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n Monday, July 2, 2018 Vol. 13 No. 261

@BNicolasBM

HE President’s consultative Committee (Con-com) reviewing the 1987 Constitution estimates that each of the 18 federated regions will have P60 billion to P65 billion in financial resources when the country shifts to a federal system under the draft of the proposed new constitution.

The Con-com is proposing to retain the existing 17 regions but with the addition of Negros Island Region as a federated region. Con-com Spokesman Conrado I. Generoso told the BusinessMirror that this amount is the “money

that will be directly in the hands and under the control of the government of the federated regions.” Using 2017 data, the initial estimate of P60 billion to P65 billion was computed based on the proposed provision that every federated

region will have a 50-percent share in the four biggest revenue sources of the national government—income, excise and value-added taxes, and customs duties and tariffs—while the remaining 50 percent of these revenues will be the share of the

Olympism in PPPs Alberto C. Agra

n Saturday, June 30, the Philippine Olympic Committee (POC) celebrated Olympic Day at the PhilSports Complex with the theme “Move. Learn. Discover.” Some 500 athletes and guests commemorated not just the staging of the quadrennial event, but also the values and essence of Olympism.

federal government. Also included in the computation of the amount were proceeds from certain taxes and fees, the collection of which will be transferred to each regional government. These are donor’s tax, estate tax, documentary stamp tax, land transportation franchise fees, vehicle

According to the International Olympic Committee, “Olympism is a philosophy of life, exalting and combining in a balanced whole the qualities of body, will and mind. Blending sport with culture and education, Olympism seeks to create a way of life based on the joy found in effort, the educational value of good example and respect for universal fundamental ethical principles.” Continued on A11

Continued on A2

IF YOU THINK TRAFFIC’S BAD, BRACE FOR WORSE IN 2ND HALF OF THE YEAR By Claudeth Mocon-Ciriaco

By Rea Cu

Correspondent

@ReaCuBM

HE national government (NG) has reported disbursed subsidies for the month of May of P3.832 billion, with the National Irrigation Administration (NIA) receiving the bulk of the subsidy, according to data from the Bureau of the Treasury (BTr). Based on the latest data from the BTr, subsidies provided by the government amounted to P3.832 billion, contracting by 6.4 percent, from the P4.097 billion disbursed in the same month for 2017. As of end-May, subsidies allotted to government-owned and -controlled Continued on A12

ead

L AlbertoPPP C. Agra

“The taxation power will be shared, meaning, the bulk of the taxes, the bulk of the taxation powers will still be exercised by the federal government, but there will be taxes that will be collected by the regional government.”—Generoso

NIA gets bulk as NG subsidies for May shrink 6.4% to P3.8B

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Federated regions will each control ₧60B-65B By Bernadette D. Nicolas

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Heavy traffic is seen on Sunday, July 1 at the Edsa Pasay Rotonda, where some provincial bus terminals are located. The MMDA has advised the public to brace for worse traffic conditions in the second half of the year, as authorities undertake urgent road repair and critical infrastructure upgrades. NONIE REYES

PESO exchange rates n US 53.5220

T could only get worse: the news about Metro Manila’s traffic, that is. Days after authorities were forced to close the strategic Otis Bridge in Paco, Manila, to avert its collapse—thus diverting to small alternative roads a huge vehicular volume, including 6,000 container trucks passing there daily—authorities alerted the public to the impact of several other infrastructure works. The Metropolitan Manila Development Authority (MMDA) on Sunday warned of heavy traffic in the second half of the year as simultaneous road construction and repair works began in different locations in the metropolis. Among these projects are: North Luzon Expressway Drainage Enhancement

₧2,000 The fine that violators face for breaking restrictions on provincial buses along Edsa

Project along A. Bonifacio Road that began on July 1; Construction of an elevated guideway for the Metro Rail Transit 7 (MRT 7) along North Avenue beginning on July 2; Emergency leak repair on a large mainline along EdsaShaw Boulevard area starting July 7; and Replacement of Buendia Bridge also beginning on July. See “Traffic,” A12

n japan 0.4844 n UK 70.0068 n HK 6.8200 n CHINA 8.0790 n singapore 39.1386 n australia 39.3494 n EU 61.9303 n SAUDI arabia 14.2717

Source: BSP (29 June 2018 )

News

BusinessMirror

A2 Monday, July 2, 2018

AFP-PNP probers readying report on ‘misencounter’

By Rene Acosta

@reneacostaBM

HE joint board of inquiry (BOI) set up by the military and the Philippine National Police (PNP) on the alleged misencounter in Samar region bettween soldiers and policemen that killed six cops last week is looking to submit its report by Wednesday (July 4).

“We will just be meeting with the joint board of inquiry set up by the military and the Philippine National Police on the alleged misencounter in Samar region between soldiers and policemen that killed six cops last week is looking to submit its report by Wednesday [July 4]. “We will just be meeting with the PNP-BOI for us to finalize our report. Our timeline is we should already have a report by Wednesday,” said Armed Forces of the Philippines Inspector General Lt. Gen. Rafael Valencia, who heads the BOI

for the military side. Valencia said on Sunday that the BOI has finished gathering evidence, and the only ongoing discussion now pertains to the “concerns” by both sides—about which he did not elaborate. The board was created to look into the events surrounding the deaths of the six members of the police’s Regional Mobile Force Battalion 8 and the wounding of nine others in what was reported as an ambush by members of the Army’s 87th Infantry Battalion (IB). The military, however, main-

tained the incident was a misencounter. The soldiers had claimed they mistook the cops for communist rebels. Valencia said the joint report would be submitted to PNP chief Director General Oscar D. Albayalde and Armed Forces (AFP) Chief of Staff Gen. Carlito G. Galvez Jr. Both sides of the BOI also have their separate reports for their own services. Aside from the BOI, the PNP also created a special investigation task group that is looking into the Samar incident, while the 87th IB and the 8th Infantry Division also created and conducted their own investigation. Meanwhile, the 8th ID said the AFP has maintained a very harmonious relationship with the PNP for the “longest time,” forging a formidable team as dependable pillars of the government in the security sector.

“For years, the capability and interoperability of both were proven, primarily in addressing local insurgency, secessionism, and threats of terrorism. The two had been conducting joint operations in the fight against internal threats and national crimes to promote better and peaceful community,” it said. The 8th ID said the partnership was well demonstrated in the fivemonth siege of Marawi City last year, where soldiers and policemen fought side by side in rooting up terrorists from the city. “The AFP, in general, remains optimistic that the situation will be resolved immediately so that they can continue working and focus on matters that are more essential to the interest of the government and the country,” said 8th ID commander Major General Raul Farnacio.

We will just be meeting with the PNP-BOI for us to finalize our report. Our timeline is we should already have a report by Wednesday.” —Valencia

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45 days after signing of MOU, not a single HSW sent to Kuwait

OT a single Filipino household service worker (HSW) has been deployed to Kuwait 45 days after the memorandum of understanding (MOU) between Kuwait and the Philippines was signed. The MOU was arrived at on May 16, President Duterte and ranking Kuwait officials agreed on measures to regulate employment following a diplomatic row over the alleged abuse of overseas Filipino workers (OFW) in the Middle East emirate. The most shocking case of abuse involved OFW Joanna Demafelis, whose body was found in a freezer in her Lebanese and Syrian employers’ house. Present during the May 16 MOU signing were Foreign Secretary Alan S. Peter Cayetano and Labor Secretary Silvestre H. Bello III. Recruitment consultant Manny Geslani explained why no HSW has been deployed to Kuwait despite the signing of the MOU: Implementing guidelines have yet to be enforced by the Philippine Overseas Employment Agency (POEA). The guideline was to govern the rules for deployment of HSWs to Kuwait, “as soon as possible,” Geslani added. Duterte ordered the “total lifting” of the ban for all types of workers to Kuwait, including skilled workers and HSWs. POEA Administrator Bernard Olalia is supposed to spell out the provisions of the MOU that includes a new unified contract of employment for HSWs to be agreed upon by the Philippines and Kuwait Bello has issued the administrative

Federated regions will each control ₧60B-65B Continued from A1

registration, driver’s license fees and others to give them a steady stream of revenues. At present, these taxes and fees are collected by different agencies of the national government. “Federalism is about distributing the powers of the government. In this case, the power of taxation, which under a unitary system is a monopoly of the central government,” Generoso said. “Giving the regions the power to collect taxes is a means to empower them and their local government unit components economically.” Prior to the proposal, income taxes, excise taxes and valueadded taxes were already listed among the national internal revenue taxes from which 40 percent of the internal revenue allotment (IR A) of the local government units are sourced. Now, however, Con-com is eyeing to have regional governments also have a share in the customs duties and tariffs. At present, these

are not included in the revenues from which the IRA is computed. Under the Local Government Code (LGC), the IRA share of local government units is 40 percent of national internal revenue taxes collected in the third fiscal year preceding the current fiscal year. The remaining 60 percent goes to the national government. These national internal revenue taxes that were sources for the IRA include income tax, estate and donor’s tax, value-added tax, other percentage taxes, excise tax, documentary stamp taxes and such other taxes that may be imposed and collected by the Bureau of Internal Revenue. The tariff and customs duties, which are collected by the Bureau of Customs, are not included in the national internal revenue taxes, which are the basis for computing the IRA of local government units.

Equalization fund

Generoso also clarified that the amount of P60 billion to P65 billion does not include yet the equaliza-

tion fund, which is meant to be distributed to those regions who might need financial assistance. According to the Con-com proposal, the equalization fund will amount to 3 percent of the annual general appropriations of the federal government. “A f t e r d i s t r i b u t i n g t h e 50-percent share of the top 4 revenue sources of the government and after giving to the federated regions the power to collect certain national taxes, there will still be gaps in financing in the regions. Meaning, there will be regions that will have higher revenues, higher income than other regions,” he said in a mix of English and Filipino.“To fill in the gap, the difference of regions that are more economically developed versus regions that are less economica l ly developed, the funding will come from the equalization fund.” He also pointed out that the higher the economic activity in a federated region, the higher the taxes and fees they can collect.

“That is the challenge [for every federated region]: to improve your economy, promote your economy, build up your economy,” he said. Generoso pointed out that the committee needed to be careful with their design of taxes to be collected because they considered the need for a strong federal government. “The taxation power will be shared, meaning, the bulk of the taxes, the bulk of the taxation powers will still be exercised by the federal government, but there will be taxes that will be collected by the regional government,” he said. The taxation power given to the regional government is important so that they can determine their economic policy or program within their regions, he added. “If you have revenue sources, you can use [them] not only for social programs and projects but for infrastructure to support your economic programs for certain economic activities that will promote business etc.,” he said. “You have to give them that so that they will not be dependent on the doleout or what will be given to them by the federal government.” Under the Con-com’s design, a regional government will be distinct from the provincial governments. A Regional Legislative Assembly is constituted by one set of representatives elected per province and

RCEP. . .

Continued from A12

“While countries pay heed [to] their sensitivities, they should also urge each other to take into [consideration] the [compromised] landing zones on the table,” Lopez said. “The Philippines also emphasized that while countries attend to national interests, they should also take into account that having an agreement that is mutually beneficial requires trade-offs,” the trade chief added. The RCEP negotiators—members of the Association of Southeast Asian Nations (Asean), Australia, China, India, Japan, New Zealand and South Korea—believe the trade deal can still be concluded this year. As a resolve,

orders lifting the ban for domestic workers, while the POEA has issued Memorandum Circular No. 10, series 2018, spelling out the requirements for Private Recruitment Agencies and their counterparts. The new edict requires that Foreign Placement Agencies should set up an escrow account for a minimum of $10,000. Another requirement is the registration of the HSW with Kuwait’s health insurance system. Thousands of applicants recruited by private agencies, Geslani said, have been cooling their heels in Manila waiting for the guidelines to be implemented by the POEA. Several thousands more in the provinces are looking forward to the normalization of deployment of HSWs to Kuwait. Meanwhile, the POEA has sternly warned recruitment agencies and accredited language and nonlicensed training centers to stop the recruitment of caregivers going to Japan. In an advisory, it was learned that some recruitment agencies associated with recruitment associations whose market is Japan have been training caregivers and care assistants for the Japanese market under the Japan Technical Intern Training Program. The POEA warned applicants to be wary of unauthorized persons or groups who promised various jobs in Japan. “Only licensed recruitment agencies on the list are qualified as “Sending Organization” for the Japan Technical Intern Training Program,” Geslani said.

Recto L. Mercene

Continued from A1

Business group’s worry

highly urbanized or independent chartered city while an equal set of representatives shall be elected region-wide by proportional party representation. They then elect a regional governor and regional deputy governor, who will preside over the Regional Legislative Assembly. Asked if the regional government will have the power to impose higher taxes than other regions, he said it is unlikely that such will happen, as the existing rates are still set under the National Internal Revenue Code (NIRC). He added that regions will have to craft their economic and investment programs and they will have to be competitive to generate investments in their regions. “Also, under the constitution, taxation should be uniform, equitable and progressive so the legislative assembly cannot impose unreasonable taxes, otherwise their tax law can be stricken down by the Federal Constitutional Court for being unconstitutional,” he said. “Even Congress cannot enact laws that will violate the principle of progressive, equitable and uniform taxation.” Generoso also said that, once the proposed Constitution becomes effective, there will still be a need to amend existing laws, such as the NIRC and the LGC.

In a joint position paper on fe de r a l i s m on Ju ne 21, t he country’s main business groups expressed concern over the regions’ added responsibility of ta x collection and that some “states” w il l per for m poorly, which may affect deliver y of infrastructure and other services. It also cautioned against the planned equalization fund and argued that only a handful of regions will have the capacity to independently maintain strong production and trade that will support their population. The position paper was signed by the Financial Executives Institute of the Philippines, Makati Bu si ness C lub, M a n a gement Association of the Philippines and the Philippine Chamber of Commerce and Industr y. T he Semiconductor and Electronics Industries of the Philippines Foundation Inc. and Cebu Business Club were also signatories. T he Con-com is a lready 100-percent done with its proposed constitution and is on track to submitting its draft to the President on July 9 after the Committee has subjected the draft to final review. Its final en banc session is scheduled on July 3, andCon-com members are expected to vote on the adoption of the entire draft federal constitution.

lead negotiators were directed to fast-track consultations and the crafting of chapters toward the completion of the trade deal. “At the meeting, RCEP economic ministers exercised political leadership and instructed their respective negotiators to exercise flexibility to bring the RCEP negotiations to conclusions within the year. The ministers also tasked the negotiators to hasten domestic consultations and intensify bilateral negotiations so they can improve the offers, especially between Asean FTA [freetrade agreement] partners [that] do not have FTAs between them,” Lopez said. Chapters on sanitary and phytosanitary measures; customs procedures and trade facilitation; and standards and technical regulations are expected to be completed

in the round of talks in Bangkok this month. After that, trade ministers will meet again in August to review the chapters and “keep and sustain the momentum, and pave the way for the conclusion of negotiations by the end of the year.” The RCEP is an ambitious trade deal aimed at consolidating the Asean’s bilateral FTAs with its economic partners. RCEP economies account for almost half of the world’s population, about 30 percent of global GDP and over 25 percent of the world’s exports. It is also branded as a strong counterpart of the Trans-Pacific Partnership, as it will cover trade in goods, trade in services, investment, economic and technical cooperation, intellectual property, competition, e-commerce, dispute settlement and other issues.

