Businessmirror july 31, 2016

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AGROFORESTRY NURSERY A forester checks the growth of thousands of potted narra seedlings at the OceanaGold Sustainable Agroforestry Inc. nursery in Tucod, Cabarroguis, Quirino. The central nursery was established for the advance reforestation and rehabilitation program of the Didipio GoldCopper Project. Related story below. LEONARDO PERANTE II

Subic expects bigger cargo volume in 2016

By Lorenz S. Marasigan @lorenzmarasigan

W

ITH a l l the reforms that the seaport in Subic has implemented over the last few years, the volume of goods flowing in and out of the facility, deemed as the top international cargo shipping hub in Northern Luzon, should increase this year.

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto V. Garcia said the Port of Subic has shown “great potential, as more businesses utilize Subic as their entry point to the Philippines.”

Continued on A2

Inflation expected to fall below BSP target range

By Bianca Cuaresma

T

HE increase in consumer prices will still fall below the central bank’s target range for the year, even if markets expect an uptrend of inflation toward the second half of 2016, the economist of an international banking giant said.

In a recent commentary on Philippine inflation, Singaporebased DBS Bank economist Gundy Cahyadi said inflation likely returned to target range at 2.2

Correspondent

K

Dear Lord, do not take Your mercy from us. Your mercy surpasses all we can imagine. In hope and trust, we pray. In Your mercy, hear our prayer. Help us to seek and pursue peace and compassion. Revive the fainthearted and the sorrowful. Make us more hopeful and filled with grace.

Lead refugees to a place of welcome and safety. May You give us the desire of our hearts and make our plans succeed, especially in the field of making peace, unity and progress to our fellowmen. Amen!

Give Us This Day, Committee on Divine Worship, Shared by Louie M. Lacson, HFL

percent in July this year.

Cahyadi’s forecast is within the expected range for July inflation given by Bangko Sentral ng Pilipinas (BSP) Governor Amando M.

Tetangco Jr. recently, at 1.5 percent to 2.4 percent.

Monthly inflation has been missing the target range since May last year, causing the central bank to break its streak of a within-targetinflation average for six consecutive years; 2015 inflation averaged at 1.4 percent, below the government’s target of 2 percent to 4 percent.

Inflation in June pushed the average to 1.3 percent in the first half of the year, still below target.

This means that for inflation to graze the lower end of the government’s 2-percent to 4-percent target range for the year, the average inflation for the second half of the year must be around 2.7 percent.

Central bank officials earlier See “Inflation,” A2

OceanaGold welcomes mining audit

By Leonardo Perante II

MAKE OUR PLANS SUCCEED

@BcuaresmaBM

ASIBU, Nueva Vizcaya—In response to the call for comprehensive audits on all mining operations in the country, Australian mining company OceanaGold-Philippines Inc. (OGPI), which runs the Didipio Gold-Copper Project in this upland town, has expressed willingness to welcome the transparent audit by the national government that may cover technical, environmental and social development aspects of its mining operations.

OGPI SVP for Communications and External Affairs Ramoncito P. Gozar said the company is ready for any audit, and is confident of its track records on responsible

PESO exchange rates n US 47.0850

mining operations.

In his first State of the Nation Address, President Duterte called on mining companies to “shape up” and stop destroying the environment, but assured those complying with current laws on mineral extraction not to worry.

Earlier this year at the Wallace Business Forum, Mr. Duterte said he would support mining, as long as it upholds the stringiest environmental standards. He said the best he can see is the Australian standard. The President told members of the Wallace Business Forum to just follow the Australian standard and take care of the environment. “ T he OGPI Did ipio operat ion i s ISO 14 0 01- cer t i f ied , and is the first mining project to receive such accreditation in 2015 providing the criteria for

e nv i r o n me nt a l - m a n a g e me nt system mandated by the Department of Environment and Natural Resources,” Gozar said. The Aussie firm operates with OHSAS 18001, a certification on health and safety-management system.

In 2015 OGPI was awarded the Presidential Mineral Industry Environmental Award (PMIEA) for exhibiting outstanding level of dedication, initiative and innovation in pursuit of excellence in mining operations, environmental, safety, health management and community development.

“Any audit would also reveal OGPI’s significant contributions to its host communities over and above the mandated requirements under the Philippine Mining Act. Notable is the Didipio Community Development Corp. (DiCorp),

Struggling U.S. economy propped up by increased spending by consumers

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HE US economy stumbled in the first half of 2016 as companies retrenched, leaving consumers to shoulder the burden of sustaining growth heading into the presidential election.

A 4.2-percent gain in household purchases in the second quarter, among the biggest of the current expansion, was the lone bright spot in an otherwise bleary picture as the economy had its worst first half since 2011. Businesses hunkered down, trimming inventories and reducing outlays on equipment and construction projects, while government agencies also cut back. That limited the gain in GDP last quarter to a 1.2-percent annualized rate, figures from the Commerce Department showed on Friday, less than half the advance projected by economists in a Bloomberg survey.

While the magnitude of the surge in consumer spending is unlikely to be sustained, a strong job market will probably give Americans the means to keep driving growth, as Hillary Clinton and Donald Trump spar over who’ll lead the world’s largest economy.

A contentious election and u ncer t a i n g loba l g row t h prospects call into question whether companies will keep

hiring at a rapid clip and be more willing to invest.

“I don’t think US consumers can continue to do the kind of heavy lifting that they have done,” said Millan Mulraine, deputy head of US research and strategy for TD Securities USA Llc. in New York. “It means we must have some hand off of that work from consumers to business investment, in particular.”

Personal spending added 2.83 percentage points to second-quarter growth, while business investment, trade and government spending together subtracted 1.61 percentage points. That 4.4-point spread is the widest between the two groups since the end of 2001.

The passing of that baton is a shaky proposition given “the global uncertainty or even election uncertainty,” Mulraine said.

Last quarter’s disappointing gain in GDP followed a 0.8-percent advance the prior three months that was even smaller than previously estimated. The average 1-percent growth rate so far this year was the weakest first half since 2011.

T he Commerce Department’s report also included revisions to data going back to 2013. The updated numbers showed a more pronounced slowdown in the economy See “US economy,” A2

Continued on A2

n japan 0.4474 n UK 61.9968 n HK 6.0708 n CHINA 7.0858 n singapore 34.7824 n australia 35.3138 n EU 52.1561 n SAUDI arabia 12.5557

Source: BSP (29 July 2016 )

A2 Sunday, July 31, 2016

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OceanaGold welcomes mining audit Continued from A1

which was established August 11, 2011 to assist the local community in creating sustainable business partnership among enterprising locals,” Gozar said.

DiCorp Chairman Henry Guay said his community-based business enterprise composed of 391 genuine Didipio residents, employs 372 local workers who offer services, like food catering, for the OGPI Operations and take charge in maintaining the 22-kilometer service road developed by the mining firm from Dibibi, Cabarroguis, Quirino to the Didipio mine site. DiCorp is one of the two top tax-payers in Nueva Vizcaya, next to OceanaGold.

“DiCorp is the best corporate partnership that binds original Didipio dwellers providing services of world-class standards,” Guay said.

The Didipio Operations employs more than 2,000 mining employees

Inflation. . .

Continued from A1

expressed optimism that inflation will return to within target on average for the year as expectations on higher inflation, from June to December this year, rise.

But the Singapore-based economist still sees inflation falling below the government’s target range

and feeds them daily for free from breakfast to dinner.

“We are now part of the big majority benefiting from the gold-copper project in the upland village in terms of job employment. My three girls are now employed. Two of them work for DiCorp and one works for the OGPI operations,” Rev. Pastor Efren Bulawan of the Lifeway Bible Church said.

Bulawan is a promining advocate who describes sustainable development in the upland village since the construction phase of the Didipio Operations.

“Everything in this world used by man to live is a mining product.

The food that we eat were cultivated and cooked by metal hardware. Our homes, schools, churches where we pray, publications that run newspapers, communication networks, computerized gadgets and transportation vehicles on or above ground are made from mined

for the year, which means inflation would miss its target for the second year in a row.

“Inflation is set to continue ticking higher toward the yearend, partly due to the low base effects, as well as pressure from food prices. Still, average CPI [consumer price index] for the year is likely to be manageable, just below 2 percent,” Cahyadi said.

“The BSP is unlikely to react too

metals. Our country is said to be rich in mineral resources, but how can we maximize the benefits from them if we keep importing metal products like cars and motorcycles from other countries? If Australia and New Zealand can do it, we can, too,” said a science student who refused to be named.

The mining firm has sent a number of university scholars to college. Some are now professionals connected with the company.

