Businessmirror June 17, 2019

GOVT STUDIES P208-B PROPOSAL TO BUILD TERMINAL 3 AT MACTAN-CEBU INTL AIRPORT By Cai U. Ordinario @caiordinario

A GMR Chief Executive Adviser Andrew Acquaah-Harrison explains what goes on in the navigation nerve center at the Mactan-Cebu International Airport at the recent briefing for journalists sponsored by the ADB and the US Embassy. CAI U. ORDINARIO

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N unsolicited Mactan-Cebu International Airport (MCIA) Terminal 3 project is now being evaluated by the National Economic and Development Authority (Neda), according to GMR Megawide Cebu Airport Corp. In a briefing in Cebu, GMR Chief Executive Adviser Andrew Acquaah-Harrison said the P208-billion extension involves the construction of a third terminal for the airport along with two runways and aircraft maintenance hangar.

Harrison said the project will also feature an underground train network and entails a reclamation of 300 hectares of land. The details of the project are part of a master plan that aims to extend the current concession agreement by another 25 years. “We hope we are successful and if we are, this airport [all three terminals] will have an overall capacity of 60 million passengers,” Harrison said. The update to the airport, Harrison said, aims not only to be able to serve more passengers but also create more jobs for local workers.

See “Terminal 3,” A2

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A broader look at today’s business n Monday, June 17, 2019 Vol. 14 No. 250

Global bonds push up Q1 PHL debt to $80.4B

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By Bianca Cuaresma

@BcuaresmaBM

HE Philippines’s debt stock against the rest of the world rose at 2019’s open, but the Bangko Sentral ng Pilipinas (BSP) said it remains a “prudent level” despite the increase. The country’s external debt— or all types of borrowings made by local residents from non-Filipino sources—stood at $80.4 billion by the end of the first quarter, reflecting an increase of nearly $1.5 billion, or 1.9 percent, from the end-December 2018 level of

$79 billion. According to the Central Bank’s report, the increase in the country’s debt stock resulted from the net availments of $1.8 billion as the national government raised $1.5 billion from the issuance of global bonds to fund the national

government’s general financing requirements, and positive audit adjustments. This, the BSP said, could have been higher if not tempered by the increase in residents’ investments in Philippine debt papers including government bonds issued offshore.

$79 billion The country’s external debt—or all types of borrowings made by local residents from non-Filipino sources—at the end-December 2018 level

The country’s external debt also rose compared to its year-ago level of $7.2 billion. “The governor stated that key external debt indicators remained at prudent levels despite the rise in external debt. Gross international reserves stood at $83.6 billion as of end-March 2019 and represented five times cover for short-term debt under the original maturity concept,” the BSP said in a statement. See “Debt,” A12

By Bernadette D. Nicolas @BNicolasBM

HE Department of Transportation (DOTr) said they have reached an agreement with owners of airline companies that sanctions must be imposed whenever there are “unreasonable delays” in flight schedules. Transportation Secretary Arthur P. Tugade said he and the owners of Philippine Airlines, Cebu Pacific and AirAsia also had a consensus that the on-time punctuality records of the airports and the airline companies must also be looked into. “We have agreed that there is a need for me to impose sanctions for the unreasonable delays on the schedules of the airline companies wherein they agreed that there should be penalty sanctions

PESO EXCHANGE RATES n

for causes attributable to the airlines themselves,” Tugade said in an interview at Radyo Pilipinas’s “Cabinet Report sa Teleradyo” over the weekend. “This is very understandable, indeed, because we cannot impose a penalty for the delay that is caused beyond the control or not within the ambit of the jurisdiction of the various airlines.” While the transportation secretary said they have yet to further thresh out the specifics on the sanctions in terms of the amount of fines that may be imposed on airlines, all parties concurred in the option of removing airport slots should an airline record an excesstive number of flight delays. Airport slots give the airlines the right to operate at a particular time of the day. See “DOTr,” A2

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PHL ASKS CANADA: GO SLOW ON CURBING STEEL IMPORTS By Elijah Felice E. Rosales @alyasjah

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S the Philippines looks to boost its steel production to supply both domestic and export demands, it has asked Canada—one of its potential markets—at the World Trade Organization (WTO) to go slow on implementing protectionist measures on steel products. In a statement obtained by the BusinessM irror, the Philippines requested Canada at its 11th Trade Policy Review to explain the increase in its use of antidumping measures over the past years. It pointed out most of Canada’s trade remedies are applied on steel, which the Philippines began exporting again in March after many decades. “Canada is an active user of trade remedies and it has shown increase in the use of antidumping measures in recent years with 83 definitive antidumping measures in place as of end of 2018,” the statement read.

DOTr, airlines agree on flight-delay sanctions

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Harrison said the introduction of a maintenance and overhaul repair of aircraft facilities is particularly important given that this will introduce new skill sets to workers. He said GMR has already submitted its answers to the questionnaire given to them by the Investment Coordination Committee (ICC) on the unsolicited project. “Neda has a subcommittee called ICC; it’s before this committee at the moment, they asked us for details of our stakeholder consultations,” Harrison said.

“More than two-thirds of these measures were applied on steel products. In this respect, the Philippines would like to know more about the factors that have contributed to the increase and encourages Canada to exercise circumspection in taking these measures,” it added. SteelAsia Manufacturing Corp. put the Philippines back on the map of steel exporting after delivering its first shipment of rebars to Canada in March. The shipment contained 10,000 metric tons of rebar valued at some P300 million. Rebars are used by construction firms to provide tensile strength for infrastructure, buildings, housing, among other structures. Canada was the world’s 16thlargest steel importer in 2017. Its purchases that year represented about 2 percent of all steel imported globally, according to the Global Steel Trade Monitor of the United States Department of Commerce. See “Steel,” A2

SSS pension loans hit P1-B mark

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BUILDING FRENZY Construction laborers are busy putting up a call-center building on Macapagal Avenue in Pasay City. The private construction boom in the Philippines has proceeded apace the government’s “Build, Build, Build” centerpiece program to fill in a serious infrastructure gap. The Department of Finance said the previous government should have exploited the low-interest rate regime in the past to source funds for this. Story on page A12. ROY DOMINGO

ELEASES under the Social Security System’s Pension Loan Program (PLP) have hit the P1-billion mark, with around 42,000 people availing since its implementation in September 2018, the SSS reported on Sunday. In a statement issued on Sunday, the state-run pension fund reported that as of May 27 this year, releases under its PLP have amounted to P1.006 billion with 41,926 pensioner-borrowers availing of the program. Based on SSS data, the agency’s Bacolod branch has the most number of approved loan applications at 2,696 and the highest amount of disbursed pension loans at P56.76 million. See “SSS,” A12

US 51.9230 n JAPAN 0.4791 n UK 65.8228 n HK 6.6331 n CHINA 7.5020 n SINGAPORE 37.9943 n AUSTRALIA 35.8944 n EU 58.5640 n SAUDI ARABIA 13.8450

Source: BSP (14 June 2019 )

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A2 Monday, June 17, 2019

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‘Private funds, govt data vital in infra gap’

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By Cai U. Ordinario

@caiordinario

HE infrastructure gap in the region would be difficult to close without help from the private sector and official government data, according to an expert from the Asian Development Bank (ADB). The gap in the region, which includes climate-adjusted estimates for the Asean-7, reached 4.1 percent of GDP, ADB Economic Research and Regional Cooperation Department’s Rana Hasan told Southeast Asian journalists in a seminar at the weekend. Hasan said it’s not only a matter of the funds; plugging

DOF. . .

Continued from A12

Grow and borrow

DOMINGUEZ also said the gauge to determine if the national debt is manageable is to measure it as a percentage of gross domestic product (GDP) or an economy’s ability to grow. “If we are not growing and borrowing, that’s really bad. But because we are growing, we have the ability to borrow more because we have the productive capacity to pay more,” he said. During the Arroyo administration, the debt-to-GDP ratio was at 75 percent, which went down to around 55 percent during the Benigno Aquino III administration, and continued to decline in 2018 at 41.9 percent under the Duterte administration, according to the DOF. He said the country’s debt-toGDP ratio is expected to further decrease to 38.6 percent by 2022. In January 2018, the Organisation for Economic Co-operation and Development (OECD) reported that the Philippine government should spend at least P24 trillion until 2030 to meet the country’s growing demand for roads, bridges and other public infrastructure. In its biennial economic outlook report, the OECD estimated the Philippines’s funding requirement at between P23.7 trillion and P27 trillion to bridge the so-called infrastructure gap and sustain the country’s economic growth.

Steel. . .

Continued from A1

Last year its steel imports ballooned 19.54 percent to 10.4 million MT, from 8.7 million MT in 2017. Canada imports steel from 100 countries and territories, with the US, China and Turkey as its top import sources. In spite of the objection to trade remedies applied mostly on steel, Manila recognized at the review its longstanding trade relations with Ottawa. Data from the Philippine Statistics Authority (PSA) showed bilateral trade between the two economies expanded 16.66 percent to $1.4 billion last year, from $1.2 billion in 2017. The improved merchandise trade was largely brought about by increased imports from Canada that grew 19.77 percent to $800.71 million, from $668.53 million. On the other hand, shipments to Canada also improved 11.45 percent to $600.28 million, from $538.6 million. “The Philippines and Canada have a longstanding bilateral economic relations,” the statement read. “Among the top traded products between the two countries are ignition wiring sets, copper ores, wood and airplanes.” The Philippines also commended Canada for advancing the interests of micro, small and medium enterprises in the WTO, as well as for staying on the side of the multilateral trading system at a time it is challenged by the trade war between the US and China.

infrastructure gaps requires fiscal reforms and increased investments that are not only the domain of the government. “If a country’s going to say ‘I’m just gonna focus on public-sector reforms,’ you’re not going to meet your targets, you have to get the private sector in,” Hasan said. “You need both the public and private

”If a country’s going to say ‘I’m just gonna focus on public-sector reforms,’ you’re not going to meet your targets, you have to get the private sector in... You need both the public and private sector to be really efficient.”—Hasan

sector to be really efficient.” Hasan recommended that in order to close the gap, Asean governments should undertake fiscal reforms to generate additional revenues for public-sector investments and promote private participation in infrastructure. These reforms could generate an additional revenue of 2 percent of GDP, enough to plug nearly half of the infrastructure gap. The remaining 2.1 percent of GDP can be filled in by the private sector. But in order for this to happen, private firms need to increase their

investments by almost six times. “Regulatory and institutional reforms are needed to make infrastructure more attractive to private investors and generate a pipeline of bankable projects for PPPs [publicprivate partnerships].”

Efficiency issue

MEANWHILE, efforts to improve planning, design and execution of infrastructure projects are needed to increase the efficiency of investment expenditures. This includes improving data collection. Hasan said through the course of conducting the ADB’s study on infrastructure investments, he and his team found out that few countries report on infrastructure spending. The Philippines is one of the few that includes a computation of both the public and private infrastructure spending in the National Income Accounts (NIA).

FDA tells Shopee, Lazada to stop selling health products online, warns of risks

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HE Food and Drug Administration (FDA) has warned major online selling platforms Shopee Philippines and Lazada Philippines, against selling health products without the requisite license to do so. The FDA issued Advisory 2019-154 dated June 11, giving the public a warning regarding the significant risks associated with the growth of the Internet sales medicines. In line with this, the FDA strengthened the enforcement of its rules on the online selling of health products. “The FDA, through the Regulatory Enforcement Unit, served

WPS. . .

Continued from A12

Lorenzana first revealed the sinking of the Filipino fishing boat on June 12, Indtependence Day. He then “condemned in the strongest terms the cowardly action of the Chinese fishing vessel and its crew for abandoning the Filipino crew.” The DFA has since fired off a diplomatic protest against China over the incident.

Fil-Chinese businessmen

THE Federation of Filipino-Chinese Chamber of Commerce and Industry Inc. (FFCCCII) on Sunday vowed to help the 22 Filipino fishermen by providing them financial, livelihood and food assistance. “The FFCCCII wishes to offer our sincere assistance and support to our fellow countrymen the 22 fishermen in the immediate rehabilitation of their damaged fishing boat, so that they can resume their livelihood. We wish to express our concern for their welfare and our solidarity,” FFCCCII President Henry Lim Bon Liong said in a news briefing at the “Pandesal Forum” in Quezon City on Sunday. “We hope that this civic and humanitarian gesture by the FFCCCII can help alleviate the plight of our unfortunate countrymen,” Lim added. Lim said he has contacted Lorenzana to help the business group reach out to the Filipino fishermen. Lim said the FFCCCII will shoulder the costs of the repair of the fishermen’s boat no matter

DOTr. . .