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Editor: Vittorio V. Vitug • Monday, July 2, 2018

PHL seeks to attract more Japan women travelers By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

HE Department of Tourism (DOT) is confident of exceeding its targeted 600,000 Japanese tourists this year, as it launched a program specifically addressing the growing market for women travelers.

Led by Tourism Secretary Bernadette Fatima Romulo Puyat, the DOT last week introduced Japanese fashion model Loveli, and actress and Miss UniverseJapan 2014 Hiro Nishiuchi as the Philippine Tourism Fun Ambassadors, during the Philippine Business Mission (PBM) held at the Ritz Carlton Hotel in Ropponggi, Tokyo. In a n i nter v iew w it h t he BusinessMirror, the DOT chief said the introduction of these ambassadors is “in line with our Joshi Tabi [Women’s Travel] program to reach out to the ladies market since our arrivals from Japan are still largely male.” This is part of the DOT’s recently launched Kirei Ni Nareru Firipin (The Philippines Makes You Beautiful Inside and Out) sub campaign to promote health and wellness, culinar y/gastronomy tourism, shopping, studying English, and

various nature-based activities for the modern woman. “Our tourism fun ambassadors are celebrities who embody healthy wholesome lifestyles and have many followers on social media. They are influencers who we will use in our various promotional activities. We have also created social-media content for us and for them to use to promote Philippine destinations,” she stressed. The PBM, an annual sales blitz held in Japan by the DOT and the Tourism Promotions Board, proceeded to Nagoya and Osaka from June 26 to 28. Arrivals from Japan grew by 9.14 percent to 584,180 in 2017, ma k ing it the four th-largest source of tourists for the Philippines. In an e-mail, DOT Spokesman and Undersecretary for Tourism Development Planning Benito C. Bengzon Jr. said last year’s increase in Japanese arrivals “is 100

Guests are touched by the hands of Hilot massage therapists at the Philippines Experience Zone during the Philippine Business Mission in Tokyo at the Ritz Carlton Hotel, Roppongi. MA. STELLA F. ARNALDO

percent higher than Japan’s outbound rate in 2017 of 4.5 percent. As of April 2018, Japanese arrivals continued to grow by 9 percent [to 230,199]. The Philippines is expected to breach the 600,000mark in Japanese arrivals to the

Philippines this year.” In addition, Tourism Attaché to Japan Verna Covar Buensuceso said in a separate e-mail, “During the Golden Week holidays, SkyScanner, an online search engine for flights, reported that the Phil-

ippines registered the highest increase in terms of searched flights, growing by 107 percent over the previous year. This is a good indication that our arrivals targets are achievable.” Golden Week is a cluster of holidays in Japan usually falling in the last week of April to the first week of May, when Japanese take their holidays abroad. The Tokyo leg of the PBM was held on June 25. The Philippine delegation, composed of 36 private sector and DOT Region 7 (Central Visaya) and 3 (Central Luzon) representatives, was led by Romulo Puyat in her first overseas engagement as DOT head. Around 155 Japanese travel trade representatives attended the Philippine Fun Seminar sessions, said Bengzon. This year’s B2B Travel Mart was participated in by 59 representatives from 36 Philippine travel companies (i.e., resorts, hotels, ground handlers, airlines, DOT regional offices) from Metro Manila, Bataan, Batangas, Pampanga, Subic, Palawan, Cebu and Bohol. There were 165 Japanese buyers who attended the B2B event, not only from Tokyo, but also from Shizuoka, Ibaraki, Yokohama and Hokkaido, he added. Romulo Puyat attended various meetings with important travel industry stakeholders in Japan, including officials of the influential Japan Association of Travel Agents. A standing-room-only press conference also introduced the new DOT chief and the Philippine Tourism Fun Ambassadors.

Around 61 press people representing 36 Japanese media outfits attended the event, and were shown Hiro’s destination video of Coron, Palawan and Loveli’s destination video of Bohol. This year the PBM featured a Philippine Experience Zone to highlight the destinations of the country with fun, interactive and experiential activities. In the evening, some 300 delegates from the Philippines and Japan travel industry, as well as Japanese media, attended the Philippine Reception led by Romulo Puyat and Philippines Tourism Ambassador to Japan Jose Laurel V. “Networking between the Philippine private sector and their Japanese counterparts continued in a relaxed and fun setting,” said Bengzon. The venue was bedecked in colorful arangyas or chandeliers inspired by the Pahiyas Festival of Lucban, Quezon. The buffet spread featured some iconic Philippine dishes like Tuna Kinilaw, Tortang Talong, Kare-Kare, Adobo and Pansit and desserts such as fresh tropical fruits and mango pastries. The evening’s entertainment program was hosted by Japanbased Filipino celebrity Ma. Teresa Gow and DOT Japan’s Yasuhiko Yokoyama, and featured mostly Japan-based Filipino talents including the Philippine Cultural Troupe of the Tokyo Gaidai University, Last Call, Krissha, Loveli, Sharmaine Animas and the Philippine All Stars.

More firms barred from bidding Average home price up 2.1% in Q1–BSP for World Bank-funded projects By Bianca Cuaresma @BcuaresmaBM

By Cai U. Ordinario

@cuo_bm

ore companies and individuals have been temporarily disallowed by the World Bank to participate in its projects after they were found to have violated the Washingtonbased lender’s rules. The World Bank’s disbarment of four firms and individuals this year also makes them ineligible to make a pitch for projects funded by the Manila-based Asian Development Bank. The ADB has barred a total of eight firms and individuals this year on account of its cross-debarment agreement with the World Bank. The World Bank said it barred four firms and individuals due to “fraudulent and collusive practices” and violations of its guidelines. Its published list indicated that it disallowed nine firms and individuals from participating in its projects last year. “ The firms and individuals listed are ineligible to be awarded a World Bank-financed contract for the periods indicated because they have been sanctioned under the Bank’s fraud and corruption

policy as set forth in the Procurement Guidelines or the Consultant Guidelines,” the World Bank said. Firms and individuals that have been sanctioned by the World Bank are Innogy Solutions Inc. and P-Square Associates Co. and their principals. Innogy Solutions and its president were disallowed from participating in World Bank projects between March 16, 2018 and September 15, 2023. The same company and individual were barred from participating in ADBfunded projects between March 27, 2018 and February 15, 2023. P-Square Associates and a consultant of the company will not be allowed to take part in World Bank projects from March 13, 2018 to March 12, 2020. For ADB, P-Square Associates and the consultant of the company, were barred between March 27, 2018 and March 12, 2020. Other firms sanctioned by the ADB were also temporarily banned by the World Bank last year. These include Oberthur Technologies Philippines; Oberthur Card Systems SA; FrancoisCharles Oberthur Fiduciaire SA;

and Belen Gacad, who was found to have engaged in corrupt practices by the World Bank in 2017. T he A DB bar red the same firms and individuals under the cross-debarment agreement of multilateral development banks enforced in 2010. “Cross debarment is an agreement among the A frican Development Bank Group, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American D e ve lo pme nt B a n k a nd t he World Bank Group (referred to as Mu lt i l atera l Development Banks) to mutually enforce each other’s debarment actions, with respect to the four harmonized sanctionable practices, i.e. corruption, fraud, coercion and collusion,” the Cross Debarment web site stated. The ADB signed the “Agreement on Mutual Enforcement of Debarment Decisions” on June 9, 2010, while World Bank signed the agreement on July 19, 2010. Based on the published list of the ADB, the multilateral development bank has barred three firms last year.

esidential real-estate pr ices continued to increase in the first quarter of 2018, albeit at a slower pace compared to the rate of expansion recorded a year ago, according to data from the Bangko Sentral ng Pilipinas (BSP). The BSP recently reported updates on the quarterly release of the residential real-estate price index (RREPI)—a Central Bank initiative officially launched in 2016. The Central Bank’s first-quarter report showed that residential real estate prices grew by 2.1 percent in the January-to-March period, slower than the 6.5-percent hike recorded a year ago. The index rose to 116.3, from the previous quarter’s 113.9. The RREPI measures the average changes in prices of different types of housing units over a period of time, where the growth rate of the index measures house inflation. The construction of the RREPI is based on the banks’ approved housing loan applications. Earlier this year, some interna-

tional analysts flagged local banks’ exposure to real estate as “one of the pockets of risks” to be monitored in the banking sector. Moody’s Investor Service said while banks’ asset quality generally improved in recent assessment, they are still exposed to potential risks, particularly in the real-estate sector. In January BMI Research—a Fitch Group subsidiary—also said downside risks to the banking sector still loom in the horizon, as seen in their “heavy lending” to the real-estate sector. The growth in the country’s RREPI was driven by the increase in the average residential prices in both the National Capital Region (NCR) and areas outside the National Capital Region (AONCR). Average residential property prices grew faster in NCR at 2.7 percent, while those in AONCR grew 0.9 percent. According to the BSP, in the NCR the higher growth in prices of condominium units, townhou ses, a nd duple xes of fset the decline in prices of single detached houses. T he faster increase in prices of townhouses and duplexes in AONCR outweighed the decline

in the prices of single detached houses and condominium units. In terms of types of housing units across the country, duplex units posted the fastest growth in prices—registering a 44.2-percent hike for the quarter, accelerating from the previous year’s 20.5-percent contraction. This was followed by the prices of townhouses, which expanded by 2 percent, and by 2 percent for condomium units. Bucking the trend is the average price of single detached/attached houses, which contracted by 0.6 percent during the quarter. In terms of the profile of realestate loans during the quarter, about 73.5 percent of all residential property loans were for the purchase of new housing units. Data from the BSP showed that, by type of housing unit, 48.9 percent of residential property loans were for the acquisition of condominium units, followed by single detached units to account for 43.2 percent and townhouses at 7.6 percent. By area, condominium units were the most common house purchases in the NCR, while single detached houses were prevalent in AONCR.

A4 Monday, July 2, 2018

The World BusinessMirror

White House backs off Trump Tweet on Saudi Arabia helping lower oil price

S President Donald J. Trump’s administration backed off an assertion he made earlier indicating he persuaded Saudi Arabia to effectively boost oil production to its maximum capacity, which would have threatened to blow up a fragile truce agreed by the Organization of Petroleum Exporting Countries (Opec) and inflamed the Saudi-Iran rivalry. “Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & disfunction in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference...Prices to [sic] high! He has agreed!” Trump said on Twitter Saturday. But in a statement Saturday evening, the White House said King Salman bin Abdulaziz affirmed that Saudi Arabia has 2 million barrels a day of spare production capacity, “which it will prudently use if and when necessary to ensure market balance and stability, and in coordination with its producer partners, to respond to any eventuality.” The White House statement aligned with one by the state-run Saudi Press Agency saying that the king and Trump, in a phone call

Saturday, discussed efforts by the oil-producing countries to compensate potential shortages in oil supply. The two leaders stressed the importance of maintaining oil-market stability, according to the report. The agency didn’t say the leaders agreed and didn’t make any reference to 2 million barrels. Iran Oil Minister Bijan Namdar Zanganeh said any production increase above limits agreed to by Opec would “breach” the deal, according to a letter he sent to Opec President Suhail Al Mazrouei and distributed by the Iran Oil Ministry’s news service Shana. Opec should reject the US call for a production increase, which is “politically motivated against Iran,” he said. The telephone exchange is another sign of how US-Saudi ties have improved under Trump compared with the Obama administration, which

alienated the kingdom by seeking a nuclear deal with Iran. Trump last year chose Saudi Arabia for his first foreign trip. Since then, the two governments have announced hundreds of billions of dollars worth of contracts, with Trump openly bragging about how many US jobs the Saudis were helping to create.

Iran’s response

If the Saudis had agreed to Trump’s request, “that means he is calling on them to walk out from Opec,” Iran’s Opec Governor Hossein Kazempour Ardebili said in an interview. “There is no way one country could go 2 million barrels a day above their production allocation unless they are walking out of Opec.” At a meeting of the Opec in Vienna last weekend, Saudi Arabia—the group’s largest producer—joined other members in agreeing to scale back its overcompliance with output cuts that have been in place since the beginning of 2017. Saudi Energy Minister Khalid Al-Falih indicated the group’s action would add nearly 1 million barrels a day to the market. Brent crude, the global oil benchmark, topped $80 a barrel in midMay, the highest level since November 2014. It closed Friday at $79.44 a barrel. US retail unleaded gasoline prices, including taxes, averaged $2.833 a gallon for the week ended June 25, according to the nation’s Energy Information Administration. That’s up about 55 cents from the same period last year, at a time Trump’s

Republican Party is trying to hold on to its majorities in Congress in the November midterm elections.

Spare capacity

IF Saudi Arabia were to respond to Trump’s request, it would stretch spare production capacity to the limit, meaning that any supply outage could have an out-sized effect on oil prices. It would also likely aggravate other Opec members, such as Iran and Venezuela, which initially sought to prevent any increase as Opec, along with allies led by Russia, headed into their Vienna meetings earlier this month. “We will be in uncharted territory,” Amrita Sen, chief oil analyst at Energy Aspects Ltd. in London, said. “While Saudi Arabia has the capacity in theory, it takes time and money to bring these barrels online, up to one year,” she said. Saudi Arabia has the capacity to pump a maximum of 12.04 million barrels a day, according to the International Energy Agency. The kingdom pumped slightly more than 10 million barrels a day in May. Oil analysts and consultants nonetheless think the kingdom can produce more than 12 million barrels a day in an emergency through a so-called surge, in which oil fields are depleted beyond what engineers consider a reasonable rate. In addition, Saudi Arabia shares with Kuwait a so-called neutral zone that hasn’t been used for the past couple of years and can pump as much as additional 500,000 barrels a day.

