doesn’t handle it delicately, then there will be concern that the market will be flooded with oil again.” The last week of 2017 saw futures trading above $60 a barrel in New York and $67 in London for the first time since mid-2015, after the two most important oil benchmarks surged more than 40 percent from their doldrums last June.
The rally came on the back of a well- orchestrated campaign, led by Saudi Arabia and Russia, to enforce and extend supply curbs implemented by Opec and other producing nations. The effor t culminated with a m e e t i n g i n Vi e n n a l a s t N o ve m b e r, where the group and its allies agreed to extend the cuts through the end of 2018. Meanwhile, US crude stockpiles have declined by about a fifth since peaking last March and approached the end of 2017 at their lowest level since October 2015. While the threat of too much shale production still looms, producers ended the year a lot less gung-ho t h a n t h e y s t a r te d. U n d e r p re s s u re from investors to focus on profits over growth, explorers have slowed down on drilling with the US rig count stalling last December. “The expectation is that the rebalance will continue,” Gene McGillian, a market research manager at Tradition Energy i n S t a m f o rd , Co n n e c t i c u t , s a i d b y telephone. “We’ve approached an area where we really need to see a steady
diet of positive information.” The optimism wasn’t so widespread earlier in 2017. Concern that Opec’s efforts weren’t enough and would end abruptly in March 2018 led short-sellers to d o m i n ate t h e s c e n e f o r s e ve r a l months, with WTI plunging to the low$40s in June. “It really wasn’t until the four th quarter that we saw a resounding faith in the recover y,” Stratas Advisors’s Petersen said. Global events also swung the market up and down along the way, such as Hurricane Har vey, supply disruptions i n L i bya a n d Ku rd i s t a n , a p i p e l i n e shutdown in the North Sea, and last but not least, a brutal cold snap in the final week of 2017 that drove up demand for heating oil, fuel oil and natural gas. One of the most remarkable shifts that occurred in 2017, if a very technical one, was the change in the futures cur ve—first for Brent and more recently for WTI. Contracts for nearby deliver y are trading at a premium to longer-dated ones as demand rises and supplies tighten. This pattern, known
as backwardation, hadn’t been seen so consistently since 2014. Hedge funds boosted their Brent n e t - l o n g p o s i t i o n — t h e d i f f e re n c e between bets on a rally and wagers on a decline—to an all-time high on December 12 and have kept it near that level. The net-long position on WTI increased 7.3 percent to 411,972 futures and options during the week ended December 26, according to data from t h e U S Co m m o d i t y Fu t u re s Tra d i n g Commission (CFTC) last Friday. That was close to a record set in Februar y. Longs rose by 5.3 percent and shorts fell by 11 percent. Th e n e t - s h o r t p o s i t i o n o f s wa p d e a l e r s, a n i n d i c at i o n o f h e d g i n g, increased for the 11th straight week to a fresh record, according to the CFTC data. In the fuel market, money managers increase their net-long position on benchmark US gasoline by about 10 percent. Meanwhile, the net-bullish position on diesel rose by 26 percent to a record as the cold snap boosted heating demand. Bloomberg News
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Banking&Finance BusinessMirror
Wednesday, January 3, 2018 • Editor: Jun B. Vallecera
www.businessmirror.com.ph
BSP to add a new term-deposit window
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By Bianca Cuaresma
@BcuaresmaBM
he Bangko Sentral ng Pilipinas (BSP) looks to expand its monetary policy toolkit and push through with the launch of another liquiditysapping term-deposit facility (TDF) soon.
BSP Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo said the Monetary Board is exploring the idea of putting up another TDF, one between the current short- and long-term TDFs. “Based on our initial discussions with the banks—these are initial, preliminary discussions—they prefer a third tenor, probably a cross between seven and 28 days,” Guinigundo told reporters. The BSP currently offers the shortterm seven-day TDF and the long-term
28-day TDF. These have been in place since mid-2016 when the BSP formally adopted the interest-rate corridor (IRC) system as framework for conducting monetary operations. However, banks showed apparent preference for short-dated TDFs as evidenced by persistent undersubscription of the long-dated tenor that contrasted sharply against the oversubscription in the seven-day equivalent. In recent weeks, the BSP opted against offering 28-day term deposits due to weak
demand for the facility. The deputy governor said that aside from the P255 billion regularly generated by the Bureau of Treasury at each sale of Treasury bills and Treasury bonds, the banks also report high demand for liquidity during the holiday season that adds to the relative unimportance of longerdated TDFs in recent weeks and in the weeks forward. “That’s the reason the BSP decided to zero out TDFs for 28 days next week because we know that banks have alternative use for their money, instead of just putting it here with the BSP,” Guinigundo said. The BSP zeroed out the term-deposit offering for the 28-day facility beginning December 20 until today, January 3. The details to the upcoming auction have yet to be released. Guinigundo did not bare additional details to the proposed TDF, including the number of days and its timeline. “Whatever that is, it’s something subject to discussion between BSP and the banks,” Guinigundo said.
City Savings Bank acquires PR Savings Bank
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ity Savings Bank on Tuesday bared its acquisition of the Philippine Resources Savings Bank (PR Savings Bank) as part of the effort to expand its lending network this year. City Savings Bank, the thrift-banking arm of Union Bank of the Philippines (UnionBank), confirmed the signing of a share purchase agreement (SPA) with the Ropali group to acquire 100 percent of the common shared of PR Savings Bank. PR Savings Bank is a member of the Ropali Group of Cos., a conglomerate involved in the motorcycle and agricultural machinery trade. “This acquisition will expand our mass market reach, consistent with our vision to promote inclusive growth in the country,” UnionBank President and incoming CEO Edwin Bautista said. City Savings Bank is the fifth largest thrift bank in the country in terms of assets, with P74.444 billion as of June 30 last year.
PR Savings Bank, on the other hand, is the 14th-largest thrift bank in the country, with assets of P12.917 billion. Its market largely comprise of motorcycle, agri-machinery, and teachers’ salary loans, serving over 131,000 borrowers in its 102 branches.
Case clippings
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By Justice S J Ranada Jr.
QUESTION OF LAW–differentiated from that of fact Where the issue invites a review of the evidence presented, the question is one of fact. Thus, the test of whether a question is one law or of fact is not the appellation given to such question by the party raising the same; rather, it is whether the appellate court can determine the issue without examining or evaluating the evidence, in which case it is a question of law; otherwise it is a question of fact Agustin-Se v. OP GR Mo 207355 03 Feb. 2016 Carpio. J
Replacement SSS ID cost reduced
he Social Security System (SSS) has reduced the replacement cost of lost, old and tattered unified multipurpose identifaction card (UMID) by P100 in line with the reduction in the cost of services done by its service provider. The replacement fee for UMID cards was reduced to P200 from the current P300 for each renewal or replacement. SSS President and CEO Emmanuel F. Dooc said members who opt to replace their old SSS ID cards or those who have lost their UMID cards can now enjoy the P100 reduction for the replacement of their IDs. “We are happy to announce to our members that the proposal to reduce the replacement fee to P200 was already approved by the Social Security Commission [SSC] headed by Chairman Amado D. Valdez,” Dooc said. Under SSC Resolution 604 s.2017, the SSC approved the reduction of the cost of UMID card since the cost of data capture as well as the production of the ID card were also reduced. Dooc said the reduced replacement fee took effect on December 11, 2017. He stressed the reduced fee also applies to members who wish to amend their ID cards. Members will not be charged for the replacement if the erroneous encoding of data was on the part of SSS, including erroneous screening and capturing of previous card applications. A reduced fee is charged for the replacement of the UMID card or old SS ID due to correction or change of name, correction of date and place of birth, gender, replacement of old or damaged card, change of home address, updating of member photo
City Savings Bank said the SPA was signed by Ropali Group Chairman and Founder Roberto Alingog and CitySavings Bank Chairman and UnionBank Senior Executive Vice President Eugene Acevedo. The acquisition was seen completed in the second quarter of this year. Bianca Cuaresma
and change of specimen signature that is printed on the card. Those applying for initial issuance of the SSS-UMID cards are not required to pay any amount, according to the SSS. Last year the SSS announced that some 34,000 pensioners may now withdraw proceeds of their social security benefits and loans through automated teller machines using their UMID-ATM cards. Dooc said the rollout of the program enables faster payment of disability and retirement benefits, maternity and sickness claims for self-employed and voluntary members, as well as disbursement of salary and calamity loans. In October last year, the SSS was back on track in processing member UMID card following delays in February due to an interruption of the operations of the Central Verification System (CVS) of the Philippine Statistics Authority. T he C VS c hec k s biometr ic uniqueness of member applicants required prior to the issuance of UMID cards. The CVS stopped operations from mid-February to midJune 2017 due to high temperature at the data center of Department of Information and Communications Technology. Dooc said the backlog in UMID card production has already beeb wiped out. In compliance with Executive Order 420, the government had launched the use of the UMID card to help facilitate faster and easier service among government agencies. The UMID card covers agencies, such as the Philippine Health Insurance Corp., SSS, Government Service Insurance System, and the Home Development Mutual Fund.
