BusinessMirror July 08, 2019

POLICY CHANGES, LACK OF DATA PROMPT DTI TO ADJUST HALAL EXPORTS TARGET

ANALIZA FLORESMALAYANG of the Institute of Islamic Studies, University of the PhilippinesDiliman, discusses halal food and its importance to the Islamic faith and lifestyle at a forum organized by the Department of Science and TechnologyRizal in 2018. The government is keen on growing halal exports by 4 percent to 5 percent this year. PIA PHOTO

ROTARY CLUB OF MANILA JOURNALISM AWARDS

2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year

By Elijah Felice E. Rosales @alyasjah

T

HE Department of Trade and Industry (DTI) has adjusted its halal exports target for this year to reflect import policy changes in existing markets, as well as the availability of new shipments data.

Trade Assistant Secretary Anthony B. Rivera said the target was slightly lowered to mirror the slowdown in consumption of halal products across the world. He added the DTI is also struggling to get the real value for the country’s halal exports due

to lack of data.

“I would not say it [the target] was lowered, but there were adjustments made to reflect the global market and also new data,” Rivera told the BusinessMirror in a phone interview.

The original growth target for halal exports this year was 6 percent to 8 percent to as much as $605 million, from some $560 million last year. However, Trade Secretary Ramon M. Lopez said in his speech at the Second Philippine National Halal Conference last week the growth goal is 4 percent to 5 percent.

“There is a slowdown and this was due

to the new policies of our markets abroad in terms of halal recognition and standards coming particularly from Gulf Cooperation Countries, like the United Arab Emirates [UAE] and the Kingdom of Saudi Arabia [KSA], among others, but we expect these numbers to go back to its growth trend,” Lopez said.

“Our target is a single-digit growth [of ] 4 percent to 5 percent of halal-certified products of food and beverages, as well as cosmetics and personal-care products.

Our major markets are Malaysia, UAE, KSA, Indonesia and Iran,” he added.

BusinessMirror A broader look at today’s business

www.businessmirror.com.ph

n

Monday, July 8, 2019 Vol. 14 No. 271

‘PHL must hasten efforts to hit Apec trade goals’

T

By Cai U. Ordinario

@caiordinario

HE Philippines will have to do more to meet the Bogor Goals of the Asia-Pacific Economic Cooperation (Apec), as its average most-favored nation (MFN) tariff rates remain high, according to a study released by the Philippine Institute for Development Studies (PIDS).

In the study, titled “The Evolution of Apec and its Role in the Philippine Trade and Investment,” PIDS Research Fellow Francis Mark A. Quimba and Research Associate Mark Anthony A. Barral also said removing foreign ownership restrictions could help Manila deliver on its commitments to Apec.

Apec members agreed during a meeting in Bogor, Indonesia, in 1994 to achieve free and open trade and investment by further reducing barriers to trade and investment and by promoting the free flow of goods, services and capital. These targets became known as the “Bogor Goals.”

“Trade liberalization and facilitation in Apec could be unequivocally considered a successful undertaking that contributed to the reduction of trade costs and efficient movements of goods and services,” the authors said.

“However, despite what Apec has achieved, it remains insuffi-

6.3 percent The average most-favored nation tariff rates of the Philippines as of 2017, higher than the Apec average of 5.3 percent ciently effective in many areas. In the Philippines alone, more efforts are required to significantly make progress in meeting its commitments in Bogor Goals,” the authors said.

In terms of MFN tariff rates, the average in the Philippines is 6.3 percent as of 2017, while the Apec average was at 5.3 percent. Data showed that MFN applied tariff for agriculture and nonagriculture See “Trade goals,” A2

HE Bureau of Customs (BOC) has issued a memorandum order that imposes a provisional safeguard duty of P3 per kilogram on imported ceramic floor and wall tiles.

The BOC said it issued Customs Memorandum Order (CMO) 28-2019 after the Department of Trade and Industry imposed the safeguard duty on ceramic floor and wall tiles from abroad.

“The said duty shall come in the form of cash bonds and shall be imposed in the amount of P3 per kg of imported ceramic tiles,” the BOC said in a statement. The CMO was issued on June 17 and was signed by Customs Commissioner Rey Leonardo B. Guerrero.

“The provisional safeguard duty

shall be imposed for a period of 200 days only and shall be applied to specific tariff headings enumerated in CMO 28-2019,” the BOC added.

The issuance of the CMO is pursuant to DO 19-06, Series of 2019, which was issued by the DTI as it implements Section 8 of Republic Act (RA) 8800, also known as The Safeguard Measures Act, as well as the implementing rules and regulations (IRR) of the said law.

“DTI determined that the domestic ceramic floor and wall tiles industry suffered significant loss in revenue due to the influx of similar products from overseas, thus diminishing the market share of domestically produced products from 96 percent in 2013

PESO EXCHANGE RATES n

See “Ceramic tiles,” A2

2018 EJAP JOURNALISM AWARDS

BUSINESS NEWS SOURCE OF THE YEAR DEPARTMENT OF SCIENCE AND TECHNOLOGY

2018 BANTOG MEDIA AWARDS PHILIPPINE STATISTICS AUTHORITY

DATA CHAMPION

P25.00 nationwide | 5 sections 28 pages | 7 DAYS A WEEK

REFORMS TO SUSTAIN PHL’S GAINS PUSHED

By Rea Cu

T

@ReaCuBM

HE private sector is asking the government to sharpen the competitiveness of the country’s future work force, ensure water security and attract more foreign direct investments (FDI) to sustain the country’s economic growth, the Department of Finance (DOF) said.

The DOF said these initiatives topped the list of “actionable recommendations” made by the private sector during the first Sulong Pilipinas workshop held at the Philippine International Convention Center in Pasay City this year.

The Presidential Communications Operations Office received the recommendations from the private sector on behalf of the Duterte administration.

Finance Assistant Secretary Antonio Joselito G. Lambino II

said the top recommendation was the refinement of the K to 12 basic education program through the skills enhancement of instructors and integration of in-demand skills in the curricula.

T he pr ivate sector a lso urged the government to promote water security through the rehabilitation of existing water dams and the creation of a Cabinet-level department in charge of water resources management.

Businesses said the government must ensure the effective implementation of the Ease of Doing Business law.

The private sector also made a pitch for making grants available to startups and enabling technology transfer to stimulate the growth of innovative digital start-ups, and strengthening agricultural infrastructure and logistics to boost farm productivity.

See “Reforms,” A2

Farm-gate price of rice at 2-yr low

Govt to start collecting safeguard duty of ₧3/kg on imported ceramic tiles

T

See “Exports,” A2

By Jasper Emmanuel Y. Arcalas @jearcalas

T

IN this 2018 file photo, samples of ceramic tiles are on display in a showroom in India. The Philippine Bureau of Customs issued a memorandum order indicating that it will start imposing the safeguard duty on shipments of ceramic floor and wall tiles from abroad. DAVID PAUL MORRIS/BLOOMBERG

HE average farm-gate price of unhusked rice fell to P17.85 per kilogram in endJune, the lowest in two-and-a-half years, as rice imports surged past 1.3 million metric tons (MMT), data from the Philippine Statistics Authority (PSA) showed.

The average buying price of palay as of the fourth week of June declined by 16.51 percent, from last year’s P21.38 per kg, according to preliminary data from the PSA. PSA data compiled by the BusinessMirror showed that the latest figure is the lowest since the third week of December 2016, See “Rice,” A2

US 51.0960 n JAPAN 0.4740 n UK 64.2890 n HK 6.5623 n CHINA 7.4362 n SINGAPORE 37.6870 n AUSTRALIA 35.8643 n EU 57.6669 n SAUDI ARABIA 13.6256

Source: BSP (5 July 2019 )

News

BusinessMirror

A2 Monday, July 8, 2019

www.businessmirror.com.ph

Govt cheers deeds; labor jeers anti-SOT tack

A

By Samuel P. Medenilla

@sam_medenilla

S government patted its back on accomplishing regularization of 471,394 contractual workers, labor groups slammed employers for pushing for the outright veto of the pending Security of Tenure (SOT) bill.

Labor Assistant Secretary Benjo Santos M. Benavidez told the BusinessMirror the Department of Labor and Employment (DOLE) was already able, as of July, to facilitate the regularization of nearly half-a-million contractual workers.

Labor Secretary Silvestre H. Bello III considers this as a result of the government’s campaign.

“The regularization of almost

Trade goals. . .

Continued from A1

products averaged 9.9 percent and 5.7 percent in the Philippines, respectively.

While the country’s MFN tariff rates for agriculture products were lower than the Apec average of 11.4 percent, the Philippine MFN tariff rates for nonagriculture products was higher than the Apec average of 4.4 percent.

The study also showed that the percentage of zero-tariff product lines and imports in the Philippines were significantly lower than the average in Apec. The percentage of zero-tariff product lines in the country reached only 3.4 percent in 2017 and zero-tariff imports, 37.7 percent in 2015.

In the region, the percentage of zero-tariff lines was at 47.9 percent, while zero-tariff imports were at 58.4 percent as of 2016 on average.

“In eliminating MNF tariffs, the Philippines does not seem to make a lot of progress. MFN applied tariffs have not changed since 2008. MFN tariff rates in the country are even higher than the Apec average,” the authors said.

“The perceptions on the Philippines’s investments environment, as reflected by the prevalence of

Ceramic tiles. . .

Continued from A1

to a measly 15 percent share in 2017 and 2018,” the BOC said.

“The determined loss in market share lead to revenue losses for local enterprises, prompting the imposition of a provisional

500,000 contractuals is a big thing,” Bello said. “It is unprecedented.”

The labor chief said these figures could still rise especially if President Duterte will opt to sign the pending SOT bill, which imposes additional restriction for contractual work arrangements.

“I am sure and quite positive we will get a positive reaction from the President. After all, this is certified [SOT] bill,” Bello said. foreign ownership and business rules that have impacts on investment flows, are much lower than the average levels of perception in Apec economies and has been declining,” they added.

Impact on prices

THE increase in the prices of some processed meat products can be averted if the BOC will no longer retroactively collect the 35-percent tariff difference on imported MDM from March 5 to May 16, according to industry sources.

HOWEVER, labor groups slammed employers for pushing for the outright veto of the SOT bill based on a wrong assumption.

Last week, local and foreign business groups submitted a letter to Duterte to appeal to him to junk the SOT bill, claiming it was already redundant with the provisions of Executive Order (EO) 51 and the DOLE Order 174.

Labor coalition Nagkaisa chairman and Federation of Free Workers (FFW) President Jose Matula called the assessment “unrealistic,” citing the thousands of workers who fall prey to arbitrary contractualization.

“With due respect the business leaders claiming that the old rules is enough to solve Endo, it appears they are out of touch of reality with the situation of millions of workers,” Matula told the BusinessMirror.

HOWEVER, the PIDS study indicated the country is already working toward improving the business climate in the Philippines through the implementation of the Investment Priorities Plan 2017-2019, which intends to encourage more investments, especially in manufacturing and micro, small and medium enterprises.

The framework utilizes inclusive business models in agriculture and tourism, innovation-driven activities, health and environmental protection, and dispersion of investment opportunities in the countryside.

The government also released the 11th Foreign Investment Negative List (FINL) to ease the restrictions on foreign participation in areas such as retail trade enterprises, domestic market enterprises and public-works construction.

Through Executive Order 65, 100-percent foreign participation is now allowed in activities and investments related to Internet businesses; teaching at higher edu-

cation; training centers engaged in short-term high-level skills development not part of the formal education system; adjustment companies, lending companies, financing companies, and investment houses; and wellness centers.

“In consideration of these issues, it is important for the Philippines to utilize trade agreements and trade facilitation, upgrade domestic facilities to meet global standards, and align domestic regulations,” the authors said.

The authors said trade agreements and facilitation initiatives in Apec may help stimulate and improve the competitiveness of domestic producers and sectors in the country. These initiatives will pave the way for the introduction of e-commerce best practices, paperless trading and customs-business partnership, among others.

The authors noted that trade agreements may help firms access cheap inputs and advanced technologies, as well as foster competition, which could lead to higher productivity and growth.

Developing economies committed to achieve free and open trade and investment by 2020. Apec conducts a biennial review of the progress of member-economies.

The final assessment will be done next year.

safeguard duty on imported tiles,” it added.

Last month the Philippine Ceramic Products Importers Association Inc. said cheap tiles used for low-cost housing could increase prices by as much as P33 per piece once the safeguard duty on ceramic floor and wall tiles takes effect.

Napoleon Co of the Philippine Ceramic Products Importers Association Inc. said the P3 per kg safeguard duty on ceramic floor and wall tiles will be a burden to property developers.

The DTI imposed in May the P3 per kg safeguard duty on imported ceramic floor and wall tiles to protect local manufacturers. Rea Cu

Manila’s initiatives

Meat processors. . . the corresponding surcharges and interests starting March 5, when RA 11203 or the rice trade liberalization law took effect.

The BOC insisted that the adjustment of the rate to 40 percent was in accordance with what was discussed during a meeting involving the BOC, Tariff Commission (TC), DOF and the National Economic and Development Authority (Neda) on April 12 in line with the implementation of the rice tariffication law.

The TC called the meeting after Pampi requested the BOC to reinstate the 5-percent tariff on imported chicken MDM. The BOC sent the letter of Pampi to the commission on April 3.

‘Wrong assumption’

Continued from A12

The BOC earlier said it expects the Manila International Container Port (MICP) to net an additional P400 million from the collection of the 35-percent tariff difference from importers and processors.

However, meat industry sources said the figure could go as high as P1 billion given the volume of chicken MDM that local processors import monthly. “If the BOC would not collect those P1-billion back taxes then the meat processors could just easily absorb whatever price increases in raw materials due to limited supply, such as the banning of German imports,” the source said.

Manila banned all meat products from Germany—the second top source of Philippine meat imports—after the Bureau of Animal Industry (BAI) discovered a major breach of quarantine protocol for African swine fever (ASF).

Agriculture Secretary Emmanuel F. Piñol issued a memorandum order authorizing the suspension of the system accreditation of German foreign meat establish-

ments to ship meat products to the Philippines. The order takes effect immediately.

Piñol said BAI’s investigation found that the confiscated meat shipments from Germany last June 27 in Cebu contained 250 kilograms of pork from Poland, a country struck by ASF. Poland was banned from exporting meat to the Philippines due to the outbreak of the fatal pig disease.

ERRATUM IN the related story, “PHL wants Germany to probe meat trader’s quarantine breach,” which appeared in the BusinessMirror on July 5, 2019, the word “unintentional” should have been placed before the word “mistake” in this paragraph: “I am writing to apologize for our intentional mistake that might cause damages to our client JudPhilan Foods Corp. and for whatever purposes this may serve,” the letter added, which was dated June 28.

We regret the error.

Endo is the acronym for “end of contract,” an illegal form of contractualization wherein workers are repetitively hired and rehired by their employers for the purpose of circumventing their right to be regularized.

Mutually beneficial

LAST May, the DOLE reported it was able to facilitate the regularization of around 400,000 workers since 2016 from 3,377 firms, which were found or suspected of engaging in illegal forms of contractualization.

Many of the said employers claimed they were not aware that some of their positions cannot be legally contracted out since they are part of the company’s “core” business.

The process of determining if a position is “core or non-core” has been the subject of numerous labor disputes due to contradicting

Exports. . .

Continued from A1

On top of the global slowdown in the market, Rivera also pointed to the lack of reliable data on the country’s halal shipments as a factor for adjusting the target.

“We only base our data from the assumption that products exported to the Midd le East, Ma laysia, among others, are all halal products. Right now, trade data do not discriminate what is halal and and what is not,” Rivera explained.

“That is why we are working with the academe in trying to come up with a more reliable data source for our halal exports, and the DTI is also looking into best practices of halal-exporting economies on how they handle their halal shipments,” he said.

According to the trade official, the DTI is tying up with the De La SalleCollege of Saint Benilde in coming up with a framework that will more accurately compute and forecast the country’s halal exports. The school has its own export marketing program dedicated to the study of shipping goods and services overseas.

Lopez said he is targeting to make the Philippines an exporter of halal poultry and meat products in the future once the government’s halal hubs are completed.

“In the future, we would like to see notable exports of halal poultry and meat.

Once our halal hubs are in place and we have slaughterhouses and laboratories dedicated for halal, we are optimistic that this goal would be realized,” the trade chief said.

Under Lopez, the DTI is seeking to turn the Philippines into a major player in the global halal market valued at some $3.2 trillion at present.

The market is projected to expand to as much as $10 trillion by 2025 with Muslims set to comprise over 25 percent of the world’s population in the next decade.

Half of the global Muslim population resides in South Asia and Asia Pacific, making it geographically strategic for the Philippines to trade with.

Halal products and services are required to adhere to the prescribed process of preparation according to Islamic law and be authorized by halal certification bodies.

interpretations from management and labor unions.

Trade Union Congress of the Philippines (TUCP) Spokesman Alan Tanjusay said the passage of the SOT bill will aid in ending this contentious issue.

He said it is this mutually beneficial nature of the SOT bill that makes them confident that Duterte will back the legislation.

“The SOT bill, when approved into law, as it is, will identify the jobs that can be contracted out and what are those that can only be regularized,” Tanjusay said. “This will help employers to plan better and cope with demands of the modern times.”

Matula explained the process of this determination will be done through the Industry Tripartite Council, which has representatives from both employers and labor groups.

Bello earlier said the bill was

Rice. . .

Continued from A1

when average quotations reached P17.84 per kg.

Figures from the PSA also indicated that the average farm-gate price of palay has fallen for the seventh consecutive week. The lowest was reported in Caraga at P15.05 per kg.

The average farm-gate price of palay usually picks up in June as the country prepares for the lean season, which starts in July, when rice harvest is usually minimal.

Higher imports

RICE farmers and other industry stakeholders attributed the drop in palay prices to higher rice imports this year following the implementation of the rice trade liberalization law.

PSA data obtained by the BusinessMirror showed that rice imports from January to April more than doubled to 1.317 MMT, from last year’s 468,949.86 metric tons.

The volume is comprised of rice imports brought into the country by the government and the private sector, according to the PSA. The National Food Authority (NFA) allowed the out-quota importation of rice in the latter part of 2018 to pull down retail prices and temper inflation.

NFA data showed that as of March 5 at least 357,816.45 MT

Reforms. . .

Continued from A1

Other recommendations were the amendment of the Magna Carta for Micro, Small and Medium Enterprises (MSMEs); enactment of the Warehouse Receipts Act and Weather-Indexed Agricultural Insurance; and accelerating efforts to address high foreign shipping costs and port congestion.

Businesses also want to ensure strong agency performance by appointing competent technocrats as secretaries of key departments; enact a modern and sustainable national policy in land and marine use; rehabilitate and upgrade major railways and airports to boost tourism; and amend the Public Services Act, Right of Way (ROW) Act, and the economic provisions of the Constitution to fast-track infrastructure developments.

The top 10 recommendations were presented by George T. Barcelon and Ma. Alegria Sibal-Limjoco, chairman and

e-cigarettes. . .

Continued from A12

“The taxation on e-cigarettes is just making noise now because it may go down to P10 under the proposal [pending in Malacañang], but they are required to pay taxes ever since,” she said.

“All I know is we’ve been collecting taxes from them, the heated part, the effect now is that the rate will go down when the President signs

already transmitted to Malacañang last June 21 for Duterte’s consideration.

‘Unparalleled’

BUT even without the SOT bill, Bello said Duterte’s accomplishme nt on cont r a c t u a l i z at ion policy is already unparalleled, which is why he endorsed this achievement together with the soon-to-be constructed overseas Filipino workers (OFW) Hospital in Pampanga to become part of the President’s upcoming State of the Nation Address (Sona) later this month.

The construction of the firstever OFW-dedicated hospital in the country, Bello said, is expected to start by July 15.

Malacañang said Duterte’s Sona this year will focus more on the administration’s poverty alleviation programs to show the government’s malasakit or concern to Filipinos. of rice arrived this year under the out-quota importation program.

The food agency monitored rice imports until March 5, when the rice trade liberalization law took effect and limited its role to buffer stocking.

NFA data showed the arrivals of rice it imported reached 532,775.285 MT, which it bought last year via the government-togovernment scheme and open tender transactions.

The Bureau of Customs said it has collected P5.9 billion in tariffs from some 1.43 MMT of rice imported by traders following the implementation of Republic Act 11203 in March.

Retail prices

THE average retail price of regularmilled rice (RMR) as of the fourth week of June fell to a 17-month low of P38.56 per kg, PSA data showed.

The latest average quotation was 5.23 percent lower than last year’s P40.69 per kg and slightly lower than P38.68 per kg recorded last week.

This was the lowest retail price of RMR since the third week of January 2018, when the average quotation reached P38.45 per kg.

PSA data also showed that the average retail price of well-milled rice declined by 2.11 percent yearon-year to P43.10 per kg.

However, the average retail prices of RMR and WMR were still higher than the average quotations in the same period of 2015 to 2017. president, respectively, of the Philippine Chamber of Commerce and Industry, which has been a strategic partner of “Sulong Pilipinas” since its inception.

“In our experience, these workshops with the public have been complemented by decisive action on the part of the government,” Barcelon said.

“Even before the Duterte administration formally assumed office in 2016, Sulong was a demonstration of its willingness to listen,” Limjoco said.

During the Sulong workshop, which was held after the Pre-State of the Nation Address (Pre-Sona) forum of the Economic Development and Infrastructure Clusters of the Duterte Cabinet, Finance Undersecretary Karl Kendrick T. Chua spoke about the progress the administration has made thus far in its socioeconomic agenda.

Sulong Pilipinas is the annual consultative conference between the Duterte administration and the private sector.

Lambino has been a prime mover of the annual conference since it was first held in Davao City in June 2016.

the enrolled bill with the rate of P10.”

Under Senate Bill 2233, excise tax on cigarette packs are increased to P45 by January 1, 2020, from the current P35 per pack, with the tax rising by five percent annually starting 2024. The rates for e-cigarettes, specifically heated tobacco products are lower at P10 which is also the same rate for vapor products with less than 10 milliliters of liquid nicotine content. Those containing higher liquid nicotine content are taxed higher than P10 for vapor products. Rea Cu

www.businessmirror.com.ph

The Nation BusinessMirror

Comelec begins purging voter’s list for 2020 polls

By Samuel P. Medenilla @sam_medenilla

T

HE Commission on Elections (Comelec) has started purging its voter’s list in preparation for the scheduled barangay and Sangguniang Kabataan Elections next year.

Comelec Elections and Barangay Affairs Department Director Teopisto E. Elnas Jr. said the process of removing voters, who are already candidates for deactivation, is now ongoing.

Based on the Voter’s Registration Act of 1996, the following are grounds for deactivation of a voter: being sentenced by final judgment to suffer imprisonment for not less than one year; adjudged by final judgment of committing crime involving disloyalty to the government, such as rebellion, sedition, violation of the anti-subversion, and firearms laws, or any crime against national security; and, being declared by competent authority to

be insane or incompetent.

Other reasons for deactivation include not being able to vote in the two successive preceding regular elections as shown by their voting records; being ordered by the Court to be excluded from registration; and, loss of one’s Filipino citizenship.

Elnas said they will also be removing voters who have recently died from their list using the monthly Local Civil Registrar as basis.

For the 2019 May midterm polls, the Comelec has registered over 61.8 million voters.

Elnas that they aim to complete the updated voter’s list before the resume of the voter registration next month.

“Before the voter registration activity, the Comelec will conduct an updating of records in order to cleanse the list of voters,” Elnas said in an interview on radio.

The next round of voter registration runs from August 1 to September 30.

Defense chief wants govt ready vs suicide bombers

By Rene Acosta @reneacostaBM

D

EFENSE Secretary Delfin N. Lorenzana said the government must be prepared to deal with suicide bombing pending official pronouncement that the twin blasts at a military camp in Sulu more than a week ago was by suicide bombers.

“We have to be prepared,” Lorenzana said. To note, the defense chief confirmed last week that the attack on the camp of the Army’s 1st Brigade Combat Team at Barangay Kajatian in Indanan, Sulu, was a suicide bombing based on the statement of soldiers.

The blast killed the two bombers—one of who may be a Filipino— along with six others, including three soldiers and wounded 22 others.

Officials have agreed that if the twin explosions were a case of a suicide bombing and involving the Filipino, then it has elevated the government’s fight against terrorism to a higher level by now dealing with what Islamic militants’ considered as the ultimate act of martyrdom, which is new front in the anti-terror campaign.

Two cases of suicide bombings have been recorded in Lamitan City, Basilan, and in Jolo, Sulu, but both were perpetrated by a Moroccan and an Indonesian couple who were said to be members of the Islamic State. The attacks were carried out in coordination with local terrorists.

Major Gen. Cirilito E. Sobejana said that while one of the bombers in the Indanan attack was a Filipino, they were still in the pro-

A dozen CBCP committees to be led by new chairmen

T

WELVE of the Catholic Bishops’ Conference of the Philippines’s (CBCP) committees and commissions will now be led by new executives.

This, after the CBCP held its elections over the weekend as part of its ongoing 119th CBCP Plenary Assembly at the Pope Pius XII Catholic Center in Manila.

Among the newly elected officers of CBCP are: Libmanan Bishop Jose Rojas of the Episcopal Commission on Doctrine of the Faith;

Naval Bishop Rex Ramirez of the Episcopal Commission on Heath Care; Bontoc-Lagawe Bishop Valentin Dimoc of the Episcopal Commission on Indigenous Peoples; Marawi Bishop Edwin de la Peña of the Episcopal Commission on Inter-religious Dialogue; Boac Bishop Marcelino Maralit Jr. of the Episcopal Commission on Social Communications; and, Borongan Bishop Crispin Varquez of the Episcopal Office on Women.

The other six new officials of

CBCP are: Daet Bishop Rex Alarcon of the Episcopal Office on Youth; Kidapawan Bishop Jose Bagaforo of the Episcopal Commission on Social Action, Justice and Peace; Romblon Bishop Narciso Abellana of the Episcopal Commission on Migrants and Itinerant People; Puerto Princesa Bishop Socrates Mesiona of the Episcopal Commission on Mission; Balanga Bishop Ruperto Santos of the Episcopal Commission on Pontificio Collegio Filipino; and, Archbishop of Lingayen-Dagupan

City Socrates Villegas of Episcopal Commission on Seminaries.

The heads of the 18 other committees and commissions of CBCP were reelected.

To note, Archbishop of Davao Romulo Valles and Caloocan Bishop Pablo Virgilio David were both reelected as president and vice president of CBCP, respectively.

The elected CBCP officials would hold office from December 1, 2019, until November 30, 2021.

Samuel P. Medenilla

BI nabs Chinese fugitive for scamming compatriots

By Joel R. San Juan @jrsanjuan1573

A

CHINESE fugitive who duped at least 7,500 of his compatriots in his pyramiding investment scheme has been arrested by agents of the Bureau of Immigration (BI).

BI Intelligence Officer Bobby R. Raquepo, who heads the Bureau’s Fugitive Search Unit (FSU), said the suspect, 40-year-old Hu Mingtian, was arrested on Tuesday evening inside his residential

unit in Pasay City.

Hu is facing criminal complaint for large-scale fraud in China and has been on the BI’s wanted list since last month when he was issued a summary deportation order by the bureau’s board of commissioners for being an undesirable and undocumented alien.

Prior to his arrest, the International Criminal Police Organization (Interpol) and Chinese Embassy sought the BI’s help in locating Hu who is the subject of

Editor: Vittorio V. Vitug • Monday, July 8, 2019 A3

a criminal complaint from 7,455 victims who claimed they were defrauded of more than 435 million yuan ($63 million).

Hu allegedly perpetrated the investment scheme from March 2016 to September 2018 in Fujian province by luring victims to deposit their money, with a promise that their investments would earn huge profits.

However, Hu failed to fulfill his promise to his investors prompting the Chinese government to go after him.

“Instead of fulfilling his promise, however, he absconded with the victims’ money and fled to the Philippines together with two of his accomplices who remain at large,” Raquepo said.

The BI said Hu has been illegally staying in the Philippines as an undocumented alien because the Chinese government already canceled his passport last May 31.

Hu is expected to be deported soon after his name was placed in the BI blacklist and banned from reentering the country.

cess of determining whether he had deliberately blew himself or the bomb that was in his possession was remotely detonated by somebody. However, the military confirmed he was a member of the Abu Sayyaf Group.

Sobejana said the probability of a suicide bombing was very high but this would have to be thoroughly validated.

He added that the bomber, Norman Lasuca, a 23-year-old native of Asturias, Jolo, was identified when his mother and a brother went to a militar y morgue in Busbos and claimed his severed head. The mother said his son left home five years ago and they have not seen him since.

Lorenzana softened a little bit on his claim of suicide bombing, saying that while the military

“said that,” it was still “working to determine the veracity of that claim.”

He said that while the bomber has been claimed by a Filipino family in Jolo, this still has to be validated through DNA matching.

“We have to match it first. If their DNA matches; then he is a Filipino,” Lorenzana added.

The defense secretary, however, said he would not be surprised if the attack was a suicide bombing and it was done by a Filipino, citing the history of the Moro’s suicide attacks against American troops in Sulu in the early 1900s.

“If they can do it before when there [was] still no bombs [available]; now there are already bombs,” Lorenzana said. “So the fight is different now. They are capable of doing, it’s in the culture.”

Balajadia, ex-Senate sergeant-at-arms, 75

F

ORMER Senate Sergeantat-Arms Jose V. Balajadia Jr. passed away due to heart failure on Sunday. He was 75.

Balajadia’s son, Jet, confirmed the news to reporters.

“Just to provide the correct information, my father passed away at 12:50 a.m. early this morning at the Baguio General Hospital,” he said.

The wake will be held at the Saint Peter Chapel, Marcos Highway in Baguio City until 8 p.m. on July 10.

Balajadia’s remains will be airlifted to Villamor A ir Base on Thursday morning, July 11, where a militar y wake will also be held up until his burial at the Libingan ng mga Bayani.

The date of the burial has yet to be finalized, his son said.

Balajadia was the upper chamber’s sergeant-at-arms from 2002 until his resignation on June 30.

Sen. Grace Poe, reacting on his passing, said that “while our hearts are heavy, they are also filled with gratitude.” “ Thank you for keeping us always safe in the Senate, General Balajadia. Our thoughts and prayers are with you and your family,” she said.

Sen. Francis Pangilinan, meanwhile, hailed Balajadia as an “Igorot warrior” who showed passion and dedication as the longest serving sergeantat-arms in the history of the Philippine Senate.

“It is now our time to say ‘All rise’ for a man of passion and dedication,” he said. “ T ha n k you for ser v ing t he inst it ut ion, Genera l Ba l ajad i a, espec i a l ly du r ing t he t r y ing t imes at t he Senate, wh ic h inc lude t he a r rest of Sen. de Lima a nd t he at tempted a r rest of Sen. Tr i l l a nes,” Pa ng i l ina n sa id in Taga log. PNA

DENR probes Ifma over ancestral domain of Mindanao tribal groups

By Jonathan L. Mayuga @jonlmayuga

T

HE Department of Environment and Natural Resources (DENR) will look into the appeal of a group of indigenous peoples for the cancellation of a 28-year-old Integrated Forestry Management

Agreement (Ifma) the DENR awarded to a private agricultural company in Southern Mindanao.

In an interview, Director Nonito M. Tamayo of the DENR’s Forest Management Bureau (FMB) said the review of the Ifma held by M&S Co. began after the filing of a petition for cancellation filed by the T’boli-

Manobo S’daf Claimants Organization (Tamasco).

Tamayo said he has referred the case to the DENR Regional Office to look into the complaint.

Tamayo, who led a review of all existing DENR land deals, including Ifmas in 2017 and 2018, said they found no violation on the part

of Ifma holders, including that of M&S Co. “That was last year. Now, because of the complaint, we are referring the case to the region for review and recommendation,” Tamayo said.

Gross violation of the terms and conditions of the Ifma is a ground

for its cancellation.

M&S Co., a holder of Ifma covering about 29,000 hectares of public lands for 28 years now, operates the Dawang Coffee Plantation in South Cotabato and Sultan Kudarat.

Together with leaders of several nongovernment organizations under Task Force Tamasco, the group

and their supporters trooped to the DENR Central Office last week to file the petition.

Allegedly the Ifma, a government contract awarded to a private sector for the use of public lands, expired in 2016 but was allegedly extended without the consent of the concerned IP community.

A4 Monday, July 8, 2019 • Editor: Vittorio V. Vitug

Economy BusinessMirror

www.businessmirror.com.ph

Govt subsidies for scientific activities up 50%

S

By Cai U. Ordinario

@caiordinario

UBSIDIES extended to Professional, Scientific and Technical Activities expanded by 50.61 percent in 2017, according to the latest data released by the Philippine Statistics Authority (PSA).

Based on the preliminary results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for Professional,

Scientific and Technical Activities Sector with Total Employment of 20 and Over, the subsidies for the sector increased to P92.02 million

in 2017 from the P61.1 million posted in 2016.

“Subsidies are all special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry,” PSA explained.

PSA data showed that 94.92 percent of the subsidy amount in 2017 went to research and experimental development on social sciences and humanities. This amounted to P87.35 million.

The rest of the amount which reached P4.67 million, or 5.08 percent of the total, was extended to research and experimental devel-

opment on natural sciences and engineering. This industry was not given any subsidy in 2016. The only industry that received a subsidy in that year was the activities of head offices.

The funding benefited some 2,735 employees conducting researches in the natural science, engineering, social sciences and humanities.

There are 2,000 employees in firms conducting researches in the natural science and engineering fields and 735 employees in the social science and humanities.

The total income of both indus-

DTI confiscates substandard goods, penalizes stores in Valenzuela City

By Elijah Felice E. Rosales @alyasjah

A

UTHORITIES last Friday confiscated substandard products and penalized two stores in Valenzuela City for violating laws on standards and consumer welfare.

The Department of Trade and Industry (DTI) said it inspected hardware stores in Valenzuela City and caught two stores selling lowgrade items. One store was found selling underweight steel bars and wires with no Philippine standard marks, while another was discovered selling uncertified PVC pipes and toilet wares.

The products were seized and the violating stores were issued notices of violation. They face a penalty ranging from P17,500 to P35,000.

According to the DTI, its Fair Trade Enforcement Bureau is conducting daily rounds in Metro Manila in a bid to reduce, if not eliminate, the prevalence of substandard products. It is also intensifying monitoring efforts in other regions to lessen substandards in rural markets.

Trade Secretary Ramon M. Lopez reminded stores selling substandard products will not only get them into trouble with law enforcers, but will also tarnish their reputation to the buying public.

“Selling substandard products is not good for your business since you will not establish credibility. If you are caught selling them, you will be fined and we will confiscate your products; thus, losing investment,” Lopez said in a statement.

“In selling these products, you are deceiving and endangering consum-

TRADE Secretary Ramon M. Lopez (center) inspects steel bars in Valenzuela City. Lopez was joined by other trade officials during the inspection. DTI PHOTO

ers and the public,” he added.

On top of the hardware stores, the DTI inspected a steel manufacturing mill in the northern Metro Manila segment and found it compliant with product standards and testing equipment required by the DTI. Last April, steel manufacturers called on the government to tighten its market monitoring and standards enforcement programs to stop the proliferation of sub-

standard steel products.

In a report to the DTI, the Philippine Iron and Steel Institute (Pisi) claimed substandard rebars are being sold in several ha rdwa re stores in Beng uet, Mountain Province and Ifugao.

The group found this out in the market monitoring and test buys it initiated early this year.

The Pisi appealed to the DTI’s Consumer Protection Group and Fair Trade Enforcement Bureau

to initiate a nationwide market monitoring and standards enforcement campaign.

It said market monitoring teams should conduct an actual weighing of rebars to determine safety and quality compliance, as well as checking of logos and markings.

The group said it is ready to render its services to the DTI should it need help in stopping the proliferation of substandard steel products.

tries reached P4.46 billion in 2017, a 69.89-percent increase from the P2.62 billion income of these industries in 2016.

The total income of these industries accounted for 5.43 percent of the P242.19-billion income in 2017 of the entire Professional, Scientific and Technical Activities Sector.

The income of the sector represented a contraction of 21.67 percent in 2017 compared to the P309.2 billion it posted in 2016.

Public investments in research and development (R&D), as well as science and technology (S&T) have always been low in the Phil-

ippines, according to former Socioeconomic Planning Secretary Arsenio M. Balisacan.

Balisacan also said the Philippines’s investments in S&T are considered the lowest among its neighbors.

He said the Philippines’s spending on Science and Technology, including research and development, does not even reach 1 percent of the country’s GDP. Balisacan also said increasing the country’s investments in S&T to around 2 percent of GDP will boost the country’s bid to achieve firstworld status.

Solon pushes bill mandating stiff fines for violators of occupational safety law

By Jovee Marie N. Dela Cruz @joveemarie

A

LAWMAKER is pushing for a measure imposing a fine of P100,000 to P1 million, or revocation of franchise, against TV networks and movie producers, that would violate occupational safety and health standards for the film, television and theater industry in the country.

In House Bill (HB) 191, or the Eddie Garcia Act, 1Pacman Partylist Rep. Michael Romero said the film, television and theater industry involves a unique business, and as such, presents several unique health and safety hazards that require special attention.