Continued from A1

“We have agreed to have an acceptable scale, mutually acceptable by the 24th of this month,” Tugade said. Should there be any delays, the DOTr chief said the airlines assured him they will ensure the welfare of all passengers in accordance with the Air Passenger Bill of Rights. For its part, he said DOTr will also distribute so-called malasakit kits for those passengers affected by flight delays.

Sangley option

IN a bid to decongest Ninoy Aquino International

and implemented Summons with Preventive Measure Order (SPMO) directing Shopee Philippines and Lazada Philippines under pain of direct or indirect contempt and/or other administrative sanctions, to immediately cease and desist from further online selling and offering for sale drug products until it has secured the appropriate License to Operate [LTO] from the FDA,” the agency said. “The continuous online selling of any of these drug products will place the lives of the general public in danger and at risk,” it added. Likewise, the FDA assured the public of the continued imple-

how much it cost. Lim, also the chairman and CEO of hybridrice producer SL Agritech Corp., committed to provide the 22 farmers with premium rice supply until they are able to fully regain their livelihood.

Tall tale–Drilon

SENATE Minority Leader Franklin Drilon, reacting to the version peddled by Beijing, denounced over the weekend China’s blatant attempt to “fool” irate Philippine officials protesting the Chinese boat’s abandonment of the 22 Filipino fishermen after ramming their boat in the West Philippine Sea. “We should hold China responsible for this incident. There is the United Nations, there’s an international forum where this can be raised,”Drilon said, citing existing international compacts. “Unang-una, sa lenggwahe ng kalsada, masyado naman tayong ginagago ng pamahalaan ng China [In street lingo, the Chinese government is making fools of us],” deplored Drilon. He stressed that the erring Chinese fishermen —some quarters insist they are Chinese militia posing as innocent fishermen—involved in the incident could be held liable, as the Filipinos could have died when the Chinese boat fled from the scene instead of rescuing them. “Such action constitutes a clear violation under International Law,” said Drilon, a former Secretary of Justice, calling the matter “an infraction of their duty under the International Convention on the Safety of Life at Sea (Sola) and the Unclos,” referring to the United Nations Airport (Naia), Tugade announced last week the long-delayed relocation of the General Aviation (Gen-Av) sector to Sangley Point in Cavite after the completion of the needed infrastructure work by November 2019. But over the weekend, he added they will be reviewing which agencies and aircraft shall be considered as GenAv, noting that there is a need to give exceptions to the Office of the President, Bangko Sentral ng Pilipinas and those intended for military uses. “Other than that, we will transfer the GenAv to Sangley and we will give them a choice... whether Sangley or Clark,” he said. Jet-prop operations of Philippine Airlines

mentation and monitoring of an effective drug regulatory system responsive to the country’s health needs and problems. “The FDA warns the public to exercise extreme caution and to avoid purchasing/consuming health products offered for sale online,” it said. To report continuous unauthorized sale or distribution of drug products, the FDA encouraged the public to e-mail the information to report@fda.gov.ph or through the online reporting facility, eREPORT, at www.fda.gov. ph/ereport. They may also call the Center for Drug Regulation and Research at telephone number (02) 809-5596 . Claudeth Mocon-Ciriaco

Convention on the Law of the Sea. Drilon dismissed claims that the Chinese boat accidentally hit the Filipino fishermen’s boat as it was trying to flee from the area where, supposedly, “seven to eight” Filipino boats had laid siege to it. If there were so many Filipino boats in the area, said Drilon, how come the 22 fishermen were rescued only after one hour—by a Vietnamese vessel? In short, stressed Drilon, the Chinese side’s account was “all lies,” and unacceptable. At the same time, Drilon declared the Duterte administration’s preferred bilateral approach as “ineffective” policy. “This case shows it’s not effective. China will keep ignoring us. Their economy is strong. Their armed might is strong. That’s why we should push for multilateral engagement here. In the first place, the Philippines is not the only claimant here. For the stability and peace of the WPS, many countries must be talking. All those involved in the disputes should sit down and talk.”

Group demands compensation

THE Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya) on Sunday called on the Chinese government to compensate the 22 Filipino fishermen for their loss. Aside from the damaged 14-ton fishing boat which costs around P2 million to P3 million, including fishing equipment, at least 3 tons or equivalent to 2,721 kilos of fish—costing more than half a million pesos—were lost because of the incident. With reports from Butch Fernandez and Jonathan Mayuga

and Cebu Pacific are also among those being eyed to be transferred to Sangley, according to Tugade. He reiterated his confidence in meeting the November completion target set by the President for the Sangley airport. Under the DOTr’s blueprint, the Sangley project involves construction works at the runway, apron, passenger terminal building, power supply and drainage system, among others. The recent developments followed President Duterte’s surprise visit at the Naia Terminal 2 at 2.a.m last Monday to get to the bottom of complaints of flight delays and cancellations.

The PSA includes estimates on public and private construction every quarter. This allows policymakers and planners to monitor how much is really being spent. “This is such an important thing and yet it’s not on the radar,” Hasan said. He expressed hope that policymakers can be made to realize “that if you can’t measure something, it would be difficult to do something about it.”

53 years of infra investing

BASED on a separate presentation by ADB’s Chief Sector Officer Robert Guild, the Manila-based multilateral development bank has been investing on infrastructure in the region since it was founded 53 years ago. In 2018, energy and transport were the top sectors focused on by ADB’s operations, which accounted for 23 percent each of ADB’s Ordinary Capital Resources (OCR) and

Asian Development Fund (ADF) operations. For transportation, ADB invested an average of $3.9 billion per year or about 26 percent of the bank’s total assistance in the 2010 period and onward. This investment has steadily increased from $800 million a year or 16 percent of the total in the 1990s and $2 billion a year or 26 percent of the total in the 2000s. In terms of energy investments, total approvals in 2018 amounted to $3.93 billion, including $1.23 billion from the Private Sector Operations Department (PSOD), which accounted for 31 percent of total energy-sector lending. The ADB’s lending for energy projects is expected to reach $3.6 billion in 2019 and $4.1 billion in 2020. It also expects to fund climate finance projects in the energy sector of around $2 billion in 2019 and $3 billion in 2020.

PhilHealth probe: NBI eyes other clinics By Joel R. San Juan @jrsanjuan1573

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HE National Bureau of Investigation (NBI) is set to expand its fact-finding probe on other hospitals and clinics with suspicious claims for dialysis treatment paid by the Philippine Health Insurance Corp. (PhilHealth). Justice Secretar y Menardo Guevarra confirmed this on Sunday following the indictment of the executives of WellMed Dialysis and Laboratory Center led by physician-businessman Bryan Sy for their involvement in bogus claims. The total estimated bogus claims from various culprits is at P154 billion. “My directive to the NBI covers not only WellMed but also other clinics and hospitals. After WellMed, the NBI will investigate other suspicious claims,” Guevarra told reporters. Guevarra expects more whistleblowers to come out and aid the NBI in its expanded investigation on reports that many other dialysis treatment establishments were involved in the irregularity. “Hopefully, the NBI can get the assistance of the new PhilHealth management team,” he stressed. Last week, PhilHealth board members and executives led by its president and chief executive officer, Roy Ferrer, resigned their posts. Aside from Ferrer, those who resigned were Jack Arroyo, elected local chief executive; Rex Maria Mendoza, independent director of the Monetary Board; Hildegardes Dineros of the information economy sector; Celestina Ma. Jude dela Serna of the Filipino overseas workers sector; Roberto Salvador of the formal economy sector; and Joan Cristine Reina Liban-Lareza of the health-care provider sector. Their resignation, according to Guevarra, will not prevent the NBI from continuing the investigation against them.

Terminal 3. . . Continued from A1

“We have provided answers to the very detailed questionnaire that was given to us. After the approval, it would then go for Swiss Challenge,” he added. Harrison said the additional terminal will serve domestic passengers. He said this is because GMR believes the future of tourism in Cebu and in the country in general are still local travelers. He said the airport, including domestic traffic, is expected to host 13.5 million passengers this year. This is already higher than their projections given that the traffic has increased by about 23 percent annually for the past three years. Currently, the passenger traffic in the airport is 12.5 million. In 2018, Harrison said, the

The NBI is looking into the possibility of holding the officials liable for violations of the Anti-Graft and Corrupt Practices Act “if they knowingly participated in this allegedly fraudulent scheme and benefitted from it.” Estafa and falsification of documents have been filed by the NBI against Sy and other WellMed officers last week. Meanwhile, the Regional Trial Court (RTC) of Manila City granted bail to Sy on the criminal charges filed against him by the DOJ. His lawyer, Rowell Ilagan, said Sy was released from detention by the NBI on Sunday morning. Sy was arrested on June 10 by the NBI in connection with the aleged fraudulent dialysis claims from PhilHealth involving patients who had already died. His wife filed a petition for habeas corpus before Branch 20 of the Manila RTC questioning the validity of his detention for lack of a warrant of arrest. The petition was denied by presiding Judge Marivic Balisi-Umali. On Saturday, however, Judge Jerome Jimenez of the Manila Metropolitan Trial Court Branch allowed Sy to post bail of P72,000 for his temporary liberty. However, Sy was not immediately released due to the absence of signatories from the NBI, according to his lawyer. Aside from Sy, named in the criminal complaints were WellMed executives Dr. John Ray Gonzales, medical director; Claro Sy, chairman; Alvin Sy, corporate treasurer; Therese Francesca Tan, purchasing officer; Dick Ong, administration officer; and Drs. Porshia Natividad and Joemie Soriano. A lso charged were whistleblowers Edwin Roberto and Liezel Aileen Santos. However, Guevarra said Roberto and Santos may apply as prosecution witnesses and may be placed under the government’s witness protection program.

passengers going through the airport was just below 12 million. “Essentially we have outgrown our own forecast. We are achieving roughly on international side around 23 percent passenger growth almost every year for the past three years. And we’re achieving domestic growth of about 13 percent,” Harrison said. “We’ve added 6 million passengers in five years.” The ICC is one of the seven subcommittees under the Neda Board, the highest policymaking body of the Neda. The Neda Board is chaired by the President. The ICC consists of the Secretary of DOF as chairman, with the Secretary of socioeconomic planning and Neda Director General as cochairman. The Executive Secretary, the Cabinet Secretary, the Secretaries of Budget and Management, Energy, Trade and Industry, and the Governor of the Bangko Sentral ng Pilipinas are also members.

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New officials gear up for elective posts

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FTER winning the midterm elections, lawmakers and new local government officials are now preparing to assume their posts on June 30. In the lower chamber, more than a hundred first-time members of the House of Representatives will take a three-day legislation course starting on June 22 or before the opening of the 18th Congress, which will start on July 22. The legislative course is organized by the House of Representatives and the National College of Public Administration and Governance of the University of the Philippines. New lawmakers are expected

to learn about the legislative process, including writing of bills, crafting the national budget, as well as ethics and how to engage with their constituents. Meanwhile, Camarines Sur Rep. Luis Ray Villafuerte is calling on outgoing local chief executives to form transition teams at once to ensure the smooth transition of power to their successors in their respective localities. Villafuerte, in a statement, said incumbent officials of LGUs who were defeated in last week’s elections should place the welfare of the people ahead of their personal and political interests. Jovee Marie N. Dela Cruz

Editor: Vittorio V. Vitug • Monday, June 17, 2019 A3

Govt hands out P5.775-M cash to 75 alleged ex-NPAs in Surigao del Sur

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By Rene Acosta

@reneacostaBM

HE Armed Forces of the Philippines (AFP) said about P77,000 in cash were given to each of the 75 alleged former members of the New People’s Army (NPA) in Surigao del Sur who, according to the military, surrendered to the government.

Capt. Regie Go, spokesman of the Army’s 4th Infantry Division, said about half of the 75 are members of the indigenous Lumad tribe. Go said each received P65,000, which came from the funds of the “Enhanced Comprehensive Local Integration Program,” or E-CLIP. He added the Provincial Government of Surigao del Sur also gave P7,000 each while the Department of Social Welfare and Development gave P5,000 to each of the alleged ex-NPA guerrillas. The total financial assistance amounted to P5.775 million. Go said each of the 75 also received a hygiene kit, vegetable seedlings, as-

sorted food packs and one-year membership certificates in PhilHealth (Philippine Health Insurance Corp.) Likewise, each of the 75 were awarded with scholarship commitments by Technical Education and Skills Development Authority (Tesda) in skills training and livelihood program. Go said in a statement Department of National Defense Undersecretary Reynalco B. Mapagu, head of the E-CLIP, led the distribution of cash over the weekend. The statement from the AFP didn’t carry comments from any of the 75 alleged former NPA guerrillas.