Digital platforms, others launched in 2017 to boost ease of doing business
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he Department of Finance (DOF) adopted several innovations in 2017 anchored on digital technology to improve the ease of doing business and interconnect with member-states of the Asean to help speed up economic integration. In partnership with the Department of Information and Communications Technology (DICT), the innovations launched last year include the Philippine Business Data Bank (PBDB) and the National Single Window (NSW) via the TradeNet platform; the ongoing computerization at the DOF and the Bureaus of Internal Revenue (BIR) and of Customs (BOC); and the continuing efforts to reduce the procedures and requirements in securing government documents or applications. Finance Secretary Carlos G. Dominguez III said the DOF’s anti-red tape group has also teamed up with trade regulatory agencies on the use of online platforms to streamline business processes down to the level of the local government units (LGUs) The head of the DOF’s anti-red tape program, Finance Undersecretary Gil S. Beltran, said “this involves a lot of agencies so we cannot just move alone.” In establishing the NSW, for instance, Beltran said 76 government agencies have to be onboard to make the program fully operational. Beltran said the PBDB, now piloted in Quezon City, will eventually allow the online processing of business permits down to the local government level and cover all 1,634 LGUs nationwide over a two-year period. “Economic zone data will likewise be progressively made available covering all economic zones in the country,” Beltran added. Beltran said the precursor to the PBDB, the Online Unified Business Permit Application Form, is now being finetuned to further simplify the process and allow businesses to apply for LGU business permits regardless of location. He said the DOF and other involved agencies are now “finalizing the data elements” for the online business permit application form so it could be pilot-tested by the first quarter of this year. Meanwhile, the TradeNet platform for traders, which will also serve as the Philippines link to the Asean Single Window (ASW) gateway, became operational by the end of the year and is expected to minimize the costs of doing business and cut the processing time for the issuance of import and export permits, Beltran said. The ASW is a regional initiative that aims to speed up cargo clearances and promote economic integration by enabling the electronic exchange of border documents among the organization’s 10 member-states. Indonesia, Malaysia, Singapore and Thailand are already using the ASW to exchange information on customs clearances.
BPI inks fund-transfer deal with Middle East remittance company
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he Bank of the Philippine Islands (BPI) bared on Tuesday its partnership with Abu Dhabi-based LuLu Exchange to better service overseas Filipino workers (OFWs) sending money back home. BPI said the partnership with LuLu Exchange would allow OFWs to transfer funds directly to a BPI or BPI Family Savings Bank account. “Beneficiaries can expect to receive the remittance within 24 hours after the transfer from LuLu Exchange has been made. Aside from sending the remittance straight to a BPI account, other available payout modes are over-the-counter cash pickup at BPI or BPI Family Savings Bank branches and door-to-door delivery,” BPI said in a statement. Data from the Bangko Sentral ng Pilipinas (BSP) show remittances from United Arab Emirates alone account 9 percent of total remittances to the Philippines in the first 10 months last year. “Our priority is to ensure the convenience of OFWs in sending remittances wherever they are in the world, while giving beneficiaries a seamless and secure
way of receiving money,” BPI Executive Vice President and Segment Head of Financial Products and Alternative Channels Simon Paterno said. “This tie-up with LuLu Exchange enables us to do just that while also expanding our reach to more OFWs, especially during the holiday season,” the BPI executive added. Lulu Exchange is one of the region’s largest financial ser vices companies today, w ith more than 170 branches in nine countries and across the Asia-Pacific region. It plans to enter the European market. “The value that BPI adds to our growing portfolio of services will make it easier for OFWs to send money home,” LuLu Exchange CEO Adeeb Ahamed said. Bianca Cuaresma
The Philippine Basketball Association will not die
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here were fears politics would put an end to the highly popular Philippine Basketball Association (PBA) tournaments a few weeks ago over a controversial trade involving franchise player Christian Standhardinger. The fate of the 42-year-old institution hung in the balance as the league was tor n asunder by t wo war r ing groups: the San Miguel Group and the MVP Group (Manny V. Pangilinan). Seven PBA teams, led by the MVP Group (TNT, NLEX and Meralco), joined by Alaska, Phoenix, Blackwater and Rain Or Shine wanted PBA Commissioner Chito Narvasa to resign. The MVP Group demanded for Narvasa’s resignation but the SMB Group (SMB, Magnolia, Ginebra) joined by KIA (of course) and Globalport relented. An impasse ensued that threatened to shatter an institution which has attracted a following of 72 percent of Filipinos, or 53 million of the nation’s 103 million population. Narvasa, son of former Chief Justice Andres Narvasa, saw the better side of prudence and resigned on December 17 and saved the PBA. The PBA, the oldest Asian professional basketball and the most followed after the National Basketball Association has been a source of great advertising mileage for the PBA teams. The PBA cannot and will not die. Because despite the P100 million franchise fee and another P100 million in yearly operating costs, Media Trackers believe the advertising mileage is three to four times operating costs or P400 million every year. There was a time when maintaining a PBA team was prohibitive when there were no caps on the salaries of stars that were as high as P5 million a year, plus bonuses and incentives that equaled the pay of some CEOs in the corporate world. (Recall the P25-million five-year deal for star Alvin Patrimonio?) Now, there is a ceiling on salaries and the lowest paid player is now getting only P50,000 and limits on winning bonuses except winning the championship, which is a corporate winner’s prerogative have been imposed. Expenses are now more manageable. But the goodwill and promotional value are very hard to quantify. Look at the 12 teams today—why are they
Finex free enterprise Zoilo ‘Bingo’ Dejaresco III there? SMB has fortified its status as the best beer in the country through the years. Ginebra was once Anejo Rhum and Gilbey’s Gin—all marketed successfully. Rain or Shine Paints attributed its being the No. 1 elastometric paint product in the country to basketball, starting with their Philippine Basketball League days in 1996, Alaska remains a very popular family milk and Magnolia a leading ice-cream brand. Blackwater men’s fragrance and perfume have been steadily gaining ground as an entry of the Ever Bilena Group, while KIA Picanto is selling its image as a compact city car built by Koreans. Phoenix Petroleum wanted to be known quickly as it is the first independent oil company breaking the stranglehold of the Big Three after the oil deregulation period, while TNT formed part of the telcos under PLDT with Smart and Sun. There are three PBA companies whose presence is hard to explain except for merely cultivating goodwill. Meralco, a franchise power distributor and a monopoly of sorts, as well as NLEX (a leading road toll developer) are two of them. Globalport, which manages ports, can only be there, perhaps, because its Chairman, Mikee Romero, is a youthful sports-minded fellow. And so all’s well that end’s well with Narvasa’s resignation. The most popular tournament has just kicked off. Expect SMB and Ginebra to slug it out in the championships. Gives one an idea why the MVP Group bitched about the Standhardinger lopsided trade. The PBA, ah, it’s too good to die— for any reason. Bingo Dejarresco, a former banker, is a financial consultant, media practitioner and book author. He is a Life member of Finex but his views here are personal and do not necessarily reflect those of Finex. dejarescobingo@yahoo.com
ExportUnlimited BusinessMirror
Editor: Efleda P. Campos • Wednesday, January 3, 2018 A9
PHL features aesthetically appealing yet sustainable products at Ambiente 2018
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RODUCTS that boast sustainability without sacrificing style and good taste have always been the design trademark of the Philippines. Most designers set their eyes on plants and other natural resources abundant in the archipelago to incorporate their vision.