“Under this House bill, the film, television and theater industry are required to provide a safe workplace for all its workers and employees. Workplace safety and health protocols shall be primordial to eliminate personal injuries, illness or even death from occurring inside the workplace,” added Romero, stepson of the late actordirector Eddie Garcia.

For every violation or compliance failure, the measure will require the employer or contractor to pay an administrative fine of not less than P100,000 per day until the violation is corrected, beginning from the date of the violation or the date the compliance order was served.

The amount of the fine imposed will depend on the gravity, complexity and veracity of the violation committed or damaged cause. In case of subsequent offenses, the penalty shall be a fine of not less than P1 million per day, and revocation of the franchise to operate.

The bill also calls for mandatory personnel and production

insurance coverage.

Under the measure, all members of the film, television and theater industry shall be provided with an insurance coverage plan for the following: first aid, hazardous materials, communication regarding potentially hazardous procedures, production plan, stunt plan review plan and rescue plan.

The bill also sets standard working hours for different age brackets. The measure indicated that working hours shall be between eight to 12 hours only, including the waiting hours in-between takes. The minimum turnaround time before the next shooting day shall be 12 hours.

All working hours shall be stated in writing and properly disseminated in memorandum form to all workers and/or employees.

HB 191 requires the industry to craft and adopt a safety and medical checklist and the creation of standard operating procedures, inclusive of safety responsibilities and duties and a work refusal process.

Safety and medical personnel shall be mandatorily deployed to all workplaces and areas during the entire conduct of working hours.

It calls on the film, television and theater industry to formulate a systematic protocol for emergency operational scenarios and specific types of hazardous shoots.

On June 8, Garcia tripped on loose cables on a GMA Network production set while filming a television series.

Romero also expressed the hope that the “Eddie Garcia incident will symbolize the last of its kind of accidents and that safety and health protocols be put in place so that such incidents can now be eliminated.”

‘USAID program supports PHL’s reform Private sector offers help to facilitate FDA permits for NCR small firms initiatives to boost trade, investment’

T

HE Philippine Exporters Confederation Inc. (Philexport) has signed a cooperative agreement to implement a program supporting government reform initiatives that enhance market competition, boost trade and investment and promote inclusive growth.

The five-year Regulatory Reform Support Program for National Development (RESPOND) shall extend technical assistance to the project partners in implementing programs and pursuing policies that will improve the regulatory quality in the Philippines.

The program, which was awarded by the United States Agency for International Development (USAID) to the University of the Philippines Public Administration Research and Extension Services Foundation Inc. (UPPAF), shall also promote citizen engagement and advocacy.

Project partners, including Philexport, and UPPAF RESPOND shall jointly plan, develop and implement annual work programs pertaining to the technical assistance and collaborate on programs that will support the fulfillment of the targets and goals of the government and the project.

These include goals and objectives of Ambisyon Natin 2040, the long-term vision and aspirations of the Filipino people for themselves and for the country; the Philippine Development Plan 2017-2022; and the 0-10 Socioeconomic Agenda of the Duterte administration.

The goals of Ambisyon Natin 2040 can be achieved by having competitive enterprises through the improvement of market linkages, simplification of government procedures and facilitating access to finance.

The PDP, the blueprint for the cou nt r y ’s de ve lopment , a i m s to foster an enabling and supportive economic environment that contributes to inclusive growth by leveling the playing field through a National Competition Policy.

The third point of the Socioeconomic Agenda of the Duterte administration, meanwhile, is to increase competitiveness and ease of doing business while pursuing the relaxation of the Constitutional restrictions on foreign ownership in order to attract foreign direct investment.

Philexport News & Features

T

HE private sector is offering to assist in the government’s efforts to fast-track the application for the license to operate (LTO) and certificate of micro, small and medium enterprises (MSMEs) with the Food and Drug Administration (FDA).

Noting that there are already similar and successful partnership models, business organizations are seeking to get FDA accreditation and be deputized to help in the assessment of documents and conduct of inspection.

The Philippine Food Processors and Exporters Organization Inc. said in a statement issued by the Philippine Exporters Confederation Inc. that it has a memorandum of understanding with the FDA to help in document assessment and the conduct of trainings and seminars for its members. Philfoodex said, however, that this has yet to be implemented even if it was signed in 2008.

The Negros Oriental Chamber of Commerce has also offered its assistance to conduct inspections as the FDA office in the province is open only on Fridays.

PCCI Regional Governor for Central Visayas Edward Du said that most MSMEs in the province have decided not to secure the LTO and certificate of product registration (CPR) anymore

because of this. He also appealed to “regionalize” FDA operations and put up an office in Cebu.

Du added that “laboratory tests and nutritional value analysis are, likewise, centralized in Manila due to lack of complete laboratory facilities and lack of licensed nutritionists in Dumaguete.”

Even if the Nutritional Value Analyses Certificate is submitted on time, he noted that the processing of the laboratory results still takes the FDA in Manila months to approve.

To help address the issues, the private sector is, likewise, pressing for the enhancement of computer systems and hiring of more staff to improve and hasten processing and inspection.

Meanwhile, the “Initiative ni DTI-DOH Operational Livelihood (IDOL) Program” has for its salient feature the streamlining of the LTO and CPR, a project which is expected to benefit MSMEs by enabling them to comply with the regulatory requirements of the FDA. Under the pilot program, facilitating the LTO and CPR applications of microenterprises engaged in the production of low-risk food products in the National Capital Region (NCR) will be prioritized.

At present, under the existing procedure, processing of the FDA’s LTO

takes 90 calendar days and the CPR, 114 calendar days, or a total of 204 calendar days.

Under the IDOL program the hybrid LTO-CPR certificate will be processed within 20 working days, or 30 calendar days.

The IDOL project was jointly launched last May by the Departments of Health (DOH) and Trade and Industry (DTI).

A priority sector is microenterprises such as single proprietorships, cooperatives, partnerships or corporations whose total assets are not more than P3 million.

Included in the priority sector are those processing low-risk food products, such as fats, oils and fat emulsions; processed fruits and vegetables; confectionery; cereal-based products; processed meat and meat products; bakery products; sweeteners; beverages; ready-to-eat savories; and salt, spices, sauces, salads and protein products.

Also a requirement is for these enterprises to be engaged in business in the NCR and able to submit the registration requirements of the DTI, DOH and FDA for the program.

An FDA license will allow MSMEs to sell their products domestically and abroad.

Agriculture/Commodities BusinessMirror

www.businessmirror.com.ph

PHL abaca production up 4.3% in Jan-May–PhilFida

PHILIPPINE Fiber Industry Development Authority officials, led by its Executive Director Kennedy T. Costales, inspect approved abaca bales in one of the grading and baling establishments in Legazpi City in this file photo. PHILFIDA PHOTO

By Jasper Emmanuel Y. Arcalas

T

@jearcalas

HE country’s abaca output in the first five months of the year rose by 4.3 percent to 32,725.28 metric tons (MT), from last year’s 31,363.67 MT, data from the Philippine Fiber Industry Development Authority (PhilFida) showed.

PhilFida Executive Director Kennedy T. Costales said the figures indicate that the Philippines is on track to surpass this year the re-

cord-high abaca output of 77,389.10 MT posted in 2008.

Costales said, however, that the 2019 output may not breach 80,000

MT, as the pace of growth slowed in May. He noted that the 4.3-percent year-on-year hike during the month was slower than the 9.2 percent recorded in April.

“The -4.9% difference is quite huge and based on production trends is something to ponder [on],” he said in a Facebook post.

In a separate interview, Costales told the BusinessMirror that many farmers did not harvest abaca due to the elections in May and Ramadan.

PhilFida data showed that the Bicol region remained the top producer of abaca with a fivemont h out put 12, 538. 51 M T, 4 0. 5 percent over l a st yea r ’s 8,921.4 MT. The double-digit growth in the

Bicol region was driven by the recovery of abaca plantation in Catanduanes, which suffered major losses in previous years due to typhoons.

Abaca output in Catanduanes alone reached 9,832.47 MT, 21 percent over the 8,125.46 MT it produced in the January-to-May period of last year, PhilFida data showed.

Costales said in April total abaca production this year could reach an all-time high of 80,000 MT if the production increase in the first quarter would be sustained throughout the year.

“If the present trend continues up to the end of December, we project to surpass and break our 2008 all-time-high abaca fiber production record over the past 25 years of 77,389.10 MT and also breach the 80,000-MT confidence level this year,” he said.

Abaca output in the Philippines, the world’s top producer of the natural fiber, rose by 6 percent year-onyear in 2018, as planters sought to meet rising global demand for the commodity. PhilFida data showed that abaca production last year reached 76,259.38 MT, 4,313.34 MT higher than the 71,964.04 MT recorded in 2017.

Costales said around 90 percent of the country’s abaca output are shipped as pulp, cordage, fibercraft and raw fiber.

Last year the PhilFida said it would need some P5.6 billion until 2022 to fund programs and interventions aimed at tripling the country’s abaca output to 221,238 MT. In the Philippine Abaca Roadmap 2018-2022, a copy of which was obtained by the BUSINESSMIRROR, the government said it intends to expand abaca plantations to 239,666 hectares from the current 180,302 hectares.

Fisherman discovers megamouth shark in Cagayan de Oro

C

AGAYAN DE ORO CITY—A megamouth shark that was unintentionally caught by a fisherman off Macabalan Bay Friday morning may have ventured into shallower waters to look for food, an officer from the Bureau of Fisheries and Aquatic Resources (BFAR) in Region 10 said.

BFAR-10 Fishing Regulation Officer Cheryl Magante said the megamouth shark, which weighs about 400 kilograms, was 3.048 meters long and a meter wide.

According to oceana.org, the megamouth shark is the smallest of the three species of filter-feeding sharks.

Its weight can reach up to 1,215 kg.

Magante said it was still alive when it got entangled in t he fishing net of a fisher man in Barangay Cugman.

“It was wounded and was still alive when it got trapped in the net,” Magante said, quoting the testimony of the fisherman.

But when BFA R-10 officia ls reached the area, residents already slaughtered the megamouth shark and sliced its flesh for food, she said.

She said based on Republic Act 8550, or the Philippine Fisheries Code of 1998, killing and slaughtering of megamouth sharks is prohibited, although she added they have not taken any legal action as they

have not identified who killed it and who ate its meat.

Maganted said they were only able to recover about half of the fish and its tail, which they buried in Barangay Kauswagan.

She said it was possible that the megamouth shark was following the trail of krills, one of its foods, when it got caught in the fish net.

Although megamouth sharks can usually be found in deep waters, some of them were seen in shallower waters in recent months.

“Earlier this year, a group of seven or eight megamouth sharks were sighted just near the shore of Cugman,” Magante said.

In the past years, megamouth sharks and whale sharks, locally known as tawiki, were sighted in Macajalar Bay and nearby municipal waters.

In the coastal municipality of Talisayan in Misamis Oriental, the townspeople used to celebrate the Tawiki Festival due to the abundance of whale sharks in the area.

The people of Talisayan call megamouth sharks as Tanguytanguy, a local mushroom, because of its soft body similar to that variety of fungus, said photographer and writer Elson Elizaga in his blog article about megamouth sharks. PNA

China could feel swine fever blow for next decade, Cargill says

I

T could be as long as a decade before China recovers from its outbreak of African swine fever, the deadly pig disease that’s decimating hog herds in the world’s largest pork consumer.

That’s according to Cargill Inc., one of the world’s largest agricultural commodity traders. The virus, which kills most infected pigs within 10 days, has already spread to most Chinese provinces. Official reports of a 24-percent decline for the nation’s herd are “conservative,” said John Fering, managing director for Cargill’s premix and nutrition business in the Asian nation.

China’s hog-herd losses are tough to estimate and could be anywhere between 20 percent and 70 percent, according to Rabobank.

“This is not a short-term event,” Fering said by phone. “This is going to take several years, if not a decade, to fully achieve structural recovery.”

The virus was first reported in Chi-

HOGS nearing market weight stand in pens at a farm in Walcott, Iowa. DANIEL ACKER/BLOOMBERG

na in August. Since then, there have been more than 140 outbreaks, forcing the nation to boost meat imports.

While the government has tightened animal-safety controls, the structure of the country’s hog industry, with

many backyard operations, has made it harder to stop the spread of disease.

China has boosted its pork imports, but demand has also increased for other meats in substitution. The nation’s consumers “aren’t discrimi-

nating between a disease that only affects the hog and what can be transmitted to humans,” turning them off from wanting to eat pork and reducing consumption, Mizuho said in a report last month.

“Substitution to alternative sources is one part of the solution to close the gap” between protein supply and demand, Fering said. Poultry is likely to be the top beneficiary, both in terms of China’s domestic market and overseas, he said. Eggs will come second, followed by beef and aquaculture.

The switch to poultry is helping to keep China’s demand for soybean meal from cratering, Fering said. Prices are also attractive relative to other vegetable proteins, helping keep soy meal in feed rations, he said.

“Given the severity of the disease challenge we’ve confronted, it hasn’t been quite as negative on soybean meal demand as we might’ve expected,” he said. Bloomberg News

Editor: Jennifer A. Ng • Monday, July 8, 2019 A5

Asia-Pacific nations must invest $120B a year in agri–ADB

By Cai U. Ordinario

T

@caiordinario

HE Philippines and the rest of Asia and the Pacific region must increase their investments in agriculture if they want to meet the Sustainable Development Goals (SDGs), the Asian Development Bank (ADB) said.

In an Asian Development Blog, ADB Agribusiness Investment Unit Head Martin Lemoine said the Asia and Pacific region needs to invest $120 billion a year until 2050 in farms to meet the growing demand for food.

Investing in agriculture will allow countries to meet at least six of the 17 SDGs. These six goals include eliminating poverty; achieving zero hunger; gender equality; decent work; responsible consumption and production; and climate action.

“Is there a silver bullet to help countries meet all their development challenges? Unfortunately, no,” Lemoine said.

“But there is one sector which, despite its huge size and importance, struggles for recognition of its potential to make serious inroads into nearly all the SDGs. Agriculture still accounts for more than half the work force in most developing countries. And yet, still there isn’t enough food for everyone,” he added.

Lemoine said, however, most of these investments must come from the private sector through agribusinesses. The agribusiness value chain, he added, includes agriculture, manufacturing and service companies.

Investing in these firms will address decades of underdevelopment and fragmentation in agriculture, which has kept millions of smallholder farmers poor in the Asia and the Pacific region.

Lemoine said that of the world’s 500 million smallholder farmers, around 400 million are in Asia. Most of them lack financial support and access to high-technology techniques and equipment.

“Half of the agricultural land in Asia is degraded mostly due to overuse of chemical fertilizers and outdated farming practices.

Moreover, the region’s developing countries are likely to face the biggest reductions in agricultural potential in the world due to climate change,” Lemoine said.

To boost agriculture investments, Lemoine said agribusinesses need access to ecologically friendly

compound fertilizers; use of drip irrigation to replace the inefficient flood irrigation; and proper handling of livestock waste, which produces high amounts of methane.

Lemoine added there are now companies in China and India that promote ecologically friendly compound fertilizers; and drip irrigation has proven effective based on ADB’s experience in its vegetable and flower investments in Armenia, Indonesia, China and Vietnam.

In terms of waste, Lemoine said there is a need for more companies that recycle livestock waste into organic fertilizer and biogas to produce clean energy. ADB, he said, is working with livestock companies in the region to promote better animal health and welfare standards.

“To help achieve SDGs, agribusiness needs sustainable levels of investment. Long-term investment is also an effective way to bring stakeholders together, because it creates trust. When farmers see that an agribusiness has invested millions of dollars in a processing plant near their fields, they know that the investors are there for the long haul,” Lemoine said.

“Farmers will then themselves invest and governments will also be more willing to support. Consumers are also better off when quality food is produced locally,” he added.

Last month the Voluntary National Review (VNR), the Philippine Institute for Development Studies (PIDS) and the National Economic and Development Authority (Neda) showed that the country’s chances of meeting the education and climate change-related SDGs are “promising.”

PIDS Senior Research Fellow Jose Ramon Albert told the BusinessMirror that meeting the education goal was promising, as well as battling climate change given the country’s disaster plans. However, there was mixed progress in terms of meeting the goals on human rights.

Albert said efforts to monitor and meet the SDGs are “complicated.” Based on the VNR, the midterm update of the Philippine Development Plan could see the addition of more targets in the SDGs that the country will have to meet by 2030.

This is because of the addition and changes in the indicators that have to be met nationally in relation to the global targets. Not all of the global SDGs will have to be met given that some targets are not applicable to some countries.

The World

A6 Monday, July 8, 2019 • Editor: Angel R. Calso

BusinessMirror

www.businessmirror.com.ph

‘Iran ready for higher uranium enrichment’

T

EHRAN, Iran—A top aide to Iran’s supreme leader says the Islamic Republic is ready to enrich uranium beyond the level set by Tehran’s 2015 nuclear deal, just ahead of a deadline it set on Sunday for Europe to offer new terms to the accord.

A video message by Ali Akbar Velayati included him saying that “Americans directly and Europeans indirectly violated the deal,” part of Tehran’s hardening tone with Europe. European parties to the deal have yet to offer a way for Iran to avoid the sweeping economic sanctions imposed by President Donald J. Trump since he pulled the US out of the accord a year ago, especially those targeting its crucial oil sales.

All this comes as America has rushed thousands of troops, an aircraft carrier, nuclear-capable B-52 bombers and advanced fighter jets to the Mideast. Mysterious oil tanker attacks near the Strait of Hormuz, attacks by Iranian-backed rebels in Yemen on Saudi Arabia and Iran shooting down a US military drone have raised fears of a wider conflict engulfing the region.

In the video, available on Saturday on a web site for Supreme Leader

Ayatollah Ali Khamenei, Velayati said that increasing enrichment closer to weapons-grade levels was “unanimously agreed upon by every component of the establishment.”

“We will show reaction exponentially as much as they violate it. We reduce our commitments as much as they reduce it,” said Velayati, Khamenei’s adviser on international affairs.

“If they go back to fulfilling their commitments, we will do so, as well.”

Europe is struggling to salvage the 2015 accord against the odds.

French President Emmanuel Macron spoke for more than an hour on Saturday with Iranian President Hassan Rouhani, and said they are trying to find a way by July 15 to resume international dialogue with Iran.

Under the atomic accord, Iran agreed to enrich uranium to no more than 3.67 percent, which is enough for peaceful pursuits but is far below weapons-grade levels

IN this August 18, 2013, file photo, Ali Akbar Velayati, a top adviser to Iran’s supreme leader Ayatollah Ali Khamenei, gives an interview to The Associated Press at his office in Tehran, Iran. Velayati said in a video online on Saturday, July 6, 2019, that the Islamic Republic is ready to begin enriching uranium beyond the level set by Tehran’s 2015 nuclear deal with world powers. AP

of 90 percent. Iran denies it seeks nuclear weapons, but the nuclear deal sought to prevent that as a possibility by limiting enrichment and Iran’s stockpile of uranium to

300 kilograms (661 pounds).

On Monday, Iran and United Nations inspectors acknowledged it had broken the stockpile limit.

Combining that with increasing its enrichment levels narrows the one-year window experts believe Iran would need to have enough material to build a nuclear weapon, if it chose to do so.

“This would be a very worrisome step that could substantially shorten the time Iran would need to produce the material needed for

nuclear weapons,” said Miles Pomper, a senior fellow at the Middlebury Institute of International Studies’ James Marin Center for Nonproliferation Studies. “Both Iran and the Trump administration should be looking for ways to de-escalate the crisis, rather than exacerbate it.” It remains unclear to what level Iran will choose to up its uranium enrichment. However, Velayati in his remarks made reference to 5 percent enrichment.

“For Bushehr nuclear reactor we

need 5 percent of enrichment and it is a completely peaceful goal,” he said. Bushehr, Iran’s only nuclear power plant, is now running on imported fuel from Russia that’s closely monitored by the UN International Atomic Energy Agency (IAEA).

Iran stopped producing uranium enriched above 5 percent in January 2014 amid negotiations for the nuclear deal.

Outside of Bushehr, higher-enriched uranium could be used for naval ships and submarines, something Iran has said it would want to pursue. Iran’s nuclear chief Ali Akbar Salehi said in 2016 that nuclear power plants for naval vessels need uranium enriched to at least 5 percent.

The US said its ambassador to international organizations in Vienna, Jackie Wolcott, had requested a special meeting of the IAEA to discuss its “latest, concerning report on the Iran regime’s nuclear program.” That meeting is planned for Wednesday.

Iran’s diplomatic mission to Vienna, where the IAEA is based, called the US move “a sad irony” as America had unilaterally withdrawn from the deal a year ago.

Meanwhile on Saturday, the hardline Kayhan newspaper demanded revenge over the seizure of an Iranian oil tanker off Gibraltar that had been heading to Syria.

Authorities in Gibraltar said they seized the Grace 1, believed to be carrying over 2 million barrels of oil, over European Union sanctions on Syria—though Spain said the seizure came at the request of the US. “Seizure of UK oil tanker is the only way to confront pirates of the Queen,” Kayhan blared in a frontpage headline, echoing a suggestion on Friday by a former Revolutionary Guard chief. AP

Greece holds first parliamentary polls after decade of financial crisis

A

THENS, Greece—Greeks were voting on Sunday in the first parliamentary election since their country emerged from three successive international bailouts still struggling with a crippling nearly decade-long financial crisis.

Opinion polls have suggested Greeks are set to defy the recent European trend of increasing support for populist parties, with conservative opposition party leader Kyriakos Mitsotakis a clear favorite to win.

Prime Minister Alexis Tsipras called the vote three months earlier than originally planned after his left-wing Syriza party suffered a stinging defeat in European and local elections in May and early June.

Tsipras, 44, hopes to overturn a sizeable gap in opinion polls running up to Sunday’s vote. He has increasingly been appealing to the middle class, which has been struggling under a heavy tax burden, much of it imposed by his government.

“It’s a crucial battle, we fight it with optimism, we fight it with determination until the last minute,” Tsipras said after casting his ballot in central Athens in the morning.

“So that the sacrifices and efforts of our nation do not go to waste, so the course of our country forward is not interrupted.”

Tsipras appealed to young people to turn up at the ballot boxes and “not leave the crucial decision for their lives and their future to others.” The voting age has been extended to 16 for the first time in national elections, provided the voter turns 17 within 2019.

But Mitsotakis, the 51-year-old son of a former prime minister and brother of a former foreign minister, has managed to build a sizeable lead in opinion polls that he has held over the past three years.

He pledges to make Greece more business-friendly, attract foreign investment, modernize the country’s notorious bureaucracy and cut taxes, and has fought to shed the image of family privilege.

“Today voters take the decision for their future in their hands,” Mitsotakis said after voting. “I am sure that tomorrow, a better day dawns for our nation.”

Sunday’s vote comes as the country gradually emerges from a brutal financial crisis that saw unemployment and poverty levels skyrocket, and Greece’s economy slashed by a quarter. Greece was dependent for survival until last summer on international bailouts, and had to impose deep reforms, including massive spending cuts and tax hikes, to qualify for the rescue loans.

Tsipras led his small Coalition of the Radical Left, or Syriza, party to power in 2015 on promises to repeal the austerity measures of Greece’s first two bailouts. But after months of tumultuous negotiations with international creditors that saw Greece nearly crash out of the European Union’s joint currency, he was forced to change tack, signing up to a third bailout and imposing the accompanying spending cuts and tax hikes.

He also cemented a deal with neighboring North Macedonia under which that country changed its name from plain “Macedonia.”

Although praised by Western allies, the deal angered many Greeks, who consider use of the term harbors expansionist aims on the Greek province of the same name.

While Mitsotakis is the clear favorite to win, the number of smaller parties making it into parliament could determine whether he has enough seats in the 300-member body to form a government. He would need at least 151 to be able

to govern without forming a coalition with another party.

Those casting ballots early in the morning were mostly elderly, and some expressed dissatisfaction with the overall political situation.

“Unfortunately, there is no hope.

There is no person who fights for the country, only for their glory,” said 90-year-old voter Torkom Asatourgian as he cast his ballot in central Athens.

Another early voter, 82-year-old Eleni Alexopoulou-Depou, said she was supporting one of the myriad small parties.

“I don’t care which individuals are elected. I’m not asking for something,” she said. “I just want a voice that can propose some positive things, even though it won’t govern.”

Numerous smaller parties are vying to beat the 3 percent threshold to enter parliament.

They include a new Europe-wide anti-austerity party, MeRA25, founded by Tsipras’s first finance minister, the controversial Yanis Varoufakis, who many blame for the dramatic failure of negotiations with Greece’s creditors in the first few months of Tsipras’s government.

Varoufakis very narrowly missed making the 3 percent threshold in May’s European elections.

Another is Kyriakos Velopoulos, a far-right populist TV pundit who heads the Greek Solution party. Velopoulos is widely known for his TV appearances, which he has used to make various sales, including of what he claims are letters written

by Jesus Christ.

Greece’s extreme right-wing Golden Dawn party, founded by neo-Nazi supporters more than three decades ago and which rose to be the third-largest in parliament during the financial crisis, saw a major drop in support in the last European elections. AP

The World BusinessMirror

www.businessmirror.com.ph

Editor: Angel R. Calso • Monday, July 8, 2019 A7

Germany faces pressure to spend as economic risks grow in Europe

T

RADE tensions and uncertainty surrounding Brexit are raising economic risks for the euro area, prompting France to urge Germany to loosen its purse strings to support growth.

“It would be irresponsible not to examine the need for new investments in the euro zone,” French Finance Minister Bruno Le Maire said on Saturday at an annual economic conference in Aix-enProvence, in southern France.

Increased spending is under discussion between France and

Germany, and is one of the biggest points of divergence between the neighbors, he added.

“Now is the time to invest in innovation and infrastructure, not in social spending,” he said, citing the negative impact of trade tensions between China and the United States on eco-

nomic growth, and accommodating monetary policy and negative interest rates that could ease the cost of spending.

A slump in German factory orders in May is the latest sign that global trade uncertainty is turning Europe’s temporary slowdown into a more serious downturn.

The region’s biggest economy reported huge declines in export orders and investment goods after a survey showed factory activity shrank for a sixth month in June. The continued gloom is increasing concern at the European Central Bank (ECB) and a growing number of economists are predicting it will add more monetary stimulus as soon as this month.

Risks are such that the ECB may have to take action even before newly nominated Head Christine Lagarde takes over in October, Societe Generale SA Chairman Lorenzo Bini Smaghi said in an interview. Any action would also depend on the course taken by the Federal Reserve later this month.

Brexit uncertainty

“WE have all the factors of uncertainty,” the economist and former ECB executive board member said at the Aix-en-Provence conference, also citing uncertainty surrounding the UK’s plan to leave the European Union later this year. “At some point the slowdown may reach bottom, and we want to

have the monetary instruments in place to avoid that this becomes a recession.”

Despite a slowing economy that could arguably benefit from a fiscal boost, Germany is running a large budget surplus and reducing a relatively low debt burden, which stands at close to 60 percent of gross domestic product. France’s was just under 100 percent in the first quarter.

“Germany is among countries that have room to increase their debt load, along with the Netherlands, while others, including France and Italy, need to be on a path to reduce it despite low interest rates,” said Odile RenaudBasso, the head of the French treasury. “A debt load approaching 100

percent of gross domestic product doesn’t have an impact when markets are confident but it is politically symbolic and it’s a fragility factor in the longer term.”

Le Maire said he planned to broach the topic with German Christian Democratic Union party chief Annegret Kramp-Karrenbauer, who took over from Chancellor Angela Merkel and was also in Aixen-Provence.

“Germany’s approach needs to change, and go toward more debt and investment, as well as respecting EU rules on debt,” Henrik Enderlein, professor of political economy at the Hertie School of governance in Berlin, said at the conference. “It’s currently got margins of maneuver.” Bloomberg News

Indonesia warns rich countries Oil posts weekly loss as jobs surge against exporting toxic waste in US can’t banish economic worry

I

NDONESIA said it will crack down on trash imported from the world’s richest countries after closer inspections showed it’s increasingly the recipient of toxic waste materials.

Authorities at ports have boosted checks after a random inspection in May led to the discovery of more than 80 containers containing illegal waste from the United States, Australia and Europe. One of Australia’s richest men has been dragged into the furor after a media report alleged a company he owned was responsible for a shipment that contained materials considered toxic under Indonesian law.

“This is a serious problem,” Deni Surjantoro, deputy director of communications at Indonesia’s customs department, said in an interview. Indonesian authorities are now planning tougher measures against companies caught importing illegal waste, and will announce them as early as this week, he said. The government will also partially identify companies involved in the illegal trade, Surjantoro said.

While toxic or contaminated materials have been found in containers from the US, Germany, Hong Kong and Australia, the US had been identified as the worst offender, Surjantoro said.

China syndrome

SURJANTORO said the problem began after a change in policy in China, which

had been the world’s leading importer of recyclables. China last year began to restrict, and in some cases ban imports on environmental grounds.

“China’s policy eventually led us to tighten our monitoring process, which eventually led us to identify containers that contain contaminated waste,” he said.

The Sydney Morning Herald and The Age newspapers reported last week that Visy Recycling, a company owned by billionaire Anthony Pratt, was the exporter of a container that had been impounded in the Indonesian port of Batam. The shipment reportedly contained plastic waste, which is regarded as toxic in Indonesia. Visy didn’t reply to requests for comments, according to the newspapers, and didn’t immediately respond to a query by Bloomberg sent via its web site.

Importers of waste have 90 days to return the shipments back to the countries of origin from the day of ar r iva l, Sur jantoro said. Failure to comply will result in licenses being revoked and the importers will face investigations, he said.

Last month, Malaysia announced it was sending more than 3,000 tons of scrap plastics back to countries, including Australia, Canada, Japan, Saudi Arabia, and China. The Philippines took similar action in June, returning dozens of containers of waste deemed illegal back to Canada. Bloomberg News

O

IL posted its first weekly loss since mid-June, as a forecast-topping US employment report wasn’t enough to offset the economic worries dogging the market.

Futures in New York closed down 1.6 percent for the week, despite eking out an increase on Friday after the government said payrolls climbed by 224,000 in June.

The ultimate fallout from the report was unclear as investors fretted that labormarket strength would decrease the odds of a Federal Reserve rate cut. The dollar surged, adding to pressure on commodities sold in the US currency.

German factory orders on Friday added to a spate of sluggish manufacturing data from around the globe. That overshadowed this week’s decision by Organization of the Petroleum Exporting Countries (Opec) and its allies to extend supply curbs and the seizure of a tanker carrying Iranian crude by British Special Forces on Thursday.

“From a demand standpoint, the question is, will the Fed save the day or are we too far gone?” said Tyler Richey, coeditor at Sevens Report Research in Florida. “What economic data begins to show in the next few weeks and months is going to be the most important thing to watch.”

Oil slumped on Tuesday in its worst decline following a meeting by the Opec in four years. While the cartel is struggling to boost prices, its voluntary pro-

2 runners gored racing with bulls at Pamplona’s festival

P

REVELERS run next to fighting bulls during the running of the bulls at the San Fermin Festival, in Pamplona, northern Spain, on Sunday, July 7, 2019. Revelers from around the world flock to Pamplona every year to take part in the eight days of the running of the bulls. AP PHOTO/ALVARO BARRIENTOS

AMPLONA, Spain—Spanish officials say the opening bull run of this year’s San Fermin festival in the northern city of Pamplona has left at least five people injured, including two who were gored by bulls.

Red Cross Spokesman José Aldaba says the most seriously injured were treated on Sunday at the main regional hospital following the race, which lasted two minutes and 41 seconds.

The six bulls, accompanied by tame bullocks, ran together in a pack for most of the 850-meter (930-yard) course to the city’s bullring. One of them stumbled toward the end, causing panic and, at least, one goring when it charged at some racers.

The nine-day San Fermin fiesta, where the bulls are run every morning and killed in afternoon bullfights, draws around 1 million visitors annually. AP

duction limits are also leaving the door open for US shale producers to grab more market share, according to Goldman Sachs Group Inc. American crude output resumed gains last week.

West Texas Intermediate oil for August delivery gained 17 cents, or 0.3 percent, on the day, closing at $57.51 a barrel on the New York Mercantile Exchange. There was no settlement on Thursday due to a

holiday in the US, so all transactions were booked on Friday.

Brent for September rose 1.5 percent to $64.23 a barrel on the ICE Futures Europe Exchange. It was down 3.5 percent for the week.

Prices have also lost support from a tight physical crude market, which has pushed up global refining margins in the last few days after a lackluster May and June. Bloomberg News

Green Monday BusinessMirror

A8 Monday, July 8, 2019

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

Indigenous-rights approach offers solution to climate-change crisis

T

he Global Landscapes Forum (GLF) held in Bonn, Germany, aimed to rally behind a new approach to achieving a future that is more inclusive and sustainable than the present—through the establishment of secure and proper rights for all.

The Global Landscapes Forum held in Bonn, Germany, focused on how to give land rights the visibility needed to showcase that a rights approach, particularly when it comes to indigenous people, is a solution to the climate-change crisis. Pilar Valbuena/GLF

On June 22 and 23, experts, political leaders, nongovernment organizations, and indigenous peoples and communities gathered to deliberate on a methodology that emphasizes on rights for indigenous peoples and local communities in the management and perseveration of landscapes.

The forum took place alongside the United Nations Framework Convention on Climate Change Bonn Climate Change Conference.

The forum focused on giving land rights the visibility needed to showcase that a rights approach is a solution to the climate-change crisis, and to develop a “gold standard” for rights.

Indigenous peoples, local communities, women and youth, are believed to be the world’s most important environment stewards but they are also among the most threatened and criminalized groups with little access to rights.

“We’re defending the world, for every single one of us,” said Geovaldis Gonzalez Jimenez, an indigenous peasant leader from Montes de María, Colombia.

But industries—such as fossil fuels, large-scale agriculture, mining and others—are not only endangering landscapes but also the lives of the people therein.

Already this year, Gonzalez said, his region witnessed 135 murders, adding that the day

before the start of the GLF a local leader was killed in front of a nine-year-old boy.

According to the United Nations, the land belonging to the 350 million indigenous peoples across the globe is one of the most powerful shields against climate change as it holds 80 percent of the world’s biodiversity and sequesters nearly 300 billion metric tons of carbon.

It is for this reason that amid the urgency to meet Sustainable Development Goals under pressure from the climate threat, dialogues about the global future have begun to wake up to the fact that indigenous peoples’ relationships with the natural world are not only crucial to preserve for their own sakes, but for everyone’s.

The drafting of the document of rights was led by Indigenous Peoples Major Group (IPMG) for Sustainable Development, and the Rights and Resources Initiative in the months leading up to the GLF. Wider discussions and workshops over the two days served as a consultation on the draft (which is expected to be finalized by the end of the year) as a concrete guide for organizations, institutions, governments and the private sector on how to apply different principles of rights. This includes the rights to free, prior and informed

consent, gender equality, respect to cultural heritage and education.

UN Special Rapporteur on the Rights of Indigenous Peoples Victoria Tauli-Corpuz, a Filipino, said lands managed by indigenous peoples with secure rights have lower deforestation rates, higher biodiversity levels and higher carbon storage than lands in governmentprotected areas.

But Diel Mochire Mwenge, who leads the Initiative Program for the Development of the Pygme in the Democratic Republic of Congo, one of the largest indigenous forest communities in Central Africa, said he has witnessed more than 1 million people being evicted from the national parkland where they have long lived.

He explained that they had not been given benefits from the ecotourism industries brought in to replace them and were left struggling to find new income sources.

“Our identity is being threatened , a nd we need to avoid being completely eradicated,” Mwenge said.

In Jharkhand, India, activist Gladson Dungdung, whose parents were murdered in 1990 for attending a court case over a local land dispute, said an amendment to India’s Forest Rights Act currently being reviewed by the Supreme Court could see 7.5 million indigenous peoples evicted from their native forest landscapes. The act can impact further on 90 million people who depend on these forests’ resources for their survival, he said.

The amendment, Dungdung said, would also give absolute power to the national forest guard; if a guard were to see someone using the forest for hunting or timber collection, they could legally shoot the person on-sight.

“Indigenous peoples are right on the frontline of the very real and dangerous fight for the world’s forests,” said actor and indigenous rights activist Alec Baldwin in a video address.

“Granted that indigenous peoples are the superheroes of the environmental movement,” Jennifer Morris, president of Conservation International, wondered why they are not heard until they become victims. “Why do we not hear about these leaders until they’ve become martyrs for this cause?”

The examples of intimidation, criminalization, eviction and hardship shared throughout the first day clearly showcased what indigenous peoples and local communities go through to preserve the forests, also called as “lungs of the Earth.”

The organizers, resource persons and participants of the session on youth and gender inclusion in forestry that was convened by Searca at the Asia Pacific Forestry Week 2019 in Incheon, South Korea, from June 17 to 21.

Searca leads talk on youth, gender inclusion in forestry

I

ncluding the youth, women and indigenous communities to manage forest and natural resources result in benefits that include improvements in livelihood and food security.

This was discussed at the session on youth and gender inclusion in forestry that was organized

by Southeast Asian Regional Center for Graduate Study and Research in Agriculture (Searca) at the Asia Pacific Forestry Week 2019 (APFW 2019) in Incheon, South Korea, from June 17 to 21.