A4 Monday, June 17, 2019 • Editor: Vittorio V. Vitug

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Bizmen urged to help govt cut red tape

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By Elijah Felice E. Rosales

@alyasjah

RADE Secretary Ramon M. Lopez has called on businesses to do their part in cutting red tape by filing proper complaints to allow authorities to punish erring government officials. Speaking to Cebu-based businessmen last week, Lopez said the private sector can contribute to the improvement of doing business in the Philippines by reporting cases of red tape. He said involved government officials must be punished under the Ease of Doing Business (EODB) law, as they work against efforts to make life easier for businesses here. The EODB law has a “two-strike policy” for violations, as well as administrative and criminal liabilities for government officials found guilty of promoting red tape. “The law is in effect already, which entitles everyone to file a complaint. Your support, through filing proper complaints, is very

important in enforcing the law and to put those government employees and officials accountable and liable for wrong practices and making doing business in the country difficult,” Lopez said. Under the law, violators will be suspended for six months on first offense, and will be dismissed from service, perpetually disqualified from holding public office, stripped of retirement benefits, imprisoned for at least 1 year and penalized up to P2 million on second count. Lopez also reminded businesses that municipal licensing offices can no longer ask for the same documents required by the local government. State agencies and personnel are also prohibited to sell, offer or

MAKATI’S business district is seen in this BusinessMirror file photo. Trade Secretary Ramon M. Lopez appealed to businessmen to help the government eliminate red tape by filing complaints against erring officials.

recommend specific brands of firesafety equipment, such as fire extinguishers, to businesses.

Duterte govt must pursue urgent economic reforms—lawmaker By Butch Fernandez

@butchfBM

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EN. Sherwin T. Gatchalian, citing the March foreign direct investment (FDI) report, pressed the Duterte administration over the weekend to pursue immediate economic reforms. The chairman of the Senate Committee on Economic Affairs said the latest FDI report “strengthens our case for the need to reform the country’s relatively restrictive and less competitive economic policies.” In a statement, Gatchalian cited data from the Bangko Sentral ng Pilipinas which showed that the FDI net inflows in March 2019 declined by 13.9 percent to $586 million, from the $681 million recorded in the same month last year. Meanwhile, he added, the latest United Nations Conference on Trade and Development’s 2019 World Investment Report on special economic zones shows that while annual FDI flows to Southeast Asia went up 3 percent to a record $149 billion last year, inflows to the Philippines

and Malaysia declined. The senator recalled that during the 17th Congress, “we championed liberalization reforms that we believe would build an inclusive, efficient and competitive business environment in the Philippines. We pushed for measures including those amending the Foreign Investments Act of 1991, the Public Service Act, and the Retail Liberalization Act, among others.” Unfortunately, Gatchalian rued that “we did not have the luxury of time to pass these bills before Congress adjourned sine die.” Still, the senator struck a positive note, assuring that this coming 18th Congress which convenes on July 22, “we will be putting greater focus on implementing legislative reforms that will help break down barriers that foreign investors face in the country.” He added: “These changes are long overdue—we need laws that are responsive to the needs of the domestic economy and accommodate the dynamics of the regional and global environment.”

The trade chief said the government is working on reforms that will allow business registration

via smartphones. In collaboration with New Zealand, the government last year

produced an online portal for local government requirements for business registrations. It also launched a prototype of a smartphone application that will make it possible to register an enterprise in less than one hour. “When everything can be transacted through a smartphone 24/7, that is the ease of doing business,” Lopez said. “There are a number of government initiatives we are currently implementing. If properly executed [and] with your support, the whole business process—from starting your business to trading across borders—should become faster, easier and less costly,” he added. In line with its objective of cutting red tape, the EODB law standardized processing time for simple transactions at three working days; complex transactions at seven working days; and highly technical transactions at 20 working days. However, the law is not yet operational, as President Duterte has yet to name the director general of the Anti-Red Tape Authority. The Arta chief has the sole authority to sign and promulgate the implementing rules and regulations of the EODB law.

Taiwan rolls out campaign to entice more Filipino tourists By Roderick L. Abad | Contributor

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AIWAN is aiming to draw about half a million Filipino visitors this year with the official launch of its “Undiscovered Taipei” tourism campaign in Manila over the weekend. During the event held in Makati City, Taipei City’s Department of Information and Tourism (DIT) Yi-ting Liu told reporters that the number of visitors from the Philippines in 2018 grew by 44.13 percent to 419,105, from 290,784 in 2017. “If we talk about the Philippines only, for all the tourists that are coming to Taiwan, 91 percent go to Taipei,” he said, while citing that Filipinos posted the highest growth of arrivals from Southeast Asia last year. To sustain the momentum, the DIT aims to reintroduce the capital city to those who plan to revisit it and experience more of the local delicacies, old towns and even

places with hot springs. “There are more and more spots that the people who’ve been there for the first time, for sure the second time they haven’t been there,” he said. As part of the campaign’s launch here, more than 50 local travel agencies met with Taipei’s hospitality business operators to help boost the number of Filipino visitors to the capital city of Taiwan. The DIT gathered Taipei’s popular food and beverage businesses to showcase some of their authentic and classic dishes. It also relaunched YouTube sensation Mikey Bustos as the campaign’s ambassador. Meanwhile, a new product promotion for local travelers was announced to the Manilabased media. This is a joint initiative between Taiwan’s top airliner Eva Air and online travel agency Klook. Given that the DIT has been actively promoting Taiwan to the Philippine mar-

ket for the third time this year, it expects the Filipino tourist volume to increase by the end of 2019. “The number last year was 420,000 so I believe, this year, it could increase to 500,000. I believe there will be more,” Liu said. The number of Filipino travelers going to Taiwan has increased following the Taipei’s introduction of the visa-free policy, which is set to expire next month. Taipei Economic and Cultural Office in Manila Director Jerry Chuang hinted at the possibility that the visa-free policy could be extended given the queries his office receive from local tourists who want to visit Taiwan. “The visa-free policy has really brought Taiwan and the Philippines closer,” he said. “Our office, we try very hard to follow up. We have a lot of queries so we convey back to Taipei, that’s why we urge Taipei to make a decision soon.”

Labor rights issues top DOLE agenda DOT targeting air, sea connectivity for bilateral talks with Indonesia, Japan to emerging tourism sites in Mimaropa By Samuel P. Medenilla @sam_medenilla

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MPROVING international labor rights and employment opportunities are on top of the agenda of the Department of Labor and Employment (DOLE) during its bilateral talks with Indonesia and Japan at the 108th Session of the International Labor Conference (ILC) in Geneva, Switzerland. Labor Secretary Silvestre H. Bello III said his scheduled dialogue with Indonesian officials aims to renew their call to other members of the Association of Southeast Asian Nations (Asean) to make its instrument for the protection of migrant workers in the region legally binding. Asean members signed in 2017 a Consensus on the Protection and Promotion of Rights of Migrant Workers (ACMW). Among its salient features include the setting of minimum labor standards for migrant workers, regional cooperation against overcharging of recruitment fees and human trafficking, as well as database sharing. The instrument, however, drew criticism from some migrant advocates since Asean states are not mandated to comply with its provisions.

“What we [Philippine and Indonesia] want is for it to be legally binding and not just a consensus, as there are no legal implications if you will violate [its provisions],” Bello added. Both the Philippines and Indonesia are among the top-labor sending countries in the Asean region.

Pending memo

DURING his trip to Geneva, Bello said he will also meet with Japanese officials to expound on the provisions on their new Memorandum of Cooperation (MOC). Under the MOC, Filipinos belonging in 14 skill categories will qualify to apply for a special visa after they pass the necessary Japanese language proficiency exam and skill test. “We want to know what they mean with skills upgrading and up to what extent will it be,” Bello said. Bello said they hope to iron out all the details of the MOC so it could be implemented within the next two months. The DOLE earlier said over 300,000 jobs will be made available to Filipinos and foreigners under the new visa policy.

International probe

BELLO also said that the DOLE

is ready to face possible inquiries again from the International Labor Organization (ILO) over the alleged increase in the incidents of laborrights violations in the Philippines. He made the statement after local labor groups and even the International Trade Union Confederation (ITUC) expressed concern over the deaths of labor leaders under the current administration. The latest of the said incidents was that of Leonides “Dennis” Sequeña in Cavite, who was shot dead earlier this month while attending a workers’ meeting. According to labor coalition Nagkaisa, Sequeña is the 43rd labor leader to have died during the term of President Duterte. Local leaders said they may raise the issue during the ongoing ILC. The ILC started on June 10 and will end on June 21. “We understand their move since it is part of their advocacy,” Bello said. He said the DOLE is prepared to coordinate with the ILO if it would launch another inquiry. The last High-Level Mission conducted by ILO in the Philippines was in 2009 when it also looked into reports of labor-rights violations in the country.

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HE Department of Tourism (DOT) said it has strengthened the position of Region 4B as a world-class tourist hub by making its diverse attractions more accessible and ensuring that it is a safe haven for international and local visitors. DOT Region 4B officials and representatives of at least 10 air and sea transport companies met last month at the DOT head office in Makati. The DOT said they agreed to work together to upgrade tourist services through accreditation and increased connectivity. Tourism Secretary Bernadette Romulo Puyat said opening new air routes is vital to the Philippines’s aspiration to become a tourism powerhouse like its Asian neighbors. The private entities, including flag carrier Philippine Airlines and four other airlines and five shipping companies, pledged to comply immediately with accreditation requirements. Transport services are considered “primary tourism establishments” that need accreditation, pursuant to Republic Act 9593 or Tourism Act of 2009. With increased connectivity and accessibility, DOT Region 4B Director Danilo B. Intong said Mima-

ropa’s emerging destinations will gain global attention now enjoyed by Palawan’s Puerto Princesa City, El Nido, Coron and San Vicente. Among the emerging destinations “as fascinating as Palawan” are Romblon, Occidental Mindoro, Oriental Mindoro and Marinduque, according to the DOT. The region’s total tourist arrivals reached 2,547,047 in 2018, up by 22.97 percent from 2,071,244 in 2017. The bulk of the tourists visited Palawan’s renowned attractions like the Puerto Princesa Underground River, Tubbataha Reef, El Nido and Coron islands. Koreans, Chinese and Americans top the area’s foreign guests. In response to DOT’s challenge to make the whole Mimaropa region a major tourist hub, the transport companies assured they are planning to increase and expand connectivity, with the airlines and shipping lines adding more flights and opening new routes. Cruise and nautical tourism is a “very promising” market niche in the region, Intong said. The transport companies present in the meeting were AirAsia, Air Juan Aviation, Airswift Transport, Magnum Air (Skyjet) Philippine

Airlines, 2GO Group, Montenegro Shipping Lines, Navios Shipping Lines, Starhorse Shipping Lines and Starlite Ferries. “We are elated as we share the renewed optimism over the continued growth of tourism industry, which proves to be a key economic driver that can help uplift the lives of the poor in the countryside,” said Intong. The transport firms’ accreditation is not without incentives and benefits as shown by the success stories of DOT-accredited hotels and resorts who earned the Seal of Quality Facility according to DOT 4B’s Cecil V. Aranton. With DOT accreditation, the transport service provider automatically becomes eligible for membership in the Tourism Promotions Board (TPB), Aranton said. Also on hand at the meeting to discuss the marketing efforts of the TPB for Mimaropa were Mark Nicole Evangelista and Milo Oropeza. During the meeting, the Philippine National Police (PNP) as represented by P/Lt. Col. Robin Sarmiento of the PNP Mimaropa, assured the public that the region remains a safe haven for tourists, having one of the lowest crime incidence in the country.

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BSP confident Congress will amend agri-agra law

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By Jasper Emmanuel Y. Arcalas

@jearcalas

HE Bangko Sentral ng Pilipinas (BSP) expressed optimism that the 18th Congress will amend the agriagra law to make it easier for banks to comply with the law’s credit requirement. BSP Governor Benjamin E. Diokno said in a recent BusinessMirror Coffee Club Forum that the BSP will push for the amendment of the law, with the help of the measure’s main author, Sen. Loren B. Legarda. Legarda is moving to the House of Representatives in the 18th Congress as she was elected as representative of Antique’s lone district. “We will refile the [bill amending agri-agra law] and [Legarda] said she will amend it and she volunteered to sponsor the bill in the House of Representatives,” Diokno said. The BSP chief added that Legarda vowed to amend the law during a dinner she hosted for Diokno. He said there has been consensus among Monetary Board members that the agri-agra law, or the AgriAgra Credit Reform Act of 2009,

should be revisited due to its “unnecessary” consequences. The BSP said it would push for the consolidation of the required credit for farmers and agrarian reform beneficiaries. At present, the law requires banks to set aside 25 percent of their total loanable funds for agriculture and fisheries credit. Of 25 percent, banks are required to make available at least 10 percent for agrarian reform beneficiaries. “The agri-agra law’s intentions are good [but] its consequences are not necessarily good because it ties up a lot of resources. Some banks have a hard time lending to agrarian [reform] beneficiaries,” Diokno said. “Some banks are just paying the penalty because they cannot really implement the law’s requirements.