The OceanaGold Sustainable Agroforestry Inc. (OGSAI), the mining firm’s agroforestry arm, has already reforested over 1,300 hectares of land, planted more than 300,000 trees and donated more than 500,000 seedlings in support to the National Greening Program.

“Now that the Didipio Mine is in full-swing, we want to push sustainable environmental compliance with our advance rehabilitation programs and keep Oceana-

much to this data alone,” referring to potential policy actions from inflation developments.

The Philippine Statistics Authority (PSA) is expected to release the inflation print of the country for July in the first week of August.

The central bank, meanwhile, is to hold its monetary policy meeting on August 11. This will be the central bank’s fifth meeting to set monetary policy for the year.

Gold institutionalized as a ‘green’ env ironment-fr iend ly mining company,” OGSAI Chairman Jose Leviste Jr .said.

In a technical services agreement with OGPI as a service provider, OGSAI manages and operates a central nursery for the production of various agroforest tree seedlings needed in the commercial tree plantation and implement reforestation projects of the mining firm.

“For a large-scale mining project, like Didipio Mine, employing a water-treatment plant equipped with clarifying systems is environmentally necessary,” Gozar said.

Low-quality water gets extracted and treated. After the cleaning process, the already-clean water is recycled back to the ecosystem with improved water balance.

“We initiated and constructed the water-treatment plant to have a cleaner water discharge that could exceed compliance-requirement

standards prescribed by the Environment Management Bureau,” Gozar said.

The environment department has granted the Didipio project with a wastewater-discharge permit for Tailings Storage Facility.

Gozar added that OceanaGold’s Tailings Storage Facility is cyanidefree, and Didipio ore qualities have high neutralizing capacity preventing acid-mine drainage.

“The mining project runs according to world-class standards and high-tech operations using computer-aided concentrate processing system for precision. We hate to see any margin of error, because we are aware of the punishing consequences the project may suffer. We cannot afford breaking the mining law, because we are conscious that severely violating it would shut down a big-time investment,” Gozar said.

A geolog ist by profession,

Gozar said the project is environmentally compliant and safety conscious in its operations and remains committed to ethical, responsible and sustainable mineral development.

Cagayan Valley Mines and Geosciences Bureau Regional Director Mario Ancheta said his office, which regulates mining projects in the region, keeps a tight watch on the first large-scale mining project in the country granted a Financial or Technical Assistance Agreement (FTA A) contract with the national government during the term of former President Fidel V. Ramos.

“We support the ‘airtight mining audit’ ordered by our Environment Secretary Regina Paz L. Lopez.

Actually, we have been strictly implementing such mining regulations and we would automatically suspend or cancel their permits once mining firms in the region violate the law,” Ancheta said.

Another oil-price rollback expected

By Lenie Lectura

T

@llectura

HE De pa r t ment of Energy (DOE) is ex pecting anot her round of price cut in petroleum products this Tuesday— mainly owing to abundant supply in the international oil market.

Director Melita V. Obillo of the Oil Industry Management Bureau, in a text message, said the

price rollback would range from P0.60 to P0.80 per liter on all petroleum products.

Based on DOE monitoring during the first four trading days of last week, there was abundant supply of oil in the United States, China, India and some parts in Asia. Besides oversupply, demand was weak, it said. “Domestic price may fall,” the agency said on Friday.

Meanwhile, Petron Corp. said on Friday night it would implement a P0.70-per-kilogram price rollback

in cooking liquefied petroleum gas (LPG) and P0.40 per liter for its auto LPG by P0.40 per liter on August 1.

On July 26 most local oil companies implemented price rollbacks in gasoline by P0.10 per liter, diesel

by P0.35 per liter and kerosene by P0.30 per liter.

These price movements brought the year-to-date adjustments to net increase in gasoline by P0.94 per liter and diesel by P4.28 per liter. LPG remains at net decrease of P7.78 per kilo.

Subic expects bigger cargo volume in 2016 Continued from A1

“We anticipate a growth in volume as more and more companies capitalize on the services and facilities here and the much greater access and efficient transportation of goods the area provides,” he said.

Together with the Subic Bay International Terminal Cor p.

(SBITC), the SBMA has opened a one-stop shop (OSS) in its new container terminal (NCT) 1, significantly reducing port document processing time from one day to a mere four hours.

Roberto R. Locsin, general manager and president of SBITC, said that, with the recent upgrades, the port would be more efficient in handling the expected surge in cargo volume.

“The upgrades will ensure that our clients, both local and international, will receive world-class port service at the shortest turnaround time,” Locsin said.

T he OS S a l so prov ides a designated lounge where brokers are given access to Wi-Fi and workstations. The company also recently acquired from Finland Generation G reach stackers that have a 45-ton lift capacity.

To date, the port offers cargo-

US economy. . .

Continued from A1

heading into 2016. The yearover-year growth rate cooled from 3.3 percent in the first quarter of 2015 to 1.9 percent in the fourth quarter.

The year-over-year deceleration continued into 2016, reaching 1.2 percent in the second quarter, the worst performance since 2013. The slowdown may a lso change the ca lcu lus for the Federal Reserve (the Fed), which has been trying to time its next interest rate hike. Earlier this week the US central bank signaled the potential for an

handling services for both 20- and 40-foot containers, as well as the bigger 45-foot boxes for a full container load (FCL) and especiallyhandled cargo. The terminal also allows 10-day free storage for cargo exports and imports.

In 2015 SBM A introduced lower harbor and berthing fees resulting in a 75-percent increase in regular port calls from shipping companies that have been doing business in the area for years and new ones ready to take advantage of the latest opportunities.

With strategic business partnerships, trucker costs are now more competitive amounting to almost only a third of the previous price.

“Our seamless and cost-effective transfer of goods allows port users to maximize their business operations,” Locsin said.

With an annual capacity of 600,000 twenty-foot equivalent units (TEUs), the terminal is projected to exceed last year’s 120,000TEU cargo volume, now that more business enterprises from nearby Bataan and Clark Field in Pampanga course their cargo through Subic.

Garcia said his group believes that Subic is the best option for businesses that carry imported and exported goods to and from

North and Central Luzon.

Garcia also noted that the SBMA has adopted a preadvise system for trucks to improve traffic flow in and out of the free-port zone. This system was first implemented in the Port of Manila and has already made significant improvements in minimizing the dwell times in the port. This is the same efficiency expected to benefit the companies in the Subic port.

“All of these developments in NCT-1 and 2 manifest our readiness to accept the much greater volume of cargo in the port,” Garcia said. “We continue to strive to deliver world-class ser vice and management in our operations as part of our mandate and continued commitment to help drive economic growth in the country. The much greater volume will pose a completely new set of challenges.”

Subic has been making headway in terms of transshipment and maritime logistics services, overshooting its 2014 port revenue of P908.6 million by 25 percent, with a P1.16-billion collection last year. The port has significantly grown in 2015, as it recorded a 123,558-TEU cargo volume, from just 77,618 TEUs in 2014.

increase at some point this year.

The negative surprise “cuts the legs out from under our September Fed hike call,” Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York, wrote in a note to clients.

Officials “won’t take any comfort in today’s number.”

Some economists were more sanguine. Now that companies have cut back on the amount of goods on hand, any subsequent gains in consumer spending will be met by increased orders and production, which contribute to economic growth. Additionally, the plunge in oil drilling that’s weighed on business investment will probably subside now that

oil prices have stopped falling.

“We expect to see a little more balanced growth in the second half,” said Michael Feroli, chief US economist at JPMorgan Chase & Co. in New York. “ There’ ll be some steady ing in capital spending, because the energy cycle has stabilized. The inventory situation turns more favorable.”

Still, one pillar of consumer spending looked a little more tenuous. Readings on wages and salaries were revised down for the first quarter, leading to a $10.2-billion drop from the previous three months. Worker pay over the past six months was the weakest over a similar period in three years.

Bloomberg News

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Bello orders prosecution of arrested ‘illegal’ recruiter

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ABOR Secretary Silvestre H. Bello III on Saturday ordered the immediate prosecution of an alleged large-scale illegal recruiter who was arrested by Criminal Investigation and Detection Group agents, in cooperation with the Philippine Overseas Employment Administration (POEA) personnel, in an entrapment operation last week in Quezon City.

“I commend the government operatives for their successful manhunt operation against this illegal recruiter who has been preying on hapless Filipino jobseekers. We have to get rid of these nefarious individuals, and we have to stop their operations. As I have emphatically stated in my assumption into office at the Dole [Department of Labor and Employment], stamping out of illegal recruiters, illegal-recruitment agencies, as well as those involved in human trafficking, will be one of my priority policies,” Bello said.