‘Ramp up’

“Saudi Arabia can use some of its stocks to boost exports, visible to the US president, while it takes time to ramp up operating capacity,” said Olivier Jakob, head of Swiss-based consultant Petromatrix GmbH. Trump earlier this month blamed Opec for oil prices being too high, reprising comments he made on Twitter in April. At meetings in Vienna on June 22 and 23, Opec and its allies cobbled together a delicate accord in order to satisfy some producers, like Iran and Venezuela, which wanted to limit output, and others like the Saudis, which sought to ease away from the supply cuts. The curbs were intended to help drain a global oil glut, a goal that has largely been achieved, though supply disruptions are now adding pressure to prices. Venezuela is in the midst of an economic crisis, which has caused oil production to plummet. In Libya, where a dispute over control of key ports has hindered output, the Arabian Gulf Oil Co. on Saturday halted 220,000 barrels a day of production, according to a person familiar with the outage. Trump’s administration in earlyMay said that it would renew US sanctions on Iran and has sought to reduce other foreign buyers’ purchases of Iranian oil. “I guess the Saudis want to give the confidence to Trump to go very hardcore on Iran,” tweeted the oil market’s most vocal bull, commodities hedge-fund manager Pierre Andurand. “It seems that Iranian regime change is the priority number 1 for the Saudis.” Bloomberg News

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Hyundai warns US auto tariff would be ‘devastating’

yundai Motor Co. joined a chorus of rebuke from global automakers against possible import tariffs by the Trump administration, warning the duties would be “devastating” to the South Korean automaker and its US operations. The tariffs “would not only harm Hyundai Motor’s US business operations and the American workers and communities the company supports, but it would also jeopardize Hyundai Motor’s plans for additional US investments,” Hyundai Motor said in comments submitted to the US Department of Commerce on June 29. Threats of a 25-percent tariff on imported cars and parts contemplated by the United States has sent shivers through the global auto sector. Hyundai joins other automakers and suppliers, including General Motors Co. and Toyota Motor Corp., in slamming the plan, which seeks to place import restrictions under Section 232 of a 1960s US trade law in the name of national security. The Seoul-based carmaker insisted that its imports of cars and automotive parts into the US don’t constitute a security threat, adding the United States and South Korea “share a common national security interest in halting North Korea’s nuclear ambitions.” Restrictions on auto-related trade would “severely weaken South Korea’s ability to advance shared US-Korea security interests in the region,” Hyundai said. Hyundai has invested about $8.3 billion in the US, directly employs 25,000 workers there and indirectly provides another 47,000 jobs through its dealership network, according to the document. The world’s fifthlargest automaker together with affiliate Kia Motors Corp. disclosed in 2017 a plan to spend $3.1 billion in the United States in the five years through 2021. BloombergNews

UK forecaster issues 1st-ever thunderstorm alert Mexico presidential elections center

on disgust with corruption, violence

On what has been the hottest week in Britain so far this year, people relax in the sun during lunchtime as they sit on the steps of The Scoop, a riverside amphitheatre, backdropped by the Tower of London, in London, on June 28. AP

ONDON—Br ita in’s Met Office weather forecasting service has issued its first thunderstorm alert in the agency’s 164-year history. The official forecasters say torrential rain, hail and lightning are possible Sunday in parts of southwest England and Wales as a long,

dry heatwave persists in much of Britain. The forecasting service introduced the thunderstorm alert system last month along with a system to warn residents about expected lightning strikes. The Met Office is also warning of potential hazardous driving

conditions in regions hit by the predicted storms. High temperatures and sunny conditions have brought tens of thousands of people to Britain’s coastal towns and cities. London’s many riverside pubs have also been filled with revelers, some buoyed by England’s strong World Cup performance so far. AP

Small capital city draped in grief by newspaper shooting

NNAPOLIS, Md.—The historic state capital of Annapolis is draped in grief from a shooting attack on the local newspaper, which killed journalists who chronicled soccer games, art exhibits and the fabric of small-city life. A sign outside The Annapolis Bookstore, a block from the Maryland State House, starkly expresses the depth of sorrow many are feeling in this quaint waterside capital of about 40,000 near the Chesapeake Bay. “There are no words,” it says. With its weekly sailboat races and picturesque downtown, residents were settling into summer’s languid rhythms when the shooting shattered the usual tranquility. In a quiet town where the in-

coming class of the US Naval Academy just arrived this week, and residents take pride in a rich colonial legacy, the shooting at The Capital that claimed five lives opens a new chapter in its long history. “It feels so personal,” said Mary Adams, who owns The Annapolis Bookstore and knew two of the victims. “It has shifted our community, and maybe it’s made us more attuned to the fact that we are all in this together.” The Rev. M. Dion Thompson, who worked as a journalist at The Baltimore Sun for 15 years, made the sadness a focus of his sermon at Saint Anne’s Episcopal Church in Annapolis on Saturday evening. He also highlighted journalism as a force to comfort the afflicted, as he sought to comfort people

saddened by the killings. “Not that it’s awakened the community, but I think our community now joins so many others in feeling this intense harm that has been done to us,” Thompson said after the service. “The Capital is not a giant newspaper. Annapolis is not a giant town, so people know who we are talking about.” Adams knew Wendi Winters, the paper’s special projects editor. They met years ago at a Harry Potter night at another bookstore in town. She also knew assistant managing editor Rob Hiaasen, also among the dead. The others killed in Thursday’s rampage were editorial page editor Gerald Fischman, reporter John McNamara and sales assistant Rebecca Smith. AP

EXICO CITY—Mexicans vote Sunday in a potentially transformative election that could put in power a firebrand vowing to end politics and business as usual in a country weary of spiraling violence, unchecked corruption and scandal-plagued politicians. But his rivals warn that a victory by leftist Andres Manuel Lopez Obrador could set the country back decades with an interventionist economic policy and are also promising to fight corruption and bring change to Mexico. All the candidates are lambasting President Donald J. Trump’s policies against migrants and Mexico. Sunday’s elections for posts at every level of government are Mexico’s largest ever and have become a referendum on corruption, graft and other tricks used to divert taxpayer money to officials’ pockets and empty those of the country’s poor. This is Lopez Obrador’s third bid for the presidency, and some see it as his best shot after 12 years of nearpermanent campaigning. His railing against the “mafia of power” that has long ruled Mexico and in favor of the poor appears to be falling on receptive ears with polls showing him with a wide lead over three rivals who have failed to ignite voters’ interest. “The corrupt regime is coming to its end,” Lopez Obrador, a 64-yearold commonly known as Amlo, said at his final campaign event Wednesday. “We represent modernity forged from below.” Much of the popular ire has been aimed at unpopular President Enrique Peña Nieto’s Institutional Revolutionary Party. Its candidate, Jose Antonio Meade, failed to gain traction with voters who would not give him the benefit of the doubt in spite of his ample résumé in government and being an outsider to the ruling party. Ricardo Anaya is the candidate of a right-left coalition. He has tried

In this June 27 photo, presidential candidate Andres Manuel Lopez Obrador waves to supporters at his closing campaign rally in Mexico City. Despite his new image, the 64-year-old candidate universally called Amlo appears to trust more in his own sense of mission than in the rules of modern economics and vows to wrest control of the country back from the “mafia of power” that he has railed against for decades. AP

to harness the youth vote with an emphasis on technology and new ideas, but he divided his own conservative party to take its candidacy, and it’s unclear if his new allies in the leftist Democratic Revolution Party will actually turn out for someone from the other end of the ideological spectrum. Sunday is the first time that an independent candidate appears on the ballot. Jaime “El Bronco” Rodriguez fought for attention with a horsemounted “everyman” campaign and by tossing out policy bombs like his proposal to cut off the hands of public officials caught stealing. Without the big party machinery, it was an uphill battle. But “independent candidacies are here to stay in Mexico,” Janine Otalora Malassis, president of the electoral court, said on Friday. It is also the first time Mexicans living abroad can vote for down ballot races like senators. More than 181,000 received ballots and the 97,000 that the National Electoral Institute had gotten back by Friday morning were already double what

they got in 2012. Juan Carlos Enriquez, 30, said he supports Lopez Obrador but warned him that he better not steal. “Of course, I want him to win. But it has to be made clear that he has to deliver what he promises and not become like the rest,” he said. Hovering over the election is the specter of vote fraud, though electoral officials deny it is a possibility with the modern balloting technology and institutions now in place. In both of Lopez Obrador’s previous two presidential losses he alleged fraud. In his first loss—by a mere 0.56 percent to conservative Felipe Calderon in 2006—his supporters held months-long protests in Mexico City and he referred to himself as “the legitimate president.” His allies are warning even before Sunday’s presidential vote that there better not be any funny business. “They shouldn’t dare commit a fraud, because if they do, they will meet the devil,” said Yeidckol Polevnsky, president of Lopez Obrador’s Morena party. “We will not accept it.” AP

Banking&Finance BusinessMirror

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Monday, July 2, 2018

DOF eyes privatizing Overseas Filipino Bank By Rea Cu

@ReaCuBM

he Department of Finance (DOF) is eyeing to partially privatize the Overseas Filipino Bank (OFB) by tapping opportunities seen from its market niche, in line with making the Bank more profitable. Finance Secretary Carlos G. Dominguez III told financial reporters that the DOF wants to enable overseas Filipino workers (OFWs), as well as those residing in the country to be able to buy shares in the Bank in line with the goal of making it more profitable. “Basically, what we want to do is make this Bank, first of all, profitable. It has a niche, so we can exploit that niche profitably and offer investment opportunities

for OFWs as well as local Filipinos to buy shares in that bank,” Dominguez said. He said the government may tap an international company with technological expertise to partner with the OFB. Apart from helping it become more digital in nature, it is also seen to increase the market value of the Land Bank of the Philippines (LandBank). “We are looking at the possibility of getting an international partner to partner

Perspectives

Driving diversity in alternative investments

HE conversation around diversity in alternative investments is changing. When we look back at KPMG’s annual Women in Alternative Investments Report in 2014, it was an uphill battle to persuade firms to discuss the role that diversity plays in organizational success. Responses, and the associated pushback, became all too familiar: firms were meritocracies, we were told, and pursuing diversity or targets for gender balance should not be considered as it took the focus off what was important, and that was investment performance Over time, it has been demonstrated that, contrary to popular belief, the push for greater diversity is not a distraction from business imperatives, but rather directly contributes to higher investment performance and overall profitability. In one recent study conducted across eight countries, researchers found that not only was there a “statistically significant relationship between diversity and innovation outcomes in all countries examined,” but that the more diverse firms “had both 19 percentage points’ higher innovation revenues and 9 percentage points higher EBIT margins, on average.” Other studies, as well as anecdotal evidence, confirm and reinforce these findings. Pursuit of work-force diversity is now a business imperative. Across the industry, it has become more widely recognized that diversity of thought and opinion is critical to making better business decisions. This diversity can only be achieved by attracting, hiring and retaining a broader range of people across gender, race, sexuality, physical ability and other areas. As a result, the conversation is now shifting from why diversity is important to how organizations can attract and retain a more diverse work force.

Addressing challenges and barriers

While the value of work-force diversity has become more widely accepted, progress toward achieving a more equitable gender balance in asset management has nonetheless been slow. KPMG professionals do see greater female participation in the alternative investments space; however, many of these women work in support and other non-investment roles. It is especially positive to see an increase in the number of women in senior leadership roles, though these women are more likely to work as the chief marketing officer or chief financial officer rather than a portfolio manager or chief investment officer. Speaking to women, there are a number of factors that affect organizations’ ability to attract and retain female employees. Some challenges exist in the entry stage of women’s careers, especially the cultural and societal expectations that play a large role in directing women’s choices in education and early job opportunities. For some women, alternative investments was not an area that they heard about as a viable career option, pointing to the need to continue programs to raise university-level awareness of potential roles in asset management. For others, there is a perception—regardless of its accuracy—that asset management is a “boys’ club” where women are not welcome or will face an especially challenging road to success. In the longer term, many women expressed concerns regarding the difficulty of managing a work/life balance with an asset management firm. These latter issues point to the need for a shift in workplace culture in some instances, and measures to better dispel the myths in others.

Creating inclusivity from the top down

Though the recent shift in the conversation around diversity is a strong positive sign for change, we have to recognize that there is no quick fix for an imbalance stemming from decades of structural inequity. Greater inclusion, and the creation of an industry that actively attracts and more important retains a wide variety of people and backgrounds, will require time. For individual organizations, change has to come from the top. Leaders not only set the tone but can also create the specific programs,

goals and measurements that are required to create meaningful change. Successful approaches seen to date include setting measurable targets for diversity hiring and retention, as well as tying diversity to compensation and rewards, creating both a carrot and a stick for forward progress. Having women on the board of directors is another significant step that can have cascading effects not only in the composition of the executive team but also throughout the organization as a whole. When it comes to hiring and promotion, leaders need to push to see a diverse slate of candidates, especially for leadership roles. For example, if an organization is launching a new vehicle or fund, it should ensure that female and other diverse candidates are considered. Ensuring that diverse candidates are considered for internal promotions also helps ensure that an inclusive mix of individuals within the organization are given opportunities to excel. Understandably, organizations that have made the greatest progress to date tend to be those that publicly champion or otherwise make a commitment to gender diversity. Not only are those that are participating in the discussion more likely to make advances, but those that have put a stake in the sand have a standard against which their progress can be publicly measured.

Individual actions for change

Even five years ago, women’s voices were the ones pushing for greater gender diversity and inclusion. Now there are more men talking about the importance of a more balanced gender split, the necessity for an inclusive office culture and the uncomfortable truth that female coworkers may not have access to the same workplace opportunities. One important action that men are taking is helping support female talent in their organizations through sponsorships. Beyond mentorship, a sponsor can actively speak out on behalf of an individual in conversations surrounding promotion and advancement. From the investment side, more investors are actively looking to invest in diverse organizations. Both male and female investors in pension funds, sovereigns and large endowments are starting to ask hard questions about organizational diversity as part of their investment making decisions. In some situations, no longer is it enough for funds to show diversity in their investments; they must also demonstrate diversity in their organizations. If this trend continues, firms’ increasing awareness that investment opportunities are being lost due to lack of organizational diversity will provide an external motivator and competitive pressure for change.

