’18M PINOYS MAY LOSE JOBS DUE TO AUTOMATION’ By Elijah Felice E. Rosales
A THIS May 1, 2019, BusinessMirror file photo shows applicants lining up in one of the simultaneous job fairs nationwide marking the 2019 Labor Day. According to the International Labour Organization (ILO), at least 18 million Filipinos are at risk of losing their jobs to automation over the next 20 years if the government fails to retool them for the Fourth Industrial Revolution. NONIE REYES
DEPT. OF SCIENCE AND TECHNOLOGY
PHILIPPINE STATISTICS AUTHORITY
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@alyasjah
T least 18 million Filipinos are at risk of losing their jobs to automation over the next 20 years if the government fails to retool them for the Fourth Industrial Revolution, according to the International Labour Organization (ILO). ILO Enterprise Development and Skills Technical Officer Jordi Prat Tuca said 56 percent of workers in Southeast Asia could be displaced by the global shift to automation over the next two decades. Although there will be opportunities generated from the transition, there will be job losses, too, he added at the Manila leg of Asia Society and
JP Morgan’s One Step Ahead Series on Tuesday. Assessments by the ILO showed roughly 18 million workers in the Philippines are at risk of losing their jobs to automation, according to Tuca. “Thousands of workers will lose their jobs in this transition from the Third Industrial Revolution to the Fourth Industrial Revolution. Those workers may be the least equipped to take on new jobs created by the transition,” Tuca explained. Job losses to automation will mostly be in the assembly lines and services sector, such as data clerks, customer service representatives, cashiers and bank tellers. Tuca said one way to save them from
eventual displacement is by providing them training on new skills that are in demand in the Fourth Industrial Revolution. He also suggested that the government initiate programs that will prepare the youth for the jobs of the future.
Women more at risk
The ILO official said women are more at risk than men to lose their job in the transition to the Fourth Industrial Revolution, as female laborers in Southeast Asia are mostly employed in traditional low-skilled work. “Women in the science and technology sectors are employed predominantly in entry- level jobs with poor
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Wednesday, June 5, 2019 Vol. 14 No. 238
DOF insists: Investors will come sans tax perks By Ma. Stella F. Arnaldo
@akosistellaBM Special to the BusinessMirror
F
AIT accompli. That seems to be the attitude being taken by officials at the Department of Finance (DOF)—a grudging acceptance of Republic Act 11262, the law extending fiscal incentives to tourism enterprise zone (TEZ) locators for another 10 years. At the same time, Finance Secretary Carlos G. Dominguez III stressed that fiscal incentives actually rank low on many foreign businesses’ decision on which countries to invest in. In a n i nter v iew w it h t he
BusinessMirror, Dominguez said of the new Tieza law, “in the scheme of things, it’s relatively minor. But it’s another spigot, another faucet where money is going to flow out of. And I’ll have to raise money elsewhere, I don’t know
how much, to cover whatever we lose there. I don’t think it’s going to be that big. But you perpetuate [the thinking] that incentives are the thing to attract investors, and it’s not.” He stressed, even without tax
”No. 1 [consideration of investors] is peace and order; No. 2 is stability of policy; No. 3 availability of a good work force; No. 4 is good communications, good roads, good airports; and No. 5 is tax incentives. So why are we prioritizing No. 5?”—Dominguez
incentives, “Believe me, the guys who would have put up a hotel, would have put it up even without them.” Data from the Philippine Statistics Authority appear to bolster his claim. Some P555 million in foreign investments into hotels and restaurants were approved in 2018. This was 66.63 percent less though than the P1.62 billion in approved foreign investments for the sector in 2017.
By VG Cabuag @villygc
OCATORS continue to come in or expand their existing operations in the Clark Freeport zone in Pampanga, despite anxiety over the “Trabaho” bill and the fall of investment pledges in the country’s economic zones. Rodem R. Perez, Clark Development Corp.’s assistant vice president for business development, said Hong Kong’s La Rose Noire will be expanding its facility in the former American base, while one of the world’s largest cheese makers —the identity of which is still being withheld—will be setting up a facility inside Clark. “La Rose Noire will be sourcing their cacao in Davao for their needs. They are now in talks with Malagos Chocolate as a supplier,” he said, referring to the iconic chocolate maker that has boosted
Davao’s brand as a food maker. The Trabaho bill is the second phase of the Duterte administration’s tax-reform package that mainly deals with corporate taxation. Its other main feature, the rationalization of tax incentives, is what worries ecozone locators. Although its passage by the 17th Congress was derailed as a result of reservations among senators, business groups worry that an administration-dominated 18th Congress may yet fast-track its passage. From only six locators when the free port started out in 1994, Clark now has more than 1,000 locators. Aside from factories, Clark is also targetting the MICE market or the meetings, incentives, conferences and exhibitions, as the Clark International Airport will have a major upgrade with its new terminal. See “Clark,” A2
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HOUSING FOR POOR MAY TAKE A HIT FROM REALTY VALUE TWEAKS By Cai U. Ordinario
I
@caiordinario
T may become even more expensive for the poor to access affordable housing units if the government finally updates the Schedule of Market Values (SMVs) under the TRAIN 3, according to the National Housing Authority (NHA). On the sidelines of Balai Talakayan, NHA Regional Manager and Head for Operations Victor C. Balba told the BusinessMirror that if SMVs are updated, the NHA will require a higher budget to acquire land where low-cost housing can be built. While the government is currently subsidizing the cost of construction, the result of higher SMVs could either be an increase in subsidy or cost of the
housing unit, depending on the result of the discussions. “It’s possible [that low-cost housing costs will increase]. Actually [low cost housing prices] have increased, although the government is subsidizing the cost. Construction cost is expensive, but the transfer cost to the beneficiary is not,” Balba said. This will mean that NHA needs to have a bigger budget, and adjustments must be made regarding the amount of subsidy it provides to poor families availing themselves of low-cost housing. NHA Resettlement and Development Services Department Manager Elsie Trinidad said discussions are ongoing regarding the updating of the government subsidy for lowcost housing. See “Housing,” A2
See “DOF,” A2
Locators continue to pour investments into Clark
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Continued on A2
Pag-IBIG gives out ₧11.67-B multipurpose loans in Q1
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THE Clark facility of Hong Kong chocolate maker La Rose Noire, soon to be expanded, is seen at the weekend. La Rose Noire is one of the locators that are expanding their presence in Clark despite anxiety over the government’s bid to rationalize fiscal incentives. BERNARD TESTA
N the first three months of 2019, Pag-IBIG Fund disbursed a record-high P11.67 billion in multipurpose loans (MPL), otherwise known as cash loans, to 571,681 members. The MPL disbursement for the first quarter represented a 7-percent year-on-year growth and exceeded by P 751 million the P10.92 billion released in the same period last year. The amount of cash loans and number of members assisted by the agency through its MPL program are both the highest for any January-March period. “We are exerting all efforts to help Pag-IBIG members following the directive of President Rodrigo Roa Duterte to provide Filipinos See “Pag-IBIG,” A2
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A2 Wednesday, June 5, 2019
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Solons okay tobacco excise FDA bars sale of five vinegar brands using tax hike; UHC fund gap filled synthetic acetic acid
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By Butch Fernandez @butchfBM Jovee Marie N. dela Cruz @joveemarie & Bernadette D. Nicolas @BNicolasBM
THE bill increases the excise tax on tobacco products, as well as imposes the excise tax for the first time on e-cigarettes and vapes. Its inclusion of heated tobacco and vapor products in the coverage of the measure is projected to bring in an additional P2.1 billion in the projected P15billion revenues. From zero excise tax, heated tobacco products or the so-called e-cigarettes, will now be levied P10 per pack beginning January 1, 2020, with a 5-percent yearly increase effective January 1, 2021. For vapor products, individual cartridge, refill, pod or container of its liquid solutions or gel will now be charged P10 per 10 milli-
liters. If the product being sold is more than 50ml, it will be charged a P50 excise tax plus P10 per additional 10ml. The rates imposed on vapor products shall be increased by 5 percent every year effective January. 1, 2021. The unit packets and any outside wrapping of heated tobacco products and vapor products shall also now carry a health warning, in compliance with the Graphic Warning Act of RA 10643 and will be prohibited for sale and distribution to minors. Fifty percent of the proceeds from the taxes will be used exclusively for the implementation of UHC and health programs to be determined by the Department of Health (DOH). Portions of the revenues collected shall also be allocated and divided among the tobacco-producing provinces and utilized exclusively for programs to promote economically viable alternatives for tobacco farmers and workers. Speaker Gloria MacapagalArroyo said in an interview that the lawmakers from the tobaccoproducing provinces in Northern Luzon were against the original proposal of a 50-50 distribution of tobacco tax share between towns, municipalities and provinces. Under Republic Act 7171, 90 percent of the collection goes to the
Peace and order first
Suites in the Ortigas Business District.
HE Senate and the House of Representatives on Tuesday separately approved the final version of the bill increasing the excise tax for tobacco, and Malacañang said President Duterte will definitely sign it into law, having certified it as urgent in order to fill the massive funding gap for the Universal Health Care law. “We need funds apart from trying to discourage people from killing themselves, in a way, because they say smoking cigarette causes cancer and is dangerous to one’s health,” said Presidential Spokesman and Chief Presidential Legal Counsel Salvador Panelo. On Monday, the Senate voted unanimously on the passage of the measure on third and final reading, and the House committed to adopt the Senate version of the measure to avoid having to convene a bicameral conference committee and to fast-track the transmittal of the final version to Malacanang for the President’s signature. According to the Senate version, the upward rate adjustments will start at P45 in 2020 —an increase of P10 in the first year of implementation—to be followed by
DOF. . .
Continued from A1
New hotels coming in 2019
ACCORDING to Tripzilla, there are 20 new hotels opening or have opened in the country this year: Belmont Hotel Boracay, The Residences at The Westin, Manila Sonata Place, Seda Hotels in Makati, the Bay Area in Parañaque, Cebu and Arca South in Taguig; Dusit Hotels in Cebu City, Mactan, and Davao; Hotel Okura in Manila; Ritz Carlton Manila; Acacia Hotel in Davao; Sheraton Hotels in Manila and Mactan; Quest Hotels in Dumaguete and Puerto Princesa; Citadines in Cebu City; Banwa Private Island in Palawan; Park Inn by Radisson in Iloilo; and Parklane East Coast Resort and Spa in Anda, Bohol. According to real-estate consultant JLL Philippines, the growth in the tourism industry is prompting more investments in the hotel sector. The company projects about 9,000 additional hotel rooms to be completed by 2021. In 2018 foreign visitor arrivals grew by some 7.7 percent to 7.1 million. “The overwhelming support for tourism that the Philippine government has demonstrated is expected to bring forth a tremendous positive effect on the growth of the real-estate industry’s hospitality sector,” said JLL Philippines in its report last March.
Pag-IBIG. . . Continued from A1
with affordable loans so that they will not resort to loan sharks. In the first quarter of 2019, MPL disbursements helped 571,681 members with their immediate financial needs,” said Secretary Eduardo D. del Rosario, who chairs the Housing and Urban Development Coordinating Council (HUDCC) and the Pag-IBIG Fund Board of Trustees. With Pag-IBIG Fund’s MPL program, qualified members may borrow up to 80 percent of their total Pag-IBIG Regular Savings, which consist of their monthly contributions their employer’s contributions, and accumulated dividends earned. The loan is payable within 24 months and comes with a deferred first payment. The MPL comes at an interest rate of 10.5 percent per annum. A significant part of the income derived by Pag-IBIG Fund from the loan program is returned to its members in the form of dividends. “While Pag-IBIG is known for our housing loan programs, our multipurpose loan program serves as an afford-
a series of annual P5 increases until the rate reaches P60 in 2023.
E-cigarettes, vapes
DOMINGUEZ emphasized that surveys show foreign companies don’t invest in a particular country based on the fiscal incentives it extends. “No. 1 [consideration of investors] is peace and order; No. 2 is stability of policy; No. 3 availability of a good work force; No. 4 is good communications, good roads, good airports; and No. 5 is tax incentives. So why are we prioritizing No. 5?” Related to this, the Finance chief pointed out that tourism investors are not going to choose the Philippines versus other countries for the incentives. “He’s going to choose here because the labor is good, the telecoms is good, and the beach is good. No matter how much incentives you put—say, you give incentives, you give a subsidy of P100,000 for every job you create, you think anybody is going to put up a tourist hotel in Marawi?! Or in Olutunga Island [in Zamboanga Sibugay]?!” He underscored that government already has 14 agencies that extend fiscal incentives, aside from Tieza, and “more than 500 incentives zones. So actually, we have no idea what it cost us to get that kind of quote-unquote investments. All I know is, in 2016 we paid out P300 billion in revenues we didn’t receive. That’s 10 percent of our total [national] budget!” Prior to becoming Finance chief, Dominguez was also in the tourism business, as co-owner of Marco Polo Hotel in Davao City, and Linden able and readily accessible source of cash loans. The MPL proceeds can be used for tuition fees, medical expenses, minor home improvement, capital for business, or even for vacation expenses,” said Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti. “We understand that our members borrow through MPL because of an immediate need, so we made sure that we will be able to process their loan applications promptly. With the stabilization of our upgraded system last year, members are now able to receive their loan proceeds in an average of 1.7 working days. This faster processing time allowed us to serve more members, which is reflected in the 11-percent growth in the number of loan releases or an additional 57,865 members we have served from January to March this year against same period in 2018,” he added. In total, the Pag-IBIG Fund released P12.05 billion in short-term loans benefiting 593,269 members in the first quarter of this year. This includes the amount disbursed through its MPL Program and the P 384.03 million in Calamity Loans it released to aid 21,588 members.
Updating tax incentives program
THE DOF has been pushing for the simplification of the corporate tax income structure, and modernizing the fiscal incentives program to benefit only select investors. This falls under TRAIN 2, which DOF dubs the Trabaho bill, eyeing the creation of more jobs with an improved corporate tax structure. Last April, President Duterte signed into law RA 11262, giving the Tourism Infrastructure and Enterprise Zone Authority (Tieza), the infrastructure arm of the Department of Tourism, the continued mandate to extend fiscal incentives to TEZ locators for another 10 years, or until 2029. (See, “10-year extension of Tieza tax perks to yield P222-billion investments,” in the BusinessMirror, May 28, 2019.) Tieza also estimated that government stands to lose only some P46 billion in revenue for the 10-year period, but the economy will be able to receive benefits amounting to P791 billion, including taxes on employees’ compensation, and on sales. (See, “Gains from tax perks outweigh foregone revenue, Tieza insists,” in the BusinessMirror, June 3, 2019.) Aside from Tieza, the Board of Investments also offers fiscal incentives for tourism enterprises outside of TEZs, as listed in its Investment Priorities Plan.
Housing. . . Continued from A1
Trinidad said the last time the subsidy of P35,000 was updated was when the low-cost housing units still cost P240,000. Under this arrangement, the government deducts P35,000 from the cost of each unit, leaving P205,000 as the amount needed to be recouped from the beneficiary. Currently, constructing lowcost housing units requires P500,000, more than double the cost of the initial estimate of P240,000. “Even with the construction cost being provided us, we are updating [the land values]. [This is being] provided by the DBM [Department of Budget and Management] although the government subsidy is increasing,” Balba said.
Outdated values
ON Monday, the Department of Finance (DOF) said provinces and cities are losing an estimat-
towns and municipalities while the remaining 10 percent goes to the provinces.
Beware of unintended consequences –PMFTC
FOR its part, leading cigarette maker PMFTC said it supported the channeling of “significant funding” for the UHC, but warned of “unintended consequences” that may negate the government’s bid to curb smoking and its associated diseases. “This will be the eighth cigarette tax increase since 2012 and the higher rate raises some concerns over unintended consequences. We call on the government to exercise vigilance to curb the illicit cigarette trade which may worsen as a result of this excise tax increase, and undermine government efforts to raise funds for the UHC,” said PMFTC in a statement. “We are also counting on the government to provide the appropriate safety nets for farmers, workers and retailers whose livelihood would be impacted by this new round of tax increase,” it added. It described the Senate version as “a positive step forward as it will enable smokers to switch to less harmful alternatives to cigarettes while generating additional revenues from previously untaxed e-vapor products.” See “Tobacco,” A3
Clark. . .
Continued from A1
Clark is targeting to have 5,000 rooms in two years, from the current 2,900 rooms. Among the developments are a new facility of Royce Hotel and Casino, which will have 700 rooms and will be completed in 2021; the Hilton Hotel with 268 rooms; Posco’s the Sharp condominium, which mainly targets Korean nationals and has 500 units; Mirej Clark that has 100 rooms; and the resort and entertainment complex of the Isoc Holdings. The condo units of Posco are 80 percent sold as Clark is marketing itself as a place for Korean tourists and expatriates. About P2 billion in investments are being poured into theme parks inside Clarkfield, including the Aqua Planet theme park and the Clark Safari Park. Clark is playing host to some of the games of the upcoming 30th Southeast Asian Games, which the Philippines is hosting. A P13-billion funding from the private sector is being poured into the New Clark City Government Administrative Center to construct a small sports complex that includes a 20,000-seater track and field stadium, a 2,000-seater aquatics center and an Atheletes Village. ed P30.5 billion in total forgone revenues as a result of outdated real-property values. Acting Deputy Executive Director Jose Arnold Tan of the DOF’s Bureau of Local Government Finance (BLGF) said cities could have collected as much as P23.077 billion in incremental revenues from real-property taxes. Provinces, meanwhile, could have gotten as much as P7.379 billion more if their SMVs were already updated and in sync with international standards. Such reforms in the real-property tax system constitute Package 3 of the Duterte administration’s comprehensive tax reform program (CTRP). Only 60 percent of the regional district offices of the Bureau of Internal Revenue (BIR) have updated zonal values. Tan said that under this outdated system, overvaluation usually happens when the government pays for a piece of real property, but undervaluation often occurs when it is the government’s turn to collect.
By Elijah Felice E. Rosales
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@alyasjah
HE Food and Drug Administration (FDA) on Tuesday identified vinegar brands that have synthetic acetic acid, and are thus barred for sale to the public under existing laws that prohibit the sale of nonfermented vinegar. In Advisory 2019-144, the FDA listed Surebuy Cane Vinegar, Tentay Pinoy Style Vinegar, Tentay Premium Vinegar, Tentay Vinegar Sukang Tunay Asim and Chef ’s Flavor Vinegar as those with synthetic acid. The food regulator tested 39 samples of vinegar collected from various sources, and these five tested positive for the concentration. It disclosed the samples were subjected to testing of Permanganate Oxidation Number, an official method to assess the quality of vinegar. In line with the administrative order prescribing the standard of identity and quality of vinegar, any artificial matter, such as synthetic acetic acid, makes the vinegar adulterated, the FDA
said. This must not be sold to the public, it added. “However, the FDA would like to reiterate that the presence of synthetic acetic acid is not a safety issue and does not pose any health risk to consumers, as this only means that the vinegar is of substandard quality,” the advisory read. “The presence of synthetic acetic acid merely represents that the vinegar did not undergo fermentation, either through a slow process, quick process or submerged culture process, which is used for commercial vinegar production,” it added. The FDA instructed concerned establishments under its watch to comply with quality standards in the production of vinegar. It warned it will inspect manufacturing facilities to check whether the makers of the listed products use synthetic acetic acid. Standards for producing commercial vinegar were stated under Administrative Order 134 issued in 1970 by the Department of Health. The order prohibited the use of any artificial matter, such as synthetic acetic acid.
Palace pins hope on 18th Congress for ROTC bill
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ESPITE a Palace certification that it is an urgent bill, the mandatory Reserve Officers Training Corps’ (ROTC) bill is unlikely to be passed by the 17th Congress for lack of time. The Senate majority leader served notice that the chamber can no longer pass the bill, as the Senate received President Duterte’s certification of the bill as urgent only on Monday night, a day before sessions are supposed to end. “We lack material time on the ROTC and the Public Service Act,” Juan Miguel Zubiri said. Senate President Vicente Sotto III, however, said senators will still move to also pass the Palace-certified bill making the ROTC mandatory for grades 11 and 12 students. Malacañang took the news of a possible nonpassage of the ROTC bill in stride. While senators lamented it could have been better if the certification had been sent earlier for them to pass the measure, the Palace is now just pinning its hopes on the next Congress which opens in late July. “If it lacks time, there’s a new Senate coming up so I don’t think that’s a problem,” Presidential Spokesman and Chief Presidential Legal Counsel Salvador Panelo said. A priority legislative agenda of the President, the mandatory ROTC bill seeks to revive the military training program for Senior High
School Students. Proponents and supporters of the measure, including the Department of Education, argued that the measure is important so as to instill discipline, and a sense of nationalism and patriotism in defending the State. However, critics, including Kabataan Party-list Rep. Sarah Elago, have pointed out that mandatory ROTC will not teach discipline and nationalism but blind obedience among students. Malacañang quashed these criticisms, saying passage of the measure will benefit all Filipinos in the long run.“They just don’t like it but you know, in other countries, it is mandatory. It should be mandatory,” Panelo said. “I share the view that all able citizens of the Philippines, male or even female should be required, should have compulsory military training for our own security so that when the time comes we know what to do. It is all for our benefit.” Mandator y ROTC was abolished in 2002 following the murder of Mark Welson Chua, a University of Santo Tomas student who exposed alleged corruption in USTROTC. Republic Act 9163 or the National Service Training Program, which made ROTC voluntary, was subsequently passed. Bernadette D. Nicolas and Butch Fernandez
’18M PINOYS MAY LOSE JOBS DUE TO AUTOMATION’
Continued from A1
job quality. Traditional low-skilled jobs performed by women across economic sectors are declining in terms of demand, and are shifting to more skilled opportunities,” Tuca said. In response, the ILO is providing lifelong learning for women at risk of losing employment to automation. According to Tuca, at least 11,387 women in Southeast Asia have been given training and provided with modules on digitization by the ILO. Such training and modules are aimed at preparing them for possible opportunities that might crack open once the re-
gion shifts to the Fourth Industrial Revolution. McKinsey & Co. Philippines Associate Partner Boris Van said 60 percent of all jobs have at least 30-percent technical activities prone to automation. Predictable physical work, such as welding, soldering in assembly lines, food preparation and packaging objects, will most probably be taken over by technological advancements over the next years. Unpredictable physical work, including construction, forestry and raising farm animals, are the safest from automation.
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Immigration cancels 528 alien work visas for fraud By Recto L. Mercene @rectomercene
& Joel R. San Juan @jrsanjuan1573
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N what could be one of the largest mass cancellations of working visas for fraud, the Bureau of Immigration (BI) has canceled the visa of 528 foreign nationals following an intensified monitoring of aliens in the Philippines. BI Commissioner Jaime Morente the BI’s conduct of a postaudit of visa applications of six target companies unearthed the fact that their foreign employees submitted fake Alien Employment Permits (AEP). The AEP is a permit issued by the Department of Labor and Employment (DOLE) and is a prerequisite in applying for a work visa with the BI. “I have directed the intelligence division to conduct a case buildup against said companies after receiving information that they have petitioned foreign nationals by submitting fake documents,” said Morente. “The BI’s intel submitted their report and recommendation to cancel the visas after confirming that the grantees of the visas submitted fake AEPs,” he said. The 528 foreigners will be expelled from the country and will be blacklisted, according to the BI. Morente refused to name the companies, saying investigations are still under way involving their sister companies and other affiliates. He said the companies were from Manila, Parañaque and Caloocan, and were involved in consultancy, residential sales, tutorial and information technology. The BI’s Intelligence Division conducted two separate post-audit reports. The first report resulted in the visa cancellation of 469 aliens in four companies, while the second report led to the visa cancellation of 59 aliens from two other companies. A total of 528 foreign nationals petitioned by these six companies were subjected to immediate cancellation of their visas for
misrepresentation and fraud. Those with canceled visas comprised 259 Indians, 230 Chinese, 14 Koreans, 11 Japanese, five Taiwanese, three Vietnamese, and a German, Burmese, Nigerian, Nepalese, Sudanese and a Yemeni. “These are just six companies; we expect to uncover more in the next few months,” said Morente. He encouraged citizens to report illegal aliens to the Bureau. “We need everybody’s help. Filipinos, as well as legally staying aliens must report illegal foreigners in their area, and you can be assured that we will act on your reports,” he added. The immigration chief said the 528 applicants were in “clear violation of Section 37 of the Philippine Immigration Act for obvious misrepresentation and fraud.” The aliens’ visas were reportedly revoked immediately. Morente said he subsequently instructed the Alien Registration Division to cancel their ACR I-Cards, and the Legal Division to implement the order. Also, Morente said the Intelligence Division recommended the cancellation of the BI permits of the accredited agents who processed the applications of the 528 aliens. Morente said there have been post-audits and visa cancellations in the past, but it is only now that they have conducted cancellations this massive. “I am appalled to learn of big companies that blatantly disregard our laws and submit fake documents,” said Morente. “These companies knowingly hire illegal foreign workers that take away jobs from Filipinos and law-abiding foreigners. Our Intel has been working nonstop to catch foreigners who make a mockery of our laws and procedures,” he said. He added that they will be forwarding their reports to the DOLE for possible sanctions for the companies. “We will also be revisiting our procedures to more thoroughly screen applications. This is also why we’re requesting that we gain access to DOLE’s database to be able to verify in real time the authenticity of AEPs,” he said.
Neda. . . continued from a12 fundamental to achieving the SDGs and our national development goals,” he added. Pernia said government efforts such as the Conditional Cash Transfer Program required a partnership between the private and nongovernment organizations to provide alternative modes of education—through the Alternative Learning System—to beneficiaries. He also cited the recently passed Expanded Maternity Leave Act that increases maternity leave benefits from 60 to 105 days. “We are counting on private companies to implement nondiscrimination laws such as this, and to ensure that women receive equal opportunities in the workplace,” Pernia said. TheNedachiefsaidseveralbusinessesareactively creatingopportunitiesforthepoorandmarginalized to participate in the production value chain. He highlighted the National Spatial Strategy, which was designed during the start of the adminis-
tration to tackle spatial and socioeconomic inequalities by linking lagging regions with leading ones. “Transportinfrastructurewillcreatemoreopportunities for production, employment and livelihood in regions outside of urban centers like Metro Manila. Improvingregionalconnectivityrequireschanneling not just domestic—both public and private—resources, but international funds, as well,” he said. Pernia reported how the government is employing a “multisectoral approach” in working toward the SDGs. He delivered the country’s statement and headed the Philippine delegation during the 75th Session of the Unescap in Bangkok on May 27 and 28. The Philippine delegation had representatives from the Department of Finance, Commission on Population and Development, Philippine Statistics Authority, Department of Agriculture, Department of Foreign Affairs, and Department of Science and Technology.
Tobacco. . . continued from a2
Funding gap
SEN. Sonny Angara said the government will be in a better position to fill the massive funding gap for the UHC program with the passage of the bill increasing the excise tax on tobacco products. The passage of the tobacco excise tax hike bill came a week after Angara sponsored the measure on the Senate floor as chairman of the Committee on Ways and Means, which conducted hearings on various proposals to raise the excise tax on cigarettes. Camarines Sur Rep. Luis Raymund Villafuerte Jr. said the passage of the measure further raising “sin” taxes on tobacco products will set the stage for President Duterte’s enactment of “a
fitting last gift” to the Filipino people by the 17th Congress. Villafuerte said the higher taxes on cigarettes and other tobacco products would benefit most especially poor and low-income Filipinos as revenues will cover the funding gap for the UHC Law that Duterte signed in February. According to the Department of Finance (DOF), the first year of UHC’s implementation in 2020 will require some P258 billion to implement, which the government can cover from its current funding sources in the amount of P195 billion. Without a new sin tax reform law, UHC will be left with a funding gap of around P62 billion in the first year alone.
Editor: Vittorio V. Vitug • Wednesday, June 5, 2019 A3
SC sets June 25 oral arguments on bid to protect shoals, reefs within PHL EEZ
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By Joel R. San Juan
@jrsanjuan1573
HE Supreme Court on Tuesday decided to hold oral arguments on June 25 on the petition seeking to direct concerned government agencies to protect and rehabilitate the marine environment in Scarborough Shoal (also known as Panatag Shoal), Ayungin Shoal, and Panganiban Reef (also known as Mischief Reef). The decision to hear all the parties concerned on the issue was reached during the Court’s regular en banc session. The petition was filed by Kalayaan Pa lawan Far mers and
Fisherfolk Association (KPFAFA) and the Integrated Bar of the Philippines (IBP). Named as respondents are the Department of Environment and Natural Resources, represented by
Secretary Roy A. Cimatu; Department of Agriculture, represented by Secretary Emmanuel Piñol; Bureau of Fisheries and Aquatic Resources, represented by National Director Eduardo B. Gongona; Philippine Navy, represented by Flag Officer in Command Vadm. Robert Empedrad; Philippine Coast Guard, represented by Commandant Adm. Elson E. Hermogino; Philippine National Police, represented by PNP chief Director General Oscar D. Albayalde; PNP Maritime Group, represented by PCSupt. Rodelio B. Jocson, and Department of Justice, represented by Secretary Menardo I. Guevarra. Panatag Shoal is in Masinloc town in Zambales, while Ayungin Shoal and Panganiban Reef are in Kalayaan, a municipality of Palawan. The petitioners anchored their arguments on the documents submitted by the Philippine government in the interstate arbitration proceedings under Annex VII to the
1982 United National Convention on the Law of the Sea (Unclos), as well as the 2016 award by the tribunal in the South China Sea Arbitration, which established that foreign poachers, foreign construction and land reclamation entities have caused massive environmental damage in Philippine waters and the Philippine exclusive economic zone (EEZ). The Philippines obtained a favorable ruling in the said arbitration on July 12, 2016, but the Duterte administration has decided to temporarily set aside the decision in favor of a more cordial relationship with China. The petitioners noted that the SCS arbitral tribunal has upheld the Philippine government’s claim that Ayungin Shoal, Panganiban Reef and Panatag Shoal are well within the Philippine EEZ, thus, the country’s environmental laws are required to be enforced in these areas.