February 9 to 13 will mark the Philippines’s third collective participation at Ambiente, the leading international trade fair for consumer goods happening in Messe Frankfurt in Germany. Table settings, kitchen accessories and household products take the spotlight in the show. Gifts, interior trends and home concepts will also be showcased. The Philippines’s participation in Ambiente 2018 is under the banner of the Lifestyle Philippines brand. Carrying the theme “Sustainability through Design,” the brand bridges the ecological gap between ethics and aesthetics, infusing nature and artisanship in crafting products for modern living. From abaca, raffia, bamboo, rattan, coconut husk, mother of pearl and fine-bone china, artisan
communities of the Philippines transform these renewable materials into consciously crafted objects, thus minimizing the negative impact on the country’s resources and, at the same time, connecting the buyers with the Philippines’s natural environment. In Ambiente 2018, the Filipino brand will gain a tremendous international exposure, market acceptance and sales generation. The country will prove that ethics and aesthetics can be merged successfully to create top-notch and sophisticated designs. Returning and new Filipino exhibitors from the home-décor sector will showcase products under the trade fair’s three categories: Dining, Giving and Living. Marsse Tropical Timber Planta-
tion and Celestial Arts qualify for the Dining category, which covers table, kitchen, houseware and household products. GSG Paper is in the Giving category for their handmade and vibrant products that fit in the group’s varied gift selection. Red Slab Pottery, Silay Export, Tadeco Home Décor, Pumice Unlimited Ventures, 33 Point 3, Arden Classic, Chanalli, Finali Furniture and Home Accessories, Freden Export, Larone Crafts and Nature’s Legacy are under the Living category’s home interiors and design collection. Silay Export, Marsse Tropical Timber Plantation, Red Slab Pottery and Pumice Unlimited Ventures are under the Regional Interactive Platform for Philippine Exporters (Ripples) Plus Program, a joint venture by the Department of Trade and Industry’s (DTI) Export Marketing Bureau, the DTI’s Regional Operations Group and the Philippine Trade Training Center. Ripples is assisting emerging nicro, small and medium enterprises (MSMEs) in the development of their products and services through strategic interventions, such as capacity-building trainings, product development, market information and global-product trends. These interventions make sure the companies are competent and export-ready. The Philippines’s Ambiente 2018
SEVERAL Philippine companies proudly joined Ambiente 2017, the leading international trade fair for consumer goods happening in Messe Frankfurt in Germany. Last year’s Philippine exhibitors included Julie Anne’s Handicraft, Basket and Weaves, Bon-Ace and Elm’s Accesoria. Featured products included Filipino designs that were sustainable, natural and filled with emotion, soul and stories—a style that echoes Ambiente trends.
participation will be organized by the Center for International Trade Expositions and Missions (Citem), the DTI’s export promotion arm. Citem is targeting $1.8 million worth of export sales. “Ambiente 2018 is a great platform to strengthen Philippine companies’ network and client base in Germany and the rest of Europe. The trade fair is a wonderful experience for Filipino exporters because they have a chance to be acquainted with the international market’s latest trends,” Citem Executive Director Clayton Tugonon said. Citem’s efforts to increase the global competitiveness of the
country’s gifts, décor and houseware sector are in line with the government’s latest target—to grow the sector by 20 percent in the next five years. The Board of Investments identified more than 2,400 handicraft enterprises in the Philippines. Majority of those are MSMEs in the National Capital Region, Cordillera Region, Region 5 and Region 12. Ambiente 2017 attracted more than 4,400 companies and exhibitors from 94 countries. The trade fair also branches out to international markets, holding shows in the major Asian cities of Tokyo, New Delhi and Shanghai.
Russian firm to build first pipeline-coating facility in PHL
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FTER the record-breaking investment approval of P616.7 billion for 2017, the Department of Trade and Industry (DTI) and the Board of Investments (BOI) met with Russian investors from BT SVAP LLC on December 20, 2017 to discuss investment intentions focusing on a pipeline-coating facility in the Philippines.
“More investors have expressed their confidence in the country’s economic stability and business environment under the Duterte administration. They wish to partner with us in providing more jobs and opportunities for Filipinos, especially those at the bottom of the pyramid,” Trade Secretary Ramon M. Lopez said. Igor Shaporin, BT SVAP LLC’s
chairman of the Board of Directors, expressed the company’s intention to put up a facility in Mariveles, Bataan, where accessibility to sea and land transportation is easily available. The company’s prospect location would require a big land area and will have innovative-production technology in pipeline coating. The Moscow-based BT SVAP
LLC is an integrated company specializing in the development and implementation of innovative solutions in industrial production and construction of pipeline system for fuel-power complex, chemical industry and housing and utilities infrastructure. The group also focuses on production of protective shelves for pipes
and pipelines, which uses modern hi-tech production and logistics facilities, as well as multifunctional design-engineering units. The trade chief conveyed the country’s openness to investors and the government’s efforts in diversifying investors, while also ensuring ease of doing business in the country.
PTTC conducts seminar exclusively for OFWs
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HE Philippine Trade Training Center (PTTC), through the Department of Trade and Industry’s Regional Operations Group (DTI-ROG), in cooperation with various government departments, such as the Department of Labor and Employment (DOLE), Pag-IBIG, PhilHealth, SB Corp., and the Land Bank of the Philippines, recently conducted an entrepreneurship enhancement seminar for overseas Filipino workers (OFWs) attended by 167 OFWs, seafarers and their families. As DTI-ROG Assistant Secretary Ameena A. Fajardo emphasized in her opening message, the seminar “Negosyo Tayo, OFWs” was an adjunct to ROG’s business trainingassistance programs for OFWs. The afternoon session’s discussion focused on “Financial Literacy: Self-Sufficient During and After Employment Abroad” by Maria Teresita Dimaculangan, former president of Philippine Institution of Certified Public Accountants Southern Metro Manila. Vix Madlangbayan, from Go Negosyo Kapatid Mentor Me, likewise gave an inspirational talk on strategic business identification, entitled “Mindset Shift to Entrepreneurship.” Other resource persons who provided valuable information on the government’s programs and services for OFWs were DOLE Assistant Secretary Amy Reyes, Policy and Program Development Division Chief of National Reintegration Center for OFWs Melvin C. Caseda, Elite Global Ambassador of Aim Global Maricar Cruz Santos, Pag-ibig Fund Information Officer Philip Raymund S. Salem, Sales Manager of Prime Realty Carlos Restituto and Small Business Corp. Account Officer Annalyn Serano. The one-day seminar ended with a Business Game Workshop facilitated by PTTC Deputy Executive Director Elizabeth Manuel, which centered on the participants’ planning skills.
DTI announces next steps to implement i3S Booming business: Countryside
TRADE Secretary Ramon M. Lopez addresses the participants of the Manufacturing Summit held recently in a Makati City hotel.