POEA Administrator Hans Leo Cacdac reported to Bello that the Anti-Transnational Crime Unit (Atcu) of the Criminal Investigation and Detection Group arrested Antonio Garate Toca Jr. for alleged violation of Section 6 (Large-scale Illegal Recruitment) of Republic Act (RA) 8042 (Migrant Workers and Overseas Filipinos Act of 1995), as amended by RA 10022, and Swindling under Article 315 of the Revised Penal Code.

Toca, 49, of 13 East Fairview, Que-

zon City, was arrested in an entrapment operation conducted on July 25 at about 1:30 p.m. in a fast-food chain in Quezon City.

Cacdac said the arrest resulted from the case-build-up referral by the POEA’s Anti-Illegal Recruitment Branch (POEA-AIRB) to the police.

“The complainants sought the assistance of the POEA in verifying information about the recruiter. Our initial investigation disclosed that Toca promised complainants jobs in Canada under the ‘direct hire’ scheme. Each of them was collected an amount ranging from P15,000 to P40,000 for the processing of their travel documents,” Cacdac said.

Cacdac added that Toca is not licensed nor authorized to recruit workers for overseas employment.

Verification also revealed that Toca was a recruitment staffmember of OFW Recruitment Agency from March 1, 2013, to June 28, 2013. The license of said agency was canceled on June 13, 2013, for recruitment violations.

“We have promptly advised the complainants on the proper way of applying for overseas employment and the courses of action they could take against their recruiter,” Cacdac said, adding that the complainants decided to file a case against their recruiter; hence, it was endorsed to ATCU-CIDG for an entrapment operation. Four complainant-victims were present during operation.

Joel R. San Juan

Sunday, July 31, 2016 A3

DOTr aims to double Edsa MRT capacity by mid-2017

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By Lorenz S. Marasigan

@lorenzsmarasigan

HE Department of Transportation (DOTr) has laid out a short-term plan to double the capacity of the Metro Rail Transit (MRT) Line 3 that runs on Epifanio de los Santos Avenue by mid-2017.

DOTr Spokesman Cherie Mercado-Santos said the agency camp has a three-phase strategy in addressing the capacity problems of the train line.

For the first three months of the Duterte administration, the transportation department is moving toward adding at least 1,000 passengers to the passengers per hour per direction (PPHPD) capacity of the MRT. “We are targeting to increase the number of operating coaches from 48 to 60, which will hopefully run from 40 kilometers per hour [kph] to 50 kph, with a headway of four-and-a-half minutes from the present five,” Santos said.

The net result of this is the increase of PPHPD from 14,184 to 15,760, she said.

In six months, the transportation department wants to maintain the 20 train sets operating daily, but plans to increase the speed from 50 kph to 60 kph, thus reducing headway from 4.5 minutes to 3.75 minutes.

“This is possible through the grinding of the tracks. According to our rails undersecretary, the grinding of the tracks can make a difference in the speed. The principle of when it’s smoother, it runs

faster,” Santos explained. “We have also facilitated the procurement of spare parts for the trains that don’t function.” With this, she said, “the PPHPD, then, will rise from 15,760 to 18,912.”

By mid-2017, the transportation department should have lessened the headway to three minutes, from 3.75 minutes, by increasing the speed to 60 kph. This will lead to a net of 31,520 PPHDP, or more than double the current 14,000 PPHDP. “Hopefully, some of the trains that were ordered have arrived and the spare parts have been delivered by that time,” Santos said. “We are also modifying the train sets to four coaches from three.”

The previous administration ordered 48 new train cars from Dalian Locomotive and Rolling Stock Co. of China. Some of them have been delivered and are currently being tested by the government.

Curerently, the MRT operates 15 to 20 trains daily. It is designed to handle 350,000 passengers per day, based on its rated capacity. It also has a crush capacity of 560,000 passengers per day.

The train system handles about 350,000 passengers per day, but operates under capacity owing to the dilapidated trains and wornout tracks.

Paying MMDA fines made easy

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AYAD Center branches nationwide started accepting payments for fines imposed on traffic violators in Metro Manila starting July 29.

The move, Chairman Emerson Carlos of the Metropolitan Manila Development Authority (MMDA), was done so as not to inconvenience traffic violators who come from the provinces.

In addition, Carlos said all Metrobank branches and MMDA redemption center in Makati City will accept payment for fines, Carlos said.

“We are making available all the facilities near them [violators] to settle the fines immediately, and avoid being on the alarm list of government agencies when they are applying for clearances or are renewing their vehicle registrations or driver’s licenses,” Carlos said.

Motorists who fail to settle fines for traffic violation are not allowed to renew their driver’s licenses or vehicle registration at the Land Transportation Office.

It may be recalled that on June 6 the MMDA signed a memorandum of agreement with SM Bills Payment and Bayad Center in a bid to provide more payment centers nationwide for motorists cited for traffic and other street violations. Claudeth Mocon-Ciriaco

SundayV

Busine

A4 Sunday, July 31 2016 • Editor: Angel R. Calso

editorial

Mixed signals

I

T has been two weeks since the decision was handed down in the case the Philippines filed against China before the Permanent Court of Arbitration. While many were expecting some sort of dramatic movement, nothing has really changed.

For China’s part, it has “barked” a lot, but, at this point, has not done any “biting;” there is no indication there have been any changes at the Panatag Shoal.

There also have not been any undue encounters between the US Navy and the People’s Liberation Army Navy.

By the same token, Filipino fishermen are still staying away from their traditional fishing grounds. The only substantial development from our side is that former President Fidel V. Ramos may be going to China to talk over the situation with Chinese officials.

Foreign Secretary Perfecto R. Yasay Jr. has come under intense criticism for what he has said and done in the last two weeks. The criticism may be valid, because he seems to have been sending mixed signals to both Filipinos and Chinese. But, then again, the issue is surrounded in “mixed signals”.

The Asean cannot decide on a unified response either because a) the Philippines is not pushing for it; or b) China’s Asean allies are blocking a strong statement against China. It all depends on who you listen to for the answer.

The European Union also has not been able to unify behind a consensus declaration. The French say they intend to send a ship or two to ensure the freedom of navigation in the regional waters. But this is going to happen “sometime this year,” and France has much more serious terrorism problems to deal with.

In Manila US Secretary of State John F. Kerry echoed the US response about “both parties”—China and the Philippines—adhering to and following the international rule of law. One interpretation of those laws should mean the Philippines would have completely unrestricted access to the waters of its Exclusive Economic Zone, but that is not happening.

Further, Kerry stated that “he had candid and constructive discussions, including a meeting with Chinese Foreign Minister Wang Yi on Monday, about a ‘path forward,’ in light of a decision by the Permanent Court of Arbitration.”

That sounds all well and good, but we were hoping that the way forward would mean China’s going back to its own territory and taking its ships and personnel.

Kerry also met with Japanese Minister for Foreign Affairs Fumio Kishida and Australian Foreign Minister Julie Bishop for the sixth ministerial meeting of the so-called Trilateral Strategic Dialogue. From this meeting came the statement: “The three voiced their strong opposition to any coercive unilateral actions that could alter the status quo and increase tensions.”

Wait a minute. The “status quo” is that China is occupying territory whose economic rights belong to the Philippines. If we wanted the status quo, we would not have gone to the Arbitration Court. It is going to be a long year.

Are we not seeing a rare phenomenon?

I

ASKED this question because it took only exactly 31 days today for a simple man what his five predecessors failed to do in 30 years: To put a clearer direction to where this beautiful country is going.

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By Cecilio T. Arillo

I am referring to hardworking and visionary President Duterte, 71, a proud promdi, who, in just one month in office with no budget of his own yet, has cleared the streets of drug addicts and pushers; served notice to grafters, corruptors and other fraudsters; tamed terrorists and separatists; unified the fragmented police and military organizations; brought together the divided and vociferous Congress; stopped red tape in government; fast-tracked the issuance of permits and clearances; set a direction for good, honest and progressive governance; and, among others, declared a total industrialization direction for the country.

In that 30 years, or one generation to be exact, the country saw the presidency change hands five times, from Corazon C. Aquino, to Fidel V. Ramos, to Joseph E. Estrada, to Gloria Macapagal-Arroyo and to Benigno S. Aquino III, who spent an accumulated budget of more than P35 trillion and yet, the country, despite its strategic location and vast natural and human resources, remains today at the bottom of the five original founding members of the Asean organized in 1967.

The other four, already industrialized and economically progressive, are Singapore, Malaysia, Indonesia and Thailand.

But why have they become progressive?

The answer is simple: They have become industrialists with clearly defined social- and national-security policies. In short, they care more about economics than they do of politics. Most of all, their constitutions are clear, simple and easy to understand.