The APFW 2019 was jointly organized and hosted by the Korea Forest Service and the Food and Agriculture Organization (FAO) of the United Nations.

APFW 2019‘s overall theme, “Forests for peace and well-being,” evoked the need to integrate forestry into the context of environment, society and sustainable development, wherein the economic and sociocultural dimensions are taken into consideration.

Searca’s session on youth and gender inclusion in forestry brought together voices of youth and women champions who have led the way to meaningful participation toward sustainable forest management (SFM).

Searca Director Glenn B. Gregorio said the session aimed to identify gaps and interventions toward streamlining youth and women’s

participation in forestry decision-making and their implications for SFM. In his overview of the session, Dr. Pedcris M. Orencio, Searca program head for Research and Development, emphasized that the experiences from countries in the Asia-Pacific region show the transformative impacts of empowering men, women, youth and indigenous communities to manage forest and natural resources, resulting in substantial benefits, such as capital formation and improvements in livelihood and food security.

Searca drew in Bangkok-based Center for People and Forests (RECOFTC) to discuss “Forests, power and exclusion: What it takes to include

The rights approach, according to conveners of the GLF, aims to strengthen respect, recognition and protection of the rights of indigenous peoples and local communities as stewards and bearers of solutions to landscape restoration, conservation and sustainable use.

It also aims to end persecution of land and environment defenders; build partnerships to enhance engagement and support for rights-based approaches to sustainable landscapes across scales and sectors; and scale up efforts to legally recognize and secure collective land and resource rights across landscapes.

“By implementing a gold standard, we can both uphold and protect human rights and develop conservation, restoration and sustainable development initiatives that embrace the key role Indigenous peoples and local communities are already playing to protect our planet,” said Joan Carling, a Filipino, co-convener of IPMG. IPMG recognizes that indigenous and local communities are bearers of rights and solutions to common challenges.

“This will enable the partnership that we need to pave the way for a more sustainable, equitable and just future,” Carling added.

Center for International Forestry Research Director General Robert Nasi said when rights of local communities and indigenous peoples are recognized, there are significant benefits for the fight against climate change and environmental degradation.

“Whoever controls the rights over these landscapes has a very important part to play in fighting climate change,” he said.

In the climate and development arenas, the most current a l a r m b e i n g sou nde d i s for rights—securing the land rights and freedoms of indigenous peoples, local communities and the marginalized members.

How can these custodians of a quarter of the world’s terrestrial surface be expected to care for their traditional lands if the lands don’t, in fact, belong to them? Or, worse, if they’re criminalized and endangered for doing so?

The basic principles of a “gold standard” already exist, such as free, prior and informed consent, according to Alain Frechette of the Rights and Resources Initiative.

What has been lacking, he said, is the application of principles that could be boosted by high-level statements that could “spur a race to the top.” Friday Phiri/IPS women and youth in forest landscapes,” as well as Thailand’s International Forestry Students’ Association (IFSA) to talk about “Youth Inclusion in Decision Making for Sustainable Forest Management.”

Dr. Kalpana Giri of RECOFTC highlighted that representation, resources and rights are the key entry-points for inclusion.

On the other hand, Oindrila Basu, IFSA representative, underscored that youth inclusion in decision-making not only recognizes and encourages their voice and action, but also instills in them a sense of responsibility to the cause of the planet and accountability toward the decisions taken.

Country experiences of Nepal and Myanmar on the role of men and women in forest decisionmaking were also presented by representatives of the Federation of Community Forestry Users in Nepal and the assistant director of the Forest Research Institute (FRI) of Myanmar.

Dr. Ei Ei Swe Hlaing of FRI shared findings of the assessment of non-timber forest products (NTFPs) in mountainous regions of Myanmar toward community forest development, a project funded by the Searca-managed Asean Working Group Strategic Response Fund.

She highlighted that women, young and old, are empowered by the income they get from NTFPs which helps pay for household expenses, minimal as it is.

A duck and its chicks swim on the Vrbas River, near Banja Luka, Bosnia, on July 2. Authorities have warned of extremely hot temperatures in Serbia and the rest of the Balkans as a heat wave that has hit western Europe moves toward east of the continent. AP/Radivoje Pavicic

June was Europe’s hottest on record as climate change bites

B

ELGRADE, Serbia—As Europe’s heat wave shifted eastward last week, delivering scorching temperatures to Serbia and the rest of the Balkans, new data showed that last month set a new June record for the continent.

Measurements collected by the European Union’s Copernicus satellite program revealed Europe’s average temperature in June was more than 2 degrees Celsius higher than during the 30year reference period from 1981 to 2010.

The intense heat toward the end of June also beat the previous Europe-wide record for the month set in 1999 by 1 degree Celsius.

France, Switzerland, Austria, Germany, the Czech Republic and Spain all registered new national highs for June, with the southern French town of Gallargues-le-Montueux recording a blistering 45.9 Celsius (114.6 Fahrenheit) on Friday.

In a separate study, an international group of experts who examine the possible link between extreme weather events and climate change warned that Europe faces more frequent and intense heat waves.

After analyzing temperatures in the French city of Toulouse between June 26 and 28 the World Weather Attribution (WWA) group concluded that every heat wave occurring in Europe today “is made more likely and more intense by human-induced climate change.”

They found the ex treme conditions measured during that three-day period, when a blast of hot air swept up from the Sahara Desert, are at least five times more likely now than they were around 1900, before greenhouse-gas emissions from industry had a major effect on the atmosphere.

Geert Jan van Oldenborgh, a researcher

at the Dutch meteorological institute KNMI and one of the report’s authors, said factors other than climate change might be further affecting the frequency and extent of extreme temperature events.

The WWA study hasn’t been peer-reviewed yet, but the group uses methods that are widely considered valid in the scientific community.

Martin Hoerling, a research meteorologist at the US National Oceanic and Atmospheric Administration who wasn’t involved in the study, said its findings were consistent with other measurements showing European summers getting hotter since the start of the 20th century.

“Hotter European summers are their climate new normal, though that ‘normal’ will itself change further,” he said.

With the heat wave moving toward eastern Europe, temperatures soared to 39 degrees Celsius (102.2 Fahrenheit) in Serbia, though showers in the evening could provide some relief.

Cisterns with drinking water have been parked in Belgrade parks with doctors warning elderly to stay indoors.

The surge in temperatures comes after weeks of unusually severe thunderstorms in parts of Serbia, Bulgaria, Romania, Bosnia and Croatia that have triggered floods and extreme humidity.

In Germany, thousands of firefighters, soldiers and civil defense personnel were battling a large wildfire on Tuesday at a former military exercise area in northern Germany after weeks of dry weather.

Officials said that the blaze in Luebtheen, about 170 kilometers (106 miles) northwest of Berlin, is the biggest in the history of Mecklenburg Western Pomerania state. AP

Malampaya Foundation Inc., Western Philippines University, University of the Philippines Marine Science Institute, Palawan State University, Dos Palmas Resort and Spa and Palawan Council for Sustainable Development lead in the special project of helping the Palawan giant clams increase in numbers.

Malampaya Foundation leads in spawning of native, giant clam

T

he first-ever spawning on site of the Palawan native species of the biggest giant clam, in order to help increase its declining population, was held recently at Western Philippines University (WPU) Hatchery in Binduyan, Puerto Princesa City.

The University of the Philippines Marine Science Institute (UPMSI), forerunner of giant clam conservation in the Philippines, supervised the spawning activity, where about 9.5 million eggs were fertilized from native giant clams located at Dos Palmas Resort and Spa in Palawan.

The Malampaya Foundation Inc. (MFI) and partners led the activity.

Dr. Lota A. Creencia of WPU College of Fisheries and Aquatic Sciences said, “Tridacna gigas [giant clams] is hard to propagate because the population is few. We need to really go to the brood stock [source] to collect eggs and sperms, compared to other species of clams which numbers can still afford to be brought into laboratories.”

Once matured, the native giant clams will be deployed to MFI’s marine protected areas in the north of Palawan.

Sherry Lyn Sayco, researcher at UPMSI, said in mixed Filipino and English, “Giant clams are important because they have many ecological significance, habitat and food for some of the marine animals. It also benefits people because it helps increase fish density.”

Meanwhile, the giant clams, with a known 0.01 percent survival rate, is one of the most endangered

clam species and was even declared extinct in the Philippines in the 1980s.

In order to bring it back, UPMSI, under the leadership of National Scientist Dr. Ed Gomez, took specimen from the Pacific Islands and grew it in the country.

Surprisingly, it was found that the Philippinenative species of the giant clams still exists in Palawan. Gomez himself confirmed this during his visit at the spawning site in Dos Palmas.

Creencia said there were reports that prove the giant clams found in Palawan are native “because the sizes found here in Honda Bay are really bigger [compared to those spawned from Pacific Islands], but in order to confirm this we have to conduct a molecular study.”

The spawning activity was in line with MFI’s “String-of-Pearls of Project” that began last year. It successfully increased the population of two other species of giant clams, namely Tridacna squamosa and Hippopus hippopus. They will be deployed to effectively manage marine protected areas (MPAs) in north Palawan communities.

MFI has been partnering with communities, local governments and agencies in Palawan, Oriental Mindoro and Batangas to establish, expand and setup proper management and protection mechanisms for MPAs since 2013.

MFI’s String of Pearls Project is in partnership with WPU, Palawan State University, Palawan Council for Sustainable Development, and Dos Palmas Resort and Spa.

Biodiversity Monday BusinessMirror

Asean Champions of Biodiversity Media Category 2014

Monday, July 8, 2019

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

A9

Demystifying the vanishing Palawan pangolin Story by Jonathan L. Mayuga

W

@jonlmayuga

ith great enthusiasm, Shiela, Elvie and JR, young research assistants of the Katala Foundation Inc., have been braving the wilderness of Southern Palawan for months in search of the elusive pangolins.

Their mission: to know more about the pangolins before they become extinct.

Carrying nothing but backpack loaded with extra shirts, a towel, water, food, a notebook, pen and the all-important globalpositioning satellite device and a satellite phone, plus camera traps, they trek unfamiliar terrains, climb trees, crawl under thick shrubs and tall grasses, cross rivers and streams, night or day, looking for signs—scratch mark, tracks or footprints, even feces left behind by the little-known scaly anteater or pangolin (Manis culionensis de Elera) that can only be found in Palawan.

The Philippines, an archipelago comprising of 7,641 islands and islets, is one of the megadiverse countries in the world. However, it is also one of the so-called biodiversity hot spots because of the rapid rate of biodiversity loss.

Experts say because of biodiversity loss that’s aggravated by illegal wildlife trade, highly vulnerable endemic species the Philippines is known for may have become extinct even before their discovery.

Previously thought to be the Malayan or Sunda pangolin (M. javanica), the Palawan pangolin remains a mystery even to the indigenous people of Palawan, considered the country’s last ecological frontier. While there is no empirical data that would suggest the accuracy of their claim, as far as the upland communities are concerned, the Palawan pangolins are vanishing.

Commissioned to do research on the Palawan pangolins by the Protect Wildlife Project that is funded by United States Agency for International Development (USAID) in Southern Palawan, conservation efforts are focused on the Palawan pangolins because of the threat of illegal wildlife trade, with the hope of saving the critically endangered species before it becomes extinct.

The Katala Foundation Inc. is expected to complete the research and come up with policy

veys in 12 200-hectare plots in the wilderness of the VictoriaAnepahan Mountain Range, entailing actual search, recording and measurement of pangolins in the wild and observing their forest habitats.

Initial results of the study revealed that from September to December 2018, the team recorded 14 pangolins—two of which are pregnant—in a total surveyed area of 800 hectares.

The ground surveys showed that slash-and-burn farming, c ha rcoa l ma k ing a nd t imber poac h i ng cont i nue i n forest habitats where the pangolins are recorded.

A researcher of Katala Foundation Inc. shows pangolin. The project was commissioned by the USAID-funded Protect Wildlife Project.

Katala Foundation/USAIDProtect Wildlife Project

‘Most illegally traded animal’ Palawan pangolin Katala Foundation/USAID-Protect Wildlife Project

Nelson Devanadera, executive director of the Palawan Council for Sustainable Development. Jonathan L. Mayuga

recommendation to save the vanishing Palawan pangolin by the end of the year.

Mysterious mammal

In funding the “Study on the Indicative Presence and Abundance of the Palawan Pangolin in Southern-Central Palawan,” Protect Wildlife Project Communications Manager Lawrence San Diego said the Palawan pangolin is the only pangolin species endemic to a single country.

“The Philippine pangolin is a priority species for conservation of the Protect Wildlife Project,” he said.

This is because the Palawan pangolin is one of the least studied species of pangolin and there is very little scientific information available to properly manage its remaining population.

The study aims to determine the mammal’s rate of exploitation and abundance in the wild to come up with policy recommendation and plan of action that will help protect and conserve this vanishing species.

So far, the study is focused on Victor ia-A nepahan Mountain Range, which has a total land area of 510,520.66 hectares. The Victor ia-A nepahan Mountain Range straddles Puerto Princesa City, Aborlan, Narra and Quezon towns. The area has been identified as an important habitat for

biodiversity and endemic Palawan species, such as the pangolin.

The Palawan Council for Sustainable Development (PCSD) and the Palawan State University are also embarking on research to know more about the diet of the Palawan pangolin, to aid in managing its population and, hopefully, come up with ways to boost its population on the island.

Nelson Devanadera, PCSD executive director, said samples of pangolin’s feces will also be sent to Australia for laboratory testing.

He said knowing the diet and nutrients of the pangolin’s—basically, ants and termites—will help explain why it is now the most sought-after animal because of the belief that its meat and scale have medicinal value, hence, is now being hunted to extinction.

More important, he said, knowing what plant species the ants and termites eat, must be identified in order to protect and conserve them from various threats, and if possible, propagate them in other areas, to help protect and conserve the pangolin.

In the meantime, he said PCSD is working closely with various law-enforcement agencies to prevent illegal wildlife trade, not only of pangolin but other threatened species of Palawan.

What locals know

While very little is known about the species, the Palawan State University has held interviews and focus group discussions with upland communities to gather information on sightings and presence of pangolins in their areas, its traditional uses and hunting techniques; and known practices on its collection and trade.

According to local communities, poaching and illegal trade of pangolin meat and scales persist.

The meat can fetch for $3 to $5 a kilogram, while the scales can be sold for $130 to $190 a kilo.

While communities are aware that hunting and trade of pangolins are illegal, they continue to persist.

Meanwhile, the field research team from Katala Foundation had so far conducted ground sur-

According to the Environmental Investigation Agency (EIA), pangolins are the most illegally traded animal in the world.

Hunted for their meat and scales for use in traditional medicine, these shy nocturnal mammals may become extinct faster than elephants, tigers, rhinos and other iconic animals, whether in Africa or Asia.

There are eight known species of pangolins, four are found in Africa and four in Asia.

All pangolin species were listed in Convention on International Trade in Endangered Species (Cites) of Wild Fauna and Flora Appendix I in 2016. The inclusion in Appendix I means the pangolins—all eight species including the Palawan pangolin—are threatened with extinction.

Under Cites Appendix I, the trade in specimens of these species are permitted only in exceptional circumstances.

According to EIA as many as 1 million pangolins have been illegally traded within Asia in the past 10 to 15 years.

Organized crime

In the Philippines, the Palawan pangolin is also the most illegally traded animal and the perpetrators are well organized. Antiillegal wildlife trade operatives believe that organized crime syndicates are behind the lucrative pangolin trade and are in cahoots with local communities.

Just last month, authorities arrested two fishermen and a van driver for transporting 10 live pangolins in Barangay Mendez Crossing East, Tagaytay City.

Arrested were Simfroso Cauntay Salazar, 53, driver and a resident of Kilometer 115 Talisay, Calatagan, Batangas; Jorlan Libertino Torrequinada, 39, and Victor Cabuniag Equiza, 40, of P. Mabuhay Abaroan, Roxas, Palawan.

Rogelio Demelletes, a senior

management specialist and one of the anti-illegal wildlife trade operatives of the Philippine Operations Group on Ivory and Illegal Wildlife (Task Force Pogi) of the Department of Environment and Natural Resources (DENR) said the fact that two of the suspects are from Roxas town is proof that locals are in cahoots with the members of the syndicate.

Deeper investigation

The Task Force Pogi said the investigation on the illegal pangolin trade is without letup.

“We are still conducting a follow-up investigation. What we want is to identify the buyers and catch them,” Demelletes said.

As for the arrested suspects from Tagaytay City, Demelletes said authorities have so far initiated inquest proceedings but cases have yet to be filed.

Asked what will be the next step for the DENR Task Force Pogi and its partner-law-enforcement agencies, he said: “We need to cut down at least one of the participants in the trade cycle.”

Ricardo Calderon, the DENR’s assistant secretary for Staff Bureau and concurrent Director of the Biodiversity Management Bureau (BMB), underscored the importance of combatting the illegal trade on pangolin in Palawan.

He said the DENR continues to strengthen the capacity of law-enforcement agencies, including its own, and is coordinating with concerned government agencies and institutions to stop illegal wildlife trade, w ith particular focus on the Palawan pangolin.

“We are strengthening our wildlife enforcement in our seaport.

In Palawan, we are coordinating with PCSD as they have jurisdiction over Palawan as per Wildlife Act. Wildlife trafficking is now a transnational crime and we have law-enforcement coordination at the regional level among 10 Asean member-states,” he said.

Pangolins are ver y vulnerable. W hile they appear to be a sturdy species, these nocturnal, very shy mammals, are sure to die in captivity.

Demelletes said three of the 10 recovered pangolins have already died because of stress.

“In the next few days, the remaining seven may also die because pangolins are hard to feed.

But because they are evidence in court, we cannot just return them to Palawan,” he lamented.

As authorities step up the various initiatives to know more about the little-known species, they are also racing against time to prevent the illegal wildlife trade to prevent

ACB lauds Asean adoption of Bangkok Declaration on Combatting Marine Debris

‘T

he recent adoption by the Asean heads of governments of the Bangkok Declaration on Combating Marine Debris demonstrates the commitment of the 10 Asean member-states in protecting and conserving the region’s rich marine resources.”

This was emphasized by Dr. Theresa Mundita S. Lim, executive director of the Asean Centre for Biodiversity (ACB), as she lauded the Asean’s call for collaborative actions to prevent and significantly reduce marine debris, particularly from land-based activities.

During the 34th Asean Summit held in Bangkok on June 22, the heads of states of Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, through the Bangkok Declaration, recommended an integrated land-to-sea approach to prevent and reduce marine debris.

The Declaration also called for the strengthening of national laws and regulations, as well as enhancing regional and international cooperation, including on relevant policy dialogue and information sharing.

Lim said that marine pollution is a transboundary issue and its impact on marine

biodiversity is already evident with the plastics being found ingested by migratory marine species that travel across seas in the Southeast Asia and adjacent areas.

“The Declaration substantially contributes toward the achievement of Aichi Biodiversity Target 8, on bringing pollution to levels that are not detrimental to ecosystem function and biodiversity; and Strategic Goal C, on improving the status of biodiversity by safeguarding ecosystems, species and genetic diversity. It requires regional efforts to combat marine debris, and considering that our rich marine biodiversity in the region contributes to food security, climate-change mitigation, and increased disaster resiliency for the people of the Asean, the Declaration provides more impetus and guidance for the ACB and development partners to strengthen our efforts to support the Asean member-states and the region to help ensure that this sincere resolve is reflected in cross-sectoral policies, and operationalised and realised on the ground,” Lim explained.

She added that the Declaration will be an excellent benchmark in crafting Asean’s contributions to the post-2020 global biodiversity framework.

Southeast Asian leaders pose for a group photo on June 23 during the opening ceremony of the Asean leaders’ summit in Bangkok, Thailand. AP/Gemunu Amarasinghe

Lim said the Bangkok Declaration promotes mainstreaming of biodiversity and ecosystem conservation as it calls for coordination among Asean sectoral bodies to effectively address the multidimensional and far-reaching negative effects, as well as sources of marine debris pollution.

She added that the Declaration enhances the multistakeholder coordination and cooperation, including implementing joint actions and partnerships for addressing such challenge; and encourages privatesector engagement and investment in preventing and reducing marine debris,

including partnerships between public and private sector through various mechanisms and incentives.

The Bangkok Declaration also calls for the promotion of innovative solutions to enhance plastics value chains, and improve resource efficiency by prioritizing approaches such as

3R (reduce, reuse, recycle).

Lim cited the Bangkok Declaration for its call on strengthening research capacity and application of scientific knowledge to combat marine debris; accelerating advocacy and actions to increase public awareness and participation; and enhancing education for behavioral change toward preventing and reducing marine debris.

The Bangkok Declaration, she noted, demonstrates the complementarity of the Asean Socio-Cultural Community Blueprint 2025 which promotes the protection, restoration and sustainable use of coastal and marine environment.

Lim said it responds and deals with the risk of pollution and threats to such ecosystems, with the United Nations’s Sustainable Development Goal 14 of the 2030 Agenda for Sustainable Development: to conserve and sustainably use the oceans, seas and marine resources for sustainable development, and its Target 14.1 which seeks, by 2025, to “prevent and significantly reduce marine pollution of all kinds, in particular from landbased activities, including marine debris and nutrient pollution.”

A10 Monday, July 8, 2019 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

Destroy the family; destroy the nation

T

HE Philippine culture is sometimes mocked for being old-fashioned. Foreigner expats working in global companies here often do not understand why an employee must take time off to join the provincial hometown fiesta or attend the wake of a relative.

Is it obsolete—when everyone is connected by the Internet—to have these personal encounters? Undoubtedly, some of us view these practices as a cultural burden, an obligation rather than a privilege.

Most Filipinos have a close connection with the United States as it is estimated that about 20 percent of all Filipinos have a relative living there. We probably understand the US better than most countries— except for US politics, which no one can comprehend. Yet, if you have regularly communicated with your balikbayan aunt who has lived in New Jersey for the past 30 years, she will tell you the US has changed.

From small communities, the US has evolved into a place where many people do not know their next-door neighbor, nor do they want to. That seems like an insignificant issue. However, a book published earlier this year—Alienated America: Why Some Places Thrive While Others Collapse—makes some interesting conclusion. Author Timothy P. Carney is an investigative journalist based in Washington, D.C. Carney’s book builds on the analysis of other authors who have examined cultural differences in different parts of the US and that the disintegration of real-life social ties in America is doing more damage than realized. He writes: “Because strong communities have crumbled, and much of America has been left abandoned, more of America is a wasteland of alienation. Less of America is the “village.”

Part of the breakdown of traditional communities is economic mobility, like Filipinos leaving the province to seek fame and fortune in the big city. However, both the first and ultimate social “community” is the family and that has changed significantly.

“In 1970 the US Census Bureau determined a house filled with married parents and their children under 18 years constituted 40 percent of all households. By 2012 that number had fallen to 20 percent. In 1960, 72 percent of all adults were married. By 2016, it was only half.

In 1965, 17 percent of adults aged 21 to 35 were never married. In 2017, the never-married number was 57 percent.”

Perhaps most interestingly, the wealthier you are, the closer the family ties. “The norm of marriage is dead not among our elites but among our working class. Fifty-eight percent of all babies born to noncollege women are born out of wedlock. Among those with some college but no degree, single motherhood has risen from 13 percent to 44 percent in those three decades.”

“When it comes to the family, America really has become two nations,” scholar Kay Hymowitz wrote in her 2006 book Marriage and Caste in America. “The old-fashioned married-couple-with-children model is doing quite well among college-educated women. It is primarily among lower-income women with only high-school education that it is in poor health.”

Is there a correlation between a strong family and economic prosperity? “Sixteen percent of those who graduate from high school and have a full-time job are nevertheless in poverty. If you focus instead on those who followed the sequence—graduate, have a full-time job, get married and then have babies—the poverty rate drops down to 3 percent.” Go visit your family for the health of the nation.

The good and the bad Atty. Jose Ferdinand M. Rojas II

RISING SUN

I

T is good that the Bangko Sentral ng Pilipinas (BSP) is taking its sweet time as far as issuing its own cryptocurrency is concerned. Other central banks are feeling the pressure after the unveiling of Facebook’s Libra and the recent performance of Bitcoin—as of this writing, one Bitcoin equals P584,232.69.

According to BSP Governor Benjamin Diokno, a recent meeting at Basel (Switzerland) revealed that the world’s central banks are actually divided on the issue. But despite the new developments, Diokno still believes that the value of cryptocurrencies, including Bitcoin, is still very volatile.

The BSP is adopting a wait and

Prejudicial publicity Atty. Lorna Patajo-Kapunan

Since 2005

BusinessMirror A broader look at today’s business ✝ Ambassador Antonio L. Cabangon Chua Founder Publisher Editor in Chief Associate Editor News Editor Senior Editors

T. Anthony C. Cabangon Lourdes M. Fernandez Jennifer A. Ng Vittorio V. Vitug Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Efleda P. Campos Dennis D. Estopace

Online Editor Social Media Editor

Ruben M. Cruz Jr. Angel R. Calso

Creative Director Chief Photographer

Eduardo A. Davad Nonilon G. Reyes

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

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

BusinessMirror is published daily by the Philippine Business Daily Mirror Publishing, Inc., with offices on the 3rd floor of Dominga Building III 2113 Chino Roces Avenue corner De La Rosa Street, Makati City, Philippines.

Tel. Nos. (Editorial) 817-9467; 813-0725. Fax line: 813-7025.

(Advertising Sales) 893-2019; 817-1351, 817-2807.

(Circulation) 893-1662; 814-0134 to 36. E-mail: news@businessmirror.com.ph.

www.businessmirror.com.ph

Printed by BROWN MADONNA Press, Inc.–Sun Valley Drive KM-15, South Superhighway, Parañaque, Metro Manila MEMBER OF

see stance, which means that it is not totally closing its doors to taking a more active part in this financial innovation, but is merely observing and taking notes for now—definitely the wise thing to do.

In the country, there are 11 virtual currency exchanges authorized by the BSP: Bexpress Inc., Bitan MoneyTech Co. Ltd., Coinville Phils. Inc.,

LEGALLY SPEAKING

A

LMOST daily we hear about cases being filed with the Ombudsman or cases recommended for filing by the Commission on Audit against high ranking sitting and non-sitting public officials for criminal acts committed during their incumbency. It has been claimed by these public officials that the barrage of prejudicial publicity on their alleged guilt is a violation of the right to due process.

The issue of trial by publicity has been raised in the Supreme Court to stop these trials or annul convictions in high-profile cases. I have been occasionally accused of exploiting media for my high-profile cases and recently an obviously disgruntled “personality” has filed several complaints in court against me to curtail my right to free speech and the media’s right to a free press.

Fortunately, the Supreme Court has spoken clearly in several landmark cases on this issue of prejudicial publicity. The case of Estrada v. Desierto (353 SCRA 452 at pp. 524-530 [2001]) is particularly enlightening.

Said the Supreme Court en banc: “There are two principal legal and philosophical schools of thought on how to deal with the rain of unrestrained publicity during the investigation and trial of high-profile cases.

The British approach the problem with the presumption that publicity will prejudice a jury. Thus, English courts readily stay and stop criminal trial when the right of an accused to fair trial suffers a threat. The

American approach is different. US courts assume a skeptical approach about the potential effect of pervasive publicity on the right of the accused to a fair trial. They have developed different strains of tests to resolve the issue, i.e., substantial probability of irreparable harm, strong likelihood, clear and present danger, etc.”

Citing the earlier cases of People v. Teehankee Jr. (249 SCRA 54 [1995]) later reiterated in the case of Larranaga v. Court of Appeals, et al. (287 SCRA 581 [1998]), the Supreme Court had laid down the doctrine that: “We cannot sustain appellant’s claim that he was denied the right to impartial trial due to prejudicial publicity. It is true that the print and broadcast media gave the case at bar pervasive publicity, just like all high profile and high-stake criminal trials. Then and now, we rule that the right of an accused to a fair trial is not incompatible to a free press. To be sure, responsible reporting enhances an accused’s right to

ABA Global Phils. Inc., Betur Inc. (Coins.ph), Rebittance Inc., BloomSolutions Inc., Virtual Currency Philippines Inc., ETranss Remittance International Corp., Fyntegrate Inc. and ZyBi Tech Inc. nnn

ON another front, there are more reasons to be pleased, as the economy may be able to post, at the very least, a 6-percent increase in the second quarter, according to Diokno.

This is mostly due to an increase in government and consumer spending. Inflation may even go lower than 2 percent in the third quarter, still according to Diokno. In May, it was at 3.2 percent, and at 3 percent in April. Some say that the Philippines’s economic performance is remarkable, in the face of the current trade situation between the US and China, as well as the internal issues that directly or indirectly affect the country’s trade and economic performance.

a fair trial for, as well pointed out, a responsible press has always been regarded as the handmaiden of effective judicial administration, especially in the criminal field xxx.

The press does not simply publish information about trials but guards against the miscarriage of justice by subjecting the police, prosecutors, and judicial processes to extensive public scrutiny and criticism.

“Pervasive publicity is not per se prejudicial to the right of an accused to a fair trial. The mere fact that the trial of appellant was given a dayto-day, gavel-to-gavel coverage does not by itself prove that the publicity so permeated the mind of the trial judge and impaired his impartiality.

For one, it is impossible to seal the minds of members of the bench from pretrial and other off-court publicity of sensational criminal cases.

The state of the art of our communication system brings news as they happen straight to our breakfast tables and right to our bedrooms.

These news form part of our everyday menu of the facts and fictions of life. For another, our idea of a fair and impartial judge is not that of a hermit who is out of touch with the world. We have not installed the jury system whose members are overly protected from publicity lest they lose their impartiality. Our judges are learned in the law and trained to disregard off-court evidence and on-camera performances of parties to litigation. Their mere exposure to publications and publicity stunts does not per se fatally infect their impartiality.”

In another case, the Supreme Court rejected the argument of “possibility of prejudice” on the part of the trial judge due to the barrage

For example, the water crisis continues to be a daily struggle for most households, even as the rains have started to pour. Traffic, flooding, and the garbage problem are inevitably linked to the onset of the rainy season and the school season. Duterte and his administration also continue to receive criticism from numerous citizens and groups, especially as far as the country’s territorial waters and China are concerned.

I see hope in some of our young leaders as they try to address a number of pressing issues in their localities. There may not be a solution for all of the difficulties, but it is indeed refreshing to see local leaders do in a very short time the things that were not accomplished, for whatever reason, in the years that passed. I hope they get all the necessary support and that the country continues to produce young and courageous leaders who can initiate change.

of publicity that characterizes the investigation and trial of a case. Thus, in Martelino, et al. v. Alejandro, et al. (cited in the Estrada case, supra), the Supreme Court rejected this standard of “possibility of prejudice” and adopted the test of “actual prejudice.”

Said the Supreme Court: “…to warrant a finding of prejudicial publicity, there must be allegation and proof that the judges have been unduly influenced, not simply that they might be, by the barrage of publicity. In the case at bar, the records do not show that the trial judge developed actual basis against appellant as a consequence of the extensive media coverage of the pretrial and trial of his case. The totality of the circumstances of the case does not prove that the trial judge acquired a fixed opinion as a result of prejudicial publicity, which is incapable of change even by evidence presented during the trial. Appellant has the burden to prove this actual basis and he has not discharged the burden.”

The Supreme Court further expounded on this doctrine in the subsequent case of Webb v. Hon. Raul de Leon, etc. (247 SCRA 652 [1995]), viz: “The democratic settings, media coverage of trials of sensational cases cannot be avoided and oftentimes, its excessiveness has been aggravated by the kinetic developments in the telecommunications industry. For sure, few cases can match the high volume and high velocity of publicity that attended the preliminary investigation of the case at bar. Our daily diet of facts and fiction about the case continues unabated even today. Commentators still bombard the public with views not many of which are sober and sublime. Indeed, even See “Kapunan,” A11

www.businessmirror.com.ph

Opinion

To avail or not to avail?

Rain, rain go away?

BusinessMirror

Siegfred Bueno Mison, Esq.

Joel L. Tan-Torres

THE PATRIOT

DEBIT CREDIT Part One

A

VAIL or not avail? That is the question confronting taxpayers, both individuals and corporate, on whether to rely on the recently enacted tax amnesty law to find closure of their tax problems and woes.

Let us do a fast rewind, in February 2019, taxpayers received a hearty Valentine’s gift from Congress and President Duterte. Republic Act 11213, the long-awaited tax amnesty under Package 1B of the Duterte administration’s Comprehensive Tax Reform Program, was finally signed into law.

The tax amnesty offers taxpayers the opportunity to be forgiven of their past lapses in meeting their tax obligations, and eventually settle these liabilities affordably. As a complement to Tax Reform for Acceleration and Inclusion law, the tax amnesty is expected to ramp up government’s revenue collections to meet its priority infrastructural and socioeconomic agenda. An amnesty may be construed as a relaxation of some stringent tax rules, but it is indicative that more aggressive tax enforcement efforts are forthcoming.

In the journey of the passage into law of the Tax Amnesty Act, there were deletions of some provisions contained in the version of the law sent by Congress to Malacañang. In a veto letter of the President dated February 22, 2019, the general tax amnesty (GTA) provisions were vetoed due to lack of safeguards against tax evasion. The President mentioned in the veto letter that “I believe that, ultimately, the original objective will not be met under the proposed framework. Without the provisions breaking down the walls of bank secrecy, setting the legal information for tax purposes, and safeguarding against those who abuse the amnesty by declaring an untruthful asset or net worth, a general amnesty that is overgenerous and unregulated would create an environment ripe for future tax evasion, the very thing we wish to address.”

In his veto message, the President

also indicated that “the general amnesty program is meant to give taxpayers a fresh start, as well as to signal the start of a fair tax enforcement campaign by the tax authorities. It is not meant to be abused for the gain of the few and the loss of the rest of the citizenry.

These safeguards against tax evasion are estimated to contribute P76.6 billion to the public funds in the next five years which we hope to use to better our infrastructure and services.” It is to be noted that with the Presidential veto of the GTA, the tax revenues estimated from the TA amounts to a lower P27.5 billion.

With the veto of the GTA provisions, what were left in the tax amnesty law were the TA on delinquent accounts and the estate tax TA. The veto letter came out with this insightful message: “More than the much welcomed revenue to be generated by this law, the amnesty is about rebuilding trust between the government and the people—an opportunity for citizens to disclose past failings and for the government to forgive them with the expectation of better compliance in the future.”

If and how these noble intentions will be attained remain to be seen.

To be continued Joel L. Tan-Torres is a Certified Public Accountant who placed No. 1 in the May 1979 CPA Board Examinations. He was the former commissioner of the Bureau of Internal Revenue from 2009 to 2010 and the chairman of the Professional Regulatory Board of Accountancy from 2014 to August 2018. He is a partner of Reyes Tacandong & Co. 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.

R

AINY season in the Philippines falls on the months of June, July, August, September and October, with August being the wettest month. I once asked a friend how she feels whenever it rains. To her, rains make her feel calm and melancholic.

Quite a few movies use rainfall to create a forlorn episode to evoke a tearful moment. I think, in general, rain connotes sadness or despair because rain almost always diminishes sunlight, which, in turn, creates a somber mood of loneliness.

On the other hand, some students I know welcome rainfall knowing that suspension of classes is a likely consequence. Farmers, in general, celebrate rain showers, but not typhoons, as a sign of good harvest in the future. In other parts of the world, rain is a symbol of good luck.

And in some cultures, rain signifies renewal or rebirth. Rain can also be seen as positive as it washes away

the old and welcomes the new. As depicted in the Biblical story of Noah’s ark, torrential rains caused floods to wipe out the old corrupt world in exchange for a new chapter in His story.

Rain can also be seen as a blessing, especially after a drought.

Rain, as in any other event in our lives, is seen from different perspectives, which result in different reactions. For some, rain evokes the

Bloomberg Opinion

W

HEN BMW AG picked Harald Krueger to run the company more than four years ago, he was the perfect candidate. Young, with a personable manner and decades of experience across the company, Krueger appeared ready to guide the venerable luxury carmaker into a future of electric, self-driving and shared automobiles.

But on Friday—two weeks before his contract came up for renewal—Krueger quit. Instead of leading the company through the biggest upheaval in a generation, he was felled by the transition as he failed to provide a road map to the future. In his farewell note, he cited the “enormous exertion” demanded of BMW employees as the company grapples with the unprecedented demands of the shift.

In the past few years, the industry “has been shaped by enormous changes, which have brought about more transformation than in the previous 30 years,” Krueger said in the note.

Krueger, 53, inherited a company at the top of its game. Under the previous CEO—now chairman—Norbert Reithofer, BMW had outsold MercedesBenz and Audi for a decade. The company was a pioneer in electric vehicles with the i3 city car introduced in 2013.

Kapunan. . .

continued from A10

the principal actors in the case—the NBI, the respondents, their lawyers and their sympathizers—have participated in this media blitz. The possibility of media abuses and their

feeling of misery like “rain on my parade.” For others, rain promotes fun and frolic as in “singing in the rain.”

But one thing is certain, though, rain serves as a guarantee that changes will happen. It all depends on how we take it in.

Take the case of the reaction of my brother Salvador Jr. when heavy rains somewhat disrupted his retirement ceremony on June 20, 2019. Others would have opted to seek shelter and dismiss the parading troops to safety.