TRADERS in La Trinidad, Benguet, are busy sorting vegetables prior to delivery to lowland markets in this photo. The Bangko Sentral ng Pilipinas said it will push for the amendment of the Agri-Agra Reform Credit Act of 2009 so banks could easily comply with the law’s credit requirement. LAILA D. AUSTRIA

This is also problematic for foreign banks,” he added. Diokno said the BSP is eyeing to provide more flexibility for banks to comply with the credit requirement. “For example, a bank may be allowed to issue bonds which will be used to develop some areas,” he said. In 2018 universal and commercial banks’ compliance to the required lending to agrarian reform beneficiaries and the agriculture sector hit 1.17 percent

and 13.08 percent, respectively. The thrift banking sector tracked the universal and commercial banks’ performance, notching a 0.99-percent compliance rate for agrarian reform beneficiaries and 13.18 percent for the agriculture sector. The compliance rate of rural and cooperative banks reached 11.18 percent for credit to agrarian reform beneficiaries and 24.03 percent for the agriculture sector, data from the BSP showed.

Editor: Jennifer A. Ng • Monday, June 17, 2019 A5

Ubra: Average farm-gate price of broiler recovered in May

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HE average farm-gate price of broiler has returned to a profitable level, with quotations in other areas breaching the P100per-kilogram mark after a number of poultry raisers slashed their output or stopped producing altogether, the United Broiler Raisers Association (Ubra) said. Ubra President Elias Jose Inciong said the farm-gate price of broiler started to recover around the third week of May as supplies started to dwindle due to lower production by players, including integrators, who were discouraged by the glut in recent months. Inciong added that there was a “significant” reduction in the volume of dressed chicken in cold storage facilities, which reached an unprecedented 57 million kilograms (kg) in May. “The cut in production could be seen in the price of day-old chicks, which sank to P3 to P5 per head since no players wanted to load their stocks,” he told the BusinessMirror in an interview. “Frozen dressed chicken inventory also fell to 44 million kg on May 20, from about 54 million kg on May 13,” Inciong added. The Ubra chief said producers were also discouraged from reloading their stocks by the lower-than-expected gross domestic product growth in the first quarter and the minimal impact of the recent elections on overall demand. The average farm-gate price of regular-sized broiler as of June 14 was pegged at P102.33/kg while quotations for prime-sized chicken averaged P102.86/kg, according to the latest Ubra survey.

“The broilers being produced are smaller and it was difficult to find bigger birds, so the price increased,” he added. Broiler raisers have been reeling for months now from low farm-gate prices as overproduction, coupled with an increase in imports, caused a chicken glut. Prior to the turnaround in May, when farm-gate price started to hit more than P80/kg, average quotations for broiler was below the break-even level of P75/kg. Based on studies conducted by the Department of Agriculture (DA), the Philippines could experience a glut in chicken supply, with the surplus pegged at 135,851 metric tons (MT). The DA, using regression analysis, expects total broiler meat supply this year to hit 1.424 million MT, which is higher than the estimated total demand of 1.288 MMT. Ubra said more broiler raisers intend to reload their stocks in the coming months as reflected by the increase in the price of day-old chicks. As of June 14, Inciong said the price of day-old chicks jumped to P19 to P22 per head. “[Prices could remain at this level] maybe in another two to three weeks. The thing to watch would be the price of pork and fish. If those two commodities become more expensive, so will broilers,” he added. The average retail price of whole dressed chicken in Metro Manila wet markets as of June 12 reached P147.63/kg, the highest amount recorded by the DA since the start of the year. Jasper Emmanuel Y. Arcalas

A4 Monday, June 17, 2019 • Editor: Angel R. Calso A6

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Huge crowds march in HK, piling pressure on leader

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ONG KONG—Tens of thousands of Hong Kong residents, mostly in black, jammed the city’s streets on Sunday, demanding an end to a proposed extradition bill and the resignation of the city’s top leader. T he crowds, wa l k ing slowly and shouting “withdraw” and “resign,” spilled into the streets from downtown Victoria Park and began marching toward the Central district where the government headquarters is located. The demonstrators carried banners demanding that Chief Executive Carrie Lam resign and drop the legislation completely instead of just suspending it as she announced on Saturday. “Our demands are simple. Carrie Lam must leave office, the extradition law must be withdrawn and the police must apologize for using extreme violence against their own people,” said bank worker John Chow as he marched with a group of his friends. “And we will continue,” he said. Sunday’s march looked likely to match in scale one week earlier that brought as many as 1 million out to express their concern over the former British colony’s relations with mainland China. The rally drew marchers both young

and old. Few wore face masks or appeared concerned to hide their identities, in contrast with demonstrations a few days earlier where participants expressed worries over retribution from the authorities. Farther down the parade route, mourners lined up to lay flowers and pay respects at a makeshift memorial for a man who fell to his death on Saturday after hanging a protest banner that read in part, “Make Love, No Shoot” and “No Extradition to China.” The man slipped from the grasp of rescuers after clinging for a time to a scaffolding outside a shopping mall. He missed a big cushion set up to capture him, and was declared dead at a nearby hospital. “I’m really sad. I’m grieving,” said one visitor, Peron Kwong, after tying a white ribbon to a street rail. “As a person born and raised in Hong Kong, I’m heartbroken when I see Hong Kong become like this.” Pro-democracy activists were calling for a general strike on Monday despite Lam’s decision to suspend

THOUSANDS of protesters shouting slogans and carrying signs march on the streets against an extradition bill on Sunday, June 16, 2019, through Hong Kong. Tens of thousands of Hong Kong residents, mostly in black, have jammed the city’s streets on Sunday to protest the government’s handling of a proposed extradition bill. AP PHOTO/VINCENT YU

work on the legislation. Some labor unions, teachers associations and other groups were planning boycotts of work and classes. “We encourage all the public to carry on the campaign,” said Bonny Leung and other leaders of the prodemocracy Civil Human Rights Front. Many opponents of the extradition legislation are urging Lam to

step down and want her to drop the legislation, which many fear would undermine freedoms enjoyed by this former British colony but not elsewhere in China. “China just wants to turn Hong Kong into another Chinese city,” said Alex To, 54, who said he runs a small business. “Carrie Lam is just a figurehead. Everything depends on the at-

titudes of the leaders in Beijing.” After Lam announced she was suspending the legislation for the sake of avoiding more violence, Chinese government officials issued multiple statements backing that decision. Lam’s move appears to have failed to extricate her from Hong Kong’s toughest political test since the Com-

munist Party-ruled mainland took control in 1997 with a promise not to interfere with the city’s civil liberties and courts. Demonstrations on Wednesday turned violent, with dozens injured as police fought back with tear gas, rubber bullets and other forceful measures. Lam has said that the extradition legislation is needed for Hong Kong to uphold justice, meet its international obligations and not become a magnet for fugitives. The proposed bill would expand the scope of criminal suspect transfers to include Taiwan, Macau and Mainland China. China has been excluded from Hong Kong’s extradition agreements because of concerns over its judicial independence and humanrights record. Lam has sidestepped questions over whether she should quit and said she still plans to seek passage of the proposed amendment. She also defended how the police dealt with the clashes with demonstrators. But she said she was suspending the bill indefinitely. It was time, she said, “for responsible government to restore, as quickly as possible, this calmness in society.” “I want to stress that the government is adopting an open mind,” she said. “We have no intention to set a deadline for this work.” Many here believe Hong Kong’s legal autonomy has been significantly diminished despite Beijing’s insistence that it is still honoring its promises, dubbed “one country, two systems.” AP

Saudi crown prince says kingdom isn’t seeking war D

UBAI, United Arab Emirates— Saudi Arabia’s Crown Prince Mohammed bin Salman said in remarks published on Sunday that the kingdom is not seeking war in the region, but warned it will not hesitate to confront threats to its security. His comments came just days after the US blamed Iran for suspected attacks on two oil tankers near the strategic Strait of Hormuz, denouncing what it called a campaign of “escalating tensions” in a region crucial to global energy supplies. The US alleges Iran used limpet mines to target the tankers, pointing to black-and-white footage it captured that American officials describe as Iranian Revolutionary Guard troops removing an unexploded mine from the Kokuka Courageous. Iran has rejected the US claim that it was responsible for Thursday’s attacks, saying it stands ready to play an active and constructive role in ensuring the security of strategic maritime passages. Iran has also been accused of being behind the May 12 attacks on four oil tankers off the coast of the

United Arab Emirates. Two of those vessels belonged to Saudi Arabia. In his first public comment since the start of these incidents, the powerful Saudi prince, who is also defense minister and oversees all major levers of power in the country, said the attacks “confirm the importance of our demands of the international community to take a decisive stance” against Iran’s behavior. “The kingdom does not seek war in the region, but we will not hesitate to deal with any threat to our people, sovereignty and vital interests,” he said in an interview with the Arabic newspaper, Asharq al-Awsat. He accused rival Iran of using militias to destabilize the region. He also touted US-Saudi relations as “essential to achieving regional security and stability.” “The problem is in Tehran and not anywhere else,” he said. “Iran is always the party that’s escalating in the region, carrying out terrorist attacks and criminal attacks either directly or through its militias.” In recent days, Yemeni rebels known as Houthis claimed responsibility for a missile strike on a Saudi

airport in the city of Abha that the kingdom said wounded 26 passengers. The Houthis also carried out a drone strike last month on a key Saudi oil pipeline. Saudi Arabia accuses Iran of arming and training the rebels, which the kingdom has been at war against in Yemen since early 2015. “The choice before Iran is clear. Do you want to be a normal state with a constructive role in the international community, or do you want to be a rogue state?” the crown prince was quoted as saying. His comments mirrored those made by his father, King Salman, at emergency summits held in Mecca last month that drew heads of state from Arab and Muslim countries to address the sharp rise in tensions with Iran. Thursday’s apparent attacks in the Strait of Hormuz forced the evacuation of all 44 sailors aboard the two vessels. On Saturday, Associated Press journalists saw the crew members of the Norwegian-owned oil tanker MT Front Altair arrive at Dubai International Airport, after spending two days in Iran. AP

Notre Dame celebrates 1st Mass since devastating blaze in April

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ARIS—The archbishop wore a hard-hat helmet, burnt wood debris was still visible and only about 30 people were let inside, but Notre Dame Cathedral on Saturday held its first Mass since the devastating April 15th fire that ravaged its roof and toppled its masterpiece spire. Exactly two months after the blaze engulfed the landmark Gothic building in the French capital, the service was celebrated by Paris Archbishop Michel Aupetit in a chapel behind the choir, a place confirmed by construction experts as safe. French Culture Minister Franck Riester said this week that the cathedral remains in a “fragile” state, especially its vaulted ceiling, which is still at risk of collapsing. For security reasons, only about

30 people—mainly priests, canons and church employees—were admitted inside the cathedral for the service, while Aupetit and others wore construction worker’s helmets. Some of the workers rebuilding the church were also invited. Other worshippers could watch the Mass live on a Catholic TV station. The video showed some burnt wood still in the church but a famous statue of the Virgin and Child appeared intact behind wooden construction planks. The annual Dedication Mass commemorated the cathedral’s consecration as a place of worship. “This cathedral is a place of worship, it is its very own and unique purpose,” Aupetit said. One French priest called the ser-

vice “a true happiness, full of hope.” “We will rebuild this cathedral. It will take time of course—a lot of money, lot of time, lot of work—but we will succeed,” Fr. Pierre Vivares told The Associated Press outside the cathedral. “Today it’s a small but a true victory against the disaster we have had.” It is still unclear when the cathedral will reopen to the public. French President Emmanuel Macron has set a goal of rebuilding it in just five years, which many experts consider unrealistic. In the meantime, the French parliament is debating amendments to a new law that would create a public body to expedite the restoration of the cathedral and circumvent some of France’s complex labor laws. AP

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India increases tariffs on US goods as trade war heats up

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NDIA has imposed higher customs duties on a raft of US goods effective on Sunday in response to similar measures taken by Washington, according to a government notice. The increased charges have been imposed on 28 products, including chickpeas, phosphoric acid, apples, almonds and

walnuts, according to the notice released late Saturday. The country would get about $217 million in additional revenue

from the higher tariffs, the Press Trust of India reported. The move follows President Donald J. Trump’s decision on June 1 to end trade concessions on $5.7 billion of goods India shipped to the US as of 2017. These include imitation jewelry, leather products, pharmaceuticals, chemical and plastics, and some farm items. The Indian government said that “it is necessary in the public interest” to impose the higher tariffs, the statement said. The move comes just days ahead of a visit by US Secretary of State Michael Pompeo aimed at deepening defense and energy ties between the two nations. Trade tensions have been building with the US decision to withdraw India’s preferential trade status.