By comparison, the Philippine Constitution even posed as an instrument of its perpetual enslavement, having remained a neocolonial, agrarian and feudal State.

For instance, Article XII, Section 1, Paragraph 2 of the Constitution reads as follows: “The State shall promote industrialization and full employment based on sound agricultural development and agrarian reform through industries that make full and effi-

cient use of human and natural resources, and which are competitive in both domestic and foreign markets. However, the State shall protect Filipino enterprises against unfair foreign competition and trade practices.”

If you analyze it, this provision automatically prohibits an industrial policy based on the heavy industries and the application of protectionist measures against foreign competition, whether fair or unfair.

The late Harvard-trained lawyer-economist Alejandro “Ding” Lichauco said: While the provision stipulates that the “State shall promote industrialization,” it simultaneously qualifies constitutional directive with an entire complex of conditions and limiting reservations, which makes it impossible for the State to adopt any industrialization strategy, other than one that is specifically and exclusively based on “sound agricultural development and agrarian reform,” whatever that means.

“For example,” he said, “the provision literally prohibits an industrialization strategy based on the heavy industries, like steel, chemicals, machine tools and machine production. That’s precisely the kind of strategy that made newly industrialized countries [NICs] of our neighbors.”

“This provision contradicted Section 7, Article II, of the Constitution [Declaration of Principles and State Policies]: The State shall pursue an independent foreign policy. In its relations with other states, the paramount consideration shall be national sovereignty, territorial integrity, national interest and the right to self-determination,” Lichauco argued.

He pointed out t hat “Ou r neighbors, particularly South Korea and Taiwan, didn’t transform into NICs through the industrialization strategy explicitly mandated by the above-cited provision of our Constitution. Those countries, imitating Japan, pursued an industrialization strategy anchored on the development of industries based on and moved by machine power rather than on ‘sound agricultural development and agrarian reform.’”

According to him, real industrialization program is one that is based on what is known as the

capital-goods industry—industries based on machine power and the production of what is known as the means of production. Any other industrialization program can only be a program based on light consumer industries that are totally dependent on industrial raw material and industrial machines produced by the industrialized countries.

President Duterte was right when he took issue against the f lawed 1987 Aquino Constitution that arguably reduced the countr y to the pre-industrial age, economically and socially retrogressing, instead of progressing. He was very clear on this when he declared at his first State of the Nation Address to adopt full industrialization for the country.

It can be recalled that after the fall of the Marcos regime following the 1986 Edsa mutiny, the succeeding administration of the late President Aquino invoked the powers of a revolutionary government, abolished the 1973 Constitution, scrapped the Batasan Pambansa (Parliament), the Supreme Court, local government units and the civil and military services.

To provide her administration with democratic legitimacy, it arrogated power unto herself, hand-picked 48 men and women, including prelates and suspected communists, and framed the 1987 Constitution, the substance and wordings of which, due mostly to the hatred of Marcos and accommodations of the diverse political, social and economic interests of the framers, became the longest in Philippine history and probably in the world.

As a result, it had 97 openended and ambiguous provisions that were entrusted to Congress to provide the enabling law with equally nebulous phrases: “...as may be provided by law” or “as Congress may provide.”

The ball game is now with Congress to convene it into a constitutional assembly to revise or amend as soon as possible the 1987 flawed Constitution.

Failure to do so will be on the conscience of the members of Congress, which, for sure, will hound them forever.

To contact this writer, e-mail cecilio. arillo@gmail.com

Voices

essMirror

opinion@businessmirror.com.ph • Sunday, July 31, 2016 A5

A real Sona A

ND there it was, the State of the Nation Address (Sona), which one guy said made him cry at the rehearsal, and another guy claimed would be cinematic in effect. It did not make anyone cry.

Free Fire

By Teddy Locsin Jr.

And its only effect was to show that cinema should stay in the movie house and away from Congress. True, a woman in native costume sang the national anthem, but that about summed up the endeavor to turn an occasion of state into a reality show.

But what was not a Sona in the old sense turned out to be something new and better. It was the self-rescue of an elected candidate, for whom a despairing majority had voted as the dangerous alternative to a bunch of safe bets. He had rescued himself from a vile attempt to domesticate him and turn him into something big business can live with, and under whom politicians can steal again.

This cussing, rough and tumble candidate, shot from the hip, spoke off the cuff, and talked out

of turn deep and disturbing truths about our fundamentally violent society and politics (because what the poor suffer is violence—the violence of want, of shame, of penury) and of the necessity— indeed, the imperative—to force change on them.

Sure, everyone wants change.

The poor want a change for the better. The rich want a change from getting a lot, to getting a lot more.

And so President Duterte set aside a plodding, tedious and pedestrian text. He told the teleprompter operator time and again to freeze the frame or speed up the paragraphs, which he just mumbled, so he could speak—not from the heart, which is for fools—but from a head whose eyes have seen the suffering, whose ears have heard the cries and whose mouth had

The death of the central bank

By Michael Schuman Bloomberg View

F

OR the past 70 years, Japan has been a crucible of experimentation in economic policy. During its go-go years, Tokyo’s unusual practices to spur rapid growth became a model for much of the rest of Asia, while its unconventional attempts to revive its postbubble economy have helped economists understand what should and could be done to recover from financial crises.

Now, Japan may be offering the world yet another lesson in economics—on the outer limits and ultimate effectiveness of monetary policy itself.

Bank of Japan (BOJ) Government Haruhiko Kuroda disappointed investors on Friday, when he offered only a minor boost in his asset-buying program as his latest effort to beat deflation and raise growth. With talk of “helicopter money” and other exotic

strategies, many had convinced themselves that the BOJ would try to surprise markets with a much more dramatic decision. Voices immediately called for greater action.

“We still expect the bank to do more,” wrote economist Marcel Thieliant of Capital Economics in a Friday note.

In his news conference, Kuroda insisted that he wasn’t done yet— there were more bonds to buy, more rate cuts to try. But the truth is, at this stage, three years into his radical program to restart Japan, the BOJ might just be a spent force. As HSBC economist Frederic Neumann put it in a Friday report: “Today’s decision suggests that the BOJ has reached the limits of its current policy framework.”

Kuroda has already thrown everything into his fight to save Japan. Through his extensive program of quantitative easing, his bank now holds a third of all

outstanding government bonds, and some experts believe there are limits to his ability to buy more and more of them. Yields on many of these bonds are already negative, which means the investors who are lending their money to the government are paying for the privilege. The total assets of the BOJ have more than doubled in just the past three years.

Even if Kuroda could expand the easing program, there’s little reason to think it will make a big difference. At this point, further rate cuts or more bond-buying would only be on the margins of his actions thus far. And those haven’t gotten the BOJ very far.

By one key measure, the economy sunk deeper into deflation in June.

Earlier this month, the International Monetary Fund reduced its growth forecast for 2016 to an anemic 0.3 percent.

The fact is that BOJ can pump

given a new lease of hope to those who had all, but lost it.

Mr. Duterte did away with the scripted Sona because he could not think of a better time to tell the people what they need to know more than his program of government. And that is that they…had not…lost…him.

They had not lost him to vested interests, to the officials in their pockets, and the politicians at their beck and call.

So, no, he will not tone down his rhetoric. No, he will not water down his promises or downsize the expectations he gave the electorate of a safe, a prosperous, and a just and equitable society—or he will die in the trying.

For in the past three weeks, word had gone out that President Duterte was being domesticated

for business as usual, and that change—as he promised the people and threatened the rich—will not happen after all.

Yesterday, he was himself again and more. He took a swipe at the super majority, who did not vote for him anyway, and made it clear that they would get nothing in return for their defection to his side—nothing, but the chance to redeem themselves in the service of the Filipino. He will not tolerate corruption in Congress or in the circle of his Cabinet nor exploitation by the rich or more violence from the violent.

So, was that a Sona? In the ordinary sense, no; in another sense, yes. What he said is the State of the Nation under President Duterte— and it will stay that way while he has breath in him.

out as much cash as it wants, but unless companies and consumers use it to invest and spend, Kuroda’s “bazooka” can only fire blanks.

The government simply hasn’t advanced the critical reforms—from deregulation to labor-market repair—that would unleash new opportunities and convince investors to borrow, build and create.

Arguably, the case could be made that Japan would be much worse off without Kuroda’s experiments. But with so much largesse creating so little positive effect, we, at least, need to question if further easing could achieve that much more. In fact, greater action could have a damaging effect, by further straining banks and punishing savers. And those concerns are only going to grow over time.

Kuroda may need to pretend he has unlimited room to maneuver in order not to spook markets. But he’s running a high risk of under-

whelming them again, given the very real constraints on action.