PNP to summon 2 bishops, ex-DepEd chief over ‘Bikoy’ claim of ‘meetings’ By Rene Acosta @reneacostaBM
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HE Philippine National Police (PNP) may summon for investigation at least two Roman Catholic bishops and a former Cabinet secretary over the claims of Peter Joemel Advincula that he also met them in relation to the video where he tagged certain family members and allies of President Duterte as involved in illegal drugs. “Well, this will all be part of our investigation,” said PNP chief Director General Oscar D. Albayalde on Tuesday when asked what the police would do with Advincula’s allegations that he met with Lingayen-Dagupan Archbishop Socrates
Villegas, Caloocan Bishop Pablo Virgilio David and former Education Secretary Armin Luistro over the “Ang Totoong Narcolist” video. Villegas, David, Luistro and a certain Father Robert (apparently the activist priest Robert Reyes) were among the new personalities that Advincula, who claimed he is “Bikoy” in the video, had named in the sworn affidavit he submitted to the PNP following his return to police custody through the Criminal Investigation and Detection Group (CIDG) on Monday. Advincula had sought protective custody from the CIDG following his claims of threats on his life, which the PNP is already validating, along with his latest claims. Advincula claimed in the “true
Eagles. . . continued from a12
of the DENR’s Biodiversity Management Bureau (BMB) said. Gerard Ho Wei Hong, the ambassador of Singapore to the Philippines, officially received Geothermica and Sambisig, both products of the PEF captive breeding program which has so far produced 28 captive-bred eagles at the Philippine Eagle Center in Davao City. PAL President and COO Jaime Bautista said Jurong Bird Park will be the home of the two Philippine eagles for the next 10 years. “They will remain a property of the Philippines as the government has issued Philippine passports under their names.” “The PEF hopes that through the eagle loan program, Wildlife Reserves Singapore can help secure a gene pool of the Philippine eagles for species conservation and as insurance against natural calamities that can wipe out the only captive Philippine eagle population at the PEC in Malagos, Davao City,” Bautista added. This is the first international Philippine Eagle Loan Agreement between the governments of the Philippines, through the Department of Environment and Natural Resources (DENR), and Singapore to increase the eagles’ population. The wildlife loan agreement (WLA) signed between the DENR and WRS last month highlighted the 50 years of diplomatic relations of the Philippines and Singapore, two of the five founding members of the Association of Southeast Asian Nations. The adoption by Singapore of the Philippine eagle pair for the purpose of captive breeding aims to protect and conserve the country’s iconic bird, which is currently considered critically endangered. According to the DENR, there are only around 400 pairs of the Philippine eagle left in the wild. With the threat of extinction, sending off the Philippine eagle pair is considered an insurance that the species will not be wiped out in case of a deadly disease outbreak in the Philippines. “With the partnership with the Wildlife Reserves Singapore and Singapore government commemorating 50 years of diplomatic relationship, the wildlife loan agreement highlighted the importance of the Philippine eagle,” said Calderon, the DENR’s assistant secretary for staff bureaus. He said the WLA has already gained traction as far as the DENR is concerned, citing the jam-packed theater on Monday for the public screening of the documentary Bird of Prey at Cinema 3, UP Town Center. “The Philippine eagle was highlighted similar to the Sumatra Tiger of Indonesia and the Giant Panda of China,”Calderon added. Considered the largest of the extant eagles in the world in terms of length and wing surface, and among the rarest and most powerful birds in the world, the Philippine eagle has been declared the country’s national bird.
narcolist” video that Duterte’s family and his allies were on the take from illegal drug syndicates. While he stuck to his allegations when he first appeared, without Bikoy’s hood, at a press conference at the Integrated Bar of the Philippines (IBP) offices, he recanted his statements when he went to the PNP more than three weeks ago, claiming the “show” was made with some opposition senators and candidates of the Otso Diretso as masterminds. He claimed that the video was made to boost the election chances of the candidates and to discredit Duterte in order for him to be replaced by Vice President Leni Robredo. His claims were denied by the personalities he named.
In his latest sworn affidavit issued while under CIDG custody, Advincula claimed he had met separately with Villegas, David, Reyes and Luistro in some of Manila’s universities. Advincula claimed that the meetings revolved on selling stories about the involvement of Duterte’s family in drugs, Duterte’s unseating and boosting the chances of the Otso Diretso in the concluded midterm elections. Albayalde said they will look into Advincula’s claims, adding they are not treating them as gospel truth. “All of what he had said [will be investigated], [but] as I have said, we are not taking them as the gospel truth. He has to substantiate his statements with evidence,” the PNP chief said.
A4 Wednesday, June 5, 2019 • Editor: Vittorio V. Vitug
Economy BusinessMirror
Neda: Agriculture can help revive manufacturing sector
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By Cai U. Ordinario
@caiordinario
HE agriculture sector was identified by the National Economic and Development Authority (Neda) as the key industry that can help revive the manufacturing sector from its stupor in the coming months. In a statement, Socioeconomic Planning Secretary Ernesto M. Pernia said efforts are needed to boost the performance of food manufacturing, which is one of the largest manufacturing sectors. These efforts start with addressing the needs of agribusiness firms such as governance issues that hinder the growth and development of the agribusiness firms and related industries. “A strong whole-of-government—nay, whole-of-society—ap-
proach is needed to accelerate the growth of manufacturing and boost its contribution to industry growth. The needs of the food-processing sector should be addressed as it accounts for the largest share among all manufacturing subsectors. This points to the critical importance of agriculture, which, besides being the source of food, is also the feeder sector to the food manufacturing subsector,” Pernia said. “The government may need to revisit existing interventions to
ensure that they are designed to be responsive to the needs and actual behavior of farmers, fisherfolk and processors,” he said. Pernia added that the delineation of responsibilities across various food-safety regulatory authorities should be clarified in order to improve the enforcement of regulations. He said there is also a need to encourage businesses to increase production. “It must be ensured that all food products, both for domestic market consumption and for export, are aligned with Good Agricultural Practices or Good Manufacturing Practices,” said Pernia. “Transacting with government must be simplified and made less expensive, as mandated by RA 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, ” he said. In addition, the law calls for the standardization of requirements for business registrations and permit issuances, and capacity building to improve the efficiency of LGUs in the processing of business applications.
On Tuesday, the Philippine Statistics Authority (PSA) said t he countr y’s manufactur ing output contracted 14 percent in April, the lowest since December 2018 when the Volume of Production Index (VoPI) contracted 9.1 percent. In April last year, the VoPI grew 21 percent. The VoPI for the food manufacturing sector contracted 20.6 percent, one of the five sectors that registered the largest declines in April 2019. The other sectors were Iron and Steel with a VoPI contraction of 30 percent; Tobacco, 29.2 percent; Leather products, 25.5 percent; and Petroleum products, 24.3 percent. “Notwithstanding, manufacturing output is expected to recover supported by improved domestic demand in the coming months. Easing inflationary pressures, accelerated government spending on infrastructure, and a more upbeat consumer outlook also provide additional support given expectations of additional income and availability of more jobs,” Pernia said.
Taal Lake fish cage operators told to harvest tilapia now to avoid loss
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ISH cage operators in Taal Lake were advised by experts to harvest tilapia now as the level of dissolvedoxygencontinuestogodown, threatening to cause extensive damage
to the aquaculture sector in the area. “We are still monitoring because the fish kill is still going on in some areas,” said Elmer Bascos, Batangas Provincial Environment and Natu-
ral Resource Officer (Penro) and concurrent Protected Area Superintendent (PASu) of the Taal Volcano Protected Landscape. Bascos said dissolved oxygen level
will continue to cause fish kill until the end of the month as they expect the situation to improve only in July. “They should harvest now. The problem with some fish cage operators, they want to maximize income by letting their tilapia grow bigger, to gain more weight,” he said, belying allegations that the number of fish cages in Taal Lake had exceeded its carrying capacity. “The carrying capacity of Taal Lake is 6,000 fish cages. The current number of fish cages is below the carrying capacity,” he said. Because of the incident, Bascos said he will recommend limiting the operation of fish cages to at least once a year, avoiding the months of May and June, or the period during which dissolved oxygen goes down in the lake, resulting in massive fish kill. According to Bascos, as early as May, fish cage operators have been warned by the Bureau of Fisheries and Aquatic Resources (BFAR) about the alarming situationinTaalLakeastheymonitored that the dissolved oxygen in some areas in the lake have already gone down. According to Bascos, fish kill in Taal Lake happens seasonally, during the months of May and June, as the dissolved oxygen goes down during the period. “They [fish cage operators] know this already. Every year, in May and June, dissolved oxygen in the lake goes down that is why they are told to harvest before this happens,” he said. According to BFAR, dissolved oxygen should be 5 parts per million. However, the level of dissolved oxygen went down to as low as 2.8 ppm, resulting to the massive fish kill, as the dissolved oxygen went as low as 0.52 ppm at the bottom and 0.86 ppm at the surface. As of June 1, a total of 605 metric tons (MT) of tilapia were lost to the fish kill. The damage could easily cost around P50 million. According to DENR Regional Executive Director Maria Paz Luna, a total of 121 fish cages in Barangay Buso-Buso and Gulod in Laurel, and Barangay Banaga in neighboring Agoncillo town were affected. The Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya) blamed the excessive number of large fish pens for the fish kill in Taal Lake. In a statement, Pamalakaya said that this was the third fish kill to hit Taal Lake since last year, citing the same incidents that happened in November 2018, which affected 60 MT or equivalent to P5-million worth of tilapia, and last January that killed 99.8 MT of fish. Jonathan L. Mayuga
www.businessmirror.com.ph
GSIS plans to sell Port Area property By Jasper Emmanuel Y. Arcalas @jearcalas
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O you have P33.63 billion to invest? If so, you may want to buy the Government Service Insurance System’s (GSIS) Port Area property. State-r un GSIS said it would sel l its nonper for ming assets in Por t A rea, including the lot being occupied by the Manila Inter nationa l Container Termina l (MICT). GSIS President and General Manager Jesus Clint Aranas said they would pursue the sale of their Port Area properties after the Department of Finance (DOF) released its latest zonal valuations. T h e p r o p e r t i e s i n c lu d e a 672,645 -square-meter indust r i a l /com me rc i a l lot , w he re the MICT is located, and a residential space of about 109,212 square meters. The zonal valuation of industrial/commercial lot in the area is now pegged at P50,000 per square meter or a total of P33.63 billion for the Port Area property, compared to the P25.56 billion recorded value last year, GSIS said. Meanwhile, its residential lot, which is about 109,212 square meters, is now valued at P3.82 billion compared to the P412.82 million value last year. With the new zonal valuation, the GSIS said it already had a valuation gain of P11.481 billion. “We will sell the nonperforming assets in the area,” Aranas said in a news briefing on Tuesday. “We will sell it immediately. Believe me. It will happen and I would do it,” Aranas added. Aranas said he would bring up to the next GSIS board meeting, slated two weeks from now, the sale of their port area properties. As early as last year, GSIS was ready to bid out the two properties, but Aranas deferred the sale as the assets were not assessed on current valuation. Existing laws mandate the GSIS to sell its assets at current valuation, Aranas said. “I do not see any opposition [from the board] in selling this property. We already allowed it to be sold, it’s just that I withdrew it
“We will sell it immediately. Believe me. It will happen and I would do it.”—Aranas
because the value wasn’t current, and we would be liable if we pushed through,” he said. “They are a very supportive and transparent board. And they want to do their best to improve the financial situation of the GSIS and have good governance,” he added. Aranas said the GSIS gets no rental payments from the occupants of its port area properties, currently being supervised by the Philippine Ports Authority (PPA). He said the GSIS has been losing about P80 million a month since the 1970s, adding that they sent several letters to the International Container Terminal Services Inc., which manages MICT, and the PPA to settle the dispute over the property, but the two agencies didn’t bother to reply. “We are being ignored. We wrote seven letters to ICTSI addressed to [Enrique] Razon Jr., but they were all ignored,” Aranas said. “[We also wrote] to the PPA, but we got the same results. The letters were ignored. GSIS was ignored,” Aranas said. “At this point, no one is bothering to reply to us. We want to have the P80-million monthly rental, we want to negotiate with them, but they do not reply. Is this a black hole?” he asked. Aranas said the GSIS doors are being kept open in case the PPA and, in particular, the ICTSI would want to negotiate with them over the Port Area properties. “We are very much willing to talk to them. Let’s sit down and finish this debacle,” he said. “But I am only willing to defer the sale of the properties if it is commercially viable for GSIS. This is not our money, this is the government employees’ money.”
PHL online hiring up 11 percent in April
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MID trade tensions and other economic headwinds, online hiring in the Philippines grew 11 percent in April, according to the Monster Employment Index (MEI). In a statement, Monster.com said e-recruitment was high in the Consumer Goods/FMCG and Hospitality industries, which grew 22 percent and 21 percent in April, respectively. The Information Technology, Telecom/ISP industr y ranked among top growth industries for the first time in 2019, experiencing year-on-year growth of 14 percent. However, education saw a contraction of 6 percent during the period. “The job market reported a stable momentum on the back of the 5.6percent growth in the first quarter of 2019, and with the ongoing trade war and other economic headwinds, businesses will remain cautiously optimistic,” said Abhijeet Mukherjee, CEO of Monster.com for Apac and Middle East. When looking at specific job roles, Monster.com said all 10 of the occupations monitored by the Index recorded positive growth in April. HR and Admin professionals received the highest spike in demand with 19 percent year-on-year growth
for April, followed by Finance and Accounts talent with a 18-percent growth in yearly demand. “As traditional roles continue to evolve, digital competency remains high in demand. In fact, employers have a huge responsibility to empower employees with the right set of skills development initiatives. Organizations creating personalized learning paths to upskill employees in their current and future roles command a huge competitive advantage,” Mukherjee said. “More important, to attract top talent in a competitive labor market like the Philippines, it is crucial for organizations to cultivate a strong employer brand by clearly articulating why their company is a great workplace,” he added. The MEI is a monthly look at online job posting activity, based on a real-time review of millions of employer job opportunities culled from a large representative selection of career web sites and online job listings across the Philippines. The Index, however, does not reflect the trend of any one advertiser or source, but is an aggregate measure of the change in job listings across the industry. Cai U. Ordinario
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If you have any information / objection to the above mentioned application/s, please communicate with the Regional Director thru Employment Promotion and Workers Welfare (EPWW) Division with Telephone No. 400-6011.
ATTY. ANA C. DIONE, CPA REGIONAL DIRECTOR
Editor: Angel R. Calso | www.businessmirror.com.ph
The World
US, Mexico to begin talks over tariffs, flow of migrants
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A SHINGTON—Mexico launched a counteroffensive Monday against the threat of US tariffs, warning not only that it would hurt the economies of both countries but also could cause a quartermillion more Central Americans to migrate north. A high-level delegation from the Mexican government held a news conference at the embassy in Washington, making the case against President Donald Trump’s threat of imposing a 5 percent tariff on Mexican imports by June 10. It is unclear what more Mexico can do—and what will be enough—to satisfy the president. “As a sign of good faith, Mexico should immediately stop the flow of people and drugs through their country and to our Southern Border. They can do it if they want!” Trump tweeted Monday from London. Trump’s Republican allies warn that tariffs on Mexican imports will hit US consumers, harm the economy and jeopardize the new United States-Mexico- Canada Agreement trade pact that the White House wants Congress to approve. “This calls into question our ability to pass the USMCA, much less get it passed by Canada and Mexico,” said Sen. John Cornyn, R-Texas. T he GOP sen ator sa id he couldn’t imagine the hit to the economy if the tariffs rise to 25 percent, as Trump has threatened. “I don’t even want to think about it,” he told reporters Monday. “We need to put our heads together and try to come up with a solution.” Trump all but taunted negotiators for a quick resolution. “Mexico is sending a big delegation to talk about the Border,” he tweeted Sunday. “Problem is, they’ve been ‘talking’ for 25 years. We want action, not talk.” But Mexican Foreign Minister Marcelo Ebrard replied Monday that both countries working together is “the best way to do it.” Mexico said it will only go so far to avert the duties, and absolutely ruled out a “third safe country” agreement that would require asylum seekers to apply for refuge in Mexico first. “There is a clear limit to what we can negotiate, and the limit is Mexican dignity,” said Mexico’s Ambassador to the United States, Martha Barcena. Barcena said Mexico has taken steps to offer migrants visas in Mexico, and “without Mexico’s efforts, an additional quartermillion migrants could arrive at the US border in 2019.” Barcena said Mexico has accepted 8,835 returned migrants as of May 29, and they are now waiting in the country for an asylum hearing in the US courts. The tariff threat comes just as the administration has been pushing for passage of the USMCA, which would update the North American Free Trade Agreement. US Commerce Secretary Wilbur Ross met Monday with Mexican Economy Minister Graciela Marquez. Afterward, Ross said the two had discussed the tariffs and the “next steps” for the trade pact. “I reiterated the president’s message that Mexico needs to do more to help the US address immigration across our shared border,” Ross said in a statement. Delegations led by Secretary of State Mike Pompeo and Foreign Relations Secretary Marcelo Ebrard will also meet in Washington. Marquez told reporters her team is assessing potential reprisals in case the diplomatic efforts do not bear fruit this week. “We will have to make a strategic plan to take into consideration many elements,” she said.
Agricultural trade between the United States and Mexico was worth about $130 million a day last year, according to Mexican Secretary of Agriculture Victor Villalobos. A 5 percent US tariff would decrease that trade by $3.8 million a day, he said. Trump has been here before, issuing high-stakes threats, only to back off come crunch time. Trump claims Mexico has taken advantage of the United States for decades but that the abuse will end when he slaps tariffs on Mexican imports. His frustration with the flow of migrants is nothing new, but it’s a subject he often returns to, as he did last week after special counsel Robert Mueller’s rare public statement on the TrumpRussia report. The president said last week that he will impose the tariffs to pressure the government of Andres Manuel Lopez Obrador to block Central American migrants from crossing the border into the US. Trump said the import tax will increase by 5 percent every month through October, topping out at 25 percent. It swiftly refocused attention on the border issues. Mick Mulvaney, the acting White House chief of staff, said on “Fox News Sunday” that the president is “deadly serious.” Still, Mulvaney acknowledged there are no concrete benchmarks being set to assess whether the US ally is stemming the migrant flow enough to satisfy the administration. “We intentionally left the declaration sort of ad hoc,” he said. “So, there’s no specific target, there’s no specific percentage, but things have to get better,” Mulvaney said. “They have to get dramatically better and they have to get better quickly.” GOP Sen. John Kennedy of Louisiana, called the tariffs a “mistake” and said it was unlikely Trump would impose them. Republicans on Capitol Hill and GOP allies in the business community have expressed serious unease with the tariffs. Some see this latest threat as a play for leverage and doubt Trump will follow through. Earlier this year, Trump threatened to seal the border with Mexico only to change course. Florida GOP Sen. Marco Rubio tweeted that the situation at the border was “unsustainable.” But he said he was “hopeful this can be resolved” without Trump using his authority to impose tariffs. Republicans have repeatedly tried to nudge Trump away from trade wars and have specifically questioned the White House’s ability to rely on executive authorities to impose some of them as national security issues. At the same time, Trump’s efforts to revamp immigration laws have drawn little support in Congress. “I think what the president said, what the White House has made clear, is we need a vast reduction in the numbers crossing,” Kevin McAleenan, acting secretary of the Department of Homeland Security, said on CNN’s “State of the Union.” Mulvaney, who also appeared on NBC’s “Meet the Press,” said Mexico could take various steps to decrease the record numbers of migrants at the border. He suggested the Mexican government could seal its southern border with Guatemala, crack down on domestic terrorist organizations and make Mexico a safe place for migrants seeking to apply for asylum. E conom i s t s a nd bu s i ne s s groups are sounding alarms over the tariffs, warning that they will impair trade and increase the costs of many Mexican goods that Americans have come to rely on. AP
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USTR, Treasury defend Trump strategy on trade row with China
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EIJING—China’s “unfair trade practices” have cost the US hundreds of billions of dollars, the US Trade Representative and Treasury Department said in a statement rebuking Beijing for the stalemate in negotiations between the two biggest economies. The statement, seen Tuesday on the USTR’s website, did not include any new actions against China. But it said the United States was “disappointed” by a report Beijing issued over the weekend defending China’s stance and accusing US officials of backsliding in the talks. It said Beijing was pursuing “a blame game misrepresenting the nature and histor y of trade negotiations.” “It is important to note that the impetus for the discussions was China’s long history of unfair trade practices,” the statement said. Such actions have “caused severe harm to American workers, farmers, ranchers and businesses.”
The two sides are in a stalemate after 11 rounds of talks over trade and technology issues that have led to both sides raising tariffs on hundreds of billions of each other’s goods, among other retaliatory measures. President Donald Trump has said he expects to meet his Chinese counterpart Xi Jinping at a meeting of the Group of 20 leading economies planned for Osaka, Japan, in late June. But with no sign of a fresh round of talks, the two governments are trading blame and maneuvering to drum up domestic support for what is turning out to be a bruising trade war for
farmers and manufacturers on both sides. On Tuesday, the 30th anniversary of the brutal crackdown on pro-democracy demonstrations in Beijing’s Tiananmen Square, a commentary in the Chinese newspaper Global Times praised the ruling Communist Party’s decisions at such critical moments as crucial for creating the country’s “growth miracle.” “It would have been impossible for China to make the achievements of the past 30 years had there been any political instability,” it said, without specifically mentioning the June 4 anniversary. “China’s history, culture and other conditions have determined that it cannot take the same path as some Western countries did,” said the commentary in the Communist Party-controlled newspaper. It cited the trade war as one of many problems that China’s economy has confronted in recent decades. “The reason why the Chinese economy can create miracles is precisely because it has taken a path that suits its own national conditions, rather than blindly following the Western theory.” The report issued by China on Sunday said Beijing would not back
down on “major issues of principle” and that it had kept its word throughout the talks. It accused Washington of backtracking by introducing new tariffs and other conditions beyond what had been agreed to earlier. China has not yet announced details of a list of “unreliable entities” that Beijing announced last week it was planning to issue. Wang Shouwen, a Commerce Ministry vice minister, said the list would target companies that “violated market principles” and that cut supplies of components to Chinese businesses for noncommercial reasons. Wang also reiterated suggestions that China might limit exports of rare earths, minerals such as lithium that are used in many products including cellphones, electric vehicles and the batteries that run them. That announcement followed a decision by the US Commerce Department to effectively bar US companies from selling or transferring technology to Huawei Technologies, a company based in southern China’s Shenzhen that is the world’s biggest maker of network gear and No. 2 smartphone manufacturer. AP
Trump turns from pomp to business in UK visit
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ONDON—President Donald J. Trump will turn from pageantry to policy Tuesday as he joins British Prime Minister Theresa May for a day of talks likely to highlight fresh uncertainty in the allies’ storied relationship. Trump and May are due to me et w it h cor p or ate e xe c utives from the United States and United K ingdom, before an afternoon news conference on the second day of Trump’s state visit. The leaders’ top priority is a possible bilateral trade deal to take effect once the UK leaves the European Union. “Big Trade Deal is possible once U.K. gets rid of the shackles. Already starting to talk,” Trump tweeted Monday, as he launched his visit with a day of royal pomp and circumstance. He and first
lady Melania Trump paid a visit to Buckingham Palace, where Queen Elizabeth II greeted them with a smile. The evening ended with a lavish state dinner. Britain is scheduled to leave the EU on October 31 unless both sides agree to an extension. Its position is in flux because May is stepping down as party leader Friday, setting in motion a race to succeed her as prime minister. It is t rad it iona l for US a nd ot her world leaders to not weigh in on a not her’s domes t ic pol it ics. But Tr u mp hasn’t let t hat stop h im. Tr u mp told t he Su nd ay Times in a n inter v iew that Br ita in shou ld “wa l k away” f rom ta l k s and ref use to pay a 39 bi l l ion- pou nd ($49 billion) divorce bill if it doesn’t get bet ter ter ms f rom t he EU.
The president also says Brexit party leader Nigel Farage, an outspoken advocate of leaving the EU without a deal, should be given a role in the negotiations. Trump has also taken the unusual step of saying that Conservative Party leadership candidate Boris Johnson would make an “excellent” leader for the U.K. The meeting with business leaders at St. James’ Palace will bring together 10 leading companies— five from the UK and five from the United States. They’ll explore where cooperation could benefit both sides. CEOs and senior representatives from BAE Systems, GlaxoSmithKline, National Grid, Barclays, Reckitt Benckiser, JP Morgan, Lockheed Martin, Goldman Sachs International, Bechtel and
Splunk are expected to attend. As often happens when Trump travels overseas, norms were shattered, including when the president complained about his television viewing options in the foreign capital and urged people to punish CNN by boycotting its parent company, AT&T. Following Tuesday’s focus on business and trade, Trump will use the next two days to mark the 75th anniversary of the June 6, 1944, D-Day landing, likely the last significant commemoration most veterans of the battle will see. The events will begin in Portsmouth, England, where the invasion was launched, and then move across the Channel to France, where Allied forces began to recapture Western Europe from the Nazis. AP
US aircraft carrier deployed over Iran remains outside Gulf
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BOARD the uss abraham lincoln—A US aircraft carrier ordered by the White House to rapidly deploy to the Mideast over a perceived threat from Iran remains outside of the Persian Gulf, so far avoiding any confrontation with Iranian Revolutionary Guard forces amid efforts to deescalate tensions between Tehran and Washington. Officers aboard the USS Abraham Lincoln repeatedly told The Associated Press on Monday they could respond rapidly to any regional threat from their position, at the time some 320 kilometers (200 miles) off the eastern coast of Oman in the Arabian Sea. However, after decades of American aircraft carriers sailing through the Strait of Hormuz, the narrow mouth of the Persian Gulf through which a third of all oil traded at sea passes, the US Navy’s decision to keep the Lincoln away is striking. “You don’t want to inadvertently escalate something,” Capt. Putnam Browne, the commanding officer of the Lincoln, told the AP. The White House in May deployed the Lincoln and B-52 bombers to the Persian Gulf. The US also plans to send 900 additional troops to the Mideast and extend the stay of another 600 as tens of thousands of others also are on the ground across the region. The crisis takes root in President Donald Trump’s withdrawal last year of the US from
the 2015 nuclear deal between Tehran and world powers that capped Iran’s uranium enrichment activities in return for lifting sanctions. Washington subsequently reimposed sanctions on Iran, sending its economy into freefall. Trump has argued that the deal failed to sufficiently curb Iran’s ability to develop nuclear weapons and ballistic missiles, or halt its support for militias in the Mideast. But amid the escalation, the US alleges without offering evidence that four oil tankers off the coast of the United Arab Emirates were attacked with limpet mines. Meanwhile, Yemen’s Iranian-backed Houthi rebels have launched coordinated drone attacks on Saudi Arabia. The US itself has made a point to show its arsenal in the region. On Sunday, the US Air Force announced a B-52 conducted a training exercise with the Lincoln that included “simulated strike operations.” That came as Monday marked the 30th anniversar y of the death of Ayatollah Ruhollah Khomeini, the founder of Iran’s I s l a m i c R e p u b l i c. Th o u s a n d s i n I ra n commemorate Khomeini’s death by visiting his golden shrine south of Tehran. This year, Iranian military officials reportedly plan to guard it with HAWK surface-to-air missiles, the same kind the US delivered to the Islamic Republic in the Iran-Contra scandal.
However, in recent days, the Trump administration has stressed it is ready to speak to the Iranians without preconditions. Iran in turn has demanded the US show it respect. Though officials repeatedly declined to discuss it, keeping the Lincoln out of the Strait of Hormuz and Persian Gulf helps to de-escalate the situation. Transits through the strait, which at its narrowest point is just 33 kilometers (21 miles) wide, often see the paramilitary Revolutionary Guard’s naval forces shadow American warships. They’ve also run snap missile launches, fired machine guns and flown drones over American carriers. To Iran, which shares the strait with Oman, they view the American naval presence akin to Iranian forces sailing into the Gulf of Mexico. But the US Navy stresses the strait is an international waterway crucial to global shipping and energy supplies. Asked about why the Lincoln hadn’t gone through the strait, Rear Adm. John F.G. Wade, the commander of the carrier’s strike group, said that his forces could “conduct my mission wherever and whenever needed.” He declined to discuss any specifics about that mission, though he said Iran had presented“credible threats”to the region. “ Th ey do impo se a thre at to o ur operations, but also to the safety and security of commerce and trade going through the Strait of Hormuz and that’s why we are here,” Wade said.
The Lincoln hosted journalists from the AP and other media outlets on Monday. They spent some four hours aboard the vessel after a two-hour flight from the United Arab Emirates and were greeted by cameracarrying sailors who documented every part of their time onboard. The Lincoln famously served as the backdrop of then-President George W. Bush’s May 2003 speech declaring combat operations over in Iraq, a banner reading “MISSION ACCOMPLISHED” hanging behind him. The majority of the war’s casualties came after. On Monday, F/A-18s flew maneuvers over the carrier. Accompanying the Lincoln to the Mideast are three destroyers — the USS Bainbridge, the USS Mason and the USS Nitze — as well as the guided-missile cruiser the USS Leyte Gulf. Capt. William Reed, the commander of the carrier’s air wing, laughed off any notion the situation was stressful. “It’s just another day at the office,” he said from the carrier’s hangar as airmen worked on the ship’s F/A-18 fighter jets. Capt. Chris Follin, the commodore of the destroyer strike group traveling with the Lincoln, didn’t express any concern, either. “I wouldn’t want to go against that,” he said, nodding toward the ship’s sailors and warplanes. “Our mission is just to keep the peace.” AP
A10 Wednesday, June 5, 2019 • Editor: Angel R. Calso
Opinion BusinessMirror
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editorial
‘Uncompetitive’ PHL
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OLGATE-PALMOLIVE Philippines Inc. shuttered its manufacturing operations and moved out of the country in 2008. The multinational firm cited the lack of infrastructure and the high cost of water and electricity as some of the factors behind its decision to transfer the production of hair-care and home-care products to Malaysia and Thailand. While company officials cited in a 2016 report the growth numbers notched by the Philippines in recent years, they urged the government to address constraints to competitiveness. A decade after Colgate-Palmolive shut down its Philippine production facility, Manila has yet to address the complaints of the multinational company. This seeming apathy to the concerns of local and foreign businesses is affecting the country’s ability to attract more investors, particularly at a time when opportunities are ripe. The trade war between the United States and China has been forcing companies to rethink their operations in the Asian giant due to high tariffs. But the Philippines, despite being relatively insulated from the impact of the trade war, will hardly benefit from possible relocations. The Philippines, according to a trade expert, will have a difficult time attracting investors fleeing the ill effects of the US-China showdown (See, ‘“PHL not a priority for trade-row victims,’” in the BusinessMirror, June 3, 2019). While affected firms may relocate to Southeast Asia, Hinrich Foundation Research Fellow Stephen Olson said they will likely go to Vietnam or Malaysia. The two Asean members will gain from the US-China trade war as they have better information-technology infrastructure, efficient labor and modern ports. The recent competitiveness surveys reflect the weaknesses of the Philippines in a number of areas, weaknesses that make investors think twice about locating in the country. In the Global Competitiveness Index of the World Economic Forum, the Philippines lagged in institutions, health and infrastructure. The country also ranked low in the number of days it takes to start a business (See, “PHL jumps 12 rungs up Global Competitiveness Index of 140 economies,” in the BusinessMirror, October 17, 2018). In the IMD World Competitiveness Ranking 2019, the country was a laggard when pitted among 14 Asia-Pacific economies. The Philippines also scored its lowest indicator in infrastructure (See, “IMD competitiveness ranking: PHL climbs 4 notches to 46th slot,” in the BusinessMirror, May 29, 2019). While the Philippines recorded improvements in ranking in the two competitiveness surveys, Manila needs to do more to approximate the business environments in other Asean members. Ironically, red tape continues to make life difficult for local and foreign businesses a year after the President signed the Ease of Doing Business law (See, “‘Red tape a bane’ 1 yr after EODB law’s OK,” in the BusinessMirror, May 29, 2019). The President has yet to appoint somebody to head the Anti-Red Tape Authority, who will issue the implementing rules and regulations of the EODB law. Failure to address problems that usually hound new investors will hurt government efforts to meet its target of creating 1 million jobs a year. And hitting the job-creation target is crucial if the Duterte administration wants to reduce poverty incidence to 14 percent by 2022. Putting in place the necessary reforms to make the Philippines more business-friendly will ensure that the country will be in the radar of investors, even without a trade war. Since 2005
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Partnerships for hope Susan V. Ople
SCRIBBLES
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S a longtime overseas Filipino workers (OFW) advocate, I have seen how a repatriated overseas worker feels overwhelmed by so many mixed emotions, of relief layered with grief, and of hope at the fringe of anxiety. The hallelujahs that come from finally being able to come home and reunite with the family can easily turn into a somber prayer for help because starting over is never easy. I remember when my nongovernment organization, the Blas F. Ople Policy Center, had to provide temporary shelter to a rape victim from Kuwait. She was too scared to notify her husband of her arrival. It took her two months before finally gaining enough courage to go home to the province and reunite with her spouse and children. It was painful to watch her go through a recovery process, wanting to be home and yet not prepared to live up to her role as wife and mother. Sometimes, when we go abroad as tourists, we experience the freedom to be more adventurous and open to new experiences. This is expected of tourists—to spend, to roam around, and to immerse one’s self in a strange yet wonderful culture. Eventually, the adventure ends and bags filled with souvenirs and gifts are packed for home. Not so, for a migrant worker. The usual contract is for a twoyear job, sometimes even longer, in a multicultural environment where the pay is much more than what our own labor market offers, but with enormous challenges attached.