Ukraine warns Europe of gas crisis as negotiations with Russia drag on U

KRAINE is warning European nations to prepare for a gas crisis amid skepticism it will agree on a new transit contract with Russia before the current deal expires. It’s “highly probable” that a new accord won’t be concluded by January 1, when the current agreement ends, according to Ukraine’s Deputy Foreign Minister Olena Zerkal. That echoes skepticism by the nation’s gas company this week for a deal on shipping fuel from Russia, Europe’s biggest supplier, to regional consumers through the linchpin transit country. “While Russia holds off the negotiations on a future contract, the gloomy scenario of a gas crisis shall be considered seriously,” Zerkal said by telephone from The Hague. “That is why every European nation, including Ukraine, is increasing gas stock in storage sites.” Ukraine is offering access to its massive storage facilities and relying on financing from international financial institutions to boost their capacity so as to insure against the risk of a cut in Russian sup-

plies. Russia hopes for a new transit deal and will discuss a date for trilateral talks with the European Union and Ukraine in September, Energy Minister Alexander Novak said this week. More than a third of Europe’s gas comes from Russia, and most of that goes through Ukraine’s Soviet-era pipelines. Ukraine has proposed that the European Union store as much as 4 billion cubic meters of gas in its underground storage facilities to guarantee security of supply for eastern European countries heavily reliant on Russian gas, pipeline operator Ukrtransgaz said this week. While Europe’s gas markets are currently well supplied and prices are near their lowest in three years, traders are closely monitoring the dispute, which echoes a pricing conflict between the ex-Soviet nations that caused flows into Europe to be disrupted for almost two weeks in freezing weather in January 2009. “We will see some bumps on the road but it will get to a conclusion,” said Guy Smith, head of gas trading at Vattenfall

Saudi Arabia seeks to balance global oil markets before 2020

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AUDI Arabia is working to balance global oil markets this year, the country’s energy minister said when asked if there’s an impending surplus. The comments come a day after the International Energy Agency forecast global supplies will expand far more than demand next year, putting further pressure on Opec. Saudi Arabia and its allies, including Russia, are expected to extend output cuts into the second half of this year, despite growing tension within the group and gridlock over its next meeting date. “I hope that we will balance the market before next year. We are working on it,” Khalid Al-Falih told reporters on the sidelines of a G-20 ministerial meeting on energy and the environment in Karuizawa, Japan, on Saturday. Production cuts in the first half of the year from the Organization of the Petroleum Exporting Countries and its partners have helped put a floor under prices amid surging US production. Al-Falih didn’t respond to a question about the date of the next Opec meeting and said “there is plenty of supply” when asked his current assessment of crude markets. Traders are on alert after apparent attacks on tankers in the Strait of Hormuz on Thursday, the narrow sea conduit through which the Middle East’s crude flows to international markets. US President Donald J. Trump has blamed the tanker attacks on Iran. Al-Falih said crude supplies are stable and there’s no interruption but that he’s concerned about acts of terrorism and disruptions, and the responsibility of those who are perpetuating what has taken place, Platts reported on Saturday. Bloomberg News

AB. “In the end, people will reach a sensible conclusion that will provide value for both sides.” The progress made by Ukraine and Russia since last July would allow the parties to conclude a new contract quickly, Zerkal said. But Russian proposals to prolong old contracts “would mean to turn back in time to 2009” while its insistence to wait until the political leadership in Ukraine changes before resuming negotiations is pointless as the government position won’t change, she said. Transit via Ukraine will remain vital for Europe next winter because the Nord Stream 2 pipeline, directly from Russia to Germany, under the Baltic Sea, is likely to be delayed, hindered by permitting processes in Denmark and threatened by possible US sanctions. “We have a well-elaborated framework for further successful negotiations,” Zerkal said. “New contracts should reflect all lessons learnt by Ukraine and other European nations on what it means to transport Russian gas.” Bloomberg News

Trump administration suspends trade complaint against China

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ASHINGTON—The Trump administration has suspended a complaint it had made against China to the World Trade Organization (WTO), a shift that might signal a slight opening in the administration’s trade war with Beijing. The WTO says it has granted a request to suspend work until December on the administration’s complaint that Beijing has failed to safeguard the intellectual property of US com-

panies operating in China—a major issue in the trade war. The Genevabased WTO weighs disputes between its members, and if a country prevails, it can impose tariffs on imports from the other. President Donald J. Trump has already imposed tariffs on many Chinese goods. The WTO’s announcement did not say why the administration had made the request, and the US trade representative’s office didn’t respond to a request for comment. AP

Diplomats: European nations weigh sanctions on Venezuela’s Maduro

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OGOTA, Colombia—Major European nations are considering imposing sanctions on Venezuela’s Nicolás Maduro and several top officials for their recent crackdown on political opponents, although divisions remain over the timing of any action for fear of derailing a negotiated exit to the country’s crisis, The Associated Press has learned. The financial and travel restrictions are being mulled by a core group of five nations—UK, France, Germany, Spain and the Netherlands—before being proposed to the European Council, said diplomats and members of the Venezuelan opposition with knowledge of the plan. A total of five sources spoke on the condition of anonymity because they weren’t authorized to discuss the deliberations publicly. While Maduro is among a dozen officials

who could be hit with sanctions, no final decision has been made, two people said. The group still needs to breach internal divisions before making a formal proposal to the EU’s xecutive branch. Greater consensus exists for punishing top members of the armed forces and judiciary who have been instrumental in the arrest of allies of opposition leader Juan Guaidó, including Defense Minister Vladimir Padrino, whose family is believed to live in Spain. Also on the list is Communications Minister Jorge Rodríguez, a top Maduro aide and envoy to talks with the opposition sponsored by Norway, and Jorge Márquez, who is head of the powerful communications regulator, which was responsible for pulling the plug on Spanish broadcaster Antena 3 and Britain’s BBC earlier this year. AP

The Office of the United States trade representative told The Hindu newspaper that it had no comment when asked to respond to media reports last week that the US was considering launching an investigation into India trade practices. The office said that it, however, continued to raise market-access concerns, the report said. India last year announced higher tariffs on a clutch of items in retaliation for the US imposing higher levies on some products shipped from the South Asian nation, mirroring steps taken by China and the European Union. New Delhi, however, repeatedly deferred imposition of the new tariffs as it kept the door open for talks to avert a trade war. Bloomberg News

Monday, June 17, 2019

A7

US ramps up online attacks on Russian power grid–NYT

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HE US is stepping up digital incursions into Russia’s electric power grid in a warning to President Vladimir Putin, the New York Times reported, citing current and former government officials. While the US has probed the Russian grid since at least 2012 and there’s no evidence it has turned off power, the Trump administration’s strategy has shifted more toward offense with the deployment of US computer code inside the grid and other targets, the newspaper said. The effort has gotten far more aggressive over the past year, the Times quoted an unidentified senior intelligence official as saying. The administration declined to disclose specifics, according to the report. However, National Security Adviser John Bolton said publicly on Tuesday that the US is taking a broader view “to say to Russia, or anybody else that’s engaged in cyber-operations against us, ‘You will pay a price,”’ the Times said. Bloomberg News

Green Monday BusinessMirror

A8 Monday, June 17, 2019

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

Britain to intensify fight against climate change

L The 27 pioneer Anahaw-certified tourism establishments

Green certification helps PHL hotels, resorts become top eco-warriors

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n this time of global warming and climate change, the integration of two complementary principles of “sustainable” and “responsible” in the context of tourism has become a relevant issue among industry leaders, organizations and local communities.

In line with the Department of Tourism’s (DOT) National Tourism Development Plan 2016-2022 to “develop highly competitive, environmentally sustainable and socially responsible tourism that promotes inclusive growth,” the first national green certification program in the country called the Anahaw-Philippine Sustainable Tourism Certification has been developed by the Gruppe Angepasste Technologie (GrAT), or Center for Appropriate Technology in collaboration with the DOT. Headquartered at the Vienna University of Technology in Austria, GrAT is an independent research association established in 1986, which has been the strong driving force in promoting carbonneutral operations and sustainable tourism in the Philippines and Thailand through its project

called Zero Carbon Resorts (ZCR). Supported by the European Union and the Austrian Development Cooperation, ZCR is a green tourism initiative that began in 2010. The initial run of the project was a strong collaboration between GrAT and the Palawan Council for Sustainable Development (PCSD) that enabled tourism small and medium enterprises (SMEs) in Palawan to switch from fossil fuel to renewable energy. “Palawan’s unspoiled landscapes and rich biodiversity made it a compelling start for the project,” said Dr. Robert Wimmer, project leader of the ZCR Project and the chairman of GrAT. “Among the main challenges and opportunities we encountered were limited access to electricity and renewable resources

and inclusive community development. Palawan was the right place to showcase what can be done in the future.” To date, the ZCR Project has 870 registered members covering more than 68,000 hotel rooms across 35 provinces in the Philippines and 311 members from different provinces in Thailand.

Innovations in sustainability

As the main proponent of the program, Wimmer developed ZCR’s three-tier approach of Reduce, Replace and Redesign (3R). These practices include harnessing renewable energy through the installation of solar panels, replacing light bulbs, ceiling fans and air-conditioning units with energy-efficient models, and installation of low-f low shower heads and faucets. It also involves applying design principles that allow natural ventilation and daylight to lessen the use of appliances. Implementation of these changes have resulted in annual savings of P549 million and a yearly reduction of 31,935 tons of carbon emissions among the pioneer members of the ZCR project. Through the Anahaw-Philippine Sustainable Tourism Certification, more hotels and resorts around the country will be able to

shift to more sustainable operations and save on operation costs. A Level 1 Anahaw-certified resort can save up to 29 percent, while reaching Level 5 (the highest attainable degree) could mean cutting operational costs in half. GrAT’s technical consultants conduct an assessment using key indicators that create a clear picture of an establishment’s performance and its corresponding environmental impact. This includes measuring energy (kilowatt-hour per guest-night) and water (cubic meter per guestnight) consumption. The assessment also considers the promotion of cultural heritage, environmental protection, community involvement and local government regulation compliance. Once certified, the Anahaw certification is valid for two years and can be renewed.

Anahaw awardees

Pioneer Anahaw awardees include Amarela Resort (Bohol), Daluyon Beach and Mountain Resort (Palawan) and Sangat Island Dive Resort (Palawan) for Level 4, while Cebu Elicon House (Cebu), The Mayflower Inn (Cebu), West Gorordo Hotel (Cebu), Seda Nuvali (Laguna), Crimson Hotel Filinvest City (Muntinlupa City), Shangrila’s Mactan Resort and Spa (Cebu)

are among the Level 3 awardees. Other Anahaw awardees include resorts and hotels in key destinations: Bohol Beach Club, The Bellevue Resort and Donatela Hotel in Bohol; Balay Tuko Garden Inn and Swimming Pool, Puerto Pension, Qi Palawan and Coron Hilltop View Resort in Palawan; P & I Resorts Inc.-Pulchra, Quest Hotel and Conference Center, Crimson Resort and Spa Mactan, and Jpark Island Resort and Waterpark in Cebu; Microtel by Wyndham South Forbes, Hotel Dominique and Nurture Wellness Village in Cavite; Misibis Resort and Hotel (Albay); Club Balai Isabel (Batangas); Lalaguna Villas (Oriental Mindoro); and The Lighthouse Marina Resort (Zambales).

A new chapter begins

The quest for green tourism continues as GrAT begins a new chapter and gears up for its next round of Anahaw certification applications. “These innovations will not just empower and provide long-term value to tourism establishments but will also raise awareness and educate tourists,” Wimmer shared. “This is a call for tourism establishments to step forward, shift their minds and take part in this movement. Our team is ready to guide new partners in achieving their full ‘green’ potential.”

Facebook invests in renewables with Texas solar project

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Volunteer divers from Metro Pacific and local dive centers pick up nonbiodegradable trash from the coral gardens in Puerto Galera Bay.