There are uncomfortable lessons here for other central bankers. Mario Draghi, president of the European Central Bank, is, like Kuroda, under constant pressure to take more drastic steps to stoke inflation and growth. But Kuroda’s experience should act as a warning that his bank may eventually hit a ceiling, as well. In China, where policy-makers are easing money to spur growth, the BOJ’s traumas are clear proof that expanding cash without implementing true structural reforms only goes so far.

Kuroda’s only hope may be to tinker further with his unorthodox policies and take even more radical decisions—such as lending to banks at negative rates.

Perhaps, Japan will continue to be a laboratory of economic innovation. The results, though, are likely to be sobering.

US govt report exposes exaggerated TPPA growth claims

By Jomo Kwame Sundaram Inter Press Service

K

UALA LUMPUR, Malaysia—A US government agency acknowledges that the Trans-Pacific Partnership (TPP) will not deliver many economic benefits promised by its cheerleaders.

The 2016 report by the United States International Trade Commission (ITC) acknowledges that the TPP will not deliver many gains claimed by the US Trade Representative (USTR) and the Peterson Institute of International Economics (PIIE), although it uses similar methodology and assumes that the TPP will not change the US trade deficit as a share of GDP. The ITC’s credibility has declined over the years as it earned a reputation for cheerleading free-trade agreements or FTAs. It had grossly underestimated US trade-deficit increases following virtually every “free-trade” pact it assessed. Its projections understated the large US deficit increase with Mexico following the North American Free Trade Agreement (Nafta), the huge trade-deficit explosion with China following “permanent normal trade relations,” and the trade-deficit spike with South Korea following the US-Korea trade agreement.

To assess the impact of the TPP, the ITC used its variant of a computable general equilibrium (CGE) model modified to take account of foreign direct investment (FDI) effects. To be sure, the ITC accepts growth to rise due to a significant increase in FDI, although there is no strong evidence or even logic that the TPP provisions will ensure

the increase in FDI and growth projected. In fact, the procedure used involves many arbitrary elements, such as the impact on the Organisation for Economic Co-operation and Development’s Regulatory Restrictiveness Index (RRI), and the impact of the latter on productivity, FDI flows and GDP, both in the US and abroad.

However, the ITC accepts only a fraction of the overall growth attributed to “nontrade measures” (NTMs) by the 2016 PIIE—and the World Bank—assessment, effectively rejecting many claims of growth attributed to other NTMs. Thus, for example, the ITC estimates exports will increase by only 1 percent due to NTMs by 2032 as against the PIIE’s estimate of 9.1 percent by 2030.

Thus, the economic gains from the TPP are much more modest for the ITC, with US GDP growing by only $42.7 billion (0.15 percent) by the year 2032, or by an average of less than 0.01 percent annually. Indeed, the ITC found that US manufacturing output in 2032 would be $10.843 billion lower with the TPP than without it, with manufacturing employment lowered by 0.2 percent. And while vehicles production would gain, automotive parts, textiles and chemicals output would contract.

Overall, projected gains to US real national income are $57.3 billion, or 0.23 percent, by 2032, implying an average annual increase of slightly over 0.01 percent over the next 17 years. The much larger increase in US national income compared to GDP suggests that the TPP will significantly in-

crease (mainly corporate) income from economic activity abroad, presumably from outward FDI. It is not clear how much of this is due to enhanced intellectual property rights (IPRs) or TPP-related financial liberalization, or if such income changes have been considered. An alternative possibility is that the terms of trade will change sufficiently in favor of the US. The ITC expects the TPP to have small positive effects on the US economy. Dropping the usual CGE modelling assumption of an unchanging trade balance, it adopts a controversial methodology to project changing trade balances.

According to the ITC, US exports and imports would be $27.2 billion (1 percent) and $48.9 billion (1.1 percent) higher than “baseline projections” without the TPP, thus increasing the US trade deficit to $21.7 billion in 2032. It projects that US exports to new TPP and other FTA partners would grow by $34.6 billion (18.7 percent), while US imports from them would rise by $23.4 billion (10.4 percent).

The ITC projects increased exports of $27.2 billion in 2032 (in 2017 US dollars), less than a tenth of the PIIE’s projection of $357 billion in 2030 (in 2015 dollars).

It expects manufactured exports to rise by $15.2 billion, while such imports would increase by $39.2 billion, increasing the net manufactures’ trade deficit by $24.0 billion.

Although US services’ output is projected to increase by $42.3 billion (0.1 percent) due to the TPP, the net services’ trade surplus is expected to contract as the increased services’ imports of $7

billion would exceed the increased exports of $4.8 billion. Exports of services to non-TPP partners are projected to fall by $11.8 billion, less than the projected increase of $16.6 billion to TPP partners.

The ITC report also projects worsening trade balances for 16 of the 25 US sectors it featured, including vehicles, wheat, corn, auto-parts, titanium products, chemicals, seafood, textiles and apparel, rice and even financial services. It projects a declining market share of US manufactures, natural resources and energy of $10.8 billion as such exports increase by $15.2 billion, while imports rise by $39.2 billion by 2032. In the US, agriculture would gain most, with output $10 billion, or 0.5 percent, higher by 2032. However, the costs and implications of the still growing US agricultural—including biofuel—production subsidies are largely ignored in the report.

While dropping the typical CGE modeling assumption of constant labor supply, the ITC, nevertheless, seems to assume that the economy naturally tends to full employment.

It, thus, projects overall employment will increase by 128,000 fulltime jobs, or by 0.07 percent, due to the TPP. The trade-deficit increase due to TPP implementation would result in 129,484 American job losses, including a manufacturing employment drop of 0.2 percent.

Hence, this has to be largely attributed to services employment growth despite the expected fall in the services trade surplus.

Even if a more comprehensive and balanced assessment of the costs and risks of TPP provisions

finds the potential for improved net economic welfare for all in all TPP countries (which the ITC report does not claim to show), TPP measures will not compensate losing participating economies and stakeholders. And while there may be measures available for beneficiaries to compensate losers in some national economies, nothing in the TPP itself will ensure such compensation, let alone adequately compensate those who will lose.

Furthermore, the ITC analysis does not seem to consider public health and consumer welfare losses due to higher prices, and reduced access due to broader, stronger and longer patent and copyright protection—although higher prices for pharmaceutical drugs, software and other forms of intellectual property will impose substantial costs on the public and governments.

Implementing the TPP will greatly profit some large corporations, especially those getting IPR and financial rents. Meanwhile, real incomes for employees, especially the less skilled, are likely to be further depressed, as in the past, due to international competition following trade liberalization.

Compensation for such losers is virtually unheard of in developing countries, and declining in developed countries, as they are hardly ever advocated by current conventional wisdom, let alone in the TPP agreement’s 6,350 pages.

Jomo Kwame Sundaram was United Nations assistant secretary-general for Economic Development and received the Wassily Leontief Prize for Advancing the Frontiers of Economic Thought in 2007.

NewsSunday BusinessMirror

A6 Sunday, July 31, 2016

Lopez: Laguna de Bay fish may be ‘unhealthy’

A

By Jonathan L. Mayuga

@jonlmayuga

RE fish from Laguna de Bay safe to eat? Environment Secretary Regina Paz L. Lopez is now pushing for laboratory testing of fish from Laguna de Bay that may have high level of toxins and toxic chemicals acquired from the polluted waters of the country’s largest freshwater lake.

“If it is heavily toxic, then steps just [have to] be taken [to prevent people eating the fish]. [The] DOH [Department of Health] has to be involved. The public good is the most important,” Lopez said in a text

message to the BusinessMirror.

Lopez is now coordinating with Health Secretary Paulyn Jean B. Rosell-Ubial who suggested to her the involvement of the Bureau of Fisheries and Aquatic Resources (Bfar).

Ubial, Lopez said, suggested that the Bfar immediately conduct laboratory tests for public health and safety reasons. “We will issue [an] advisory that eating it [fish from Laguna de Bay] will be dangerous to one’s health. The Bfar actually should do testing and give us the findings,” Lopez said, quoting a message from the DOH chief.

On Wednesday Lopez told reporters during the weekly Meet the Beat news conference in Quezon City that fish coming from Laguna de Bay are “unhealthy” because of “high level of mercury.”

During the news briefing, she said the first step to be taken in converting Laguna de Bay into an ecotourism zone “is to address water pollution.”

The 90,000-hectare Laguna de Bay is a major source of fish, including tilapia and bangus, sold in Metro

Manila and other towns and cities in Luzon.

Even at home, Lopez said she cautions buying fish from Laguna de Bay, because toxic chemicals, like mercury and other pollutants, possibly including faecal coliform, have contaminated the lake’s waters.