Searching for solutions

As the business case for greater diversity and inclusion in the asset management space has already been made, the conversation can move on to more complex topics. In our upcoming Women in Alternative Investments Report, we turn the attention from why an organization should pursue greater diversity to the thorny question of how firms can best create an inclusive work environment that attracts and retains diverse talent. The alternative investments sector is a fast-paced, challenging and fiercely competitive part of the financial industry—but in the pursuit of greater organizational diversity we are all working together. Through collaboration, mentorships and the sharing of ideas, together we can create a more profitable future where all can benefit. The article “Driving diversity in alternative investments” was taken from the publication entitled Frontiers in Finance: Issue # 59. © 2018 R.G. Manabat & Co., a Philippine partnership and a member-firm of the KPMG network of independent member-firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the Philippines. For more information on KPMG in the Philippines, you may visit www.kpmg.com.ph.

with us here so that we can better serve the requirements of our OFWs. We will probably bring in a partner here, a technological partner, who we hope will also invest in the bank, so those are the opportunities there. The overarching goal, aside from exploring the market niche, is to increase the value of LandBank to make LandBank a more valuable enterprise,” he added. The finance chief pointed out that the LandBank and the DOF are looking at offering investment products like preferred shares with a fixed return and common shares, among others, for the OFB, but nothing is final yet. The Bank is also going to discuss with the Insurance Commission the possibility of offering insurance products online through the OFB, as well. “I think we will offer a variety of investment opportunities, such preferred shares with a fixed return, or common shares, I’m not really sure yet. We want to do this next year. We want to bring it up to profitability...,” he said. Earlier in the month, the DOF sought assistance from the International Finance Corp. (IFC) in line with the setting up of a digital banking system for the OFB to keep it updated with technological advancements

and prepare it for partial privatization. In a meeting with World Bank and IFC officials, Dominguez said he wants the OFB to start with a clean slate and leapfrog to digital banking to make it more effective and responsive in catering to the financial needs of OFWs. The OFB is among the campaign promises of President Duterte to OFWs in 2016 that the DOF had helped fulfill earlier this year. The DOF has expanded the bank’s coverage to include all overseas-based Filipinos to make it more inclusive. A digital banking system for the OFB could later lead to less state interference, with the LandBank, which has made the

OFB a subsidiary, controlling less than 50 percent of it in the future. “We’re looking for assistance in this leapfrogging operation. This will allow us to partially privatize it in the future. Even bring down the share of LandBank to below 50 percent. These are things we’re looking at,” the DOF chief added. Ten million OFWs could be the initial beneficiaries of the technological leapfrog which is envisioned to transform the way Filipinos buy, receive, sell, and distribute goods and services. The OFB was inaugurated at the Postbank Center in Manila by President Duterte on January 17.

We are looking at the possibility of getting an international partner...here so that we can better serve the requirements of our OFWs. We will probably bring in...a technological partner, who we hope will also invest in the bank, so those are the opportunities there.”—Dominguez

FINANCIAL

A6 Monday, July 2, 2018

Investment literacy: Ke I

By Marane Plaza

Financial-planning seminars

N the time of social media and technological advancements, it is easier to be creative in making new ways and unique platforms to earn money. Filipinos are more open to side-hustle incomes, freelance jobs and small businesses. But once we earn this money, are we knowledgeable enough in terms of how to practically make our hardearned money grow even more? Being educated in terms of investment is the key to managing your hardearned money well. That’s how investment literacy comes into the picture. What is investing anyway? Investing is the proactive use of your money to make more money or, so to say, your money working for you. It is different from saving. Saving is a passive activity, even though it uses the same principle of compounding.

Saving is more focused on safety of principal (the amount you start out with) and less concerned with return. Your focus in investing is on return and can run the spectrum, from conservative to very aggressive, in terms of risk. One way you measure results is by the expected return weighed against your anticipated risks. Unfortunately, investing carries a certain amount of risk and with that can come some pain, but also some gain. You must weigh the potential reward against the risk of an investment to decide if the pain is worth

the potential gain. Understanding the relationship between risk and reward is a key piece in building your personal investment philosophy and strategies. After all, it’s a No Pain, No Gain business. So, you have your money and are ready to invest. You've determined how much you will put aside, when you will need your money, you took care of your debt and determined your goals. Now it's time for you to find out what investment is for you and your goals, and how investment literacy is your key to financial freedom.

THERE are many institutions today that offer money-management sessions. The Philam SAVES organizes financial planning for parents and teachers and aims to promote the value of saving and being thrifty to children and their parents. The program is unique in its approach, engaging students, parents and teachers directly at the grassroots level. “Being financially literate is the first step in achieving financial wellness, and this is why SAVES is very important to us. It allows us to address a very basic problem that, if given attention, can make a difference in the lives of so many people,” said Aibee Cantos, chief executive officer of Philam Life and chairman of Philam Foundation. Be open to seminars like this to educate yourself about the importance of saving and investing money.

Learning the science of equity investment

STOCKS are shares of ownership in a corporation. When you become a stockholder or shareholder of a company, you become part-owner of that company. Depending on how many stocks you own of a particular company, you will have little or great financial dependency on the fate of the stock value. There are many technical processes that go with managing stocks, but luckily there are

PHILAM FOUNDATION STRENGTHENS ITS FINANCIAL LITERACY ADVOCACY ON ITS 21ST YEAR

HILAM Foundation, the corporate social responsibility (CSR) arm of Philam Life, continues to advocate financial literacy and savings awareness through its Philam Savings Awareness and Values Education Session (SAVES) program. Philam SAVES is the foundation’s advocacy to educate children, and their parents and teachers on financial literacy. The program was motivated by a 2015 Standard and Poor study, which reports that the Philippines is one of the 30 least financially literate countries in the world, with only 25 percent of adults aware of the basics of managing their money. This gives the foundation the impetus to pursue an initiative that will have an impact on financial literacy, giving birth to Philam SAVES in 2016. Through its two-part module— story-telling and coin bankdesigning session for students, and the financial planning session for parents and teachers—Philam SAVES aims to promote the value of saving and being thrifty to children and their parents. The program is unique in its approach, engaging students, parents, and teachers directly at the grassroots level. “Being financially literate is the first step in achieving financial wellness, and this is why SAVES is very important to us. It allows us to address a very basic problem that, if given attention, can make a difference in the lives of so many people,” said Aibee Cantos, chief executive officer of Philam Life and chairman of Philam Foundation. In five years, Philam SAVES aims to educate 2.5 million students, parents, and teachers, an ambitious number that will be achieved with the

help of the 10,000-strong volunteers of Philam Group employees and financial advisors. Because of its steadfast commitment to be socially responsible, the foundation was recognized for its SAVES program at the recently concluded Asia Responsible Entrepreneurship Awards, a regional recognition program to honor enterprises in the field of CSR. Philam Foundation emerged as an awardee in the Social Empowerment category. “To be recognized for something very close to our hearts inspires us to continue our mission of giving back to the community and strengthens our commitment to contribute to nation-building,” said Max Ventura, president of Philam Foundation. Founded in 1997, the Philam Foundation was borne out of Philam Life’s serious intent to be a good corporate citizen and fulfill its social responsibility to the community. On its 21st year, Philam Foundation continues to contribute in addressing societal needs through its core programs: Philam SAVES; Philam Paaralan, which builds classrooms in areas affected by calamities and areas that are unserved or underserved; and the Alliance for Philippines’ Health and Advocacy (ALPHA), which spearheaded the expansion of the country’s first hospital-based cancer registry program.

Parents/guardians and teachers of students take part in the financialplanning session as part of Philam SAVES Senior.

Philam SAVES officially kicked off at the 20th anniversary of the Philam Foundation. In photo are (from left) Philam Foundation President Max Ventura, PICPSEU Former President JonAzel Tayag, Department of Education Director of International Cooperation Office Marge Ballesteros, Insurance Commissioner Atty. Dennis Funa, Philam Life Chief Executive Officer and Philam Foundation Chairman Aibee Cantos, Starbright Financials Unit Manager Jennifer Magno-Santa Maria, and Philam Life Chief Agency Officer Eric Nicdao.

Philam Life volunteers who conducted the Philam SAVES program.

Philam Foundation volunteer with a student.

Max Ventura, president of Philam Foundation; and Gjay Malapo, program officer of Philam Foundation (second and third from left, respectively), receive the award from Asia Responsible Entrepreneurship Awards presenter Alexandra Tracy, president of Hoi-Ping Ventures Hong Kong (left); and Lt. Gen. Sudhir Sharma, former quarter master general of the Indian Army and advisor to Enterprise Asia.

Students hold their Philam SAVES can after the story-telling session.

A BusinessMirror Special Feature

L LITERACY

ey to financial freedom many companies today that not only educate you about investing in stock market, but also helping you be equipped with doing it. From financial managers, investment plans to mobile apps, you can monitor the money you invested in stocks anytime you want, and you could make your money work for you. An equity fund is designed to generate long-term capital appreciation by investing in highquality equities diversified across sectors. Sun Life Financial offers lifeinsurance plans that already come with equity-bond plans. By availing of this kind of insurance package, not only could you enjoy an insurance for your family, but also the fruits of stock investment for yourself. An equity fund is offered as a fund option in exclusive packages, in investment-linked life-insurance products, like Sun FlexiLink. Once you avail yourself of this, a financial manager would be assigned to look after your stock investments, updating you of what is happening in the Philippine stocks landscape and how it can work for your money. Your financial advisor will even teach you how to monitor your money through SunLife’s exclusive mobile app for equity investments. One you have the package, The results of growing your money are better when you put in a fixed amount of money at regular

intervals. How to do this? You may pay at any SM payment center to pay topup fees.

Financial-planning calculator

WITH the fickle performance of the peso today, it is smart to look at the possibilities of growing your dollars. The Insular Dollar Wealth Builder is a one-time premium investment-linked life-insurance plan that allows you to participate in the performance of the US dollardenominated bonds and stock. With this platform, the Insurance Life lets your money grow more than the usual savings instruments. It gives you the flexibility to add to your investment for bigger funds or even make partial withdrawals. Through Insular Life’s financial-planning calculator on its web site and mobile app, you can also see how your dollar investment is performing and be educated on global finance along the way. Aside from this dollarmaking opportunity, you can still have financial protection for your loved ones through life insurance with Insular Life. Doing your own research and being literate in financial are the best kind of investment you can do for yourself, because it saves you from money losses and investment failures.

Real estate: Basic know-how

REAL estate is familiar to us, since

house and lot are often one of the first things we save up for. It is a sound investment—much better than renting a place where a family can stay. Real estate, however, is an even more attractive form of investment through getting tenants. Not only you are secured with a sole property in the future, but you can also have a passive income in such a way. However, investing in real estate is not simple. Real estate is a more time-consuming process, from finding the right assets to managing them properly to keeping good financial records. Success in real estate depends on a few critical factors; you must have the time and interest to find good properties and then keep these on track. If you're committed to trying your hand at real estate, then you need to make sure you have the right team of people around you to be educated about the basic know-how. Due to even stricter policies today imposed by the government, you must have a trusted licensed broker to assist you from the point you decide to buy your own property for business purposes. Fortunately, one real-estate professional knows another, and it is more than likely that your realestate agent or landlord will be able to recommend other real-estate professionals you should talk to. Be sure to check a professional's

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real-estate credentials. The second critical factor for success in real estate is much more property-specific: Cash flows. Crunch the numbers and think of everything, plus will you be able to raise rent when you buy the property or soon thereafter? And on the expense side, make sure you've calculated your mortgage payments, insurance and utilities, and included a reserve for repairs and maintenance. For carefully evaluating the numbers side of the equation, your appraiser is your best friend. A formal appraisal of a property is almost always required by

your financing source (mortgage broker). Get your hands on this appraisal. It will include details of comparable rental properties in your neighborhood—sales prices, charged rental rates and cost to build from scratch. It may also include a cash-flow analysis, showing monthly revenues and expenses, which will crunch the numbers for you. An appraisal is invaluable, and you should carefully study yours. After you're satisfied with your potential cash flows from the property, your main concern should be avoiding headaches that will eat up your time and sap your energy for the real-estate business.

And that means you simply must avoid tenants who will give you a headache. The first step is to backgroundcheck your applicants carefully. You can also avail yourself of online web seminars on customer satisfaction for real estate to be updated of the ways you can secure your tenant's satisfaction. Armed with these tips for building a real estate network, understanding cash flows and getting good tenants, you're well on your way to starting or improving your returns—in terms of both money and peace of mind—on your ownership of rental real estate.

Green Monday BusinessMirror

A8 Monday, July 2, 2018

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

plants screened ‘Green, Green, Green’ pushes city Indigenous as biopesticides for veggies govts to build better open spaces M

Proposed Bacoor City riverwalk

Proposed park redevelopment in Marikina City

By Bernadette D. Nicolas

@BNicolasBM

he government is confident that it can finish all of its projects under its “Green, Green, Green” public open space development program by 2020.

This year the government has earmarked P2.5 billion to build better open spaces by creating esplanades, parks, arboretum or botanical gardens and building bike lanes, walkways and green infrastructure. In a briefing, Budget Secretary Benjamin E. Diokno said Green, Green, Green is now in full swing and is expected to benefit over 50 million Filipinos. T he pro g r a m , w h ic h w a s launched by the Department of Budget and Management (DBM), is parallel to the massive national infrastructure development program “Build, Build, Build.” Asked by the BusinessMirror why the DBM launched the program, DBM Assistance to Cities Program Manager Julia Nebrija said they are hoping that through the project, they could help improve the everyday life of Filipinos. “I think what the secretary has in mind was something that would help improve the daily lives of Filipinos. Some of the infrastructure projects will take time to finish, so we want something that Filipinos can see an improvement on their daily lives this year and next year,” Nebrija said. “Public open spaces are among those because, one, we should already have them in our cities, and, two, they can be constructed quickly and they are in the urban areas where a lot of people will use everyday.” Nebrija said she also expects the projects to have the groundbreaking of the projects by next year. “Absolutely all of them should be finished by 2020,” she said. Nebrija said the open spaces like the parks, plazas and the waterfronts are some of the places people go “to play, to exercise, to see the beautiful view of the water or of the trees and the natural surroundings.” Currently, 100 cities are processing their project proposals out of the 143 that submitted their expression of interest to avail themselves of the funding. Cities are also investing in a variety of public open spaces which they have identified as important civic spaces for their citizens, which includes 10 new government centers, 20 public squares and plazas, two mangroves, 54 parks, 25 waterfronts, 13 streets. Another 19 cities are still finalizing their proposed site. Nebrija presented the first batch of the projects which include: Plaza Rehabilitation in San Juan City (P4 million); Park Redevelopment in Marikina City (P15 million);

park, plaza and port in Dagupan City (P6.7 million); Valenzuela’s City Polo Park (P21 million); River Esplanades in five cities, particularly Bacoor (P19 million) and Dasmariñas, in Cavite, Bago in Negros Occidental, and Malabon (P12 million) and Parañaque in Metropolitan Manila; Wet Park in Iligan City (P37 million); mangrove parks in Mandaue and Masbate cities (P12 million); Quezon City’s streetscape project “Gora Lane” (P98 million); historic downtown redevelopment in Antipolo City (P34 million); Redevelopment of waterfront boulevard in Zamboanga City (P74 million); Caloocan City’s nature park; and Green, Green, Green and the National Greening Program. In March the DBM conducted technical workshops that engaged city mayors, engineers, architects—including award-winning landscape architect Paulo G. Alcazaren—and planners in a learning session focused on the best practices in public open space designs, and policies and procedures for the implementation of the program. The projects include:

Quezon City’s streetscape ‘Gora Lane’

The majorit y of public open space in any city is the network of streets. According to the National Association of City Transportation Officials Global Street Design Guide, streets are “public spaces for people as well as corridors for movement,” and should be viewed as “dynamic spaces that adopt over to time to support environmental sustainability, public health, economic activity and cultural significance.” Quezon City’s proposal embodies these principles through their project called the “Gora Lane,” taken from the popular Filipino slang that implies movement and most commonly used as an expression that means “Let’s go!” As its name connotes, the project aims to develop a network of pedestrian corridors on secondary local roads usually used as “alternate routes” that will connect the three transportation hubs found

Landscape Architect Paulo G. Alcazaren speaks at the Green, Green, Green Technical Workshop at the DBM MultiPurpose Hall in Manila.

at the southern part of the city. This will provide the people, especially the affected communities, with a space that will let them “go to places” by increasing their mobility and access. This also aims to promote walking and biking by significantly improving the users’ street experience. The design, focused on the improvement of streetscapes, will feature better sidewalks, pocket parks and parklets, improved signage and wayfinding, added shade elements, and a spatial character for each segment of the site. Gora Lane is expected to serve a total residential population of at least 200,000 in addition to at least 313,484 daily commuters traversing the area. The whole stretch of the lane measures 8.39 kilometers.