A Filipino working abroad as a domestic worker is the most vulnerable of them all. Even when her contract ends, her foreign employer can find vicious ways of making her stay—from veiled threats against her or her family to the withholding of salaries and benefits with a promise of release once her contract is renewed. Slavery is all about controlling someone’s life, until he or she loses even the will to live. For the past few months, I have set out on a journey to look for potential partners that can help bring hope to the hearts of these repatriated distressed overseas workers. That journey led me to tap my closest and most trusted friends in the overseas employment sector, and they readily agreed to step up and deliver. We decided to establish CORE, which stands for the Center for OFW Reintegration and Empowerment. Nonprofit in nature, CORE provides free counseling, job referrals and financial literacy seminars for returning OFWs. CORE and the Inter-Agency Council Against Trafficking (IACAT) will be helping our OFWs who are
victims of human trafficking in their reintegration plans. The youngest ship captain in Philippine history, Capt. Gaudencio “Jess” Morales, is CORE’s chairman. From his long years as a seafarer, Jess now owns his own manning agency, as well as several lucrative real-estate properties and other businesses. Jess also heads the Integrated Seafarers of the Philippines (ISP) that promotes entrepreneurship for seafarers. Assisting Jess as CORE’s president is Loreto “Lito” Soriano, a former OFW turned successful entrepreneur. Lito owns LBS e-Recruitment and an information-technology solutions firm. While working in Saudi Arabia, he took on odd jobs including repairing swimming pools and cutting hair, trades that he just learned on his own, so he could save more money. He eventually returned home and was able to set up his own agency. The other officers of CORE are equally impressive: Elsa Villa, who serves as vice president, ably heads the oldest recruitment industry association known as PASEI; Nora Braganza, heads JEPPCA, an industry association of recruiters accredited for Japan; Marc Capistrano heads Staffhouse International, one of the top international recruitment offices known for advocating ethical recruitment practices. We also have from the maritime sector, the very successful Capt. Danny Ricohermoso of Hagonoy, Bulacan, and businessman Eric Marquez. Edwina Beech, chairman of PASEI, is also passionate about reintegration especially for women. Engineer Nelson Ramirez, Pastor Jun Macas, NGO leaders Luther Calderon and Fe Nicodemus, as well as recruitment industry leader Raquel Bracero and CORE Board
Secretary Ivan Lilles, round up the rest of the CORE officialdom. Aside from CORE, we also have trusted and trustworthy allies on the OFW reintegration front, such as: Junior Chamber International Manila represented by Roel “Owie” Gallardo, Reyes Haircutters led by its owner, Celestino “Les” Reyes and Training Director Alex Dungo, FindWork, a local employment online platform led by Liziel Cosgayon, OFWturned entrepreneur Princess Rosario-San Diego with husband, Chino San Diego, represents the home-based franchise, “What’s Your Flan?,” the highly respected Villar SIPAG Foundation is also part of our network with Liza Zurbito as representative, and finally, the Tesda-accredited SETSI, a Marikina City training center headed by Ryan Ulysses Cruz. The wonderful Ebb Hinckley and my good friend, Ernie Cecilia, of the American Chamber of Commerce are also very supportive of our cause and will soon be part of this growing network. We all agreed to take our repatriated workers by the hand, and help them through livelihood training, local employment possibilities, job internships and financial literacy programs. We will be working closely with the Department of Justice-IACAT to help as many human-trafficking victims as we can. The Blas F. Ople Policy Center is open to more partners. Join us, please. It is in giving that we discover how blessed we are. Write to me via toots.ople@yahoo.com. Let’s talk. Susan V. Ople heads the Blas F. Ople Policy Center and Training Institute, a nonprofit organization that deals with labor and migration issues. She also represents the OFW sector in the Inter-Agency Council Against Trafficking.
Bannon’s conquest of Europe has not gone well Leonid Bershidsky
BLOOMBERG
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TEVE BANNON’S setback in opening an academy for nationalist politicians in Italy crowns an ill-fated European adventure for the political strategist. His Napoleonic plans on the old continent ran into an obstacle he obviously failed to foresee: Europe is not the US. Last September, Bannon promised a major effort to help European nationalist parties do as well in the European Parliament election as his client Donald J. Trump did in the 2016 US presidential race. It would, Bannon said, be a “continent-wide presidential election.” He promised to set up “war rooms” for right-wing forces, run polls for them and help them with data analytics. He hoped to “drive the stake through
the vampire” of globalism, with the vampire’s “beating heart” being the European Union. But first, nationalists would win at least 30 percent of the seats in the European Parliament; they’d even aim for 50 percent. In February, I went to see Bannon’s chosen point man in Europe, Belgian lawyer Mischael Modrikamen, who had set up a Brussels foundation called The Movement to help unify the EU’s
far right. Modrikamen told me the war rooms had been a nonstarter because of tough campaign financing laws in European nations—and because he saw himself as running a kind of nationalist social club rather than “providing assistance to some Croatian party.” The club hasn’t really gotten off the ground, either—The Movement keeps putting off its grand launch event, and I doubt now that it’ll ever be held. Modrikamen’s small Popular Party achieved its worst results ever in both the European Parliament vote and the simultaneous Belgian national election, failing to get any seats. On May 31, Modrikamen announced he was quitting the party and Belgian politics. Bannon’s activity, of course, wasn’t limited to cooperation with Modrikamen and his small group, run out of his Brussels home. Bannon also looked to Italy, where Matteo Salvini, leader of the right wing League party and current interior minister, is a likeminded politician. The League joined The Movement last September. Bannon met with Salvini multiple times,
praised him as “the most important guy on the stage right now” and called last year’s Italian election, in which Salvini won enough votes to form a governing coalition with the populist Five Star Movement, the local equivalent of Trump’s victory in the US. But Salvini’s attempt to bring together all European nationalist and euroskeptical parties ahead of the EU election fizzled in two important ways. First, Salvini has had little luck with key eastern European parties such as Law and Justice in Poland, and Fidesz in Hungary. His group in the European Parliament will include some important nationalist forces, such as the Alternative for Germany and France’s National Rally, led by Marine Le Pen, but not other key ones, such as the Sweden Democrats. Second, nationalists and euroskeptics wouldn’t have made any gains in the EU election had it not been for the Italian political anomaly. Even with a big contribution from the League, and even using the most inclusive
See “Bershidsky,” A11
Opinion BusinessMirror
www.businessmirror.com.ph
Don’t be evil
Can corporate ratings be higher than the sovereign credit ratings? Exception Atty. Dennis B. Funa
Atty. Amabelle C. Asuncion
INSURANCE FORUM
Competition Matters
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BUSE in any context is bad. There are laws against different forms of abuse: child abuse, abuse of women, abuse of authority, to name a few. The essence of these laws is to protect those in a position of weakness or disadvantage against those occupying a position of strength or power. Likewise, those enjoying such a position are not supposed to take advantage and cause harm to those in an inferior position. The same can be said about abusive conduct in the context of competing businesses. The Philippine Competition Act’s (PCA) prohibitions against abuse of dominant position guard against abusive exercise of market power over other, often smaller, players. Business practices that prevent entry or growth of other players are detrimental not only to the competitors but also to the consumers because they can be left with a dominant player turned monopolist. Some practices that offer some form of “benefit” may appear altruistic, such as bundling another product for free or giving an incentive in exchange for exclusivity. Other practices may be as brazen as threatening to refuse supply, or advocating regulatory barriers under the guise of public interest. Regardless of the form, however, these practices are considered abusive conduct. Abuse was bad even then. In the late 1990s, Microsoft used its dominant position in the desktop computer operating systems (OS) market to exclude the Internet browser Netscape Navigator, which was competing with Microsoft’s own Internet Explorer. At the time, Microsoft’s Windows enjoyed a 90-percent + market share in the OS market. Most applications were written to be compatible with Windows so users purchased it over other OS. With the advent of the worldwide web, a then up-and-coming company developed Netscape Navigator, which enabled users to access applications located in another server. In response, Microsoft came up with Internet Explorer. Using its dominant position in OS, Microsoft then bundled IE with Windows for free and gave incentives to other firms in exchange for their commitment to distribute and promote IE. Microsoft also engaged in practices to exclude Navigator from important distribution channels. Some of these practices were considered abusive conduct in the United States. Abuse remains bad today. From desktop browsers in the 1990s, the battle for online supremacy is now being waged on the mobile front with the Google Chrome case decided only last year. In order to cement Chrome’s dominant position in the market for general Internet search engines, Google imposed certain restrictions on Android device manufacturers. These included requiring them to preinstall Google Chrome as a condition for licensing Google Play Store; making payments in exchange for exclusively preinstalling Google Chrome; and preventing those wishing to preinstall Google Chrome from selling smart mobile devices running on alternative versions of Android (i.e., Android forks) without Google’s approval.
Bershidsky. . . continued from A10
definitions of “nationalist” and “euroskeptical,” these forces have won about 23 percent of the seats. Since the League’s support is none of Bannon’s doing, all the speeches the American made across the continent and all the noise he made about unifying the right haven’t had any visible effect on the nationalists’ election performance. Besides, even in Italy, Bannon doesn’t have enough political support to establish a foothold. Italy’s culture
Wednesday, June 5, 2019 A11
These restrictions were considered by the European Commission (EC) as abusive conduct because these foreclosed Google’s rivals’ opportunity to compete, and obstructed the development of Android forks, which could have provided alternative platforms for rival search engines to gain traffic. The EC slapped Google with an unprecedented fine of €4.34 billion. It is almost inexplicable why Google did not learn from Microsoft. Then again, businesses do continue to engage in similar practices to this day. The drive to maintain and cement market dominance intensifies the inclination to resort to strategies that would exclude competitors, big or small, old or new. When this tendency arises, taking the perspective of the small/new player or that of a consumer may temper the temptation—take the child’s position, or the woman’s, or that of the abusive officer’s victim. Recall the challenges you had to hurdle as a new business. Were there artificial barriers that made it difficult to set up the business and enter the market? Did you attempt to penetrate a distribution channel only to be told that an exclusivity arrangement with a long-time dominant player prevents a distributor from carrying your product? Did your competitor crowd you out by offering incentives to a big customer, which purchased most of its supply requirements from them? Remember your frustrations as a consumer. How often did you have to suffer from a bad service or product because the dominant provider or manufacturer managed to prevent its competitors from making their service or product equally available to you? How many times did you have to purchase something you did not want/need, or felt compelled to agree to a condition because you were told it was required for the purchase you actually wanted to make? Do you find goods to be priced higher than they should? If these concerns resonate, it is because these are the very ills that a misbehaving dominant player can cause, whether intentionally or unintentionally. Thus, as one loathes being at the receiving end of such conduct, one must also learn to behave. As Google’s own motto (ironically) puts it, “Don’t be evil.”
A
SOVEREIGN credit rating is defined as “an independent assessment of the creditworthiness of a country or sovereign entity. Sovereign credit ratings can give investors insight into the level of risk associated with investing in the debt of a particular country, including any political risk.” These sovereign credit ratings are usually essential for countries that want to access funding in international bond markets or want to attract foreign direct investment. Sovereign credit risk looks into the likelihood that a government will be unable or unwilling to meet its debt obligations in the future by examining its debt service ratio, growth in domestic money supply, import ratio, among others. The ideal is to get investmentgrade rating. Standard & Poor’s investment grade is “BBB-” or higher. Below this grade or a “BB+” or lower is deemed speculative. Moody’s investment grade is “Baa3” or higher. A rating of “Ba1” and below is noninvestment grade. An economic outlook is also assessed as either positive, negative or stable. In 2014, Moody’s gave the Philippines a credit rating of “Baa2” with a stable outlook. Fitch, in 2017, upgraded the Philippine’s credit rating to “BBB” from BBB-. In 2018, S&P gave the Philippines a credit rating of BBB with an outlook of positive. All investment grade. Credit rating agencies would include the big three—S&P, Moody’s and Fitch Ratings. But there are other credible rating agencies as well, such as China Cheng Xin International Credit Rating Co., Dagong Global Credit Rating, DBRS (the world’s
fourth-largest rating agency), and Japan Credit Rating Agency.
General rule
GENERALLY, companies cannot have a rating higher than the credit rating of the country where they operate in—even if the company is a better credit risk than its home country. Corporations generally are not allowed to “pierce the country ceiling.” Credit rating agencies rarely give ratings to local government levels and private companies that are higher than that of the country’s sovereign rating because credit rating agencies perceive that the performance of institutions within a particular sovereignty is largely dependent on the country’s economic performance. This is called the “sovereign ceiling” policy. This policy is based on the belief in the direct correlation, let us say, between sovereign crises and corporate defaults.
THIS mindset of sovereign ceiling policy is not absolute. A sovereign default does not necessarily imply a default of the corporates. It has been noted that “the greater a company’s international diversification, the less likely it is to be affected by a weakening environment in its home country.” S&P has, in fact, gone to the extent of stating that it “long ago rejected the notion of constraining all ratings at the level of the sovereign rating.” S&P has even given some 100 issuers worldwide ratings above the sovereign. In the US, Microsoft and Johnson & Johnson (J&J) have received credit ratings higher than the rating of the United States, their home country. In August 2011, S&P downgraded the United Sates debt from “AAA” to “AA+,” the second-highest rating. In other words, Microsoft and J&J are seen as having a lower credit risk than the US government. In doing so, S&P is, in effect, saying: “The entity’s debt-servicing ability is superior to that of the sovereign, and that, ultimately, if a sovereign foreign currency default occurs, there is no appreciable likelihood that the issuer or issue will default.” Fitch, on the other hand, determines on a case-by-case basis whether and by how much a corporate can be rated above its sovereign. Fitch believes that corporates can be rated above the sovereign. In certain cases, however, Fitch believes “it is impossible to completely de-link structured finance ratings from the credit worthiness of the relevant sovereign.” While the sovereign ceiling policy is the rule, the question is at what stage would a credit rating agency be willing to give a rating higher than
Arab unity remains a desert mirage
I
By Bobby Ghosh | Bloomberg Opinion
T was meant to be a demonstration of Saudi Arabia’s enormous convening authority in the Islamic world: In a 48-hour period last week, King Salman Bin Abdulaziz hosted a summit of the Organization of Islamic Cooperation (OIC), and emergency meetings of the Arab League, and the Gulf Cooperation Council (GCC).
Before her appointment to the Philippine Competition Commission, Commissioner Asuncion was engaged in corporate and commercial practice and served as chief legal counsel of a top company and a corporate partner of a law firm. She was also previously involved in legislative, law and policy reform, advocacy, and adjudication work. Commissioner Asuncion has a master of laws degree (with distinction) in international legal studies from Georgetown University Law Center in Washington, D.C., and is admitted to the New York bar.
Instead, the gatherings in Mecca demonstrated the utter futility of these organizations. The Islamic world is more divided than ever, along fault lines old and new, and the grandees who answered King Salman’s summons could scarcely be bothered to discuss any of the problems, much less offer solutions. Some of this was predictable. The OIC and Arab League have been pointless for decades. They have rarely addressed themselves to the problems of the Muslim world, such as the persecution of Uighurs in China or Rohingyas in Burma—or of its Arab subset, such as the civil wars in Syria, Yemen and Libya. They serve no meaningful purpose other than to make statements, usually against Israel for its treatment of Palestinians. And sure enough came the barely warmed over OIC bromide issued from Mecca, condemning any recognition of Jerusalem as the capital of Israel, and calling on member states to take “appropriate measures” against nations that move their embassies. Naturally, the organization declined to define the measures— or insist they be taken by its host against his close ally, the US. Perhaps to spare the blushes of
his guests, King Salman announced his “unequivocal rejection of any measures that would prejudice the historical and legal status of Jerusalem.” The only remarkable thing about this statement is that it was delivered with a straight face. The king’s “rejection” might have undermined the chances of the Israeli-Palestinian peace plan being drafted by Jared Kushner, President Trump’s son-in-law—if that plan had any chance of success in the first instance. Of the two emergency meetings on the sidelines of the OIC summit—both meant to address Iran’s growing threat to the Arab world—the GCC gathering was potentially more interesting. The Council should by rights be a more coherent body than the OIC or the Arab League, since its members are bound by the geography of the Arabian Peninsula, as well as ethnicity, faith and history. But its members have been unable to align their interests, especially over Iran. While Saudi Arabia, the UAE and Bahrain have been belligerent toward the Islamic Republic, the other three members—Qatar, Kuwait and Oman—take a more cautious view, maintaining economic relations and
ministry said last week it would revoke the lease of the Bannon-linked lobby group Dignitatis Humanae Institute on a state-owned monastery not far from Rome. Bannon had planned to open an academy for nationalist leaders there. The ministry said the institute didn’t have enough experience in the preservation of historic monuments such as the 13th-century monastery and that it had failed to comply with its financial obligations related to the monastery’s maintenance. The Italian daily La Repubblica reported last month that the group had submitted a fake bank guarantee, an accusation Bannon denies.
Although the Dignitatis Humanae Institute has vowed to appeal the ministry’s decision in the Italian courts, it’s obvious that Salvini’s authority doesn’t stretch far enough to let Bannon make Italy his permanent European base. The culture ministry is run by Salvini’s coalition partner, the Five Star Movement, which, although also euroskeptical, wants nothing to do with the American. Since the European Parliament election, Bannon has tried to put a brave face on the nationalists’ performance. He declared that “the integration movement which is what the EU has always been
about is dead” and renewed calls for a nationalist “supergroup” in the European Parliament. But in the extremely unlikely event that such an umbrella group materializes, it won’t have the votes to defeat any integration projects—and it won’t owe anything to Bannon. European nationalists applauded Trump’s victory in 2016 because they saw it as an anti-establishment breakthrough. If it was possible in the US, why not in Europe, where most nationalist parties are excluded from government by coalition politics? This doesn’t mean, however, that any of these parties have much use for Bannon, ejected
While Saudi Arabia, the UAE and Bahrain have been belligerent toward the Islamic Republic, the other three members—Qatar, Kuwait and Oman—take a more cautious view, maintaining economic relations and diplomatic connections with Iran.
the sovereign rating? S&P has proposed to stress test corporate ratings with hypothetical sovereign default scenarios, unless the sovereign has a sovereign foreign currency rating of “AA-” or higher. It also proposed applying a cap on the number of notches (four notches) above the sovereign rating that a corporation can be rated. Finally, it also proposed that such cap be determined by the “transfer and convertibility risk” of the subject sovereign. T&C risk is “the risk that capital and exchange controls may be imposed by government authorities that would prevent or materially impede the private sector’s ability to convert local currency into foreign currency, transfer funds to nonresident creditors or both.” This risk does not exist in the eurozone because of the common currency.
Relation of country risk to insurance sector
INTERESTINGLY, the insurance sector and its assets have “high” sensitivity to country risk, which means they are highly sensitive to a combination of economic volatility and potential changes in the legal and regulatory environments. Life insurers, life reinsurers, savings-based health insurers and composite insurers with a majority of life liabilities are considered as highly sensitive, because their business is heavily influenced by the pace of wealth accumulation in a country and because a significant share of assets tend to be invested in domestic government debt and domestic bank deposits. Dennis B. Funa is the current insurance commissioner. Funa was appointed by President Duterte as the new insurance commissioner in December 2016. E-mail: dennisfuna@yahoo.com.
diplomatic connections with Iran. This division widened two years ago this week, when Saudi Arabia, the UAE and Bahrain, along with Egypt, began an embargo of Qatar— they cited, among other things, the country’s ties to Iran. Qatar quickly overcame the economic restrictions, but Oman and Kuwait were caught in the middle of the internecine faceoff. They are acutely aware that they could easily become the next target for an embargo, but they have nonetheless kept up their relations with Qatar—and with Iran. The complications caused by the Gulf feud also undermine US interests in the region, the more so because of the confrontation with Iran. If President Trump’s “maximum pressure” campaign against the Islamic Republic is to succeed, it will require full-throated GCC support. What’s more, there are some in the Trump administration who entertain the fantasy of an “Arab Nato,” to brandish against Iran. This would require the militaries of the six GCC countries, plus those of Egypt and Jordan, to work closely with each
other. Leave aside the inconvenient reality that these forces are more comfortable taking on unarmed demonstrators than enemies who shoot back—witness their thorough incompetence in Yemen—such an alliance is hard to pull off when the Gulf nations are busy watching each other as if it was the climax of “The Good, the Bad and the Ugly.” That’s why there was a frisson of excitement in foreign-policy circles ahead of the Mecca meetings when Qatar announced that its Prime Minister, Sheikh Abdullah Bin Nasser Al Thani, would attend. Could this be the start of reconciliation? No, it couldn’t. The Saudis, keen to project a united front against Iran, seem to have paid little attention to the concerns of Qatar, Kuwait and Oman. Qatar’s foreign minister, Sheikh Mohammed Bin Abdulrahman Al Thani, said there was no consensus. The statements issued after the meetings, he said, “condemned Iran but did not refer to a moderate policy to speak with Tehran.” Over the next few days, the angry rhetoric will escalate: the Saudi-Emirati-Bahraini group will accuse Qatar of sabotaging unity efforts, and the Qataris will accuse the troika of reckless belligerence. The Kuwaitis and Omanis will, in all likelihood, maintain an awkward silence. What will not need to be said is that the GCC, like the OIC and the Arab League, is to all intents and purposes, dead.
from the Trump team and devoid of clear political prospects in the US. Besides, Bannon has shown a lack of appreciation for how electoral and coalition politics function in Europe. The EU, despite all of the nationalist laments about its excessive centralization, isn’t a place where one can run political campaigns from a single center. Nor can its umbrella political forces be the same kind of mixed bags as the major US political parties: They don’t operate in a two-party system and are therefore geared toward making deals, often temporary ones, across the aisle rather than accepting any kind of unified leadership.
And, of course, when it comes to parties that put national sovereignty above all else, any kind of US interference is as doomed as, say, Russian interference. The European nationalists may seek US or Russian resources, but they can’t accept the help openly and, in any case, they won’t be loyal to their sponsors because maximum sovereignty is their fetish. Today’s Europe is such a complex tapestry of interests, political systems, traditions and eccentric personalities that no external actor can hope to influence EU politics sufficiently to change anything. Bannon ought to admit it and go home.
2nd Front Page BusinessMirror
A12 Wednesday, June 5, 2019
www.businessmirror.com.ph
DBM okays budget for ASF-prevention plan By Jasper Emmanuel Y. Arcalas
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@jearcalas & By Henry Empeño | Correspondent
HE Department of Budget and Management (DBM) has approved the Bureau of Animal Industry’s (BAI) proposal to allocate P85.14 million to strengthen quarantine measures against African swine fever (ASF), according to the Department of Agriculture (DA). Agriculture Secretary Emmanuel F. Piñol confirmed to the BusinessMirror that the DBM has given its nod to the fund, which will be included in the 2020 budget for the government’s ASF-prevention plan dubbed BABES. “BABES” stands for ban pork imports, avoid swill feeding, block entry at international ports, educate our people and submit samples.
Joy O. Lagayan, BAI veterinarian and member of the country’s ASF Task Force, told the BusinessMirror that the fund will be used for “capacity building, border control, prevention and detection.” Lagayan earlier told the BusinessMirror that P42 million of the P85.14 million will be used to improve the BAI’s laboratory power, procure test kits, conduct seminars
and workshops on ASF, and conduct an information campaign on the fatal swine disease. The remaining fund will go to strengthening the government’s quarantine measures, including the deployment of meat-sniffing dogs. Pork Producers Federation of the Philippines Inc. President Edwin G. Chen commended the DBM for supporting the government’s quarantine measure to protect the country’s P200-billion hog industry. The government is keen on protecting its borders from ASF as the fatal hog disease has reached neighboring Southeast Asian countries such as Vietnam and Cambodia where it killed millions of swine. The virus has killed hogs in Hong Kong and North Korea. On Tuesday, Piñol issued a memorandum circular advising shipping and forwarding companies to refuse meat and canned meat prod-
ucts from ASF-affected countries. This, he said, seeks to “complement and strengthen the coherent efforts of various agencies in preventing the entry of ASF virus in the country.” The ASF is fatal to swine, which can die in about two days, but is not harmful to human beings. There is no known vaccine against the disease.
Meatballs from China
MEANWHILE, authorities at the Port of Subic have confiscated some P600,000 worth of meat products from China, as the government tightened monitoring and quarantine procedures in all ports to prevent the entry of ASF into the country. Subic Bay Metropolitan Authority (SBMA) Chairman Wilma T. Eisma said Subic port officials seized last Wednesday a meat shipment consigned to a company in Makati City after learning it was shipped
Survey: Pinoys avoid insurance despite concerns over future By Bianca Cuaresma
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@BcuaresmaBM
ILIPINOS are still reluctant to put their money in insurance products, as citizens see them as an “added expense” rather than investment tools to secure their future goals, a recent study showed. In a nationwide study conducted by Kantar Milward Brown as commissioned by Sun Life Financial Philippines, results of a survey involving 1,200 respondents indicated that only 39 percent actually invested their money in order to fund goals. Asked why they are not keen on availing themselves of life insurance or mutual fund products, 44 percent of the respondents said these products are only added expenses to their day-to-day budget. It’s not like Filipinos are not worried about their future. The survey showed that 68 percent of Filipinos were concerned about saving for emergencies. Some 62 percent were also keen on
securing their family’s future, while 57 percent want to save up on retirement. However, most of the respondents said they still rely on traditional means of handling their finances. In particular, 62 percent of them said they are managing their own finances to achieve their financial goals, while 54 percent said their strategy is to spend only on things planned. Only 39 percent are looking to the wealth-creation direction and said they are investing to fund their goals.
Sun Life unfazed
DESPITE these discouraging figures, Sun Life Financial Philippines President Alex Narciso said the company will expand this year its consumer base and tap more financial consumers to invest in insurance products. “We have quite a number of market research because we really want to find out what is really top of mind for our potential clients so we are able to address them,” he said. Among their strategies, Narciso said, is to continue expanding the number of their finan-
INTERTROPICAL CONVERGENCE ZONE AFFECTING PALAWAN, VISAYAS AND MINDANAO as of 4:00 pm - June 4, 2019
cial advisors, as well as their productivity. As of end-2018, he said Sun Life Financial Philippines had 11,000 financial advisors. The company has set its sights on growing this to 17,000 this year. Narciso also said Sun Life is launching digital tools for their advisers for easier access to their materials. The company is also keen on offering this year more products that will “respond to and address the needs of Filipinos.” Among their latest projects was their teamup with the social navigation application Waze in their “Brighter Drive, Brighter Life” initiative to promote road-safety awareness among motorists. The initiative is expected to alert Waze users to accident-prone areas and remind them to secure a digital life insurance via Lazada, an online market place. The company also announced the renewal of its tie-up with Fitness First, a fitness brand in Asia, to give additional club benefits and preferential rates for Sun Life clients, advisors and employees.
CDC among top 10 GOCC dividend contributors
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LARK FREEPORT—The Clark Development Corp. (CDC) was recently hailed as one of the top dividend contributors among government-owned and -controlled corporations (GOCCs) in the country. It remitted P815 million in cash to the national treasury for 2018. A statement by the Department of Finance (DOF) noted that the CDC is the only agency with local coverage on the list, with the rest having national coverage, such as the Philippine Amusement and Gaming Corp. (Pagcor), the highest contributor with P16.17 billion, followed by Philippine Deposit Insurance Corp. (PDIC) with P4.58 billion and Bangko Sentral ng Pilipinas (BSP) with P4 billion. Posting more dividends under the current administration, the CDC surpassed the Philippine Charity Sweepstakes Office (PCSO) with P744 million, PNOC Exploration Corp. with P699 million and the Philippine Economic Zone Authority (Peza) with P650-million cash remittance. Other agencies included on the list are the Philippine Ports Authority with P3.51-billion remittances, Manila International Airport Authority with P3.42 billion and National Power Corp. with P842 million. For the past three years, CDC has declared P2.016 billion in cash remittances to the National Treasury —P500 million in 2016 and P700 million in 2017, and P815 million for 2018. The remittances represent half or 50 percent of the total remittances by the state-owned firm to the National Treasury in its 25-year existence. Under Republic Act 7656 or the “Dividend Law,” GOCCs are required to declare and remit at least 50 percent of their annual net earnings to the national government. Ashley Manabat
from Guangzhou, China. “It was immediately flagged by the quarantine officer from the Department of Agriculture, and then the Bureau of Customs confiscated the shipment,” Eisma explained. She said the confiscated meat will be immediately destroyed, as recommended by the Bureau of Quarantine, with the Bureau of Animal Industry (BAI) disposing of it at the expense of the consignee. Eisma said the Port of Subic has been on the lookout for meat products from countries hit by ASF after the government called for strict monitoring in all ports of entry. According to Jerome Martinez, manager of the SBMA Seaport Department, the meat products from China were shipped in a refrigerated van aboard MV Hansa Altenburg, a container ship that arrived in Subic on May 27. The container van was declared to contain 2,385 packages of “food
items” with a dutiable value of P591,817.90. The first layer of the food items consisted of boxes of tofu, but beneath this first layer were all meat products. Martinez said the confiscated meat will be injected with chemicals and buried underground. China is among the 16 countries on the watch list of areas affected by the ASF, which the World Organization for Animal Health (OIE) has declared to be a highly contagious hemorrhagic viral disease affecting domestic and wild pigs. Last week, the Food and Drug Administration (FDA) ordered the recall and seizure of imported pork meat products from countries suspected to be affected by the ASF virus. These included China, Hungary, Latvia, Poland, Romania, Russia, Ukraine, Vietnam, Zambia, South Africa, Czech Republic, Bulgaria, Cambodia, Mongolia, Moldova and Belgium.