She said President Duterte brought up the issue of Laguna de Bay during a Cabinet meeting before his State of the Nation Address and ordered the reduction of the number of fish cages and fish pens on the lake. Duterte wants to prioritize entitlement of the lake’s resources to poor fishermen, instead of rich and powerful individuals who own fishpens.

“What we found is that Laguna de Bay is overfished. There is just too much [fishing activity]. When we buy fish in our house, I tell them [household staff members],

If it is heavily toxic, then steps just [have to] be taken [to prevent people eating the fish]. [The] DOH [Department of Health] has to be involved.”—Lopez hindi iyan galing sa Laguna [de Bay] ha? Maraming mercury doon and it is not healthy [top eat fish coming from that lake]. Fish in Laguna have been found to be heavy in mercury.

It is over over over [tolerable limits],” she said.

Prosecutors’ school to rise in Clark

By Ashley Manabat | Correspondent @ashleymanabat

C

L A R K F R E E P OR T— A training school for prosecutors will soon rise here.

Senior Deputy State Prosecutor Severino H. Gaña Jr. said a 1.4-hectare lot on Pinatubo Street near the Redwood Villas here has been allotted to the National Prosecution Service Academy (NPSA).

Gaña added that urban planner Felino A. Palafox Jr. will design the NPSA complex, which will have a dormitory, a training center and a convention center.

Gaña also said part of the funding for the NPSA will come from the South Korean government through the Korea International Cooperation Agency (Koica).

“We are ready to go to Korea because Koica will be funding this project,” he said.

In addition, Gaña said the Asian Development Bank (ADB), the World Bank and the European Union are also willing to help fund the construction of the NPSA. Gaña added that the completion of the project has been targetted before the end of the year. “Minamadali namin, gusto namin matapos na [We are hurrying up because we want this to be finished already],” he said.

Gaña met with Palafox at the Royce Hotel here during a lunch hosted by Pampanga Gov. Lilia Pineda.

Mabalacat City Mayor Marino Morales, who was also in the meeting, expressed elation with the project.

“This is a welcome development. We will be able to improve the justice system in this country, because this academy will improve the efficiency, effectivity and productivity of the Department of Justice [DOJ],” Morales said.

The National Prosecution Service (NPS) is mandated to assist the Secretary of justice in the performance of powers and functions of the department relative to its role as the prosecution arm of the government, particularly the investigation and prosecution of criminal offenses.

The mandate and organization of the NPS is provided by Presidential Decree 1275, as amended, and Executive Order 292, the Administrative Code of 1987.

As of the end of 2008, besides the Office of the Chief State Prosecutor (OCSP) in the DOJ proper, the NPS has offices in 15 regions, 132 cities and 81 provinces (with around 110 active provincial suboffices).

The NPS is manned by 1,847 prosecution officers (prosecutors and prosecution attorneys) out of the existing 2,404 plantilla positions and 1,687 administrative support staff out of 1,945 plantilla positions. The said NPS personnel are augmented by around 1,000 support staff provided by local governments.

Red Cross honors blood donors

I

N celebration of National Blood Donors’ Month in July, the Philippine Red Cross (PRC) recognized 1,876 blood donors and partner organizations who have been supporting the organization for the past years during the Blood Donor’s Recognition Ceremony at the PRC Multipurpose Hall and Training Center in Boni Street, Mandaluyong, City.

A total of 14 award categories were given out, which include the Outstanding Blood Services Partner of the Year for 2016, which is given out for highly distinguished service in the promotion of PRC’s voluntary blood donation for more than 10 years. This year, seven outstanding partners received the said recognition, which include the Technological Institute of the Philippines, Land Bank of the Philippines, Sunlife of Canada, GMA Kapuso Foundation, Bombo Radyo, Elizabeth Seton School and Bangko Sentral ng Pilipinas.

Individual blood donors who have donated blood a minimum of eight times to up to 50, 75 and 100 times were awarded with the Blood Galloners, Bronze, Silver and Gold Medals, respectively. Groups who have supported the Red Cross Blood Program through sponsorship or by organizing mass blood donations were, likewise, recognized.

“The Philippine Red Cross will not be able to continue to provide

our share of the country’s blood requirements if not for our blood donors and partners who have supported us unceasingly in our mission to provide safe and quality blood and blood products to our countrymen, especially the most vulnerable,” said Sen. Richard J. Gordon, PRC chairman and CEO. While the national blood requirement of the country is 1 percent of its total population, the country’s need for blood is about one million units.

In 2015 PRC provided a total of 380,994 units of blood, representing 50 percent of the total national collection of 750,000 units from all blood-collecting agencies in the country. In addition, PRC also served 206,645 patients last year.

Gordon said the PRC can further meet the country’s blood requirement through the activation of the Red Cross 143 volunteers in every barangay, who will lead and organize regular mass blood-donation activities in their communities. Red Cross 143 volunteers are also tasked to keep a directory of people in the community with their respective blood types to make it easier for the PRC to find and tap people with particular blood types to give blood in case of mass casualty incidents, disasters and other emergencies.

Claudeth Mocon-Ciriaco

First book Former President Gloria Macapagal-Arroyo joins former Director General Augusto L. Syjuco Jr. of the Technical Education

and Skills Development Authority during the recent launching of the book DU30 Man of Faith and Fate at the Center Gallery of the Armed Forces Museum in Camp General Emilio Aguinaldo in Quezon City. Syjuco’s work is the first book on President Duterte to be launched since he assumed the country’s top position. Nonoy Lacza

www.businessmirror.com.ph

Barangay, SK polls postponement no longer possible BAUTISTA: “We have to let the field people, who are actually on the ground, have the authority to make decisions since they know better what is happening in the field.”

By Joel R. San Juan @jrsanjuan1573

T

HE Commission on Elections (Comelec) over the weekend said the possibility of postponing the barangay and Sangguniang Kabataan (SK) elections has become nil after President Duterte said he prefers Constitutional assembly (Con-ass) over Constitutional convention (Con-con) in amending the Constitution.

Comelec Chairman Andres D. Bautista said the poll body would now go full blast with its preparations for the barangay and SK elections set to be held on October 31.

“Ngayon, ang direction nila [administration] ay magkaroon ng Constituent assembly...kung kaya’t mukhang tuloy na tuloy na tayo para sa ating halalan sa October 31,” Bautista said.

Bautista made the announcement following his meeting with Speaker Pantaleon D. Alvarez, who told him the plan to push through with the amendment of the 1987 Constitution will push through but through a Con-ass and not a Con-con.

Earlier, Bautista ex pressed hope that Congress would decide to postpone the barangay and SK elections and hold it simultaneously with the election of delegates for the Con-con in order for the government to save P6 billion.

Meanwhile, the Comelec said there will be no extension of the voter registration that ended on Saturday.

However, the poll body allowed local election officers (EOs) to extend office hours during the last day of filing of applications.

In an interview after visiting the Office of the Pasay City EO, Bautista said the commission gave EOs the power to decide if they wanted to work overtime in a bid to register all queuing applicants.

“We have to let the field people, who are actually on the ground, have the authority to make decisions since they know better what is happening in the field,” Bautista said.

He said this is because they are already expecting applicants to flock to election offices nationwide during the last day of filing their applications to become registered voters. Comelec offices are only open from 8 a.m. to 5 p.m. for the registration process.

Workplace provider cites traits of good business leader

A

GLOBAL flexible-workplace provider over the weekend revealed that a high level of commitment and good communication skills are the key traits that constitute a successful business leader in the Philippines.

Regus said almost 40,000 business people globally, including the Philippines, rated a number of qualities and traits to help sketch out the portrait of a good leader and revealed that, as well as a strong moral fiber, business leaders need to be naturally confident and able to motivate people.

But it is not enough to wield the gift of the gab. Successful bosses also need to shy away from hard graft and display an admirable degree of commitment. Interestingly, ambition, financial competence and technical product knowledge were less desirable traits reported.

Top 5 leadership skills in the Philippines Skill Position Commitment 1 Good communications 1 Honesty 2 Confidence 2 The ability to motivate people 3

Lars Wittig, Regus country manager of Regus Philippines said, “Being a good leader is something that most workers aspire to be, whether they are dealing with a small team and making their way up the ladder one rung at a time, or whether they are visionary entrepreneurs hoping to make it big. Businesspeople reported that successful leaders have a number of strings to their bow and are very well-rounded.”

“Not only are good leaders able to communicate well with employees and the outside world to share their vision, but they are also able to rally groups of people and motivate them. But being an impassioned speaker is clearly not enough, as businesspeople expect real substance behind the mask and report that honesty and commitment are also key traits to success. A good dose of confidence also does no harm and presumably helps leaders

deal with both the ups and downs of businesses,” Wittig said.