Caloocan City’s nature park

Highlighting native plant species, Caloocan City’s project focuses on the expansion of Caloocan Nature’s Park in Amparo Subdivision. The city is currently mapping all the tree species on the lush site and plans to feature a primarily native planting scheme to support biodiversity and showcase the unique local landscape. A series of pathways and decks will provide opportunities for visitors to appreciate the natural surroundings. The city will also restore the lagoon which once served as a flood retention pond. While the swimming pool and cottage area are a ticketed, reservation-only facility, this extension will be free to the public.

River esplanades in five cities

Article 51 of Presidential Decree 1067, or the Water Code of the Philippines, states that a minimum 3-meter easement should be allocated for public use along rivers and streams. To maximize this space, the cities of Bacoor and Dasmariñas in Cavite, and Bago in Negros Occidental will be redeveloping their

I think what the [DBM] Secretary [Benjamin E. Diokno] has in mind was something that would help improve the daily lives of Filipinos.”—Nebrija

waterways into parks designed to engage citizens and rejuvenate the area. In Bacoor City, a new 3.6-kilometer riverwalk with bike lane will be constructed along Zapote River through the P19-million funding assistance. The riverwalk will also feature mini plazas at entrance/exit points and pathways connecting to the Battle of Zapote Bridge and the public market. Dasmariñas City is pursuing the second and third phases of its Dasmariñas Riverpark, which w i l l be 1. 3 k i lometers upon completion. The river park near Dasmariñas National High School and De La Salle University Dasmariñas will feature gazebos and various seating areas to welcome visitors to view the natural surroundings, while a jogging track will encourage exercise. Meanwhile, Bago City in Negros Occidental will be developing the Bantayan Riverfront Park into a pedestrian- and bike-friendly space. The existing road will undergo improvement in terms of accessibility and connectivity. A lane especially for pedestrians and another for bikers will be built, separated by a planting strip for added safety. Seating areas will be placed near the edge of the river for a better view of the water. More trees and shrubs will be added for a more pleasant microclimate. Smaller river parks in Malabon and Parañaque will also be built.

Malabon and Parañaque projects

In Malabon City, the LGU plans to convert around 1,400 square meters of easement between two main bridges along Pinagsabugan Creek into a linear park using its P12-million fund. W hile in Parañaque City, a promenade will be built on the reclaimed 480-meter-long easement along the river, linking communities along the river to the bay. The river parks will provide residents with lanes for walking, jogging and biking, as well as areas for social interaction and relaxation.

Green, Green, Green and the NGP

The Loca l Gover nment Sup port Fund-A ssistance to Cities promises green cities so the people could benefit from better air, shade, cooler climates, less flooding and beauty. In line with the National Greening Program (NGP), the fund aims to increase the softscape of a city. However, the NGP and the Biodiversity Strategy and Action Plan encourage cities to “plant native” and “plant local.” This will help ecosystems thrive and prevent the endangerment of species. Commonly used native trees, such as ditas, balayong and mangium, as well as the Palawan cherry tree and rizophora, one of 39 species of Philippine mangrove, will be used.

USUAN, Bukidnon—Indigenous plants can be source of biopesticides for vegetable diseases, a study revealed. Dr. Victor B. Amoroso, Dr. Florfe M. Acma, Prof. Cecilia V. Bautista, Chris Rey M. Lituañas, Rainear A. Mendez, Iris R. Pescadero, all from Central Mindanao University, and Balik Scientist Dr. Annabelle P. Villalobos, conducted the study. The researchers screened 10 species of plants for their phytochemicals in vivo and in vitro against two fungal pathogens Alternaria bra ssicae and Phytophtra infestans. Compounds present in the screened plants—such as phenolics, flavonoids, terpenoids and alkaloids—and their efficacy against the said pathogens were studied. Data derived from the study and those from other initial field studies have identified Tasmania piperita (Hook.f.) as a promising plant species for biopesticide prototype product development. Extracts of the plant proved to be consistent when its various constituents were separated through chromatography. From the extracts, the researchers developed two product prototypes labeled as Product A and Product B. The prototypes were studied for their antifungal activity. The researchers subjected the prototypes to a fly test and determined their resistance to change in terms of chemical and physical structure (thermostability) and to the influence of radiant energy (photostability). Based on the tests, the products proved

to be effective against Alternaria brassicae and Phytophtra infestans when used in lower dilution at 1:15/1:25. Better results were shown, though, for both products in higher dilution at 1:10,000 when the products were tested for their ingredients and quality. Moreover, the biopesticides developed from indigenous plants, is environmentfriendly, safe for humans and for nontarget organisms, cheap and locally available. St u d i e s a l s o s h owe d t h at w h i l e both products have a shelf life of 12 months, product A proved to be more resistant in terms of thermostability and photostability. The project on Screening of Indigenous Plants as Biopesticides and the Development of Product for Vegetable Diseases was funded by the Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development of the Department of Science and Technology (DOST-PCAARRD). It placed first for the research category of the National Symposium on Agriculture, Aquatic and Natural Resources Research and Development (NSAARRD). Organized by DOST-PCAARRD, the NSAARRD recognizes the outstanding contributions of individuals and institutions in improving the state of research and development in the country for the interest of the agriculture, aquatic and natural resources sector. Held yearly, the NSAARRD is one of the highlights of the PCAARRD anniversary celebration. S&T Media Services

Establishing local conservation areas By Jonathan L. Mayuga

@jonlmayuga Conclusion

Unprotected KBAs

While many protected areas and national parks have already covered the majority of the key biodiversity areas (KBAs) in the country, there are still certain areas that are left unprotected from various threats, and qualify as a conservation areas by local government units (LGUs), said Asean Centre for Biodiversity Executive Director Theresa Mundita S. Lim. A former director of the Department of Environment and Natural Resources’s (DENR) Biodiversity Management Bureau (BMB), Lim said the establishment of local conser vation areas (LCA) aims to go beyond national-managed protected areas and national parks under Nipas. “They are part of what we call ‘other effective conservation measure’ that is area-based,” Lim told the B usiness M irror in a telephone interview on June 18. She echoed Environment Undersecretary Jonas R. Leones’s claim that the DENR alone cannot cover the protection and conservation of all KBAs or important biodiversity areas in the Philippines. Besides, Lim said some areas are already covered by local governments. “We respect their authority under the Local Government Code to set aside portions within their political jurisdiction, as a sanctuary, city park, wildlife park, or marine protected area. This management scheme is different from Nipas [National Integrated Protected Areas System Act],” Lim said.

LGUs: Main beneficiaries

According to Lim, LCA focuses more on the protection of biodiversity for the benefit of the local government. She said the word LCA is a standard terminology used to describe small conservation areas that can be covered or managed by the LGUs even without the help of the national government. This can be a locally declared critical habitat. “If this [critical habitat] is declared by the local government through municipal ordinance, it can also be considered as an LCA,” she said. Also, she said there are numerous marine sanctuaries that were established by LGUs. “These can be considered or classified as local conservation areas. Actually, they enhance and complement the national effort for biodiversity conservation and sustainable management,” she said.

Local funding

According to Lim, it helps that LGUs

allocate a specific budget for the protection and conservation of important biodiversity areas or KBAs within their jurisdiction. In fact, she said the establishment of LCAs is happening globally. “We are going beyond nationally managed protected areas and national parks. The world is seeing this not just as a conservation measure not necessarily by declaring an area a national park, but also by the indigenous community or local effort,” Lim said. “There are important areas that are not so big but need protection, such as critical habitats, certain lakes which are important ecosystems, or watering areas of migratory species. It is important to have initiatives from the local government to protect these areas on their own,” she added.

Local investment

What is essential, she said, is that the LGUs are willing and able to invest in the protection and conservation of KBAs in recognition of the potential return on their investment. “LGUs will not invest unless they recognize the value of the area they are going to invest in. It could be a potential ecotourism area, or part of their local heritage. It could also be for the protection of their water resources, food, medicine, or the supply of raw materials that will benefit the local government and the local community,” she said. The DENR-BMB realized the need for LCA as a management measure to be a part of the National Biodiversity Strategy and Action Plan. LCAs, Lim said, can also be a joint declaration or collaboration of two or more LGUs, barangays, municipalities or provinces, depending on the extent of the area to be declared as an LCA. “ There are areas that the loc al government themselves admit they cannot protect on their own. An entire bay, for example. It can be a marine sanctuary in that area that cannot be protected by a single LGU on its own,” she said. Scaling up the effort is needed, for instance, if their neighboring area will be affected by their proposed conservation measure. LGUs working together, she added, can initiate to protect a larger seascape or landscape or they can establish a network of the marine protected area, instead of just one municipal marine or fish sanctuary. “In the same manner, at the regional level, for instance, the Philippines cannot address alone the protection of certain areas, so it levels up to the regional level, seeking partnership with other countries to involve [them] in the process,” she said.

Biodiversity Monday BusinessMirror

Asean Champions of Biodiversity Media Category 2014

Monday, July 2, 2018

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

‘Science needed to save world’s coral reefs’

By Jonathan L. Mayuga @jonlmayuga

nvironment Secretary Roy A. Cimatu and environmental advocates have found a common ground in calling for science-based solutions to the problem besetting the world’s coral reefs.

Cimatu has earlier called on international governments to invest more in scientific research for the conservation and protection of coral reefs. He sa id sc ience is c r uc i a l in shaping plans, policies and programs. The Department of Environment and Natura l Resources (DENR) chief said support to scientists and investment is imperative to generate more relevant researches that will determine the extent of the damage, as well as identify solutions to the problems. Cimatu issued the call during his speech at the Fourth AsiaPacific Coral Reef Symposium (APCRS) held in Cebu City early last month. T he event, wh ic h brought together around 600 scientists from 34 countries, who champion coral-reef research and conservation in the Asia-Pacific region, was coorganized by the DENR.

Global responsibility

S o u g ht f o r r e a c t i o n , A A Yaptinchay, founder of the Marine Wildlife Watch of the Philippines, said Filipinos are the bearer of a great global responsibility of ensuring that the coral communities and coral reefs that surround the country’s islands are protected. The vastness of its coral region makes the Philippines uniquely the center of marine biodiversity in the world. “They [reefs] have been subject of abuse for the longest time, especially by developments along the coast, unsustainable fishing,

pollution and even tourism. It is about time, if not yet too late, that we address these issues to improve their [coral reefs] degraded conditions. The Philippines was currently assessed to no longer have excellent coral reefs,” Yaptinchay told the BusinessMirror through e-mail. He said problems and solutions are known through scientific research. The scientific community is well aware of the problems and solutions that will save the reefs, particularly corals, from extinction through appropriate and well-funded programs.

Eliminating threats

“We actually already know the problems, and we just need to reduce or eliminate the threats impacting our reefs. Research will allow us to create appropriate programs that will address specific problems locally and nationally. These programs will be multidisciplinar y, covering not only biological and ecological aspects but also socioeconomic aspects, as well,” he added. Yaptinchay, a veterinarian, has been involved in marinebiodiversity conservation in the Philippines for over 20 years now. He has worked with the DENRBiodiversity Management Bureau, then called Protected Areas Management Bureau.

Increasing budget

For his part, Vince Cinches, the oceans and political campaigner of Greenpeace Southeast Asia, said:

Communication is key in combatting illegal wildlife trade–DENR exec

n official of the Department of Environment and Natural Resources (DENR) underscored the need for private-sector support to raise the level of public awareness about the importance of biodiversity and the threat posed by activities that lead to biodiversity loss, including illegal wildlife trade and trafficking. Josefina de Leon, the head of the Wildlife Resources Division of the DENR-Biodiversity Management Bureau (BMB), said on Sunday that, under the Wildlife Law Enforcement Action Plan 2018-2028, communication, education and public awareness is one of the key strategies that will boost wildlife law enforcement. De Leon told the B usiness M irror that many Filipinos living in abject poverty see the illegal wildlife trade as their way out. “Many still hunt endangered animals to sell them as pets or for food, for their personal consumption,” de Leon said. Whether for food or illegal wildlife trade, hunting animals is a violation of the Wildlife Act. But law enforcers, she said, will need all the support they can get from the public to prevent the illicit activities. Various stakeholders have expressed support last week behind the approval and implementation of the Wildlife Law Enforcement Action Plan (WildLEAP) 2018-2028 developed by various stakeholders led by the DENR. The support for the 10-year action plan came in the wake of the global call to stop the illegal wildlife trade, which has been identified as one of the major drivers of biodiversity loss. Among the objectives of WildLEAP is to combat illegal activities involving wildlife, identify and prioritize enforcement activities, and serve as a guide for fund sourcing, resource, allocation and evaluation of the impacts of enforcement work. The action plan was a result of a series of

activities, including data gathering and review, the conduct of multistakeholders consultation and workshops held on November 24, 2016, in Davao City and small group meetings by the DENR-BMB, Word Wide Fund-Philippines, Tanggol Kalikasan-US Agency for International Development Wildlife Project and interagency consultation and workshops on June 30, 2017. WildLEAP envisions to have a proactive, competent, effective and efficient wildlife law-enforcement network and empower stakeholders that protect and conserve wildlife resources for sustainable development. It has identified seven strategic priorities—including policy and system development, networking and coordination, capacity building, communication, education and public awareness, improving governance and curbing corruption, mobilization of resources, and reporting, monitoring and evaluation. The Philippines, one of the 18 megadiverse countries in the world, is also a biodiversity hot spot because of the rapid rate of biodiversity loss owing to habitat loss and the illegal wildlife trade. Backing the approval and implementation of the proposed action plan on wildlife law enforcement are national law-enforcement agencies, international and national development institutions and environmental advocacy groups. They are the National Intelligence Coordinating Agency, National Bureau of Investigation-Environmental Crime Division, Phhilippine National Police-Maritime Group, Zoological Society of London-Philippines, Haribon Foundation, United Nations Development Program-Global Environmental Finance Small Gants Program, Sulu-Suluwasi Seascape Project, GIZ-Philippines, Conservation InternationalPhilippines, US Embassy-Manila and Conservation International. Jonathan L. Mayuga

Coral reef Gregg Yan

“We agree with the Secretary [Cimatu] on the need to increase the overall budget not just to do the right research but to increase the needed money in developing marine sciences that are truly designed and shaped by the importance of the Philippines as the global epicenter of marine biodiversity.” He said the objective of promoting our understanding and sustainable utilization of the country’s marine ecosystem for the benefit of our country and mankind should be given premium. Cinches called on Cimatu to champion the cause to ensure that conservation is used in designing and in prioritization of developments at the Cabinet level by ensuring that stressors to marine and coastal ecosystems be addressed or eradicated, such as siltation from mining, reclamation projects, construction of coal-fired power

plants in coastal areas, pollution and overfishing. “We hope that our learning at the [APCRS] from the sciences that were presented from various institutions across the Pacific and the world will enable us to comprehensively utilize reef and marine science in national development, people empowerment, securing food supply, tourism and in relations with other countries. We hope that the government will have to couple their public statements with that of real, doable and urgent actions on the ground,” he said.