2 PHILIPPINE EAGLES FLY TO SINGAPORE
The PAL Cargo Team carefully loads the two Philippine eagles—Geothermica and Sambisig (inset photo)—on flight PR 507 bound for Singapore. PHOTO COURTESY OF PAL
By Recto Mercene @rectomercene
& Jonathan L. Mayuga @jonlmayuga
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HILIPPINE eagle pair Geothermica and Sambisig, the first of their species to be covered by a wildlife loan agreement for adoption by a foreign country, was finally flown to Singapore on Tuesday morning. Four-star carrier Philippine Airlines (PAL) airlifted the two eagles from Davao on board flight PR 507 as part of the agreement between the Philippines and Singapore. Environment Assistant Secretary Ricardo Calderon, together with For-
eign Affairs Assistant Secretary for Asian and Pacific Affairs Meynardo Montealegre, Philippine Eagle Foundation (PEF) Chairman Edgar Chua and PEF Executive Director Dennis Salvador led the ceremonial “sendoff” of the country’s “Ambassadors for Philippine Biodiversity Cosnervation” at the Ninoy Aquino International Airport Terminal 2. The PEF manages the Philippine Eagle Center (PEC) where both Geothermica (male) and Sambisig (female) were hatched and reared. “The flight from Manila to Singapore at exactly 9:55 a.m. via Philippine Airlines went on as scheduled,” Calderon, the concurrent director See “Eagles,” A3
Neda: PHL needs help to achieve 3 UN goals By Cai U. Ordinario
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@caiordinario
EETING the Sustainable Development Goals (SDGs) will require the help of the country’s partners, including international institutions, according to the National Economic and Development Authority (Neda). Socioeconomic Planning Secretary Ernesto M. Pernia said this is particularly the case for SDGs Goal No. 4 on Quality Education; Goal No. 8, Decent Work and Economic
Growth; and Goal No. 10, Reduced Inequalities. “The massive resource requirements to meet the ambitious agenda of the SDGs require inclusion and engagement of all stakeholders, and we acknowledge that meeting our development commitments requires nothing short of a wholeof-society approach and determination,” Pernia said in a statement before the United Nations Economic and Social Commission for Asia and the Pacific (Unescap). “Partnerships are vital and See “Neda,” A3
Editor: Efleda P. Campos
Companies BusinessMirror
Wednesday, June 5, 2019
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Meralco to finish 1,000-MW RE projects in next 5-7 years
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By Lenie Lectura
@llectura
HE power-generation arm of the Manila Electric Co. (Meralco) is pushing for the completion of 1,000 megawatts (MW) of renewableenergy (RE) projects in the next five to seven years. “As we celebrate World Environment Day, we announce that we are developing 1,000 MW of RE projects in the next five years to seven years, joining the inexorable shift to renewable energy and the adoption of sustainable practices in everything we do,” Meralco President and CEO Atty. Ray C. Espinosa said. The newly appointed top Meral-
PA Properties launches model unit for new Laguna housing project
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A Alvarez Properties and Development Corp. (PA Properties) has unveiled a new housing model unit called Yasmin for its latest residential project, Saint Joseph Springfield, located in Barangays Burol and Laguerta in Laguna. The 3-hectare estate is envisioned to become an exclusive and close-knit community, with an inventory of 419 housing units only. Priced at P1.42 million, each unit will have a 42-squaremeter (sq.m.) floor area (two levels) and a 36sq.m. lot area. Saint Joseph Homes Calamba is ideal for couples starting a family, empty nesters, retirees and young mobile professionals who want to leverage on its strategic location accessible to South Luzon Expressway and nearby commercial and industrial hubs. This horizontal development project was inaugurated in January. It is the new addition to the 40 affordable housing communities developed by PA Properties. The real-estate firm is among the biggest developers of low- to medium-cost housing communities in the country for over two decades, with a total of 19,000 residential units in Laguna, Cavite, Batangas, Bulacan, Pampanga and Metro Manila. The lack of housing in the country, expected to reach 10 million units in the socialized, economic and low-cost housing segments by 2030, is among the reasons the company continues to build affordable homes for Filipinos. PA Properties Chairman Romarico Alvarez said the rise of informal settlements that lack basic infrastructure and sustainable service has grown significantly in many towns and cities in the country. He said the government needs to develop the synergies and participation of all stakeholders, including the private sector, employers, citizens and development partners in providing decent homes to the people. The Laguna-based property developer is well-positioned to capitalize on the huge housing backlog via its five-year development plans for 25 future projects estimated to build 15,000 more housing units and generate up to P25 billion in revenues. From its 137 hectares of land bank, the company has 16 more housing communities under construction. PA Properties signed a partnership deal in 2017 with Japanese developer Hankyu Hanshin Properties Corp. to develop three township projects, namely the 11-hectare Idesia 1 in Dasmarinas, Cavite; the 26-hectare residential and commercial project in Dasmariñas, Cavite; and 17-hectare housing and commercial project in Lipa, Batangas. These 54-hectare combined projects could generate P11.25 billion in revenues. The developer has a capitalization of P3.3 billion as of October 2018. Roderick L. Abad
co official said the utility firm is committed to developing largescale RE projects that can deliver competitive electricity for its customers, without any requirement for subsidy or support, while keeping environmental stewardship and sustainability as top priorities in our business. As part of this plan, MGen Re-
newable Energy Inc. (MGreen) was established to serve as the platform for the strategic push to develop RE projects, primarily solar, wind and run-of-river hydro. The new company aims to bring in additional supply to support the Philippines’s growth momentum and help ensure availability of green and cost-competitive power supply in the coming years. MGreen is a wholly owned subsidiary of Meralco PowerGen Corp. (MGen), the power- generation arm of Meralco. “We are working on several RE prospects, and we recognize the significant reduction in the development cost, particularly for large-scale solar and wind over the past years. Notwithstanding the ongoing requirement for new reliable baseload generation to support the fast-growing Philippine economy, we believe
the time is right to focus on building our green-energy capacity and we intend to be a key player in this expanding sector,” MGen President and CEO Rogelio L. Singson said. “MGen, through MGreen, will continue working on the realization of our project opportunities and will work in partnership with established developers to maximize our growth potential,” he added. The plan is aligned with MGen’s growth aspirations, which are focused on advancing RE prospects and utilization of high efficiency, low emission (Hele) technology for baseload power plants. “We will continue to work with the energy industry, [the] government and other stakeholders to serve the country’s energy needs while ever mindful of our greater responsibility to society and the planet,” Singson said.
AC Energy, AMI Renewables make 2 solar projects in Vietnam
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C Energy Inc. and AMI Renewables have completed two solar-power projects in Vietnam with a combined capacity of 80 megawatts (MW). The 50-MW Khanh Hoa solar plant was inaugurated on May 30, while the switch-on ceremony of the 30-MW Dak Lak facility was held on April 25. The total cost of the two projects stood at $ 83 million, with AC Energy participating with at least 50-percent economic share. Both events were hosted by AC Energy and AMI Renewables, with key government officials and project partners in attendance. The solar plants, completed in time for the Vietnam government’s feed-in tariff deadline of June 2019, are located in the provinces of Khanh Hoa and Dak Lak. Both facilities are expected to qualify for the Vietnam government’s feed-in-tariff. “These projects are a testament
to our long-term commitment to the economic and social development of the provinces of Khanh Hoa and Dak Lak, “AC Energy Senior Vice President Miguel de Jesus said. The commissioning of the Khanh Hoa and Dak Lak solar plants comes only weeks after AC Energy inaugurated the 330-MW solar farm in Ninh Thuan consisting of three solar plants, its maiden greenfield project in the region. The Ninh Thuan solar project is a joint venture between AC Energy and the BIM Group and is one of the largest solar farms in Southeast Asia. “This reaffirms AC Energy’s commitment to shore up our presence in the region, particularly in Vietnam’s growing power sector. We believe this is a critical part of the country’s progress,” AC Energy COO for International Patrice Clausse said. In 2017, AC Energy and AMI Re-
newables formed a platform company named AMI/AC Renewables Joint Stock Co. to build renewable- energy plants in Vietnam. The partners are in advanced discussions for the development of the Quang Binh wind project, which has a potential of 200 MW to 300 MW. “The successful completion of the Khanh Hoa and Dak Lak solar projects speaks to our strong partnership with AC Energy. Together, we hope to grow our renewables to 1 gigawatt [GW] by 2025 in Vietnam,” CEO of AMI AC Renewables Joint Stock Co. Nguyen Nam Thang said. With five new solar plants in its portfolio, AC Energy will continue to be an active participant in Vietnam’s renewable-energy sector as it aims to reach its target of 5 GW of renewable-energy capacity by 2025, with renewables contributing at least 50 percent of total energy output. Lenie Lectura
Hotel Stotsenberg opens Fortunegate Casino in Clark By Ashley Manabat Correspondent
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LARK FREEPORT—Fortunegate Casino is slated to open this month. Thus said General Manager Ed Dacanay during a press conference at Hotel Stotsenberg here on Friday. Dacanay said the casino will have 28 gaming tables, 134 slot machines and a money wheel, as well as some VIP rooms, an entertainment space, a bar and other nongaming facilities. With Fortunegate Casino’s opening this
month, this free port is now fast becoming the entertainment city and gaming capital of the region because of its accessibility to the Clark International Airport, Dacanay noted. Hotel Stotsenberg was established in 2004 and operates Casablanca Casino. The hotel, which gained popularity as a favorite venue for MICE as well as weddings, birthdays and annual events of different organizations and companies, was acquired by Frontier Capital Group (FCG) in February 2016. The Australian-listed FCG first revealed its plans to resume casino operations at Hotel Stotsenberg after confirming it has
the necessary funds to settle a P225-million ($4.4 million) escrow payment for the Philippine Amusement and Gaming Corp. (Pagcor). After completing the takeover of Hotel Stotsenberg for a cost of AU$26 million ($18.1 million), FCG was forced to close casino operations on in 2017 after Pagcor ordered the escrow payment. Fortunegate Casino will be the fifth casino in this free port after Widus, Royce, Fontana and Mimosa casinos. Pokhara Junket Casino at Xenia Hotel was closed after incurring damage due to the April 22 6.1-magnitude earthquake which jolted Luzon.
Facebook may be ordered to block users’ offensive posts globally
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ACEBOOK Inc. may be ordered to remove offensive content posted by users in the European Union and then also hunt for similar posts anywhere in the world, an adviser to the bloc’s top court said. Since the EU’s law for digital services and electronic commerce “does not regulate the territorial scope of an obligation to remove information disseminated via a social network platform, it does not preclude a host provider from being ordered to remove such information worldwide,” Advocate General Maciej Szpunar of the EU Court of Justice said Tuesday in a nonbinding opinion. Scrutiny of Facebook in the EU has intensified since the bloc introduced strict
new privacy rules a year ago, giving data regulators for the first time real teeth and the power to fine companies as much as 4 percent of annual sales for the most serious violations. Antitrust regulators have also been probing the social network over how it tracks users’ Internet browsing. The ruling by the EU court, expected in a few months, will help clarify to what extent social-media companies such as Facebook must police posts by users worldwide. The case seeks to establish how far-reaching EU law, or the powers of the bloc’s courts go, in protecting EU users of online socialmedia companies that can be accessed from around the globe.
The same advocate general at the EU’s top court in January sided with Google in its fight against having to apply a so-called right to be forgotten globally, in a case that seeks to draw the line between privacy and freedom of speech. The EU court follows the advice of its advocates general in a majority of cases. The underlying dispute in the Facebook case concerns Eva Glawischnig-Piesczek, a former Green member of the European Parliament from Austria, who was the subject of a number of offensive posts on a Facebook user’s account. She sought an order against the company to block any further publications of pictures of her if the text alongside them included similarly offensive content. Bloomberg News
LRMC completes repair of LRT 1 infra By Lorenz S. Marasigan @lorenzmarasigan
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AILWAY developer and operator Light Rail Manila Corp. (LRMC) has completed the structural restoration of the parapets, river bridges and faulty concrete at the Light Rail Transit (LRT) Line 1, a ranking company official said on Tuesday. Juan F. Alfonso, the company’s president, said his group was successful at restoring the portions of the facility that have been “battling inclement weather and the myriad vibrations caused by up to 554 trips a day” over the course of 35 years. “LRT 1 has been here for 35 years. The project ensures that it will be here for the next 30. The project completion strengthens our confidence in ensuring passenger safety,” he said. Initiated in 2018 through a
P980-million investment, the structural-restoration project also involved repairs on the concrete surfaces of the parapets, sandblasting to remove corrosion, and repainting. “We also installed new collision dampers at certain pile caps to protect bridges from ship collision,” Alfonso noted. He added that through the initiative, the facility’s viaduct now has a continuous row of noise barriers running along its 20-kilometer length, helping reduce the noise generated by trains that affect nearby schools, apartments and offices. The collision bumper of river bridges near the Pasig River was also replaced to protect the viaduct beam from collision with barge or f lat-bottomed vessel transporting freight or passengers along the river.
Online payment company taps data to expand user base By Manuel T. Cayon Mindanao Bureau Chief
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AVAO CITY—Online payment company GCash said it would tap more extensively into cyber data to entice more users to try cashless transactions. The announcement came as GCash disclosed of “exponential user-base growth” during the last two years, a lot of it driven by the wider use of cyber data to ease financial transactions and boost cashless payments. It said GCash transactions were tapped by 1.8 million users in 2016 to the current 20 million users. It said it experienced the massive growth in user base in recent years, “thanks to its strategic use of data” and using popular social media to increase awareness of its presence and the list of transactions that could be done through the use of mobile phones. Chris Manguera, chief marketing officer and app product head of Mynt, which operates GCash, said in a statement that the common application of GCash was doing payments on small transactions such as mobile loading and sending money. “Apparently, GCash’s user base was segmented in three ways. The first included people using GCash for peer-to-peer money transfers, like splitting a restaurant bill or paying someone back for a movie ticket purchased online,” he said. He added the second comprised of users making domestic remittances, like an employer sending a kasambahay [house help] money or a city breadwinner remitting contributions to their relatives in the provinces. The third involved merchants accepting
GCash as payment from multiple customers. Manguera said such market insights opened the way for product enhancements and better targeting. “Start with something simple, like a mobile wallet. Start with something obvious that people are currently doing, like payments, and then offer more sophisticated, more complex services that are usually not accessible to the users.” To increase awareness of the existence of such cashless and faster methods online, the company searched existing platform into which GCash could embed them to at least two of them, Messenger and Facebook. “Messenger with the right market was easily accessible via mobile data, and happened to be looking for mobile financial services [MFS] partner. In six months, GCash grew its Messenger user base from zero to 2 million,” Manguera told a recent Manila forum organized by Mynt. He said GCash’s integration into Facebook’s Messenger “was born out of a surprising individual interview and the more extensive user research that followed.” “When I asked an interviewee to download GCash, he checked how much memory the app would take. We realized that because Filipinos had limited storage space on their phones, we might be missing out on users only because they couldn’t install our app,” he said. Manguera said the “stagnating growth prompted him to identify trends in how users were sending and receiving money via Gcash.” “There were three major patterns—one user sending to many users; one user sending to another; and many users sending to a single receiver,” he said.
Nlex to spend ₧150M to repair bridges and roads in SCTEx
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LE X Cor p., the op erator of the SubicClark-Tarlac Expressway (SCTEx), is investing P150 million to repair a number of its bridges and pave the roads in select areas of the thoroughfare, a company official said on Tuesday. Luigi L. Bautista, the company’s president, said restoration and enhancement works for the slope protection of Pinulot, Loakan and Cui river bridges in Dinalupihan, Bataan are underway. This, he said, “will help prevent structures from scouring and erosion, especially during the rainy season, thus improving the safety of motorists and locals in the said areas.” For the pavement repair program, which covers 38 lane kilometers of the SCTEx, the com-
pany is almost wrapping up light patching and asphalt overlay for the Tarlac-Tipo-Subic Freeport Expressway areas. “These are part of our efforts to maintain and make our roads safe for all weather conditions, giving the public comfortable travel and helping facilitate efficient mobility of goods and services,” Bautista said. Since the integration of the SCTEx to the North Luzon Expressway (Nlex) in 2016, the company has been modernizing and bringing all various features of Nlex to SCTEx, such as smooth pavements, electronic toll collection and upto-date traffic systems. Nlex Corp. is a unit of Metro Pacific Investments Corp., the largest tollways operator in the Philippines. Lorenz S. Marasigan
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Companies BusinessMirror
Wednesday, June 5, 2019
PSE STOCK QUOTATIONS
June 4, 2019
Net Foreign Stocks Bid Ask Open High Low Close Volume Value Trade (Peso) Buy (Sell) FINANCIALS ASIA UNITED BDO UNIBANK BANK PH ISLANDS CHINABANK EAST WEST BANK METROBANK PB BANK PHIL NATL BANK PSBANK RCBC SECURITY BANK UNION BANK BDO LEASING COL FINANCIAL FERRONOUX HLDG MEDCO HLDG MANULIFE NTL REINSURANCE PHIL STOCK EXCH SUN LIFE VANTAGE
58 137.5 80 26.75 11.62 70.6 13.2 57.7 57.15 26.75 170 59.9 2.24 18.74 4.45 0.47 765.5 0.99 183.2 1755 1.13
59.6 138 80.3 26.8 11.66 70.95 13.74 57.9 57.5 26.8 170.1 60 2.25 18.76 4.49 0.48 780 1 184.9 1820 1.22
59.7 138 82 26.75 11.7 72.7 13.2 58.25 57.1 26.7 175 59.9 2.24 18.78 4.42 0.49 779 0.99 184.9 1755 1.13
59.7 139.8 83.3 26.8 11.78 72.95 13.74 58.55 57.5 26.75 175 60.7 2.24 18.78 4.45 0.495 779 1 184.9 1755 1.13
58 135.5 80 26.7 11.62 70.6 13.2 57.3 57.1 26.6 170 59.9 2.24 18.74 4.42 0.47 765 0.99 184.9 1755 1.13
58 137.5 80 26.8 11.62 70.6 13.74 57.9 57.5 26.75 170.1 60 2.24 18.76 4.45 0.495 765 1 184.9 1755 1.13
34110 1422550 2366410 117600 206100 2394850 34300 115150 3290 22500 441980 14320 15000 1600 42000 410000 120 12000 100 30 3000
1983457.5 196252124 192123111 3148520 2413560 170716234.5 457110 6671728.5 188543 601790 75941185 860003 33600 30018 186790 200600 92330 11890 18490 52650 3390
INDUSTRIAL ALSONS CONS ABOITIZ POWER BASIC ENERGY FIRST GEN FIRST PHIL HLDG MERALCO MANILA WATER PETRON PETROENERGY PHINMA ENERGY PHX PETROLEUM PILIPINAS SHELL SPC POWER AGRINURTURE CNTRL AZUCARERA CENTURY FOOD DEL MONTE DNL INDUS EMPERADOR SMC FOODANDBEV ALLIANCE SELECT GINEBRA JOLLIBEE MACAY HLDG MAXS GROUP PEPSI COLA SHAKEYS PIZZA ROXAS AND CO RFM CORP SWIFT FOODS UNIV ROBINA VITARICH CEMEX HLDG DAVINCI CAPITAL EAGLE CEMENT EEI CORP HOLCIM MEGAWIDE PHINMA TKC METALS VULCAN INDL CHEMPHIL CROWN ASIA LMG CHEMICALS PRYCE CORP CONCEPCION GREENERGY INTEGRATED MICR IONICS PANASONIC SFA SEMICON CIRTEK HLDG
1.38 35.8 0.29 23.5 77 390 23.5 6.08 4.64 2.46 12 41.95 6.5 14.42 16.4 14.5 5.65 10.1 7.63 108 0.73 42.55 277 9.6 12.54 1.23 14.14 1.54 4.58 0.127 167.9 1.28 2.47 5.31 15.94 10.3 13.64 20.15 9.11 1.44 1.28 110.1 2.03 4.2 4.82 43.9 2.55 10.44 1.67 5.43 1.2 25.2
ABACORE CAPITAL ASIABEST GROUP AYALA CORP ABOITIZ EQUITY ALLIANCE GLOBAL AYALA LAND LOG ANSCOR ANGLO PHIL HLDG ATN HLDG A ATN HLDG B COSCO CAPITAL DMCI HLDG FILINVEST DEV GT CAPITAL HOUSE OF INV JG SUMMIT LODESTAR LOPEZ HLDG LT GROUP MABUHAY HLDG MJC INVESTMENTS METRO PAC INV PACIFICA PRIME MEDIA SOLID GROUP SM INVESTMENTS SAN MIGUEL CORP SOC RESOURCES TOP FRONTIER WELLEX INDUS ZEUS HLDG
0.57 13.86 919 54.5 15.8 3.62 6.7 0.79 1.28 1.28 6.83 10.24 13.84 858 6.21 62.5 0.475 4.64 15.08 0.52 2.76 4.48 0.039 1.08 1.36 948 185 0.94 268 0.233 0.29
1.4 36 0.295 23.55 77.2 390.8 23.55 6.1 4.65 2.47 12.2 42.05 6.52 14.46 16.94 14.8 5.7 10.12 7.64 108.9 0.75 42.8 277.4 9.7 12.56 1.24 14.18 1.55 5 0.132 168 1.29 2.48 5.8 16 10.36 13.66 20.4 9.39 1.45 1.29 117.9 2.04 4.25 4.97 44.75 2.56 10.56 1.69 5.7 1.21 25.5
1.4 36.3 0.3 23 77.55 389.2 23.3 6.12 4.84 2.38 12.3 42.55 6.63 14.5 16.2 14.84 5.7 10.3 7.69 108.8 0.71 42.5 287 9.78 12.62 1.23 13.98 1.54 5.01 0.127 171 1.3 2.54 5.35 16 10.32 13.74 20.55 9.11 1.42 1.32 110.1 2.03 4.2 4.9 44.8 2.43 10.58 1.7 5.4 1.19 25.5
1.4 37.25 0.305 23.8 78.1 390.8 24.25 6.16 4.84 2.5 12.3 42.65 6.63 14.5 16.92 14.84 5.78 10.3 7.69 108.9 0.76 43 287 9.92 12.62 1.25 14.2 1.55 5.1 0.127 171.3 1.3 2.55 5.45 16.12 10.52 13.74 20.6 9.39 1.45 1.35 117.9 2.04 4.2 4.9 44.8 2.55 10.62 1.7 5.4 1.21 25.6
1.38 35.8 0.285 22.95 77 387 23 6.07 4.65 2.35 12.06 41.8 6.5 14.4 16.2 14.5 5.7 10.12 7.54 107 0.71 42.5 277 9.6 12.54 1.23 13.74 1.54 5 0.127 168 1.27 2.46 5.35 15.94 10.3 13.6 20.1 9.11 1.39 1.27 110.1 2.03 4.2 4.9 43.9 2.42 10.5 1.66 5.4 1.16 25.1
1.38 35.8 0.295 23.5 77 390.8 23.5 6.08 4.65 2.47 12.28 41.95 6.52 14.46 16.4 14.5 5.7 10.12 7.64 108.9 0.75 42.55 277 9.6 12.56 1.24 14.18 1.54 5 0.127 168 1.29 2.47 5.45 15.94 10.3 13.64 20.15 9.39 1.44 1.29 117.9 2.03 4.2 4.9 44.75 2.55 10.56 1.7 5.4 1.21 25.5
51000 597400 8180000 3404300 37980 268030 8888500 945200 623000 43366000 18800 183900 158400 713700 6000 556200 26700 1144600 245900 64200 3462000 148200 685690 10500 529400 2989000 1379300 302000 262100 100000 909920 2773000 7687000 40000 150700 1091300 204000 903200 308600 4142000 9312000 9890 341000 1000 2000 500 14022000 281200 116000 4300 205000 158300
71120 21637780 2402450 80040220 2936455 104495184 205791140 5766355 2944670 106635510 227580 7759805 1033441 10319918 98242 8114594 153298 11675026 1873065 6934838 2559180 6309990 191130568 101930 6659070 3706180 19482098 465580 1311495 12700 153477783 3563770 19141260 216000 2410412 11342154 2782458 18234475 2897054 5890750 12248400 1099809 692420 4200 9800 22215 34934040 2963984 195150 23220 243070 4027100
206981 21440985 -8224057 886385 -725654 -105276335 1497269.5 -95410.5 -2640 -30323642 381562 1861805 177000 43575685 -990957.5 54220576 15892650 1801360 -668750 -2024930 -484582 -427344 -2017652 56470 -1804475 -27080 548275 -76663304 -1373644 -2234480 3984854 -1215000 -39079646 56060 1101830 -571548 -431046 1313196 -12509230 -284040 -6450 8780 -2770560 1737794.0003 -
HOLDING & FRIMS 0.58 13.9 921 54.8 15.9 3.65 6.85 0.8 1.29 1.29 6.88 10.4 14 869.5 6.31 62.55 0.5 4.65 15.1 0.56 2.98 4.49 0.04 1.1 1.37 957 186 0.95 269 0.237 0.295
0.6 14.22 931 56.7 15.98 3.73 6.57 0.78 1.26 1.27 7.03 10.62 13.8 870 6.21 63.65 0.48 4.65 15.2 0.53 2.76 4.6 0.04 1.08 1.39 965 186.5 0.92 268 0.238 0.3
0.6 14.56 931 56.7 15.98 3.74 6.85 0.82 1.3 1.29 7.03 10.62 14 873.5 6.21 63.9 0.51 4.65 15.2 0.53 2.76 4.6 0.04 1.08 1.39 970 186.8 1.02 269 0.238 0.3
0.58 13.8 916 54.1 15.5 3.59 6.57 0.77 1.26 1.26 6.82 10.2 13.8 855 6.2 62 0.48 4.62 15.08 0.52 2.76 4.47 0.039 1.08 1.37 947 183 0.91 267 0.234 0.29
0.58 13.86 919 54.5 15.9 3.65 6.7 0.79 1.28 1.28 6.83 10.24 14 858 6.2 62.5 0.5 4.65 15.08 0.52 2.76 4.48 0.039 1.08 1.37 957 185 0.94 269 0.234 0.3
15340000 309300 288530 1025230 3761400 7916000 11600 1761000 4379000 531000 922400 2961300 223900 73870 45200 1189410 49000 5351000 1060800 4000 1000 25267000 1200000 19000 69000 176810 383140 7261000 690 280000 2650000
8939060 284650 4341194 265408665 -21615710 56065254 -8693352 59257116 11696190 29039090 272160 77753 70903 1399410 -79120 5608460 681570 141750 6375122 -15359 30624566 -6802618 3130084 63422240 -21011410 280690 74299029 -29616949.5 24430 24756820 -3540070 16015976 -6777632 2090 2760 113922100 28061990.0001 47200 20520 94850 169405145 59640000 70863891 -15115867 7101960 -61200 185090 -32088 65560 787100 -125900
PROPERTY