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HE Department of Trade and Industry (DTI) successfully conducted the recent Manufacturing Summit 2017 at Fairmont Makati, bringing together more than 250 stakeholders from the private sector, industry associations, business chambers and stakeholders from the government and academic and research community. Taking off from the 2016 Manufacturing Summit, which focused on “Trabaho at Negosyo” for inclusive growth, this year’s summit highlighted the remarkable performance
of the manufacturing industry, the accomplishment of DTI’s Manufacturing Resurgence Program and the country’s new industrial policy dubbed as Inclusive Innovation Industrial Strategy (i3S). The i3S aims to grow and develop globally competitive and innovative industries with innovation at the front and center of industrial policies and programs supported by pillars consisting of building new industries, clusters and agglomeration. These will also ensure micro, small, and medium enterprise (MSME)
growth and development, human resource development and improving ease of doing business and the business environment. “With intense competition due to rising globalization, regional economic integration and disruptive technologies, innovation is crucial for the inclusive and sustainable growth of the economy, particularly manufacturing,” Trade Secretary Ramon M. Lopez said. “Our vision is for the Philippines to have creative and connected communities of different stakeholders
like innovators, start-ups, SMEs and large enterprises that will collaborate to produce new products and services,” Lopez added. The trade chief indicated the DTI will focus on three major strategic actions: establish i3 zones or parks without walls, where universities and industrial hubs could work together and collaborate on innovation initiatives; using fiscal and nonfiscal support to promote local manufacturing of key products that are heavily imported like pharmaceutical products or medical devices; and continue the collaboration with the industry, academe, other government agencies and stakeholders in building the inclusive innovation ecosystem. To encourage more investments and change in mind-set, the i3S would provide incentives on research and development and innovation, as well as tax deductions on trainings and workers’ skills upgrading. There will also be business matching, exhibits and trade fairs. Lopez said the establishment of domestic ecozones is vital in building industry clusters that can provide a fertile environment for innovation and inter-firm cooperation leading to competitiveness improvements. Incentives to be provided in domestic ecozones will be rationalized, with applicable domestic taxes like value added and excise will be paid by locators just like other companies outside domestic ecozones. “DTI will continue to fine tune the i3S, refine it to fully embed and integrate innovation and ensure that new technologies can be applied to reduce poverty and promote shared prosperity for all,” Lopez said.
entrepreneurship on the rise
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S part of the Trabaho, Negosyo agenda of the Duterte administration, the Department of Trade and Industry (DTI) set its sight on putting on center stage the micro, small and medium enterprises (MSMEs) and job generation. This has become prevalent with the DTI, reported the growing interest and enthusiasm of Filipinos in venturing into business as more and more entrepreneurs turn to Negosyo Centers for assistance for MSMEs and aspiring entrepreneurs. In the 2017 Negosyo Center yearend performance monitoring report, a total of 614,417 entrepreneurs were assisted by these centers—leapfrogging from the June 2017 performance report of 595,573 clients assisted since the inception of Negosyo Centers in 2014. DTI Regional Operations Group Undersecretary Zenaida C. Maglaya underscored the huge surge of entrepreneurs assisted due to the government’s support for MSMEs and the advancing of MSMEs as economic movers of the country. “2017 has been the year for Filipino MSMEs as the country hosted the Asean [Association of Southeast Asian Nations]. With Asean, MSMEs were given the much-needed attention in order to advance the country’s economic agenda,” Maglaya said. With more MSMEs turning to Negosyo Center for assistance, Maglaya attributed the entrepreneurship surge to the agency’s continuing drive to introduce entrepreneurship as a steady source of income, while also recognizing
the agency’s partnerships with other national government agencies, and non-governmental organizations, local government units and big corporations. “We’re very grateful to Filipinos that they realize the huge help they get from entrepreneurship and how business contributes to society by providing employment and lifting the economy,” Maglaya added. Philippine MSMEs account for 99.5 percent of the total number of established businesses and employ 62.8 percent of the country’s workforce, contributing substantially to the country’s manufacturing output and total employment, making it critical engines of economic growth and development. To encourage aspiring entrepreneurs, Negosyo Centers have also conducted 11,043 skills, managerial and entrepreneurship training programs, the report showed. Maglaya said Negosyo Centers are very effective in reaching out to Filipinos in the countryside, with the DTI tallying a total of 718 centers throughout the country. Under the current administration, a total of 343 Negosyo Centers were established, she added. RepublicAct10644, ortheGoNegosyo Act, aims to help MSMEs promote ease of doing business, facilitate access to grants and other forms of financial assistance,SharedServiceFacilitiesand otherequipment,andothersupportfor MSMEs through national government agencies, ensure management guidance, assistance and improvement of the working conditions of MSMEs; and facilitate market access and linkaging services for entrepreneurs.
A10 Wednesday, January 3, 2018 • Editor: Angel R. Calso
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Preparing rice farmers for stiff competition
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study published recently by the Organisation for Economic Co-operation and Development (OECD) warned that Filipino farmers face the prospect of losing as much as $4 billion (or P200 billion) in income with the scrapping of tariff in Asean. The study, titled “Market implications of the integration scenario of Southeast Asian rice markets,” looked at the outcomes of rice trade within the Asean region by 2025. Authors Gen Furuhashi and Hubertus Gay found that under a zero-tariff regime, rice farmers in the Philippines would incur production losses of at least $2 billion. Under a fully integrated market (zero-tariff plus removal of nontariff measures), farmers stand to lose $3.966 billion. The projection was based on the assumption that the free flow of goods within Asean would result in cheaper food and encourage traders to buy more from neighboring Southeast Asian countries. Filipino consumers, particularly the poor, would benefit immensely from this, as rice would become more affordable. This is because the poor set aside as much as 50 percent of their income for food, according to the Philippine Statistics Authority, so cheaper rice would mean more money to spend for other basic needs. However, some 2.4 million farmers who are directly dependent on income from rice also face the possibility of losing their livelihood. The government has expressed this apprehension in 2012, when Manila urged the World Trade Organization (WTO) to extend the waiver for the special treatment for rice. Sans a solid plan to help them compete with farmers in neighboring Southeast Asian countries, the displacement of rice farmers could increase poverty incidence in the Philippines. Preparations to enable rice farmers to compete should have been in place as soon as the Philippines joined the WTO in 1995. Two decades after acceding to the WTO, the same ills that have plagued the rice sector—low mechanization rate, high cost of production, inability of farmers to access cheap credit—have yet to be addressed. Agriculture Secretary Emmanuel F. Piñol has made it clear in his pronouncements that the Duterte administration is not abandoning the rice self-sufficiency bid. The government is currently crafting a road map for the rice sector after it decided to just allow the WTO waiver to expire this year. The House of Representatives will resume this month discussions on a bill that will amend a law that has enabled the Philippines to continue imposing rice-import caps. Experts said the conversion of quantitative restriction on rice into tariffs would mean more revenues for the government, as traders would be required to pay more if they want to purchase more imported rice. We hope that the road map being crafted by the government for the rice sector will reflect the wish of the President—to protect Filipino farmers and prioritize local production. We call on the government and Congress to see to it that funds from the conversion of rice-import caps into tariffs would be used to bankroll the road map. Congress must ensure that proposals to amend Republic Act 8178 would include a provision for this purpose.
You know it when you see it Teddy Locsin Jr.