What support?

However, not all environmental groups are enthusiastic about Cimatu’s call. Leon Dulce, national coordinator of the Kalikasan-People’s Network for the Environment, said

They [reefs] have been subject of abuse for the longest time, especially by developments along the coast, unsustainable fishing, pollution and even tourism.... The Philippines was currently assessed to no longer have excellent coral reefs.”—Yaptinchay

Cimatu’s call is “empty” because the Duterte administration is not taking real efforts in the protection and study of the country’s important corals reef systems, such as in the West Philippine Sea and Philippine Rise. “The dredging of reefs and poaching of endangered species in the West Philippine Sea are still continuing. Yet they cannot even stop the Chinese’s environmental violations and demand reparations for the destruction of our marine ecosystems. The scientific and diplomatic proposal to set up a Marine Peace Park in West Philippine Sea simply fell on deaf ears under Duterte. A puppet regime through and through,” Dulce lamented. Dulce said the country’s present and past administrations h ave neg lec ted i n prov id i ng support for the environmentalprotection research. He cited data from the Department of Science and Technolog y, which show that the Philippine government currently spends only 0.11 percent of the country’s GDP on scientific research and development, a far cry from the global standard for developing countries to allocate 1 percent GDP allocation.

Poor budget allocation

“Unsurprisingly, we are laggards in asserting our claims in the Philippine Rise, as proving our claim would entail geological surveys. The Chinese beat us in naming features in that area. Only P537.78 million of the P4.73 billion, or just 11 percent, of total public R&D [research and development] expenditures was allocated for researches focused on the ‘control and care of the environment’ in 2013,” he said. According to Dulce, private industry spending for environmentrelated R&D was even smaller at only 1 percent of total private spending. “This is all empty talk. It’s been long overdue for this [administration] to shift more funding for environmental research

and protection instead of using people’s funds to finance environmentally destructive projects under the ‘Build, Build, Build’ scheme,” he said.

Regional cooperation

During the Cebu event, Cimatu also underscored the need to create a regional platform not just for sharing of ideas, but a “community bound with a common vision and passion for the environment and for the ocean.” “Let us work hand in hand in order to translate all of these research outputs, studies, knowledge and experiences into implementable policies and programs,” Cimatu said. He cited that each partnerstakeholder—governments, academe, local community, civil society, private groups and the international community—plays a crucial role in the protection and conservation of coral reefs. “Let us strive for excellence in accomplishing our tasks together,” he said. Coral reefs are important for many different reasons, besides supposedly containing the most diverse ecosystems on the planet. They protect coastlines from the damaging effects of big waves and tropical storms, and provide habitats and shelter for many marine organisms, among others. However, coral reefs have suffered because of global warming, polluted waters and more direct human harm, such as through unethical overfishing. T h i s y e a r ’s A C P R S , w i t h the theme, “Coral Reefs of the Asia-Pacific: Working Together A m id st Contempora r y C h a llenges,” coincided with the observance of the International Year of the Reef (IYOR). IYOR is a yearlong campaign of events and initiatives hosted by governments and nongovernment organizations around the world to promote and strengthen longterm collaborations for coral reef conservation.The year 2018 marks the third IYOR and is hosted by the Philippines.

Asean joins movement to beat plastic pollution

sean Centre for Biodiversity (ACB) Executive Director Dr. Theresa Mundita S. Lim lauded the Asean member-states (AMS) in their continued efforts in reducing plastic waste in the region. “The home of ACB, Los Baños, Laguna, is the first ever municipality in the Philippines that regulated the use of plastic bags through Municipal Ordinance 2008-752. Now, the town also prohibits the use of plastic straws, plastic cups and plates through Municipal Ordinance 2014-1316, titled ‘The Expanded Plastic Ordinance of the Municipality of Los Baños,’” Lim said in the ACB news release. “These conservation efforts are being replicated by other towns and cities in the country.” “The Centre joins the movement against the use of plastics, supports the [Asean] member-states’ initiatives in banning plastic use and in strictly implementing wastemanagement laws and policies,” she added.

Reducing plastic wastes in the Asean region

Brunei Darussalam aims to stop the use of plastic bags in supermarkets by 2019, and shoppers are encouraged to use reusable eco-friendly bags for grocery shopping. Major supermarkets that joined the Beat Plastic Pollution initiative are considering it to be part of their corporate social responsibility (CSR). In Cambodia major supermarkets charge KHR400 ($0.10) per plastic bag to reduce its wasteful use. Lao PDR also encourages the public to use recyclable bags, which are being sold in downtown cafés and markets. Malaysia, Myanmar and Indonesia also implement bans and taxes on the use of plastic bags. In Singapore, one of the world’s giant players in the fast food-chain industry, with 84 restaurants in the country, announced the banning of plastics—lids and

Mark Demayo

straws—for dine-in customers on June 20. A line of mini-marts and convenience stores in Thailand—with 11,000 stores— implements the “Say No to Plastic Bag” campaign to uphold policies in line with the international environmental standards. The Thai government’s national agenda aims to promote the importance of reducing the number of plastic bags to lessen the harmful effects to the environment. Large businesses and enterprises in Vietnam also introduced eco-friendly bags for shoppers, and the government imposes environment tax on plastic bags, which is VND40,000 ($1.76) per kilogram, ACB said. On June 12 the Philippine government, through the Department of Environment and Natural Resources, urged the general public to avoid using disposable plastic products that clog waterways, cause ocean pollution and poison marine species.

“Plastics, particularly those for singleuse packaging, have greatly contributed to the degradation of the environment. Plastic pollution continues to poison our oceans and injure marine life. When not properly disposed, they clog waterways and cause flooding,” said Environment Secretary Roy A. Cimatu. Public markets and large supermarkets in some cities and municipalities practice the “Bring Your Own Bag”—a campaign aimed to encourage consumers to bring a reusable bags when shopping. “If you can’t reuse it, refuse it.” This is the global call to stop using singleuse plastic materials as the Asean celebrates this year’s World Environment Day with the theme, “Beat Plastic Pollution.” While plastic provides a significant number of uses in people’s daily lives, it poses greater threats to biodiversity and environment. The bags, which are usually used in just a few

minutes or hours, take centuries to decompose. Before being decomposed, the plastic wastes pile up in the lands and easily wash up into streams and rivers until they reach the oceans; polluting waters, destroying aquatic habitats and, eventually, killing marine species. The problems caused by the proliferation of plastic wastes include: clogging of waterways; causing serious flooding and landslides; health problems due to the ingestion of harmful chemicals like benzene and styrene; loss of marine biodiversity caused by water pollution; air pollution by burning plastic wastes; and economic damage to marine ecosystems, to name a few, the news release said. The ACB was established in 2005 by the Asean member-states as a response to biodiversity loss in the region. It supports and coordinates the implementation of activities in the Asean leading to the conservation and sustainable use of biological diversity, for the benefit of the region and the AMS.

A10 Monday, July 2, 2018 • Editor: Angel R. Calso

Opinion BusinessMirror

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editorial

‘The Philippines is worse than…’

‘D

o not compare yourself to others. If you do so, you are insulting yourself ”. Ignore for a moment that one of history’s most reviled people—Adolf Hitler—said that because it does makes sense. We tell our children not to be envious of other people because what we see in others does not tell the whole story.

On almost any category we can always find someone else who is “better” than we are and someone who is “worse” than we are. Comparisons are never valid enough to be taken too seriously, as the world rarely offers a fair and level playing field. Yet, comparing the Philippines to some other country about one thing or another has almost become intellectual sport. There is a rumor it might be included in the 2019 Southeast Asian Games, which will be held—unless plans change again—in the Philippines. There are valid reasons for making comparisons, such as who can run the fastest or who knows the multiplication tables to the highest number. We can also use comparisons to learn from our own and others’ mistakes to improve. But again, the comparisons are only applicable if the conditions are the same or closely similar. The speed of a runner for the 100-meter dash on level ground cannot be compared to running 100 meters up a hill. Far too often the Philippines is compared to other countries to show how dumb, ineffective or just a total failure this county is. “Why can’t the Philippines grow rice like Vietnam and Thailand?” Maybe if the Philippines had thousands of kilometers of raging rivers, we could. “Why are transportation costs so high in the Philippines?” Maybe if we could drive a truck nonstop from one end of the country to the other as in almost every other Asean country, domestic shipping costs would be lower. Those who compare the Philippines to some other place are always careful to pick and choose—almost always—the Philippines as the loser. If we want to talk about drugs, then we must compare the Philippines to Colombia, which, of course, has been more successful than the Philippines, at least according to the “experts.” The same is true with the peace process that Colombia’s government had with its Revolutionary Armed Forces of Colombia— People’s Army (FARC). Unfortunately, since the end of Colombia’s “War on Drugs” in 2016, which we are told the Philippines should copy, the United Nations reports that cocaine production is at the highest level in history. Part of the peace deal with FARC was that they would no longer protect the drug business but help the government fight cocaine production. From the Colombia Reports news web site on June 16: “Colombia’s new president-elect on Monday will receive a detailed report on how Colombia’s drug trade is worse than ever before.” Maybe Colombia is not a good comparison to the Philippines. It appears that we are being compared to countries that are facing completely different conditions, and many of those that are “better” are not really better. We should listen more to retired American Olympic decathlete champion Ashton James Eaton: “We are competing against ourselves.” Since 2005

BusinessMirror A broader look at today’s business ✝ Ambassador Antonio L. Cabangon Chua

Are you ready for telecommuting? Atty. Jose Ferdinand M. Rojas II

RISING SUN

n this part of the world, the simple act of commuting to work and going back home has become a daily struggle. The transportation system leaves much to be desired, and the traffic does not just grind to a halt during rush hours but throughout the day, even way after midnight. This is brought about by globalization, industries serving the needs of the consumers no matter where in the world they may be. One would leave the house freshly showered, wearing nicely pressed shirts and makeup for the ladies. Unfortunately, the morning glow is always short-lived in this country, so the poor employees would reach the office sweaty, disheveled and tired from all the pollution and the intense heat (or the rain and flooding, as the case may be). The country is losing a great amount of money because of the traffic gridlock. This translates to lost time, reduced productivity, stress and ill health for workers. Government services and the operations of private companies are all affected. It’s a huge problem and all sectors must bring their heads together now to

find a solution to our ever-worsening traffic condition. A couple of months ago, the Lower House approved on second reading a bill that would allow employees to work outside the office. House Bill (HB) 7402, or the law on telecommuting (work from home), was authored by Camarines Sur Rep. LRay Villafuerte. He believes that telecommuting is possible because of technology. Further, it fits the situation in Manila, as it would help employees perform their work duties while avoiding traffic and unpleasant weather conditions. They will be able to save huge sums of money if they do not need to pay for gas or fares every day.

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Lourdes M. Fernandez

he unexpected suicide of famous designer Kate Spade and food icon Anthony Bourdain in early-June and the highly publicized suicide of well-loved actor Robin Williams shocked and saddened fans around the globe. These events underscored the tragic reality that mental-health problems, in particular suicide, do not discriminate on the basis of demographics. Men and women, young and old, the wealthy and poor, the successful and failures, professionals and students are vulnerable to mental-health problems. In the United States, federal data show that suicide rates have increased across nearly every demographic over the past two decades, rising by 28 percent, from 1999 to 2016. Almost 45,000 Americans committed suicide in 2016, making it the 10th-most common cause of death. From 2010 to 2016 a 70-percent increase in suicide rate was noted among girls, narrowing the gender gap between the number of boys and girls who commit suicide (“A Disturbing Trend on the Rise” by Jaime Ducharme, TIME Magazine, June 18, 2018).

In the Philippines, “every day, seven Filipinos turn to suicide. One in 5 Filipino adults also suffers from a form of mental disorder,” and the Philippines “has the highest number of depressed people in Southeast Asia,” said Sen. Riza Hontiveros, a mental-health advocate. President Rodrigo Duterte signed into law on June 20, 2018, Republic Act (RA) 11036, otherwise known as the Mental Health Act, barely two weeks after the Spade and Bourdain incidents, making good his promise of integrating mental health in the country’s public health-care system.