ARTHALAND CORP 0.78 0.79 0.78 0.79 0.77 0.79 195000 152290 AYALA LAND 50.45 50.5 51.7 51.95 50.2 50.5 13833060 701347888.5 -54701346.5 ARANETA PROP 2.04 2.09 2.05 2.11 2 2.1 729000 1514820 BELLE CORP 2.33 2.34 2.34 2.35 2.32 2.34 404000 945820 -39650 A BROWN 0.79 0.8 0.79 0.8 0.79 0.79 863000 682050 CITYLAND DEVT 0.95 0.97 0.95 0.97 0.94 0.95 166000 158860 CROWN EQUITIES 0.226 0.228 0.227 0.227 0.226 0.226 430000 97240 CEBU HLDG 6.14 6.2 6.2 6.2 6.14 6.14 59500 365576 -358756 CEB LANDMASTERS 4.82 4.84 4.77 4.85 4.69 4.82 1411000 6712460 607360 CENTURY PROP 0.61 0.62 0.6 0.64 0.6 0.61 66422000 41059510 392810 DOUBLEDRAGON 25.8 25.9 26 26 25.4 25.9 465000 11954860 5115745 DM WENCESLAO 9.94 9.96 10.06 10.06 9.86 9.94 218400 2164916 -19114 EMPIRE EAST 0.47 0.475 0.475 0.475 0.475 0.475 2530000 1201750 -1159000 FILINVEST LAND 1.74 1.75 1.76 1.77 1.71 1.75 35210000 61457040 5518660 GLOBAL ESTATE 1.42 1.43 1.46 1.46 1.43 1.43 1020000 1469590 8990 HLDG 16.2 16.28 16 16.4 16 16.28 1197100 19273280 155427.9999 PHIL INFRADEV 1.89 1.9 1.83 1.92 1.83 1.89 7120000 13428590 -891140 CITY AND LAND 0.81 0.84 0.82 0.82 0.82 0.82 131000 107420 12300 MEGAWORLD 6.09 6.11 6.06 6.17 5.98 6.11 28659800 174134868 96669203 MRC ALLIED 0.31 0.315 0.315 0.315 0.31 0.31 6520000 2036050 157500 PHIL ESTATES 0.465 0.48 0.465 0.465 0.465 0.465 120000 55800 ROBINSONS LAND 26.55 26.75 27.05 27.1 26.3 26.55 3304500 88414690 8688155 PHIL REALTY 0.41 0.42 0.41 0.41 0.41 0.41 80000 32800 ROCKWELL 2.06 2.07 2.05 2.13 2.05 2.07 298000 624490 -25440 SHANG PROP 2.95 3 2.99 3 2.95 3 321000 954000 48000 STA LUCIA LAND 1.9 1.94 1.91 1.95 1.9 1.9 289000 551120 -9550 SM PRIME HLDG 39 39.4 40.2 40.2 39 39 5390000 211865945 -78206520 STARMALLS 6.35 6.37 6.41 6.41 6.32 6.37 35300 224145 SUNTRUST HOME 0.74 0.78 0.74 0.74 0.74 0.74 8000 5920 VISTA LAND 7.09 7.15 7.17 7.17 7.09 7.15 3003500 21434782 -2010995 SERVICES ABS CBN 18.34 18.36 18.38 18.4 18.34 18.36 201300 3699562 GMA NETWORK 5.39 5.4 5.39 5.4 5.39 5.39 112200 605225 MANILA BULLETIN 0.56 0.57 0.58 0.58 0.56 0.57 377000 213190 GLOBE TELECOM 2274 2294 2268 2298 2202 2294 98100 224141600 159828330 PLDT 1243 1244 1263 1278 1240 1244 840035 1053204110 -437809760 APOLLO GLOBAL 0.044 0.045 0.045 0.045 0.044 0.044 1700000 76300 DFNN INC 5.87 5.88 5.88 6 5.88 5.88 99200 583947 -431643 IMPERIAL 1.76 1.9 1.75 1.76 1.75 1.76 3000 5260 ISLAND INFO 0.121 0.125 0.126 0.126 0.121 0.121 720000 87920 ISM COMM 6.06 6.07 6.17 6.2 6.06 6.07 2837300 17345174 1230320 NOW CORP 2.74 2.75 2.7 2.83 2.68 2.74 14751000 40664070 116980 TRANSPACIFIC BR 0.36 0.365 0.365 0.365 0.355 0.36 6160000 2215000 PHILWEB 3.3 3.31 3.46 3.46 3.28 3.31 3486000 11631140 -1903050 2GO GROUP 11.46 11.5 11.42 11.6 11.2 11.56 53700 612206 3392 ASIAN TERMINALS 21.1 21.4 21.45 21.45 20.6 21 5300 111600 48300 CHELSEA 6.59 6.6 6.65 6.65 6.6 6.6 401300 2652956 -66345 CEBU AIR 91.3 91.5 92.1 92.1 91.25 91.3 166130 15233434 -2364930.5 INTL CONTAINER 134.7 134.9 134.9 135.8 134 134.9 2597920 350432312 5522707 LORENZO SHIPPNG 0.85 0.86 0.82 0.88 0.8 0.86 856000 720000 -18480 MACROASIA 21 21.2 21.2 21.35 20.6 21.2 291200 6111730 1556860 METROALLIANCE A 1.54 1.71 1.6 1.6 1.54 1.58 11000 17210 PAL HLDG 9.4 9.55 9.83 9.83 9.4 9.4 70100 667639 9500 HARBOR STAR 2.23 2.24 2.3 2.3 2.23 2.24 1300000 2933250 24859.9999 ACESITE HOTEL 1.31 1.33 1.31 1.38 1.31 1.33 38000 50270 BOULEVARD HLDG 0.058 0.06 0.059 0.06 0.058 0.06 14300000 840880 DISCOVERY WORLD 2.04 2.15 2.2 2.2 2.18 2.18 6000 13100 WATERFRONT 0.69 0.7 0.7 0.71 0.68 0.69 2563000 1773910 CENTRO ESCOLAR 7.05 7.28 7.01 7.39 7 7 13300 93369 27330 IPEOPLE 10.2 10.5 10.16 10.5 10.16 10.5 1400 14360 STI HLDG 0.71 0.72 0.67 0.74 0.67 0.71 18040000 12794030 1266030 BERJAYA 2.78 2.81 2.9 2.94 2.71 2.78 2045000 5682520 BLOOMBERRY 11.9 11.92 11.96 12 11.74 11.92 2846800 33940398 12679028 PACIFIC ONLINE 3.14 3.2 3.24 3.24 3.11 3.14 55000 173170 LEISURE AND RES 4.24 4.28 4.26 4.37 4.24 4.28 1154000 4947540 -712340 MANILA JOCKEY 3.68 3.8 3.69 3.69 3.68 3.68 22000 81160 PH RESORTS GRP 4.8 4.85 4.8 4.99 4.71 4.85 97000 473170 PREMIUM LEISURE 0.77 0.78 0.8 0.81 0.77 0.77 6745000 5302500 384400 PHIL RACING 8.12 9.49 8.11 8.11 8.11 8.11 1000 8110 TRAVELLERS 5.24 5.25 5.3 5.3 5.2 5.25 1123000 5873386 -3157076 METRO RETAIL 2.68 2.69 2.75 2.75 2.69 2.69 3145000 8486530 10760 PUREGOLD 44.9 45.5 45 46 44.6 44.9 837500 37675255 369145 ROBINSONS RTL 72 73.2 73.4 73.5 72 72 200450 14,530,444.5( 2,739,438.5003) PHIL SEVEN CORP 120 123.9 124 124 123 124 264910 32846610 271830 SSI GROUP 3.19 3.2 3.3 3.33 3.2 3.2 8205000 26677570 -4669050 WILCON DEPOT 17 17.06 16.96 17.14 16.9 17 2874500 49026880 7976168 APC GROUP 0.435 0.44 0.435 0.435 0.425 0.435 1460000 634450 EASYCALL 10.32 10.5 10.5 10.66 10.3 10.5 63900 669966 GOLDEN BRIA 405.2 415 414 415 405 415 1780 737890 IPM HLDG 5.5 6 5.7 5.7 5.7 5.7 20000 114000 PRMIERE HORIZON 0.82 0.84 0.81 0.85 0.8 0.82 24911000 20571690 -1158650 SBS PHIL CORP 9.42 9.5 9.38 9.42 9.32 9.42 44100 412384 MINING & OIL ATOK 10.72 12.3 12.38 12.38 12.38 12.38 500 6190 APEX MINING 1.16 1.17 1.22 1.25 1.1 1.16 3063000 3634990 -527430 ABRA MINING 0.0018 0.002 0.0019 0.0019 0.0018 0.0019 13000000 23900 BENGUET A 1.12 1.18 1.18 1.18 1.18 1.18 5000 5900 BENGUET B 1.12 1.19 1.12 1.12 1.12 1.12 10000 11200 COAL ASIA HLDG 0.285 0.29 0.285 0.285 0.285 0.285 300000 85500 CENTURY PEAK 2.8 2.86 2.86 2.91 2.8 2.8 640000 1802410 -531899.9998 DIZON MINES 7.71 7.79 7.82 7.82 7.71 7.71 20400 157760 FERRONICKEL 1.47 1.48 1.54 1.54 1.45 1.48 13056000 19513460 -1460900 GEOGRACE 0.228 0.242 0.243 0.247 0.227 0.243 330000 76520 LEPANTO A 0.108 0.109 0.111 0.111 0.109 0.109 1730000 189430 LEPANTO B 0.109 0.115 0.11 0.115 0.11 0.115 690000 77710 -49120 MANILA MINING A 0.0075 0.0079 0.0075 0.0075 0.0075 0.0075 1000000 7500 MARCVENTURES 1.03 1.06 1.02 1.06 1.02 1.06 159000 168480 NIHAO 0.96 1 0.97 1 0.97 1 24000 23310 NICKEL ASIA 2.27 2.29 2.29 2.29 2.23 2.27 932000 2106860 -381940 OMICO CORP 0.55 0.56 0.56 0.56 0.55 0.55 16000 8900 ORNTL PENINSULA 0.88 0.89 0.88 0.89 0.88 0.88 35000 30890 PX MINING 3.22 3.24 3.3 3.31 3.22 3.22 1069000 3481660 -164970 SEMIRARA MINING 21.5 21.95 22.25 22.25 21.5 21.5 870700 19034710 -9667860 ORNTL PETROL A 0.011 0.012 0.012 0.012 0.012 0.012 1500000 18000 PHILODRILL 0.01 0.011 0.011 0.011 0.01 0.01 3800000 39800 PHINMA PETRO 3.64 3.71 3.6 3.71 3.53 3.71 300000 1086850 PXP ENERGY 8.28 8.29 9.02 9.02 8.18 8.29 4589800 38705457 554608 PREFFERED AC PREF B1 476 480 484.8 484.8 484.8 484.8 20 9696 AC PREF B2 487 499 499 499 499 499 10 4990 -4990 ALCO PREF B 94.15 99.9 98 98 98 98 5000 490000 DD PREF 97.5 98.4 98 98.4 97.5 98 5480 537019 SMC FB PREF 2 962.5 970 970 970 963 963 1650 1592915 28890 FGEN PREF G 104.3 104.8 104.3 104.8 104.3 104.8 450 47085 -15645 FPH PREF C 456 460 456 456 456 456 260 118560 GTCAP PREF A 889 917 914 917 914 917 60 54880 GTCAP PREF B 921 950 959 959 959 959 10 9590 LR PREF 0.99 1 1 1 1 1 20000 20000 MWIDE PREF 100.1 102.5 102.5 102.5 102.5 102.5 300 30750 -30750 PNX PREF 3B 105.5 107 106.9 106.9 106.9 106.9 100 10690 PCOR PREF 2A 985 995 995 995 995 995 20 19900 PCOR PREF 2B 990 1025 1025 1025 1025 1025 175 179375 SMC PREF 2B 75.05 75.4 75.45 75.45 75.45 75.45 1330 100348.5 SMC PREF 2C 77.5 77.95 78 78 77.5 77.5 900 70071 15500 SMC PREF 2D 72.1 73 72.1 73 72.1 73 40100 2915233 SMC PREF 2E 72.5 72.7 72.7 72.7 72 72.5 6040 435408 SMC PREF 2F 74 74.75 74.7 74.75 74.7 74.75 17260 1290085 SMC PREF 2H 73 73.85 73.3 73.3 73 73 20100 1470300 SMC PREF 2I 73 73.7 73 73 73 73 24380 1779740 -
PHIL. DEPOSITARY RECEIPTS ABS HLDG PDR GMA HLDG PDR
17.96 5.2
18 5.25
17.94 5.3
18 5.35
17.94 5.25
17.96 5.25
13400 13800
241108 72610
WARRANTS LR WARRANT
2.03
SMALL & MEDIUM ENTERPRISES ITALPINAS 4.7 XURPAS 1.01
2.05
2.04
2.08
2.03
2.03
168000
343370
-
4.75 1.03
4.79 1.01
4.81 1.03
4.7 1.01
4.7 1.01
289000 3044000
1368880 3085170
-265010
EXHANGE TRADE FUNDS FIRST METRO ETF
117
-219576 -46360
119.4
121
121
117
117
12300
1465503
63222
www.businessmirror.com.ph
SMC’s Ang scores PSALM, DOF for Ilijan power-plant ‘debts’
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By Lenie Lectura
@llectura
AN Miguel Corp. (SMC) President Ramon S. Ang on Tuesday called the attention of the Power Sector Assets and Liabilities Management Corp. (PSALM) and the Department of Finance (DOF) which insist that the conglomerate’s power business settle its alleged debts on its 1,200-megawatt (MW) Ilijan power plant. “This is bullying. They cannot just dictate on what works best for them. We have to follow due process,” Ang said. “Respect public bidding. We won this bidding. Stick to the terms and conditions of the contract.” For the DOF, Ang suggested it might want to tap the consulting services of an expert. “They don’t understand the power business. They should hire a professional consultant to advise them. We bought this power
plant through public bidding.” The Finance secretary is the chairman of the PSALM board. SMC is reacting to PSALM’s insistence on pursuing collection efforts against SMC over the Ilijan power plant, citing they also need to service their own obligations. “If [PSALM] has mismanagement issues, don’t blame us.” SMC, through its South Premiere Power Corp. (SPPC), reit-
erated it has already paid P289.1 billion or $6.19 billion in various fees as of end April 2019 for the 1,200-MW Ilijan power facility in Batangas, contrary to recent claims that it owes PSALM P19.75 billion in unpaid dues. PSALM has also already gained P34.75 billion from its Administration Agreement with SPPC. With this, Ang said he could not help but wonder where SPPC’s payment went. “We are just wondering what PSALM did with all the money they made out of our administration agreement on Ilijan since 2010. The public has a right to know; we all have a right to know how they are running things there,” Ang said. “These are funds that government should have put to good use such as vital public services and social programs.” The company added that the amount it paid for capacity fees alone, which is equivalent to about $2 billion, is already enough to pay for the 20-year-old power plant. A brand new plant with the same ca-
pacity could be built for so much less. SMC, through its power subsidiary SPPC, filed a case against PSALM in 2015 after it terminated the 1,200-MW Ilijan IPPA due to differences in computation of generation charges. SMC, however, recently won against the government after the Mandaluyong Regional Trial Court denied PSALM’s motion for reconsideration, saying it found no strong and compelling reason to reverse its earlier ruling. Separately, the Supreme Court also decided in favor of SPPC when PSALM challenged the Court of Appeals’ decision to affirm the writ of preliminary injuction filed by SPPC with the Mandaluyong RTC. PSALM, it said, “failed to show that the CA committed a reversible error in the challenged decision and resolutions as to warrant the exercise of the court’s discretionary appellate jurisdiction.” “We continuously honor our obligations. In return, we only ask that they respect the sanctity of our agreement,” Ang said.
Eastern Telecom expands footprint in Clark
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L A R K FR EEPORT—T he country’s third telecommunications company has expanded its footprint in this free port. The official launching was held at the Quest Hotel here on Friday where it announced its cutting-edge connectivity and data solutions designed to help enterprises and companies thrive in today’s business environment. Eastern Communications’ Internet Direct Service (IDS) and Leased Line Data solutions aims to service the growing market and the increasing demand for telecommunications services from manufacturing IT-business-process outsourcing (BPO), and logistics sectors in this freeport and in the region. IDS is a premium and dedicated Internet service with a 1:1 contention ratio. It runs through Eastern Communications’s fully redundant fiber-optic network, capable of providing gigabit per second connection between the Philippines and peering partners in the Asia-Pacific region, as well as the United States and Europe. IDS has high-speed, high quality and redundant links that are ideal for companies with round-the-clock, mission critical transactions. In a statement, Eastern Com-
munications promised to deliver robust and resilient connectivity solutions in Clark, Pampanga, in a manner that is both high tech and high touch. “We partner with businesses to take them from where they are now to where they want to go with our products and services, and we seek to get intimate with their business needs so we can help fill in the gaps with our brand of personalized service,” Eastern Communications Marketing Communications Head Jedrek Estanislao said. He said businesses in Clark and Pampanga can now experience more of Eastern Communications’s strong connection as it expands its robust and resilient services to one of the country’s emerging business hubs. Eastern Communications Regional Sales Head Anthony Co said: “Eastern Communications takes this opportunity to help companies continue their growth. We’re looking forward to bringing them our other services in the future.” Compa n ies w it h oversea s branches and offices such as banking and finance, ICT and BPO companies can control and transfer confidential information either point-to-point or multipoint without risking its security. Ashley Manabat
ABS-CBN, GMA both claim dominance in May TV ratings
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OMPETITORS ABS-CBN Corp. and GMA Network Inc. claimed on Tuesday they led the ratings game last month, citing data from two different sources. Lopez-led entertainment and multimedia conglomerate ABS-CBN, citing data from Kantar Media, claimed to have posted a higher national-average audience share in May, after recording a solid 44-percent audience share, beating GMA by 13 points. ABS-CBN also claimed leadership in Metro Manila and Mega Manila, where it scored an average audience share of 42 percent and 36 percent, respectively against GMA’s 24 percent and 31-percent share. The Lopez-led broadcaster also attracted more viewers than GMA in other areas. It won the ratings game in Total Luzon with an average totalday audience share of 39 percent, versus GMA’s 34 percent; in Total Visayas with 53 percent versus GMA’s 25 percent; and in Total Mindanao with 51 percent, versus GMA’s 28 percent.
ABS-CBN also claimed it fared better against GMA in the prime-time block, after it registered a 47-percent audience share, significantly higher than its rival’s 33 percent. The prime-time block is the most important part of the day when most Filipinos watch TV and advertisers put a larger chunk of their investment in to reach more consumers effectively. Aside from prime time, ABS-CBN won in other time blocks nationwide that include the morning block with 34 percent, versus GMA’s 30 percent; noontime block with 43 percent, versus GMA’s 31 percent; and afternoon block with 50 percent, versus GMA’s 30 percent. The Gozon-led network, meanwhile, claimed to have dominated in Urban Luzon with a 36.3-percent audience share versus 30.7 percent of ABS-CBN, based on data from Nielsen TV Audience Measurement. Urban Luzon accounts for 72 percent of all urban TV viewers in the country.
MUTUAL FUNDS
June 4, 2019
NAV ONE YEAR THREE YEAR FIVE YEAR Y-T-D PER SHARE RETURN* RETURN STOCK FUNDS ALFM GROWTH FUND, INC. -A 268.25 2.57% 0.91% 1.12% 6.35% ATRAM ALPHA OPPORTUNITY FUND, INC. -A 1.6431 7.32% 9.47% 3.54% 14.04% ATRAM PHILIPPINE EQUITY OPPORTUNITY FUND, INC. -A 4.1937 0.73% 1.25% 0.47% 7.45% CLIMBS SHARE CAPITAL EQUITY INVESTMENT FUND CORP. -A 0.957 5.14% N.A. N.A. 7.47% FIRST METRO CONSUMER FUND ON MSCI PHILS. IMI, INC. -A 0.8984 6.33% N.A. N.A. 9.47% FIRST METRO SAVE AND LEARN EQUITY FUND,INC. -A 5.588 3.87% 1.4% 1.27% 6.01% MBG EQUITY INVESTMENT FUND, INC. -A 122.43 9.35% N.A. N.A. 5.13% ONE WEALTHY NATION FUND, INC. -A 0.8965 2.59% -3.39% N.A. 7.7% PAMI EQUITY INDEX FUND, INC. -A 53.3344 5.59% 2.01% N.A. 8.39% PHILAM STRATEGIC GROWTH FUND, INC. -A 554.1 4.51% 0.97% 1.13% 7.65% PHILEQUITY DIVIDEND YIELD FUND, INC. -A 1.3525 6.73% 2.85% 3.77% 7.85% PHILEQUITY FUND, INC. -A 39.6824 6.68% 3.6% 3.29% 8.33% PHILEQUITY MSCI PHILIPPINE INDEX FUND, INC. -A,3 1.072 N.A. N.A. N.A. N.A. PHILEQUITY PSE INDEX FUND INC. -A 5.4082 6.56% 3.03% 3.51% 9.06% PHILIPPINE STOCK INDEX FUND CORP. -A 903.14 6.65% 2.74% 3.47% 9.01% SOLDIVO STRATEGIC GROWTH FUND, INC. -A 0.9474 7.92% 1.88% N.A. 10.01% SUN LIFE PROSPERITY PHILIPPINE EQUITY FUND, INC. -A 4.4189 6.85% 2.88% 2.62% 8.87% SUN LIFE PROSPERITY PHILIPPINE STOCK INDEX FUND, INC. -A 1.038 6.12% 2.68% N.A. 8.77% UNITED FUND, INC. -A 3.8249 6.87% 4.64% 3.45% 9.25% EXCHANGE TRADED FUND FIRST METRO PHIL. EQUITY EXCHANGE TRADED FUND, INC. -A,C,2 120.909 7.05% 3.74% 4.55% 9.17% ATRAM ASIAPLUS EQUITY FUND, INC. -B $0.9516 -12.34% 4.88% -0.54% 2.42% SUN LIFE PROSPERITY WORLD VOYAGER FUND, INC. -A $1.2361 -3.92% 6.8% N.A. 11.85% BALANCED FUNDS PRIMARILY INVESTED IN PESO SECURITIES ATRAM DYNAMIC ALLOCATION FUND, INC. -A 1.7547 2.81% -0.42% -1.1% 6.27% ATRAM PHILIPPINE BALANCED FUND, INC. -A 2.3428 1.46% 0.99% 0.85% 6.05% FIRST METRO SAVE AND LEARN BALANCED FUND INC. -A 2.6806 3.11% 0.07% -1.11% 5.38% GREPALIFE BALANCED FUND CORPORATION -A 1.3677 1.53% N.A. N.A. 4.86% NCM MUTUAL FUND OF THE PHILS., INC. -A 1.9476 4.64% 1.26% 1.46% 5.67% PAMI HORIZON FUND, INC. -A 3.7482 3.03% 0.15% 0.59% 6.2% PHILAM FUND, INC. -A 16.9038 4.12% 0.27% 0.66% 6.26% SOLIDARITAS FUND, INC. -A 2.1683 3.77% 1.44% 2% 4.63% SUN LIFE OF CANADA PROSPERITY BALANCED FUND, INC. -A 3.9151 5.77% 1.56% 1.63% 7.22% SUN LIFE PROSPERITY ACHIEVER FUND 2028, INC. -A,D,4 1.023 N.A. N.A. N.A. N.A. SUN LIFE PROSPERITY ACHIEVER FUND 2038, INC. -A,D,4 1.0236 N.A. N.A. N.A. N.A. SUN LIFE PROSPERITY ACHIEVER FUND 2048, INC. -A,D,4 1.0217 N.A. N.A. N.A. N.A. SUN LIFE PROSPERITY DYNAMIC FUND, INC. -A 1.0027 6.38% 1.74% N.A. 8.79% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES COCOLIFE DOLLAR FUND BUILDER, INC. -A $0.03668 4.86% 0.96% 1.54% 4.06% PAMI ASIA BALANCED FUND, INC. -A $0.9496 -9.12% 2.84% -1.34% 1.43% SUN LIFE PROSPERITY DOLLAR ADVANTAGE FUND, INC. -A $3.6172 -1.09% 5.11% 2.12% 9.33% SUN LIFE PROSPERITY DOLLAR WELLSPRING FUND, INC. -A $1.081 0.77% 3.27% N.A. 7.03% BOND FUNDS PRIMARILY INVESTED IN PESO SECURITIES ALFM PESO BOND FUND, INC. -A 349.23 3.18% 2.05% 2.13% 1.7% ATRAM CORPORATE BOND FUND, INC. -A,1 1.8881 1.49% -0.21% -0.3% 1.55% COCOLIFE FIXED INCOME FUND, INC. -A 3.0399 5.52% 5.28% 5.27% 2.33% EKKLESIA MUTUAL FUND INC. -A 2.1704 2.83% 1.28% 1.66% 1.87% FIRST METRO SAVE AND LEARN FIXED INCOME FUND,INC. -A 2.2849 3.07% 0.71% 1.15% 3.42% GREPALIFE FIXED INCOME FUND CORP. -A P 1.6054 1.73% -0.46% -0.04% 2.62% PHILAM BOND FUND, INC. -A 4.1021 3.24% -0.13% 0.71% 4.65% PHILEQUITY PESO BOND FUND, INC. -A 3.6385 4.41% 1.58% 1.08% 3.45% SOLDIVO BOND FUND, INC. -A 0.93 2.33% -0.44% N.A. 4.19% SUN LIFE OF CANADA PROSPERITY BOND FUND, INC. -A 2.9224 6.48% 1.98% 1.78% 5.66% SUN LIFE PROSPERITY GS FUND, INC. -A 1.6226 6.26% 1.47% 1.34% 5.37% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES ALFM DOLLAR BOND FUND, INC. -A $456.37 3.23% 1.85% 2.68% 1.8% ALFM EURO BOND FUND, INC. -A Є216.18 1.73% 1.44% 1.43% 1.66% ATRAM TOTAL RETURN DOLLAR BOND FUND, INC. -B $1.1731 5.49% 1.73% 2.09% 4.2% FIRST METRO SAVE AND LEARN DOLLAR BOND FUND, INC. -A $0.0254 2.83% 0.94% N.A. 2.42% GREPALIFE DOLLAR BOND FUND CORP. -A $1.7141 1.03% -1.28% 0.58% 1.41% PAMI GLOBAL BOND FUND, INC -A $1.078 3.96% -0.09% -2.03% 3.89% PHILAM DOLLAR BOND FUND, INC. -A $2.2963 6.68% 0.95% 2.68% 5.76% PHILEQUITY DOLLAR INCOME FUND INC. -A $0.0587218 3.54% 1.42% 1.71% 3.06% SUN LIFE PROSPERITY DOLLAR ABUNDANCE FUND, INC. -A $3.0312 4.99% 0.46% 2.17% 5.54% MONEY MARKET FUNDS PRIMARILY INVESTED IN PESO SECURITIES ALFM MONEY MARKET FUND, INC. -A 123.07 3.55% 2.31% 1.86% 1.85% FIRST METRO SAVE AND LEARN MONEY MARKET FUND, INC. -A,5 1.0128 N.A. N.A. N.A. N.A. PHILAM MANAGED INCOME FUND, INC. -A 1.2062 3.35% 1.48% 0.93% 2.06% SUN LIFE PROSPERITY MONEY MARKET FUND, INC. -A 1.2404 3.56% 2.58% 1.96% 1.76% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES SUN LIFE PROSPERITY DOLLAR STARTER FUND, INC. -A $1.0264 2.11% N.A. N.A. 1.03% 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
Wednesday, June 5, 2019
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Finance dept expects e-invoicing system for taxpayers completed by Dec 2022
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By Cai U. Ordinario
@caiordinario
HE Department of Finance (DOF) is keen on completing its e-invoicing system by December 2022 in order to provide faster services to taxpayers. Finance Assistant Secretary Antonio Joselito G. Lambino II said in a statement on Tuesday the system is part of govern-
ment’s digital transformation in tax administration. Lambino said this aims to address “the tendency of the cur-
rent tax system to overemphasize controls and monitoring over the welfare of taxpayers and the overall ease and efficiency of compliance.” “Progress has been made in modernizing information-technology services for taxpayers. However, further reforms are needed,” said Lambino. “The BIR [Bureau of Internal Revenue], in partnership with the government of Korea, is set to complete the development of the e-invoicing system by end of 2022.” Lambino said the new invoicing system will address problems
LAMBINO in the existing system such as redundant data fields that are currently required in tax returns but which already form part of
GSIS’s Q1 net income grows 3-fold to P29.6B S
TAT E -RU N Gover n ment Service Insurance System (GSIS) said its net income in the first quarter expanded by more than threefold to P29.65 billion from P9.05 billion on the back of better market valuations of its financial assets. GSIS attributed the 227.62-percent increase in net income to the rise in stock-market values, the increase in interest income and increase in premium contributions. “With our net income in the first quarter, we already hit more than 50 percent of our target net income for the year,” GSIS President and General Manager Jesus Clint O. Aranas said in a news briefing on Tuesday.
“We are happy to share this good news with our members and pensioners,” Aranas added. “Our 82nd-anniversar y celebration this month is made more meaningful knowing that we have fulfilled our commitment to become good stewards of the fund.” GSIS said the increase in their net income is primarily driven by the 6-percent increase in the local bourse in end-March coupled with the 12-percent growth in international equities market. GSIS said its public equities portfolio accounts for 20 percent of its total assets. “The remaining increase in net income is brought about by the increase in interest income due
to GSIS’s new loan programs and the increase in premium contributions due to the increase in active membership from 1.7 million
last year,” the GSIS said. The GSIS’s new loan programs include the GSIS Financial Assi st a nce L oa n for person ne l of the Department of Education and the GSIS Enhanced Consolidated Salary Loan Plus for members. The GSIS added that its total assets ending in the first quarter reached P1.2 trillion, or 6.57 percent over the P1.126 trillion it recorded at the end of the first quarter last year. “We hope that we have set the tone for a productive year ahead. Our members’ and pensioners’ trust will be our inspiration to do better,” Aranas said. Jasper Emmanuel Y. Arcalas
Loans that can save the world finally gain ground in Asia
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REGION that’s lagged behind the rest of the world when it comes to socially responsible financing is beginning to catch up. Companies in the Asia-Pacific area are riding a global groundswell in demand for environmental, social and governance loans and other feel-good investments, with Sydney Airport last month securing the largest syndicated ESG financing in the region. “There is growing acceptance by lenders that companies’ ESG performance translates into better share performance and ultimately better credit risk,” said Chris Ruffa, managing director for energy and infrastructure at BNP Paribas SA, one of the bookrunners on the
A$1.4-billion ($972 million) Sydney Airport deal. Borrowers are becoming more open to getting measured on their ESG objectives, and banks more prepared to encourage them to expand such goals by providing financial incentives, Sydney-based Ruffa said in an interview. To date, the Asia-Pacific area has trailed other major geographical regions when it comes to ESG loans. The most recent figures from Bloomberg NEF show that in Apac, only $605 million of sustainable loans have been signed in 2019, compared with $4.9 billion in the Americas, and $15.8 billion in EMEA. Global issuance of loans linked to ESG criteria grew more than seven-
fold last year to $37 billion, according to Bloomberg NEF data. Of that, only $850 million was from Apac. Borrowers are attracted by the potential lower costs and the possibility of using the funds for a broader range of objectives, unlike green loans where the proceeds are earmarked for environmental projects or assets. More than 10 lenders committed to the financing for Sydney Airport, which operates Australia’s busiest airport. Its sustainability rating was raised to “outperformer” in 2018 by third-party Sustainalytics, putting it in the top 20 percent of global companies analyzed within the transport infrastructure sector. To be sure, interest costs on these types of facilities may not only go
down, but can also increase depending on the company’s ESG performance, as scored by an independent assessor. Another borrower weighing a syndicated ESG loan in Asia is commodity trader Louis Dreyfus Co. Last week, it closed a $750-million deal in the US, which is tied to carbon emissions, electricity consumption, water usage and waste-reduction targets. “Sustainability-linked loans have applications across multiple sectors and the growth outlook is very positive for the product,” said BNP’s Ruffa. “The absence of use of proceeds restrictions means there’s arguably greater scope for more accelerated growth than green loans.” Bloomberg News
Six-day rally in China’s sovereign bonds fails to inspire cheerleaders
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HE recent surge in China’s gover nment bonds may not last long enough for them to match the global rally that’s taken benchmark yields to multiyear lows. That’s according to analysts who cite domestic headwinds such as liquidity worries, reduced trading by smaller banks after the surprise government takeover of one lender and an upcoming surge in supply of municipal bonds. Some bears like Hao Zhou, a senior emerging markets economist at Commerzbank AG, said China’s 10-year yield could climb to 3.6 percent by the end of the third quarter. The bulls at SWS Research Co. only see the yield falling at most to 2.9 percent. Others from Citigroup Inc. and Citic Securities Co. see the notes trading around 3.2 percent. The yield on China’s most actively traded 10-year bonds has tumbled 12 basis points in the past six sessions to 3.23 percent in Shanghai on Tuesday. While that’s the lowest level in two months, it’s a far cry from the slide in Treasury
CHINA’S bonds are lagging global rally, with headwinds looming. BLOOMBERG NEWS
yields, which have hit levels unseen since 2017. The divergence has pushed the yield gap between Chinese sovereigns and Treasuries to near the biggest in 16 months. “While the wider yield spreads over Treasuries should be supportive of China government bonds,
there may still be lingering worries on credit risk in the onshore market,” said Frances Cheung, head of Asia macro strategy at Westpac Banking Corp. Investors are staying defensive until they see more liquidity support from the central bank, she said.
Many analysts expect China’s central bank to roll out further easing measures amid a fragile economic recovery and the trade dispute with the US. Three trillion yuan ($434 billion) is due to be drained from China’s banking system between June and August, according to data compiled by Bloomberg. Some 463 billion yuan of that happens on Thursday. Lingering concern about the potential implications of the government’s takeover of Baoshang Bank at the end of May is also giving investors pause, according to Commerzbank’s Zhou. The main worry here is that credit risks or more regulatory scrutiny at small to medium-sized banks might restrict them from actively trading bonds, he said. There’s a glut of municipal bonds coming to the market as local governments aim to issue 3.08 trillion yuan of debt before September. While these notes aren’t direct competitors to sovereign bonds, there’ll still be a huge surge of supply, Westpac’s Cheung said. Bloomberg News
other mandatory attachments in paying taxes. The government can do this since the Tax Reform for Acceleration and Inclusion Act allows the government to implement cor rective measures to remove redundancies and inefficiencies in the tax system through the establishment of an e-invoicing system. L a mbi no sa id t h i s d ig it a l transformation will not only improve services to taxpayers but will also “result in administrative savings, and make the tax bureau more resilient and easily
adaptable to changes in policy and technology.” The BIR’s digital transformation agenda, he said, includes optimizing business processes, implementing an enabling infrastructure, maximizing the use of information for effective business operations and improving the digital literacy of the bureau’s work force. “This agenda requires a high level of commitment, and the tax bureau has initiated foundational activities, such as business process mapping, starting this year,” he said.