After all, the weather agency indicated a lightning yellow alert during that overcast afternoon. In his case, Salvador Jr. audaciously dashed to the parade grounds and snappily marched in his very last pass-in-review as a uniformed serviceman. Drenched yet unperturbed, he finished the ceremony in high spirits. Those who witnessed my brother’s reaction to the thunderous weather might have pondered that such act symbolized the way my brother served his country, that is, rain or shine, come hell or high water, he shows up!

In contrast, pouring rains halted the burial services of a friend’s

relative a few weeks ago. Those who attended opted to wait for the rains to stop instead of proceeding with a short service near the memorial plot. Guests waited patiently as they grieved together with the family left behind. As if part of a Hollywood movie, lo and behold, as soon as the rains stopped and the family proceeded with the ceremony, a rainbow appeared seemingly at the precise moment when the casket was being lowered to the ground. Those who witnessed such providential timing might have pondered that such moment symbolized the way God takes care of those who trust in Him. In Psalms 46:10, the Bible tells us “to be still and know that I am God.” As changes come in our lives, we should learn to embrace them, both good and bad, as His blessings from above.

So, whenever there’s rain, bear in mind that it will always stop, eventually. While it’s pouring, we can choose to wait it out or brave it through. Our choice depends on our mindset.

For questions and comments, please e-mail me at sbmison@gmail.com.

Duterte: Fathering a nation amid war threats Dr. Jesus Lim Arranza

MAKE SENSE

I

MAY not agree with some of President Duterte’s policy decisions. But on the Philippine territorial dispute with China at the West Philippine Sea, I agree with the President’s policy of avoiding an armed confrontation with China.

Like a father to the Filipino nation, he does not want to place the Filipinos in harm’s way, especially in a war we cannot win, even as those against his posturing with China threaten him with impeachment.

As a well-enshrined Roman law that is also in the Philippine Civil Code says, “Pater Familias” states that a person should take care of his properties as a good father to his family. And that is what President Duterte is doing in handling

of the country’s territorial row with China.

Duterte is prepared to face the challenge to his presidency, and even his life, in another war front, without placing the Filipino nation at risk. And as a father and grandfather myself, I empathize with the President cognitively, knowing what he’s going through right now.

Practically besieged by the opposition and those against his handling of the Philippines-

BMW’s CEO loses job after just one term

By Elisabeth Behrmann & Benedikt Kammel

Monday, July 8, 2019 A11

It was the first major automaker to use lightweight carbon fiber in mass-market models. And its traditional business of sumptuous-but-sporty sedans and SUVs was as robust as ever.

But soon after Krueger took over, sales of the i3 hit a wall, calling into question the electric push. The plan to use carbon fiber turned out to be too costly.

The strong-willed Reithofer never really exited the stage. The diesel crisis that shook rival Volkswagen AG sullied the reputation of the entire German car industry, and more recently the US-China trade spat has hit profits.

“The path BMW set out for Krueger wasn’t easy,” said Frank Biller, an analyst at Landesbank Baden-Wuerttemberg in Stuttgart. “BMW has traditionally picked executives with less emotional flair and more of a technical, engineering background. Car electrification is a very emotional topic.”

As Krueger puzzled over how to reinvent BMW for the electric age, it was almost a year before he presented his strategic vision—which was a bust. He delayed BMW’s next major electric car, effectively squandering its leadership in the field. Key engineers quit to set up an electric-vehicle start-up. And to help pay for the shift, Krueger doubled down on gas-guzzling, super-charged luxury cars such as the 8-Series sports car and full-size X7 SUV. At Krueger’s first major public

appearance, at the Frankfurt car show in September 2015, the CEO collapsed on stage minutes into a presentation.

He blamed the episode on dehydration and too many hours flying, but it was an apt metaphor for his leadership, and the event haunted him with obvious discomfort speaking publicly in the months that followed.

THE company has since watched Daimler AG reclaim the luxury crown. Tesla Inc. has become the face of the electriccar revolution. And everyone from Ford Motor Co. to Ferrari NV is rushing to develop electric models, with scores of new offerings scheduled to hit the market in the next five years.

“BMW took its head start in electric cars for granted and then failed to hit the accelerator again when needed,” said Christian Ludwig, an analyst at Bankhaus Lampe in Bielefeld, Germany.

Krueger’s departure serves as a warning to the new executives running at least a half-dozen of the industry’s top companies. Electric vehicles offer nowhere near the same returns as combustion vehicles.

And selling electrics remains a struggle without major incentives as consumers balk at patchy charging infrastructure, high prices and limited driving range.

Like Krueger, most of the new executives come from engineering backgrounds. But they’ll be required to

AT Daimler, new CEO Ola Kallenius, 50, issued the company’s third profit warning in a year, citing provisions to cover recalls of diesel cars that need upgrades to improve emission technology. He took over from Dieter Zetsche in May. At Fiat Chrysler Automobiles NV, CEO Mike Manley failed in an attempted merger with Renault SA that would have delivered much-needed electric technology Fiat eschewed under Sergio Marchionne, the long-serving CEO who died last year.

Krueger’s likely successor, Oliver Zipse, 55, is another insider with a similar career path. Like Krueger, Zipse worked at BMW’s Mini operations in England, and then served as global head of production. Zipse is a champion of BMW’s strategy of keeping factories as flexible as possible, making hybrid and electric models alongside combustion cars around the world. That aligns him with Krueger, who in May defended his cautious approach on electric cars, saying no one knew how fast they’d take over or which technology might win out.

threat to a fair trial notwithstanding, criminal trials cannot be completely closed to the press and public.”

Finally, in its “Epilogue” to the Estrada decision (supra at p. 530), the Supreme Court aptly reminds all of us: “Rights in a democracy are not decided by the mob whose judg-

ment is dictated by rage and not by reason. Nor are rights necessarily resolved by the power of number for in a democracy, the dogmatism of the majority is not and should never be the definition of the rule of law. If democracy has proved to be the best form of government, it is because it has respected the right

of the minority to convince the majority that it is wrong. Tolerance of multiformity of thoughts, however offensive they may be, is the key to man’s progress from the cave to civilization. Let us not throw away that key just to pander to some people’s prejudice.”

I rest my case!

Squandered lead

master technology-driven trends such as ride-hailing, while contending with Silicon Valley giants like Tesla, which is aiming at BMW’s bread-and-butter 3-Series sedan and VW’s Golf with its Model 3, and Waymo, the self-driving unit of Alphabet Inc.

Profit warnings

China territorial dispute, Duterte is right in prioritizing the safety of the greater number of Filipinos by avoiding an armed confrontation, and choosing a strategic and friendly diplomacy.

He remains steadfast in his position that our territorial row with China should be resolved without going to war, even if we have the Mutual Defense Pact with the United States and its allies. After all, even if the US and our other allies would support the Philippines in an armed conflict China, the war front would be in our backyard. And we could be the first victims of a destructive and multifaceted nuclear war, which could be avoided through strategic diplomacy.

But knowing the President, he will never allow himself to be pressured or cajoled into pushing China against the wall, with a view of keeping the Filipinos safe and secure from a nuclear war.

And for that, thank you President Duterte for considering the safety of

the greater number of Filipinos, even amid the criticisms and threat of impeachment because of your handling of the Philippines-China territorial dispute.

And most important, thank you for being a real caring father to the Filipino nation.

As what the American World War I flier and father of his naval aviator and Nasa astronaut son, Walter Schirra Sr. once said about fathering, “You don’t raise heroes, you raise sons. And if you treat them like sons, they’ll turn out to be heroes, even if it’s just in your own eyes.”

Indeed, Duterte looks at the Filipinos as heroes. A Filipino nation worth sacrificing the presidency and even his life, where over 16 million citizens entrusted their fate to him.

Dr. Arranza is the chairman of the Federation

of Philippine Industries and Fight Illicit Trade, a broad-based, multisectoral movement intended to protect consumers, safeguard government revenues and shield legitimate industries from the ill effects of smuggling.

Teachers can help protect their students this rainy season

By Anabel A. Corpuz

R

AINY season brings a lot of childhood memories to most of us. Unfortunately, it also comes with lots of unwelcome illnesses and diseases that can ruin school days for our kids.

Diseases usually develop when the body experiences a sudden drop in temperature, which generally occurs when kids get wet in the rain. Teachers, therefore, should remind students to take a shower after braving the rains. A bath helps the body by stabilizing the cold temperature, and then bringing it back to normal.

On the whole, a child’s immune system does a remarkable job of preventing diseases. Thus, a healthy child is better protected from environmental assaults that can cause illness. Teachers should remind students to eat healthy foods, which is the cheapest way to protect them from sickness.

Parents can cook a hot soup to invigorate their children, or give them vitamin C-rich foods to boost their immune system to help repulse flu and infection during the rainy season. A delicious and healthy meal is what makes rainy days a little warmer.

Teachers must also know that typhoid fever is quite rampant during this season. It mainly affects children and occurs due to consumption of contaminated food or water. Thus, to prevent contracting such ailments, teachers must remind students to eat homecooked food and avoid as much as possible eating street food being peddled in unsafe areas.

Leptospirosis is also one of the most dreaded diseases in the country during

the wet season. Teachers must therefore warn students to avoid being exposed to floodwaters. They must remind students to avoid floodwaters where they can get infected, especially when they have open wounds. Doctors said affected people will experience mild flu-like symptoms, which include headache, fever and muscle pain. The most important control measures to prevent leptospirosis infection, according to the Department of Health, is to avoid the floods as much as possible. Barangays can also help implement rodent control.

Here are simple ways to protect students during the rainy season: 1. Always prepare rain gear, including an umbrella, hooded raincoat and waterproof shoes or boots if students regularly travel by foot, to lower the chances of getting soaked when caught in a downpour.

2. Teach children about basic safety around lightning and thunder. The rule of thumb is that, if they can hear thunder, it’s time to head indoors, especially if they are swimming and even if it hasn’t started to rain.

3. Avoid wading in floodwaters.

It may be fun for kids but beware of leptospirosis, a bacterial disease that is spread by floods containing urine and other bodily fluids of infected animals, including dogs and rodents.

4. Keep hands clean. Common cold symptoms can escalate during the rainy season. To keep everyone safe, wash hands regularly and always bring a hand sanitizer when you are out and about.

Also, make it a habit to wash hands and feet when you get home.

The author is Principal 3 in Baraoidan Elementary School in Gattaran, Cagayan.

2nd Front Page BusinessMirror

A12 Monday, July 8, 2019

Natl govt borrowings in May hit ₧126.086B

T

HE national government’s borrowings for May amounted to P126.086 billion, posting an increase of 117.5 percent from the P57.969 billion made in the same month last year, data from the Bureau of the Treasury showed (BTr).

Based on BTr data, the government’s debt from domestic sources amounted to P55.908 billion, while external borrowings reached P75.178 billion during the period.

Gross domestic borrowings for the month decreased by 8.2 percent from the P55.435 billion made last year, while gross external borrow-

ings expanded by 2,866.8 percent from last year’s P2.534 billion.

Borrowings in the form of fixedrate Treasury bonds took the bigger chunk from domestic gross borrowings amounting to P40 billion while Treasury bills accounted for the remaining P10.908 billion.

For external gross borrowings,

₧75.178 billion The amount borrowed by the national government from foreign sources in May

global bonds took the biggest share amounting to P62.834 billion, project loans accounted for P6.336 billion, and program loans, P6.008 billion.

For the January-to-May period, the government’s gross borrowings amounted to P787.607 billion, posting a growth of 161.8 percent from the P300.84 billion made during the same period last year.

Broken down, the domestic borrowings accounted for P576.016 billion, while external borrowings amounted to P211.591 billion.

The government’s debt from

domestic sources for the five month period posted an increase of 282.86 percent from the P150.449 billion recorded in 2018, while external borrowings also showed a growth of 40.69 percent from the P150.391 billion made in the same period for 2018.

For this year, the national government has programmed its gross borrowings for both domestic and foreign IOUs at P1.19 trillion, which is higher by 20.7 percent from the 2018 level of P986 billion.

Broken down, debt from external sources will account for P297.2 billion while domestic borrowings are pegged at P891.7 billion. The government is eyeing a borrowing mix of 75:25 for this year, with domestic sources accounting for 75 percent and foreign sources at 25 percent. Rea Cu

BIR: Tax on e-cigarettes same as lit sticks

T

HE Bureau of Inter na l Revenue (BIR) has emphasized that the taxes it slaps on electronic cigarettes (ecigarettes), currently at P35, is the

same amount it collects on tobacco products or cigarette packs.

The BIR said this is in line with the provisions of the Tax Reform for Acceleration and Inclusion

RIDGE OF HIGH PRESSURE AREA AFFECTING LUZON as of 4:00 am - July 7, 2019

(TRAIN) law. BIR Deputy Commissioner Marissa O. Cabreros clarified that the excise taxes the bureau collects on tobacco products also goes for e-cigarettes under

the “heated” classification.

Cabreros explained there are two classifications for tobacco products: one being the normal cigarette sticks, which needs to be lit by fire and thus falls under the “burned” classification. The other would be tobacco pellets used in tandem with electronic machines that use heat technology falling under the heated category.

“Yes, [the burned and heated tobacco products are taxed the same at P35 right now]. While the vape [vapor] products are different, it’s not in the law now because it doesn’t have a classification,” Cabreros told the BusinessMirror in a phone interview. “You can’t call it a tobacco product because the presence of the tobacco leaves are not there, it’s liquid.”

The increase in the excise taxes on tobacco products is expected to curtail consumption of “sin” products.

Under the TRAIN law, excise taxes on tobacco products were increased from the current P30 per pack to P32.50 in the first half of 2018 and further increased to P35 per pack starting July this year.

This would be followed by a 4-percent increment come 2024.

Cabreros explained that the taxation on e-cigarettes is nothing new, and is continuously being collected by the BIR even before, as these are classified as tobacco products defined under the Tobacco Regulation Act of 2003 (Republic Act 9211).

“It’s in the law; [heated tobacco products] is classified as cigarettes,” she added. “The BIR is just implementing. They are paying at P35 because they are classified as cigarettes.”

The excise tax on e-cigarettes, however, will decrease to P10 once the measure further increasing the excise tax on tobacco products is signed by President Duterte.

Based on initial data from the Department of Finance (DOF), it earlier said that the ratified measure in line with increasing tobacco excise taxes further by the 17th Congress is seen to push sin tax revenues by P15 billion in 2020, P22 billion in 2021, P26 billion in 2022, P32 billion in 2023 and P31 billion in 2024.

The revenue projections exclude those generated from taxes on ecigarette products proposed at P10 under the measure, according to the DOF.

See “e-cigarettes,” A2

www.businessmirror.com.ph

MEAT PROCESSORS ASK GOVT TO STOP IMPOSING 40% TARIFF ON MDM

By Jasper Emmanuel Y. Arcalas @jearcalas

& Rea Cu

T

@ReaCuBM

HE Philippine Association of Meat Processors Inc. (Pampi) is asking the Bureau of Customs (BOC) to stop collecting the 40-percent tariff on mechanically-deboned meat (MDM) of chicken, saying the rice trade liberalization law did not authorize the reversion to a higher rate.

Industry sources also told the BusinessMirror that they are more concerned about the BOC’s decision to collect the 35-percent tariff difference on earlier chicken MDM shipments than the ban imposed by Manila on German meat imports.

In a letter sent to Customs Commissioner Rey Leonardo B. Guerrero last June 21, Pampi’s legal counsel Ma. Luz S. AzragaMendoza complained about the “unwarranted imposition of excessive duty rate of 40 percent on MDM.” Mendoza said the right tariff should be 5 percent since the implementation of Republic Act (RA) 11203 did not automatically mean a reversion to the higher duty rate of 40 percent for MDMs. “We are respectfully requesting your good office to issue a directive immediately stopping the further imposition of the 40-percent duty rate on MDM and order for the refund of the excessive payments advanced by the aggrieved importers,” she said in the letter obtained by the BusinessMirror.

Chicken MDM is a key component for processed meat products, such as hot dogs and canned luncheon meat.

“Though it cannot be gainsaid that R A 11203 already lifted the quantitative imports restriction on rice, said law however did not authorize any reversion to the higher duty rate of 40 percent insofar as MDM is concerned,” she added.

A rzaga-Mendoza said even President Duterte “never gave his imprimatur to the honorable commission to unilaterally order the imposition and collection of the aforementioned rate.”

The President issued Executive Order (EO) 82 on June 14, which retained the 5-percent import tariff on MDM until 2020.

Pampi said the decision of the BOC to collect a 40-percent tariff on MDM and the collection of the tariff difference had significantly affected the meat processing industry.

“By reason of the sudden upsurge, our meat importers are being constrained to incur staggering amount of costs. Not to mention the serious threat to their viability, especially those new players who cannot afford the additional burden,” Mendoza said.

Pampi’s counsel said Atty.

Erastus Sandino B. Austria, District Collector of BOC at Manila International Container Port (MICP), earlier issued letters to MDM importers demanding the payment of the 40-percent duty rate and threatening to impose See “Meat processors,” A2

‘Ban on provincial buses to hurt small biz owners’

By Jovee Marie N. dela Cruz

T

@joveemarie

O help small entrepreneurs who rely on provincial buses to transport their goods to Metro Manila, a lawmaker on Sunday asked the Metropolitan Manila Development Authority (MMDA) to hold off on its plan to ban provincial buses from traversing Edsa.

Camarines Sur Rep. Luis Raymund Villafuerte made the statement after the MMDA said it will push through with its plan unless it is stopped by the Supreme Court.

Villafuerte said the MMDA stood pat on its decision to ban provincial buses and close 46 bus terminals along Edsa despite calls and judicial petitions filed by various groups before the High Court to nullify what he described as the agency’s “anti-poor and anti-small business” policy.

He said small entrepreneurs will suffer and if given no choice, would be forced to ride more expensive travel options such as taxis or the transport network vehicle service to be able to pass through Edsa.

Villafuerte also renewed his call for the MMDA to suspend, if not junk altogether, this plan following the Supreme Court’s recent move to consolidate all pending petitions against the proposed Edsa ban and direct the MMDA to respond to the petitioners.

According to Villafuerte, the MMDA proposal would prove detrimental primarily to the welfare of commuters and small entrepreneurs who would have to cough up more money for their transport fares should provincial buses be

taken out of the Edsa.

“Pending final action by the High Tribunal on the various petitions seeking a halt to this highly controversial plan, it would do well for the MMDA to hold off on this Edsa ban and, in the meantime, study alternative measures to decongest traffic along Edsa and other major roads across the national capital,” Villafuerte said.

Apart from banning provincial buses on Edsa, the proposed MMDA order will also require these buses to use only the Parañaque Integrated Terminal Exchange in Parañaque City and similar common terminals located in Sta. Rosa Laguna and Valenzuela City.

“Transferring from a provincial bus at terminals set by the MMDA to another public utility vehicle would prove too cumbersome, costly and time-consuming for passengers who usually carry with them heavy pieces of luggage when traveling to Metro Manila and back to their provinces,” Villafuerte said.

The lawmaker also backed the petition for review and prohibition filed by Albay Rep. Joey Salceda before the SC that seeks to stop the implementation of the provincial bus ban on Edsa.

Villafuerte, citing reports, said there are currently 12,000 passenger buses in Metro Manila, of which 8,000 are provincial buses.

The Metro Manila Council, the MMDA’s policy-making body and governing board, has signed and approved regulation 19-002 prohibiting the issuance of business permits to public utility vehicle terminals and operations along Edsa.

Companies BusinessMirror

Editor: Efleda P. Campos

Monday, July 8, 2019

B1

Lloyds, Mitsubishi partner to build 1,200-MW LNG merchant power hub

By Lenie Lectura @llectura

E

NERGY Secretary Alfonso Cusi said last week that Dubai-based Lloyds Energy is partnering with Mitsubishi Corp. Energy of Japan to put up a 1,200-megawatt (MW) liquefied natural gas (LNG) merchant power plant.

“It is not an LNG terminal.

It is a power plant, a merchant power plant whose feedstock is LNG. That’s the business model of Lloyds, ” Cusi said. “Lloyds Energy, together with Japan Mitsubi-

shi, will put up a 1,200-MW LNG power plant.”

Details of the proposed LNG merchant plant have yet to be firmed up. Cusi said his office awaits Lloyds’s master plan.

They’re working on their papers.

They’re going to submit it to us,” Cusi said.

If and when submitted, Cusi said the Department of Energy (DOE) would assess the proposal before any permit is issued. “We have to await for Lloyds Energy to submit their master plan and their timeline and schedule of work so we can issue the permit, if it will meet the terms, the conditions required.”

If it pushes through, the LNG merchant power plant can be put up in 18 to 24 months, Cusi said.

Unlike conventional independent power projects, merchant plants do not have upfront, long-term power purchase agreements to cover their output. Lloyds’s LNG plans, Cusi added, include partnership with state firm Philippine

National Oil Co. (PNOC).

“They are talking. PNOC is part of the discussion. What PNOC would like to have is to get a board seat so we have proper representation and how things are running,” Cusi said.

Lloyds Energy earlier signed a memorandum of understanding with PNOC to explore ways to develop LNG facilities and natural gas power plants in Bataan and Batangas provinces.

“The country needs an LNG power plant and an oil depot. These steps will encourage also the private sector to consider these directions, just like what we did with the LNG hub,” PNOC President Reuben Lista said.

Cusi said Lloyds’s interest and that of Mitsubishi to invest in the country was reached during President Duterte’s working visit to Japan. “That is the product of our negotiation when we went to Japan during the trip of the President. The government is doing that...encouraging or inviting investment

to address the energy requirement of the country in the immediate future.”

In the past, Cusi said the Japanese government, through the Japan International Cooperation Agency, expressed its interest in building an LNG power plant in the Philippines.

The DOE had also invited Japanese investors to put up merchant power plants in the Philippines through the Ministry of Economy, Trade and industry.

Mislatel to receive 3rd telco permit in Malacañang

By Lorenz S. Marasigan @lorenzmarasigan

T

HIRD telco player Mislatel Consortium—a group led

by Davao-based businessman Dennis A. Uy—is scheduled to finally receive its certificate of public convenience and necessity (CPCN) from the government, after completing the long list of post-qualification requirements for the franchise.

Department of Information and Communications Technology (DICT) Undersecretary for Operations Eliseo M. Rio Jr. said the awarding of the permit to operate telco services to Mislatel will be conducted in Malacañang, as it was considered an “achievement” by the government.

“The awarding will continue as planned and it has already been scheduled in Malacañang. The government considers this as an achievement because we have effectively introduced competition in the telco market, which was dominated by two players,” he said in a phone interview.

Rio, who led the whole third telco initiative during his time as acting DICT secretary, explained that Mislatel was able to comply with all of the post-qualification requirements set in the terms of reference for the franchise auction held in November 2018.

The post-qualification process involves: forming the official company through the Securities and Exchange Commission, getting necessary approvals from the

Philippine Competition Commission and the National Economic and Development Authority; and most important, posting the performance bond which, in Mislatel’s case, is P25.7 billion.

“Mislatel was also able to come up with the P10-billion paid-up capital,” Rio added.

Composed of Mindanao Islamic Telephone Co. (Mislatel), Udenna Corp., Chelsea Logistics and Infrastructure Holdings Corp., China Telecom Corp. Ltd., Mislatel was the sole compliant bidder for the third telco franchise. Its win was marred by legal tussles, including a supposed irregularity in the franchise of Mislatel.

Rio said that the government would like to see Mislatel starting its operations in the soonest

PHILSTOCKS: PSEi ON ITS WAY TO 8,500 BASIS POINTS

By VG Cabuag @villygc

B

ROKER Philstocks Financial Inc. said the main index may reach 8,500 points by year-end as it is bullish over the prospects of the local equity market in the second half of the year despite lingering risks.

Philstocks Assistant Vice President for Research Justino Calaycay Jr. said share prices will track the positive earnings of listed firms seen to sustain the modest 9.6 percent year-on-year

gains in the first quarter.

“Consumer spending, benefiting from easing inflation and the accommodative bias of the Bangko Sentral ng Pilipinas [BSP] will be the key driver,” Calaycay said.

Stocks are seen to be boosted by last May’s 25 basis points reduction in the reverse repurchase rate and the aggregate 200 basis points taken off the reserve requirement ratio.

Calaycay warned that the broad economy will face challenges even as inflation concerns are moved to the side since price

pressures continue to taper off.

“Upside risks remain, however, on account of uncertainties in oil prices in light of prevailing geopolitical tensions and a choppy global economy,” he said.

Philstocks has revised most of its forecast numbers with gross domestic product now expected to hover between 5.9 percent and 6.3 percent from its earlier forecast of 6.2 percent to 6.7 percent.

Inflation rate is expected to improve to 2.5 percent to 3 percent from 4.5 percent to 5.5 percent in the previous estimates.

Meralco customers to benefit from low-cost Solar PHL power

T

HE power sou rced by the Manila Electric Co. (Meralco) from Solar Philippines Tarlac Corp. will be dispatched this month.

Solar Philippines said Meralco consumers will benefit from the low rates earlier agreed by Meralco and Solar Philippines.

“At P2.9999 per kWh, with 2 percent annual escalation, this is the lowest-ever rate of any power supply agreement in the Philippines. If this were to replace Meralco’s average generation rate in June 2019 of P6.0186 per kWh inclusive of VAT, this may result in savings of P3.0187 per kWh to Meralco consumers, or P603.74 for those with a 200kWh monthly consumption,” Solar Philippines said.

Solar power supply is highest at midday, when power demand also peaks. The start of supply from the solar farm will save Meralco from purchasing from the Wholesale Electricity Spot Market (WESM) when prices peak, and prevent rotating blackouts as have occurred over the past months.

This record-low rate was the result of Solar Philippines submitting the lowest bid in a competitive selection process, as required by the Department of Energy. Meralco has announced plans for another CSP, which is expected to further lower costs for consumers.

With a peak capacity of 150 MW, the Tarlac Solar Farm is the largest solar farm in the country

and the first to dispatch electricity to Meralco under a power supply agreement. To achieve its low costs, the project uses panels manufactured at the Solar Philippines Factory, the first Filipino solar factory, and is developed, constructed, owned and operated by Solar Philippines.

“We are proud to be the lowest-cost producer of electricity in the Philippines, and happy that Meralco’s approximately 30 million consumers will now benefit from these low costs.

We thank Meralco for accelerating the adoption of renewable energy, and becoming the No. 1 consumer of solar in the Philippines,” Solar Philippines President Leandro Leviste said.

Lenie Lectura

possible time, but noted the infrastructure constraints that the newly formed company would have to face.

“Nonetheless, they have already started laying out their infrastructure in the last two months,” he said.

Mislatel could also tap independent tower companies—four of which are now starting the buildup process for shared telco infrastructure across different provinces and cities in the Philippines—to hasten the rollout of its services.

Mislatel committed to initially cover 37 percent of the whole Philippines with a minimum Internet speed of 27 Mbps through a P150-billion capital and operational expenditures budget.

Based on the terms of reference for the third telco selection, companies must exceed the following minimum levels of service for the first year: 10 percent of

the population, 5 Mbps speed and a P40-billion capital.

Mislatel ’s five-year com m it ment ent a i l s P257 billion in total money spent, which should provide for an 84-percent coverage with a minimum Internet speed of 55 Mbps.

“The measurement of their commitment will start a year after,” Rio said.

Should Mislatel fail on its commitments, it will have the chance to implement corrective actions, but the government has the right to revoke the franchise awarded to it.

DOTr sees feasibility study for a local cable-car system ready by end-December

T

HE French-funded feasibility study for the development of a cable-car system in the Philippines should be completed within the year, a Cabinet official said in a recent interview.

Transportation Secretary Arthur P. Tugade said so far, two locations have been initially identified as potential locations of the cable-car system, and they are the stretch of the Pasig River and Baguio City.

“The target is to finalize the feasibility study by the end of this year,” he said. The French government granted €450,000 for the development of a feasibility study for the first cable car of the Philippines.

Tugade first floated the idea of a cable-car system as an alternative mode of transportation in 2016, which garnered a lot of criticisms from private individuals. It sounded a laughable idea for many and generated a number of online memes that went viral.

For Tugade, the value proposition of building a cable car lies on the ease of its implementation. Right-of-way acquisition and delivery, he said, will be a “minor issue.”

“The French are interested in building the cable car,” he said. “[The builder and operator] could be a private company.” Lorenz S. Marasigan

Companies BusinessMirror

B2 Monday, July 8, 2019

PSE STOCK QUOTATIONS

July 5, 2019

Net Foreign Stocks Bid Ask Open High Low Close Volume Value Trade (Peso) Buy (Sell) FINANCIALS

ASIA UNITED 58.5 58.9 58.5 58.9 58.5 58.9 4,870 286,623 264,950 BDO UNIBANK 142 143 139 143 139 143 2,483,140 353,321,494 83,804,616 BANK PH ISLANDS 78.6 78.65 79 79.35 78.6 78.6 1,711,550 134,948,677.5 11,325,239.5 CHINABANK 27.15 27.2 27.25 27.25 27.05 27.15 100,000 2,714,725 (1,050,765) EAST WEST BANK 12.12 12.18 12.14 12.2 12.1 12.12 2,273,700 27,672,474 (4,281,962) METROBANK 71.75 71.95 71.9 72.35 71.7 71.75 2,683,230 192,822,286 ( 27,715,918.5) PB BANK 13.22 13.24 13.24 13.24 13.24 13.24 14,400 190,656 PHIL NATL BANK 55.8 55.9 54.5 56.15 54.5 55.8 257,840 14,390,670 4,497,235.5 PSBANK 58 58.05 58.1 58.1 58.05 58.05 4,920 285,610.5 (278,640) RCBC 27.1 27.15 27.3 27.7 27.15 27.15 84,300 2,294,555 (40,735) SECURITY BANK 172 172.4 171.5 172.6 171.4 172 1,306,450 224,524,597 1,724,814 UNION BANK 61.8 61.95 62 62.3 61.9 61.95 40,570 2,513,566.5 171,915.5 BRIGHT KINDLE 1.18 1.24 1.28 1.28 1.2 1.26 305,000 379,730 BDO LEASING 2.36 2.43 2.44 2.44 2.31 2.43 300,000 728,500 COL FINANCIAL 18.7 18.76 18.7 18.76 18.7 18.76 1,600 30,010 FERRONOUX HLDG 4.77 4.84 4.85 4.9 4.75 4.84 41,000 199,060 FILIPINO FUND 7.71 8.6 7.84 7.84 7.71 7.71 1,800 13,893 IREMIT 1.34 1.38 1.34 1.34 1.34 1.34 2,000 2,680 MEDCO HLDG 0.49 0.51 0.52 0.53 0.49 0.5 713,000 354,440 NTL REINSURANCE 0.98 0.99 0.98 0.99 0.98 0.98 259,000 253,990 (9,800) PHIL STOCK EXCH 189.1 190 189.1 190 189.1 190 180 34,182 SUN LIFE 1,750 1,810 1800 1,800 1,750 1,750 240 421,150 9,000

INDUSTRIAL ALSONS CONS 1.35 1.36 1.39 1.39 1.36 1.36 891,000 1,235,910 ABOITIZ POWER 36.6 37 37 37 36.6 37 378,400 13,960,695 1,587,640 BASIC ENERGY 0.26 0.265 0.27 0.27 0.255 0.26 4,800,000 1,244,300 FIRST GEN 26.9 26.95 27 27.05 26.95 26.95 5,271,000 142,301,535 41,205,425 FIRST PHIL HLDG 91.5 91.65 90 92.5 89 91.65 1,553,650 141,435,242 (1,015,927.5) MERALCO 383 386 381.2 386 381.2 386 54,790 21,088,168 15,117,922 MANILA WATER 25.1 25.45 25.55 25.55 25.1 25.45 609,000 15,346,490 829,445 PETRON 5.87 5.89 5.9 5.95 5.86 5.87 1,515,500 8,924,819 4,806,929 PETROENERGY 4.63 4.74 4.64 4.75 4.6 4.75 121,000 563,450 PHINMA ENERGY 2.2 2.23 2.37 2.38 2.2 2.2 32,177,000 73,139,700 (582,200) PHX PETROLEUM 11.98 12.08 12.08 12.08 11.96 12.08 13,300 160,460 PILIPINAS SHELL 38.75 38.8 38.95 39 38.75 38.8 306,500 11,910,315 (850,155) SPC POWER 6.55 6.58 6.56 6.58 6.54 6.58 31,600 207,244 VIVANT 16.02 16.94 16 16 16 16 100 1,600 AGRINURTURE 14.56 14.58 14.96 14.96 14.58 14.58 475,700 7,030,392 1,807,570 CNTRL AZUCARERA 17 17.4 17.48 17.48 17.46 17.46 1,500 26,204 CENTURY FOOD 14.48 14.68 14.4 14.5 14.3 14.48 479,700 6,917,138 (491,992) DEL MONTE 6.3 6.4 6.27 6.45 6.27 6.4 523,600 3,340,882 (95,701) DNL INDUS 10.5 10.52 10.54 10.54 10.48 10.5 2,349,900 24,674,786 (6,168,514) EMPERADOR 7.61 7.62 7.68 7.68 7.56 7.62 1,276,200 9,685,431 SMC FOODANDBEV 104.1 104.8 105.1 105.2 103.9 104.1 52,280 5,468,119 (967,861) ALLIANCE SELECT 0.84 0.85 0.84 0.86 0.84 0.85 1,528,000 1,298,410 (37,400) GINEBRA 57.4 57.8 61 61.1 57.4 57.4 725,660 42,737,611.5 16,910,868.5 JOLLIBEE 285 285.4 285.8 286 284.6 285 335,280 95,619,752 (13,081,574) MACAY HLDG 9.31 9.59 9.8 9.85 9.2 9.59 43,300 413,060 MAXS GROUP 14.5 14.56 14.7 14.76 14.5 14.56 267,500 3,916,502 7,330 MG HLDG 0.187 0.194 0.186 0.187 0.186 0.186 2,020,000 375,990 PEPSI COLA 1.9 1.91 1.94 2 1.9 1.91 14,474,000 28,214,940 (2,313,650) SHAKEYS PIZZA 13.84 14 13.7 14.04 13.7 14 178,500 2,497,298 41,900 ROXAS AND CO 1.38 1.39 1.4 1.4 1.38 1.38 119,000 164,880 ROXAS HLDG 1.91 2.11 2.07 2.1 1.91 1.91 27,000 56,280 (31,349.9999) SWIFT FOODS 0.127 0.128 0.127 0.127 0.127 0.127 10,000 1,270 UNIV ROBINA 175 176 172 176.9 171.3 176 990,480 173,682,987 77,488,293 VITARICH 1.28 1.29 1.26 1.28 1.25 1.28 3,259,000 4,147,030 (194,520) VICTORIAS 2.49 2.56 2.5 2.55 2.48 2.48 65,000 161,920 CONCRETE A 100 100.5 105.5 107.8 95 100.5 28,350 2,828,856 CONCRETE B 110.3 113 115.2 121 110 110.3 6,450 737,752 CEMEX HLDG 3.07 3.08 3.11 3.14 3.05 3.07 14,583,000 44,702,250 29,504,760 EAGLE CEMENT 15.56 15.58 15.6 15.6 15.56 15.58 2,477,400 38,613,958 6,474,262 EEI CORP 11 11.06 11.04 11.16 11 11 593,400 6,545,096 4,966,174 HOLCIM 13.52 13.6 13.6 13.6 13.5 13.6 399,800 5,420,314 (2,230,012) MEGAWIDE 18 18.02 18.3 18.3 17.94 18 2,987,000 53,847,090 (18,665,634) PHINMA 9.1 9.3 9.3 9.3 9.3 9.3 210,000 1,953,000 TKC METALS 1.21 1.23 1.21 1.24 1.2 1.23 571,000 691,710 VULCAN INDL 1.43 1.44 1.47 1.49 1.43 1.43 10,769,000 15,679,210 (45,900) CROWN ASIA 2.09 2.1 2.09 2.09 2.09 2.09 46,000 96,140 EUROMED 1.6 1.7 1.7 1.7 1.7 1.7 20,000 34,000 MABUHAY VINYL 3.31 3.44 3.3 3.44 3.3 3.44 4,000 13,480 PRYCE CORP 4.91 5.1 5.1 5.1 4.91 4.91 8,600 42,245 CONCEPCION 40.6 40.95 40.15 41 40.15 40.6 9,400 381,590 361,300 GREENERGY 2.55 2.59 2.59 2.6 2.55 2.59 4,783,000 12,299,380 (1,191,360) INTEGRATED MICR 10.22 10.24 10.32 10.32 10.24 10.24 257,200 2,641,836 (596,874) IONICS 1.7 1.71 1.74 1.75 1.69 1.7 2,041,000 3,488,630 8,550 PANASONIC 5.86 5.87 5.87 5.87 5.87 5.87 400 2,348 SFA SEMICON 1.14 1.15 1.16 1.17 1.14 1.14 1,299,000 1,491,650 CIRTEK HLDG 16.5 16.6 17.98 17.98 16.3 16.5 696,600 11,784,848(1, 053,743.9997)