If the president will sign this bill into law, it will certainly be a big help not only for the workers but also for the private and public organizations, as their expenses will be significantly reduced. They will be able to save on utilities and overhead costs like office supplies, electricity, rent and other expenditures. Quezon City Rep. Alfred Vargas earlier filed HB 5841, or an “Act Institutionalizing a Telecommuting Employment Program,” or workfrom-home arrangement. This was combined with other proposed bills to give form to the latest version, HB 7402. If the president will sign this bill into law, it will certainly be a big help not only for the workers but also for the private and public organizations, as their expenses will be significantly reduced. They will be able to save on utilities and overhead costs like office supplies, electricity, rent and other expenditures. Sen. Joel Villanueva, author of Senate Bill No. 1363 or the Senate’s counterpart version, hailed the House approval of the telecommuting bill. “We expect that this measure

It is hoped that the Mental Health Act will not be among the good laws that will suffer from lack of government funding. The way our legislators and government leaders are behaving, it would seem that they could be the primary beneficiaries of the Mental Health Act. R A 11036 defines “Mental Health” as a state of well-being in which the individual realizes one’s own abilities and potentials, copes adequately with the normal stresses of life, displays resilience in the face of extreme life events, works productively and fruitfully and is able to make a positive contribution to the community (Section 4 (j)). “Mental Health Condition” refers to a neurologic or psychiatric condition characterized by the existence of a recognizable, clinically significant disturbance in an individual’s cognition, emotional regulation or behavior that reflects a genetic or acquired dysfunction in the neurobiological, psychosocial or developmental processes underlying mental functioning. The determination of neurologic and psychiatric conditions shall

would protect the rights of the homebased workers by ensuring that they have equal pay, leave benefits and promotion as their counterparts in the office,” he said. Vilanueva said he is hopeful that, during the bicameral conference committee hearing, our lawmakers would be able to reconcile the differences in the House and Senate versions and eventually produce a cohesive and strong policy that will eventually promote Filipino workers’ right to work-life balance and flexible work arrangement. According to Rep. Vargas, the increases in the price of oil and the worsening traffic problem in the metropolis are enough reasons for the bill to be approved. He said telecommuting would boost the morale of employees, reduce their stress and increase productivity and the quality of their services in the long run. Everyone waits with anticipation for this measure to be signed into law, as it will greatly impact most of the country’s major industries and the nation’s economy in general. There are many companies all over the world that have embraced this new way of working, and many workers are hoping that the Philippines will be the next one to adopt telecommuting for the benefit of millions of Filipino employees.

be based on scientifically accepted medical nomenclature and best available scientific and medical evidence (Section 4(k). “Mental Health Services” refer to psychological, psychiatric or neurologic activities and programs along the whole range of the mental-health support services, including promotion, prevention, treatment and aftercare, which are provided by mental-health facilities and mental-health professionals (Section 4(o)). “Service User” is defined as a person who experienced a mental-health condition, including persons who require or are undergoing psychiatric, neurologic or psychosocial care. Section 5 enumerates the rights of “Service Users” as follows: (a) Freedom from social, economic, and political discrimination and stigmatization, whether committed by public or private actors; (b) Exercise all their inherent civil, political, economic, social, religious, educational and cultural rights respecting individual qualities, abilities and diversity of background, without discrimination on the basis of physical disability, age, gender, sexual orientation, race, color, language, religion or nationality, ethnic, or social origin; See “Kapunan,” A11

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Opinion

Just the beginning

Olympism in PPPs

BusinessMirror

By Alberto Agra

Filbert Tsai

PPP Lead

DEBIT CREDIT

n July 10, 2018, the event that many have been preparing for will come. Countless sleepless nights, thousands of hours spent reading and crunching numbers on the calculator and a few teardrops of frustration for unsolvable problems will then be rewarded as the passers of the May 2018 Certified Public Accountants will be taking their oath as professionals. We’ve all been there. I’ve gone through that, and here you are— marching your way and taking your oath as a freshly minted CPA. Take pride, because you made it. You have just completed what is referred to as the Initial Professional Development (IPD) by the International Education Standards 7 (IES 7). I can still remember writing a similar article last year for the November 2017 batch in the BusinessMirror. Our profession had just entered its 95th year and, this year, we’ll be welcoming our diamond anniversary CPAs into our fold. Just like diamond, the profession had been very selective, with a passing rate of roughly 30 percent for this batch, with only the best and the brightest sifted through the sieve. Indeed, you have studied and prepared well for the next phase of your professional life. Becoming a CPA is just the first step in your professional life. Competition will get tighter once you start working. It is a matter of upholding the #HighestStandard and commitment to #ExpandingHorizons in order to stand out among professionals that you’ll meet in the workplace. In fact, these two hashtags are the key themes that the Board of Accountancy (BOA) has been pursuing over the past three years as part of its sixpoint strategic agenda. Continuing professional development (CPD) naturally follows IPD and is a requirement of IES 7 for professional accountants to maintain and enhance their competence and relevance in the profession. With the ever-changing business landscape and professional standards, professionals need to continually be upskilled to be able to deliver work necessary for the modern day. The BOA will soon introduce five new topics into the licensure examination (effective in the May 2019 licensure examination) to respond to the needs of the profession, namely: n Globalization; n Digital disruption; n Global regulatory trends on governance and ethics; n Effective business communication; and n Regulatory requirements and considerations;

Kapunan. . .

continued from A10

(c) Access to evidence-based treatment of the same standard and quality, regardless of age, sex, socioeconomic status, race, ethnicity or sexual orientation; (d) Access to affordable essential health and social services for the purpose of achieving the highest attainable standard of mental health; (e) Access to mental-health services at all levels of the national health-care system; (f) Access to comprehensive and coordinated treatment integrating holistic prevention, promotion, rehabilitation, care and support, aimed at addressing mental healthcare needs through a multidisciplinary, user-driven treatment and recovery plan; (g) Access to psychosocial care and clinical treatment in the least restrictive environment and manner; (h) Humane treatment free from solitary confinement, torture and other forms of cruel, inhumane, harmful or degrading treatment and invasive procedures not backed by scientific evidence; (i) Access to aftercare and rehabilitation when possible in the community for the purpose of social reintegration and inclusion;

As can be seen, there is a shift in the focus of the examination from purely technical accounting topics to general business knowledge. As BOA Chairman Joel Tan-Torres mentioned in his regulatory updates course presented at www.continu.ee, we need to continually watch out for these disruptions before we get disrupted ourselves. Continuously developing the professional competence of an individual is a shared responsibility between the individual, the individual’s employer and the regulator. Lucky are those who get to work in large global firms that do provide quality learning to ensure all firm members are abreast of global trends—but for others, it’s more of a personal responsibility to put forward your own learning objective. Good thing is, online learning is becoming mainstream, which allows students to select the topics they’re interested in and take the course on-demand. There’s a lot of great online learning platforms out in the market, such as EdX, Coursera and Lynda for international certifications, and of course, if you want to #continuee2learn here in the Philippines, www.continu.ee powered by OpenEdX is a great platform to use for local courses that entitle you to CPD credits using a trusted EdX platform. To our soon to be CPAs, congratulations. Welcome to the professional world. Your adventure has just begun.

Continued from A1

ou might be wondering what the Olympic games and Olympism have got to do with public-private partnerships (PPPs) or those arrangements entered into between the public and private sectors. Forming better humans. Ian Adamson, the president of Fédération Internationale de Sport d’Obstacles (the international federation on obstacle sports), recalled the true essence of the Olympics — forming better humans. This is true for PPPs, as well. PPPs are for the people where government and the private sector collaborate for better

quality of life of the communities. Olympism and PPPs share the same “true north.” Move. Learn. Discover. The theme of Olympic Day celebrations all over the world underscores the value that “Olympic Day is much more than just a sports event, it is a day for the world to get active, learn about Olympic values and discover

Invictus revisited Siegfred Bueno Mison, Esq.

THE PATRIOT

oman philosopher Seneca once said, “A wise man is content with his lot, whatever it may be, without wishing for what he has not”.

Filbert Tsai is the chief strategy officer of continu.ee, a membership-based e-learning platform for professionals that provides quality continuing professional education courses. He is also the chief strategist at UpSmart Strategy Consulting Inc. This column accepts contributions from accountants, especially articles that are of interest to the accountancy profession, in particular, and to the business community, in general. These can be e-mailed to boa.secretariat.@gmail.com.

Thought is a powerful tool that dictates how we can live our lives by either happily appreciating what we have or feeling stressed out wanting what we don’t have. No one else controls our thoughts except ourselves. Clearly, the way we think reflects the way we feel, and the way we feel leads to the way we conduct ourselves. When I first read the poem Invictus, the last few lines left me with the indelible imprint about selfcontrol. Written by William Ernest Henley, the poem emphatically tells the reader that he alone controls his fate. Further, the poem tells us that, regardless of our spirituality, trials and darkest moments in life can be conquered by never losing faith in the strength of one’s soul. Hence, the poem is appropriately titled “Invictus,” which means unconquerable in Latin. Ruel has been behind the wheel for me for the past eight years. In recent years, he and his family

(j). Access to adequate information regarding available multidisciplinary mental-health services; (k) Participate in mental-health advocacy, policy planning, legislation service provision, monitoring, research and evaluation; (l) Confidentiality of all information, communications and records, in whatever form or medium stored, regarding the service user, any aspect of the service user’s mental health, or any treatment or care received by the service user, which information, communications, and records shall not be disclosed to third parties without the written consent of the service user concerned or the service user’s legal representative, except under certain circumstances. Under the Act, “the State commits itself to promoting the wellbeing of people by ensuring that mental health is valued, promoted and protected; mental-health conditions are treated and prevented; timely, affordable, high-quality and culturally appropriate mental-health care is made available to the public” (Section 2). People suffering from additional and other substance-induced mentalhealth condition will be provided care and treatment and hospitals are required to coordinate with drug-rehabilitation centers (Section 18). Also, 24/7 hot lines to give

assistance to individuals with mental-health conditions, especially individuals at risk of committing suicide, shall be set up, and existing hot lines shall be strengthened (Section 21). The Philippine Council for Mental Health (“Council”) is established under Section 45 as a policy-making, planning, coordinating body attached to the Department of Health to oversee the implementation of the law. The amount needed for the initial implementation of this Act shall be charged against the 2018 appropriations of the DOH. For succeeding years, the amount shall be based on the strategic plan formulated by the Council (Section 45). The DOH is required to coordinate with the Philippine Health Insurance Corp. to ensure that insurance packages are available to patients affected by mental-health conditions (Section 30(f)) PhilHealth currently covers hospitalization due to acute attacks of mentalhealth and behavioral disorder with a P7,800 package only. It is hoped that the Mental Health Act will not be among the good laws that will suffer from lack of government funding. The way our legislators and government leaders are behaving, it would seem that they could be the primary beneficiaries of the Mental Health Act. Need I say more?

have been contending with various health issues. For instance, a few months ago, Ruel experienced a hypertensive attack while driving, which caused him to be rushed to the emergency room. He still suffers from occasional dizziness and now takes regular medication. His son gets admitted to the intensive care unit from time to time due to some seizures caused by cerebral palsy. His wife, who refuses to undergo chemotherapy, is a breast cancer survivor. Courageously, Ruel embraces such reality of health issues with accompanying medical bills and uses humor to supply energy to his weakening soul. Though at times I sense his sadness, Ruel remains unconquerable as he finds ways to earn extra income by planting pineapple, ginger and chili pepper, and by raising hogs and other farm animals. Everyone who knows Ruel would attest to his attitude as one happy camper, especially when he’s in the farm!

Monday, July 2, 2018 A11

new sports.” All are encouraged to be active, to be educated about the role of sports in the society, and to try new activities. On Saturday the public was treated to Zumba and Tao Tribe community workouts, listened to the athletes-first inspired message of POC President Ricky Vargas read by POC Chairman Rep. Bambol Tolentino, and tried the newest and fastest mass population sport now in the country, obstacle sports. PPP also calls on us to move with a purpose, to be innovative and to realize the need for partnerships for the public good. Friendship, respect and excellence. These three values of the Olympics are at the very core of PPPs and the Olympic Day celebration. In a PPP, the parties must collaborate, adhere to and respect obligations under the contract and strive to do more for each other and for the people. The five Olympic rings. The rings represent the continents of

the world and are united by Olympism. For PPPs and in sports, the five stakeholders must be linked, i.e., public proponents, private sector proponents, civil-society organizations, regulatory agencies and us, the beneficiaries. During the funfilled festivities two days ago, the people moved, learned and discovered… together. Sports can be the hotbed for “PPPs.” World-class sports facilities and better athletes’ development can be pursued via “PP” Partnerships. Here, PP can mean private-private like the generous support extended by the San Miguel Corp., MVP Sports Foundation and the Association of Basketball Clubs to the POC; public-public like the collaboration between national government agencies, government instrumentalities and the Philippine Sports Commission in the staging of events; and public-private like the partnership between POC and PSC.

Ghanaian inspirational writer Lailah Gifty Akita said, “In all circumstances, we must let God be in control. He is able to guide us in the best pathways.” No matter how hard we try, no matter how good we are, things will never go our way all the time. But the fact that we do not control how events will turn out does not imply that we should just sit and wait. In the Bible, Galatians 22-23 tells us, “But the fruit of the Spirit is love, joy, peace, forbearance, kindness, goodness, faithfulness, gentleness and self-control; against such things there is no law.” We need to make full use of one of the fruits of the Holy Spirit, which is self-control. For believers who are aided by the Holy Spirit that dwells in them, they are equipped with the knowledge to wisely embrace situations, just like Ruel’s, with much contentment and confidence. Believers need self-control because the outside world is full of temptations and distractions that can deprive them of genuine happiness. And, as it is written in the Holy Book, 1 Peter 5-7 tells us, “For this very reason, make every effort to add to your faith goodness; and to goodness, knowledge; and to knowledge, selfcontrol; and to self-control, perseverance; and to perseverance, godliness; and to godliness, mutual affection; and to mutual affection, love.” By faith, we yearn to know more about Him. And by doing so,

eventually, we gain greater selfcontrol. We can then decide with greater conviction. We can accept unhappy circumstances with less sadness. With self-control, we can choose to believe that there is something positive in every adversity. In Ruel’s case, he tries to uncover God’s hidden blessings in every “unfortunate” event. The poem Invictus ends with, “I am the master of my fate, I am the captain of my soul.” With the gift of self-control, we freely choose whether we happily embrace what life has to offer or stubbornly refuse to accept the good with the bad. Relatively, one of the greatest gift God has given mankind is free will. We have the power of choice in every decision that we make which ultimately leads to who we are and who we can be. Seneca added, “The greatest blessings of mankind are within us and within our reach.” Ruel is happily pursuing these blessings while embracing all the challenges that go with his pursuit. I admire his tenacity as I, too, pursue the blessings within my reach. It has not been easy, but with the fruits of the Spirit cultivated within me, I have learned to happily embrace everything that has happened in my life. Thank you Ruel for showing me one of life’s greatest blessings—amor fati. For questions and comments, please e-mail me at sbmison@gmail.com.

GM can’t count on Trump to win a trade war By Brooke Sutherl Bloomberg Opinion

ast year Corporate America was all about press releases announcing lofty US hiring plans. The new fad is to threaten the reverse. On Friday General Motors Co. joined Harley-Davidson Inc. and bourbon maker Brown-Forman Corp. in calling out the negative impact to their businesses from President Donald J. Trump’s effort to use national security as an excuse to slap tariffs on goods imported from US allies. GM said tariffs on imported vehicles and auto parts could lead it to employ fewer US workers and have less of a presence in America. It’s notable that GM, like HarleyDavidson, was previously the subject of Trump praise. Back in January 2017, we got this tweet: Donald J. Trump @realDonaldTrump Thank you to General Motors and Walmart for starting the big jobs push back into the US! That was in response to GM’s announcement that it will invest $1 billion in the United States and create or retain 7,000 jobs, almost 2,000 of which in domestic factories. Like almost all of these job announcements, it was mostly fluff.