Free fire Continued from A1
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he key, I am sorry to repeat a cliché, is moderation. Although I cannot define what that is, like pornography we know moderation by experience. Pornography defies definition. Indeed, Justice Potter Stewart admitted that he could not define pornography—but he knew it when he saw it; adding, according to my law professor Laurence Tribe, that Stewart said he saw it once sailing off the coast of Algiers. Moderation is somewhere indefinably between the satisfac-
The retreat to tribalism David Brooks
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tion of a craving and the start of achieving it. After that, you should
new york times
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magine three kids running around a maypole, forming a chain with their arms. The innermost kid is holding the pole with one hand. The faster they run, the more centrifugal force there is tearing the chain apart. The tighter they grip, the more centripetal force there is holding the chain together. Eventually centrifugal force exceeds centripetal force and the chain breaks. That’s essentially what is happening in this country, New York University’s Jonathan Haidt argued in a lecture delivered to the Manhattan Institute last November. He listed some of the reasons centrifugal forces may now exceed centripetal: the loss of the common enemies we had in World War II and the Cold War, an increasingly fragmented media, the radicalization of the Republican Party, and a new form of identity politics, especially on campus. Haidt made the interesting point that identity politics per se is not the problem. Identity politics is just political mobilization around group characteristics. The problem is that identity politics has dropped its centripetal elements and become entirely centrifugal. Martin Luther King described segregation and injustice as forces tearing us apart. He appealed to universal principles and our common humanity as ways to heal prejudice and unite the nation. He appealed to common religious principles, the creed of our Founding Fathers and a common language of love to drive out prejudice. King “framed our
greatest moral failing as an opportunity for centripetal redemption,” Haidt observed. From an identity politics that emphasized our common humanity, we’ve gone to an identity politics that emphasizes having a common enemy. On campus these days, current events are often depicted as pure power struggles—oppressors acting to preserve their privilege over the virtuous oppressed. “A funny thing happens,” Haidt said, “when you take young human beings, whose minds evolved for tribal warfare and us/them thinking, and you fill those minds full of binary dimensions. You tell them that one side in each binary is good and the other is bad. You turn on their ancient tribal circuits, preparing them for battle. Many students find it thrilling; it floods them with a sense of meaning and purpose.” The problem is that tribal common-enemy thinking tears a diverse nation apart. This pattern is not just on campus. Look at the negative polarization that marks our politics. Parties, too, are no longer bound together by
Moderation is somewhere indefinably between the satisfaction of a craving and the start of achieving it. After that, you should stop. Anything more starts to be immoderate. While I cannot precisely identify the stage where that is at, you and I know when we have reached it. Go one step beyond and we cannot stop.
stop. Anything more starts to be immoderate. While I cannot precisely identify the stage where that is at, you and I know when we have reached it. Go one step beyond and we cannot stop. This happens in all walks of life whenever we overkill in talk or
From an identity politics that emphasized our common humanity, we’ve gone to an identity politics that emphasizes having a common enemy. On campus these days, current events are often depicted as pure power struggles—oppressors acting to preserve their privilege over the virtuous oppressed. creeds but by enemies. In 1994 only 16 percent of Democrats had a “very unfavorable” view of the GOP. Now, 38 percent do. Then, only 17 percent of Republicans had a “very unfavorable” view of Democrats. Now, 43 percent do. When the Pew Research Center asked Democrats and Republicans to talk about each other, they tended to use the same words: closed-minded, dishonest, immoral, lazy and unintelligent. Furthermore, it won’t be easy to go back to the common-humanity form of politics. King was operating when there was high social trust. He could draw on a biblical metaphysic debated over 3,000 years. He could draw on a US civil religion that had been refined over 300 years. Over the past two generations, however, excessive individualism and bad schooling have corroded both of those sources of cohesion. In 1995 the French intellectual Pascal Bruckner published The Temptation of Innocence, in which he argued that excessive individualism paradoxically leads to in-group/ out-group tribalism. Modern individualism releases each person from social obligation, but “being guided only by the lantern of his own understanding, the individual loses
action. Once you get it right—once you get your point across, do not twist the knife. My most rewarding experience in Congress was when I was made to realize that I had talked so much that I put my foot in my mouth. I had my colleague in the ropes, I was beating him senseless, and I could feel the majority swinging to my side of the argument. And then I went too far, saying, “And what lousy law school did you go to?” To which my colleague answered, slyly, “I just went to _______; my parents were too poor to send me to a better school.” The school he named, in fact, is a good school. But the members swung against me. I gave up the podium knowing I had shot myself in the foot where my mouth had descended and lost the argument.
all assurance of a place, an order, a definition. He may have gained freedom, but he has lost security.” In societies like ours, individuals are responsible for their own identity, happiness and success. “Everyone must sell himself as a person in order to be accepted,” Bruckner wrote. We all are constantly comparing ourselves to others and, of course, coming up short. The biggest anxiety is moral. We each have to write our own gospel that defines our own virtue. The easiest way to do that is to tell a tribal oppressor/oppressed story and build your own innocence on your status as victim. Just about everybody can find a personal victim story. Once you’ve identified your herd’s oppressor—the neoliberal order, the media elite, white males, whatever—your goodness is secure. You have virtue without obligation. Nothing is your fault. “What is moral order today? Not so much the reign of right-thinking people as that of right-suffering, the cult of everyday despair,” Bruckner continued. “I suffer, therefore I am worthy.... Suffering is analogous to baptism, a dubbing that inducts us into the order of a higher humanity, hoisting us above our peers.” Haidt and Bruckner are very different writers, with different philosophies. But they both point to the fact that we’ve regressed from a sophisticated moral ethos to a primitive one. The crooked timber school of humanity says the line between good and evil runs through each person and we fight injustice on the basis of our common humanity. The oppressor/oppressed morality says the line runs between tribes. That makes it easy to feel good about yourself. But it makes you very hard to live with.
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It pays to be late, so don’t Philanthropy for equity and inclusion Filipino philanthropists be the early worm should rethink, revise and Edgardo J. Angara
Michael Makabenta Alunan
on the contrary
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S we struggle anew with our New Year’s resolutions, often regretting missed opportunities for not taking a carpe diem attitude of seizing the moment and the day, don’t fret as studies show, on the contrary, that there may be more value in procrastination. So let’s put off for tomorrow what we can do today? Don’t take me seriously on this because the Filipino traditional adage still holds true that acting ahead of time is better than being intelligent (Mas magaling ang maagap sa matalino). Being early, indeed, is a key to success in work and in life. n Early worms get caught? We were all taught that “the early bird catches the worm,” but we never realized the early worms are gobbled up. This is true in business and innovation as most pioneering entrepreneurs start ideas or technologies, but don’t always succeed, while facing uphill battles. It is the later innovators who do better as they improve on the pioneers. This is one insight author Prof. Adam Grant says in his book entitled Originals, citing numerous studies to prove that “procrastination is as much a virtue as a vice.” While it’s risky to delay, Grant claims “waiting can also reduce risks by preventing you from putting all eggs in one basket.” n Procastination induces originality? Grant’s doctoral student Jihae Shin suggested a counterintuitive idea that “procrastination might be conducive to originality,” arguing that by buying time, one allows for divergent thinking and wider options. Shin’s own studies on factory workers noted that procrastination didn’t always fuel creativity, unless they are motivated enough. But when motivation and passion are developed first, putting off tasks lead them to more creative solutions. Depending on conditions, procrastination can therefore deter productivity, or stimulate creativity. Artist-scientist Leonardo Da Vinci, a Renaissance polymath, always took time to finish his works as he always got diverted by so many interests. He started his Mona Lisa painting in 1503, but got distracted, including experiments on optics, where he gained insights on lights and shades, which were vital in finishing his Mona Lisa close to his death in 1519. Albert Einstein of E=MC2 fame was also known to have procrastinated on his physics work, and leisurely played his violin, from where he gained his brilliant insights. n ‘Zeigarnik-effect’ of procrastination. Russian psychologist Bluma Zeigarnik demonstrated in 1927 that people have better memories with incomplete tasks, than with completed work. He argued that tasks completed are forgotten, but if interrupted and left unfinished, they remain in our minds. Martin Luther King Jr. had three advisers crafting his speech for several weeks, but resisted finishing it, creating a Zeigarnik-effect. He never stopped thinking about it, and only gathered his team again the night before, after receiving a $100,000 “promisory note” from philanthropist Nelson Rockefeller. He cited in his speech that the architects of the republic and framers of the Constitution and Declaration of Independence “signed a promisory note”, but “America has defaulted on this promisory note to its citizens of color.” But while about to deliver his speech before a crowd, gospel singer Mahalia Jackson yelled from below, “Tell ’em about the dream,” which made Martin shift radically to his classic “I have a Dream” speech. Similarly, Abraham Lincoln had two weeks to prepare his 272-word