HOLDING & FRIMS ABACORE CAPITAL 1.01 1.02 1.05 1.1 0.99 1.02 127,516,000 133,227,260 622,980 ASIABEST GROUP 12.92 12.98 13 13.22 12.9 12.98 15,100 196,406 AYALA CORP 910 910.5 901 915 900 910 288,460 262,368,475 (11,043,885) ABOITIZ EQUITY 55.35 55.5 56 56 55 55.5 1,897,380 104,881,745.5 (79,240,740) ALLIANCE GLOBAL 15.68 15.7 15.68 15.78 15.56 15.7 5,698,200 89,358,866 20,006,288 AYALA LAND LOG 3.85 3.86 3.94 3.95 3.83 3.86 2,776,000 10,715,070 702,250 ANSCOR 7 7.1 6.55 7.1 6.55 7 32,500 227,919 135,800 ANGLO PHIL HLDG 0.74 0.77 0.8 0.8 0.74 0.77 1,977,000 1,517,210 67,000 ATN HLDG A 1.28 1.29 1.3 1.31 1.29 1.29 4,245,000 5,509,520 ATN HLDG B 1.3 1.33 1.31 1.34 1.3 1.3 841,000 1,099,940 762,500 BHI HLDG 1,251 1,481 1251 1,251 1,251 1,251 10 12,510 COSCO CAPITAL 6.86 6.87 6.82 6.87 6.82 6.87 8,337,600 57,055,567 (77,969) DMCI HLDG 10.22 10.24 10.3 10.38 10.22 10.22 4,303,600 44,094,726 (25,399,394) FILINVEST DEV 13.92 14 14 14.02 13.9 14 103,100 1,441,938 (418,518) FORUM PACIFIC 0.228 0.237 0.225 0.242 0.223 0.24 580,000 130,640 2,230 GT CAPITAL 855 859 878 878 855 855 65,630 56,443,825 (19,462,970) HOUSE OF INV 6.4 6.45 6.42 6.42 6.39 6.4 300,100 1,922,131 (1,281,931) JG SUMMIT 67.85 68.75 68 68.75 66.8 68.75 611,960 41,845,930.5 34,859,605 LODESTAR 0.49 0.5 0.495 0.495 0.485 0.485 30,000 14,750 LOPEZ HLDG 4.24 4.25 4.1 4.25 4.1 4.24 1,443,000 6,070,900 (778,840) LT GROUP 15.88 15.92 15.76 15.92 15.72 15.88 5,098,100 80,835,872 (2,503,276) MABUHAY HLDG 0.63 0.64 0.63 0.65 0.62 0.64 1,441,000 917,780 MJC INVESTMENTS 2.61 2.89 2.89 2.89 2.89 2.89 4,000 11,560 METRO PAC INV 4.75 4.78 4.8 4.82 4.74 4.78 14,644,000 70,010,620 19,788,470 PACIFICA 0.039 0.04 0.039 0.04 0.039 0.04 7,800,000 310,300 PRIME MEDIA 1.51 1.52 1.5 1.68 1.48 1.51 17,746,000 27,693,440 (818,350) SOLID GROUP 1.36 1.37 1.44 1.44 1.37 1.37 352,000 490,320 26,120 SYNERGY GRID 433.2 465.4 433.2 465.6 433 465.6 110 47,960 SM INVESTMENTS 980 983 978 992.5 978 983 70,090 68,913,325 15,072,890 SAN MIGUEL CORP 174.8 174.9 176 177 174.8 174.9 350,090 61,282,341 7,698,361 SOC RESOURCES 0.82 0.84 0.82 0.82 0.82 0.82 165,000 135,300 16,400 TOP FRONTIER 260.2 267 266 267 260.2 260.2 1,340 349,940 (31,246) WELLEX INDUS 0.231 0.237 0.232 0.24 0.231 0.237 3,490,000 830,090 ZEUS HLDG 0.33 0.335 0.34 0.34 0.325 0.335 3,790,000 1,258,400 (144,000)

PROPERTY ARTHALAND CORP 0.95 0.97 0.97 0.97 0.94 0.97 4,011,000 3,843,930 (192,000) AYALA LAND 52.2 52.25 51.5 52.45 51.5 52.2 12,579,070 655,803,535.5 10,800,159 ARANETA PROP 2.01 2.06 2.01 2.05 2.01 2.05 154,000 314,940 BELLE CORP 2.35 2.37 2.34 2.37 2.34 2.35 609,000 1,433,640 1 ,172,299.9997 A BROWN 0.84 0.85 0.84 0.85 0.84 0.85 1,787,000 1,504,200 42,500 CITYLAND DEVT 0.92 0.93 0.91 0.94 0.9 0.93 225,000 208,710 CROWN EQUITIES 0.237 0.238 0.239 0.24 0.238 0.238 1,270,000 302,590 CEBU HLDG 6.09 6.1 6.06 6.1 6.06 6.1 39,400 240,160 (197,640) CEB LANDMASTERS 5.17 5.2 5.19 5.23 5.17 5.17 1,522,600 7,916,854 514,330 CENTURY PROP 0.62 0.63 0.63 0.64 0.62 0.63 38,915,000 24,295,960 (498,190) CYBER BAY 0.45 0.46 0.45 0.47 0.45 0.46 1,330,000 615,950 DOUBLEDRAGON 25.1 25.2 25.2 25.5 24.9 25.2 410,000 10,342,710 1,271,620 DM WENCESLAO 10.58 10.62 10.18 10.66 10.18 10.58 1,131,900 11,815,952 (3,753,286) EMPIRE EAST 0.47 0.475 0.475 0.475 0.47 0.475 1,770,000 835,150 (195,000) FILINVEST LAND 1.89 1.9 1.88 1.93 1.88 1.9 96,414,000 183,506,060 (58,453,980) GLOBAL ESTATE 1.38 1.39 1.4 1.41 1.38 1.38 2,288,000 3,182,860 (125,400) 8990 HLDG 15.28 15.3 15.62 15.62 15.3 15.3 230,500 3,538,188 1,042,362 PHIL INFRADEV 1.8 1.82 1.81 1.84 1.8 1.8 2,493,000 4,508,630 (7,320) CITY AND LAND 0.84 0.85 0.85 0.85 0.83 0.85 327,000 276,480 MEGAWORLD 6.1 6.12 6.16 6.18 6.09 6.1 9,905,000 60,714,781 (31,431,509) MRC ALLIED 0.335 0.34 0.345 0.35 0.34 0.34 10,900,000 3,738,250 (387,100) PHIL ESTATES 0.465 0.48 0.48 0.48 0.48 0.48 480,000 230,400 PRIMEX CORP 2.21 2.23 2.25 2.25 2.19 2.24 1,093,000 2,440,510 (40,500) ROBINSONS LAND 26.9 27 26.5 27.2 26.1 27 2,866,300 77,355,275 4,564,965 PHIL REALTY 0.4 0.415 0.405 0.415 0.405 0.405 520,000 210,950 ROCKWELL 2.22 2.24 2.22 2.26 2.22 2.22 346,000 775,410 SHANG PROP 3.12 3.14 3.12 3.2 3.12 3.14 607,000 1,909,050 (18,840) STA LUCIA LAND 1.94 1.96 1.95 1.96 1.93 1.96 725,000 1,411,260 39,000 SM PRIME HLDG 38 38.25 38 38.4 38 38.25 4,983,200 190,304,725 (16,227,565) STARMALLS 6.3 6.32 6.43 6.48 6.27 6.32 30,800 194,473 PTFC REDEV CORP 45 48.95 46 46 46 46 500 23,000 VISTA LAND 7.17 7.23 7.14 7.26 7.12 7.23 7,657,500 55,143,440 (10,815,973)

SERVICES ABS CBN 17.4 17.5 18 18.18 17.5 17.5 91,900 1,636,722 GMA NETWORK 5.45 5.46 5.35 5.46 5.35 5.46 448,500 2,435,864 MANILA BULLETIN 0.52 0.53 0.51 0.53 0.51 0.53 744,000 389,970 MLA BRDCASTING 14.5 15.4 14.6 15.4 14.5 15.4 1,400 20,420 GLOBE TELECOM 2,244 2,258 2260 2,260 2,236 2,258 32,970 74,384,970 31,198,370 PLDT 1,239 1,240 1246 1,267 1,240 1,240 68,375 85,350,875 (4,305,950) APOLLO GLOBAL 0.045 0.046 0.045 0.046 0.045 0.046 3,800,000 171,300 DFNN INC 6.18 6.2 6.23 6.23 6.18 6.18 51,300 318,534 IMPERIAL 1.91 1.98 1.99 1.99 1.91 1.98 136,000 261,620 ISLAND INFO 0.118 0.12 0.117 0.12 0.116 0.12 660,000 77,370 ISM COMM 6.79 6.8 6.74 6.88 6.73 6.79 5,536,800 37,611,736 (2,159,717) JACKSTONES 3 3.06 3 3 3 3 5,000 15,000 NOW CORP 2.5 2.51 2.66 2.7 2.45 2.5 4,373,000 11,189,440 83,640 TRANSPACIFIC BR 0.385 0.39 0.39 0.39 0.385 0.39 4,080,000 1,582,750 PHILWEB 3.88 3.9 4.03 4.11 3.88 3.88 7,005,000 28,058,390 28,320 2GO GROUP 11.3 11.4 11.22 11.6 11.22 11.3 11,300 129,348 ASIAN TERMINALS 21.05 21.5 21.5 21.5 21.05 21.5 34,000 730,955 (692,300) CHELSEA 8.58 8.59 8.38 8.63 8.38 8.59 2,786,900 23,759,632 2,926,863 CEBU AIR 92.7 92.75 91.2 92.9 91.1 92.75 338,390 31,250,619 (1,938,706) INTL CONTAINER 144.6 144.7 145.9 146 144 144.7 348,290 50,504,513 26,981,170 LBC EXPRESS 14.08 14.68 14.78 14.78 14.08 14.08 2,500 35,534 LORENZO SHIPPNG 0.83 0.85 0.86 0.86 0.83 0.85 101,000 85,190 MACROASIA 19.4 19.44 19.5 19.52 19.4 19.44 198,400 3,861,702 1,363,026 METROALLIANCE A 1.55 1.65 1.55 1.6 1.54 1.55 189,000 296,580 METROALLIANCE B 1.56 1.65 1.6 1.6 1.56 1.56 204,000 326,240 PAL HLDG 9.05 9.2 9.05 9.12 9.01 9.01 25,300 228,941 2,735.9999 HARBOR STAR 2.21 2.22 2.24 2.24 2.21 2.21 1,116,000 2,473,560 BOULEVARD HLDG 0.056 0.057 0.058 0.058 0.056 0.057 12,570,000 713,710 WATERFRONT 0.76 0.77 0.75 0.78 0.75 0.77 3,489,000 2,669,280 CENTRO ESCOLAR 6.98 7.19 7 7 7 7 1,200 8,400 IPEOPLE 9.8 10 10.1 10.1 9.8 9.8 4,600 46,066 (3,030) STI HLDG 0.75 0.76 0.75 0.76 0.74 0.76 4,060,000 3,057,560 745,620 BERJAYA 2.7 2.74 2.75 2.77 2.68 2.74 220,000 600,740 BLOOMBERRY 11.66 11.72 11.6 11.74 11.58 11.66 5,435,800 63,426,860 (47,439,410) PACIFIC ONLINE 3.03 3.08 3.08 3.08 3.03 3.04 300,000 913,380 (459,850) LEISURE AND RES 3.76 3.8 3.76 3.8 3.72 3.8 610,000 2,298,340 295,690 MANILA JOCKEY 3.16 3.24 3.16 3.16 3.16 3.16 1,000 3,160 PH RESORTS GRP 5.35 5.51 5.3 5.55 5.3 5.53 60,500 322,135 PREMIUM LEISURE 0.74 0.75 0.78 0.79 0.74 0.75 17,638,000 13,371,540 (1,769,110) TRAVELLERS 5.49 5.55 5.49 5.54 5.45 5.49 2,732,600 15,023,864 (8,572,403) METRO RETAIL 2.64 2.65 2.63 2.67 2.61 2.65 3,427,000 9,059,460 289,720 PUREGOLD 43.75 43.8 44 44.15 43.8 43.8 1,375,700 60,454,705 10,193,015 ROBINSONS RTL 77 77.15 76.85 77.3 76.85 77 463,010 35,658,867 (80,389.5) PHIL SEVEN CORP 135.4 135.8 136 136 136 136 50 6,800 SSI GROUP 3.36 3.37 3.3 3.37 3.27 3.36 5,056,000 16,809,970 6,640,660 WILCON DEPOT 16.94 16.96 16.94 17 16.92 16.94 245,800 4,167,458 (1,151,620) APC GROUP 0.53 0.54 0.54 0.54 0.51 0.53 6,251,000 3,258,940 15,600 EASYCALL 10.04 10.06 10.46 10.46 10.04 10.06 51,000 513,456 GOLDEN BRIA 420 427 426 443 410 420 2,410 1,022,774 38,610 IPM HLDG 5.7 6 5.85 5.85 5.75 5.75 16,000 92,950 PRMIERE HORIZON 0.89 0.9 0.91 0.93 0.89 0.89 38,311,000 34,592,460 (247,990) SBS PHIL CORP 8.98 9.26 9.1 9.27 8.98 8.98 71,300 646,946

MINING & OIL ATOK 11.22 12.48 12.48 12.48 12.48 12.48 500 6,240 APEX MINING 1.17 1.18 1.23 1.23 1.15 1.18 4,097,000 4,826,720 (3,058,330) ABRA MINING 0.0018 0.0019 0 0.0018 0.0018 0.0018 0.0018 1,000,000 1,800 ATLAS MINING 2.69 2.77 2.78 2.78 2.68 2.78 38,000 103,710 BENGUET B 1.19 1.3 1.2 1.2 1.19 1.19 47,000 56,180 COAL ASIA HLDG 0.285 0.29 0.28 0.29 0.28 0.29 510,000 143,400 CENTURY PEAK 2.73 2.75 2.75 2.75 2.73 2.73 703,000 1,923,890 38,320 DIZON MINES 7.84 7.86 7.82 7.85 7.82 7.85 600 4,701 FERRONICKEL 1.47 1.48 1.5 1.52 1.47 1.47 13,726,000 20,679,270 36,000 GEOGRACE 0.222 0.226 0.226 0.226 0.22 0.222 1,080,000 238,260 110,000 LEPANTO A 0.107 0.11 0.107 0.11 0.105 0.11 2,870,000 303,130 LEPANTO B 0.115 0.121 0.12 0.121 0.12 0.121 50,000 6,010 (1,210) MANILA MINING A 0.0075 0.0079 0 0.0075 0.0075 0.0075 0.0075 3,000,000 22,500 MANILA MINING B 0.0076 0.008 0 0.0076 0.0076 0.0076 0.0076 1,000,000 7,600 MARCVENTURES 1.17 1.18 1.22 1.3 1.17 1.18 2,658,000 3,277,110 (53,180) NIHAO 1 1.02 1.04 1.04 1 1.02 42,000 42,140 27,000 NICKEL ASIA 2.25 2.28 2.27 2.28 2.24 2.25 2,043,000 4,627,050 (1,211,400) OMICO CORP 0.53 0.55 0.54 0.54 0.53 0.53 29,000 15,390 ORNTL PENINSULA 0.87 0.9 0.87 0.9 0.87 0.87 112,000 97,760 PX MINING 3.51 3.53 3.59 3.59 3.51 3.51 209,000 734,320 (196,620) SEMIRARA MINING 22.7 22.75 22.8 23.1 22.5 22.7 1,119,400 25,417,690 (9,478,595) ORNTL PETROL A 0.011 0.012 0.012 0.013 0.012 0.012 13,700,000 167,700 PHILODRILL 0.01 0.011 0.01 0.01 0.01 0.01 10,900,000 109,000 8,000 PHINMA PETRO 4.8 4.84 4.95 4.95 4.65 4.84 292,000 1,403,040 PXP ENERGY 7.35 7.38 7.39 7.4 7.3 7.35 459,500 3,378,168 (457,221)

PREFFERED HOUSE PREF A ALCO PREF B ALCO PREF C DD PREF SMC FB PREF 2 GLO PREF P GTCAP PREF A LR PREF MWIDE PREF PNX PREF 3A PNX PREF 3B PCOR PREF 3A PCOR PREF 3B SMC PREF 2B SMC PREF 2C SMC PREF 2D SMC PREF 2E SMC PREF 2F SMC PREF 2H SMC PREF 2I

94.15 98.35 98 98.1 960 479.4 871 0.98 99.7 99.5 103.2 1,010 1,010 75 76.05 72.5 72.5 73.75 71.05 73

PHIL. DEPOSITARY RECEIPTS ABS HLDG PDR

17

96.9 100 103.9 99 965 498 900 1 102.4 100 107.5 1,011 1,012 75.5 76.7 73.55 73 74 73.85 73.7

17.1

94.15 100 98 99 965 496 899.5 1 99.7 100 107.5 1011 1012 75 76.1 72.5 73 73.9 72.05 73.7

94.15 100 98 99 965 500 900 1 99.7 100 107.5 1,011 1,012 75 76.1 72.5 73 74 73.9 73.7

17.1

17.22

94.15 100 98 98.1 960 496 899.5 0.98 99.7 99.5 107.5 1,011 1,010 75 76 72.5 73 73.75 70.8 73.7

17.1

94.15 100 98 98.1 965 500 900 1 99.7 100 107.5 1,011 1,010 75 76.05 72.5 73 74 73.9 73.7

17.1

30 10 500 6,340 8,300 14,000 50 48,000 60 14,890 100 1,990 235 20,000 69,700 30 28,000 13,640 14,070 1,410

2,824.5 1,000 49,000 627,642 8,001,950 6,989,390 44,990 47,960 5,982 1,488,980 10,750 2,011,890 237,580 1,500,000 5,303,413 2,175 2,044,000 1,007,195 1,003,935 103,917

(1,500,000) 301,356 -

140,000

2,399,854

(575,126)

WARRANTS LR WARRANT

1.87

SMALL & MEDIUM ENTERPRISES ITALPINAS MAKATI FINANCE XURPAS

4.98 2.48 1.17

FIRST METRO ETF

120.4

1.9

1.87

1.92

1.85

1.86

106,000

197,750

5.01 2.69 1.18

4.83 2.48 1.18

5.04 2.48 1.19

4.83 2.48 1.15

5.01 2.48 1.18

450,000 5,000 5,749,000

2,237,650 12,400 6,703,050

EXHANGE TRADE FUNDS 121.7

120.9

121.7

119.6

121.7

13,930

1,683,062

(25,000) (6,940) 1,205

www.businessmirror.com.ph

Local firms urged to change biz models toward digitization

By Roderick L. Abad @rodrik_28

I

Contributor

P Converge Data Services Inc. (IPC) dares traditional companies to transform their business models as they shift to digitization.

This is in line with the latest study by RightScale, which shows that 77 percent of global enterprises and 80 percent of small and medium enterprises (SMEs) had their workloads up in the cloud.

IPC predicts that, at least, 55 percent of organizations worldwide will be digitizing their business methods and changing markets by 2020 via offering digitally enabled products and services.

With these new and upcoming trends, the business sector should

be agile and flexible as it continuously innovates and adopts new enterprise models.

“To cater to these demands, IPC strengthens its partnership with Google to provide business solutions such as the Chrome Enterprise that offers the complete cloud suite package, as well as multilayered security,” he said. “We strongly recommend that business owners implement and experience the advantages that these collaborative tools bring.”

IPC seeks to provide a smooth and satisfying experience through different collaborative cloud solutions such as Google’s Chrome Enterprise.

Apart from G Suite, it encompasses various devices and services like videoconferencing and cloud-

based apps, and features that increase business productivity.

Since the Chrome Enterprise gives organization-members their respective Chrome accounts, a single sign-in links them with the rest through videoconferencing, e-mailing, group messaging or simultaneously working on a single document.

The ePLDT company ties up with leading hardware vendors in the country to equip businesses with Google-powered devices that support the Chrome Enterprise suite, such as Hangouts Meet, Chromebook, Chromebit and Chromebox.

The Hangouts Meet hardware brings an organization together into one HD-resolution videoconference without complications during setup.

This is best combined with Chromebook, an essential tool that supports Chrome Enterprise features and apps.

The Google Chromebit is a candy-bar-sized computer that turns any HDMI monitor or TV screen into a computer, eliminating the need for a flash drive.

Also included in the enterprise suite is the Chromebox, a small and compact device that acts as the system unit of the package as it runs the Chrome OS. To provide businesses with topgrade assistance support, Chrome Enterprise hardware offerings also come with the Chrome OS Device Management License and Chromebox Hangouts Meet Support, together with IPC’s standard 24/7 local support.

SMEs in SE Asia seek to invest in technologies in next 3 years

S

MALL and medium enterprises (SMEs) across Southeast Asia look to invest in digital technologies within the next three years as the key enabler to drive new business propositions and user experiences, and deliver on significantly enhanced offerings. However, they face challenges around digital talent shortage and transformation, and cyber-security risks, as well as in determining how to incorporate a holistic strategy for continuous digital innovation, according to a new EY report, redesigning for the digital economy.

The study of about 370 mid-market SMEs with annual global revenues of between $20 million and $500 million across six core Southeast Asian markets (Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam) revealed that transformative technologies will overtake current technologies to become the investment priority in three years.

The study found that SMEs (FY 2019)

focus their investments in current technologies (77.2 percent), transformative technologies (76.4 percent) and fixed assets (74 percent). However, in three years’ time (FY 2022), respondents expect their investment priority to shift to transformative technologies (80.7 percent). Those that expect current technologies and fixed assets to be investment priorities in FY 2022 slipped to 76.9 percent and 72 percent, respectively.

Transformative technologies cover digital applications, such as artificial intelligence (AI), machine learning, blockchain and robotic process automation (RPA), while current technologies are defined as upgrades and expansions to existing infocomm technology (ICT) software, hardware and services.

Liew Nam Soon, EY Asean Markets Leader, said, “Companies are investing in conventional technologies as to drive businessas-usual performance. However, going

STOCK-MARKET OUTLOOK LAST WEEK

SHARE prices inched higher last week on slower inflation rates for June, which improved investors’ sentiment.

The benchmark Philippine Stock Exchange index (PSEi) gained 118.23 points to close at 8,117.94 points. The main index was down only twice during the week, but it moved up once inflation figures were announced.

“A slower inflation for June augurs well for consumer and investment spending, and would help support accommodative monetary policies from the local Central Bank,” online broker 2TradeAsia said.

Average volume of trade, however, was lower at P5.18 billion, while foreign investors were net sellers at P357.72 million.

Most of the subindices ended on the green led by the All Shares index that closed 51.9 points higher to 4,945.88 points; the Financials index rose 21.93 to 1,742.01; the Industrial index gained 286.57 to 11,988.32; the Holding Firms index climbed 94.2 to 7,797.21; the Property index soared 105.98 to 4,379.75; the Services index was down 12.25 to 1,699.04; and the Mining and Oil index fell 151.92 to 7,439.29.

For the week, gainers led losers 122 to 99, and 30 shares were unchanged.

Top gainers were Grand Plaza Hotel Corp., Arthaland Corp., Marcventures Holdings Inc., Philippine National Bank and Prime Media Holdings Inc. Top losers were Concrete Aggregates Corp. A and B shares, BHI Holdings Inc., Cirtek Holdings Philippines Corp. and Keppel Philippines Holdings Inc.

THIS WEEK

SHARE prices may go up this week still on positive reception of the market on the lower inflation rate.

“We are optimistic that the lower inflation rate will by a catalyst for the market’s increase this week. But the question is, will the index sustain the 8,100 point level and beyond?” said Justino Calaycay Jr., AVP head of research and client engagement at Phistocks Financial Inc. Meanwhile, Christopher Mangun, head of research at AAA Securities Inc., said that if the main index was able to break its resistance level of 8,150 points over the next weeks, the PSEi may hit all-time high by year-end.

“If it fails to rally, then we will see it lose another 500-600 points and trade sideways until the end of the year. I am more inclined to believe that the former scenario is what will play out. The next few weeks are going to be interesting,” he said.

STOCK PICKS

PHILSTOCKS recommended to trade the stock of Global-Estate Resorts Inc. (Geri), a unit of Megaworld Corp., as it is attractive in terms of the upside with its projects and can be a standout stock for the year.

“We think this stock is an outlier to the property industry and the market has not been recognized the value of Geri versus industry peers,” the broker said.

Geri closed last week at P1.38 per share.

Meanwhile, the broker advised to buy Puregold Price Club Inc. as consumer spending may increase during the second half of the year.

“We think that Puregold would be one of the companies that may benefit on the second half of the year as we see robust growth in the consumer sector. Additionally, its sustained financial and operating performance, and its plan for expansion make the company worth to buy,” it said.

Puregold shares closed on Friday at P43.80 apiece. VG Cabuag

forward, the sea change is that they see the value and potential that emerging technologies such as AI and machine learning bring.

Further, digitalization is not a one-off invest-

MUTUAL FUNDS

ment or project. Digital adoption is a journey that will require long-term organizational change, executive sponsorship and a different lens on investment horizons.”

July 5, 2019

NAV ONE YEAR THREE YEAR FIVE YEAR Y-T-D

PER SHARE RETURN* RETURN STOCK FUNDS PRIMARILY INVESTED IN PESO SECURITIES ALFM GROWTH FUND, INC. -A 268.96 6.75% -0.33% 1.17% 6.65% ATRAM ALPHA OPPORTUNITY FUND, INC. -A 1.6665 15.66% 8.06% 3.35% 15.66% ATRAM PHILIPPINE EQUITY OPPORTUNITY FUND, INC. -A 4.1742 4.89% -0.39% 0.38% 6.95% CLIMBS SHARE CAPITAL EQUITY INVESTMENT FUND CORP. -A 0.9591 9.22% N.A. N.A. 6.45% FIRST METRO CONSUMER FUND ON MSCI PHILS. IMI, INC. -A 0.8878 7.55% N.A. N.A. 8.18% FIRST METRO SAVE AND LEARN EQUITY FUND,INC. -A 5.5516 7.16% 0.74% 1.01% 5.28% MBG EQUITY INVESTMENT FUND, INC. -A 122.85 14.05% N.A. N.A. 5.75% ONE WEALTHY NATION FUND, INC. -A 0.893 5.38% -3.77% N.A. 6.73% PAMI EQUITY INDEX FUND, INC. -A 53.1935 9.34% 0.39% N.A. 8.07% PHILAM STRATEGIC GROWTH FUND, INC. -A 552.59 7.99% -0.59% 0.95% 7.35% PHILEQUITY DIVIDEND YIELD FUND, INC. -A 1.3475 9.73% 1.46% 3.37% 7.46% PHILEQUITY FUND, INC. -A 39.5509 10.28% 2.11% 2.83% 7.97% PHILEQUITY MSCI PHILIPPINE INDEX FUND, INC. -A,3 1.0665 N.A. N.A. N.A. N.A. PHILEQUITY PSE INDEX FUND INC. -A 5.3969 10.35% 1.36% 3.19% 8.83% PHILIPPINE STOCK INDEX FUND CORP. -A 901.27 10.4% 1.08% 3.14% 8.79% SOLDIVO STRATEGIC GROWTH FUND, INC. -A 0.9453 11.57% 0.57% N.A. 9.92% SUN LIFE PROSPERITY PHILIPPINE EQUITY FUND, INC. -A 4.4078 10.37% 1.31% 2.61% 8.6% SUN LIFE PROSPERITY PHILIPPINE STOCK INDEX FUND, INC. -A 1.0354 9.82% 1.03% N.A. 8.5% UNITED FUND, INC. -A 3.7842 8.61% 2.77% 3.3% 8.1% EXCHANGE TRADED FUND FIRST METRO PHIL. EQUITY EXCHANGE TRADED FUND, INC. -A,C,2 120.6772 10.83% 1.98% 4.21% 8.97% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES ATRAM ASIAPLUS EQUITY FUND, INC. -B $1.0089 -0.57% 6.3% -0.03% 8.59% SUN LIFE PROSPERITY WORLD VOYAGER FUND, INC. -A $1.3225 4.13% 9.76% N.A. 19.66% BALANCED FUNDS PRIMARILY INVESTED IN PESO SECURITIES ATRAM DYNAMIC ALLOCATION FUND, INC. -A 1.757 6.16% -1.55% -1.07% 6.41% ATRAM PHILIPPINE BALANCED FUND, INC. -A 2.3467 4.61% -0.08% 1% 6.22% FIRST METRO SAVE AND LEARN BALANCED FUND INC. -A 2.6883 5.71% 0.1% -1.06% 5.71% GREPALIFE BALANCED FUND CORPORATION -A 1.3657 3.67% N.A. N.A. 4.71% NCM MUTUAL FUND OF THE PHILS., INC. -A 1.9561 6.81% 0.47% 1.48% 6.13% PAMI HORIZON FUND, INC. -A 3.779 6.63% -0.75% 0.71% 7.08% PHILAM FUND, INC. -A 17.0315 7.62% -0.53% 0.76% 7.06% SOLIDARITAS FUND, INC. -A 2.1657 5.5% 0.54% 1.89% 4.66% SUN LIFE OF CANADA PROSPERITY BALANCED FUND, INC. -A 3.9278 8.88% 0.44% 1.75% 7.57% SUN LIFE PROSPERITY ACHIEVER FUND 2028, INC. -A,D,4 1.029 N.A. N.A. N.A. N.A. SUN LIFE PROSPERITY ACHIEVER FUND 2038, INC. -A,D,4 1.0294 N.A. N.A. N.A. N.A. SUN LIFE PROSPERITY ACHIEVER FUND 2048, INC. -A,D,4 1.026 N.A. N.A. N.A. N.A. SUN LIFE PROSPERITY DYNAMIC FUND, INC. -A 1.0071 9.72% 0.7% 1.43% 9.27% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES COCOLIFE DOLLAR FUND BUILDER, INC. -A $0.03761 8.32% 1.66% 2.1% 6.54% PAMI ASIA BALANCED FUND, INC. -A $1.001 -0.06% 3.83% -0.66% 9.55% SUN LIFE PROSPERITY DOLLAR ADVANTAGE FUND, INC. -A $3.8054 5.04% 6.83% 2.9% 15.02% SUN LIFE PROSPERITY DOLLAR WELLSPRING FUND, INC. -A $1.1201 5.42% 4.38% N.A. 10.9% BOND FUNDS PRIMARILY INVESTED IN PESO SECURITIES ALFM PESO BOND FUND, INC. -A 350.33 3.39% 1.97% 2.21% 2% ATRAM CORPORATE BOND FUND, INC. -A,1 1.9003 2.05% -0.19% -0.11% 2.21% COCOLIFE FIXED INCOME FUND, INC. -A 3.05 5.48% 5.27% 5.27% 2.48% EKKLESIA MUTUAL FUND INC. -A 2.1897 3.39% 0.92% 1.95% 2.84% FIRST METRO SAVE AND LEARN FIXED INCOME FUND,INC. -A 2.3168 4.54% 1.01% 1.42% 5.07% GREPALIFE FIXED INCOME FUND CORP. -A P 1.6056 2.27% -1.75% 0.1% 2.63% PHILAM BOND FUND, INC. -A 4.1936 6.45% -0.2% 1.38% 6.99% PHILEQUITY PESO BOND FUND, INC. -A 3.6825 5.46% 0.71% 1.47% 4.7% SOLDIVO BOND FUND, INC. -A 0.9386 4.02% -0.62% N.A. 5.32% SUN LIFE OF CANADA PROSPERITY BOND FUND, INC. -A 2.9679 8.42% 1.12% 2.23% 7.31% SUN LIFE PROSPERITY GS FUND, INC. -A 1.6481 8.32% 0.63% 1.75% 7.03% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES ALFM DOLLAR BOND FUND, INC. -A $459.02 3.77% 1.7% 2.76% 2.37% ALFM EURO BOND FUND, INC. -A Є218.12 2.44% 1.49% 1.54% 2.56% ATRAM TOTAL RETURN DOLLAR BOND FUND, INC. -B $1.1853 6.7% 1.8% 2.49% 5.29% FIRST METRO SAVE AND LEARN DOLLAR BOND FUND, INC. -A $0.0257 4.05% 0.92% N.A. 3.63% GREPALIFE DOLLAR BOND FUND CORP. -A $1.7155 0.72% -1.96% 0.65% 1.5% PAMI GLOBAL BOND FUND, INC -A $1.0898 5.37% -0.34% -1.91% 5.16% PHILAM DOLLAR BOND FUND, INC. -A $2.3578 10.03% 1.24% 3.36% 8.61% PHILEQUITY DOLLAR INCOME FUND INC. -A $0.0593297 4.59% 1.63% 1.86% 4.09% SUN LIFE PROSPERITY DOLLAR ABUNDANCE FUND, INC. -A $3.0984 6.69% 0.34% 2.8% 7.88% MONEY MARKET FUNDS PRIMARILY INVESTED IN PESO SECURITIES ALFM MONEY MARKET FUND, INC. -A 123.6 3.73% 2.43% 1.95% 2.25% FIRST METRO SAVE AND LEARN MONEY MARKET FUND, INC. -A,5 1.0153 N.A. N.A. N.A. N.A. PHILAM MANAGED INCOME FUND, INC. -A 1.2163 4.02% 1.78% 1.09% 2.91% SUN LIFE PROSPERITY MONEY MARKET FUND, INC. -A 1.2453 3.73% 2.67% 2.04% 2.14% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES SUN LIFE PROSPERITY DOLLAR STARTER FUND, INC. -A $1.0284 2.16% N.A. N.A. 1.23%

A - NAVPS AS OF THE PREVIOUS BANKING DAY. B - NAVPS AS OF TWO BANKING DAYS AGO. C - LISTED IN THE PSE. D - IN NET ASSET VALUE PER UNIT (NAVPU).

1 - ADJUSTED DUE TO CASH DIVIDEND ISSUANCE LAST JANUARY 29, 2018. 2 - ADJUSTED DUE TO STOCK DIVIDEND ISSUANCE LAST JUNE 5, 2018.

3 - LAUNCH DATE IS JANUARY 3, 2019. 4 - LAUNCH DATE IS JANUARY 28, 2019. 5 - LAUNCH DATE IS FEBRUARY 1, 2019.

www.businessmirror.com.ph

Banking&Finance BusinessMirror

Perspectives

Do ‘sin’ taxes change anything?

Y

OU have to be careful when taxing products. Levies on tea have been known to inspire wars of independence. Yet, governments, having set a precedent by taxing alcohol, tobacco and fuel, are asking consumers across the world to pay for the privilege of consuming a range of hitherto blameless items, including sugary soft drinks and high-fat fast foods.

“We have seen a huge growth in the whole area and expansion into new products,” says David Duffy, partner, Indirect Tax, KPMG in Ireland, and head of KPMG’s Global Indirect Tax Policy Group.

Duffy points out it is estimated that there is now a tax on sugary drinks in at least 35 countries, some 20 of which have been introduced since 2015. This shift is partly driven by changing public attitudes to what it is—and isn’t—acceptable to tax.

Gover nments are also reacting to worries over the health and environmental impact of consuming certain products and have also found these taxes to be a politically convenient way to increase revenue.

For all of those reasons, this looks like a trend that is only going to gather momentum.

“My expectation is that there will be more of these taxes, perhaps on high-salt and high-fat containing foods, for example,” Duffy said. “Health will continue to be a focus in response to obesity, and environmental taxes are also well established.”

The attraction for governments is obvious. In marked contrast to traditional revenue raisers, such as taxes on corporate or personal income, “sin” taxes on consumption can be less troublesome politically—voters at least have the choice of whether to pay up and continue to enjoy their favorite vice, or save money and abstain.

“The feeling is that governments have to start somewhere, and it can be more difficult for people to argue against a tax, which at least in theory is designed to make them healthier,” Duffy added.

Reducing sugar consumption

IN 2013, the Mexican government introduced a tax on high-sugar soft drinks and on calorie-dense foods like national favorites tacos, tortillas and fried chicken in what was, ostensibly, an effort to tackle the country’s growing obesity crisis. Type 2 diabetes kills an estimated 70,000 Mex icans every year.

Before the tax was introduced, the average Mexican drank no fewer than 163 liters of sugary carbonated beverages a year—40 percent more than Americans. There’s even a word in Spanish for soft-drink addicts—cocacolera.

The argument was that taxing the stuff would raise prices and cut consumption, boosting the nation’s health and generating much-needed revenue.

It seems to have worked, on one level at least—consumption fell by an average of 7.6 percent per year in t he t wo years follow ing the introduction of the levy, roughly equivalent to 5 US cents per liter.

Perhaps encouraged by Mexico’s experiment, the United Kingdom followed suit in April 2018, introducing its own Soft Drinks Industry Levy. This amounts to a tax of 24 US cents per liter for drinks containing over 5 grams of sugar per 100 milliliters, and 31 US cents for those with over 8 grams per 100 ml.

Although obesity and diabetes levels are lower in the UK than in Mexico, they are among the highest in Europe. There is widespread

concern that British children consume too much sugar—research from Public Health England recently claimed that the average 10-yearold child in the UK has already had enough sugar to last until they are 18, were they to consume “only” the maximum recommended daily amount.

One aspect of sin taxes that appeals to cash-strapped governments is that whatever happens, it can be painted as a win. Either revenues go up, or consumption falls.

No wonder the motives for applying sin taxes can be mixed, says Prof. Mohan Sodhi of London’s Cass Business School.