According to a study conducted

by Development Dimensions International and The Conference Board, human resource executives worldwide reported that building consensus and commitment and communicating with others are skills that are widely focused in their companies’ current leadership development programs.

Conversely, fostering employee creativity and innovation and leading across countries and cultures are qualities that are deemed highly for companies’ future needs but are not given enough focus. The study also found that companies which emphasize on developing these traits cultivate leaders who are more effective and possess a threefold higher probability of ranking in the top 20 percent for financial performance.

Sports BusinessMirror

A7

| Sunday, July 31, 2016 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

LARIBA’S FIRST TEST I

AN Lariba of table tennis, one of four Filipino athletes seeing action the day after the August 5 opening ceremony, has drawn a Puerto Rican who’s younger and ranked higher for her opening match at the Riocentro Convention Center in Rio de Janeiro, Brazil.

Lariba, a soft-spoken, 21-year-old student of De La Salle University, will be pitted against Puerto Rico’s Adriana Diaz in the opening day of the table-tennis competition that features 86 athletes each in the men’s and women’s divisions.

The Puerto Rican, who’s only 15, is ranked No. 80 in the world, while Lariba is at No. 297.

Their match in the preliminary round is set as 12 noon.

Winners in the preliminaries will move on to the next rounds heading to the roundof-32, where the seeded players are eagerly waiting. For those outside the top 32, it’s like going through the eye of the needle.

Lariba got hold of a copy of the draw on Friday morning, and immediately, her South Korean coach, Mi Sook-kwon, had started gathering data on her Puerto Rican opponent, a veteran of the 2014 and 2016 World Championships.

Diaz is ranked ninth among the world’s top 20 junior players (aged 18 and below).

Like Lariba, she is the first athlete to represent her country in the table-tennis competitions of the Summer Olympics.

“I’ve seen her play, although I haven’t played her. She’s younger, but has more experience in international tournaments. She joins the World Tour. She is right-handed,” said Lariba before her training session on Friday.

“She’s more active than me when it comes to international tournaments,” said Lariba, who hasn’t missed a day of practice since the Philippine delegation arrived here Sunday afternoon.

Lariba said in the coming days, she and her coach, a silver medalist in the 1999 World Championships, will study more of Diaz.

“We will see more of her on the Internet.

But I’ve seen her play. We’re now studying her game,” said Lariba, who started playing table tennis when she was 9 years old, as a young student at Corpus Christian in Cagayan de Oro. The three other Pinoy athletes seeing action on August 6 are swimmer Jessie Khing Lacuna in the men’s 400-meter freestyle and boxers Rogen Ladon in the light-flyweight 949 kilogram) and lightweight (60 kg) divisions.

Lacuna has been training twice a day here along with Jasmine Alkhaldi, who is entered in the women’s 100-meter freestyle.

Ladon and Suarez arrived the other day with Coach Nolito Velasco from their training quarters in Las Vegas and was at the fitness center on Friday trying to loosen up.

GOOD LIFT

Nestor Colonia and Hidilyn Diaz spent a couple of hours training on Friday afternoon and was satisfied with the result as they left Pavilion 2 of the Riocenter Convention Center.

“Maganda ang training today,” said Colonia, a 25-year-old who’s in his first Olympics.

Colonia had ease lifting 120 kg in the snatch and 150 kg in the clean-and-jerk, where he has a personal best of 124 kg and 158 kg for a combined lift of 282 kg.

“Okay lang,” said Colonia, who added that the target for the competition is 290 kg or anything higher than that. He said if he succeeds, then he gets a shot at a medal.

“Konti na lang,” said Colonia, ranked No. 4 in the world in the 56 kg division.

Diaz, competing in her third straight Olympics, is feeling much better now after experiencing cough the past few days here.

She also had a good session.

“I’m happy with today’s training,” said the 25-year-old Diaz, a native of Zamboanga, like Colonia and their head coach, Alfonsito Aldanete.

Diaz, the flag-bearer for the Philippine delegation during the 2012 London Olympics, was successful with 85 kg in the snatch during training. A few platforms away was her rival from South Korea.

“Nagtitinginan kami. Alam ko nasa 85 [kg] din siya kanina,” Diaz said.

“Kaya masaya si Hidi [Diaz] kanina sa training. Parang nagbantayan sila nung karibal niya sa division [53 kg],” Colonia said.

GETTING READY

Members of the Philippine delegation to this Rio Olympics, including nine athletes, their coaches and just a handful officials, gathered at the Pinoy quarters here on Friday evening for a onehour meeting.

Chef-de-mission Jose Romasanta wanted to make sure everybody’s on the same page, from the procedures to be observed in the formal flag-raising ceremony on August 2 inside the Athletes Village to the opening ceremony on August 5 at the Maracana Stadium.

On both events, Romasanta asked everybody to wear their barong.

Romasanta also briefed the delegation members on the steps to be taken in case any untoward incident happens.

“Presence of mind is always most important. Security will always be a problem when over 200 countries congregate. So, be aware and be prepared for anything that might happen,” he said.

Col. Jeff Tamayo of the Philippine Olympic Committee (POC), a security expert and consultant back home, also issued some advice just in case anything goes wrong.

“Never keep your guard down. As we gather at the stadium, we need to identify a safe haven for us, a place where we will meet in case something happens,” he said.

A couple of Filipino coaches, Boy Velasco of boxing and Alfonsito Aldanete of weightlifting,

are members of the Armed Forces of the Philippines, and should know the procedure.

“We remind the coaches to also take care of the athletes,” Romasanta said.

Media concerns were also raised during the meeting, and athletes, coaches and officials were told to make themselves available to the media, as long as it doesn’t interfere with their training.

Philippine media seeking live interviews from back home will have to be the ones to adjust their desired schedule and not the other way around.

“They must be reminded that there’s a 13-hour time difference between Rio and Manila. What is early in the evening in Manila may be too early in the morning here,” the chef-de-mission said.

“We don’t need to wake the athletes up at 5 or 6 in the morning for an interview,” he added.

Last, Romasanta reminded the athletes of the message from President Duterte before the delegation left Manila for Rio de Janeiro.

“Just give your best,” was the President’s message.

“You have already made the country proud by being here. So, don’t pressure yourself. Medals will come as a matter of course. Just give your best and enjoy the moment,” Romasanta said.

Ian Lariba’s first oppent is a 15-year-old Puerto Rican.

Hidlyn Diaz during her training in Rio.

Life Savers down Spikers G ENERIKA refused to be remembered as the only team to be beaten by the winless Amy’s Kitchen, as the Life Savers bucked a lethargic start and surged for a 24-26, 25-13, 25-19, 25-14 victory to inch closer for a fifth spot in the 2016 Philippine Superliga All Filipino Conference women’s volleyball tournament on Saturday at the Filoil Flying V Centre in San Juan City.

The Life Savers, who played without their Head Coach Francis Vicente and Assistant Coach Mayie Pronchina, notched their second straight win in the second round to clinch the battle for fifth place in the interclub tournament bankrolled

by KLab Cyscorpions, Mueller, Asics and Mikasa with TV5 as official broadcast partner.

Generika is currently leading the bottom four with a 2-0 win-loss card and will try to sweep the second round today against Standard InsuranceNavy, which was also eyeing its second win against Cignal late Saturday. After the second round, the Life Savers will still have another match for the fifth-place finish depending on the result of the Cignal and Standard Insurance-Navy game.

University of Santo Tomas (UST) Tigresses Chloe Cortez and Ria Meneses led the charge for Generika. Cortez topped all scorers with 17 points

on 13 attacks, two service aces and two blocks, including eight digs, while Meneses scattered 12 attacks, two blocks and an ace for 15 points. De La Salle standout Wensh Tiu added 11 markers, while skipper Rubie de Leon paced the team with 23 excellent sets. “‘Yun ang sinasabi namin kanina sa mga players, OK lang magkaroon sila ng kumpiyansa huwag lang sobra,” Generika Coach Jeffrey Drio said. “Kasi ’yun ang nagiging sakit minsan ng mga players ’pag alam nilang kaya nila kalaban nila, so ang nagiging resulta natatalo sa isang set.”

“Kaya ang ine-emphasize namin sa mga players, kahit kaya ang kalaban, dapat ibigay nila best nila para hindi makakuha ng momentum ang kalaban. Kasi once na makakuha ng momentum ang kalaban, ‘yun ang pinakamahirap talunin,” Drio added.

Generika had a lethargic start allowing Amy’s Kitchen to take the first set but the Life Savers got their form back and took the next three sets to wrap up the game in 93 minutes.