A study on 3,000 start-ups shows that 75 percent fail because of premature expansion. If one has an original idea, the key lesson is not to rush instantly, but procrastination gives us flexibility and the time to learn to adapt and reduce risks, Grant says. This reminds me of what an old Higaonon tribal chieftain once told me in my impulsive younger years, “If you are in a hurry, slow down.” The guy could neither read nor write, but he had wisdom. powerful Gettysburg Address, but procrastinated and wrote it the night before, finishing it the following morning. The delays allowed him to think of his classic line, ”Government of the People, by the People and for the People.” Grant concluded “great originals are great procrastinators, but they never skip planning at least in their minds.” n Creativity sparks when sleepy? Psychologists Mareike Wieth and Rise Zacks surveyed both morning people and night owls, and discovered both groups did well at analytical problems any time, but consistently on insight problems, the night owls did better in the morning when they were sleepy, same with the morning people when they were tired late afternoon. One insight problem was an antique coin of an emperor on one side, and the date 544 B.C. on the other. When wide awake and more focused, both tended to engage in structured linear thinking, and ignored the glaring fact—B.C. It was only when they were sleepy that they become more open to random thoughts and remembered that B.C. stands for Before Christ and realized the coin was a fake. Carnegie Mellon Prof. Anita Whooley made teams build miniature Lego toy houses, scoring them on size, sturdiness and aesthetics, allowing them to freely either plan at the start or halfway accomplishing the tasks. Again, consistently, those who strategized halfway later were 80 percent more effective. Obviously, teams that went to work immediately without prior planning, drew actual lessons from practice, which they raised to theory and inputted back into their midway strategizing. This is called “praxis” or blending theory and practice in action. n Timing is crucial. There are many factors determining the difference between success and failure, but it turns out the most important factor is not uniqueness of an idea, management capabilities, team execution, quality of business model, or even the availability of funding. The “number one thing was timing, which accounts alone for 42 percent,” says Grant citing Idealab’s study. A study on 3,000 start-ups shows that 75 percent fail because of premature expansion. If one has an original idea, the key lesson is not to rush instantly, but procrastination gives us flexibility and the time to learn to adapt and reduce risks, Grant says. This reminds me of what an old Higaonon tribal chieftain once told me in my impulsive younger years, “If you are in a hurry, slow down.” The guy could neither read nor write, but he had wisdom. E-mail: mikealunan@yahoo.com
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he year 2017 comes to a close with news of the Philippine economy GDP growth projections higher and Filipinos’ sentiment regarding next year’s prospects generally optimistic.
Beneath the smiling and upbeat façade lies a smoldering cauldron of gross inequality, unfairness and exclusion. Credit Suisse’s 2017 Global Wealth Report showed that nearly 87 percent of adult Filipinos—or 52.5 million out of 60.7 million who are 20 years old and above—mostly lived in poverty with per-capita wealth of less than $10,000 (P500,000). In contrast, only a tenth of 1 percent— around 60,000 individuals—have per-capita wealth of over $1 million (P50 million). And when you consider the combined wealth of Forbes’s 50 richest Filipinos, the wealth gulf is even more stark. In 2017 the 50 richest Filipinos’ combined wealth is estimated at $73.9 billion. That is equivalent to nearly 24.4 percent of the country’s 2016 GDP of $304.9 billion. This proportion has changed very little since 2013.
The vast majority struggle daily to cope with high prices of food, lack of access to health facilities, Internet, credit and decent shelter. As a perspective, the Filipino rich have been giving charitable grants and donations mainly through their corporate foundations. Indeed, the Philippines has the longest recorded history of organized giving among the economies studied in 2011 by the Economist Intelligence Unit (EIU). Regrettably, the Filipinos’ famed generosity has been waning in recent years. In the 2017 World Giving Index, the Philippines ranked 54th out of 139, falling from 16th out of 135 in 2013. While the Filipinos were the world’s 14th most-active volunteers (seventh in terms of their numbers), they weren’t as willing to donate money (95th) or to help a stranger (66th). This is even truer among the Philippines’s richest. Data from
reconfigure their giftgiving. They should instead adopt a systemic form of philanthropy that will be a strategic intervention to making a more equitable and inclusive country. an Entrepeneur.com.ph March 2016 article shows that a majority of the Forbes’s Top 10 Richest Filipinos can afford to allocate more funds for their respective philanthropies. Some even spent less than one percent of their net worth on their companies’ CSR mandate. The amount dedicated to philanthropy is vital because it’s a measure of one’s character and civics. Equally vital is where the charitable spending went and to what purpose. Today, many among the Filipino rich pursue scholarship programs, school buildings, or one-off grants on the occasion of a calamity or the anniversary of the donor. All three are welcome but comply with no established criteria nor clear civic purpose. In truth, they are palliative in nature and of no marked change. And yet achieving true equality and genuine fairness in Philippine society offers multiple paths. To mention some: more robust in-
vestments in basic education and modern skills training, improving child health and nutrition, or constructing livable shelters (not the chicken coops some developers pass off as “socialized housing”). Charitable giving could even be directed to research and development (R&D) for improved food production or to oceanography for protecting our seas. Both areas would benefit many farmers and fisherfolk, among our poorest sectors. Research grants can be awarded to the Research Institute for Tropical Medicine, the Philippine Rice Research Institute, or to several state universities specializing in fruits and vegetable production. Such endowments may spark a nutrition revolution where Filipinos become taller and healthier—and, eventually, more productive and ambitious. Many Western philanthropists like Bill and Melinda Gates, Mark Zuckerburg and his wife Priscilla, Richard Branson and Jeff Bezos have already started to devote their wealth in this manner. Filipino philanthropists should rethink, revise and reconfigure their gift giving. They should instead adopt a systemic form of philanthropy that will be a strategic intervention to making a more equitable and inclusive country.
E-mail: angara.ed@gmail.com, Facebook and Twitter: @edangara
Mental-health IPO is a leap forward for China Adam Minter
BLOOMBERG
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he number of Chinese registered as suffering from depression, anxiety, alcohol abuse, dementia and other mental illnesses increased by 25 percent between 2014 and 2016, according to Chinese authorities. By one recent accounting, they number 173 million. Only 20 million receive professional treatment. Long-standing social stigmas and a lack of treatment options account for most of the gap. But those biases and institutional weaknesses are starting to break down. This week, Wenzhou Kangning Hospital Co. Ltd., a chain of psychiatric hospitals, announced that it’s seeking a $29.5-million initial public offering (IPO) on China’s A-share market— making it the first mental-healthfocused business to be listed in Mainland China. It won’t be 2018’s flashiest or most lucrative IPO. But in terms of social significance, its value can’t be underestimated. The need is acute. Four decades of economic development have improved living standards while fraying social ties and creating new social pressures. A once-rural society held together by extended families is now an urban one in which single children compete fiercely from preschool onward. Depression, anxiety and insomnia are increasingly
common among the young, while dementia increases among China’s growing ranks of elderly. The failure to treat sufferers is as much a cultural problem as an institutional one. In China those who suffer from mental illness are shunned. Families and individuals will often hide mental illness for fear of alienating friends, colleagues and potential spouses. There’s a political dimension, as well. In the 1960s Mao Zedong outlawed the practice of psychiatry (he viewed it as bourgeois) and closed psychiatric hospitals, most of which were founded by foreign missionaries. The public hospitals have since reopened, but they’re often used to incarcerate political dissidents. In a recent survey, Chinese medical students expressed negative attitudes toward psychiatry as a specialty, citing the low pay and low prestige associated with the
The failure to treat sufferers is as much a cultural problem as an institutional one. In China those who suffer from mental illness are shunned. Families and individuals will often hide mental illness for fear of alienating friends, colleagues and potential spouses.