He points out that in India alcohol consumption is rising despite heav y t a x at ion. “A lcohol adver tising is i l lega l but companies find a way around it. Almost all the big TV shows feature people dr inking heav ily, which creates huge demand.”

So what has turned out to be a lucrative source of tax revenue can be justified as an attempt to reduce consumption. “There is asymmetric information between the consumer and the company. If governments really want to reduce consumption of harmful substances, the only thing that works is addressing that asymmetric information through public education campaigns. Education works, but it makes governments poorer, not richer, because t hose c a mpa ig ns cost mone y,” says Sodhi.

Influencing citizens

EXCISE duty on alcohol is seen as one of the original sin taxes— duty on spirits was introduced in the UK in 1643, and on beer in 1690. But the concept of taxes aimed at inf luencing or controlling consumers’ behavior goes back much further.

T he Roma n sumpt u a r y l aws were introduced to underline social status and limit what people cou ld spend on food, c lot hing and luxuries.

Taxes on tobacco substantially pre-date the discovery in the 1950s of the link to lung cancer, being first introduced in England in 1660 and the US in 1864. Even the sugar tax has a longer history than you might think—the Danes introduced a tax on soft drinks in the 1930s. By 2013, it was bringing in $68 million a year, but the government repealed it anyway.

W hy? B ec au se i l lega l s a les of soft drinks smuggled across the border were also costing an estimated $44 million in lost sales tax, as well as fueling something of a crime wave.

To these historic trends, add the impact of modern globalized markets and you have the perfect economic climate for indirect taxes aimed at consumption rather than production.

“In most countries, excise taxes are a substantial source of revenue.

But the trend for lower tariffs on international trade and more global trade means that those revenues tend to be reducing. The authorities are looking for new taxes to replace them.”

The excerpt was taken from the KPMG article series, titled “Consumer Currents: Issues driving consumer organizations.” © 2019 R.G. Manabat & Co., a Philippine partnership and a member-firm of the KPMG network of independent member-f irms aff iliated 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.

Monday, July 8, 2019

B3

Insurance firm eyes vehicle to park money for long term

A

LLIANZ PNB Life Insurance Inc. (Allianz PNB) is keener to invest in longterm infrastructure projects to enable life insurance companies to leverage on better hedging investment risks.

“What the government should leverage better is long-term investments,” Allianz PNB Life President and CEO Alexander Grenz said in a news conference last Friday in Makati City. “So we are looking for vehicles, which gives us possibility to hedge basically our risk and hedge our investments over long term.”

He said insurance companies like Allianz PNB are looking to invest its funds for a period as long as 20 years to 30 years, which the current regulations do not provide as of yet.

“And we are speaking not only about the five, seven and 10 years, which are the typical in the market but if we could find things that help us to invest 20 years to 30 years with certain guaranteed years; that is something life insurance is highly interactive,” Grenz said. “I think there’s still a possibility to improve that and to leverage better life insurance companies.

So I think it’s a missed opportunity that such vehicles and financial instruments are not catering to the life insurance, particularly.”

He explained that although it’s good that the government is encouraging insurance companies to invest in infrastructure projects, under its “Build, Build, Build” program, the private sector also needs to offer more projects made for long-term investments.

According to Grenz, the Philippine Life Insurance Association is facilitating discussion with the Insurance Commission for such platform.

“However, the IC, I don’t think is putting up regulations for that. But in infrastr ucture, you a lso see ver y longterm projects. And some of these longer-term projects we’ll be interested in, possibly investments.”

Last February, the IC gave the go-ahead to insurance companies in the country to invest their funds in state-led infrastructure projects, in a bid to boost the growth of the Philippine economy and help these firms meet the higher net wor th requirement imposed on them for this year.

Insurance Commissioner Dennis B. Funa issued Circular Letter 2018-74, which enu-

merates the guidelines on how local insurance companies can invest their funds in the infrastructure projects of the government under the Philippine Development Plan (PDP).

Under that circular, insurance and reinsurance firms may now invest in debt or equity security instruments for inf rastr uct ure projects under t he PDP, participating either through the project proponents, financiers or sponsors, or through operation and maintenance contracts.

The circular creates a new investment channel for insurers and opens new opportunities for insurers to improve riskadjusted returns, portfolio diversification and asset-liability matching.

Furthermore, an important feature of the new regulation is methodology in calculating the risk factors of the investments in infrastructure, in order to encourage insurer investment while still safeguarding their financial stability.

The activities that may be undertaken as provided under the PDP include highways, railways, nonrail-based transit facilities, port infrastructure, airports, warehouses, environmental and solid waste management-related facilities, and climate-change mitigation and adaptation infrastructure projects.

The circular states that investments in infrastructure projects without guaranty or contingent liability fund may be considered as reserve investment. Rea Cu

Innovation, key to SMC’s success–CFO

I

NNOVATION—wanting to find better solutions to address people’s needs—was one of the main drivers of the diversification of conglomerate San Miguel Corp. (SMC) over a decade ago, and a critical factor that enabled the 128-year-old organization to breach the P1-trillion mark in revenues in 2018, two years ahead of its target, according to 2018 ING Financial Executives Institute of the Philippines (Finex) CFO of the Year and SMC Chief Financial Officer Ferdinand K. Constantino.

“It was the innovative thinking and the vision of our president and chief operating officer, Ramon S. Ang, that started it all. He reimagined San Miguel as a company that could better answer many unmet needs of Filipinos: reliable, affordable power; secure, accessible fuel supply; better, future-ready infrastructure. Then he went on and led that transformation,” Constantino said. “He wanted for San Miguel to have a positive impact on the lives of Filipinos and for it to be a true catalyst for economic growth.”

As CFO, Constantino’s role in SMC’s transformation, likewise, evolved: from being the number cruncher, to budget planner and endorser, to being an active player in mapping the direction of the business.

“My job is to ensure, together with my partners, that we have enough funding, the right business controls, good governance, execution support to pursue and implement everything properly. Beyond that, I also have to help ensure that change is managed well,” he added. “Having been in San Miguel for some 46 years, I think I also offered a measure of stability for management, for employees, for the investing community and shareholders during major transitions in our history.”

If there is one Filipino multinational conglomerate that has transformed its business model so dramatically, it is SMC.

Gone are the days when the mere mention of “San Miguel” would connote just beer or food. Today, SMC is as much a leader in power generation, oil and fuels, and infrastructure, as it is in the food and beverage and packaging industries.

Constantino’s contributions to SMC over more than four decades were recognized last year when he earned the prestigious ING Finex CFO of the Year Award, given by Dutch financial firm ING Bank N.V. and the Finex. The recognition was reaffirmed last April when Constantino was, likewise, named “CFO of the Year” by a regional publication.

B4 Monday, July 8, 2019

Citystate Tower Hotel as a wedding venue

MARCO POLO ORTIGAS MANILA, A CUT ABOVE THE REST ON 5TH ANNIVERSARY

M M

ORE and more couples find the Citystate Tower Hotel as the perfect venue for their dream wedding. Whether simple or grand, their celebration is made more meaningful and more elegant at the center of the culturally rich and historic district of Ermita.

The Citystate Tower Hotel gets booked for wedding events almost every week. One of the reasons for its popularity among couples is its close proximity to the Ermita Church, Malate Church, Paco Church, San Sebastian Church, and even the churches in Intramuros and Tondo.

For those who prefer to hold the wedding ceremony and reception in one place, the Citystate Tower Hotel can also set up the function halls for Christian, Muslim and civil weddings.

The Citystate Tower Hotel offers several function rooms that can accommodate from 30 to 300 guests.

Individually, these function rooms exude an ambience perfect for a loving get-together with family, relatives and friends. For a bigger crowd, the function halls can

be converted into one huge ballroom.

A personalized backdrop, alluring dashes of assorted flowers as centerpieces for the Presidential Table, sponsors’, guests’ and the buffet tables, and elegant skirting for the tables following the color motif of the wedding all work together to make the Citystate Tower Hotel truly the finest venue for a wedding reception.

Wedding packages also include a wedding cake, a pair of doves, lights and sound system and a sufficient number of giveaways as souvenirs. These packages can be customized to meet the budget and other requirements of the clients for their big day.

On top of all these offerings, the Citystate Tower Hotel provides a delectable selection of set meals that make a wedding a truly memorable banquet.

The Citystate Tower Hotel is at 1315 A. Mabini corner Padre Faura Streets, Ermita, Manila. Queries can be made through res@citystatetowerhotel.com or www. citystatetowerhotel.com.ph.

ARCO Polo Ortigas Manila kicks off the season in a 5-Star fashion.

The hotel, led by general manager Frank Reichenbach, looks back on its multiple industry and global recognitions since it formally opened its doors on July 9, 2014, as it continues to raise the service standards in the hospitality industry.

“Our first five years of operations have truly been meaningful, true to our purpose as a Marco Polo hotel. Within this time, Marco Polo Ortigas Manila received recognition as a Forbes Travel Guide 5-Star hotel for three straight years, and has consistently performed as the top-rated hotel in Pasig City on

TripAdvisor,” Reichenbach said. “We are humbled by the support we receive from our partners, peers from the tourism industry and, most special, our guests. Our team remains passionate in delivering service excellence as one of the world’s leading 5-Star hotels,” he added.

Marco Polo Ortigas Manila is delighted to announce key promotions that guests can look forward to beginning July 9, coinciding with its fifth anniversary.

Guests who reserve stays in any of the Hotel’s Continental Club rooms or suites at their best available rates are able to enjoy their choice of premium service in their visit. They may choose one service

from the following: Buffet lunch for two at Cucina, buffet dinner for two at Cucina, Aperitivo for two at Vu’s Sky bar and lounge, a solo hourlong spa treatment at Flow Spa, or one-way airport transfer (via sedan). Reservations may be made from July 9 to August 31, and applies to stays until December 30. To book, e-mail at resv.mnl@marcopolohotels.com.

Award-winning restaurant Lung Hin is featuring a one-day exclusive promotion, also on July 9, for its deep-fried crispy Hong Kong pigeon specialty dish for P555+, during lunch and dinner. This authentic staple in Cantonese cuisine is masterfully prepared by Lung Hin’s Hong Kongexperienced culinary team led Executive Chinese Chef Ken Leung.

Guests can also visit Cucina for dinner on the same day, on the 24th-floor level, in support of the hotel’s fund-raising activities. For every table of five, the restaurant will donate the cost of the fifth paying guest to the Marco Polo Ortigas Manila community fund. Past projects benefited local schools in high-risk communities within Pasig City.

Guests can look forward to even more delightful promotions in celebration of Marco Polo Ortigas Manila’s fifth anniversary. For more information, log on to www.marcopolohotels.com.

SERENA 2-FOR-2 AT WIMBLEDON

106TH TOUR DE FRANCE ON! The pack rides during the first stage of the Tour de France over a 194.5-kilometer outand-back course in Brussels on Saturday. AP

By Howard Fendrich

W

The Associated Press

IMBLEDON, England—Serena Williams walked into her news conference at Wimbledon holding her phone, a cold bottle of water and a statistics sheet that reinforced what was clear from watching her third-round singles victory on Saturday.

She is as close to being back to her best as she’s been in a while.

Williams, hampered for much of this season by injuries or illness, took a step forward against 18th-seeded Julia Goerges, a powerful hitter in her own right who lost to the American in last year’s semifinals at the All England Club.

Sure enough, Williams hit serves at up to 120 mph, put in a tournament-best 71 percent of her first serves, never faced so much as one break point and won 6-3, 6-4.

“It’s been an arduous year for me,” said Williams, who had competed only 12 times in 2019 until this week, mostly because of a bothersome left knee that finally is pain-free.

“So every match, I’m hoping to improve tons.”

Maybe it was a good thing she played twice on Saturday, then.

About four-and-a-half hours after getting past Goerges at No. 1 Court, Williams headed out to Centre Court for her much-ballyhooed debut as Andy Murray’s teammate in mixed doubles. Other than one slip near the net when she lost her footing in the first set—she was fine and laughed it off—Williams looked good during the 6-4, 6-1 win against Andreas Mies and Alexa Guarachi, including smacking one serve at 122 mph, equaling the fastest hit in singles by any woman (her, naturally) during the tournament.

“Andy and I both love the competition. I know we both want to do well,” Williams said. “We’re not here just for show.”

She rarely is.

But if Williams is going to win an eighth singles championship at Wimbledon, and a record-tying 24th Grand Slam singles title overall, she will want more performances like the one she gave against Goerges.

Forceful, yes, but nothing was forced.

“I play pretty good when I’m calm, but also superintense, just finding the balance in between there,” the 37-year-old Williams said. “So it’s a hard balance to find, because sometimes when I’m too calm, I don’t have enough energy. Still trying to find that balance.”

Two more key stats on the paper she brought to her media session: She produced more winners than unforced errors, 19-15, while Goerges finished with 32 forced errors, a reflection of just how difficult Williams can make it for opponents to handle shots she sends their way.

Goerges credited Williams with causing havoc with her returns, as well.

After averaging 10 aces in the

Sports BusinessMirror

C1

| Monday, July 8, 2019 mirror_sports@yahoo.com.ph Editor: Jun Lomibao

first two rounds, Goerges was limited to half that many.

Of more significance, perhaps, was that Williams’s stinging replies to serves immediately put her in control of points.

“It’s fair to say that she builds up enormous pressure with her returns,” Goerges said. “That means I need to go to the limit in my service games.”

After the traditional middle Sunday off, action resumes on Monday with all fourth-round men’s and women’s singles matches.

Williams, who is seeded 11th, will face No. 30 Carla Suarez Navarro, while the other matchups on the top half of the women’s field established on Saturday are No. 1 Ash Barty, who has a 15-match winning streak, against unseeded Alison Riske of the US; No. 21 Elise Mertens against Barbora Strycova; and two-time champion Petra Kvitova against No. 19 Johanna Konta of Britain.

On the bottom half, it will be the 15-year-old American sensation Coco Gauff versus No. 7 Simona Halep; No. 3 Karolina Pliskova versus Karolina Muchova; No. 8 Elina Svitolina versus No. 24 Petra Martic; and Dayana Yastremska versus Shuai Zhang.

In the men’s draw, eight-time champion Roger Federer and two-time winner Rafael Nadal both won in straight sets on Saturday to move closer to a semifinal showdown.

Federer’s record 17th visit to the fourth round at Wimbledon

will come against No. 17 Matteo Berrettini, an Italian never before this far at the grass-court tournament.

“For me, I’m very happy how it’s going so far,” said Federer, a 7-5, 6-2, 7-6 (4) winner over No. 27 Lucas Pouille. “I hope it’s going to take a special performance from somebody to stop me, not just a mediocre performance.”

Nadal, who defeated Jo-Wilfried Tsonga 6-2, 6-3, 6-2, meets unseeded Joao Sousa next.

No. 8 Kei Nishikori meets Mikhail Kukushkin, and Sam Querrey plays Tennys Sandgren in the first Week 2 matchup at Wimbledon between two American men since Pete Sampras beat Jan-Michael Gambill in the 2000 quarterfinals.

Kukushkin’s four-set victory over Jan-Lennard Struff at Court 12 was interrupted when a 60-year-old female spectator had to be resuscitated after collapsing.

Sandgren beat No. 12 Fabio Fognini 6-3, 7-6 (12), 6-3 at tiny Court 14, with its 318 seating capacity. Fognini unleashed a tirade in Italian at one moment, saying he wanted a bomb to explode at the All England Club. He later said his comments came in the heat of the moment because he was upset about not playing well and the condition of the court’s grass.

“If I offended anyone, I apologize,” said the volatile Fognini, who was fined $27,500 at Wimbledon in 2014 for unsportsmanlike conduct and is in a Grand Slam probationary period after getting kicked out of the 2017 US Open. “That definitely wasn’t my intention.”

SERENA WILLIAMS—with doubles partner Andy Murray—is as close to being back to her best as she’s been in a while. AP

Fognini: Wimbledon should be bombed W

DURING a three-set loss at tiny Court 14, 10th-ranked Fabio Fognini refers in Italian to the “damned English” and says he wishes “a bomb would explode at the club.” AP

IMBLEDON, England—Already on Grand Slam probation, top-10 player Fabio Fognini could be in more trouble after saying during his third-round match at Wimbledon on Saturday that he wanted a bomb to hit the All England Club.

During a three-set loss to Tennys Sandgren at tiny Court 14, the 10th-ranked Fognini referred in Italian to the “damned English” and said he wished “a bomb would explode at the club.”

More than 1,000 bombs fell in the area during World War II, destroying thousands of nearby homes, and 16 fell on the tournament grounds.

One hit Centre Court.

At his news conference on Saturday, Fognini said his comments came in the heat of the moment. He said he was upset about not playing well and the condition of the court’s grass.

“If I offended anyone, I apologize,” Fognini said in Italian.

“That definitely wasn’t my intention.”

The volatile Fognini, who is married to 2015 US Open champion Flavia Pennetta, also bloodied knuckles on his right hand after punching his racket during the match against Sandgren.

An All England Club spokesman said there was no immediate comment from tournament officials.

But the episode will be investigated to determine whether it rises to the level of a major offense, because he is still under a two-year probation stemming from when he insulted a female chair umpire at the 2017 US Open and got kicked out of that tournament.

In October 2017, the Grand Slam Board said Fognini would be suspended for two major tournaments if he commits another major offense before the end of this year.

He was docked a then-record $27,500 of his prize money at Wimbledon in 2014 for a series of outbursts during a firstround victory.

Meanwhile, when Sam Querrey and Tennys Sandgren play on Monday on Court 12 at Wimbledon, it will be the first meeting between two American men in the fourth round or later at the All England Club in 19 years.

It’s also the first such matchup at any Grand Slam tournament since 2007.

“At least there will be one in the quarters, for sure, which is cool. I like that. I like the fact that there will be one guy pushing forward and looking to make an even farther run,” Sandgren said. “If there’s one that makes a run, that means we don’t have to hear the ‘They’re all gone by the second round’ stuff.”

Sandgren, ranked 94th, advanced on Saturday by eliminating Fognini. Querrey, ranked 65th, also won in straight sets, beating John Millman of Australia 7-6 (3), 7-6 (8), 6-3 with the help of 27 aces.

“Felt great to kind of sneak by in those tiebreakers,”

Querrey said.

The last time two men from the US played in Week 2 at Wimbledon was 2000, when Pete Sampras beat Jan-Michael Gambill in the quarterfinals. Andy Roddick defeated Mardy Fish in the 2007 Australian Open quarterfinals.

Even though Querrey, who is from California, was a semifinalist at Wimbledon in 2017, and a quarterfinalist the year before—eliminating the defending champion en route each time—he was not expecting much of a run now.

He hadn’t won a Grand Slam match in 2019 until this week and was sidelined for a chunk of time with an abdominal injury.

Sandgren, who is from Tennessee, didn’t exactly love his own chances, either. He came into Wimbledon on a ninematch losing skid in tour-level action.

No one, he said on Saturday, should have expected much from him.

“You wouldn’t have been smart if you’d done that,” said Sandgren, whose best showing at a major was getting to the 2017 Australian Open quarterfinals. “Let’s say that would have been a bad call.”

He and Querrey have never played against each other on tour, although they have practiced together.

As for how much scouting Sandgren has done during Week 1, he said with a laugh: “I haven’t watched much, but when I do watch, he hits an ace.” AP

Spo

Business

C2 Monday, July 8, 2019

RAPTORS: BYE, KAWHI! L

AS VEGAS—Toronto said farewell to Kawhi Leonard. Miami said hello to Jimmy Butler. The Lakers finally have Anthony Davis.

Free agency became real Saturday.

The four-team trade that sent Butler to the Heat—with a new $142-million, four-year contract—was one of the first big moves to get done once the league’s off-season moratorium ended. But many of the other massive moves, such as Leonard’s signing with the Los Angeles Clippers and the trade to have Paul George join him, remained in the paperwork stage.

Butler acknowledged that his longtime friend, fellow former Marquette star and now-retired Heat guard Dwyane Wade “may have had a little bit of something to do with” his move to Miami.

“I don’t think anybody can take over the role that Dwyane Tyrone Wade Jr. had for this organization and for the game of basketball here,” Butler said when asked about taking over as a leader in Miami. “I’m just fortunate and blessed enough to be able to call him a friend, mentor, role model. He’s done so much for me.”

There was no real worry about the pending transactions around the league: Some deals, including a few that got agreed upon very quickly when the negotiating window opened June 30, simply needed to be slotted in a certain order to make the NBA’s money rules work.

Others could get done as soon as the National Basketball Association (NBA) said at 12:01 p.m.

Eastern on Saturday that the new league year was officially under way.

“I think it’s going to be a really exciting season,” said Portland’s Damian Lillard, who wasn’t a free agent and won’t be for a long time after signing a $196-million, four-year extension that could keep him with the Trail Blazers until 2025. “Obviously, it’s exciting to see players change teams. You know people love that.”

KAWHI LEONARD signs up with the Los Angeles Clippers. AP

Not all people.

Not always, anyway.

Toronto awoke to the news Saturday that two starters from this past season’s NBA champion Raptors—Leonard and Danny Green—were moving on. Leonard picked the Clippers and will sign a $142-million, four-year deal and George will be joining him in a massive trade that will send Danilo Gallinari, Shai Gilgeous-Alexander and five

draft picks to Oklahoma City in a blockbuster deal that shook up both conferences. Green is joining the Lakers on a two-year deal.

“Teams are making moves to win now and that’s obvious,” said Heat forward Meyers Leonard, who left Portland and is part of the four-team Butler deal. “The Clippers, for example, they’re in ‘win-now’ mode. They played well last year in the playoffs. They go and get Kawhi and PG and all

these other players. OKC has to be thinking, ‘OK, we just got a ton of draft picks.’ So people are positioning themselves in different ways.”

The Clippers and Thunder couldn’t talk about their deal until it was finalized.

The Raptors didn’t have to adhere to such rules.

“On behalf of the Raptors, I say a very heartfelt thank you to Kawhi and to Danny, and we send them and their families nothing but good wishes,” Raptors President Masai Ujiri said. “As an organization, the Raptors will focus on the future and continue our pursuit of a second championship.”

Davis wasn’t a free agent, but the Lakers’ move to get him surely played a role in plenty of other moves during free agency.

The Lakers’ trade for Davis got done

Saturday night, and it cost LA a ransom. Lonzo Ball, Josh Hart, Brandon Ingram, the draft rights to De’Andre Hunter, two first-round picks, a first-round pick swap and cash went to the Pelicans—and then the Lakers had to send Isaac Bonga, Jemerrio Jones, Moritz Wagner and a future second-rounder to Washington. The Wizards sent cash to the Pelicans.

“Anthony Davis is arguably the most dominant all-around young player in today’s NBA,” Lakers General Manager Rob Pelinka said. “Anthony represents everything we stand for, with his unwavering commitment to excellence both as a person and an athlete. This is a historic moment for the Lakers franchise, and we couldn’t be more proud to have him.” AP

I.O.C. LIFTS BAN ON KUWAIT

L

AUSANNE, Switzerland—The International Olympic Committee (IOC) said it has fully lifted a suspension from Kuwait’s Olympic committee, imposed in 2015 when the national government passed a law that compromised the independence of sports bodies.

The suspension meant Kuwaitis at the 2016 Rio de Janeiro Olympics competed as an “Independent Olympic Athlete” without their national flag and anthem.

The IOC partially lifted the ban last year ahead of the Asian Games and Buenos Aires Youth Olympics, while awaiting new sports elections and a government promise not to interfere in Kuwait’s Olympic business.

Last weekend the Kuwait Olympic Committee elected younger leaders and noted its “desire to usher in a new generation.”

The KOC’s secretary-general is Husain al Musallam, a vice president of swimming governing body Fina and longtime aide to Olympic power broker Sheikh Ahmad al Fahad al Sabah.

Sheikh Ahmad has suspended himself from IOC work pending his trial in Geneva in a forgery case. He denies wrongdoing.

The sheikh and al Musallam were identified in a US federal court in 2017 as unindicted co-conspirators in a bribery case.

A Fifa audit committee member from Guam pleaded guilty to taking payments from Kuwaiti officials seeking influence in soccer elections. AP

Messi hits referees, corruption after Copa América red card

S

ÃO PAULO—After another frustrating Copa América ending, Lionel Messi boycotted the medal ceremony to protest the refereeing and “corruption,” claiming Argentina had not been treated fairly.

Following defeats in the last two finals, Messi had a sudden end to this year’s tournament by being sent off in the third-place game between Argentina and Chile on Saturday.

Messi was red carded after getting into a first-half shoving match with Chile midfielder Gary Medel, who also was ejected.

Argentina won 2-1 but Messi didn’t show up for the medal ceremony to protest the refereeing.

He had harsh words after the match, saying “we shouldn’t take part in this corruption.”

Messi had several objections.

“There was lack of respect toward us during this Copa América,” he said. “We could have done better, but they didn’t let us make it to the final. Corruption and the referees are not letting the fans enjoy football. This is ruining football.”

Messi had already loudly complained against Copa América refereeing after Argentina’s loss to Brazil in the semifinals, hinting the result was expected because the hosts were allegedly in charge of South American soccer.

“Maybe what I said last time played a part today,” Messi said. “A yellow card should have been enough for both players.”

He said he expected Brazil to win Sunday’s final against Peru, claiming it was already set up for the hosts’ victory.

When asked if he feared being suspended for his comments, Messi said “the truth needed to be told.”

Conmebol, South America’s soccer confederation, released a statement condemning the “unacceptable” and “baseless accusations” that discredited the Copa América’s integrity.

“In football, sometimes you lose and sometimes you win,” the statement said. “One of the fundamental pillars of fair play is to accept the results and the refereeing decisions with respect.”

Argentina won Saturday’s match with first-half goals by Sergio Agüero and Paulo Dybala, with Messi earning an assist. Veteran midfielder Arturo Vidal scored Chile’s lone goal by converting a penalty kick after halftime.

Messi and Medel got into each other’s faces after a ball dispute near the end line in the 37th minute at the Arena Corinthians.

Medel wasn’t happy that Messi came in hard from behind to challenge for the ball. The Chilean went to confront the Argentine great, who didn’t back down.

They started to bump into each other with their chests and shoulders. AP

LIONEL MESSI and Chile’s Gary Medel scuffle as referee Mario Diaz shows them the red card. AP

US eyes French summer with World Cup victory

L

YON, France—The United States is about to conclude its summer in France with an opportunity to further cement its place as the best team on the international stage.

The US faces the Netherlands on Sunday for the Women’s World Cup championship. A victory would give the Americans a second straight title and their fourth overall, more

than any other nation.

“I’m like a kid in the candy story right now,” US star Megan Rapinoe said. “This is the absolute best stage. I already feel more anxious and more nervous than in any of the other games.”

The United States has won a record 11 straight World Cup matches dating back to

THE US’s (from left) Rose Lavelle, Samantha Mewis and Kelley O’Hara drink together before the start of training session. AP

2015 in Canada, surpassing Norway’s record from 1995-99. The team has also been undefeated in a record 16 World Cup matches, surpassing Germany’s run between 2003 and 2007.

“We’ve celebrated the amazing moments.

We’ve dug in, looked each other in the eye in the hard moments and gone through things as a team,” Rapinoe said. “And we get to this final moment and it’s one more game and it’s really just about experiencing that game in its fullest for the last time.”

The Americans face a Dutch team on the rise.

After reaching the knockout round in only its first World Cup four years ago in Canada, the team won the European Championship for the Netherlands’s first major trophy. Dating back to the Euros, the Dutch have won 12 straight games in major tournaments.

They have star power in Lieke Martens, who was the Fifa Women’s World Player of the Year in 2017. She scored twice in the team’s 2-1 upset victory over Japan to open the knockout stage but she injured a toe in the celebration and it’s bothered her ever since.

In the Netherlands’s 1-0 extra-time victory over Sweden on Wednesday in the semifinals, Martens said it was painful. The United States defeated England on Tuesday night in its semi, giving the Americans an extra day to recuperate. AP

orts

sMirror

Monday, July 8, 2019

PIRATES MAKE PRESENCE FELT

By Ramon Rafael Bonilla

L

READY TO FIGHT! Sen. Manny Pacquiao flexes his muscle while training at Griffith

Park in Los Angeles to show his readiness to face American Keith Thurman for the World Boxing Association welterweight championship on July 20 at the MGM Grand in Las Vegas, Nevada.

PHOTO COURTESY OF WENDELL ALINEA

STARS VIE IN S’WOODS A

NGELO QUE and Miguel Tabuena take a break from their hectic campaign abroad and Jobim Carlos returns from a layoff as the troika joins a streaking Juvic Pagunsan in what promises to be a shootout with a slew of foreign aces in the International Container Terminal Services Inc. (ICTSI) Manila Southwoods Championship firing off on Tuesday at the Legends course in Carmona, Cavite.

The $100,000 event serving as the third leg of Philippine Golf Tour (PGT) Asia put up by ICTSI marks a rare gathering of the Filipino talents all primed up for four days of battle of shotmaking, iron play and putting against a strong foreign contingent out to keep its early control of the region’s emerging circuit.

Que arrives on Monday from his Japan PGA Tour campaign, Tabuena plays in his first local tournament this year after an injury and a couple of events in Europe recently, and Carlos, the reigning PGT Order of Merit champion, is back, also from an injury, and ready to recall his form.

Still, focus will be on Pagunsan, who swept the last three legs of the four-stage Visayan swing of the PGT last month, making him the marked player in the 72-hole championship organized by Pilipinas Golf Tournaments Inc. Reigning Philippine Open champion Clyde Mondilla is also in the fold, four-time PGT Asia leg winner Jhonnel Ababa hopes to sneak into the title race and extend his run of luck in the circuit and Jay Bayron is upbeat of scoring a repeat here after edging American John Michael O’Toole by one on a 26-under total last year.

The elite field, however, may find it a bit tougher to match that total output with the bunkerladen layout now set as a par-71 and which could play a little longer in soft conditions.

Still, a fiery duel is up right on the first shot with Namchok Tantipokhakul and Wisut Artjanawat hoping to stretch Thailand’s hot start in the circuit after the former topped this year’s PGTA kickoff

YCEUM of the Philippines went to twins Jaycee and Jayvee Marcelino to buck the absence of its stars and turn buck Letran, 84-80, at the start on Sunday of the 95th season of the National Collegiate Athletic Association seniors basketball tournament at the Mall of Asia Arena in Pasay City.

With CJ Perez and MJ Ayaay now making their strides in the Philippine Basketball Association, Jaycee and Jayvee Marcelino ably filled in the void for the Pirates, who sent the Knights into a maze of errors on both ends of the court.

Jaycee had an all-around effort and finished with 24 points, six rebounds, five assists and three steals, while Jayvee contributed 18 points, none

leg at Luisita last April and the latter snared the Taiwan PGA Open crown last May, the first PGT Asia co-sanctioned event abroad.

But they are just two of the foreign bets, who make half of the 121-player field, who are itching to slug it out with the local shotmakers with others coming from Singapore, Lao PDR, England, Korea, Japan, Australia, Syria, Malaysia, Colombia, India, Argentina, Venezuela, Spain, Finland, Macedonia, South Africa, the Netherlands and the United States.

Meanwhile, a select roster of pros test the course one last time in Monday’s pro-am where they will be paired with guests and officials of the event’s chief backers, including ICTSI, PLDT Enterprise, Meralco, BDO and PGT Asia official apparel Pin High.

Others fancied to get into the early mix are former The Country Club Invitational champion Micah Shin of the US and former PGTA leg winners David Gleeson of Australia along with the power-hitting Tim Stewart, also from Down Under, two-time PGT leg titlist and Manila-based Dutch Guido van der Valk, Spain’s Marcos Pastor, comebacking Brett Munson of the US and Singapore’s Koh Deng Shan and Gregory Foo.

Weightlifting open up

T

HE MVP National Open Weightlifting Championships will be held at the Rizal Memorial Sports Complex from July 15 to 20 with clubs from all over the country competing in the annual event.

Philippine Sports Commission Chairman William Ramirez has been invited to grace the opening ceremony as guest of honor and speaker.

MIGUEL TABUENA takes a break from his hectic campaign abroad to vie in the Manila Southwoods Championship.

T

The Cebuana Lhuillier-backed Blu Girls drew first blood when Angelie Ursabia tripled on a 1-0 count in the first inning to score the game’s first run.

Peru, however, answered with a run at the bottom of the same inning to knot the count at 1-all.

The Philippines had another run in the fourth inning and pitcher Royevel Palma made sure Peru wouldn’t score again, preserving the win for the Blu Girls after consecutive losses in the prestigious women’s softball tournament.

Palma earned the win after pitching for six innings and allowing only four hits, no run and five strikeouts.

Ursabia led the Philippines with two hits in three times at bat.

Langhammer, Duke top Davao ‘duathlon’

J

AKUB LANGHAMMER flashed his superb biking skills to check a long search for local crown while Australia’s Dimity Lee Duke dominated the women’s side in the pro division of the first Penong’s 5150 reduced to a duathlon in Davao on Sunday.

Langhammer charged back from fourth after the first leg of the 2.5-km run/40-km bike/10-km run event with a strong showing in the middle stage then cruised to victory in one hour and 46 minutes, his first triumph in the country after a number of failed bids, including a third-place effort in Black Arrow 5150 won by Mitch Robins in Subic last November.

Originally set as over the Olympic distance 1.5km swim/40-km bike/10-km run race, organizers scrapped the opening leg due to concerns over the quality of the water in the swim stage on the eve of the event, citing the safety of the participants as their top priority.

Although a duathlon competition, the Czech

still seized the moment, posting the fastest time of 57:28 in the bike to take control on his way to beating New Zealand’s Kiera McPherson by over three minutes for top honors worth $2,000 purse.

Langhammer timed eight minutes and closed out with 37:21 in the two run legs.

McPherson and Robins of Australia turned in identical clocking of 00:07:59 in the first run part but failed to keep in step with Langhammer in the bike and lost steam in the closing run event.

McPherson timed 01:01:59 in the bike and finished second in 1:49:58, while Robins wound up third in 1:53:07 after struggling in bike with a 01:01:54 effort.

The multi-titled Duke, on the other hand, took charge early and won pulling away in 02:02:10 with Kiwi Laura Wood coming in way behind in 02:09:02 in their side of the centerpiece event organized

by Sunrise Events Inc. and sponsored by Davao’s favorite barbecue house Penong’s Barbecue and Seafoods Grill for the first time.

midway the second period.

The teams went toe-to-toe with Lyceum holding on to a slim 64-62 lead entering the fourth quarter.

Jerrick Balanza, fully recovered from a brain surgery last year to remove a tumor, took the scoring load and sparked a 10-0 run that put the Knights ahead, 72-66, with seven minutes remaining in the game.

But the Marcelino twins led a fiery 13-4 counter, including the game-sealing basket by Jayvee following a defensive stop on the other end.

Balanza topscored for Letran with 19 points and also had four rebounds, five assists and four steals. Larry Muyang and Jeo Ambohot chipped in 14 and 10 points, respectively, and combined 24 rebounds for Letran.

SEASON 95 of the National Collegiate Athletic Association kicks off with the traditional opening ceremony. NONIE REYES

Weightlifting gave the country its only Olympic medal in 20 years, a silver courtesy of Hidilyn Diaz, in the Rio de Janeiro 2016 Games.

The open will also serve as a tryout for the national team to the 30th Southeast Asian Games.

The open has been named after the sports patron, Manuel V. Pangilinan, for his unwavering support to the sport which now spans for 10 years.

PHILCYCLING HOLDS NATIONAL ROAD CHAMPIONSHIPS IN TAGAYTAY CITY

Blu Girls bag first victory HE Blu Girls finally getting their act together and barged into the win column, 2-1, over Peru on Saturday to end a lethargic but reassuring campaign in the USA Softball International Cup at the South Commons Softball Complex in Columbus, Georgia.

“I never doubted that a win will be coming.

That close victory over Peru showed that the Blu Girls have been learning from their previous losses and are applying what they have learned,” said Jean Henri Lhuillier, Amateur Softball Association of the Philippines president and president and CEO of Cebuana Lhuillier. “The need now is for the girls to be more consistent as we prepare for the qualifying tournament for the 2020 Olympics.”

bigger than his lay-up with 3.8 second left that sealed the victory for the Season 94 runner-up.

“It was a tough game,” Lyceum Head Coach Topex Robinson said.

Perez and Ayaay were instrumental in giving Lyceum an unblemished record in last season’s double-round eliminations—which was spoiled in the Finals by the San Beda Red Lions.

Robinson knew he has to make do with what’s left of the team. And he looked on track this early in the season.

“We discussed how we’re going to look at the season. It’s really about how we are playing,” Robinson said. “Our team is the smallest [shortest] in the league, but we are the quickest.”

The Pirates were in control for most of the first half behind a 17-2 blitz for a 42-30 lead

TAN

Tanduay Athletics beach volley tilt on

B

EACH Volleyball returned to the Tanduay Athletics Volleyball Center (formerly Cantada Sports Center) in Taguig City on Sunday with competitions in boys and girls in U15 and U18 age divisions.

Philippine Volleyball Federation (PVF) and International Volleyball Federation licensed International referees and national referees are supervising the matches.

As part of the tradition, all PVF tournaments under the leadership of PVF President Edgardo “Tito Boy” Cantada and Chairman Mikey Arroyo, there will be no entry fee.