Duterte signature all that’s needed for Islamic banking regulatory setup
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MEASURE creating a sound legal and regulatory framework for Islamic banks in the country is now awaiting President Duterte’s signature. Reelected A na k Mindanao (Amin) Party-list Rep. Amihilda Sangcopan said in a statement the bill is already on its way to the Palace as the 17th Congress adjourned sine die on Tuesday. According to Sangcopan, the measure will attract more investments in the country’s banking sector and complement the newly created Bangsamoro Organic Law (BOL). The bill refers to an Islamic bank as a business whose objectives and operations do not involve interest (riba), which is prohibited by the Shari’ah and which conducts its business transactions in accordance to Shari’ah principles. “This is good news as we celebrate Eid’l Fitr tomorrow [June 5]. This will help Filipino Muslim businessmen to have access to banking and financial services that are attuned to the principles of Shari’ah or Islamic law,” Sangcopan said. “With the imminent passage of this measure into law, Laos will be the remaining coun-
try in the Asean region which has no Islamic banking system.” She said the House of Representatives concurred in the Senate’s adoption of its version; thus, the bill will not require a bicameral conference. The measure seeks to regulate and organize Islamic banks by mandating the Bangko Sentral ng Pilipinas to supervise, license and regulate the operations of Islamic banks. It provides that the Monetary Board may authorize the establishment of Islamic banks. It may also authorize conventional banks to engage in Islamic banking arrangements, including structures and transactions, through a designated Islamic banking unit within the bank provided that the Islamic banking unit is separate from its conventional banking transactions. The Monetary Board may also authorize a foreign Islamic bank to establish banking operations in the Philippines under any of the modes of entry provided under Republic Act 7721 or “An Act Liberalizing the Entry and Scope of Operations of Foreign Banks in the Philippines and for Other Purposes,” as amended. Jovee Marie N. Dela Cruz
Shunned in India, shadow banks forced to go overseas
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NDIA’S shadow banks are being forced to go overseas more for money as local lenders balk at extending funds, flagging strains in a key industry for an economy that’s already sputtering. The country’s nonbanking financial companies have raised more than $2 billion of overseas bonds and loans in 2019, a record compared with the same period in previous years, according to data compiled by Bloomberg. The lifeline is welcome, even as it underscores a scramble after a string of defaults by peer IL&FS Group last year made investors wary. The development comes at a trying time for India’s shadow banks, which lend to everyone from poor entrepreneurs getting micro loans for food delivery businesses to property tycoons looking to roll over debt. The economy expanded at its slowest pace in several quarters in the first three months of the year.
Observers view
“THERE is obviously some risk premium being attached to the sector by international lenders, compared to funding rates for similarly rated corporates,” according to Chetan Joshi, head of debt capital markets at the Indian unit of HSBC Holdings Plc. “The USD loan market has shown an ability to support Indian NBFC and housing finance company borrowers.” “On a fully hedged basis, the borrowing costs for
NBFCs would be 25-50 basis points higher than the onshore rates,” according to Ajay Marwaha, London-based head of investment advisory at Sun Global Investments. For investment-grade companies from India, dollar bond issuance will mainly come from nonbank financial institutions, as their funding conditions onshore have been very tight in the wake of the IL&FS situation, according to Annisa Lee, head of Asia ex-Japan flow credit analysis at Nomura International (HK) Ltd. There’s still not a lot of supply coming from India, so if issuers are willing to pay up, they will be able to print new paper. In terms of the amount of premium they would have to pay, it’s name by name, depending on which sector they focus on, Lee said. “The ability for most NBFCs to go out and raise money in any meaningful way through domestic capital markets is really quite restricted’’ says Arjun Kapur, head of corporate finance, Sun Global Investments. Bloomberg News
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ANCHOR LAND CONTINUES TO SUPPORT CONSERVATION OF MANILA’S LAST MANGROVE REFUGE SHIPPING MANIFESTO YIELDS POSITIVE RESULT 60 DAYS AFTER SIGNING
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IXTY days after a manifesto of support was signed by shipping stakeholders, the number of empties and overstaying containers at the Port of Manila drastically dropped to a more appealing level. The manifesto allowed Manila ports, composed of the Manila South Harbor, Manila International Container Terminal and the Manila North Port, to steadily declog yards with empty containers and overstaying cargoes, paving the way for a more efficient operations. The manifesto of support, meanwhile, aims to prevent the imbalance of inbound and outbound containers borne by unscrupulous practice of using ports for prolonged storage of containers, until withdrawal of goods will yield to maximum profit. PPA General Manager Jay Daniel R. Santiago said the positive development
only showed that port congestion concerns can be addressed effectively, as long as all stakeholders are willing to compromise. Santiago particularly lauded the initiative of Asian Terminals Inc. (ATI), known as the empty loadout shipping agreement (Elsa), in clearing out empties. The Elsa process provides that every cargo discharge and vessels docked at the Manila South Harbor would load empty containers already available at the port, regardless which shipping line owned such container. The participating shipping lines to the Elsa process include the CMA-CGM Group, TS Lines, Evergreen, Yang Ming Lines, Wan Hai and Hyundai Merchant Marine. “Two weeks from the implementation of the manifesto, the Manila South Harbor is already loading out at least 10,000 twenty-foot equivalent units
(TEUs) and relocated the same to other Asian destinations,” Santiago explained, adding that the other Manila ports are, likewise, loading out containers in a decent manner. “Toward the end of May, the container loadout at the port per week has reached 14,000 TEUs, the highest figure posted in the 60-day implementation span,” Santiago added. Prior to the manifesto, the previous practice was that shipping lines would only pull out its own containers resulting to higher inventory of empties inside the ports’ container yards. “The consistent loadout of empty and overstaying containers from the ports [in] the past two months have resulted to a yard utilization of about 54 percent as of end May, compared to the 75-percent yard utilization when the Manifesto was signed in mid-March,” Santiago said.
FEAST FOR THE KING AT NOVOTEL ARANETA
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REAT your dad like a king this Father’s Day weekend with unlimited feasts at Novotel Manila Araneta Center. Delight in an Asian-themed lunch or dinner buffet with spicy authentic Indian cuisine and nostalgic savory Filipino dishes at Food Exchange Manila for only P1,888
per person. Best deal is, for every three full paying guests, your dad eats for free! You may also opt to spike it up with unlimited beer or unlimited do-it-yourself cocktails for an additional P650 net. Dining dads will receive gifts and a chance to personally meet surprise PBA celebrities. Plus, lucky dads may get additional treats from Food Exchange Manila. If you want a more relaxing outdoor feel with live band entertainment, w ithout leaving the metro, go up #The6thManila for a sunset by the pool barbecue feast. On June 14 and 15 starting at 6 p.m., take a dip while enjoy fresh off-the-grill meat and seafood barbecue buffet, free-flowing beer, live cooking
stations of sisig, grilled mussels and shrimps, Mongolian or teppanyaki rice and a lot more, for only P1,588 per person. For families who would want to spend more time with dad, a staycation package good for two adults and two kids 15 years old and below is available starting at P6,000 net. This includes a complimentary buffet lunch or dinner buffet voucher for Dad and 30 percent off per companion per buffet once availed. Destress and spoil your father with the perfect gift to relax and enjoy—a 90-minute pampering treatment at the Balance Spa, one of the five awardees in the Philippines of the Asean Spa Services Standard 2019-2021. For only P2,200 he’ll be treated to a 30-minute organic red-rice body scrub and 60-minute combination massage. For inquiries and reservations, e-mail at H7090@accor.com.
DSWD, Fortune Life provide financial literacy to 4Ps beneficiaries
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LASTIC constitutes most of the waste that continue to pollute marine life. About 8 million tons of plastic end up in oceans every year, according to the UN Environment. These plastic wastes include those that were discovered in the stomachs of dead whales washed ashore, plastic straws stuck in the nostrils of turtles and debris that the birds mistake for food. While the effects of wastes on environment may seem irreversible, private organizations, including property developer Anchor Land, remain committed to help in the rehabilitation of deteriorating sanctuaries like Manila Bay. Volunteers of Anchor Land recently joined environmental organization Haribon Foundation’s cleanup drive at Manila Bay’s last mangrove refuge, the Las Piñas-Parañaque Critical Habitat and Ecotourism Area (LPPCHEA). “We are thankful for Anchor Land’s continued support by exposing their employees to our different programs, showing their commitment to environmental conservation. Through their participation in our coastal-cleanup activities, we are able to spread awareness to more individuals regarding the growing problem of waste and what they can do to help,” Stephanie Lim of Haribon Foundation said. Participants of the activity were able to collect 35 sacks containing 230 kilograms of styrofoam, plastic bottles, glass bottles and aluminum cans, rubber, clothing and bags, and other nonbiodegradable wastes washed up
in the coast of LPPCHEA. This is a wake-up call for Geny Axibal of Anchor Land, saying that she is excited to share her experience with her loved ones. “I would like them to be aware and be concerned with the cleanliness of our surroundings. This will give others reason why we are doing such awareness, and provide a better understanding on the right segregation of trash and its proper disposal.” Her colleague Jing de Leon said that “it was fulfilling to be a part of this socio-civic awareness.” For Toni Aribon, another employee of Anchor Land, joining the cleanup activity helps raise awareness outside of the digital world. “We are now determined to help clean the bay by decreasing the numbers of trash washed up to the coast. It is simple act of kindness that creates a ripple effect from one person to another. I think the biggest impact of this activity is for us to learn to start being responsible when consuming products and learn more about trash management,” he said. Aribon also believes the cleanup of LLPCHEA is an eye-opener to everyone as it shows the actual state of the bays in the city. LPPCHEA is the first protected area in Metro Manila, which is a spawning ground for numerous species of fish and habitat, for over 80 species of migratory birds.
THE SM STORE WINS THREE STEVIE AWARDS The SM Store recently won three prestigious Asia Pacific Stevie Awards, including the Gold award for Innovation in Social Media Marketing for SM Style Stories, in recent ceremonies held in Singapore. It also won a Silver award for Innovation in Cross-Media Marketing for FashioniSM, a collaboration with creative powerhouse Margaret Zhang, and a Bronze award in the same category for It’s Christmas at SM. Shown in photo with their trophies are The SM Store Vice President for Marketing Kathy So-Chua (center) with senior marketing manager Fiona Araneta and marketing manager Jan Michael Borja.
DUNHILL HAS GONE A LONG WAY
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HE Department of Social Welfare and Development (DSWD) Region 3, represented by regional director Gemma B. Gabuya, recently signed a memorandum of agreement (MOA) with Fortune Life Insurance Co., represented by First Vice President for Group Sales Virgilio S. Aquino and Tarlac branch manager Victor A. Taguines, in San Fernando, Pampanga. As agreed, Fortune Life will provide financial literacy to Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries in Region
3 in order to promote savings and protection, as well as its offered plans. Also present on the contract signing were Fortune Life regional sales manager for North and Central Luzon Alvin L. Perez (left), Group Marketing Senior Manager Carlos Frederic S. Lago (second from left) and Agency Manager Patricia L. Taguines of Tarlac branch (third from left), together with DSWD representatives, namely, Tomasa Lirio, regional program coordinator (secon from right) and Myra Soraya Allanigue,
project development officer II, Regional CSO Focal Person (right). Fortune Life will continue its advocacy of educating Filipinos to be financially literate citizens and to provide tailor-fitted insurance protection to 4Ps beneficiaries, including their family members. Photo shows Gabuya (third from right) firmly shaking hand with Aquino (fourth from right), together with Taguines (fourth from left), after the MOA signing in San Fernando, Pampanga.
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UNHILL Events and Advertising Promotions, your trusted media partner, has established itself with quad media presence in the Philippines. The team prides with campaigns powered with profitoriented planning manned by competent collaborators across traditional and new media. Dunhill has been a proud TV sponsors of It’s Showtime. “We started with events management, and we are moving from mall ad placements, billboard advertisements, transit ads to quad media in the near future” said Rachell Corpuz, marketing manager. With their tagline “Imagination and Beyond”, Dunhill
has gone a long way, always innovating and expanding creative ways to promote their clients’ interests, making them accountable for every project entrusted to them by their clients. “We make sure that we are hands on every day, with every project granted to us. Our clients’ business has always been our business too” said Rachell Corpuz, marketing manager, who is seen most of the time receiving awards in the events of Dunhill. A young and driven events company, Dunhill still has more years to prove to the Filipino people that they mean business for good.
FINALS SERIES GET MENTAL, PHYSICAL Sports BusinessMirror
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| Wednesday, June 5, 2019 mirror_sports@yahoo.com.ph Editor: Jun Lomibao
The Raptors lost the game and home-court advantage, but not any of their belief that they can win the series.
STEPHEN CURRY and the Warriors are in no condition to dance their way back across the border in this first Finals to be played outside the US. AP
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By Brian Mahoney The Associated Press
ORONTO—The Toronto Raptors feel good mentally, and they are certainly in better shape physically than the Golden State Warriors. The Raptors know they have outplayed Golden State for perhaps 90 of the 96 minutes of the National Basketball Association (NBA) Finals, and they almost overcame the one brutal stretch where they didn’t. Despite being blanked for nearly half the third quarter of Game Two, the Raptors were within two points in the final seconds. Golden State held on to win 109-104, tying the series that moves to Oracle Arena for Games Three and Four. The Raptors lost the game and home-court advantage, but not any of their belief that they can win the series. “We fought back and we know that going toward Game Three we’ve got to play a lot better, and it’s going to be even harder on the road,” Raptors guard Fred vanVleet said, “but we’re capable and we know what we bring to the table.” The Warriors aren’t quite sure, at least as it relates to their health. They are hoping Kevin Durant is close to returning from a sevengame absence with a strained right calf, and that Klay Thompson can play after he limped off the court early in the fourth quarter on Sunday. The Warriors said Thompson had an MRI exam on Monday that indicated a mild left hamstring strain and that he would be listed as questionable for Game Three. They will be without Kevon Looney, who has been their best center in the postseason. He will be out indefinitely because of a
GOLDEN State’s Draymond Green tries to snatch the ball from Toronto’s Kawhi Leonard in Game Two. AP
Leonard sues Nike over rights to logo
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AN FRANCISCO—Toronto star Kawhi Leonard filed a federal lawsuit against Nike on Monday, saying the footwear and apparel giant is blocking him from using a logo that he believes he owns. The suit was filed on a travel day for the National Basketball Association (NBA) Finals; Leonard and the Raptors flew to Oakland, California on Monday to begin preparing for Game Three of the title series against the Golden State Warriors, a game that will be played Wednesday night. It was filed in California because Leonard maintains a home in San Diego, the suit said. Leonard was a Nike endorser until 2018. He now endorses New Balance. A Nike spokesman declined comment on Monday, saying the company does not discuss pending litigation. Leonard is scheduled to speak with reporters on Tuesday when practice resumes at the NBA Finals. In the lawsuit, Leonard said Nike filed a copyright application for a logo that he designed and did so “unbeknownst to Leonard and without his consent.” Nike told Leonard earlier this year to stop using the logo, the
lawsuit said. Leonard is preparing to use the logo “on clothing lines, footwear and on other products and, among other things, in connection with sports camps and charity functions.” Leonard claims that he developed the logo himself by tracing his very large hands. The ring and pinky fingers of the logo are shaped into a “K,” the middle finger and thumb form an “L’’ and the index finger is designed to resemble an elongated “2’’—all nods to his initials and jersey number. The suit said that Leonard “refined” the logo in December 2011 or January 2012, and eventually consented that Nike could use it on certain products. Leonard wants the court to decide that he is the author of the logo and that Nike “committed fraud” when registering the logo for copyright. Leonard is in the NBA Finals for the third time, and got there in his first season as a member of the Raptors after previously playing with the San Antonio Spurs. He will become a free agent on June 30 and many teams, including the Raptors and Los Angeles Clippers, are expected to attempt to sign him this summer. AP
SLIGHTLY HIGHER
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EW YORK—Ratings for Game Two of the National Basketball Association Finals were slightly higher than the numbers for Game One of the title series between Toronto and Golden State. The Warriors’ win on Sunday night drew a 10.2 overnight rating, up a bit from the 10.1 rating for Game One. Ratings will likely remain down from last year’s numbers throughout the series, because Canadian viewership does not factor into the formula and because these are the first finals since 2010 without LeBron James on the floor. The 10.2 overnight is roughly even with the same overnight from Game Two of the finals in 2008, 2013 and 2014. Game Three is on Wednesday night in Oakland, California. AP
Cousins plays role as game changer
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ORONTO—DeMarcus Cousins says he’s good with any workload the Golden State Warriors task him with for the remainder of the National Basketball Association (NBA) Finals. Start, don’t start. Play a few minutes, play big minutes. “Whatever’s needed,” Cousins said. It’s looking like plenty will be needed. The Warriors are banged up, and the center who has spent most of the last 18 months in that predicament is coming back at the absolutely perfect time for the two-time defending champions. He’s gone from question-mark to game changer, a stat-stuffer for the Warriors—who, it seems, now finally know who their starting center is the rest of the way. Cousins played 28 minutes in Game Two of the NBA Finals, scoring 11 points, grabbing 10 rebounds, handing out six assists and blocking two shots. With him on the floor, the Warriors outscored the Raptors by 12 points. With him on the bench, the Raptors outscored the Warriors by seven. Put simply, he changed the game. He also might have changed the series, which resumes in Oakland on Wednesday night for Game Three. “On our defensive end, making his presence felt blocking shots, being in the right place at the right time, it’s a big lift for us,” Warriors guard Stephen Curry said. “I know he’s been waiting a long time to be on this stage. Obviously with his injuries, he’s taken the challenge of inserting himself and making that transition smooth. So it’s been fun to watch. More to come.” The fact that he’s even on the floor is a surprise to the Warriors. It remains unclear how much they really believed their own words when they told Cousins that he had a chance of coming back this season from his torn quadriceps muscle, suffered in the opening minutes of Game Two of the firstround matchup against the Los Angeles Clippers. All that matters now is that Cousins believed them. Good thing. Now recovered from what basically was a hole in his leg, Cousins is more than plugging a hole in the lineup.
“I want to be on this stage,” Cousins said. “This is what I’ve worked for my entire career, to be on this stage, to have this opportunity to play for something. But once they told me I had a chance, a slight chance, of being able to return, it basically was up to me and the work and the time I put in behind the injury. It was up to me. So I put the work in.” The Warriors aren’t sure yet if Kevin Durant will be ready to play in Game Three. Backup center Kevon Looney has an upper-body injury that coach Steve Kerr sounded concerned about after Game Two. Klay Thompson, who rarely gets hurt, left Game Two with a strained hamstring—though told Kerr he will play on Wednesday. Compared to what Cousins has gone through, those are all relatively minor deals. He ruptured his Achilles in January 2018, missed the rest of that season, signed with the Warriors last summer in a bargain—a six-time All-Star for $5.3 million—and needed until this January to get back on the floor. And then when he finally got to be on the floor in the postseason for the first time, he ripped the quad muscle in the first quarter of Game Two of the opening round. Cousins played eight minutes in Game One of the finals, then got 28 big minutes as a starter in Game Two. Expect another 28 minutes—or more—in Game Three. “We do feel confident that we can continue to get good minutes from him,” Kerr said. “We’re going to need them, obviously, with all these injuries.” That’s just fine with Cousins. He’ll be a free agent in a few weeks, which doesn’t seem to be on his radar whatsoever right now. In a locker room where just about everybody has a handful of rings, he’s playing for his first piece of championship jewelry. He’s not 100 percent right now. But if the Warriors need him to play as though he is, Cousins said he will. “I’ve told you all before I don’t take any of this for granted,” Cousins said. “I’ve seen how quick this game can be taken away from you. So every chance I get to go out there and play, I’m going to leave it on the floor.” AP
non-displaced cartilage fracture on the right side of his ribcage that he sustained in Game Two. So the Warriors were in no condition to dance their way back across the border in this first NBA Finals to be played outside the US—in fact, DeMarcus Cousins posted an Instagram picture of him and Andre Iguodala being moved through the airport in wheelchairs. But they wouldn’t have been too excited even in peak condition. They’ve played in so many series during their run to five straight finals that they understand better than anyone how momentum works. “It swings so much. They’ve gone through it, too, when they were down 0-2 last series and won four straight games,” Iguodala said. “We won two games at home and went to Houston and lost two, and everyone thought the world was ending, especially with our team. Certain things that we pick up along the way, that experience will help us with emotional swings from game to game in this series.” Iguodala hit the clinching 3-pointer after the Raptors had clawed their way within two points by scoring 10 straight in the final minutes. It certainly seemed it would be easier for the Warriors after their 18-0 run to start the third quarter, an NBA Finals record to begin a half, had put them in control. Toronto stayed in it thanks to Kawhi Leonard, who finished with 34 points and 14 rebounds, and an assault on the backboards in which they outscored the Warriors 23-0 in second-chance points. It might take even more than that to get a game at Oracle Arena, where the two-time defending champions will play on Wednesday for the first time in nearly three weeks. Golden State hasn’t played a home game since Game Two of the Western Conference finals against Portland on May 16. “The only thing that matters is the four. Four wins,” Leonard said. “Once you get it, two wins, three wins, it does not matter. Just take one game at a time and just play through the adversity.” That’s what the Warriors did in Game Two, when they turned to all the tricks they’ve learned and pulled a rabbit out of their hats. Now they have to hope they won’t run out of rabbits. “Obviously, we have the star power, but when you bring guys off the bench, that goes a long way,” backup guard Quinn Cook said. “I don’t think they’ll get tired for the finals. There are two days between games. They’ll be back hungry on Wednesday, just like us. We just have to keep being better.”
FORMER US President Barack Obama is an amazed fan in Game Two of the Finals. AP
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Dufner, Guthrie earn slots in tight US Open qualifiers
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OLUMBUS, Ohio—Jason Dufner is going back to the US Open for the 10th straight year, and this time he had to play his way in through one of 10 qualifiers across three countries on Monday in the longest day in golf. Luke Guthrie took a detour from the Web.com Tour and led the 14 qualifiers out of Columbus, the strongest of all sectionals with so many Professional Golfers Association (PGA) Tour players who stayed around after the Memorial. He returns to the US Open for the first time in five years. He arrived from the Web event in North Carolina a little past midnight. He was headed to South Carolina on Tuesday morning to resume his Web schedule. And then he had to find a place to stay for the US Open. “I told my wife, ‘It might cost us $1,000 a night.’ But it’s Pebble Beach. Who cares?” Guthrie said. The US Open is from June 13 to 16, the sixth time it is being held at Pebble Beach. Also qualifying from Columbus was Sam Saunders, whose late grandfather Arnold Palmer was among the principal owners of Pebble Beach. Sixty spots were available at eight sites in the US, one in Canada and one in England. Fifteen players previously made it through 36-hole qualifiers in Dallas and Japan. Dufner finished with a double bogey at the Memorial to fall into a tie for seventh, and then headed to Scioto some 12 hours later for 36 more holes. He was bogey-free at the tougher of the courses, and held on for a 71 at Brookside. He had been exempt for his previous nine appearances in the US Open. “All the way back to Rickie Fowler’s rookie year if that tells you anything,” Dufner said. The clutch moment from Ohio came from Kyoung-Hoon Lee, who birdied the 18th hole at Scioto to make it an even 14 players to finish at 5 under or better. If he had made par, there would have been an 8-for-1 playoff for the last spot. Instead, seven players went extra holes to determine the first alternate out of the sectional. That went to Joel Dahmen, and odds are he will be at Pebble Beach. The US Open is holding six spots for anyone who might get into the top 60 in the world after next week. Also in the group at five under: former world No. 1 Luke Donald, who will play his first US Open since 2016. AP
GIANT killers Sofia Kenin and Katerina Siniakova are gone quickly at the French Open. AP
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ARIS—Beating 23-time major champion Serena Williams or No. 1-ranked Naomi Osaka at the French Open was one thing. Following up those upsets with other victories two days later was entirely something else for Sofia Kenin and Katerina Siniakova. The women responsible for beating Williams and Osaka in the third round both bowed out in the fourth round on Monday, with Kenin losing to No. 8 seed Ash Barty, 6-3, 3-6, 6-0, and Siniakova defeated by No. 14 Madison Keys, 6-2, 6-4. It’s a common occurrence at Grand Slam tournaments: An unseeded player knocks off a far more accomplished opponent but fails to do enough to win again the next time on court. Just one other example from this year at Roland Garros: The woman who beat threetime major champion
Angelique Kerber in the first round, 81st-ranked Anastasia Potapova, exited in the second. “It’s obviously challenging. You know, you’ve got to get your emotions settled in,” said Kenin, a 20-year-old American ranked 35th who outplayed Williams during a straight-set victory last Saturday. “Yes, I beat Serena, which was really good, but I knew that [Barty is] very tough and she’s playing really well.” Keys meets Barty next. In the other quarterfinal on the top half of the women’s draw, defending champion Simona Halep will face 17-year-old American Amanada Anisimova or Spanish qualifier Aliona Bolsova. Halep had no trouble at all against 18-year-old Iga Swiatek of Poland, winning 6-1, 6-0. After needing three sets to get through
each of her first two matches last week, Halep has dropped a total of four games through her next two. Barty dominated her final set, held an 11-1 edge in aces and played the sort of mistake-free tennis that Kenin managed to produce a match earlier. After making half as many unforced errors as Williams, Kenin wound up with 29 against Barty, who had 17. Barty, an Australian who interrupted her tennis career for nearly two years after the 2014 US Open to play cricket, is really thriving now. “It made me more hungry and more passionate to come back and play tennis. I feel like I’m in a very good place, very much enjoying myself,” Barty said.
“I play my best when it’s very simple, I’m thinking clearly,” she said. “I know just what to do.” Barty made it as far as the fourth round only once in her first 17 Grand Slam appearances; she’s made it to the quarterfinals at each of the past two. In Keys, she’ll face someone who is in the quarters for the fifth time in the last seven majors, including a runner-up finish at the 2017 US Open and a semifinal showing in Paris a year ago. Keys needed only 75 minutes to get past Siniakova, a Czech who is ranked No. 42 in singles and No. 1 in doubles. After playing so confidently in her 6-4, 6-2 victory that ended Osaka’s 16-match Grand Slam winning streak, Siniakova allowed Keys to dictate things to the
tune of a 26-10 advantage in winners. “After you have a big win, you put a little bit more pressure on yourself,” Keys said. “So it’s definitely never an easy position to be in after having a big upset and then trying to mellow out and follow it up the next round.” Siniakova said she “just wanted to play another match,” but beating Osaka meant expectations went “from low” to “big.” “Everyone,” Siniakova said, “expects you now to beat everyone.” AP
COURT TO SEMENYA’S RESCUE C
ASTER SEMENYA won an interim ruling in her battle against the International Association of Athletics Federations (IAAF) when the Swiss supreme court ordered athletics’ governing body to suspend its testosterone regulations on Monday, raising the prospect of her competing at the world championships without having to take hormone suppressing medication. The decision temporarily lifts the contentious rules, at least until the IAAF responds with arguments to the supreme court, known as the Swiss Federal Tribunal, to restore them. The IAAF has until June 25 to do that. Should the IAAF fail to overturn the ruling, the regulations will remain suspended until Semenya’s full appeal is heard by a panel of Swiss federal judges. That could take up to a year or more, meaning the 28-year-old South African might be cleared to run unrestricted in her favored event in remaining Diamond League meetings and the worlds in Doha, Qatar, in September and October. “I am thankful to the Swiss judges for this decision,” Semenya said. “I hope that following my appeal I will once again be able to run free.” The supreme court appeal is the second time the two-time Olympic 800-meter champion has challenged the IAAF rules. Semenya lost her case against the IAAF at the Court of Arbitration for Sport on May 1 and the
Belmont keeps horses safe
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HE home of the Belmont Stakes is laps ahead of other US racetracks when it comes to keeping horses safe. Belmont Park and other tracks around the state of New York have had some of the fewest horse deaths in the sport. Amid the 26 horse deaths at California’s Santa Anita Park since late December, the Belmont will be run on Saturday on a track that national observers say is among the safest and best maintained in the country. A major reason for the high praise is the attention given to Belmont Park’s dirt and turf track surfaces by Glen Kozak, senior vice president of facilities and racing surfaces at the New York Racing Association. “They’ve just turned the corner and not all the racetracks have kind of turned that corner where they feel like this is how they manage it,” said Dr. Mick Peterson, executive director of the Racing Surfaces Testing Laboratory in Lexington, Kentucky. “And that’s really where they’re in the lead.” Belmont Park’s 2018 fatality rate of 0.98 per 1,000 starts is significantly under the national average of 1.68, and there hasn’t been a fatal breakdown in the Belmont, the third race of the Triple Crown, since 1993. Compare that to a 2.42 fatality rate at Churchill Downs, the home of the Kentucky Derby, and 2.33 at Pimlico Race Course, which hosts the Preakness. Tyler Gaffalione, who won the Preakness aboard War of Will, has ridden at Belmont Park 66 times and raves about the surfaces being consistent. The right mix of clay, silt and moisture helps horses run evenly across the track. “I love the track at Belmont,” Gaffalione said. “Every time I’ve gone there it’s been very consistent. It feels like every horse gets over it well. It plays fairly. You can be in front. You can come from behind. I think they do a tremendous job.” AP
ONE-HIT WONDERS rules came into effect on May 8. They meant that Semenya wasn’t allowed to run in any top-level 800-meter race unless she medically reduced her elevated testosterone levels before Monday’s decision. Dorothee Schramm, the Swiss-based lawyer leading Semenya’s appeal, said the supreme court “has granted welcome temporary protection to Caster Semenya.” “This is an important case that will have fundamental implications for the human rights of female athletes,” Schramm said. The ruling has implications for other athletes, too. Francine Niyonsaba of Burundi and Margaret Wambui of Kenya, both Olympic medalists in the 800, have said they are also affected by the rules. The regulations apply only to some races, from 400 meters to one mile. Semenya is the reigning Olympic champion and a three-time world champion in the 800. She also has a world championships bronze medal in the 1,500 meters, which the IAAF also made a restricted race. Semenya has battled track authorities for the right to run in what she describes as her natural form for a decade, ever since she was subjected to gender verification tests by the IAAF at the age of 18 when she won her first world title in 2009. The dispute is viewed as one of the most controversial and complex to face sport.
The IAAF rules apply to female athletes with medical conditions known as “differences of sex development” and specifically those born with the typical male XY chromosome pattern. The athletes also have testosterone levels higher than the typical female range, which the IAAF argues gives them an unfair athletic advantage over other women because the hormone helps build muscle and increases oxygen levels in the blood. To compete in the Olympics, world championships or other international athletics events, each athlete must reduce her testosterone level and keep it within the acceptable range for six months prior to competing. The IAAF gives three medical options to do that: A daily contraceptive pill, a monthly testosteroneblocking injection, or surgery. The treatments could inhibit athletic performance but by how much is uncertain, while also posing risks of other negative side effects. Prescribing medical treatments solely for sports eligibility reasons has been labelled as unethical by an array of experts, including the
THE Swiss supreme court orders athletics’ governing body to suspend Caster Semenya’s testosterone rules. AP
World Medical Association, which represents doctors across the world. Semenya’s lawyers say her appeal to the Swiss supreme court will focus on human rights, with the rules forcing her to take medication or have surgery to be eligible to compete. AP
SMB DEBUTS IN COMM’S CUP Mobile Legends tourney in Manila M S
AN Miguel Beer debuts against NorthPort on Wednesday in the Philippine Basketball Association Commissioner’s Cup the Beermen came close to winning last season. The Beermen, champions of the recent Philippine Cup, lost to sister-team Barangay Ginebra Gin Kings in six games last year. Along with a refreshed lineup and the return of former Best Import Charles Rhodes, San Miguel is again tipped to go deep in the midseason tournament. Now tasked to test the Beermen are the Batang Pier, who are tied in second place with the TNT KaTropa at 3-1 won-lost record. The game is set at 7 p.m. at the Smart Araneta Coliseum. Tasked to steer San Miguel is Rhodes, who towed the franchise to a championship in 2017 against TNT. Rhodes is expected to have tons of help from five-time Most
RHODES
MBC conducts Clean-Up Run
Valuable Player June Mar Fajardo, Arwind Santos, Chris Ross, Marcio Lassiter and Alex Cabagnot. There’s also Terrence Romeo, a former scoring champion who has found a new role coming off the bench. Christian Standhardinger is also available to provide support in the post. For Rhodes, he’s back to business with the same mind-set. “I have the same goal. I’m here to regain the crown,” the 33-year-old Rhodes said. He was originally scheduled to suit up for the Beermen last year but missed out because of family reasons. “I always wanted to come back. I wanted to come back last season but you know, I had a daughter. I just had to be home with my daughter and my wife,” he said. “But now, I’m here. I’m ready to defend my crown.” Without Rhodes, San Miguel Beer took Renaldo Balkman, who helped the team to a runner-up finish. Ramon Rafael Bonilla
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HE Manila Broadcasting Company will stage the seventh Manila Bay Clean-Up Run on July 7 with races set in the 3K, 5K, 10K and 21K divisions for both men and women. Medals and cash prizes will be given to the top three winners in each race division.