profession. They aren’t mistaken. Chinese psychiatrists earn less than other medical specialists, especially if they work in public hospitals and clinics where fees are tightly regulated. That low pay, combined with a kind of guilt-by-association with the stigmatized patients they’re treating, makes psychiatry a lowstatus profession. As a result, there are too few mental-health clinics and professionals to go around. In China there are fewer than two psychiatrists for every 100,000 people; in the US there are 12. With the public sector failing to meet needs, China’s rapidly expanding private hospitals, which already account for 57.2 percent of all hospitals in China, are stepping up. Wenzhou Kangning is the biggest chain focusing on mental health. Founded in 1996, it operates eight hospitals and nearly 2,600 beds on China’s affluent east coast, where its outpatient practice is primarily focused on young, white-collar workers exhibiting anxiety and depression. Business is good: The company claims that profit margins have exceeded 38 percent since 2014. And it will remain
good. The Mainland China mentalhealth-care market is expected to be worth $10 billion by 2019. Profits and projections like that allow the company to do things that the public sector can’t, such as train its own doctors, pay them well and provide them far more time to evaluate patients than over-stressed public hospitals. That model offers dignity to patients and encourages individuals and families to seek out care. Of course, it’s not for everyone. With fees that can range as high as $750 per night for a private room, China’s lower-income masses won’t be getting treatment at Kangning. But they may get treatment at other private facilities as more companies follow its lead into a massive market. Equally important, in a China that often equates price with quality, those high prices and the betterheeled clientele they attract serve to erode some of the social stigma attached to mental illness. And so, too, does the decision to seek out an IPO. In 2015 the company listed successfully on the Hong Kong stock exchange. A mainland listing matters more, if only because investors will be asked to pay to build mental-health facilities in their own country. Even five years ago, few Chinese would have considered that an opportunity worth examining. Today, if Chinese investors see no shame in buying into the once-stigmatized industry, then it’s likely that many patients won’t, either. For China, that’s a turning point that should improve the well being of millions along with the portfolios of investors.
Trump can’t run the government with temps
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N at least one respect, Donald J. Trump’s presidency is already historic: Never before has a president left so many senior jobs vacant for so long. If his goal is to downsize the bureaucracy—not a terrible idea—then he is going about it in a spectacularly wrongheaded way. There are 624 senior appointed positions in the federal government that require confirmation by the Senate, a number that accounts for about 0.0001 percent of the work force. For nearly 250 of those jobs, the White House hasn’t yet nominated anyone at all. Of the 371 candidates Trump has named for key positions, 240 have been confirmed, along with 49 lowerlevel nominees, for a total of 289. (By comparison, his four predecessors all
had at least 400 confirmed nominees at this point.) Aside from being managerial malpractice, this negligence may be illegal: At least a dozen administration officials are currently serving in a temporary capacity, even though the administration hasn’t nominated anyone for the job. That violates the 1998 Federal Vacancies Reform Act, which bars the executive branch from filling jobs with acting officials for longer than 300 days without sending a nominee to the Senate. The administration has attempted to work around this rule by delegating authorities to different offices in the same agency—but those moves may be subject to legal challenge, too. Because duties performed by
these acting officials are considered to have “no force or effect,” the administration risks jeopardizing some of its anti-regulatory priorities. Lawsuits brought under the Vacancies Act could halt, among other things, Trump’s efforts to loosen Obama-era restrictions on methane emissions on public lands and the serving of flavored milk in public schools. Trump has defended this delinquency by saying most of these jobs are “unnecessary.” But the majority of them were created by congressional statute—which is why Congress needs to apply more pressure by giving the Vacancies Act more teeth. Banning acting officials from drawing a salary after 300 days, or requiring that vacant offices be filled by career civil servants after the
deadline passes, might do the trick. If the president is serious about streamlining the senior leadership of the executive branch—and it has grown by 624 percent since 1961 —he should work with Congress to identify which high-level jobs are no longer necessary. Any essential functions should be reassigned to other parts of the bureaucracy, in accordance with the law. By all appearances, this administration has little interest in making the bureaucracy more responsive or efficient. Instead, the president seems intent on sabotaging the effectiveness of the federal government by refusing to fill his own branch’s upper ranks. Congress and the courts shouldn’t let him get away with it. Bloomberg View
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A12 Wednesday, January 3, 2018
Lawmakers call for strict monitoring of TRAIN’s impact on prices of fuel
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By Jovee Marie N. dela Cruz
@joveemarie
he House of Representatives is calling for the creation of an interagency body that would monitor the movement of oil prices to make sure consumers will not be taken advantage of once the impact of TRAIN—or the Tax Reform for Acceleration and Inclusion Act—is felt.
Also, leaders of the lower chamber warned oil companies that Package 1-A of TRAIN, or Republic Act 10963, should not have caused price spikes this early even if it took effect on January 1. Deputy Speaker Romero S. Quimbo of the Second District of Marikina said oil companies can be held liable for economic sabotage if proven guilty of profiteering. “I call on the ERC [Energy Regu-
latory Commission] to make sure that this kind of front-loading is not abused,” said Quimbo, a former chairman of the House Committee on Ways and Means. “While selling of gasoline bought earlier at a cheaper price is not per se illegal, if it is proven that such was done with malice and with pure profiteering intent, the company can be held liable for economic sabotage,” the lawmaker added.
VILLAFUERTE: “This proposed interagency body must be empowered to audit these private firms to make sure they do not shrewdly use the TRAIN as a ruse to jack up prices.”
Earlier, the Department of Finance said the increase in the prices of fuel is not expected to take effect on January 1, as it takes a few days for the 2017 oil stock to be used up, noting that “oil-price increase done by companies on January 1 might be considered profiteering.” House Committee on Appropriations Vice Chairman Luis Raymund F. Villafuerte of the Second District of Camarines Sur also said that oil companies could not automatically raise their prices until their old oil stocks have been used up. “The excise tax is paid at the point of importation or refinery, thus, the traders couldn’t jack up prices last January 1 on their old stocks—to the detriment of Filipino consum-
ers—using the new excise rates as an excuse,” Villafuerte said. He called on the government to create an interagency committee to monitor oil-price movements. “The government should put up right away an interagency committee to monitor price movements by oil companies and petroleum dealers—and prevent them from engaging in profiteering—following last January 1’s effectivity of the new excise-tax rates under the TRAIN law.” “This proposed interagency body must be empowered to audit these private firms to make sure they do not shrewdly use the TRAIN as a ruse to jack up prices,” he added. Villafuerte said the monitoring and audit work of the proposed interagency group would serve as a dry run for the nationwide monitoring activity that the Bureau of Internal Revenue and Bureau of Customs would be doing once the TRAIN-mandated fuel marking and monitoring system is in place. See “Lawmakers,” A2
Manufacturing... Continued from A1
Business expectations about output in the year ahead strengthened to a four-month high, while firms increased labor capacity and purchasing activity further during December,” he added. The Philippine manufacturing sector has been the strongest growing industry in the region for two consecutive months since October 2017, owing to strong demand ushered in by the holiday season. Data on the PMI of the rest of the Asean for December have yet to be released. Aw also dispelled concerns on inflation for the manufacturing sector, expressing positive outlook for prices in 2018. “ The PMI’s gauge of input prices, which exhibits a strong relationship with official consumer inflation data, slowed in December, suggesting headline inflation may have peaked and is likely to turn down from its current threeyear high,” Aw said. “Notably, inflation has been pushed higher by increased oil and food prices, as well as a weak exchange rate. As these pressures subside, the likelihood is inflation will remain within the Central Bank’s target of 2 [percent] to 4 percent in 2018,” he added.