Amy’s Spikers remained winless after three matches in the second round but they have a last chance to end their stint with a win in the battle for seventh place. Lance Agcaoili

LOPSIDED WINS IN SBP-PASSERELLE HOOP

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outs marked the start of the Best Center’s Small Basketeers PhilippinesPasserelle twin basketball tournaments sponsored by Milo over the weekend at the Xavier School gym.

Witnessed by special guest and young Philippine Basketball Association legend Jimmy Alapag, Prince Rey Alao and Woodnell Yap scored 18 and 11 points, respectively, in leading San Beda College-Rizal past De La Salle-Zobel, 48-28, for their debut win.

San Beda was joined in the Group A lead by host La Salle-Greenhills A, which

also crushed Notre Dame of Greater Manila, 67-18.

Group B saw Marist School demolishing La Salle-Greenhills B, 55-35, and host Xavier School-A crippling San Beda CollegeRecoletos, 45-25, to share the group lead.

Routs also marked the Passerelle Division, with Ateneo-A bulldozing Quezon City Academy, 96-19, and LSGH-A wringing Saint Augustine Institute, 68-42.

Group B saw Adamson dropping La SalleZobel, 90-34, and San Beda College-Rizal pulverizing SBC-Recoletos, 59-44.

LADY MAROONS FOIL RED SPIKERS

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NIVERSITY of the Philippines (UP) started its campaign with an impressive 25-20, 25-17, 25-20 win over first-timer San Beda College in the opening day of Shakey's V-League Season 13 Collegiate Conference on Saturday at the Ynares Sports Arena in Pasig City.

Last season’s University Athletic Association of the Philippines (UAAP) Rookie of the Year Isa Molde led the Lady Maroons with 13 kills to finish with 15 points, including six excellent receptions, to help UP win its first game in Group B. Lady Maroons Captain Kathy Bersola chipped nine points, while Nicole Tiamzon and Justine Dorog

added eight points apiece. Setter Mae Basarte fed the team with 39 excellent sets, although UP Head Coach Jerry Yee was far from satisfied with their performance.

“Nandito ‘yung makakalaro namin sa UAAP, so we better perform para makita namin kung anong mayroon kami,”Yee said. “Sloppy ‘yung execution namin, so we have to improve and practice.”

“I’m still looking for maturity. Wala naman dapat pinipiling kalaban dapat execute ng tama.

Hindi pa ito ‘yung gusto ko sana,” he added.

UP will take a weeklong hiatus before facing National Collegiate Athletic Association champion

China dominates Batang Gilas by 30

FORD BIKE OUT FIRES OFF

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ETHRONED champion China vented its ire on the Philippine youth team, hacking out an easy 85-55 win to advance to the battle for fifth spot in the International Basketball Federation Asia (Fiba) Under-18 Championship on Saturday in Tehran, Iran.

Hurting from their 59-62 quarterfinal loss to host Iran on Friday, the Chinese started slow as the Batang Gilas managed to tie the game at 27-all with 4:11 left in the second period.

But China ended the first half with a 15-6 run to enter the break with a 42-33 cushion.

The Chinese, who swept all of their five games in Group A, including a 95-66 win over the Philippines, were never threatened since then, as they padded the lead to 63-44 going to the final canto. Ziming Fan led China’s balanced scoring with 15 points and added 11 rebounds as the Chinese, as expected, dominated the boards, 62-36.

Theo Joshua Flores paced the Filipinos with 12 points, while Rendell Lee chipped in 10 markers.

PHL 5 Head Coach Michael Oliver did not utilize Team Captain Jolo Mendoza in the game. Joel Orellana

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HE Ford Bike Out fires off on Sunday at the Shangri-La Mactan Resort and Spa parking lot in Cebu with a maximum field of 500 participating in the event ushering in the Cobra Energy Drink Ironman 70.3 Asia-Pacific Championships presented

by Ford.

Assembly time is at 5 a.m., with the briefing set at 5:30 a.m. and the rollout time at 6 a.m. from Shangri-La’s parking area to the first regroup area at Sungold/Parkmall, to SRP Tunnel before making a U-turn at Talisay City Hall junction, then to the SM Seaside before making another U-turn and back to the Talisay City Hall.

Robinsons Galleria will be the second regrouping as the field heads back to the Shangri-La parking area.

The event was first held in 2013 in a practice ride organized by Markee Queblatin of Turismo Cebu as part of his and his teammates’ buildup for the Cobra Ironman 70.3. It became an annual tradition for the Cebuano cyclists who want to have an allaccess pass for the Ironman’s bike route.

In 2014 around 50 cyclists joined the

College of Saint Benilde on August 8.

Lady Red Spiker Francesca Racraquin had an all-around game for San Beda with six points on 12 attacks, two blocks and two service aces including 10 digs, while Nieza Viray and Wenneth Eulalio, a guest player from Far Eastern University, added nine and eight points, respectively. “Very smooth ang kanilang entry.

Maganda naman ‘yung kilos nila, so congrats pa rin,”Yee said on San Beda’s debut.

Lance Agcaoili

event, including Filipino Xterra pro and Cebuano Joseph Miller gracing the event. The event drew more than 211 riders last year, with the field more than doubling up in this year’s staging of the 60-kilometer fun ride backed

by Sunrise Events Inc. This year’s participants will also get free bike jerseys courtesy of Ford if they will test-drive the Ford Ecosport or Ford Ranger vehicles during the ride pack claiming in Ford Cebu.

The event serves as a fitting kickoff to the Cobra Energy Drink Ironman 70.3 Asia-Pacific Championships presented by Ford, unwrapping on August 7 with a crack international field, including local aces, competing.

Also spicing up the Cobra Ironman As-Pac, held for the first time here, is the Alaska IronKids on August 6, with the future triathletes leading the cast.

Elite ADT field boosts Aboitiz Invitational golf

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LL but one of the top 10 players in the Asian Development Tour (ADT) Order of Merit (OOM) ranking, including the top 5, are seeing action in the Aboitiz Invitational firing off on Wednesday, ready to slug it out with the local aces in what promises to be an explosive duel at Wack-Wack Golf and Country Club’s East Course in Mandaluyong City.

ADT OOM frontrunner Pavit Tangkamolprasert of Thailand, winner of the Yeangder ADT in Taiwan in March, No. 2 Johannes Veerman of the US, No. 3 Gavin Green of Australia, No. 4 Itthipat Buranatanyarat and No. 5 Poom Saksansin, both of Thailand, banner the elite foreign field in the $100,000 event that will also feature the country’s leading and rising stars out to keep the crown at home soil.

The Filipinos have ruled the first five editions of the annual event put up by Aboitiz Equity Ventures but with the depth of the foreign field and the unpredictability of the par-72 layout, the chase for the top $17,500 purse could be decided on the last putt or on an extra hole or two.

For one, Green and Swede Oscar Zetterwall, No. 7 in the OOM, are out to score a second win here, after the former rallied in the final round to snare the International Container Terminal Services Inc.-Manila Southwoods Championship in April, adding the victory to his triumph at Northport Glenmarie in Malaysia in February.

Zetterwall, on the other hand, nailed his maiden ADT win at the Sherwood Hills Classic, also in April, making him and Green two of the foreign players to watch in the 72-hole championship coorganized by ADT and Pilipinas Golf Tournaments Inc., and backed by International Container Terminal Services Inc. Also in the fold are American Nick Sherwood, Thai Panuwat Muenlek, George Gandranata of Indonesia, John Michael O’Toole and Josh Salah of the US, Chanat Sakulpolphaisan, Rattanon Wanasrichan and Wisut Artjanawat of Thailand, American Blake Snyder and Scot James Byrne.

Still, the local shotmakers are ready to foil the ADT bets’ bid with two-time Aboitiz champion Elmer Salvador; inaugural winner Jay Bayron; and 2014 titlist Tony Lascuña upbeat of their chances in the event supported

by Custom Clubmakers, adidas, KZG, Summit Mineral Water, Srixon, Pacsports, TaylorMade, Sharp and Champion.

Frankie Miñoza, who bucked the odds to nip Rio-bound Miguel Tabuena in a record five-hole playoff to win the Negros Occidental Classic crown in Bacolod two weeks ago, has also been picked as a top contender, given his current form and familiarity with the challenging layout, where he won the Philippine Open in 2007.

Juvic Pagunsan, last year’s runaway winner at Maniila Southwoods, is also expected to join the hunt in the 18th leg of the ADT and 11th of the Philippine Golf Tour.

Like all other ADT events, the Aboitiz Invitational, coorganized by Pilipinas Golf Tournaments Inc., will offer Official World Golf Ranking points to the top 6 players and ties based on a sliding scale.

PAVIT