Participants must turn 15 for U15 and 18 for U18 on Tuesday to be eligible to play.

The tournament is supported by Lucio “Bong”Tan Jr., Asia Brewery Inc., Tanduay Athletics and Philippine Airlines.

The center boasts of two sand courts (indoor and outdoor), a swimming pool, immaculately clean showers and changing facilities, lounging area and dining facilities available to participants and officials. Out of town participants needing accommodations will be given free board and lodging.

Complimentary meals starting with breakfast till dinner (if necessary) and everything in between will be served to all participants, officials and invited guests. Complimentary drinks will be flowing all day.

T

HE PhilCycling National Road Championships for 2019 unwrap on July 23 and 24 in Tagaytay City with stakeholders from the private sector pooling their support for the final event that would determine the composition of the cycling team to the 30th Southeast Asian Games.

PhilCycling President Rep. Abraham TOLENTINO “Bambol”Tolentino said competitions will be in massed start (road race), individual time trial (ITT) and team time trial (TTT) for Men and Women Elite and Junior (17-18 years old).

The country’s elite riders are expected to race for the coveted national champions jerseys in the Men Elite and Under-23 18-km ITT; Women Elite and Under-23 and Men and Women Junior 12-km ITT; Men Elite 40-km TTT; Women Elite and Under-23 and Men and Women Junior 91.35-km Road Race; and Men Elite and Under-23 132.08-km Road Race.

Standard Insurance is throwing its full support for the championships along with Go For Gold, One LGC (Air21, Ube Media Inc. and IWMI), MVP Sports Foundation and 7-Eleven Cliqq Air21 by Roadbike Philippines.

Registration is only through online via National Coach Ednalyn Calitis Hualda’s facebook page.

Riders with International Cycling Union licenses—which could obtained through PhilCycling Director Jojo Villa’s facebook page will be allowed to race.

The national championships for youth men and women—aged 16 and under—will be incorporated in the Batang Pinoy National Finals in Puerto Princesa next month.

Tagaytay City will also be the main hub of the 30th SEA Games cycling competitions which also includes mountain bike and BMX race and freestyle.

POC BOARD TACKLES SPECIAL POLLS

T

HE Executive Board of the Philippine Olympic Committee (POC) meets on Monday to discuss procedures for the International Olympic Committee (IOC)-ordered special elections on July 28.

The board will convene at 10 a.m. at the POC Office at the PhilSports Complex in Pasig City. The IOC ordered the POC to fix its leadership squabble through the special elections for the vacant positions— president, chairman and two board seats.

Cycling’s Rep. Abraham Tolentino, who resigned as chairman, has decided to skip the meeting for delicadeza. Expected to attend the meeting is Joey Romasanta, who retracted after resigning as first vice president and is now serving as acting president.

The other expected attendees are Second Vice President Jeff Tamayo, Treasurer Julian Camacho, Auditor Jonne Go and board members Prospero Pichay, Robert Mananquil, IOC honorary

Makati FC teams vying in Europe

T

HE Makati Football Club (MFC) will make its 37th consecutive stint in the Gothia World Youth Cup that kicks off on Sunday in Gothenburg, Sweden, right after its debut in the Paris World Games.

The Makati FC was invited for the first time to the Paris World Games, a buildup to the Gothia Cup. The club brought 70 players for five teams—boys born 2005, 2006, 2007 and 2008 and girls born 2005. The teams flew

C3

RICK OLIVARES bleachersbrew@gmail.com

BLEACHERS’ BREW

Joy in Clipperland

THE Los Angeles Lakers losing in the Kawhi Leonard and Paul George Sweepstakes to the Los Angeles Clippers is both stunning and well, mollifying.

With LeBron James and Anthony Davis in uniform, had they nabbed Leonard and George, the bling bling would be back in the eyes of the Purple and Gold Faithful. There would be all this talk—premature or not—of a dynasty.

That’s possible. The wheeling and dealing isn’t done. However, what could have been a done deal is now viewed as a missed opportunity.

The ironic thing is...the Los Angeles Clippers aren’t even a big team. They aren’t cross-town rivals but inter-building rivals with a dressing room just around the corner or down the hall.

Granted this isn’t the first time the Clippers tried to put together a superstar team to win it all—and they failed—no one is laughing. It was a coup.

It would seem that the once proud and shining examples of NBA standards and desirable locations—Los Angeles and Phoenix—are no longer preferred destinations. For sure the allure is there. But we’ve seen teams—expansion ones at that—San Antonio, Miami, and now, Toronto—prove to be worthy stops to win a NBA title or then some.

The shine from the Raptors’ title run has hardly dissipated when they received the news that Leonard had decamped. While that is depressing news, they will always have 2019 to look back on.

I do like the fact that we are now seeing teams outside the traditional big markets win it. It makes everyone believe that it can be won. Outside some franchises trying to build their own super teams, it pushes the NBA on the road to parity.

Yes, there is still a long way to go.

Nevertheless.

I may not be a fan of Golden State but you have to give it to them as they built through the draft and through trades. They became the yardstick for teams all over the world on how to play the modern game. They didn’t just import players to build their own All-Star squads. They did it through the draft and trades.

They will still be very good but I like the occasional vulnerability they have shown.

With the Clippers, it would be a nice story for this team to move on from the years of infamy under former owner Donald Sterling. They cannot think they have won it yet. They still need to build this team.

And build it they must.

I find it funny that in their roster of Hall of Famers, they list Bill Walton, Bob McAdoo, Moses Malone, Dominque Wilkins, Adrian Dantley, Jamaal Wilkes and Grant Hill. But all those players are more identified with other squads—the Blazers, Lakers, Rockets/76ers, Hawks, Mavericks/Pistons, Lakers, and Pistons respectively.

Randy Smith, Danny Manning and Blake Griffin are the closest to what they have in identifiable stars. Yes, you can add DeAndre Jordan to that; maybe even Elton Brand, but sadly, they left for supposedly greener pastures.

It is almost impossible to have tenured players in this age of free agency. But one can still hope.

If Cleveland got out of the doldrums, then there is hope in Clipperland.

Boy, what a story that would be. Even if for now, they have piped the hated Lakers for what could have been a surefire dynasty.

member Frank Elizalde, IOC representative to the country Mikee Cojuangco and former President Jose Cojuangco Jr. Like Romasanta, Camacho and Go verbally resigned but also retracted.

The Executive Board will also tackle the creation of an independent election committee that will screen the aspirants for the vacant position.

Tolentino admitted his intention to run for the presidency vacated by Vargas. He is expected to be challenged by Aranas (archery).

Ramon Rafael Bonilla to Paris last Saturday.

Tomas Lozano, founder of Makati FC’s who turned 70 last week, has been bringing teams to the Gothia Cup since 1983. He received the Gothia Cup Hall of Fame award last 2007 in Sweden for 25 years of continuous participation and received another in 2012 for 30 years of participation.

‘THE TOUR’ IS ON! Sports BusinessMirror

B

RUSSELS—Apart from the celebrations of Eddy Merckx’s first victory at the Tour de France half a century ago, nothing went according to plans on the opening day.

C4

| Monday, July 8, 2019 mirror_sports@yahoo.com.ph Editor: Jun Lomibao

THE Netherlands’s Mike Teunissen (right) noses out Slovakia’s

In cycling-mad Belgium, defending champion Peter Sagan (center) in a sprint. AP Geraint Thomas was caught in a crash Saturday and toppled over his handlebars in the finale of the first stage. The race leader’s yellow jersey ended on the shoulders of a relatively unknown rider who switched from zealous teammate to ace sprinter.

After the pile-up tore the peloton apart and played havoc with sprinters’ teams, Mike Teunissen posted the biggest win of his career with an unexpected yet remarkable stage win at the expense of former world champion Peter Sagan, the king of sprints in recent years at the Tour.

Caleb Ewan, an up-and-coming sprinter, took third place on the finish line in Brussels.

The first days of the Tour are always tense and marred by race incidents, and this year’s race is not going to be any different.

“The finale was not dangerous,” Teunissen said after an impressive burst of SPECTATORS wait for power in the final meters that allowed him to pip Sagan. “It’s only because the the riders at Mur de riders were nervous that it was dangerous.”

Grammont during The opening day stage could have turned into another nightmare for Thomas’s the first stage of the Ineos team, which is already without four-time champion Chris Froome. The Tour de France on British rider was ruled out of the Tour last month after suffering multiple careerSaturday. AP threatening injuries at a warm-up race.

But Thomas escaped unscathed. The former track specialist was riding at the front of the race when the spill occurred and he bumped into barriers.

“I’m fine. It was pretty slow by the time I hit them,” he said. “I gave myself enough space and avoided the actual crash but with the barriers there was nowhere to go. The main thing is that it didn’t do any damage. This first week is all RUSSELS—No matter who wins, this year’s Tour de France will see a about just getting through.” changing of the guard.

And if the names of Wout van Aert, Kasper Asgreen, Enric Mas or Thomas’s teammate Egan Bernal, another top contender, did not fall but Caleb Ewan don’t ring a bell now, they might soon be on everybody’s lips. was also held up by the crash. The pair did not lose time as per race regulations In the absence of many stalwart riders who have stamped their mark on because the accident occurred within the final 3 kilometers. cycling’s marquee event in recent years, new faces will emerge this summer.

Jakob Fuglsang, another favorite, also hit the tarmac about 20 kilometers from There is a long list of top riders missing the Tour, which started on the finish in a separate crash. The Astana team leader remounted his bike with Saturday and that number includes: blood on his face and right knee, and tears on his jersey. He needed stitches for a n Four-time champion Chris Froome, who is missing out for the first cut above his right eye. time since 2011.

“I think he’ll be ok,” said Astana team director Alexandre Vinokourov. “First n 2018 runner-up Tom Dumoulin. week in the Tour de France is always the most dangerous for the guys.” n Primoz Roglic, a fourth-place finisher last year.

Teunissen, the first Dutch rider to wear the yellow jersey since Erik Breukink n Former world champion Philippe Gilbert.

30 years ago, showed solid nerves after the second spill took out of contention his n Ace sprinters Mark Cavendish, Marcel Kittel and Fernando Gaviria.

Jumbo-Visma teammate Dylan Groenewegen, the team’s best sprinter.

The generational change is likely to be the most visible in the fight for the Teunissen was initially set to be part of Groenewegen’s lead out train but race leader’s yellow jersey, as 22-year-old Egan Bernal seems ready to take over quickly turned his focus to personal goals once his leader went down. In the from his leader at team Ineos, defending champion Geraint Thomas. slightly uphill section leading to the finish line on the leafy Avenue du Parc Royal, In the wake of an already successful season during which he won the Teunissen perfectly timed his effort to deny Sagan a 12th stage win at the Tour.

“I thought all the work we had done for quite a long time was suddenly gone,” he said. “But I felt good and thought I could maybe achieve a top 5. I was relaxed, with nothing to lose. I opened up and I had a lot of power. It got me to second position and I saw Sagan was going slower than me. I threw myself at the line.

Mission accomplished.”

Teunissen did not get carried away with his win, though, and promised to keep working for Groenewegen if he recovers well.

“It’s only unfortunate for Dylan, hopefully he is okay and can sprint again in a few days,” he said. “Still, we have the yellow jersey in our room, it’s really strange but also very nice.”

The 194.5-kilometer (120.8-mile) stage had started in a joyful mood in the heart of Brussels, with Merckx greeted by Belgian fans filling the streets as he stood alongside race director Christian Prudhomme in a red open-top car riding in front of the peloton.

Leaving Brussels, the 176 Tour competitors started their loop south of the city at a fast tempo as a group of four riders led by Greg van Avermaet, a one-day classics specialist from Belgium, immediately formed at the front.

The quartet reached the first difficulty of the day—the Muur van Geraardsbergen, a 1.2-kilometer cobbled climb—with a three-minute lead.

Van Avermaet made a point of honor to be first at the top to the delight of home fans cheering him along on the side of the road. Belgian rider Xandro Meurisse, a member of the initial breakaway, was first at the Bosberg, another climb featuring at the Ronde van Vlaanderen classic race.

Guaranteed the first best climber’s polka dot jersey, van Avermaet stopped his effort soon after and was reined in by the peloton as the lead group was reduced to three men: Meurisse, Natnael Berhane and Mads Wurtz, who were caught with 70 kilometers left.

Tour debutant Stephane Rossetto of France then tried a solo escape and was first at the Lion’s Mound monument that overlooks the battlefield where Napoleon’s troops were defeated at the Battle of Waterloo. But the Frenchman’s efforts on open stretches of road exposed to wind were left unrewarded and he was ultimately swallowed up as the final sprint took shape. AP

Cycling’s new generation ready to deliver at 106th Tour de France

B

Paris-Nice and Tour de Suisse weeklong races, Bernal has been elevated to a coleader status after Froome, who also rides for Ineos, was ruled out because of a horrific crash last month.

Despite his lack of experience—he will start his second Grand Tour— Bernal is showing an impressive maturity.

“I think you have a physical age and a mental age, but when you’re ready, you’re ready,” Ineos team boss Dave Brailsford said on Friday. “He’s ready.”

Many former Tour winners including Eddy Merckx and Alberto Contador have picked Bernal as their favorite to win a race that features several grueling mountainous stages this year. They expect the diminutive Colombian climber to grab the spotlight when the Tour reaches the highaltitude summits in the last 10 days of racing.

Before that, there will be many opportunities for the 33 riders making their first Tour appearance to show off their skills and challenge the supremacy of their elders—starting Saturday.

“We will see riders who dare to attack, who try their luck, riders who race in an old-fashioned way,” Tour director Christian Prudhomme said.

The opening stage features two short climbs usually taken during the

one-day classic Ronde van Vlaanderen and a stretch of cobblestones and also passes through Merckx’s childhood home. The day’s main difficulties come too early to have a real impact on the final result, though, and the stage is likely to end in a bunch sprint that could award the first yellow jersey to a Tour debutant.

“It is a stage that I can win and I know the team and I really want to win the first stage,” said Ewan, Australia’s new sprint sensation.

The 24-year-old Ewan, who rides for Belgian outfit Lotto-Soudal, is among an exciting group of competitors that will try to derail three-time world champion Peter Sagan’s ambition to claim a record seventh green jersey, which is awarded to the best sprinter.

A colorful character with a spectacular style of racing, Sagan has been the fastest man in the Tour peloton in recent years. Since 2012, he has failed to win the green jersey just once, when he was disqualified following a crash with Cavendish two years ago.

But Sagan has been struggling with form this season, boosting the hopes of younger rivals including Ewan, who already posted stage wins at the Giro and Spanish Vuelta. AP

Cavendish omission creates internal rift at Dimension Data B

THE Netherlands’s Dylan Groenewegen is comforted by teammate New Zealand’s George Bennett after he crashed during the first stage. AP

RUSSELS—Mark Cavendish’s omission from the Tour de France is creating a rift within his Dimension Data team.

Team principal Doug Ryder insisted on Saturday at the start of the Tour’s opening stage he made the right decision by leaving the 34-year-old sprinter at home, a move that left head of performance Rolf Aldag puzzled.

Cavendish, who has 30 stage wins on the Tour, has not produced a single win this season while struggling to recover from the Epstein-Barr virus, but hoped he could get back in contention at cycling’s marquee race.

“Mark is a legend of the race. It is sad for the race that he’s not here,” Ryder said in Brussels. “We took that into account and spoke to the organizers. We selected a team based on the route and how hard it is this year. There was a whole team involved, it was a team decision.”

But Aldag spoke a different tune.

“It’s no secret I wanted him here,” Aldag said. “I think it would suit our strategy but ultimately it’s a team owner decision. It’s within my remit to select the team which I did, and Mark was included, and the team owner has the right to overrule me, which he did.”

Cavendish’s wife, Peta Cavendish, joined the debate, saying on Twitter there was a “fair amount of fiction” in Ryder’s statement.

Cavendish hasn’t missed a Tour since his first in 2007. But he also hasn’t won a stage since he took four in 2016 to overhaul Bernard Hinault on the list of stage winners. Hinault won 28. The record is held by Eddy Merckx, with 34.

Cavendish, the dominant sprinter of his generation, has been trying to regain his speed since he was diagnosed in 2017 with the virus, which can cause fatigue and inflammation.

Without Cavendish, the headliners for Dimension Data at the Tour will be Roman Kreuziger, who has four top-10 finishes at the Tour, and Edvald Boasson Hagen, who has three stage wins. AP

Ever-living God

D

EAR God, You are awesome in judgment. Inspired by Your goodness, we pray: God in Your wisdom, hear our prayer. Prosper the efforts of those who work for the rights of the poor and the oppressed. Vanquish all nuclear and chemical weapons. Empower Your Church to reach out with compassion and care to victims of sexual abuse. May God enrich our lives with every gift of the Spirit and make us thankful for all we have received, through Christ our Lord. Amen.

GIVE US THIS DAY SHARED BY LUISA LACSON, HFL Word&Life Publications • teacherlouie1965@yahoo.com

Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com

ZENDAYA for Lancome

Life BusinessMirror

‘Queens Everywhere’

my pop-culture idols being animated, I live.

A

LL this talk about a new Ariel, Grammynominated Halle Bailey, in a live-action remake of the classic animated film The Little Mermaid (1989) is setting the Internet ablaze with discourses on racism and appropriation. I so wanted Ginger Minj or Latrice Royale to be Ursula but Melissa McCarthy has been reportedly cast. I hope now that Idris Elba will be King Triton.

I understand that Disney is making a killing with the recent live-action remakes of Beauty and the Beast and Aladdin. But it’s making me nostalgic for cartoons (Super Friends, Thundercats, Voltes V) that everytime I see

‘RUPAUL’S DRAG RACE HALL OF FAME’ THE “Hunger Games of Drag” remains the most exciting competition on TV while its precursors and inspirations—American Idol, America’s Next Top Model and Project Runway—have gone stale. Throughout its 11 regular seasons, it has produced a diverse group of winners: Black Girl Magic (Season 1’s BeBe Zahara Benet, Season 2’s Tyra Sanchez, Season 8’s Bob the Drag Queen), Supermodels (Season 3’s Raja Gemini, Season 7’s Violet Chachki, Season 10’s Aquaria), Freaks (Season 4’s Sharon Needles, Season 11’s Yvie Oddly), Jewish MILF (Season 5’s Jinkx Monsoon), Art Intellectual (Season 9’s Sasha Velour) and Comedy Genius/Clown (Season 6’s Bianca del Rio).

The All-Stars editions, meanwhile, have white and blonde winners, such as Chad Michaels (Season 1), Alaska Thunderfuck (Season 2) and Trixie Mattel (Season 3). In Season 4, another blonde and white queen, Trinity Taylor, won but she tied with the black queen Monet X Change, presumably so All Stars won’t

Continued on D2

AND THEN SOME: WORKING TOWARD BEAUTIFUL SMILES D4

Monday, July 8, 2019

D1

D2

Monday, July 8, 2019

Style

BusinessMirror

www.businessmirror.com.ph

z

Today’s Horoscope

By Eugenia Last

CELEBRITIES BORN ON THIS DAY: Sophia Bush, 37; Milo Ventimiglia, 42; Kevin Bacon, 61; Anjelica Huston, 68.

HAPPY BIRTHDAY: Take advantage of what life has to offer, and you will discover a world that can help you overcome negativity and promote happiness and new beginnings. Use your creative imagination to help you see what you’ve missed, and you will improve your attitude, your relationship with others and your ability to gain insight into what’s possible. Your lucky numbers are 6, 17, 25, 27, 32, 38, 41.

a

ARIES (March 21-April 19): Keep moving forward. Get out and be a part of something that will make a difference to you, your community or your future. What you learn will change the way you do things moving forward. Get along with people who count. HHH

b

TAURUS (April 20-May 20): If you make a move too quickly, it will cost you. Keep your thoughts to yourself and see what others have to say or do before you divulge your plans. You are likely to have second thoughts. HHHHH

c INDYA MOORE on Pose

GEMINI (May 21-June 20): Pay closer attention to the people around you and those you love.

You can change the way others perceive you if you offer a kind word, smile or acknowledge others’ accomplishments. Use your intelligence to bring about positive change. HHHHH

MISS Universe Philippines Gazini Ganados

‘Queens Everywhere’ Continued from D1 be read to filth for its perceived racism.

Should there be an all-winners championship, Bianca del Rio will win, wigs down.

Quite interestingly, some of the drag superstars have also previously competed in Idol, such as Season 6’s Adore Delano in American Idol and Season 6’s Courtney Act in Australian Idol 1; Season 3’s Manila Luzon, Season 7’s Katya and Season 9’s Valentina in America’s Next Top Model (ANTM); and Raja used to work in the show as a makeup artist; and Project Runway’s Mondo Guerra, Christopher Palu and Garo Sparo have all made outfits for drag queens. What’s more, Alaska and Season 5’s Alyssa Edwards appeared with ANTM’s Miss J in the latest The Bachelorette, which features Miss Alabama USA 2018’s Hannah Brown, who was also a guest at Mama Ru’s new talk show, RuPaul.

Talk about queens converging to spread charisma, uniqueness, nerve and talent.

MISS UNIVERSE PHILIPPINES WHEN current Miss Universe Philippines Gazini Ganados of Talisay, Cebu, cracks the Top 10 at Miss Universe 2019, it will be the 10th consecutive time that the Philippines will do so. The USA (1982-1998), Venezuela (1984-2003) and India (1992-2002) have more than accomplished such feat, and we aim to be part of this exclusive clique.

Gazini has a gargantuan task ahead of her, a fact that hardly fazes the half-Palestinian stunner, having to achieve a back-to-back victory as our Catriona Gray (Oas, Albay) is the reigning Miss Universe. Only Venezuela in 2008 (Dayana Mendoza) and 2009 (Stefania Fernandez) did the almost impossible.

Venus Raj (Bato, Camarines Sur) ended the Dark Ages, the drought from 2000 to 2009. Venus, 2011’s Shamcey Supsup (General Santos), 2012’s Janine Marie Tugonon (Bataan), 2013’s Ariella Arida (Laguna) and 2014’s Mary Jean Lastimosa (North Cotabato) wore gowns made in Colombia during their competitions, particularly hurting the chances of MJ to achieve a fifth consecutive runner-up finish for us.

In this column in 2013, “Bring Back Pinoy Pizzazz to Global Pageants,” I been advocated for Filipino fashion designers to dress up our Binibinis.

It was eventually used (plagiarized) for a Change.

org petition. Something good came out of that, fortunately. Pia Wurtzbach (Cagayan de Oro) wore Albert Andrada on her way to her memorable win in 2015, Maxine Medina (Quezon City) donned Rhett Eala in 2016, Rachel Peters (Canaman, Camarines Sur) was clad in Val Taguba in 2017, and Catriona was crowned in a Mak Tumang.

In her sixth month as Miss Universe, Catriona has reached 6 million Instagram followers, hot on the heels of Pia’s 8.6 million. Miss Universe 2012 and influencer Olivia Culpo has 4.2 million. The most followed Miss Universe alumna, however, is Miss Universe Israel 2004 and Wonder Woman Gal Gadot at 30.2 million. In contrast, our Megan Young, Miss World 2013, has 2.4 million. Miss World 1994 Aishwarya Rai has 7.3 million, while the most followed beauty queen of all is Miss World 2000 Priyanka Chopra with 42.8 million, both from India.

INCREDIBLE INDYA I HAVE yet to watch the 1968 documentary The Queen, about the 1967 Miss All-America Camp Beauty Contest and drag legend Crystal LaBeija, the founder of the House of Labeija. I always go back to Paris Is Burning, the 1990 documentary about the New York ball scene incessantly referenced in RuPaul’s Drag Race.

My current obsession is Pose, the dramatization of the real lives depicted in Paris Is Burning. Now on its second season, the series is diving deep into the rich, colorful lives of Pepper LaBeija, Dorian Corey and the Houses of Xtravaganza, Mizrahi, Ninja and Saint Laurent, among many ball habitues. They are brought to life by Elektra Abundance now Anna Wintour (Dominique Jackson), Blanca Evangelista (MJ Rodriguez), Pray Tell (Billy Porter) and Angel Evangelista (Indya Moore).

Blanca founded her house based on supermodel Linda Evangelista, while Elektra is establishing a new one based on Vogue Editor Anna Wintour. Angel, by her sex worker-turned-model trajectory, is loosely based on the murdered Venus Xtravaganza.

Indya, unlike Venus, is living the high, fashionable life. They’ve done covers with W Korea, Out and US Elle, and is one of Time magazine’s 100 most influential people in the world in 2019. They went to the fete in an Iris van Herpen “wild, decolonized, unlady, unclassy, 100 percent commando, non-binary, Vagina” look.

d

CANCER (June 21-July 22): An emotional incident is best toned down. If you overreact or let a situation escalate, you will have to backtrack. Move on, and do something that will make a positive difference to you or a cause you want to help.

HH

They have also signed up with IMG Models/William Morris Endeavor (WME), Pia’s and Catriona’s agency, and they are the first signed trans actor/model.

And yes, “#MYTRUTH is also that my pronouns are they/them and I DO NOT go by she, her, him, he, female, male, man or woman” is the mantra Indya posted for their Calvin Klein underwear campaign: “This is one of the greatest feats my community has ever seen and accommodates so much work [that] black trans women and people have done to normalize this kind of visibility. This is such a highlight in my career and I’m so excited to see casting trans people of color continue in multiples and a multitude of all the shapes and sizes our bodies come in.”

ZENDAYA THE TEEN QUEEN ON a rare night, some of the pretty young press (more young-ish) gathered to watch an exclusive screening of Spider-Man: Far From Home at the swank Century City Mall Cinema. That’s a perk when two of your former colleagues (shoutout to Terrie Fucanan-Yu and Joba Aguilos) have gone over to PR. The movie is a continuation of Avengers: Endgame, so you must watch that before this one. The British Tom Holland as the lead is a delight, as are his classmates played by a very diverse cast. Peter Parker’s best friend Ned is played by Jacob Batalon, a Fil-Am; his rival Brad by English/Malaysian/Australian Remi Hii (from Crazy Rich Asians); video-savvy Flash by Guatemalan Tony Revolori (Grand Budapest Hotel); Ned’s girlfriend Betty by Australian Angourie Rice.

As the love interest, Zendaya (her name means “to give thanks” in the Shona language of Zimbabwe) wasn’t a damsel in distress but a badass counterpoint to Peter. It helps that the singer-actress (soon in Dune) has a compelling screen presence.

That larger-than-life persona has enabled Zendaya, 22, to be a double Vogue cover girl, a Met Gala regular, have a design collaboration with Hilfiger (Tommy x Zendaya), and be Lancôme’s youngest global ambassador. And she stars in the shockingly controversial Euphoria at HBO, “a group of high-school students as they navigate drugs, sex, identity, trauma, social media, love and friendship.”

Not even the teen queens of the 1980s Molly Ringwald, 1990’s Alicia Silverstone and the 2000’s Lindsay Lohan enjoyed such power at a young age. n

e

LEO (July 23-Aug. 22): Make decisions for the right reason. Ulterior motives will lead to trouble. Be open regarding what you want and what you are willing to give back. Don’t let a rejection or change someone makes stop you from doing what’s best for you. HHHH

f

VIRGO (Aug. 23-Sept. 22): Don’t trust someone else to take care of your responsibilities. Discipline will be required, but in the end, the outcome will be worth the effort.

An acquaintance will be a reminder of an emotional situation you’d like to forget. HHH

g

LIBRA (Sept. 23-Oct. 22): Choose your words wisely, and think before you act. Someone will get the wrong impression if you leave anything unsaid. Be precise, but don’t give ultimatums. An unexpected change will alter the way you choose to move forward. HHH

h

SCORPIO (Oct. 23-Nov. 21): Don’t wait to be asked to do something. Take care of responsibilities first and foremost, and you will avoid an unnecessary argument or unexpected change of plans. Make love and peace with your priorities. Personal improvements are favored. HHH

i

SAGITTARIUS (Nov. 22-Dec. 21): Put your heart and soul into what you do today, and the rewards will come your way. A moneymaking opportunity is apparent, but before you say yes, check out who’s participating and the risks involved. HHHH

j

CAPRICORN (Dec. 22-Jan. 19): Refuse to let an emotional incident turn into a costly mistake. Deal with situations that could slow you down first to ensure that you can address the things that matter most to you. HH

k

AQUARIUS (Jan. 20-Feb. 18): Don’t make a change prematurely. Do your research, and be willing to put in the legwork necessary to turn your plan into a success. Don’t go along with the crowd because you feel insecure following your heart and doing your own thing. HHHHH

l

PISCES (Feb. 19-March 20): Getting involved in something that interests you is a good thing, but overspending isn’t. Pick and choose your friends, your projects and what you spend your money on. HHH BIRTHDAY BABY: You are bold, aggressive and sentimental.

You are imaginative and engaging.

‘see you in a week!’ BY ROSS TRUDEAU The Universal Crossword/Edited by David Steinberg

ACROSS 1 Ferret relative 5 Boom supporter 9 Stock holder’s aid?

14 Cookie shaped like its first or last letter 15 Not fooled by 16 Some breakfast places 17 Dragnet sergeant 19 A gift of the Magi 20 Low-budget film 21 Vie 23 Vietnamese holiday 24 Title girl of a Rolling Stones hit 28 Give a scent to 30 Interject 31 Abbr. on a toothpaste tube 32 Employing 34 Shopping cart unit 35 TV daughter of Morticia and Gomez 41 People you might unfollow 42 Saoirse of Lady Bird 43 Loop in secretly 44 Knowledge shortcoming 47 Readies, as a red carpet

51 19th-century baseball player who became an evangelist 54 Yogurt mix-in 55 Bullish?

56 Spitting Andean animal 58 About 59 Does some scheduling...or, when parsed differently, a hint to this puzzle’s theme 62 Nonreactive 63 People surnamed Gore include Lesley, Tipper, ___ 64 Greek appetizer 65 Come to terms 66 Socially awkward type 67 Born’s partner DOWN 1 Mint-garnished cocktail 2 Removed wrinkles 3 Must 4 Annan in Ghanaian history 5 “Who, me?”

6 This ___ that 7 London who co-hosted What Not to Wear

8 Prius maker 9 Walked unevenly 10 “Now I remember” 11 Spreadsheet command 12 Terse order from a cop 13 ___Kosh B’gosh 18 Come up again 22 It’s slung during campaign season 25 Israeli submachine guns 26 Road curve 27 Orange or purple vegetables 29 Does a 10K, say 33 Needle-nosed fish (RAG anagram) 34 Social Security fig., e.g.

35 5’7” NBA great Spud 36 “Ooh, fun!”

37 Bridge player, at times 38 “___ be surprised” 39 Actress Kendrick 40 Sabara and Hannah of Hollywood 44 Do the hula, say 45 “___ was saying...”

46 Played with words 48 Demolition cleanup vehicle 49 Class for the expecting

0 5 52 53 57 58 60 61

Didn’t go “Filthy” money “Cool beans!”

Ewe’s baby Operative’s org.

Damage Antler wrestler

Solution to Friday’s puzzle:

Show BusinessMirror

www.businessmirror.com.ph

Monday, July 8, 2019

SCOTLAND YARD QUESTIONED KEVIN SPACEY OVER ASSAULT CLAIMS

RICHARD GOMEZ with Lucy Torres-Gomez

MISS Ormoc 2019 Aura Shaznay Tumulak (center) with runners up Jhoanna Marie Tismo (left) and Jeska Capahi.

Overjoyed in Ormoc

town of Kananga. The young and passionate Mayor Matt toppled a political dynasty that has had absolute power in the town of Kananga for many decades.

Mayor Matt, obviously overjoyed with the support he is getting for his new post, was with his lady love, top model April Tanhueco during the many activities leading to his inauguration, which was also attended by his parents Manuel and Julie Torres, together with his siblings Caren and Jules and in-laws Vincent Rama and Rica Serafica-Torres.

It was indeed a weekend of milestones and thanksgiving, heartfelt victories and wonderful celebrations. Daghang salamat, Ormoc! n

N

EVER mind the overcast skies, the invitation to visit Ormoc City came at a perfect time. It was the third edition of the Miss Ormoc pageant and we were invited to sit as a member of the board of judges.

We were impressed by how the Miss Ormoc pageant was organized, and it was definitely much better than most of the pageants (both national and overseas) that we have attended in the past.

Everything, from the stage setup to the lights and sounds, was spectacular.

The production numbers were well thought out, the program flow was smooth and fast-paced, the guests were carefully selected, and security measures were very visible. Pageant hosts James Deakin and Karla Henry were in their best elements.

The crowd roared to almost pandemonium levels when special guest Alden Richards appeared onstage.

Crooner Ariel Rivera reminded the people of Ormoc what a charming singer he still is. Dance diva Regine Tolentino was in full bloom that night, obviously in love again. She performed exquisitely with her Speed dancers backing her up.

The younger members of the audience were delighted to see Pinoy Big Brother’s Lou Yanong, Fumiya Sankai, Yamyam Gucong, and the very gorgeous Andre Brouilette strut their stuff on stage.

Aura Shaznay Tumulak was proclaimed Miss Ormoc 2019, and she gets the chance to represent this progressive city in the national finals of the Miss World Philippines pageant later this year. Jhoanna Marie Tismo and crowd favorite Jeska Capahi took runner-up honors.

It was also the weekend of the inauguration of Ormoc City Mayor Richard Gomez and his beautiful wife Lucy, who will start her last term as the representative of the fourth district of Leyte.

MAYOR Matt Torres (left) with April Tanhueco

It is Mayor Richard’s second term and he shared with us his vision for the city he so loves. “Water will be our top priority. It has always been a contentious issue in Ormoc and we will harness the resources of Lake Danao to be able to solve the water issue to benefit the people long term.” Lake Danao covers hundreds of hectares and also serves as a tourist destination in Ormoc.

He also mentioned about the improvement and modernization of the city’s transport system and opening up more roads, a government housing project and his goal of making the city “plastic free” by 2021.

For her part, the lovely congressman vowed that the best is yet to come for her district. “It is time to begin the best story of and for Ormoc, and in an expanded scale, the best story of and for the fourth district of Leyte.”

The well-loved Torres family is thankful that Lucy’s younger brother Matt also won as mayor in the

Jon Lucas relocates to GMA AFTER jumping a ship from the rival network, where he was a prominent part of a boy band, actor and performer, Jon Lucas has officially signed with GMA, which gave him a warm welcome as he officially inked a contract with GMA Artist Center on July 2.

Jon is grateful and excited to be finally part of the GMA family, “Napakahalaga sa akin ng chance na ito. Ang dami kong hinintay at hiniling, kaya ibibigay ko talaga ’yung best ko rito.”

For Jon’s first project as a GMA artist, he will be joining the cast of the upcoming Filipino adaptation of the Korean series Descendants of the Sun headlined

by Dingdong Dantes together with Jasmine CurtisSmith, Rocco Nacino and many more.

He is already preparing for his character as Staff Sergeant Benjo Tamayo, a.k.a. Harry Potter. “May training po kami sa military, hindi basta-basta at hindi biro. Kaya ibibigay ko ang best ko for this project lalo na’t big stars ang makakatrabaho namin dito.”

Meanwhile, GMA Senior Assistant Vice President for Alternative Productions Gigi Santiago-Lara is happy to welcome Jon into GMA’s roster of stars: “We are always on the lookout for talented artists, and that’s why we are pleased to welcome Jon to the GMA family. We look forward to showcasing his versatility and honing more of what he has to offer.”

Present in the contract signing were GMA Senior Assistant Vice President for Alternative Productions Gigi Santiago-Lara, Senior Talent Manager Daryl Zamora and Jon’s Comanager Katrina Aguila.

JON LUCAS

LONDON—British police have traveled to the US to interview Kevin Spacey about sexual-assault allegations.

The Metropolitan Police is investigating six claims of sexual assault and assault against the former House of Cards star, who ran London’s Old Vic Theatre between 2004 and 2015.

Variety reported on Saturday that British detectives interviewed Spacey in May. British police don’t identify suspects until they have been charged. Without naming Spacey, the London force said that in May, “a man was voluntarily interviewed under caution in America by officers from the Met’s Complex Case Team. He was not arrested. Inquiries are ongoing.”

“Under caution” means the interview was recorded and can be used in future prosecutions.

Spacey’s attorney did not immediately respond to a request for comment.

In the United States, a young man who says Spacey groped him in a Nantucket bar in 2016 dropped his lawsuit against the two-time Academy Award winner this week. Spacey still faces a criminal charge over the alleged incident and pleaded not guilty to indecent assault and battery in January.

In 2017, American actor Anthony Rapp alleged that Spacey, who is now 59, had climbed on top of him on a bed when Rapp was 14 and Spacey 26.

After Rapp’s allegation, the Old Vic conducted an investigation into its former leader. It said it had received 20 allegations of inappropriate behavior by Spacey and had encouraged 14 of the complainants to go to the police. AP

D3

D4

Monday, July 8, 2019

Style

www.businessmirror.com.ph

KEN PAVES spends time with the kids in Cabanatuan.

INSTAGRAM: @KENPAVES

Working toward beautiful smiles

B

EAUTY is a billion-dollar industry but one of the things I love about it is that it has a heart. Yes, people are concerned about dollars and cents but there are those for whom beauty means more than just a perfect face.