Shoring up Puerto Galera’s marine ecology

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uerto Galera, one of the country’s top diving spots, can expect to have cleaner seas and a more balanced marine ecosystem with the recent partnership sealed by the municipal government and the Metro Pacific Investments Foundation Inc. Th e c o r p o r a t e s o c i a l re s p o n s i b i l i t y (CSR) arm of the MVP Group of Cos., the foundation has committed P1.5 million for three years under its Shore It Up program to provide local Bantay Dagat in the form of technical know-how, monthly allowances, uniforms, and scuba- diving courses and equipment to better protect and conserve the town’s aquatic resources. To b e c a l l e d M a r i n e P r o t e c t i o n , Inspec tion and Conser vation Guardians, the volunteers will also be empowered by the municipal government in their marine enforcement and monitoring activities. The conglomerate made its initial foray into Puerto Galera in 2010 when it pioneered

a comprehensive underwater and coastal cleanup drive, followed up in 2013 by another scuba cleanup and the Junior Environmental Scouts, an education component for public school children. The recent Shore It Up drew 145 volunteer scuba divers who collected 616 kgs of garbage from various dive spots, while residents conducted a parallel cleanup in the coastal barangays. Incepted in 2009, the program has mustered over 85,000 volunteers from the Metro Pacific firms, national government a g e n c i e s, l o c a l g ove r n m e nt u n i t s, l aw enforcement agencies, civil-society groups, d i ve i n d u s t r y s t a ke h o l d e r s a n d p u b l i c elementary schools. A multi-awarded CSR program both here and abroad, Shore It Up has been held in key coastal areas such as Mabini (Batangas), Alaminos City (Pangasinan), Del Carmen (Surigao del Norte), Medina (Misamis Oriental), Panglao (Bohol), Cordova (Cebu) and Subic Bay (Zambales).

LBUQUERQUE, New Me x ico —Facebook is bui ld ing a massive so lar far m in West Te x as t hat ’s believed to be one of the largest solar projects in t he nation and t he socia l-med ia g iant ’s f irst d irect investment in renewable energ y. Boston-based renewable energy developer Longroad Energy recently announced it was partnering with Facebook on the $416-million project, just as Facebook is finishing construction of a data center near Albuquerque. The Prospero Solar project just north of Odessa, Texas, will have a capacity of 379 megawatts, which is enough to power around 72,000 homes based on the national average, the Solar Energy Industries Association said. The project goes beyond Facebook’s goal to use renewable energy to power its data centers, where the social-media giant stores photos, videos and other information that people post on the platform. Prospero Solar is expected to be completed next year and will take up around 7 square miles (18 square kilometers)—more than five times the size of Central Park in New York City. Menlo Park, California-based Facebook will be the sole tax equity investor, Longroad said.

Ben Inskeep, a research analyst for EQ Research, a North Carolina-based renewable-energy consulting firm, said it makes sense for Facebook to invest in solar power because renewableenergy is becoming more affordable and its data centers have huge operating costs. “West Texas has some of the best solar resources in the nation,” Inskeep said. “So it’s not about saying you support renewable-energ y. It ma kes good business sense.” Shell Energy North America and Facebook will share the power generated by the solar farm. “Facebook is excited to be one of the first companies to use a direct investment to meet our renewable energy goals,” company energy strategy manager Peter Freed said in a statement. CEO Mark Zuckerberg announced in April that Facebook was building six new solar projects to support its data centers. They house tens of thousands of computer ser vers, which are linked to the outside world through fiber-optic cables. “Our data centers are already some of the most energy efficient in the world, and last year we set a goal for all our data centers and offices to use 100% renewable energy by 2020,” Zuckerberg wrote on his personal Facebook page. “These

new solar projects will help us reach that goal.” It comes as Facebook battles New Mexico regulators over a new transmission line to its data center in the small town of Los Lunas. State regulators last month declined to reconsider their decision for the largest utility to bill Facebook $39 million for the transmission line. They said ratepayers could not be charged for the project because the line wouldn’t benefit retail customers. The Public Service Co. of New Mexico said it’s disappointed by the decision and is reviewing options for how to proceed. The New Mexico data center is one of seven such sites for Facebook, and includes six buildings for data storage. It is situated on a patch of desert at the edge of Los Lunas, which lies just beyond the edge of New Mexico’s largest metropolitan area and along the Rio Grande. Each of the data center’s buildings is roughly the size of four football fields and has several “data halls,” or darkened, vast rooms where Facebook plans to store dozens of rows of towering servers. Two of those halls are now in operation, while construction that began more than two years ago will continue until 2023, the company said. AP

ONDON—Britain’s outgoing prime minister announced plans to eliminate the country’s net contribution to climate change by 2050. Theresa May last week said the plan would be put before the Parliament. The amendment to the 2008 Climate Change Act will intensify Britain’s push to drastically reduce carbon emissions. “Standing by is not an option,” she said in a statement. “Reaching net zero by 2050 is an ambitious target, but it is crucial that we achieve it to ensure we protect our planet for future generations.” She added that Britain was already taking a leading role in fighting climate change. The government’s Committee on Climate Change says the change will help public health by reducing air and noise pollution and also help biodiversity. It had urged an urgent upgrade of the government’s approach. Carolyn Fairbairn, director general of the Confederation of British Industry, said the business community backs the government’s commitment. “This legislation is the right response to the global climate crisis, and firms are ready to play their part in combating it,” she said. May is leaving office shortly after her party chooses a replacement leader. She stepped down because of her inability to win parliamentary support for her Brexit deal. AP

New bipartisan deal on climate only goes so far

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n a break from years of acrimony over basic science, House Budget Committee members on last week tripped over each other to agree that climate change is not only real but caused by humans. “The last decade has seen dramatic advances in our understanding of the economic value of the climate,” said Solomon Hsiang, Chancellor’s professor of Public Policy at the University of California, Berkeley, a witness invited by the panel’s Democratic majority. “Crucially, we are now able to use realworld data to quantify how changes in the climate cause changes in the economy,” he said. Hsiang’s characterization of a stable global climate as an asset caught the attention of Rep. Rob Woodall, a Republican who represents the district northeast of Atlanta. “I did not expect to come and be inspired, but I really have been,” Woodall said. “Dr. Shiang, it was your testimony about managing the climate—managing the Earth—as an asset that got me started in the right place, because I think that’s something we can agree on, up and down the ideological spectrum. We all understand managing assets.” The US government faces three specific threats, according to the testimony of Alfredo Gomez, director of the Government Accountability Office’s natural resources and environment division. Disaster aid has been increasing at a rate that may be unsustainable, spurring a congressional reform to the Federal Emergency Management Administration last fall. The country has spent at least $450 billion on disasters since 2005. Federal agricultural and flood insurance plans are outmoded. They can shield the scale of modern risk from policyholders and consequently make the US responsible for increasing damages. Federal property and land are at risk. Florida’s Tyndall Air Force Base, Gomez said, needs an estimated $3 billion in repairs since Hurricane Michael hit the Panhandle in October, the first Category 5 cyclone to hit the US since 1992. There, agreement stopped, replaced by traditional partisan divides. Democrats noted the rise in US disaster spending, the communities at risk and the gradual embrace of climate-friendly approaches in the financial sector. Republicans took aim at the still-vague Green New Deal and promoted nuclear power, a carbon-free—if expensive and logistically complicated—power source. Legislators were mostly united in their silence on carbon taxes, which Hsiang identified as the longtime favorite of economists. Pricing carbon fuels so that people burn fewer of them is a central element of many climate policies, but it’s largely missing from the proposals of many Democratic presidential candidates. Oren Cass, a senior fellow at the Manhattan Institute who was invited by committee Republicans, emphasized the importance of technological and other forms of adaptation to climate impacts. Bloomberg News

Biodiversity Monday BusinessMirror

Asean Champions of Biodiversity Media Category 2014

Monday, June 17, 2019

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

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Seaweed farming helps empower women in Palawan

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Story & photos by Jonathan L. Mayuga

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@jonlmayuga

or more than 20 years, women in a small fishing community in Quezon, Palawan, felt empowered. Thanks to seaweeds, which they have been farming to earn extra income. They are not only able to help put food on the table but send children to school, some of whom have already finished college. Cherish Fisherfolks Association President Mardy Montaño, 48-year-old, native of Negros Occidental, found her way in Sitio Balintang, Barangay Isugod in Quezon, Palawan, when she got married 20 years ago. As a fisherman’s wife, Montaño felt she had to help bring food on the table. Thus, she found seaweed farming an endeavor she can rely on. Speaking in Filipino, some of the group’s members narrated how seaweed farming gave them selfworth and the drive as empowered members of their community. “Most of our members here were able to send their children to school. Whenever our children would send text messages reminding us of tuition or boarding-house obligations, we will immediately go out and harvest seaweed,” said Montaño, proudly claiming to have one of her children as among the first to graduate in college. Her daughter Jaira Faith R. Montaño recently passed the licensure examination for Agricultural Engineering. Seaweed or sea vegetables are algae that grow in the sea. A food source for ocean life—as well as human with a distinct taste for “exotic” seafood—seaweed grows along rocky shorelines around the world. Seaweed is commonly eaten in Asian countries, including the Philippines, where it is being farmed in coastal areas. As seaweeds are also a source of carrageenan, a substance used as an emulsifier in food products and cosmetics, seaweed farming is in high demand. T he f i sher fol k i n Q ue z on town have their respective buyers in their barangays, who, in turn, transport the dried seaweed to a consolidator in Puerto Princesa City. The consolidator in Puerto Princesa then supplies the dried seaweeds to food companies or factories to extract and process the carrageenan from the dried seaweeds.

Aileen Ramadan, 41, a member of the group, said seaweeds are a blessing to their community. “With seaweed farming, we don’t have to borrow money from loan sharks because we have a source of income when the fishing season is off,” she said. A s f isher men who l ive in a coastal communit y, sometimes t hey have to stop f ish ing du r i ng t he t y pho on se a son for sa fet y reasons. They then resort to seaweed farming, which requires capital that most fishermen lack. “We need capital every time we start seaweed farming,” she said. In the earlier days, the fishermen were compelled to borrow money from moneylenders who are often loan sharks who charge high interest rates. Not anymore. Today, members of Cherish Fisherfolks Association with 22 women and 66 men, have found reliable partners to boost their income from seaweed farming and make their small industry flourish. Thanks to Protect Wildlife, a United States Agency for International Development-funded project in southern Palawan. The project being implemented by the Department of Environment and Natural Resources (DENR) and its various development partners, Protect Wildlife Project promotes biodiversity conservation in the rural areas. Environment Undersecretary Jonas R. Leones for ForeignAssisted Projects said Protect Wildlife has been making inroads on wildlife conservation in the rural areas. “A ligning conser vation policies with on-the-ground action and enforcement is ver y much ca l led for in the face of growing threats facing the countr y’s b i o d i v e r s it y r e s o u rc e s . T h e DENR most especia l ly regards the livelihood inter vention on seaweed far ming in Quezon, Pa lawan, as added boost that wou ld u ltimately address pover t y and conser vation issues,”

Cherish Fisherforlks Association members check the dried seaweeds at the solar drier.

Members of Cherish Fisherfolks Association interact with members of the media during a Protect Wildlife Project visit at project sites in Southern, Palawan

Cherish Fisherfolks Association President Mardy Montaño shows dried seaweed farmed by members of the association in Quezon, Palawan.