OBILE Legends: Bang Bang (MLBB) Southeast Asia Cup (MSC)—the region’s elite MLBB tournament—is coming to Manila from June 19 to 23 at the SMART Araneta Coliseum. Twelve invited teams from nine Southeast Asian countries are competing in the event. Countries with their respective Mobile Legends: Bang Bang Professional Leagues (MPL)—the Philippines, Indonesia and Myanmar—will each send two teams, except for Malaysia and Singapore which will send one team each. Thailand, Vietnam, Laos and Cambodia are hosting local qualifiers with the winning team from each country qualifying for the MSC. Indonesia’s Onic Esports and Louvre Esports,
Interested runners could now register at the lobby of Manila Broadcasting Company on Sotto Street at the Cultural Center of the Philippines Complex in Pasay City anytime from Monday to Sunday from 9 a.m. to 6 pm. Registration booths are also set at Olympic Village branches at Robinsons Forum, Festival Mall and
Malaysia’s Geek Fam and Singapore’s EVOS Esports SG have confirmed their participation. “MLBB fans in the Philippines have shown great love for the game and the level of MLBB eSports talent here is outstanding,” JJ Lin, eSports manager of Moonton, said. “At Moonton, we are proud to have created a game that has resonated well in the region.” MSC 2019 kicked off with the group stage draw on Tuesday. The group stage is set on June 19 and 20, while the play-in round and playoffs are scheduled from June 21 to 23 at the Big Dome. The entire tournament including the group stages will be streamed live on Facebook at the official Mobile Legends: Bang Bang Facebook page.
Farmers Plaza from Tuesday to Sundays from 12 noon to 6 p.m. Deadline is on June 30. The fun run is one of many activities that have helped generate funds to institute systematic long-term solutions to environmental sanitation problems that have beset the country’s coastal resources and tributaries.
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Wednesday, June 5, 2019
TEAM PHL, TEAM UNITY! By Ramon Rafael Bonilla
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EARING the chef de mission’s hat, William Ramirez’s call to Team Philippines to the 30th Southeast Asian Games was common and simple—but
WILLIAM RAMIREZ addresses sports officials as chef de mission of Team Philippines. ROY DOMINGO
piercing: Unity! And the response from representatives from 57 national sports associations (NSAs) reverberated at the Philippine International Convention Center Agoncillo Hall before noon on Tuesday: Yes we will! We Win As One! Ramirez, the chairman of the Philippine Sports Commission (PSC), called for a Team Philippines meeting for the first time since he was named chief of mission to the SEA Games not only to guarantee unity among
sports leaders, but as importantly to assess their progress toward the November 30 to December 11 event. “I’d like to hear the national anthem to be played 120 times,” said Philippine Olympic Committee President Ricky Vargas, whose target exceeds the 112 mints the country won in 2005. Philippine Southeast Asian Games Organizing Committee Chairman Alan Peter Cayetano and Executive Secretary Salvador Medialdea’s deputy, Atty. Kim Raissa Uy, guaranteed Ramirez the full support he needed in championing the team to the Games. “There are many faces of winning but we must aim for No. 1!” Ramirez declared. Cayetano, like everyone else in the room, was on the same page.
“I share the call of the PSC and POC and most importantly the President [Duterte], to unify and win as one,” he said. Ramirez also led an assessment workshop where NSA heads gave updates on their teams’ progress. PSC Commissioners Celia Kiram, Charles Maxey, Ramon Fernandez and Arnold Agustin facilitated the workshop by addressing their respective clusters. Ramirez, meanwhile, reiterated that the government hasn’t been remised of its support to Rio Olympics weightlifting silver medalist Hidilyn Diaz, who, through social media, sought financial support for her 2020 Tokyo Olympics campaign. “The government has been very supportive [of Diaz], “ said Ramirez, adding that Diaz receives one of the highest allowances among
members of the national pool. The PSC, Ramirez stressed, rarely turns down any of Diaz’s request for her training and qualification for the Tokyo Games. For this year alone, Ramirez said the PSC has given Diaz close to P4.5 million to fund her training in Hainan and Guangxi in China, as well as the salary for her foreign coach, Julius Kaiwen Gao. A new weightlifting gym inside the Rizal Memorial Sports Complex was constructed by the PSC upon Diaz’s request. “Hidilyn receives support from the PSC and the Philippine Air Force being an enlisted personnel,” Ramirez clarified. For her Olympic silver, Diaz also receives support from private companies like the MVP Foundation, and Alcantara and Sons.
IN DEEP TRAINING
Manny Pacquiao sweats it out in training with Buboy Fernandez on Tuesday afternoon in a Pasay City gym as the fighting senator prepares for his World Boxing Association super world welterweight title fight with Keith Thurman on July 21 at the MGM Grand in Las Vegas.
Aoyong, Singson lead winners at Jungolf
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AFAEL AOYONG pooled 80 Molave points while Mafy Singson assembled a 103 as they ruled their respective divisions to lead the winners in the inaugural Fil-Am Jungolf Invitational at Camp John Hay (CJH) and Baguio Country Club (BCC) courses on Tuesday. Aoyong fired 41 points at John Hay then added a 39 at the short but tricky BCC layout to beat Anthony Garcia II by five in Fil-A division (17-18 years old) of the tournament held as part of the Fil-Am foundation’s commitment to help develop young golfers for future national teams. Garcia shot 37 and 38 at CJH and BCC, respectively, for a 75. Singson, a member of Team The Country Club (TCC), matched Laurea Duque’s 54-point effort at
John Hay but shot a 49 at BCC against the latter’s 43 to claim the Fil-B crown (15-16) with a 103 in the 36-hole tournament which drew close to 100 young players from all over the country. Arnie Taguines, another TCC mainstay, posted two 50s at both courses and snatched runner-up honors with a 100, while Duque settled for third with 97 points followed by Conrad Limcaco (80), Terence Farrell (75) and Tonton Fernandez (72). Other winners were (Fil-C 13-14) Sam Dizon (53-45-98), who trounced Tyler Zamuco (46-3480); (Am-A 11-12) Pocholo Medina (41-33-74), who beat Charles Limcaco (30-36-66); (Am-B 9-10) Alex Crisostomo (42-31-73); and Am-C 8-and-below) Andrei Sulaik (51-40-91).
Castro, Manotoc sizzle in SEAG elims
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.S.-BASED Luis Castro and Gab Manotoc matched three-under 69s as they grabbed a two-stroke lead over Dan Cruz at the start of the two-stage 30th Southeast Asian (SEA) Games men’s team qualifier at the Luisita Golf and Country Club in Tarlac on Tuesday. Castro, playing out of North Carolina, shot four birdies to negate a two-bogey mishap, while Manotoc, an Academy of Art University student in California, anchored his similar 34-35 card on a 20foot eagle putt off a solid 5-iron second shot from the rough at the par-five No. 5 with the duo hoping to ride on their big starts to build some momentum for the three coveted spots in the national team seeing action in the SEA Games the country is hosting from November 30 to December 10. But it’s still a long way to go for the 43 aspirants with three more rounds to be played in Stage I, where the top 12 players plus ties and players within 10 strokes of the leading scorer will advance to Stage 2. After Stage 2, set from June 10 to 13 also at Luisita, the top 3 players with the total combined scores from the two elims will make the SEA
Games men’s squad. The tight, hazard-laden Robert Trent Jones Sr.designed layout will also host the SEA Games golf competitions for both men’s and women’s. Cruz, meanwhile, mixed three birdies against two bogeys to stay in early contention with a 71, while Kristoffer Arevalo blew an impressive 33 start with three bogeys at the back as he settled for a 72 in a tie Carl Corpus, who also wavered with a lasthole bogey for a 35-37. Aidric Chan, the reigning national junior champion, also floundered at the back after a fine 34 frontside, making three straight bogeys from No. 12 to hobble with a 73 and drop to joint sixth with Paolo Wong, Edward Dy, Jhondie Quibol and Lanz Uy. Vince Lusterio and Alex Bisera turned in identical 74s, Ryan Monsalve and Santino Laurel put in a pair of 75s while Don Petil, Rolando Bregente, Sean Ramos and David Guangko struggled with 76s to fall seven strokes behind in the tournament organized and conducted by the National Golf Association of the Philippines and sponsored by the MVP Sports Foundation, the PLDT Group, Cignal and Metro Pacific, and hosted by Luisita.
Petro Gazz looks to sustain hot start
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OP meets bottom as streaking Petro Gazz faces struggling BaliPure even as BanKo-Perlas tries to pounce on a depleted Motolite side in the Premier Volleyball League Reinforced Conference eliminations at the Flying V Center in San Juan on Wednesday. With imports Wilma Salas and Janisa Johnson combining well and drawing solid backup from the locals, the Angels rolled past the Creamline Cool Smashers, the BanKo-Perlas Spikers and the Motolite Power Builders to seize early control in the double-round elims of the season-opening
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conference of the league organized by Sports Vision. While they expect a strong bounce back from the Water Defenders, the Angels, who also boast of Jeanette Panaga, Jovie Prado, Cherry Nunag, Djanel Cheng and Jessey de Leon, remain the odds-on favorites in their 3 p.m. showdown with the latter also out to keep their imposing run that featured three straight-set romps. BanKo-Perlas, meanwhile, hopes to recover from the four-set setback to Creamline last Sunday as it tries to go even at 2-2 against Motolite in their 5 p.m. face-off.
VISAYAN SWING GETS GOING T
HE local top guns and a slew of foreign aces aim for a strong start coming off a long break, all primed up to get into the mix in pursuit of the crown in the International Container Terminal Services Inc. (ICTSI) Club Filipino de Cebu Invitational which gets going on Wednesday in Danao City. Jhonnel Ababa braces for a fiercer challenge from the rest of the 79-player starting field, which he bested via an eight-under overall card in the rain-shortened inaugurals of the event last year. Though the organizers pushed the tees back to make it more challenging, Ababa still believes he can do it again even via full route. “I like my chances [to score a repeat]. I think 12-under will win it,” said Ababa, who, however, stressed the need for his putting to click to reign again in the event serving as the third leg of the Philippine Golf Tour’s (PGT) milestone 10th season and the kickoff leg of a four-stage Visayan swing. Emphasis will also be on precision at the tight, tricky layout, which also requires course management with the reachable par-5s and dogleg holes posing as baits for those who would take the risk. “If others will opt for safe shots of lay-ups, I would rather attack them with my driver for possible shots at an eagle,” Ababa added. That makes the first round quite interesting with the likes of Americans Lexus Keoninh, Charles Lee, Pete Vilairatana and Sean Talmadge, Aussies Fidel Concepcion and Calum Junifer, Koreans Hwang Myung Chal, Kim Young Hyun, Park Jun Sung, and Japanese Ryui Hashimoto, Makoto Iwasaki, Yudai Suzuki, Kei Matsuoka, Kanata Nakagawa, Ryo
Nishimura and Raiki Okamoto expected to likewise bank on their long games to fuel their respective title bids in the P3-million event sponsored by ICTSI. Others looking for a big start are Emilio Parodi of Argentina, PGT Q-School topnotcher Marcos Pastor of Spain, Thai Pachara Sakulyong and Peter Stojanovski of Macedonia along with the event’s six invitees, including PGT Asia leg winner David Gleeson of Australia, Mateo Gomez and Sebastian Lopez of Colombia, Englishman George Twyman, Jack Sullivan, also from Australia, and former national champion Lloyd Go. But the rest of the locals are ready to slug it out and foil the foreign aces’ drive, including Jay Bayron, Tony Lascuña, former Philippine Masters titlist Jerson Balasabas and PGT Asia leg winners James Ryan Lam, Justin Quiban, Joenard Rates and Rene Menor and PGT leg champions Zanieboy Gialon, Charles Hong, Mars Pucay and Manila-based Dutch Guido Van der Valk along with Rey Pagunsan, winner of the National pro-am with Aidric Chan at Splendido last month. From Cebu, the circuit, backed by Custom Clubmakers, Meralco, Champion, Summit Mineral Water, K&G Golf Apparel, BDO, Sharp, KZG, PLDT and MY Shokai Technology, Inc., will move to Bacolod Country Club from June 12 to 15, then to Negros Occidental Golf and Country Club from June 19 to 23, then to Iloilo Golf and Country Club from June 26 to 29.
PETRON MARKED IN ALL-FILIPINO P
COACHES and team captains from the Philippine Superliga give their predictions for the upcoming All-Filipino conference. Still, Petron looms as the heavy favorite. ROY DOMINGO
ETRON is expected to have a hard time defending its crown when the Philippine Superliga All-Filipino unfurls on June 15 at the Filoil Flying V Centre in San Juan. Head Coach Shaq de los Santos admitted that the battle will be tough especially with Cignal, F2 Logistics, Foton and new team Marinerang Pilipina beefing up their rosters during the season break. Cignal secured the services of FilipinoAmerican playmaker Alohi Robins-Hardy, while the Cargo Movers remain intact and displayed eagerness to challenge the Blaze Spikers anew. Foton tapped University of Santo Tomas ace Eya Laure as well as collegiate standouts Laizah Bendong of University of the East (UE) and Arianne Layug, Justine Dorog and Marianne Buitre of University of the Philippines to form a lethal squad that will welcome the return of explosive spiker EJ Laure. Rookie team Marinerang Pilipina is also a threat as young guns Judith Abil, Caitlin Viray, Cesca Racraquin and Dimdim Pacres conspire
JHONNEL ABABA braces for a fiercer challenge from the 79-player starting field.
with veteran Ivy Remulla. De los Santos—who welcomes the return of Sisi Rondina, Buding Duremdes and Chin Basas—knows that the road back to the title won’t be easy. “I think it’s possible for us to be dethroned this conference. All teams are strong and it’s really hard to tell if we can keep our place on top,” Delos Santos told the Philippine Sportswriters Association Forum presented by San Miguel Corp., Braska Restaurant, Amelie Hotel and the Philippine Amusement and Gaming Corp. on Tuesday. “We can’t take this conference lightly. We have to work hard because other teams are also out to dethrone us,” de los Santos added. Also in attendance in the weekly forum were league chairman Philip Ella Juico and Diana Garcia of ESPN5. League ambassadress Rachel Anne Daquis agreed with de los Santos, saying that this conference is very tough as teams like GenerikaAyala, Sta. Lucia, United VC and PLDT all did their home work in the off-season.
AL MENDOZA alsol47@yahoo.com
THAT’S ALL
Warriors recapture momentum
WHEN the Warriors and Raptors play Game Three tomorrow (Thursday Philippine time), who are you going to bet for? The sure-ball type will go for the Warriors, the underdog lover Raptors. In short, if you bet with your wallet, go Warriors. If you bet with your heart, go Raptors. It’s a dictum as perennial as the cucaracha; the grass dies but not the ‘roach in a nuclear war. I knew that the Raptors were the long shot in Game One but I still picked Toronto to win. I won lunch after the game. I knew the Raptors were favored to win Game Two simply because they had momentum from that Game One victory. But I still chose Golden State. One, the Warriors are so proud they didn’t want to absorb back-to-back setbacks. Two, Golden State’s Steve Kerr is a nononsense coach when it comes to devising adjustments following a loss. And three, the Warriors are the defending two-time champions the last two seasons so that they can’t afford to come home emptyhanded in the Bay Area. After Monday’s Game Two, I won a bottle of wine from Mendosa, Argentina. (Yes, Mendosa in Argentina is with an S, not a Z.) By splitting their first two games, Golden State is more incentivized to prevail in Games Three & Four as both are to be played on the Warriors’ turf. The Oracle Arena will surely tremble in its very foundations to the tune of “We Will Rock You!” even before tip-off of Thursday’s Game Three. Steph Curry was not at his sharpest in Game Two but he still managed to toss in 23 points, including burying a third quarter-ending triple for Golden State’s 88-80 lead. His Splash Brod, Klay Thompson, was shooting threes, too, and issuing assists in helping ignite a 24-6 Warrior run for a 78-65 GS bubble middle of the third quarter. Kerr got a shocker, though, when Thompson landed badly in one play, hurting his leg in the third canto. He was immediately taken to the dugout for assessment. “It’s just a minor hamstring injury,” said Thompson. To which Kerr replied: “That’s a typical Klay. He can be half-dead but he will still say it’s just a minor thing.” Kawhi Leonard was in his usual element on Monday as when he was on Friday, firing 28 points after three quarters en route to 34 game-high points. He was also a perfect 17-for-17 at the line. But his efforts went down the drain as his usual back-up, including Toronto’s usually reliable bench, failed to consistently deliver this time. “Our overall offense couldn’t take off because we didn’t have enough defense,” said Toronto coach Nick Nurse, who also rued his boys getting into foul trouble early. Toronto had a measly 37-percent field goal shooting. The Raptors’ defense could hardly derail a single Warrior offensive, fueled by 34 massive assists. Kyle Lowry, a hero in Toronto’s 100-94 Game One win, fouled out with still 3:52 to go with Golden State up, 106-98. He had 13 points. “We were extra aggressive tonight,” said Warrior Draymond Green, who had 17 points and 10 rebounds. But he acknowledged though that his “aggressive defense” against Leonard fell short. Trouble is, Leonard just couldn’t do it alone. Thus, Thursday’s Game Three narrative bears watching in the race-to-four series. Another Warrior win could lure ill wind for the Raptors. Excoriate the demons—for Nurse? THAT’S IT Dottie Ardina, despite missing a Top 10 finish in the US Women’s Open in Charleston, South Carolina, remains an idol nevertheless. By making the cut, Dottie put the Philippines once more on the world golf map, recalling to mind the exploits on the world stage by Jennifer Rosales some years back. Mabuhay si Dottie!
T
HE world’s best player won’t be at the Women’s World Cup but the world’s best team will be, with both sides taking a stand for equality. The US national team, ranked No. 1 globally, will try to defend its title in soccer’s premier tournament, which kicks off Friday in Paris. While the Americans make their way around France for the monthlong event, back at home they’re all part of a lawsuit that accuses US Soccer of gender discrimination. Meanwhile, Ada Hegerberg, the first female Ballon d’Or winner for the world’s top player, won’t be accompanying Norway’s national team. She stepped away in 2017 because of what she perceives to be a general disregard for women’s soccer by the country’s federation. The crux of her frustration is the uneven pace of progress and strategy in the women’s game. Hegerberg, 23, is at the top of her game. She had a hat trick for Lyon in its 4-1 win over Barcelona in the recent Women’s Champions League final. In domestic games, she has 211 goals in 208 games. “We are happy for this debate to raise attention and respect for women’s soccer in the world, and I do view it as a big changemaker.” said Lise Klaveness, sporting director for the Norwegian Football Federation, “But I just wish she was in our team.” The US team hopes to collectively be a differencemaker, too. Twenty-eight members of the current player pool filed the lawsuit on March 8 in US District Court in Los Angeles, alleging “institutionalized gender discrimination” that includes inequitable compensation when compared with their counterparts on the men’s national team. Because the lawsuit is still in the early stages, it’s likely no significant movement will be made until the team returns home. Megan Rapinoe was asked whether the pay issue puts more pressure on the team—which will already be facing a strong field looking to topple the three-time World Cup winners. “I think that the huge media splash of the lawsuit is behind us and we’re obviously focused on the World Cup,” Rapinoe said. “But also it’s like this is our life, and there are a lot of things that we have to grapple and deal with: Family, friends, partners, media, pressures, games, World Cup, travel. So it’s just kind of just one more thing. This team always has a lot of media attention, and we’ve always had a lot of things on our plate so it’s not like it’s anything new, or all of a sudden we’re getting all the more attention. It’s sort of the same for us.” The 24-team tournament will be played at nine stadiums across France over the course of the next month, with the final set for July 7 in Lyon. THE LAST TIME. The United States won the last World Cup in 2015. Carli Lloyd scored three goals in the first 16 minutes to help give the Americans a 5-2 victory over Japan for their third overall World Cup title, most for any nation since the tournament was introduced in 1991. England was a surprising third-place finisher in Canada. VAR. In March, Fifa approved the use of video review for the World Cup in France. The Video Assistant Referee system, or VAR, was used at the men’s World Cup in Russia last year. PRIZE MONEY. The prize money for the World Cup will be $30 million, of which $4 million will go to the federation of the champion. While the total is double the prize money for the 2015 Women’s World Cup, it is a fraction of the $400 million in prize money for last year’s men’s World Cup, of which $38 million went to champion France. Fifa, soccer’s international governing body, says prize money for the 2022 men’s World Cup will be $440 million.
WORLD CUP’S ABOUT EQUITY Sports BusinessMirror
C4
mirror_sports@yahoo.com.ph Editor: Jun Lomibao
Police wants to link Neymar testimony to rape accusation R
TICKET FIASCO. Some fans who ordered tickets to World Cup matches were surprised last month when they discovered their seats were not together. The issue was especially problematic for families bringing young children. After an outcry on social media, Fifa said it would work with the local organizing committee to resolve the issues. Some fans recently reported tickets that had been delivered electronically were no longer available, with the message: “Fifa and the LOC are currently working on improving the seating arrangements for certain orders for a limited number of matches. If your order is affected, please expect to receive a dedicated communication shortly.” AP
NCAA recommends women’s wrestling as ‘emerging sport’ in three divisions
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HE NCAA committee on women’s athletics recommended on Monday that all three divisions add women’s wrestling as an emerging sport, a key step toward making it a championship-level sport. If the recommendation is approved, women’s wrestling, as well as acrobatics and tumbling, would be added as emerging sports August 1, 2020. A sport must have at least 20 varsity teams and/or competitive club teams to be considered for the program, and at least 40 varsity teams for NCAA championship consideration. The Wrestle Like a Girl organization and USA Wrestling said there are 23 NCAA schools with women’s wrestling teams, including Texas A&M and Colorado State. There are 13 other schools planning to add the sport either next year or in 2020-2021. The National Collegiate Acrobatics and Tumbling Association said 29 NCAA colleges and universities sponsor the sport. The emerging sports program, which offers sponsorship options and helps schools meet financial aid and other requirements, began in 1994. It has helped several sports have reached championship status, including beach volleyball and ice hockey. Equestrian, rugby and triathlon are all currently competing as emerging sports. A coalition of wrestling organizations and the US Olympic Committee submitted an application for
THE United States’ Carli Lloyd (right) celebrates with teammates during their match against Japan in the 2015 Women’s World Cup in Vancouver. AP
| Wednesday, June 5, 2019
emerging sport status in 2017. The committee said it applauded the continued growth of women’s wrestling, noting the sport is relatively inexpensive to sponsor and that doing so would add coaching opportunities for women. “This is a great day for wrestling,” said Rich Bender, executive director of USA Wrestling. “We are encouraged by today’s decision, and fully expect it to help accelerate the growth of women’s wrestling.” Increasing opportunities for women to wrestle has been a major focus for the sport in recent years after it was briefly dropped from the Olympic program in 2013. A lack of gender equity played a role in the decision by the International Olympic Committee. Six of the 18 weights contested at the last two Olympics, in London and Rio de Janeiro, were for women, and a women’s gold-medal match will cap the competition in each of the last six days of the tournament at the 2020 Tokyo Games. Japan has won 11 of the 18 Olympic gold medals given out in women’s wrestling. AP
SWIMMING LESSON Nidhal Khille, a Muslim
IO DE JANEIRO—Rio de Janeiro’s cybercrime police division wants Neymar to testify about a video he published with messages and images allegedly exchanged with the woman who accuses him of raping her in a Paris hotel. The police interview has yet to be scheduled. Investigator Paulo Sartori of Rio’s cybercrime police division confirmed to The Associated Press that two of his agents on Monday visited Brazil’s training ground, where the team is preparing for the Copa America. The rape investigation is conducted separately by the São Paulo state police. After the first reports of the rape allegation on Saturday, Neymar published a seven-minute Instagram video in which he denied any wrongdoing and showed messages and images he says were exchanged with his accuser. Images of the unidentified woman, some of them blurred because of sexual content, also appeared. The two policemen did not talk to journalists. Vinicius Rodrigues, a spokesman for the Brazilian Football Confederation said, “the CBF suggested that it [Neymar’s testimony to Rio police] be postponed.” Brazil plays friendlies against Qatar on Wednesday and against Honduras on Sunday. It opens the Copa America on June 14 against Bolivia in São Paulo. The woman told São Paulo police on Friday that Neymar raped her on May 15 at 8:20 p.m. at the
refugee, listens to her instructor, Kirby Frank, during a swimming lesson with other women at Trotter Family YMCA with the assistance of Interfaith Ministries on Monday in Houston. AP
Sofitel Paris Arc De Triomphe hotel. Earlier on Monday, a spokesman for Instagram said the social-media channel removed the video posted by Neymar for violating its rules. Neymar’s father and agent said his son should not regret posting the video, even if it means being prosecuted for revealing images of a private conversation. “I prefer an Internet crime than a rape crime,” Neymar da Silva Santos told TV Band. “He preserved his image, his name. He needed to defend himself quickly. It is best to be true and show what happened. We knew of the blackmailing, but not of the guts to go to police in a situation like this.” Santos insisted Neymar was set up by the unidentified woman. He said the player noticed something was wrong on the second day of their meeting in Paris. “She wanted him to go to the hotel again. He went and stayed for 10 minutes. He saw a cell phone against the wall, recharging. But then he noticed it was filming. She sent a message saying she has that video. She attacks him, he jumps to the bed and tries to calm her down. Asks her not to create a mess,” the father-agent said. “He then calms her down, leaves the hotel and asks for her return ticket. Neymar also tried to film the conversation, but couldn’t. After that second day they didn’t speak. She sent the threatening messages later.” Neymar’s father, and the player’s spokesman, Day Crespo, said they don’t know when the player will speak to police. Davi Tangerino, the player’s attorney, said Neymar will talk to police whenever investigators see fit.
“This incident will have its page turned soon,”Tangerino said. Yasmin Abdalla, the attorney of the accuser, did not reply to a request for comment. Later on Monday even more doubts were cast into the story. Lawyer Jose Edgard da Cunha Bueno Filho said in an
CELEBRATION East Carolina players celebrate after the team’s 12-3 victory over Campbell to win an NCAA college baseball regional final on Monday in Greenville, North Carolina. AP
interview with TV Globo that he left the case before the rape charges were made because he had disagreements with Neymar’s accuser. A document of his law firm shown by the Brazilian network said the reason for the termination of a contract with the accuser was her changing the initial complaints from assault to rape. AP
BusinessMirror E1 | June 5, 2019 • Editor : Tet Andolong
THE SOCIETY LOUNGE. 202 Peaklane’s well-appointed amenities include this well-dressed lounge tailor-fit to the residents’ need for spaces to conduct meetings or academic-related preparations and activities.
WELCOME TO A REDEFINED
DAVAO LIFESTYLE
Noted high-end developer Anchor Land introduces new development in the dynamic Davao City
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By Rodel Ambas
F there’s one city in the Philippines that’s getting a lot of press coverage at the moment, then definitely it is Davao.
Not only is this southern charmer considered the country’s second seat of power, its business and economic prospects are also as bright as ever. Indeed, the phrase “forward-looking businessoriented metropolis” is perhaps the best description for this dynamic city. Thanks to the efforts of its local government, Davao was conferred the 4th Most Competitive City for 2018 in the Highly Urbanized Category during the 6th Regional Competitiveness Summit organized by the Department of Trade and Industry. Davao has also been consistently in the top 5 list for the past 3 years. When it comes to infrastructure, Davao is certainly
experiencing a prolonged period of renaissance. Perhaps the most important project to date is the 44.6-kilometer Davao City Bypass Road, the construction of which will commence in 2019 and aims to not just mitigate traffic congestion within the city, but also improve the transportation logistics for the whole Davao Region. Then there’s the 19.8-kilometer Davao City Coastal Road Project, which will run along the shoreline of the city, from Talomo to Poblacion, and is expected to be completed in 2021. Also under study is the 23.3-kilometer Davao City Expressway, which is planned to have three phases and is targeted to improve traffic within Davao City by connecting its port directly to the outer parts of the city. Davao’s own airport—Francisco Bangoy International Airport—is also the country’s third busiest after NAIA and Cebu-Mactan. It currently serves seven airlines, three of which are foreign carriers, and is handling between 3 and 4 million passengers annually. To cope with the increasing passenger volume, the government is undertaking the Davao Airport Operations, Maintenance and Development Project by the start of 2019. The new design capacity will be significantly increased to 17.9 million passengers annually—more than 500 percent capacity improvement—which is based on the airport’s projected demand by 2045. With Davao’s business environment on a high note, it is not surprising that many of the country’s top real estate developers are bullish on the city’s prospects. One of these real estate players is noted high-end developer Anchor Land, the name behind such successful projects in key areas in Metro Manila. Among these developments include Anchor Skysuites and Oxford Parksuites in Binondo; Admiral Baysuites along Roxas Blvd.; Monarch Parksuites in Bay City; and Clairemont Hills in Greenhills, San Juan.
Business-forward lifestyle, now in the south
ANCHOR Land’s new project in Davao, its first foray outside Metro Manila, is 202 Peaklane, a two-tower, 28-story residential condo development set to elevate the city’s lifestyle. Boasting topnotch amenities that will raise the bar in terms of residential offerings, 202 Peaklane’s unique selling point is its selection of investor-friendly, income-generating units. According to Anchor Land president Elizabeth Ventura, when the company designed 202 Peaklane’s unit offerings, they considered the current market demand. “For instance, we decided
ELEVATING TO A BUSINESS-FORWARD LIFESTYLE. 202 Peaklane is Anchor Land’s pioneer project in Davao City that will offer the best accommodation handcrafted for students, tourists, expatriates, entrepreneurs, and starting families.
THEATER/KTV LOUNGE. This theater within 202 Peaklane is designed for an unrivaled cinematic experience in town, which can also be utilized for KTV parties with friends and loved ones.
GAME ROOM. To promote a balanced lifestyle, residents may spend quality time over board games and table games in this leisure zone.
to have practical-sized units, around 25 sq. m., which are aimed at students at nearby colleges and universities [Ateneo de Davao University is in fact just a pedestrian-lane away] and have been designed to comfortably house four persons.” Dubbed the Lifestyle Suite, this unit features built-in double-decker beds, cabinets big enough to accommodate belongings of up to four persons, and desks designed for dining and study. These units, according to Ventura, are ideal for students and visitors looking for quality lodging in the city and are also a profitable rental opportunity for investors. The Premium Suite, meanwhile, is a hotel-like residence complete with two beds and multi-functional desk ideal for dining and work. The two-bedroom Family Suite (sized between 110 and 120 sq. m.), on the other hand, is fully fitted, that’s just right with spaces suitable for newly-weds and starting families looking for that perfect starting home in downtown Davao City. All units will be turned over fully furnished, which
PREMIUM SUITE. This type of residence has a hotel-like set-up, furnished with two twin beds, dining/work area and separated toilet and bath areas.