GM’s “new” investment was largely really for models and plants that had already been in the works and represented spending GM would have done regardless of who was in the White House. The job plan appeared to be real, although I will note that not firing people is not quite the same as adding new positions. Just a short while earlier, GM had said it would cut 3,300 jobs at three plants in Michigan and Ohio because of a swing away from sedans toward pickups and sport-utility vehicles. But as a public-relations effort, the flowery language and big promises clearly had the desired effect. There is likely an element of public relations to the more recent GM and Harley-Davidson announcements as well, but if the Trump administration wasn’t willing to call out past bogus jobs announcements for what they were, they have little standing to undercut this latest round of press releases. And as Stephen Gandel pointed out earlier this week, the threat of Trump turning nasty on Twitter isn’t packing the punch it once did, anyway. Corporate America can do self-interest even better than the president, and as any CEO of a public company that’s battled an activist investor

will tell you, patience isn’t considered a virtue when it comes to running a business. Companies seek to maximize their profits, and in doing so, please their investors. So when it comes to decisions about jobs, investors—rightly or wrongly—may ultimately have more sway than politicians, barring a radical reversal of capitalism in America. And the uncertainty created by an escalating trade spat, not to mention the actual margin hit from retaliatory tariffs for some multinational companies, is bad for profits and stocks. GM’s supply chain isn’t built for Canada and the European Union to be treated like enemies. It’s unlikely that GM will be the last company to speak out against Trump’s trade war. Canada is expected to impose tariffs on goods ranging from washing machines to maple syrup on Sunday in response to the US steel and aluminum tariffs. China is expected to respond with retaliatory levies if the US sticks with its plan to impose tariffs on $34 billion of Chinese imports next Friday, July 6. Both occasions give companies another opportunity to speak out with the kind of press releases Trump won’t want to celebrate on Twitter.

2nd Front Page BusinessMirror

A12 Monday, July 2, 2018

Farm trade deficit expands in Q1 as export revenue dips

By Jasper Emmanuel Y. Arcalas

@jearcalas

HE country’s farm trade deficit widened by 41.15 percent to $1.828 billion in the first quarter, from $1.295 billion recorded a year ago, due to the double-digit cut in the country’s export revenue during the period. The agricultural trade deficit recorded in the January-to-March period was the biggest since the second quarter of 2016, when it expanded by 55 percent. The biggest deficit was posted in the first quarter of 2014, when it widened

by 605.41 percent. Data from the Philippine Statistics Authority (PSA) showed that total agricultural trade value in the January-to-March period dropped by 6.6 percent to $4.16 billion, from last year’s $4.45 billion.

The PSA said the country’s fa r m e x por t bi l l du r i ng t he three-month period sank by 26.2 percent to $1.17 billion, from $1.58 billion recorded last year, on lower shipments of animal or vegetable oils. “Moreover, the share of agricultural export to total export dropped by 7.4 percent from 9.4 percent in the first quarter of 2017,” the PSA said. The country’s total export bill in the January-to-March period reached $15.84 billion, 5.5 percent lower than the $16.756 billion recorded a year ago. Animal or vegetable fats and oils, which includes coconut oil, remained the top farm export of the Philippines during the first quarter and accounted for 26.62 percent of the country’s export bill.

The country’s shipments of animal or vegetable fats and oils reached 214,470 metric tons valued at $310.18 million, which was 36.77 percent and 42.43 percent lower than last year’s records, respectively. Philippine farm import bill in the three-month period rose by 4.16 percent year-on-year to $2.993 billion, as cereal imports became more expensive. The country’s purchases of imported cereal, which accounted for almost 20 percent of its total farm imports, reached 2.079 million metric tons valued at $568.76 million. The volume declined slightly by 1.07 percent, from 2.102 MMT a year ago but the value increased by 1.77 percent, from $558.87 percent recorded in the first quarter of 2017.

Traffic. . .

Continued from A1

“We acknowledge that these projects will cause heavy traffic all year round but we cannot compromise the safety of the motorists. If there is an urgent need to do these road projects simultaneously, then we will give the necessary clearances,” said MMDA General Manager Jojo Garcia. Seeing the massive inconvenience that these projects would bring, the Metro Manila Council (MMC) has approved a resolution, regulating the operation of provincial buses along Edsa. Starting July 15, all provincial buses are strictly prohibited from plying Edsa from Pasay City until Cubao, Quezon City, both northbound and southbound, from 5 a.m. until 10 a.m. and from 4 p.m. until 9 p.m., from Monday to Friday. “We expect to reduce by 2,000 the provincial buses traveling along Edsa once the regulation is implemented,” said Garcia. Violators will be meted with a P2, 000 fine.

Likewise, private contractor EEI Corp. will expand their working area on North Avenue in Quezon City for the construction of an elevated guideway for the MRT 7 starting July 2. The elevated guideway will be put up on North Avenue, from Mindanao to Veterans Hospital Gate area in the jurisdiction of Bagong Pag-asa and Project 6. Construction will be done in two phases: from Veterans to Vertis North Gate and from Vertis North Gate of Mindanao Avenue.

Emergency leak repair

Water concessionaire Manila Water on the other hand, will conduct an emergency leak repair on its large mainline on Edsa Shaw Boulevard southbound area. Preconstruction works will begin on July 7, while construction proper will be undertaken on a 24/7 schedule starting July 14 until the next 30 days. Vehicles turning right from Edsa to Shaw Boulevard will be diverted to Starmall premises to allow southbound buses and private vehicles to use the service road exclusively.

Buendia Bridge

The Department of Public Works and Highways is also set to build a stronger Buendia Bridge along Buendia Avenue. The Buendia Bridge has been found with cracks and needs immediate replacement due to poor condition. The MMDA has yet to give clearance for the construction of the new bridge that will be done in two phases.

By Elijah Felice E. Rosales @alyasjah

HE Philippines wants its trading partners to be flexible in negotiating the Regional Comprehensive Economic Partnership (RCEP), and urged them to compromise some of their domestic industries for the trade deal to be concluded this year. At the Fifth RCEP Intersessional Ministerial Meeting in Tokyo, Japan, the Philippines took a swipe at fellow negotiating countries that have yet to complete their list of products up for tariff elimination under the RCEP. In a text message to reporters, Trade Secretary Ramon M. Lopez said trading partners, in response, vowed to accomplish the task before the month ends. “On trade in goods, one of the important areas for the Philippines, some countries’ submissions were still below the targeted 92 percent for tariff elimination. Relevant RPCs [RCEP participating countries] committed to sub-

By Cai U. Ordinario @cuo_bm

Nlex drainage

Elevated guideway on North Avenue

PHL SEEKS FLEXIBILITY OF TRADE PARTNERS TO FAST-TRACK R.C.E.P. “At the meeting, RCEP economic ministers exercised political leadership and instructed their respective negotiators to exercise flexibility to bring the RCEP negotiations to conclusions within the year.”—Lopez

mit improved offers by the middle of July, to cover more products and reduce products in the exclusion list to a practical level,” Lopez said. “Ministers acknowledged that offers should support the goal of enhancing intra-RCEP regional trade and deepening the regional value chains. The same was also generally acknowledged for trade in services and investments,” he added. Lopez, who participated in the meeting, said Manila also told fellow negotiating countries to veer away from too much idealism and, instead, be realistic in finalizing the RCEP. See “RCEP,” A2

Year of Kentex factory fire had 99% of firms carrying out work-safety programs

Buses face restrictions on Edsa

Meanwhile, Garcia said that the Nlex Drainage Enhancement Project will be undertaken at a portion of Balintawak Cloverleaf along A. Bonifacio Avenue Road from 11 p.m. to 4 a.m. for 70 to 80 days. To give way tothis project, the ramp of Balintawak Cloverleaf Edsa-southbound will be closed to vehicular traffic. Motorists are advised to take the following alternate routes: Route 1: Vehicles coming from Nlex should take Smart Connect Interchange to Mindanao Avenue to destination. Exit to Edsa Monumento-bound and make a U-Turn to Edsa Southbound. Route 2: Vehicles coming from Monumento to A. Bonifacio Avenue should turn right to Biglang Awa Street, left at Jasmine Street, straight to 11th Avenue, turn right at A. Bonifacio Avenue to destination.

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A reflection of an attendant is seen on the side mirror of a car at a gas station in Taguig City. Oil companies cut prices last week, but an industry player said at the weekend that a “moderate” price increase may be expected on Tuesday, as several global developments served as a counterweight to earlier expectations of sustained price cuts as a result of Opec members boosting their production. ALYSA SALEN

‘Moderate’ oil price hike seen this week

ASTERN Petroleum said on Sunday that there could be a “moderate increase” in pump prices scheduled to take effect on Tuesday. “After several weeks of price reduction totaling P2.40 per liter in diesel and P2.90 for gasoline, oil prices are poised to make moderate increase this Tuesday to reflect the slight reversal in international price,” said company Chairman Fernando Martinez. He did not give an estimate as to the expected price adjustment for petroleum products.

Last week oil firms implemented a P1.15 per liter price rollback for gasoline, P0.90 per liter for diesel and P0.85 per liter for kerosene. The downward price adjustment reflected movements in the international petroleum market.  Martinez said that despite earlier expectations of sustained price cuts as a result of Opec members boosting their production— and with Saudi Arabia and Russia agreeing to add production— recent political turbulence in Libya and Venezuela , and the recent oil export ban on Iranian oil, production

coupled with low inventory in the US, resulted in this price reversal. Nonetheless, he said the favorable response of both Saudi Arabia and Russia to hike production and a possible warming relationship of US and Russia with the incoming summit of President Donald J. Trump and President Putin could create positive  and calming sentiments in the world market. “Thus, the resumption of lower oil price may still be expected and have a positive effect on the oil import-dependent Philippine market,” added Martinez.

NIA gets bulk as NG subsidies for May shrink 6.4% to P3.8B Continued from A1

corporations (GOCCs) reached P52.994 billion, expanding by 104.5 percent from the recorded P25.913 billion in subsidies from the January-to-May period in 2017. Of the total for May, the NIA received P2.674 billion, lower by 11.4 percent, from the P3.019 billion allotted for the agency in the same month for 2017. The agency was the recipient of bulk of the subsidy for the month. Next to the NIA, the Philippine Coconut Authority (PCA) was provided P561 million; the Philippine Children’s Medical Center received P144 million; the Philippine Rice

Research Institute, P76 million; the National Dairy Authority, P75 million; the Philippine Sugar Corp., P64 million; the National Kidney Transplant Institute, P49 million; the Cultural Center of the Philippines, P28 million; the Lung Center of the Philippines, P20 million; the National Electrification Administration, P17 million; the Philippine Institute of Traditional and Alternative Health Care, P9 million; the Aurora Pacific Economic Zone, P8 million; the Light Rail Transit Administration, P6 million; and the People’s Television Network Inc., P6 million. The Credit Information Corp.,

Southern Philippines Development Authority, and the Zamboanga City Special Economic Zone Authority all received a subsidy of P4 million each for the month, as well. For the five-month period, government financial institutions received a total of P12.334 billion, major nonfinancial government corporations got P18.053 billion, and other government corporations, a total of P22.607 billion. Then presidential candidate Duterte vowed to provide free irrigation and improve or provide universal health care for Filipinos when he ran for the highest office in the land.

UCH irony behind the statistics: the year the Kentex factory fire in Bulacan killed over 70 workers was also the period when almost all Philippine businesses had preventive measures for work safety, according to data from the Philippine Statistics Authority (PSA). Based on the 2015/2016 Integrated Survey on Labor and Employment (ISLE), 99 percent of establishments implemented prevention and control measures to boost work safety and prevent health hazards. Of the 30,682 establishments employing 20 or more workers in 2015, at least 30,287 establishments had preventive and control measures in place. “Almost all [establishments] carried out various preventive and control measures during the year. Establishments implemented these to promote and ensure health and safety environment for its employees,” the PSA said. Furthermore, in 2015, fire prevention and control program topped the list of occupational safety and health (OSH) policies/programs in various establishments that had 20 or more workers. This was followed by the drugfree workplace policy/program as imposed in about three-fourths or 75.4 percent of total establishments; emergency response preparedness programs (71.2 percent); accident prevention program (64.1 percent); and anti-sexual harassment in the workplace policy (60.4 percent). “For 2015, 5 out of every 6 establishments implemented fire prevention and control programs [82.3 percent] in the workplace,” the PSA said. The PSA also said the highest proportion of establishments with OSH policies and programs is in electricity, gas, steam and air-conditioning supply. Around 98.4 percent of establishments engaged in electricity, gas, steam and air-conditioning supply implemented OSH policies/programs; mining and quarrying, 97.9 percent; and private human health and social work activities, 96.7 percent. Data also showed fire -safety

training was the most availed OSHrelated training/seminar by employees in establishments. The most notable OSH-related trainings/seminars was fire-safety training, which was conducted in 7 out of every 10 establishments (70.4 percent) in 2015. “This aims to further ensure safety and health of employees in the establishments,”the PSA said. However, not all establishments tapped the Bureau of Fire Protection (BFP) for their fire-prevention trainings/seminars. Data showed that of the total 26,776 establishments that provided OSH-related trainings/seminars to employees, only two-thirds or 65.4 percent sought the services of the BFP for the conduct of the training. Other firms employed the assistance of the Department of Labor and Employment (DOLE), Occupational Safety and Health Center, and professional organizations in their OSH trainings. “A large proportion [63.1 percent] of establishments carried out their own trainings/seminars for their employees,” the PSA said. PSA data showed the top preventive and control measures were the appointment of safety/health officers and first-aiders, as done by 87.2 percent of establishments; posting safety signages or warnings, 84.2 percent; and imposing a smoke-free workplace, 83.2 percent. The other top measures were: providing emergency response preparedness activities for earthquake, fire, etc. which was put in place by 79.8 percent of establishments; and the regular conduct of equipment inspection and maintenance, by 79.7 percent of establishments. The Kentex factory fire killed 74 people trapped inside the burning shoes-and-slippers factory. It is considered as the third worst fire incident in the Philippines after the 1996 Ozone Disco Club fire that killed 162, and the 2001 Manor Hotel fire that led to the death of 75 people. The ISLE is one of the regular establishment-based surveys of the PSA and is conducted every two years. The survey has a total of 12,926 agricultural and nonagricultural sampled establishments employing 20 or more workers nationwide.