Leones, also the DENR’s undersecretar y for polic y, planning and international affairs, said. Through Protect Wildlife, the group was able to access microfinancing through Lutheran World Relief (LWR) and Ecumenical Church Loan Fund (Eclof), and now has a legal status to be recognized by the Quezon, Palawan, local government unit (LGU). Law rence San Diego, communications manager of Protect Wildlife in southern Palawan, said Cherish Fisherfolk Association’s linking with partners, such as LWR and Eclof, ensures microfinancing for its members. Through the USAID-LWR partnership with Eclof as the microfinance organization, Protect Wildlife was able to cover five LGUs in southern Palawan, specifically

targeting upland communities in and near the Mount Mantalingahan Protected Landscape and coastal communities to improve their agriculture, aquaculture and fisheries-based livelihoods. For the association, Eclof started its lending in April 2018, Johnel Cinco, Eclof area manager in southern Palawan said. To date, he said Eclof has released close to P1 million to members of the group, who are responsible clients. “What I can say is, here at Cherish, I never encountered payment delays. They are always up to date with their obligation as they pay on time,” he said. The loan program enables the members of the group to continue seaweed production, thus, reducing threats of illegal fishing activities or even illegal wildlife

trade, San Diego said, adding that some of the islands in Quezon and nearby towns are known nesting sites of the endangered pawikan (sea turtles). For its part, the Municipal Agriculture Office, through their Agri-Fishery Technologist, provides technical assistance to the association members to improve their harvest. Through the partnership of USAID-LWR with Eclof, the association was able to receive a grant of a land-based seaweed dryer and an additional grant of a floating seaweed dryer, which the members said have been helping them improve their products. “What we are targeting now is to buy the seaweed our members produced and directly sell them to buyers. This will allow us to earn while our members get the most from their produce,” said Montaño, who is also a member of the Fisheries and Aquatic Resources Management Councils (FARMC) in Quezon, Palawan, another feat for a woman who was picked to represent a male-dominated sector. “Maybe women are empowered by seaweed farming. Because I would have not been elected president or chosen as a representative of FARMC if they don’t believe in me,” she said. Mary June Calubag, Protect Wildlife Project Community Enterprise Development associate, said seaweed farming, a viable source of livelihood as it provides profit within a short period of time, contributed to the development of positive changes in the attitudes and behaviors of the farmers. “Unlike in other areas, starting the project here at Cherish was a lot easier because Cherish is already organized and established. What we did was help to obtain their legal status and be recognized by the local government,” she said. The seaweed farms in Quezon gradually develop to be a conducive environment for marine life to thrive, while the interaction

between human and marine life has become a common occurrence in the farms, which have become nurseries for fish, squid, crabs, lobsters and other crustaceans, as well as grazing sites for dugongs and sea turtles. More important, members of the group have now been actively supporting the Bantay Dagat (sea watchmen) in their municipality by voluntarily monitoring their coastal waters for illegalfishing activities. The same association from Isugod has also advocated the total ban on the use of fertilizers on seaweeds. The seaweed farms have become a nursery of siganid fish, krills, anchovy, squids and lobster eggs. Seaweed farming has also been proven to be the most viable and sustainable source of income, because the supply of propagules can easily be replenished from cuttings, without depleting the natural marine resources. So far, Cherish Fisherfolks Association has established a system that allows its members to earn additional income by renting out the seaweed dryer and motorized boat to members and nonmembers who would like to use the association’s assets for planting, harvesting and drying of their seaweeds. On top of increase and a steady source of income, seaweed farming benefits the community as additional people, particularly women and children from non-permittees needing money are hired to help prepare seaweeds for planting and harvesting which is the most labor-intensive stage in the whole production cycle. Seaweed farming also gives the women an opportunity to contribute significantly to the family income as they join the men in becoming family breadwinners. Indeed, the women— the wives, mothers and daughters in this small coastal community in Quezon, Palawan—are empowered by seaweed.

Fish is becoming the protein source after meat S

almon has become the guinea pig of the seas when it comes to using technology to supplement falling fish populations. Now it’s moved onto land—and into the laboratory. The fatty orange fish was the second-mostconsumed seafood in the United States in 2017, after shrimp. Per capita consumption increased by 11 percent, to 2.41 pounds per person, from the prior year, according to the National Fisheries Institute, an industry group. Globally, demand for salmon has skyrocketed, along with that for all fish, fueling overfishing and threatening supply. Industrial-scale salmon farming, once seen as a solution, has its own problems. Massive stocks of smaller fish are depleted to feed farmed salmon, and parasites flourish in salmon pens where farmers use pesticides, contributing to pollution and ecosystem destruction. Sea lice have infested farms in Norway and Scotland in recent years, and a deadly algae bloom killed salmon in Chile, a top farmedsalmon producer. Farmed fish sometimes escape, too, contaminating nearby wild salmon. With rising incomes in developing nations driving demand, fish and seafood now account

for almost a fifth of the animal protein people consume. Unsurprisingly, the need for a solution to this less-than-virtuous circle has become evident to a growing number of entrepreneurs and start-ups.

Overfishing and the rise in global fish consumption

The move toward environmentally conscious salmon farming is already under way. Maynard, Massachusetts-based AquaBounty Technologies is hoping its genetically modified “AquAdvantage” version of Atlantic salmon, which it says grows twice as fast, will soon appear in the shopping carts of the environmentally aware. The company says on its web site that its product is raised in “land-based production systems” that eliminate the various risks to wild fish, humans and the environment posed by farmed salmon. “The need and the desire for more farmraised salmon is growing, and imports are growing, too,” said Janice Schreiber, a commodity researcher at Urner Barry. “The market is looking for consistency, and that’s where some of these newer lines come in.”

But the next chapter of fish production, beyond even land-based farming, is already being written—by scientists. San Francisco-based Wild Type is hoping that, as with the rise of meat substitutes (and their arrival on Wall Street), lab-grown fish won’t be far behind. Or, for that matter, lab-grown sushi. On a recent Sunday evening in Portland, Oregon, a group of Wild Type employees, investors, chefs, local restaurant owners and friends gathered at Olympia Oyster Bar for the first full-scale service of the company’s product, straight from the lab. Chefs Maylin Chavez, Kyle Christy and Rose Ha each served a pair of dishes designed to highlight the novel product. The chef’s imaginations were constrained by the reality of working with a still-in-development food. Wild Type can produce only small pieces of salmon, which become too flaky if heated above 212 degrees Fahrenheit. As a result, all the preparations were either raw or cooked in natural acids, such as citrus juice. (The company says it plans to have a version of the product that can withstand heat in the coming months.) Highlights of the meal included a perfectly balanced ceviche with avocado, cucumber, katsuobushi, ginger and cilantro; a crudo of

cold-smoked salmon with hazelnut butter, lemon, shiso and arugula; and a classic spicy salmon roll. The Wild Type product absorbed the cold smoking particularly well, an attribute that the company plans to leverage as it launches the product commercially. One of the first items will be “smoked salmon,” since it’s something “people are comfortable with,” explained Wild Type Cofounder Justin Kolbeck. “We want to start with something that is familiar. We don’t want people to find it strange.” The tasting culminated in a sample of the raw product itself. Served in a canning tin, the Wild Type salmon appeared a bit dull, lacking some of the vibrant color of wild coho. While the texture closely approximated wild fish, the taste, however, was lacking. It wasn’t unpleasant, nor unfamiliar. Just faint. The company hopes to eventually produce full slabs of lab-grown salmon at a competitive retail cost of $7 to $8 per pound. But it has a long way to go. Kolbeck estimated that the spicy salmon roll served at this test dinner cost $200 to produce. “The dream vision is the cleanest, purest, freshest salmon, without contaminants or antibiotics, for a price lower than farmed Atlantic salmon,” he said. Bloomberg News

Warmer climate, fewer fish In this July 8, 2015, photo, herring are unloaded from a fishing boat in Rockland, Maine. A study published on June 11 finds a warmer world may lose a billion tons of fish and other marine life by the end of the century. The international study used computer models to project that for every degree Celsius the world warms, the total weight of life in the oceans drop by 5 percent. AP/Robert F. Bukaty

A10 Monday, June 17, 2019 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

Taking advantage of PHL millennials

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OMEONE once asked Irish playwright Bernard Shaw what, in his opinion, is the most beautiful thing in this world. “Youth,” he replied, “is the most beautiful thing in this world—and what a pity that it has to be wasted on children!” We have since paraphrased that to “youth is wasted on the young.” Being young is a wonderful time of vitality and enthusiasm, and

the belief that one will live forever. Of course, there is probably not a middle-aged man or woman who has not thought “I wish I knew then what I know now.” But that is unfortunately not the way life works. Actually, that might be for the better. “The youth is our future” is one of those sayings that motivate a society to protect and nurture its young people. However, there are two dynamics that are dramatically changing the world and will continue to create a different 21st century from the centuries it preceeded. With the exception of Africa, every region on Earth has peaked in population growth, including China and India. Japan is a demographic disaster area with the pace of population decline accelerating, with the country set to lose the equivalent of a midsized city every year for the foreseeable future. The Japanese National Institute of Population and Social Security Research projects that by the middle of the century, Japan will be losing about 900,000 people a year. By the same token, as fewer children are born and life spans increase, the United Nations says: “Population ageing is poised to become one of the most significant social transformations of the 21st century.” Further, “by 2020 [that is next year by the way], the number of people aged 60 years and older will outnumber children younger than five years old. The Philippines, as we know, does not face either of these problems with our “demographic sweet spot.” Aside from “the youth is our future,” the under-40 cohort is traditionally where a nation’s wealth growth has emanated. For many decades in the West, this has been the target market for goods and services. The key marketing demographic has been the 18- to 49-yearold. We now call them the “millennials.” By popular definition this is the generation of people born between 1980—now 39 years old—and 2000 who are 19 years old this year. However, the advertising and marketing game has changed. Millennials represent the largest single consumer group in the United States: they number 83.1 million and they represent a quarter of the US population. This group is the largest market. But corporations have come to discover that they are not getting the “Return-on-Investment” they have come to expect from this “core demographic” market. Simply put, the US millennials are broke. Deloitte’s Center for Consumer Insight—a part of the multinational professional services—reports that since 1996, the average net worth of US consumers under 35 has dropped by an astonishing 35 percent. Nonetheless, these companies need a vibrant millennial market and they are already searching for new territory. For example, Ikea will open its largest store in the world in 2020 at the Mall of Asia Complex. And Ikea will not be the last one to take advantage of our millennial sweet-spot market.

‘Experts: Spy used AI-generated face to connect with targets’ (BusinessMirror, June 15, 2019 issue)

Economic weapons as tools in HK protest Atty. Jose Ferdinand M. Rojas II

RISING SUN

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N Hong Kong, businesses are going on strike and shutting down offices and shops as a means of protest against the proposed extradition bill, a controversial legislation that many believe will undermine the independence of the international city. On June 12, when businesses closed, many employees worked from their homes, and bus and subway systems were shut down. A 28-year-old accountant based in Hong Kong, Tree Li, campaigned for selling off HK dollars. His Facebook campaign garnered 9,000 Likes. Speaking to Al Jazeera, Tree Li said: “We have no choice but to start a financial fight to force the government to revoke the extradition bill; the ways we protested before are not working anymore. If Hong Kongers do not feel confident about the government or the

Hong Kong dollar, they can choose to convert their assets into US dollars and take them out of the local banks. They can hold cash or deposit the money in offshore bank accounts. This is not what the government wants.” Many businessmen share his belief. They realize that it is Hong Kong’s autonomy and strong legal system that have been attracting foreign businesses and invest-

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LEGALLY SPEAKING

N January 13, 1978, then-President Ferdinand E. Marcos signed into law Presidential Decree 1069 “Prescribing the Procedure for the Extradition of Persons Who Have Committed Crimes in a Foreign Country.” PD 1069 (known as the Philippine Extradition Law) recognizes that “the suppression of crime is the concern not only of the state where it is committed but also of any other state to which the criminal may have escaped, because it saps the foundation of social life and is an outrage upon humanity at large, and it is in the interest of civilized communities that crimes should not go unpunished.” PD 1069 defines “extradition” as “the removal of an accused from the Philippines with the object of placing him at the disposal of foreign authorities to enable the requesting state or government to hold him in connection with any criminal investigation directed against him or the execution of a penalty imposed on him under the penal or criminal law of the requesting state or government (Section 2 [a]). Extradition may be granted only pursuant to a treaty or convention, and with a view to: A criminal investigation instituted by authorities of the requesting state or government charging the accused with an of-

fense punishable under the laws both of the requesting state or government and the Republic of the Philippines by imprisonment or other relevant extradition treaty or convention; or The execution of a prison sentence imposed by a court of the requesting state or government, with such duration as that stipulated in the relevant extradition treaty or convention to be served in the jurisdiction of and as a punishment for an offense committed by the accused within the territorial jurisdiction of the requesting state or government. Under Section 4 of PD 1069, any foreign state or government with which the Republic of the

ments for many years. The proposed law can scare these businesses away and cause great damage to Hong Kong’s economy in the long run. In Tree Li’s words, “Foreign investors would lose confidence in Hong Kong and sell off their assets in the city.” Firms like GMT Research, an accounting research firm, are waiting for how events will turn out before making the decision to move elsewhere. GMT’s Gillem Tulloch said, “It would be more difficult to do business in Hong Kong and we worry about the safety of our staff. We produce a lot of highly critical analysis of Chinese companies. There could be retaliation from China by different means.” The controversial proposal makes it easier to bring people from Hong Kong to Mainland China for trial. And according to authorities, the proposed law aims to keep the city from becoming a refuge for criminals. When lawmakers and businesses voiced out their fears, the Hong Kong gov-

ernment removed some economic crimes from the original list of extraditable offenses. However, people were still afraid. Protests were scheduled for Sunday (yesterday), and according to reports, the government is set to make a final decision before the month ends. Everybody’s waiting for what will happen next since the impact of the decision will certainly have global repercussions. Hong Kong, as we know it, may never be the same again after this. This early, the US government has started to review its policies with regard to Hong Kong. If the US decides to no longer treat Hong Kong as independent, the tariffs levied against Mainland China would also apply to Hong Kong, affecting its industries in a major way. To sum it up, Jack Fung, a researcher at the Hong Kong Policy Research Institute, had the right words: “If Hong Kong is no longer an independent economic entity that can attract foreign capital, its trade and financial system could collapse.”