OUTDOOR AMENITIES. 202 Peaklane offers a range of outdoor amenities complemented with a breathtaking view of Davao skyline and picturesque seascapes. These amenities include a 25-meter lap pool, a kiddie pool, a wet play area for kids, and a social zone for quality time with family and friends.
means that by the time the investors receive their keys, they can easily earn rental income. “It’s very efficiently planned for an investor that when you look at the setup, you don’t have to prepare anything; the unit’s already prepared for you.” When asked why Anchor Land chose Davao over other cities in the south, Ventura said there’s definitely a demand for this sort of elevated lifestyle product in the city. “We see that the city is very business-forward, and we see 202 Peaklane as a business-forward residential project, something that will allow our local clients to live a convenient and at the same time an upgraded lifestyle in a very progressive and modern city as how Davao is envisioned to be in the years to come,” Ventura said. She added that the locals are very excited about these kinds of high-end offerings, so when Anchor Land launched this project, they made sure that it is such a quality investment, something that the locals will regard highly. Aside from the locals, 202 Peaklane is also
LIFESTYLE SUITE. This business-ready unit is complete with two double decks, cabinets, and dining/study areas ideal for two to four occupants, as well as separated toilet and bath areas.
designed to cater to the needs of the huge influx of investors and visitors in Davao City. In fact, 2.4 million tourists visited the city in 2018, according to Generose Tecson, Davao’s City Tourism Operations Office (CTOO) head. They are targeting to reach 2.8 million in 2019. Many of these tourists demand high-quality accommodations, something which 202 Peaklane will be able to deliver through its Premium Suites.
Why Davao?
VENTURA admitted that Anchor Land was open to any opportunity to develop a project anywhere in the Philippines. “It’s just that it is about perfect timing. We saw that Davao is ready for the progressive lifestyle that 202 Peaklane will showcase. Indeed, building such a high-quality development in Davao is too good an opportunity to pass up for Anchor Land, which incidentally gives the company a chance to show its local clients its unparalleled brand of customer service—something that it is extremely proud of according to Ms. Ventura. “We have made a name for ourselves because of the quality of service we show our customers,” she said. “We’re conscious about our clients’ needs, not just their lifestyle but their living conditions as well. It is something that we do by heart.” In the process, the company’s business philosophy broadens its horizons, according to Ventura, something that enables them to learn more from what they have previously built, perform the same kind of service to a new market and new clientele, understand their needs, and do it by heart. Having built a good reputation and gained lots of experience through its successful projects in Metro Manila, it is safe to say that the real estate market can expect plenty more impressive developments from Anchor Land in the years to come.
Business
E2 Wednesday, June 5, 2019
REAL ESTATE + TECHNOLOGY Amor Maclang
FIRST DIBS IN REAL ESTATE
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Part One
ECENTLY, top leaders in the technology field, came together to chat during a Fintech Philippines Mixer about the role of technology in real estate. The three leaders who came together were Mark Vernon (MV), currently starting in The Final Pitch and one of the Fathers of Fintech in the Philippines; Edison Tsai (ET), executive director of Seed In and a leader in crowdlending in the Philippines; and Ida Ceniza Tiongson, president of Opal Portfolio Investments (SPV-AMC) Inc.
What is your interest in real estate? Smart cities?
MV: I have been buying real estate for a number of years, with variable success. I own properties in six different countries for investment, with accompanied problems, such as transfer of funds for either buying or selling, fees, currency exchange etc., in the last few years
I have bought a number of condos in Philippines. ET: I have been a tech entrepreneur while my partner is a realestate developer. As his real-estate portfolio increases, we looked at how can we use technology to bring more efficiency for the tenants and visitors. IT: We wear two hats. We have real-estate assets nationwide apart from being a creditor to several corporations who are in the realestate business. As a creditor, we also structure deals with various real-estate businesses ranging from malls, to horizontal (subdivisions) and vertical (buildings) structures. For us to complete our assessment, there is a need to ensure we have thor-
EDISON TSAI
MARK VERNON
ough understanding of updated/ recent developments such as what constructions/projects are happening in the area, interest of investors both foreign and local, checking the market on demand and supply, as well as upcoming regulations e.g., taxes which may affect the local community or industry in general.
What problems can be solved by technology in real estate and smart cities?
MV: Transfer of funds, best done via Bitcoin or a smart contract that releases funds on successful transfer of property, via an oracle that recognizes the fact. No need for lawyers (which can account for up to 1 percent of the price), or escrow. Payments of fees, taxes etc., with or without smart contact. Raising of money to buy land, build on land or expand existing real estate. Fractional investment in real estate — spread your risk over different areas. Permissioned blockchain use in government record keeping...Or… The holy grail of real-estate ownership — property records stored on the blockchain, owned by the user
with control of transfer to other users without intervention by government. This will prove difficult unless governments can be guaranteed a way of receiving their cut of any proceeds, but could be governed by smart contract. ET: Our team envisioned Limestone Network to be the final solution that resolves existing challenges faced by governments, real-estate developers and estate management service providers. When Limestone Network is implemented into a real-estate project or existing infrastructure, it will allow the facilities management to be taken to a simpler yet more secured level. Businesses, retail shops, building facilities, consumers, tourists and the daily visitors would be able to interact with each other in a smarter and more effective manner to provide a meaningful smart city experience. Some of the use cases that Limestone is rolling out includes a digital passport, payment solutions and an Open API for blockchain developers to build on top of us. IT: Technology has played and will continue to play vital role in real estate. In fact technology is predicted to increase exponentially
IDA CENIZA TIONGSON
given the weaknesses and problems continue to be faced by the industry. Technology can help lessen or even solve critical problems as we have seen in some countries. Problems include wrong information, fake titles, lack of transparency, late information, lacking data, etc. Marketing—Easier to reach desired target market. For example if say targeting AB market, data needed may include say who are the top professionals and so on. Getting the right data at the right time means that you have high probability of success. With technology, data gathering and matching demand and supply make life easier to hone on specific target market. Credit information—the fast and efficient CI information provide easier study on client’s creditworthiness especially for those who wish to avail themselves of real-estate financing. This means it becomes easier for us to assess with updated information whether a particular client may have better chance of being able to repay if properties are purchased by them say on installment basis. Project plan—what is becoming popular is for projects to have an app. This means users can as-
sess what the project is about, the completion and amenities project is offering. With app, it can also provide update to clients. Its good for consumers having access to information about the project and what projects can offer which makes decision-making on closing deals faster. Palatability to the market is better appreciated and that means better business. Payment system arrangement— Digital payment arrangement can now be made and becoming more popular. It saves client from tedious physical transfer of funds to transferring digitally without leaving your location. Smart cities—in the government’s pipeline is Teching-Up Philippines 150 cities. One of the plans of this project is to have technology assist in having consumers and businesses access to information. Information of which can help in decision-making where to buy, sell, develop in cities which fits consumers requirements. This will make not only the cities competitive but also investor friendly. Information gathering—Voluminous paper and paper trails can be lessened by the use of blockchain or saving information via cloud.
Cemex commences $235-M cement line in Antipolo
IGNACIO MIJARES (left), president and CEO of Cemex Holdings Philippines, while leading the symbolic shovel and capsule-laying ceremony. Joining him were (from left:) Mexican Ambassador Gerardo Lozano Arredondo, Joaquin Estrada, regional president of Cemex Asia, Middle East, and Africa, and Rizal Vice Gov. Reynaldo San Juan.
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EMEX Holdings Philippines (CHP) recently broke ground for the construction of a $235-million cement production line at its Solid Cement Plant in Antipolo, Rizal. With the theme, “Solidifying the Nation’s Future,” the groundbreaking ceremony highlights the continued confidence of Cemex in the Philippines. “The continuous investment and expansion of Cemex in the Philippines is a reflection of its profound commitment to help the Philippine government in its quest to build a stronger nation. With the expansion of our operations, we shall be able to support the current administration’s ‘Build, Build, Build’ infrastructure program,” noted Ignacio Mijares, CHP president and CEO, in his welcome address. Upon completion, the new production line is expected to in-
crease the total capacity of Solid Cement Plant from 1.9 million metric tons to 3.4 million metric tons per year. “The construction of this new line will help further build economic activity of the country, as well as help build opportunities for creating more jobs and improving lives. We want to continue to make remarkable contributions. We want to maintain our active role in supporting the development of this nation. We have been able to do that in the Philippines for the last 22 years and I am confident that we will be able to continue to do so through collaboration and partnership,” said Joaquin Estrada, regional president of Cemex Asia, Middle East and Africa. Also gracing the groundbreaking rites were some of Cemex partners including Mexican Ambassador Gerardo Lozano Arredondo,
Trade Assistant Secretary Anne Claire Cabochan, Public Works Director Reynaldo Tagudando, Environment Undersecretary Rodolfo Garcia and Assistant Secretary Nonita Caguioa, Rizal Vice Gov. Reynaldo San Juan, Antipolo City Councilor Loni Leyva and San Jose Barangay Chairman Ito Garcia. To help build this new cement production line, Cemex tapped one of China’s leading construction firms, Sinoma CBMI Construction Ltd. “This is a rewarding outcome for the long-term efforts by the Cemex team and the Sinoma CBMI team,” said Tong Laigou, chairman and general manager of Sinoma CBMI. “I am aware of the profound responsibility for CBMI as the engineering, procurement, and construction contractor of Cemex’s new cement line. Rest assured that CBMI will keep in close operations with the Cemex team for the local health and environmental requirements. We will help CEMEX Philippines in delivering a brand-new, environment-friendly, beautiful and newly expanded Solid Cement Plant,” Laigou added. Cemex has a rich history of improving the welfare of those it serves through innovative building solutions, efficiency advancements and efforts to promote a sustainable future in more than 50 countries worldwide. In the Philippines, Cemex subsidiaries Apo Cement Corp. in Cebu and Solid Cement Corp. in Rizal produce and market a broad product mix of building solutions. These cement manufacturing plants carry the well-established cement brands Apo and Rizal. More information on Cemex is available at www.cemexholdingsphilippines.com.
OFFICIALS of Holcim Philippines and the Davao Constructors Association Center Inc. sign a supply agreement to provide reliable cement supply to builders in Davao. In the middle are Holcim Philippines President and CEO John Stull and DCACI President Antonio Uy, who led the signing ceremony.
Holcim supports Davao construction sector
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EADING building solutions provider Holcim Philippines Inc. recently sealed agreements in Davao to supply the cement requirements of a leading construction group and to support a government program for skills training as part of its commitment to support the city’s progress. Holcim Philippines will provide up to 400,000 metric tons of cement to the Davao Constructors Association Center Inc., one of the leading building groups in southern Mindanao with 179 members. Holcim Philippines and DCACI signed the partnership on April 24, renewing their supply engagement in 2018, which involved 320,000 tons of cement. DCACI President Antonio Y. Uy thanked Holcim Philippines for the partnership and lauded the company for introducing its new highperformance blended cement Solido as a better alternative to ordinary Portland cement for infrastructure projects. “The continued partnership of Holcim and DCACI is like Solido,
which gets stronger over time. Solido is a great innovation because of its environmental and cost advantage over portland cement which helps us take care of nature while having savings,” he added. Holcim Philippines also signed a partnership on April 23 with the Region 11 offices of the Department of Social Welfare and Development (DSWD) and the Technical Education and Skills Development Authority (Tesda) for training on forklift operations, masonry, carpentry, welding and plumbing for the community members of its Davao plant. Holcim Davao will provide funding assistance and host the training to be administered by Tesda for 25 beneficiaries, who will be certified as skilled workers. DSWD will select the trainees from barangays near Holcim Davao and provide assistance in mentoring and processing support for the employment of the beneficiaries.The collaboration is part of Holcim Davao’s Stakeholder Engagement Program, which aims to support community development through various in-
dustrial and construction-related skills training, livelihood and employment. Holcim Davao Plant Manager Xavier Kennedy said the recent partnerships are timely and relevant especially as the city’s construction industry is expected to sustain its healthy rise over the medium term. “These partnerships are a reflection of our commitment to support the development of our communities and the rest of Davao. These programs provide our partners with a steady supply of cement and equip members of the community with needed skills to participate in the city’s healthy growth,” he added. “The partnership is truly helpful to people. This was made possible in order to enhance and upgrade the skills and living standards of beneficiaries from the identified neighboring barangays. This will also increase their employability while strongly supporting the government’s ‘Build, Build, Build’ program,” said Ernesto S. Nadera, the acting chief of the Korea-Philippines Vocational Training Center of Tesda.
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Wednesday, June 5, 2019 E3
Alabang as growth corridor of luxury properties
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ECENT reports from the Knight Frank Prime International Residential Index said Manila’s luxury home market saw the most growth in the world, with increased land values for highend residential developments.
Also highlighted as the next hot spot is Alabang, where various major infrastructures are being developed, guaranteeing high profitability in the area. At the forefront of this unprecedented growth is Filigree, which has arguably established itself as the gold standard in luxury real-estate developments. Its projects are strategically located—all redefining luxury— with only the finest finishes, living spaces and amenities. Among these enviable locations is Filinvest City,
Alabang, where land values have risen by as much as 300 percent in the last six years. Now home to the most discerning few in the Metro, Filigree developments have outstanding property values and promise an impressive return on investment. Filigree boasts of upscale residential properties, all of which are value enhancers to the community where they are located. And what sets Filigree developments apart from others in the upscale market?
This developer is all about a rarefied yet sustainable lifestyle, wherein you can live in the lap of luxury while staying cognizant of the environment around you. Filigree is about attention to detail, exceptional craftsmanship, and world-class planning and design, with each project treated like a fine masterpiece and a livable work of art. Its developments are set in strategic locations—prime, progressive, central—but in quiet and secluded quarters for true cosmopolitan, genteel living where all is within easy reach. Take a look, for one, at its flagship project, the posh and greenoriented Botanika Nature Residences in Filinvest City, Alabang, which has seen a growing community for its first tower. With its three-star Building for Ecologically Responsive Design Excellence (Berde) rating for design from the Philippine Green Building Council, Botanika makes
INDEPENDENCE DAY SALE IN SANTA ROSA
luxurious yet eco-conscious living possible. Thus, you reduce your carbon footprint, save more on energy and ultimately contribute less to global warming. Botanika’s progressive architectural design, executed by Architecture International and Leandro V. Locsin and Partners, as well as its first-class amenities and well-appointed, luxuriously spacious condominium units make it even more desirable. The property’s value has risen to an impressive 80 percent. Bristol at Parkway Place, located at the power address of Corporate corner Parkway Avenues in Filinvest City, is now also ready for occupancy. The 40-story edifice with a notable architecture exemplifies the charming modern life. Astute investors have started to savor handsome returns and increasing property values of up to an astounding 30 percent. Bristol allows residents to live a life of ease, as everything is all within easy
reach. Amenities include a library; function room for private, intimate events; a sky lounge for a 360-view of the Alabang skyline and beyond; and the entertainment and media center for a movie night with family and friends. Soon, residents can delight in sumptuous dining and shopping right at their doorstep with Bristol’s retail plaza at the ground floor. Filigree does more than luxurious vertical developments. The Enclave Alabang is a 13-hectare exclusive, nature-inspired village in Metro South. The horizontal development has been selling fast since its launch, with only a few of the 218 lots still available. Residents will enjoy a higher standard in upscale village living—not to mention rising, by as much as 10 percent year-on-year, land values—owing to its prime location, world-class modern tropical design, verdant greenery and low-density master plan. It is the result of the creative
collaboration of H1 Architecture for the master plan, Budji+Royal Architecture+Design for interior design, and AECOM for landscape architecture—all the best minds in their field, who have come together to create a community never before seen in local luxury real-estate market. Aside from its distinct features, this remarkable project takes pride in a close-knit community, where residents will enjoy exclusivity while being in close proximity to urban centers like Filinvest City. All these exceptional qualities are testaments to the brand’s unwavering commitment in delivering only the very best: from planning and construction, project development and property management to groundbreaking and final hand over. As demand for luxury real estate in the country continues to rise, Filigree’s portfolio of unrivaled upscale developments is undoubtedly the best investment decision you can make.
Prime QC office tower highlights the city’s attractions to a range of occupiers
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GREAT bargains and great fun await at Greenfield City Santa Rosa, Laguna
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EEL free to splurge on great bargains and great food at Greenfield City’s Independence Day Weekend Sale from June 12 to 16. Release your inner-shopaholic with discounts of up to 80 percent at select shops at Paseo Outlets, Laguna Central and Arcadia. The following brands and their biggest outlet stores in the country will be participating in the sale: Adidas, Converse Philippines, Oakley Vault, Giordano and Nine West. The country’s only outlet stores of Pottery Barn, Pottery Barn Kids, West Elm, Speedo, American Eagle Outfitters, and National Book Store will also be joining. Other participating brands include Nike, Levi’s, Under Armour,
Mizuno, Fusion, Marks & Spencer, Debenhams, Bench along with the international brands they distribute locally, such as Mothercare, La Senza, Cotton On and Skechers. Liberate yourself from hunger with the unique flavors of the Southern Tagalog at food bazaars that offer popular Calabarzon delights, such as buko pie, longganisa, coffee, and much more. To unleash the festive spirit, there will also be performances of traditional Calabarzon dances during the event. The biggest film festival of Calabarzon, “Pelikultura,” will also take place and will feature independent films that tell stories of the region’s vibrant culture. As one occasion ends, another begins.
Father’s Day falls on the last day of the Independence Day Weekend Sale. Awaiting the men at Greenfield City are an outdoor barbecue with activities for the whole family, and an expo showcasing high-end cars and motorcycles. “This Independence Day, we’re giving everyone the freedom to have fun at our mallwide sale. We’re rolling in two more celebrations alongside it: Father’s Day and Calabarzon’s cultural heritage,” said Atty. Duane Santos, executive vice president and general manager of Greenfield Development Corp. Stay updated by following the Paseo Outlets social-media pages: @paseooutletsgreenfieldcity on Facebook and @paseoutlets on Instagram.
UEZON City has evolved in the past few years from a residential suburb into a favored office location for a range of occupiers prompting the construction in strategic areas of premier office buildings, like the 13-story Mpire Center on West Avenue. Business-process outsourcings, as well as large companies like insurance firms and real-estate developers have identified the city as a great location for a satellite office, observes Phillip Anonuevo, executive director of leading real-estate services firm Leechiu Property Consultants (LPC). Companies with manufacturing facilities in the Caloocan, Malabon and Navotas areas have also moved their corporate headquarters to the city as have the lawyers, architects, accounting firms and other professional services outfits that support the operations of the former. In the past few years, Quezon City has built up an inventory of office buildings that is expected to keep growing up to 2023, according to a recent study by LPC covering office supply in the Philippines over the next five years. Already ready for occupancy is the premier 13-story Mpire Center with a curtain-wall façade first popularized in the major business centers of Makati and BGC. Most of the occupiers inquiring about Mpire are surprised to find a building of such quality in Diliman, Quezon City, says Anonuevo. But it may only be a matter of time before other quality structures follow suit in the vicinity given its high accessibility. Mpire Center was developed and is owned by Mprime Development Corp. (which is an affiliated company of Monolith Construction and Development Corp., the construction giant that has been the key in transforming the Metro Manila skyline). Monolith has already set up its offices in the office tower offering a gross leasable area of 14,100 square meter. The building has been designed to be pre-certified for
LEED Gold, which translates to a range of energy saving features including double glazed windows, VRF AirConditioning, a garden roof deck, etc., for its occupiers. In addition, floor to ceiling glass will allow employees unhampered views of Quezon City. Another bonus for them will be the availability of a multipurpose court for basketball and other sports events, and ground floor retail including a Tim Horton’s coffee shop, according to Ayrton Zalamea, LPC manager. He is confident that buildings like Mpire are likely to boost demand further in the underrated business location of Quezon City.
Entrepreneur BusinessMirror
E4 Wednesday, June 5, 2019 • Editor: Vittorio V. Vitug
Novellino brand spreads ‘gospel’ of wine culture to Filipino homes
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By Rizal Raoul S. Reyes
Strong family-owned company
@brownindio
Contributor
N 1999, Nonoy Quimbo founded Novellino Wines guided by a simple vision of building a winedrinking culture among typical Filipino households amid the many varied choices and taste barriers. “Wine drinking has a perceived degree of sophistication, thus, making it an aspirational product. Through the foray of Novellino Wines in the Philippines 20 years ago, we have helped build a winedrinking culture among typical Filipino households,” said Nonoy, founder and chief executive officer of Novellino in a recent press briefing in Calamba City. Nonoy pointed out the company has been embarking on huge marketing campaigns to promote wine consumption in the Philippines. In fact, the Quimbo patriarch considers the spreading of the wine “gospel” a “missionary work.” His efforts to promote wine drinking yielded positive results as Novellino has helped grow the consumption per capita to 0.1 liters to 0.2 liters per year, albeit still considered small when compared to the 40-liter wine consumption per capita of most European countries but is nonetheless a feat for the nation more fond of spirits and beer. “In our second year of operations, we achieved profitability,” he said. At present, Novellino Wines pro-
duces millions of bottles of wine per year and outpaces the growth rate of the wine category, which in the last several years, has consistently been the fastest-growing category in the alcoholic-beverage market. For the long term, Novellino Wines will continue to convert Filipinos to wine drinking and, in the process-become the brand of choice for everything wine. “Filipinos love to drink. We drink when celebrating significant milestones. We drink during the holidays. And we drink on regular days. A typical Filipino gathering is incomplete without booze,” he said. With the entry of Novellino into the local market, wine drinking has been democratized. More than two decades ago, Nonoy recalled that bottles of wine during special occasions are only found on the tables of the rich and popular. Filipinos, heavy on hard drinks as well as beer, made very mainstream by popular breweries of that time, have no taste for wine. Furthermore, Nonoy observed that local tongues are not accustomed to the pale, bitter taste of the
FATHER and son team Chris and Nonoy Quimbo of Novellino Wines fame pose for a snapshot while pulling a cart loaded with boxed wine at their Laguna winery plant.
nectar, and bottles of wine are just too expensive. Nevertheless, all of these had changed because of the Filipinos’ exposure to different varieties. This has become a window of opportunity for Novellino Wines to expand in the local market as it is more affordable and suits the taste of the local market. As it celebrates its 20th year of being the market leader in the winery sector, Novellino is not going to rest on its laurels and will continue to innovate its products, with the possibility of introducing more aspiration products included in the pipeline.
7-Eleven brings community playground project to Iloilo
AT the groundbreaking ceremonies held recently are the local government officials of Lambunao led by Executive Assistant Emz Cabarles (right), Municipal Agriculturist Richard Catedral (second from right), Municipal Engineer Leo Leonida (third from right) and former Daanbanwa Barangay Chairman Camilo Gonzales (fourth from right) with the officers of Daanbanwa Elementary School.
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HILSEVEN Foundation Inc. (PFI), the corporate social responsibility arm of Philippine Seven Corp. (7-Eleven Philippines) is putting up another “Everyday Play” community playground, this time in the province of Iloilo. This is according to 7-Eleven Philippines Operations Director and PFI Vice Chairman Liwayway Fernandez who said that the project is in cooperation with the local government of Lambunao and Angat Buhay Initiative. The public play area is in Barangay Daanbanwa, Lambunao, Iloilo City. “This is the seventh project of the community playground and the first one in Visayas” said Fernandez. “Our goal is to bring back real-time play among children in different parts of the country. PFI believes that a venue for real play is still very important in this digital age,” she added. The Municipality of Lambunao was selected because of its initiative of building play gardens in adjacent schools and communities, which is aligned with the purpose and advocacy of PFI’s Everyday Play, “During the site and project development, community participation through volunteerism was very evident. The
project went on smoothly. Our projects are aligned. The support of the community was overwhelming. Several schools participated, with volunteer students and teachers helping out during the construction of the playground,” Fernandez said. The Everyday Play project is one of PFI’s long-running campaigns, which is currently the foundation’s core focus advocacies that began in 2015. To date, there are already seven 7-Eleven Everyday Play community playgrounds in the country located in Dasmariñas, Cavite; Pateros; Santa Rosa, Laguna; Caloocan City; San Fernando, Pampanga; Malolos City; and Iloilo City. PFI’s other community projects in several parts of the country include, among others, playground construction, mobile school donation, classroom donation, feeding programs, medical missions and disaster/relief operations. “PFI helps advocate that play is a valuable activity for kids in the development of their physical, emotional, social and cognitive skills. Through the Everyday Play community playground, we want kids to have a happy childhood, which is important in bringing out a positive attitude in them when they become adults,” Fernandez said.
Part of its innovations is the introduction of Novellino Wines on Tap, which are mobile kegs that will expand brand presence on the premise trade. This will enable consumers to try Novellino Wines without buying a whole bottle at a much affordable price. “Innovation has always been a priority for Novellino Wines. We believe that by constantly implementing fresh ideas on products and processes, Novellino Wines will continue to be relevant in the fast-changing Philippine market,” Chris Quimbo, president and general manager of Novellino Wines, said.
TODAY, Novellino Wines leads the winery industry in the Philippines, producing and selling millions of bottles of wine varietals per year through its state-of-the-art winery in Canlubang, Laguna. Built on a 1.3-hectare land, the winemaking plant is equipped with the latest Italian winemaking technology, which is responsible for the fermentation. The winery is one of the largest wine-production plants in Asia. It is the only winery of its scale in the Philippines and is future-proofed for the next five years, with excess capacity ready to meet the demand for more Novellino products in the coming years. “Our plant employs a sophisticated technology that is unparalleled in the country. We are even considered by foreign wineries as a thought leader in wine production, given the intricacies of producing sweet wine,” Nonoy said. Novellino Wines has gone a long way. From a small-scale business in a 300-square-meter space in Metro Manila, Novellino Wines now produces millions of bottles of wine per year, having a presence where Filipinos are, such as the United States of America, the Middle East and other Southeast Asian nations. “Thriving and succeeding in an industry where demand for a product is low is a huge feat for a family-run business like Novellino Wines. We owe it to our customers who continue to support our products, and we are happy to have helped fulfill aspirations of many Filipinos across all walks of life,” Nonoy said.
BPI Foundation and Bayan Academy launch book on social entrepreneurship
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HE BPI Foundation, in partnership with Bayan Academy, recently launched the book Technology and Social Market Innovations in Social Enterprises to highlight a milestone of collaboration between the two organizations. The BPI Foundation said the goal is to document the journey of disruptive social entrepreneurs with invaluable life experiences, lessons and insights. Authored by no less than the guru of social entrepreneurship in the Philippines, Dr. Eduardo Morato Jr., the book provides readers an opportunity to know the triumphs and challenges of social innovators who have successfully used technology, social and market innovations to create social impact and opportunities. Furthermore, readers will see the true-to-life challenges of these social entrepreneurs and how they have helped address social problems. According to Morato, a PhD graduate of public administration at the University of the Philippines, the book as a “learning paper features cases of 15 past BPI Sinag awards, which are condensed into five readings. In his remarks, Morato, a former dean of the Asian Institute of Management, pointed out that there is more to be done to further improve the financial and social aspect of enterprises to make them more sustainable. Ramon Jocson, a professor at the Ateneo Graduate School of Business, said the book written by his former professor seeks to address the “big gap to those who never have to those who are will-
ing to have,” said Jocson. “It is a daunting task,” he added. Ruth Callanta, president of the Center for the Community Transformation Group of Ministries, said the book can provide a “liberating experience to social entrepreneurs because it will strengthen their personality and character when they face life’s challenges. “It allows you to become a born-again entrepreneur,” she said. The book hopes to serve as an inspiration to its readers who can learn from both the difficulties and successes of these outstanding social entrepreneurs. The contents include technology innovations, technology assessment and management
(systems and technology; collaboration, performance management; organization and work force; business processes and culture), Sinag Social Enterprises Case Studies (Junk Not!; Carboncycle Processing Inc.; CalaBoo and Zidofa), social innovations, social enterprise strategies (claim the value chain; close the loop; convergence of forces; capture the critical forces and the Sinag social enterprise case studies.) Morato, who graduated cum laude in his economics degree at the Ateneo de Manila and his masters in business administration at the Asian Institute of Management, has currently authored 47 books, numerous articles, monographs, handbooks and over 500 case studies and accompanying texts. Rizal Raoul S. Reyes
www.businessmirror.com.ph
Millennials more generous than Gen X, Baby Boomers
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OSTON—Millennial entrepreneurs show higher levels of charitable giving and volunteerism than entrepreneurs of earlier generations, one of many differences uncovered in a new Fidelity Charitable® survey focusing on three generations of business owners. The data shows that younger entrepreneurs have different approaches to business—and to philanthropy—than those who came before.
The next generation of philanthropy
MILLENNIAL entrepreneurs are the most highly engaged and committed to philanthropy compared with Boomers and Gen X. More than 80 percent of Millennial business owners say that giving is a very important activity in their lives versus 57 percent of Gen X and 48 percent of Boomers. Nearly half say charitable giving is a critical piece of who they are. The survey found that: The median annual donation of Millennial business owners was $13,654 in 2017, more than twice the median donation of Gen X and Baby Boomer entrepreneurs—$6,200 and $6,192, respectively. Millennial entrepreneurs are generous with both their money and time, with 93 percent reporting that they spent time volunteering in 2017, compared to 74 percent of Boomers. Millennial business owners are already planning their charitable legacies. Nearly two-thirds plan to leave money to charity after they’re gone, versus 46 percent of Boomers. Millennials are also more likely to be serial entrepreneurs, with 61 percent having founded more than one business; almost two thirds of Baby Boomer entrepreneurs have founded only one business. “The philanthropic landscape is changing, and our research shows that Millennial entrepreneurs are shaping a new way for charitable giving. Millennials want to feel a connection to causes they care about. While these characteristics are not limited just to the entrepreneurs of the Millennial generation, their practical impacts on philanthropy become more pronounced through the lens of entrepreneurship,” said Pamela Norley, president of Fidelity Charitable.
Entrepreneurs’ philanthropy across generational divides
A CLOSER look at the generations shows a clear divide—traditional and intentional Boomers, optimistic and active Millennials and Gen Xers who bridge the gap, sharing qualities with the generations on either side. Gen X entrepreneurs are focused on their local communities, with 90 percent valuing charities that benefit the area where they live, compared to 79 percent of Boomers. Similar to Boomers, Gen X entrepreneurs tend to focus their giving on a narrow set of causes and prefer to support traditional, well-established nonprofits. However, more closely aligned with Millennials, Gen X likes to be hands-on, with 61 percent preferring to be personally involved with the charities they support. Millennial entrepreneurs want to be involved, with 90 percent valuing charities that offer meaningful volunteer opportunities. More than half say that volunteering is a chance to learn new skills, compared to a third of Gen X and only 20 percent of Boomers. Business Wire
TOP HR AWARD
NICO MALLILLIN, chief employee experience officer for Globe Fintech Innovations Inc. (Mynt), receives from the Employer Branding Institute-India and the World HRD Congress the Philippines Best Employer Brand for 2019. The award is given to top organizations in the Philippines that have shown exemplary leadership in human-resource management by applying innovative systems for employee development. “These are very great milestones. We received this award last year, and it presented an opportunity for us to further excel in our thrust for employee development. This is a true testament that culture is a big differentiator of employer branding,” Mallillin said in accepting the award.