LEAVING ON A JET PLANE The Ninoy Aquino International Airport—the country’s main gateway—is now crammed with scores of overseas Filipino workers and foreigners who spent the holidays in the Philippines. NONIE REYES
THE BEST WAYS YOUR ORGANIZATION CAN SUPPORT WORKING PARENTS Continued from A1
women, biological and adoptive, gay and straight, in all kinds of family structures. ■ Acknowledge and foster peer-to-peer learning: When working parents need advice or motivation, they turn to their respected colleagues and mentors, people they trust who understand the politics and culture inside the organization. Providing basic guidance to these internal “peer coaches” enables them to deliver the right messages when it matters. ■ Become a market maker: Leverage your organization’s existing infrastructure to connect working parents and make practical aspects of parenting easier. A more collab-
orative culture means employees who spend less time worrying about practical parenting problems. ■ Focus the resources you do have on key transition points: Parenthood depends on the ability to successfully navigate transition points. Coming back from leave, welcoming a second child or accepting a change in role can derail or strain the most competent working parent; concentrating benefits and programming on these critical points can yield significant return on investment. ■ Make vacation non-negotiable: Has every one of your people taken their allotted vacation in the past year? Does anyone have significant accumulated rollover days? Type A professionals working
in high-performance organizations often voluntarily bypass holidays and time off. Among working parents, this practice is particularly dangerous, leading to burnout, family issues, performance decline or attrition. ■ Set a visible example: No program will be as effective in supporting working parents as the example of admired leaders who are balancing job and family. The manager who keeps current photos of children at her desk, visibly leaves early for the soccer game and refers to the evening of homework-checking she faces —all while projecting an upbeat attitude about work—sends a powerful message. ■ Encourage managers to
get personal: Many managers shy away from personal conversation for fear of being inappropriate, and many employees hesitate to discuss personal issues for fear of seeming unprofessional. Yet, savvy managers can help employees nip many work-life issues in the bud and make their people feel supported by opening the door to new conversations. ■ Advertise resources already in place—and destigmatize their use: Many corporations already have significant employee resources in place, yet most employees don’t know they exist or how to access them. Smart companies make existing benefits visible and accessible to all. The New York Times News Service
www.businessmirror.com.ph
8 must-visit Philippine destinations for 2018
A secluded white beach in Siargao. CEB photo Continued from A1
We spoke to travel executives and tourism insiders who have recommended a list of eight must-visit destinations in 2018. So plan those vacations, readers, and get packing! 1. Jaybanga Rice Terraces in Lobo, Batangas—DOT Director Czarina ZaraLoyola says one need not travel six hours just to see amazing rice terraces. “The Rice Terraces in Barangay Jaybanga is one of the destinations the DOT is promoting as a must-see destination this year,” she said. While the rice terraces in Lobo may not be as far-reaching and as high as Banaue’s, or as old, it is still quite a breathtaking site. Built by hand by the locals, the mini-terraces are lush and green, and as soon as harvest time is near, it gives off a yellowish-gold glint from the ripening palay. “Beyond the rice terraces, Lobo itself is a pleasant locale to explore,”Loyola added. “It has mangroves, the Ulupong waterfalls, and the Malagundi Coral Wall, which has attracted a number of divers because of its rich and diverse marine life.” It’s takes about 3.5 hours to get to Barangay Jaybanga from Manila by private car (from SLEX take the San Jose/ Ibaan toll road, then turn left going to Lipa). By bus, take the one going to the Batangas Pier and go down at the main bus terminal. From there, take a jeepney ride to Lobo. There are a number of resorts to stay in at Lobo (click http://bit. ly/2C5jKtO), but if you have more days to spare, drop by the beach in San Juan first, hang out at a local resort, then proceed to Lobo the next day. 2. Siargao, Surigao del Norte— Our travel experts were unanimous in recommending Siargao as one of the places to be in 2018. It used to be haven for local and a few international surfers, but since the increase in the number of carriers offering direct flights, the destination has attracted a diverse array of travelers longing for secluded white beaches, quiet spaces and a night life reminiscent of the early days of Boracay. “There’s more to surfing in Siargao,” according to Charo Logarta Lagamon, director for corporate communications of Cebu Pacific. “While the ber months make Siargao any surfers’ paradise, the summer months make Siargao a haven for any beach-lover and nature-trippers with enchanting lagoons, caves, coral reefs and bizarre rock formations. Neighboring Guyam and Naked islands boasts of pristine white-sand beaches and great snorkeling; while the Magpupungko Tidal Pool has bizarre rock formations with a natural pool. It’s separated from the ocean by a large reef.” Most of the accommodations are located in the municipality of General Luna, but there are other resorts and hotels that offer visitors enough privacy, but still being accessible to the main road. TripAdvisor offers its top 5 list of hotels in Siargao, which fit any traveler’s budget; click http://bit.ly/2q8baZM. Cebu Pacific flies six times a week between Manila and Siargao; and daily between Cebu and Siargao. 3. Masbate—To a people of a certain generation, Masbate was once a place famous for its mythical flying monsters like the aswang. Unknown to many, the province was one of the first areas in the Philippines settled by Spanish colonizers. “People have forgotten that Masbate is rich in Spanish history,” according to Aileen Clemente,
president of Rajah Travel Corp. “One of its most famous Spanish-era landmarks, for example, is the Aroroy Lighthouse in Bugui Point, which continues to stand to this day.” There are also a number of heritage homes designed in the bahay na bato mold prevalent during the Spanish era, which can be found in the city proper (Villa Bayot where a Santo Entierro—the dead Christ—lies encased in glass), as well as in the municipality of Monreal, and on Ticao Island. Now one of the main cattle raisers in the country, Masbate also hosts a rodeo festival every April, Clemente added. Aside from a parade of horses and cattle, dancers dressed in Western cowboy outfits strut down the main avenue, or participate in cattle wrestling contests. She also said the province is teeming with marine life—“it’s a good place for diving and see manta rays. It is on the migratory path for sea creatures.” Homestays are available in Masbate, as well as in other islands, as there is only a smattering of adequate accommodations in the city proper. Check out booking.com for a list (https://booki. ng/2lCU8ye), or inquire at the Masbate Provincial Tourism Office. CEB flies from Manila to Masbate once a day, and from Cebu, also once daily. (Pro tip: Flying from Manila to Masbate via Cebu is slightly cheaper, with many flights to Cebu to choose from.) Alternatively, you can take the Isarog bus that leaves from its Edsa or Araneta-Cubao terminals going to Masbate, with fares from P800 to P2,000+one way, depending on the bus type. 4. Biri Rock Formations in Northern Samar—One of the destinations DOT is also promoting, the Biri rock formations, is one of those awe-inspiring tourist spots that are, unfortunately, still quite a distance to travel to. For now, only Philippine Airlines flies to Catarman, the capital of Northern Samar, from the Clark International Airport in Angeles, Pampanga (one flight every M-W-F-Su), and even then, one must ride a jeepney (to Lavezares town) then a boat to get to Biri Island. There are also very few accommodations to stay in on the island, mostly bed and breakfasts, so we’re talking about raw and rustic here. (A few on the list are Glenda’s Bed and Breakfast, Villa Amor and Biri Resort.) But DOT Director Loyola promises that seeing the rock formations up close is worth the long trip. “Shaped by wind and waves, these massive rocks are chiseled in different directions creating unique patterns and colorful designs,” she explained. These natural geological sculptures are to be found along the jagged coastline of this weatherbeaten island. She added the island itself is a good spot for diving and a tour of mangrove areas. Other islands worth exploring in Northern Samar are San Antonio, with its magnificent white beaches, and Capul, which was once the last pitstop for Spanish galleons before making the long trip to Acapulco in Mexico. Capul is known for its centuries-old lighthouse and Capul Church, which was established by the Jesuit Order in the 16th century, according to Loyola. To get to these islands, take a van or jeepney from Catarman to Victoria (if you’re going to San Antonio), or to Allen (if going to Capul), then a boat to your end-destination.