One of those people is Ken Paves, hairstylist to the rich and famous, including David and Victoria Beckham, Oprah Winfrey, Eva Longoria, Diana Ross and Julianne Moore.

Paves is a supporter of global nonprofit organization Bright Faces, which provides cleft and lip palate surgery to children in need.

“Left untreated, one in 10 children with a cleft lip or palate will die before their first birthday,” said Paves during an intimate lunch hosted by RGPI Professional Beauty at Manila House Private Club during the hairstylist’s recent visit.

And this is what I never realized until that moment: That some children born with a cleft lip or palate may not be able to latch on to his or her mother’s breast or a bottle’s nipple. and that baby may die of effects from hunger and malnutrition.

Cleft lip and palate is among the most common birth defects in the world, with 170,000 children born with this condition.

Paves’s nephew Ryan, who had so many birth defects including trisomy, died when he

was 15 months old.

“Ryan is still my greatest role model, and my inspiration to be of service to the world,” said Paves.

Many people don’t know it but one of the reasons why the Philippine is close to Paves’s heart is because his mother is Filipino.

“For Ryan and for my mother, who is one of the strongest people I know, I have pledged to help Bright Faces launch an inaugural mission to the Philippines with the help of RGPI Professional Beauty,” he said.

To raise funds for Bright Faces’ mission, Paves and his celebrity friends are holding an online auction on Charitybuzz.

Featured are items from the hairstylist’s celebrity friends like the Beckhams, Winfrey, Ross and Tom Brady. Among the things up for auction are a signed coat from Winfrey and a signed David Beckham jersey. To look at these items, visit www.charitybuzz.com.

Bright Faces helps cleft lip and palate patients who live in the most remote and medically inaccessible regions of the world.

“Our five founding board members each have a long history of philanthropy and partnerships with nonprofit medical organizations, and they bring their strengths, unique expertise, and passion together through Bright Faces to help these patients receive the expert care they deserve,” said Bright Faces Chairman William Fox. In the Philippines, Paves went to Cabanatuan, where Bright Faces worked with Smile Asia Alliance, a team made up of volunteer doctors and nurses from the United States, Singapore and Japan.

To help Bright Faces, RGPI Professional Beauty, sole distributor of Wella Professionals and other beauty brands in the Philippines, will donate a portion of sales to the organization. n

Give your lashes outstanding volume ACHIEVE outstanding volume and beautiful healthy looking lashes with the new Max Factor Volume Infusion Mascara. Offering volume, length, strength and care, the mascara is a two-in-one with a formula that helps lashes reach their maximum potential, creating long and healthy looking lashes.

The formula of Volume Infusion Mascara features keratin and biotin.

Meanwhile, the gentle fiber brush ensures maximum volume, so you can achieve the impactful, full lash-look you’ve always wanted.

Over 100 years ago, Max Factor was created to highlight the natural beauty of women. Providing them with access to the tools they desire to enhance their look, Max Factor believes now is the time to explore the next era of beauty.

With the introduction of the Volume Infusion Mascara and the full eye range,

Max Factor’s high-performance eye products are designed to create healthy looking lashes and an uplifted, enhanced eye area.

Anke Ginzburg, director of research and development at parent company Coty Inc., says: “Max Factor understand that women want full, healthy looking lashes.

We also know they look for products that are gentle and convenient, while helping manage concerns. That’s why Max Factor has created and designed a variety of new eye products to help enhance and perfect her look. The Volume Infusion Mascara offers the best of both worlds with volume and care.

Infused with keratin and biotin that is applied with a volumizing, gentle fiber brush, it offers soft application at the same time as contributing to beautifully long and noticeably stronger lashes.”

BusinessMirror

www.businessmirror.com.ph

Monday, July 8, 2019 E1

How to work with someone who thinks he’s always right

M

By Ron Carucci & Jarrod Shappell

ANY people suffer from “chronic certainty” on issues for which no perfect answer exists. Here are three ways we’ve seen leaders get underneath chronic certainty to help themselves and others broaden their perspectives and have more productive conversations.

Get behind the origins of chronic certainty

COGNITIVE biases come in many forms, and often underlie dogmatic viewpoints. Staunch certainty is always rooted in deeply held, but often unconscious, beliefs.

Slow things down. If the certainty represents a pattern, don’t try and address it during an argument about a specific issue.

Instead, schedule a separate conversation to address your concern.

You might say something like, “Whenever we find ourselves on different sides of an issue, I feel as if you assert your views with such unbending force that I either want to shut down or dismiss

your confidence. It would help me to know that my views were being considered, even if you don’t agree with me.”

Consider how your organization might be encouraging certainty

DOES your culture prize assertive convictions? Is decision-making perceived to be competitive? Do people feel as if appearing uncertain about their views will be perceived as weak? In certain situations, like conversations around strategic planning, budgeting and talent management, where people perceive a lot to be at risk, the need to appear certain becomes a matter of survival.

By Kate Hilton & Alex Anderson

URING a time when health care is undergoing the most sweeping change ever, health systems, not surprisingly, are struggling to overcome resistance to change. But research and the experiences of some organizations suggest that embracing those who resist change the most—empathizing with them, identifying the sources of their resistance and helping them see change as positive—is far more effective.

For 18 months between 2009 and 2010, Michael Rose, an anesthesiologist who was then vice president of surgical services at McLeod Regional Health System in Florence, South Carolina, worked with surgical teams to implement the check list—an evidence-based best practice for safe surgery. Similar to a flight safety checklist, the surgical safety checklist ensures that the patient is the correct person, the surgery is the correct surgery and surgical teams are prepared for

emergent complications. It takes only a few moments to conduct, improves patient outcomes and saves lives.

Rose experienced many forms of resistance. For 18 months, he shared the checklist’s virtues, instituted training to teach teams how to use it, marketed its benefits, persuaded or cajoled colleagues and mandated its use. Despite all these efforts, adoption rates stalled at 30 percent. Then Rose tried a different approach: embracing three essential measures to address people’s psychological reactions to change.

Don’t fight the resisters

ROSE fought the temptation to view resistance from surgical team members as a problem, obstacle, personal attack or source of frustration. Instead, he focused on understanding and addressing its root causes, especially fear.

Stop telling people what changes to make

RATHER than asking, “How can I get this group of people to do what

© 2019 Harvard Business School Publishing Corp. (Distributed by The New York Times Syndicate)

By Roberto Verganti

WWW.FREEPIK.COM

J

To avoid institutionalizing certainty as the preferred approach to articulating views or requests, ask people to come to meetings with pros and cons. Make it a routine to have others on the team weigh in with differing views when making decisions. Approaches like these normalize the need for people to self-regulate, balancing confidence in one’s views without the dogma of certainty.

Acknowledge if others’ certainty makes you resistant

FOR some, the convictions of others can feel threatening to our own views and values. Confirmation bias leads us to screen out dis-

How one health system overcame resistance

D

WHAT JONY IVE’S YEARS AT APPLE CAN TEACH US ABOUT LOOKING FORWARD

I want them to do?,” Rose made a critical pivot to listen and ask, “How can I get this group of people to do what they want to do?” Rose also sought to unearth team members’ interests in the change being asked of them. In addition, by activating more and more surgical staff to test and improve the checklist, Rose elicited “ownership” and avoided the trap of “buy-in.”

Focus on people who are committed to change

BY starting with those who were committed to the checklist, Rose engaged leadership across disciplines and levels. Nurses and technicians joined with surgeons, anesthesiologists and senior leaders to advance the adoption. Results followed. As Rose sees it, the surgical team members not only saved others’ lives, they also improved the staff’s well-being and renewed their spirits.

Kate Hilton is a member of the faculty at the Institute for Healthcare Improvement. Alex Anderson is a research associate there.

confirming views, so when we are forced to contend with differences, we naturally resist. We can become overly defensive, or withdrawn, dismissing information that might be very important.

With so much emphasis these days on speaking up, we need to learn to temper our voices by listening, especially when making important decisions for which there are conf licting options.

Remember that speaking “your” truth is far different from speaking the truth.

Ron Carucci is a cofounder and managing partner at Navalent. Jarrod Shappell is a partner there.

ONATHAN IVE, Apple’s legendary chief design officer, has announced that he is leaving the company. His departure—and Apple CEO Tim Cook ’s challenge in replacing h i m — of fe r a n o p p or t u n it y to ref lect on how executives should go about the difficult job of choosing the right creative talent for their own organizations.

In 1997 Steve Jobs had just returned to Apple and needed to reinvigorate the innovative soul of the organization. He wanted design to be at the core of this renewal. Since Apple was a computer company at that time, you would have expected Jobs would have searched for an ex pert computer designer—someone well-respected in the industry.

He did not. Before joining Apple, Ive had been an independent design consultant in London. His firm, Tangerine, was involved in designing household products (for example, Tangerine was a consultant for Ideal Standard, then a major player in the bathroom and plumbing industry).

The young designer then moved to Apple in 1992, but the designs

he was involved in before 1997 were not especially successful.

Yet, in hindsight it was a brilliant choice. The lesson: When choosing an innovator, look to the future, not the past.

The first product designed under Ive’s leadership was the iMac G3, introduced in 1998.

It was acclaimed as one of the most revolutionar y persona l computers ever released, with a design language that was completely novel for the industry: a friendly shell in translucent colored plastic and an ovoid form that challenged the dominant pa rad ig m of u ns y mpat het ic beige boxes.

One t a keaway: W hen you are picking talent for innovat ion endeavors, you shou ld imagine what is coming down the pike—what the future will look like—and then understand which capabilities you will need to succeed in that future. If Tim Cook has absorbed Steve Jobs’s lesson, his choice of Ive’s successor will reveal his vision of the emerging world in which Apple will compete in the years ahead.

Roberto Verganti is a professor of leadership and innovation at Politecnico di Milano.

Stop panicking about corporate short-termism

By Lizanne Thomas

C

ONTRARY to some claims in popular culture, boards and C-suites are not intrinsically heartless and societally myopic. While the rules of the capitalist road surely could do with some updates, almost all the corporate decision-makers my firm has dealt with are responsible, not reckless.

This is particularly true when it comes to the question of how well public companies balance the precepts of long-term value with those of short-term performance. As a practical matter, at most organizations most of the time, the notion that these tenets are in opposition constitutes a false dichotomy.

Recent analysis indicates that listed companies are measurably more inclined toward the long term than has been surmised. Last year, economists connected to the Federal Reserve Board published

a study of IRS data from 2004 to 2015 that indicated publicly traded companies actually invested 48.1 percent more on R&D than their privately held counterparts (when adjusted for size and sector).

Let’s accept that the obligations imposed by corporate and securities laws, in the main, reward good conduct and deter bad. That has created an environment that invites investment and innovation.

Capital is already largely accountable.

And yet, while the majority of corporate leaders whom we deal with set strategies for the long term and do their best to stick with them, more can be done to encourage all stakeholders to prioritize long-term corporate health. Here are a few suggestions.

n Reward long-term investors. Legislators could tier cap-

n Deactivate activists.

Shareholder activists are often potent contributors to shorttermism.

Lizanne Thomas is a partner at Jones Day. This article represents her personal views and opinions.

ital-gains tax rates to reward truly long-term shareholders.

The current system too often rewards “trading securities,” rather than “owning companies.” n Align compensation to the long term. Investors should

support executive compensation that is linked to the types of targets referenced above— development of strategic plans, articulation of those plans to stakeholders and establishment of goals based on longterm performance and value creation. Likewise on that front, equity should be generally slow to vest.

Solutions in search of problems aren’t the answer. Transparency is.

Education BusinessMirror

E2 Monday, July 8, 2019 • Editor: Efleda P. Campos

www.businessmirror.com.ph

First Law and Tech Summit in PHL tackles legal and regulatory landscape for tech initiatives

A

CHIEVING meaningful digital transformation in a nation will require a whole-of-the-nation approach in revamping key practices, behaviors and policies.

T he Philippines has been receptive to new technologies and has in fact made positive responses to innovation. Policies and regulations are expected to stay dynamic and keep up with the innovation wave.

“With rising challenges in the face of disruptive and innovative technologies, we are quite positive that the Philippine regulatory and legal landscape will firm up and meet the demands of this generation,” said Atty.

Mark Gorriceta, managing partner of Gorriceta Africa Cauton & Saavedra.

Gorriceta Africa Cauton & Saavedra is a fullservice law firm and one of the leaders in the fields

of Capital Markets, Mergers & Acquisitions, Tech and Taxation in the Philippines. The firm offers a full array of services such as corporate and business law, technology media and telecommunications, capital markets, M&A, taxation, estate planning, litigation, transportation law, intellectual property law and labor law, among others.

“An agile innovative industry must be enabled and supported by a robust and adaptable legal system and a synergetic legal culture.

This will especially benefit thriving tech startups and corporations that are offering a service or product that barely existed five years or

US Embassy hosts first-ever Haquathon

T

HE US Embassy in the Philippines, in partnership with Save Philippine Seas (SPS), hosted the first-ever Haquathon on June 28 to 30, 2019. Thirty-five teams participated in the Haquathon, a search for tech-based solutions to save our seas.

The three-day program opened with an “AdvocaSea” workshop, bringing experts in marine research and conservation together with tech innovators to address pressing issues facing our seas. The 48-hour Haquathon followed the workshop.

Teams of students and professionals ranging in age from 14 to 74 years old developed tech-based solutions to address one of four categories: illegal, unreported, and unregulated (IUU) fishing and coastal law enforcement, preventing or reducing marine pollution, coral-reef conservation and restoration, or environmental education.

SPS Executive Director Anna Oposa said, “The Haquathon was a meeting of the minds between innovators and marine conservation advocates. It served as a laboratory to come up with tech-based solutions for Filipinos, by Filipinos, for our rich but threatened marine areas.”

Teams pitched their solutions to a panel of judges on the final day of the program. The Haquathon winner in Manila was Trevali (TRaceability and EVALuation Intelligence), an app allowing small-time fishers to certify and trace their catch while countering IUU fishing.

Runners-up in Manila included Junk Exchange, Project Serena (Solid Entraining Receptacle for Enviro Nautical Applications), and AQUAloop. Junk Exchange is a solid waste management proposal to prevent marine pollution via a “crowd-junking system.” Project SERENA is a microplastics filtration device for fighting marine pollution in marinas and community estuaries. AQUAloop is an off-grid, economical marine buoy system that gathers and transmits ocean data for research and education.

The Cebu winner was ParrotFishNet, an app that helps protect marine sanctuaries and coral reefs by employing Internet of Things (IoT) technology.

Runners-up in Cebu included KaPatrol App, WAQ (Water Quality Monitoring System), and Reef Patrol. KaPatrol App is an offline mobile app for reporting and monitoring illegal fishing activities. WAQ is an IoT system that measures water quality in coastal areas and aggregates results into a dynamic database. Reef Patrol is an app providing the public with real-time reef data for educational purposes, as well as to help the government regulate activities that harm coral reefs.

Winning teams and runners-up received seed grants of up to P80,000 to help them implement their solutions. The US Embassy and SPS will provide the eight teams with coaching, networking opportunities and technology development support to turn their ideas into viable products.

Trevali team member Laurice Janette Dagum said, “We are a start-up that creates underwater analytics and surveillance by taking videos under the sea. Due to the issue of illegal fishing, we were interested in helping fishermen through our app. When we heard about the Haquathon, the financial prize was only secondary as what we really wanted was validation that there’s a need for the app.”

Winning teams will reconvene early next year to present their finished prototypes to Philippine government agencies and NGOs as potential partners for implementing the solutions.

a decade ago,” he continued.

Recent data breaches here and abroad—the Cambridge Analytica controversy, for instance—show how legal regulations governing the cyberspace need to keep up in this day and age. In the recently concluded Law x Tech Summit held on last June 25, 2019 at the Dusit Thani Hotel, data protection and cyber security were among the pressing topics discussed by its speakers, panelists and participants.

“Our digital footprint is everywhere and we can’t help it. Social media and mobile utility apps are not just engaging us—they impact our lives on a fundamental level as they accelerate efficiency and guarantee convenience,” said Atty. Francis A. Africa, a partner at Gorriceta Africa Cauton & Saavedra.

He further explained that while

consumers need to take up conscious habits in preventing fraud and identity theft, both regulators and tech providers must take on a deeper sense of responsibility in ensuring consumer protection and education in navigating the cyberspace.

Due to the generous end-user accessibility made possible by the World Wide Web, IP protection laws in this centur y are disrupted and must, therefore, innovate. “Exponentially growing, cutting-edge competition for start-ups means a heightened need for intellectual-property [IP] protection,” said Chiew Yu Sarn of Yusarn Audrey, a law firm based in Singapore with offices in Thailand and Malaysia that specializes in intellectual property and technology law.

“In enabling the law and tech landscape in the Philippines as a space where intellectual property is duly respected and attributed, we shared how companies in Singapore can better secure their brand, products and services through our best practices in harnessing IP protection laws and regulations, and we’d like to share this expertise for the benefit of the growing sector of Philippine startups,” he continued.

Financial technology or fintech has become a buzzword in recent years. Most fintech companies offer loans with the aim of servicing unbanked and providing better access to financing.

“Fintech requires an adoptable regulatory network that will help all tech stakeholders achieve the common goal of maximizing public benefits,” Gorriceta said. “Regulators must become agile and collaborative with innovators in coming up with viable financial services that are both optimally governed and optimally delivered to their target markets,” he further added, explaining that gathering regulators, legal actors and start-up leaders is a key objective of the Law x Tech Summit.

Tit led “L ega l a nd Reg u l ator y Frameworks on Emerging and Disruptive Technologies in the Philippines and Southeast Asia,” this year’s Law x Tech Summit included enterprise and consumer protection, digital asset offerings, virtual currency exchanges and other virtual currency business activities, crowdfunding and enterprise navigation through tech ecosystems.

Also present in the event were

representatives of key government regulatory agencies, leading tech law experts from the Philippines and Singapore, and key tech players in the Philippines. His Excellency Singapore Ambassador to the Philippines, Gerard Ho, graced the event as he highlighted economic potential and economic benefits to be reaped through the strengthening of business and technological ties between Singapore and the Philippines. “ From t h i s d ay a nd onw a rd , through our Law x Tech Summit we will aim to gather thought leaders, government actors and leading legal minds aimed at generating thoughtprovoking discourse on the Philippines’s present and future legal regimes as applied to disruptive technology,” Gorriceta said.

“It is the responsibility of our present-day lawyers to ensure that the nation is thriving in the fastpaced digital landscape—if not leading the way—and, at the same time, to operate in a way protective of not just the enterprises they advise and represent but, more important, the general consumers and society at large,” he concluded.

Human relations in the workplace

By Angelic P. De Vera, PhD

Principal III, Jones Rural School Jones, Isabela

R

ELATIONSHIPS between employees and management are of substantial value in any workplace. A human relation is the process of training employees, addressing their needs, fostering a workplace culture and resolving conflicts between different employees or between employees and management. Understanding some of the ways that human relations can impact the costs, competitiveness and long-term economic sustainability of a business helps to underscore their importance (Matt, 2007).

Most often, because of too much

engagement toward work, superiordelegated information is relayed through text messages. However, the superior also conducts meetings when the need arises. It is here where he/she informs the school heads what things need to be prepared and submitted with regards to Department of Education programs, activities and projects. The superior that maintains high levels of positive interaction and support to their subordinates increase performance on the job and gain respect from the subordinate.

Relationship is related more positively when employees feel they have more positive interactions with superior than negative interactions.

Employees who are considered part of the manager’s in-group have a quality exchange.

Although the superior-peer-subordinate relationship is complex, it is filled with many opportunities to make the relationship meaningful and productive. Employees in the workplace who have good relationships with each other regardless of their position tend to rate their performance higher due to their feeling of trust and respect toward each other.

Human relations occur on several levels. Individuals interact in a variety of settings as subordinates, peers and superior. No matter what the setting, relationships are built.

It is important for everyone whether

subordinates, peers or superior to develop positive interpersonal relationship that are valued by everyone.

Building relationship among subordinates, peers and superior is the best way to close each others’ productivity gap. It also promotes one’s personal effectiveness and productivity as an employee regardless of position because when one takes the time to develop these relationships, each member will be able to produce more quality work through their efforts. Good relationships must be built among individuals and within groups of an organization.

Although it is not an easy task, success without relations is not possible.

Every individual must be prepared to meet the challenge.

NATIONWIDE BARISTAS’ QUEST KICKS OFF IN DAVAO, FOLLOWS IN CEBU

B

ARISTAS and coffee enthusiasts across Southern Mindanao are in for a thrill as Baristas’ Quest kicks off its first leg of competition in Davao City with the Flavors + Profiles: Coffee Triangulation—a cup-tasting activity at the Frog Kaffee.

Participants from Davao City and neighboring provinces joined in this cupping event.

Baristas’ Quest is a monthlong campaign of competitions created to empower and promote camaraderie among Filipino baristas and coffee

enthusiasts, and to showcase their skills in making coffee. Succeeding legs of the competition will take place in Baguio and Cebu this July.

Michael Harris Lim, president and CEO of Henry & Sons Trading and Manufacturing Co. Inc., who is also the 2019 Philippine National Barista Champion and the 2019 World Barista Championship Semifinalist, leads the Baristas’ Quest campaign.

Artists who can create designs using milk may register for the Coffee + Art: Latte Art Throwdown that will

be held on July 10 at Halfroom Coffee in Baguio City.

Meanwhile, individuals who can extract rich coffee flavors into a cup may register for the Kettle + Cup: Coffee Brewing Challenge that is set to happen at Tightrope Coffee in Cebu City on July 25.

Registration is free. Interested participants may register at bit. ly/BaristaQuest-Baguio and bit.ly/ BaristaQuest-Cebu.

The champions of these competitions will get the chance to represent

his or her region by getting a competitor sponsorship package for the National Coffee Championships, a travel allowance and accommodation to the Philippine National Barista Conference happening this September 20 at the SMX Convention Center Aura and a Comandante Grinder!

These events are cosponsored by the venue partners.

To know more about Barista Quest v isit www.facebook.com/baristasquest/ or contact Tony Dy at 0917153-1188.

‘Certification Course for Chief of Staff of Legislators’

T

HE most important person a congressman or senator will hire is a chief of staff (COS)—who can make or break a public servant’s success or reelection. This position requires a different skill set from the private sector to government service. Learning on the job could be a very slow process that could negatively impact on the effectiveness of your legislator who needs to show results within the first year of office.

With the clamor of many chiefs of staff and assistant chiefs of staff to have professional training, the Center for Global Best Practices (CGBP) will launch a pioneering program, entitled “Certification Course for Chief of Staff of Legislators” to be held on Thursday to Saturday, July 11 to 13, 2019, at the Edsa Shangri-La Hotel, Mandaluyong City.

This capacity-building program is aimed at

accelerating the learning curve of the COS to enable them to function optimally at work and in the service of the legislator and one’s constituency. This special training will discuss the best practices and effective ways on how to run the office; learn the functions of the different offices in Congress and how they relate to each other; the process of bill drafting and law-making, develop strategic relations; handle issues management; how to stay out of trouble while serving in the government and enhance public service; fund sourcing and fund-raising; valuable insights and best practices advice on how to be an effective chief of staff, and more! Whether you are new to the job, a tenured COS or aspiring to be one, this training will certainly help improve your ability to be more effective and efficient as a certified chief of staff.

Pursuant to Civil Service Commission Reso-

lution 96-7961, the prescribed qualification standards for supervising staff officer and chief legislative staff officer of the House of Representatives must have 16, 24 and 32 hours of relevant training, respectively.

CGBP is accredited by the Civil Service Commission. Attendees from the government can earn points for their career advancement and are exempted from the P2,000 limit set by COA when attending training programs conducted by the private sector based on DBM Circular 563 dated April 22, 2016.

Registration to attend this training is open to the general public. It is also recommended to all legislative staff and officers in Congress, lobbyists, and members of the media who want to understand the inner workings of Congress.

This will feature a lineup of expert speakers both from the government and the private sec-

tor who are distinguished in their own careers.

Interested participants are encouraged to avail themselves of the group discount for three or more registrants. Seats are limited and preregistration is required. For details and to register, visit www.cgbp.org, where you can also see a complete list of best practices training programs including government-related topics such as: Certification Course for LGU Administrators; What You Must Know about the Procurement Law IRR; How to Avoid COA Disallowances; How to Joint Venture Effectively with the Government; How to Prepare Unsolicited Proposals; How to Use Parliamentary Procedures; Best Practices in Business and Government Protocol; How to Conduct Management and Operations Audit and more! You may also call landlines in Manila (+632)842-7148/59 and (+632)5568968 or 69 and in Cebu (+6332)512-3106 or 07.

Marketing BusinessMirror

www.businessmirror.com.ph

Editor: Efleda P. Campos • Monday, July 8, 2019 E3

Does social media make us happier?

D

EAR PR Matters, Your recent column about having a positive mindset at work was very helpful. Looking at the bright side of things can really help us in our work and life.

I also realized how attaining this was simple, but like everything else, never easy. My friends and I would like to ask your thoughts on how we can achieve happiness today. While happiness is something we all wish to attain, does social media make this easier or more difficult?

By Millie F. Dizon

Sincerely, Tina Y. Dear Tina, The pursuit of happiness is top of mind for most of us today.

The United Nations has declared March 20 the International Day of Happiness, while World Smile Day is celebrated on October 20. The World Happiness Report ranks countries according to their happiness index. Yale University’s Psych 157: Psychology and the Good Life Course is considered the Ivy League University’s most popular class ever with 255,000 enrollees.

It is not only what is happening in the world, however, that can make us less joyful. Lifestyle shifts are another factor, and as you point out, social media is one of them.

The World Happiness Report 2019 notes that “over the past decade, the amount of time adolescents spend on screen activities—gaming, social media, texting, and time online—has steadily increased, accelerat-

WWW.FREEPIK.COM

PR Matters

ing after 2012 after the majority of Americans owned smart phones.” And the shift from face-to-face activities to online interactions, may have an effect on one’s wellbeing.

In an article “How to Be Happy in the Age of Instagram” in Gen T, Asia Tatler, Melissa Twig notes that “social media has created a world in which everyone’s lives seem perfect—apart from ours. Pick your poison. Whether it is the school friend who is seemingly never not on holiday, a university mate with a home out of a Nora Ephron film, an ex-colleague who can’t stop winning prestigious awards, or an acquaintance with two cherub-like babies, someone on social media

IABC highlights relevance of print as it supports UPMG

A COMBINED group of officers of the UPMG and IABC meet in support of the print industry.

By Cesar M. Cruz Jr.

Special to the BusinessMirror

T

HE International Association of Business Communicators Philippines strongly believes the print media has not lost it relevance, but has, in fact, raised the ante when it comes to credibility and truthfulness. This has been the main message in the recently held United Print Media Group (UPMG) fifth General Membership Meeting with the topic, “IABC and the Dynamics of Print Media in the Communications Industry” held at Senta Condominium, Makati City.

The event was hosted by sister companies BusinessMirror and Pilipino Mirror and sponsored by IABC. Marvin Estigoy, VP for advertising sales of BusinessMirror, in his opening remark, underscored the wonderful synergy achieved by IABC and UPMG for the print industry in the country.

Guest speaker Ritz Ronquillo, adviser of IABC Philippines, took center stage and shared her observations on the topic, “IABC and the Dynamics of Print.” She began by establishing a common ground among those in attendance, citing that everyone was involved in Communications. She quoted a movie line: “We complete each other, don’t we?”

“There can’t be an ad unless there’s content. What will you do with content if it’s not placed out there? We really have to hold hands,” she asserted.

Ronquillo, a self-confessed baby boom-

er and advocate of print, presented facts and figures based on the data she gathered from the senior members of IABC Philippines. She said 81.8 percent of respondents believe print is still relevant when it comes to truthful and trustworthy news. Likewise, 63.6 percent of them still relies on print as their major source of news.

The respondents said the relevance of print is due to several factors such as it still reaches a market, it has long-standing credibility, it offers in-depth discussions and appears to be less prone to mistakes and inaccuracies, the feel of reading on paper is still good (no scrolling and eye strain). Also, readers continue to believe that not everything viewed online is true, genuine and legitimate.

As to the belief of some people that print will die in 10 years or sooner, Ronquillo sees this as an opportunity to reinvent oneself in order “to ride the wings of change. I think you should do a SWOT analysis of your organization. Prioritize your strength and opportunities more than the threats. There are a lot of opportunities for print,” she beamed with pride.

The second guest speaker was Joe Zaldarriaga, chairman of IABC Philippines and columnist of Pilipino Mirror. He told his audience that print will continue to prevail. “In the provinces, newspapers continue to thrive.

There is a strong presence of community paper. At the end of the day, people will want satisfy their need for information,” he said.

For him, print is here to stay. “Digital

may have been the shiny new toy, but print will always be a classic favorite. Print is the Frank Sinatra in the world of K-pop, Justin Bieber and Katy Perry. It is the Godfather series amid the Marvel cinematic universe.

As a communicator, I believe that every medium has its purpose and if print’s purpose is to be the source of real and unbiased news and information,” Zaldarriaga said with confidence.

IABC and UPMG: Brothers in arms

BRINGING to life the sentiment of Ronquillo, adviser of IABC Philippines in her opening statement that those in attendance at the meeting must join hands as a symbol of their unity, the officers and members of IABC and UPMG at the end of the program locked their arms as a sign of their commitment to propagate print media in the country.

The meeting between the two parties served as an occasion to tackle important issues concerning the communications industry and help strengthen the bond of their friendship in the process.

The IABC is an international association of professionals in the communications industry which aims to better an organization by way of strategic communications.

Established in 1970, it currently has more than 11,000 members and more than 100 chapters in 80 countries. IABC Philippines holds the distinction of being the first chapter formed outside of the US.

is going to make you doubt yourself.”

The crux of the matter is that “we compare our inner, flawed messy lives to the photoshopped exterior lives of the people we follow on social media.” Ethan Kross, professor of psychology at the University of Michigan, who studies the impact of Facebook on our well- being, adds that “we are constantly bombarded by photo-shopped lives and that exerts a toll on us the likes of which we have never experienced in the history of our species. And that is not particularly pleasant.”

Jamie Chiu, a Hong Kong-based clinical psychologist, observes that

social media can also cause envy for ourselves. Most of us create glossy online lives for ourselves that bear only a passing resemblance to the reality of our existence.

“Envy of your own, curated online life is a very modern, widespread phenomenon,” Chiu said. “It’s important to remember how easily the brain is tricked. So even if you know full well that a photo album you shared doesn’t show the full truth of that particular holiday or period of your life, look back at it a few months later and your brain will be fooled into thinking that it is true.”

But can we be happy in an age of

Instagram and digitally curated lives?

Here are some things we can do: n Be mindful of the fact that we aren’t being shown an authentic version of one’s life and this should not affect us. n Pick up your phone less, but do not banish it altogether. Psychologists believe that anyone spending more than four hours a day on social media has an addiction and the World Health Organization has classified it as a mental disorder, as people consume social media instead of studying, sleeping, or working. n Monitor how you feel when you log in, Chiu said. “If you’re feeling low then do something else, but if you’re in a good mood, set a timer and go online for 30 minutes.” n Plan how to spend your leisure time—coffee with friends, a bucketlist trip, cooking classes, joining a social group, visiting relatives—so you spend a meaningful time in the real—and not virtual—world.

PR Matters is a roundtable column by members of the local chapter of the United Kingdom-based International Public Relations Association (Ipra), the world’s premier association for senior professionals around the world.

Millie Dizon, the senior vice president for Marketing and Communications of SM, is the former local chairman We are devoting a special column each month to answer the reader’s questions about public relations. Please send your comments and questions to askipraphil@gmail.com.

Perspective BusinessMirror

E4 Monday, July 8, 2019

www.businessmirror.com.ph

Europe squeezed in Iran-US nuclear deal dispute

THIS November 19, 2015, file photo shows a general view of a petrochemical complex in the South Pars gas field in Asaluyeh, Iran, on the northern coast of Persian Gulf. AP/EBRAHIM NOROOZI

T

By Jon Gambrell | The Associated Press

EHRAN, Iran—When it comes to saving Iran’s nuclear deal, Europe finds itself in the impossible situation of trying to salvage an accord unraveling because of the maximalist US sanctions campaign.

IN this file photo taken on May 28, 2012, Spanish fishing boats sit moored in La Linea de Concepcion, Spain, backdropped by the Rock of Gibraltar. The government of Gibraltar says it has detained a large tanker that is believed to be breaching European Union sanctions by carrying a shipment of Iranian crude oil to war-ravaged Syria. In a statement, authorities on the British overseas territory said port and law-enforcement agencies, assisted by the Royal Marines, boarded the Grace 1 super tanker early Thursday, July 4, 2019. AP/MARCOS MORENO IRANIAN President Hassan Rouhani speaks in a cabinet meeting in Tehran, Iran, July 3, 2019. IRANIAN PRESIDENCY OFFICE VIA AP

Since President Donald Trump unilaterally withdrew America from the accord over a year ago, a slow fuse has burned through Iran.

At first, it appeared Iranian officials thought they might be able to wait out Trump. They spoke about “strategic patience” as the US 2020 presidential election loomed.

That talk faded as US sanctions choked off Iran’s vital crude oil sales abroad and then began targeting its paramilitary Revolutionary Guard and officials including Supreme Leader Ayatollah Ali Khamenei. Soon, the talk changed to “strategic action” and making threats to the Strait of Hormuz, a crucial global oil supply point.

That action has seen Iran break the limit put on its stockpile of low-enriched uranium

under its 2015 nuclear deal with world powers. President Hassan Rouhani says that starting Sunday, Iran will begin enriching uranium to “any level we think is necessary and we need.”

Those steps combined could see Iran narrow the one-year window it needs to have enough material ready to potentially build a nuclear weapon, something Iran denies it wants to do but the atomic accord prevented.

To Iran, the only people who now can prevent further escalation in the crisis are in Europe. Among the parties to the deal are Britain, France and Germany, while the European Union also has aided in the diplomacy.

In public comments, it is Europe that Iran keeps targeting.

The “actions of the Europeans have not been enough so the Islamic Republic will move ahead with its plans as it has previously announced,” Iranian Foreign Minister Mohammad Javad Zarif said Monday.

Maja Kocijancic, a spokeswoman for EU foreign policy chief Federica Mogherini, said Thursday that Europe “called on Iran to reverse these steps and to refrain from further measures that would undermine the nuclear agreement.”

But what, if anything, the Europeans can offer remains in question. They’ve pointed to INSTEX, a trading vehicle that allows European and Iranian firms to send goods abroad and be paid locally to avoid American sanctions. However, questions remain if Iran will set up a matching system itself to facilitate the trade. The EU says from its side that INSTEX “is now opera-

tional and its first transactions are being processed.”

For Iran, being able to sell oil through INSTEX remains its most important concern.

“Without [an] oil deal, it’s very clear INSTEX will not work,” Iranian Oil Minister Bijan Namdar Zangeneh told Bloomberg this week.

However, Iran may have been able to export some oil to China last week despite sanctions.

The US appears poised to potentially sanction INSTEX if it moves outside the bounds of food and medicine, which America still allows to be sold into Iran. And even if it did, there’s no sign that any major company would be willing to risk US sanctions in the name of European diplomacy, something the Trump administration seems all too happy to point out.

“We have given European companies and other countries

and companies around the world a choice—you can either do business with the United States market or you can do business in Iran but you can’t do both. And every European company is going to choose the much larger American market over the Iranian market,” said Brian Hook, the US special representative for Iran, in an interview in Paris last week with The Associated Press.

Trump himself increasingly has criticized Iran over it not adhering to the deal he abandoned.

“Be careful with the threats, Iran,” Trump wrote early Thursday on Twitter. “They can come back to bite you like nobody has been bitten before!”

But Iran can bite as well. Already amid the crisis, Iran shot down US military surveillance drone worth over $100 million that it said illegally entered its

territorial airspace. The US denies that, saying an Iranian missile hit the drone over international airspace in the Strait of Hormuz, through which 20 percent of the world’s oil passes.

Iran repeatedly has threatened to close off the strait if it can’t sell its oil. In the last two months, mysterious attacks struck oil tankers near the strait. Iran denies being involved, while the US accuses Tehran of using limpet mines on the vessels.

While the strait remains open, insurance premiums for oil tankers have risen. While 80 percent of the oil passing through the strait goes to Asia, Saudi and Iraqi oil does find its way to Europe. Any impact to that flow through the strait likely will see global prices rise, hurting European consumers.

“The military confrontation between Iran, the US, and the Arab Gulf states over everything from the [nuclear deal] to Yemen can easily escalate to hybrid warfare that has far more serious forms of attack,” said Anthony H. Cordesman, an analyst at the Washington-based Center for Strategic and International Studies. “Such attacks can impact critical aspects of the flow of energy to key industrial states and exporters that shape the success of the global economy.”

Europe now finds itself directly involved in halting the flow of Iranian crude oil abroad. On Thursday, authorities in Gibraltar stopped an oil tanker believed to be carrying Iranian crude to Syria.

While Gibraltar said it made the seizure with British assistance over EU sanctions on Syria, the timing likely will not go unnoticed by officials in Tehran.

Spain’s claim the seizure came at the request of the US undoubtedly will get attention as well.

As Rouhani warned in December: “If someday, the United States decides to block Iran’s oil, no oil will be exported from the Persian Gulf.”