Philippines has entered into an extradition treaty or convention, which remains in force, may request for the extradition of any accused who is suspected of being in the territorial jurisdiction of the Philippines. The request shall be made by the Foreign Diplomat of the requesting state or government addressed to the secretary of foreig n af fairs, and sha l l be accompanied by: The original or an authentic copy of eitherThe decision or sentence imposed upon the accused by the court of the requesting state or government; or The criminal charge and the warrant of arrest issued by the authority of the requesting state or government having jurisdiction of the matter or some other instruments having the equivalent legal force. A recital of the acts for which extradition is requested, with the fullest particulars as to the name and identity of the accused, his whereabouts in the Philippines, if known, the acts or omissions complained of, and the time and place of commission of these acts; The text of the applicable law or a statement of the contents of said law, and the designation or description of the offense by the law, sufficient for evaluation of the request; and Such other documents or information in support of the request. If it appears that the request

meets the requirements, the secretary of foreign affairs shall forward the request to the secretary of justice, who is required to file a written petition with the Court of First Instance (now the Regional Trial Court) which has the exclusive power to hear and decide the case: The accused is entitled to be represented by counsel or if none, by a Counsel de Officio appointed by the Court. The requesting state or government may be represented by the Department of Justice or may retain private counsel. The Rules of Court insofar as practicable and not inconsistent with the summary nature of the proceedings, shall apply to extradition cases. Upon conclusion of the hearing, the court shall render a decision either granting (based on prima facie evidence) or dismissing the petition, which shall be promptly served on the accused. If the extradition is granted, the accused has 10 days from receipt to appeal, whose decision in extradition cases shall be final and immediately executory. The accused is thereafter surrendered to the requesting state or government, which pays all costs and expenses for the entire proceedings. In case of urgency, the requesting state may request provisional arrest of the accused by the National Bureau of Investigation (NBI), which is tasked to secure a provisional warrant of arrest from the Court. If within a period of 20 days after the provisional arrest the See “Kapunan,” A11

Opinion BusinessMirror

www.businessmirror.com.ph

Single and ready to incorporate

Waging a war! Siegfred Bueno Mison, Esq.

THE PATRIOT

Luke Michael Valdez

DEBIT CREDIT Part Two

I

T is important to note the tax and corporate implications of the One Person Corporation (OPC), which are under the specific guidelines released on May 6, 2019, to implement this new provision under the Revised Corporation Code. In terms of income tax rate, an OPC has a flat 30 percent while sole proprietorships are subjected to graduated rates like other individuals. The rates for individuals go as low as 0 percent and as high as 35 percent plus base taxes. With this, it is clear that you have to accurately project the range where your taxable net income would be to see which business type is more advantageous. Unfortunately, that’s easier said than done as OPC also has different deduction rules compared with what individuals have. An example of a clear advantage, given all other things equal, is when an OPC utilizes the Optional Standard Deduction. For OPCs, the 40 percent OSD is applied on Net Revenue while for sole proprietorships it is applied on gross revenues. Basically, an OPC using OSD will be able to use its cost of goods sold as deductions on top of the 40 percent OSD. Not to be upstaged, a sole proprietorship also has an 8-percent Gross Income Tax. This option is limited for sole proprietorships with gross sales/receipts not exceeding P3 million. The 8-percent GIT is particularly useful for smaller businesses that are subject to VAT or OPT as this tax option is in lieu of those business taxes, meaning the 8 percent covers income and percentage taxes. It is not uncommon for some existing corporations to have five stockholders, of which four of them only hold a single share. This is what some individuals have been doing to skirt with the corporation code in order to register as a corporation. Be that as it may, the corporation is still subject to governing rules and regulations, which they have to comply. This includes submission of bylaws and provision of rights to shareholders, which you may never know may exercise them. With trust and confidence to the shareholders not important to OPCs, individual entrepreneurs enjoy smoother business operations with a single person decision-making body. This may be a selling point for corporations who didn’t have the option to register as an OPC from the beginning and just inserted random friends and

Kapunan. . .

continued from A10

secretary of foreign affairs has not received the required documents for extradition, the accused shall be released from custody (Sections 5-18, PD 1069). At present, the Philippines has duly signed and ratified Extradition Treaties with Australia, Canada, China, Hong Kong, India, Indonesia, Spain, Thailand, South Korea, Switzerland, the United Kingdom and the United States. The increase in international crimes has prompted governments to become a party to several international conventions, which, although not themselves extradition treaties, deal with international law enforcement. Are political offenses covered by extradition? In recent years the United States has been promoting a restrictive view of the political offense exception in furtherance of its

relatives into the corporation to meet the five-person requirement. The same is true for sole proprietorships, but they don’t have the benefit of succession. A unique trait of an OPC is that it enjoys succession. Upon registering, the individual shareholder must name a nominee and alternate nominee. In case of death or incapacity, the nominee will take control of the management of the OPC until the rightful heirs are able to take over. In the case of sole proprietorships, the net assets of the business go their separate ways to the heirs and the continuance of the business is much harder to predict as they have to apply for a new and distinct business license. In the long run, it may also be wise to register as an OPC from the start. If the individual stockholder is looking to grow exponentially through the help of some investors, it is much easier to convert an OPC to a regular corporation, in contrast when the starting point is a sole proprietorship. For a sole proprietorship to become a corporation, it will have to undergo transfer of assets that have tax implications as you will be required to report it at fair market value. As thrilled as some individuals are in the advent of the OPC, they should not be hasty in deciding to register their endeavors as one. It is key to weigh the risks and benefits of an OPC and sole proprietorship and see if they fit your future plans for your business. An OPC may be better for you, but not for another. Though basically you are the single entrepreneur in either OPC or sole proprietorship, the way your business will run will be entirely different in either option. Luke Michael Valdez is a consulting associate of UpSmart Strategy Consulting Inc., a financial consultancy firm that specializes in strategic finance, structuring and restructuring of start-ups, social enterprises and SMEs. This column accepts contributions from accountants, especially articles that are of interest to the accountancy profession, in particular, and to the business community, in general. These can be e-mailed to boa. secretariat.@gmail.com.

Part One

I

LEARNED the principles of war as a cadet at West Point. The acronym MOOSE MUSS, I remember, stands for Mass, Objective, Offensive, Security Economy of Force, Maneuver, Unity of Command, Surprise and Simplicity. These terms somehow vary in the eyes of military theorists such as Sun Tzu, Antoine Henri Jomini, or Carl von Clausewitz, but the principles remain the same. In the corporate world, author Stephen Covey has essentially renamed and adopted these same principles of war to help leaders manage their resources taking into consideration the challenges within the company and the threats from outside the company. Fighting a war—in the military or in business or in our personal lives—involves the application of most, if not all, of these principles. Mass is best illustrated by the “shock and awe” example of Desert Storm when US forces were deployed to seize certain targets in Kuwait and Iraq. Military assets were principally focused in one area of engagement to attain maximum impact against the Iraqi army. In business, while Starbucks, as a company, has diversified to offer tea and other products in their stores, it has focused on its strength. But its strength was never about the coffee but was more about the service it gives to each customer. Hence, regardless of what the customer orders—coffee, tea, pastry or cookie, shock and

awe is achieved by making sure customers feel welcome by the service brand of Starbucks. Since the principle Economy of Force is the opposite of the principle of Mass, leaders need to understand that any field of fire will always have a blind side. Some leaders can be fixated on the principle of Mass toward achieving an objective and, as a result, they forget the value of feedback from their subordinates in the field. Economy of Force means placing the right amount of assets at the right time. In the case of the 1993 US operation to capture a warlord in Somalia, as depicted in the movie Black Hawk Down, this principle was not properly applied since the initial force was overwhelmed and confused by the unexpected resistance from

the Somali warlord. Leaders need to have the right mix of assets, the bulk of which to be employed toward the objective and a fraction thereof to take care of the blind side. The principle Objective considers a singular, well-defined and attainable target. Leaders dictate, and sometimes adjust, the direction of the company during strategic planning sessions. Any objective should be SMART, as in specific, measurable, achievable, relevant and time-bound. In the Army, I remember how any Operations Order is formulated in terms of a specific and measurable mission (a hill, a house, a certain person). What some military commanders or corporate leaders forget, however, is the factor of imposing timelines/deadlines. Setting an objective, the accomplishment of which is set on a specific quarter or month, seems fine but setting a hard date, as in a specific day, is always preferred and desired. The principle Offensive, in Army terms, is to “seize, retain and exploit” the initiative. In boxing, I remember my coach telling me to pour everything I have the moment I get my opponent reeling from any punch. I was taught to forget about preserving energy for the next round with the goal of pulverizing the enemy into submission. Such killer instinct is best displayed during the early days of US boxer Mike Tyson. He really mastered the art of seizing the offensive from the opening bell of any boxing match.

China’s food is only going to get pricier

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By Christopher Balding | Bloomberg Opinion

MACK in the middle of a trade war with the US, China is facing a food shortage that’s raising prices for consumers. If officials can’t keep inflation in check, President Donald Trump’s Twitter tantrums will be the least of their worries. African swine fever is decimating China’s pig population. The country’s stock fell 21 percent, or by nearly 73 million pigs, from March 2018 through April 2019, according to official statistics. Unofficially, however, industry experts whisper about slides of more than 40 percent to 50 percent. That would be comparable to wiping out all the pigs in the US and Europe combined. For a country that derives most of its protein consumption from pork, this is a problem. Compounding the challenge is the invasion of fall armyworm in the lead-up to the autumn harvest. Traveling up to 60 miles a day, the crop-eating pest is expected to be present in all Chinese provinces by the end of the year. This is already

having a significant impact on expected yields of corn, wheat and rice. Beijing has moved to raise food imports, and had even considered increasing US pork purchases before trade tensions ramped up last month. But there simply isn’t enough pork out there to replace the world’s biggest producer. This adds serious pressure to China’s economy. Food, alcohol and tobacco comprise 30 percent of the CPI basket, the highest share of any category. The isolated food component stands at about 20 percent, even after shrinking in recent years. May’s inflation data have already shown evidence of supply shortages: Pork prices gained 18.2 percent, pushing the consumer-price index up 2.7 percent from a year earlier,

the highest since February 2018. While that’s still within Beijing’s comfort zone, we haven’t even hit the summer growing months, when the damage from armyworm will really kick in. This puts Beijing in a bit of a pickle. China has been banking on the idea that consumers will pick up the slack in a weakening economy. Just last week, officials announced new stimulus measures to boost purchases of cars, home appliances and electronics. But with rising prices offsetting gains from tax cuts earlier this year, that’s starting to seem like wishful thinking. China’s growth is slowing much faster than the headline official data admit. Higher inflation will only constrain Beijing’s options for further easing. The first step in addressing this challenge would be to recognize the seriousness of African swine fever and armyworm. There’s little evidence Beijing has done that. Instead, Chinese officials have been snuffing out critical media coverage, underreporting data

The principle Security requires the sharing of information on a “need-to-know” basis. Business secrets are as important as any other asset in the company since these secrets can affect how fast the competition can react to your offensive. Applying this principle, Facebook founder Mark Zuckerberg managed to acquire Instagram for $1 billion and, more recently, WhatsApp for $19 billion—its biggest acquisition so far. While the idea of a takeover was floated a few days before the announcement, Mark Zuckerberg and his team had set their eyes on acquiring WhatsApp and its 450 million monthly users for quite some time already. The buyout was settled quite favorable to Facebook and its private messaging app, Messenger, largely due to the hush hush manner on how it was conceptualized. As we engage in wars against our enemies, let’s keep in mind these principles but, more importantly, let’s be reminded of what He promised us in the Bible as written in Deuteronomy 20:3-4 which says, “Today you are going into battle against your enemies. Do not be fainthearted or afraid; do not panic or be terrified by them. For the Lord your God is the one who goes with you to fight for you against your enemies to give you victory.” Faith-based leaders always come out victorious. I will discuss the rest of the principles of war in my next article. To be continued For questions and comments, please e-mail me at sbmison@gmail.com.

and putting an all-too-rosy sheen on their response to the crisis, not unlike what we saw with SARS in the early 2000s, as Bloomberg Opinion columnist Adam Minter has written. Second, Beijing needs to rapidly increase imports to slow expected price increases—even if China starts to skew its protein balance more toward chicken and beef. Theoretically, that would be a boon for other key pork suppliers, such as the US and Germany. In reality, though, the shifting contours of the trade war make relying on US imports unlikely, and China’s relationship with Europe is lukewarm at best. The existential problem facing Beijing is how to address rising food prices and a slowing economy, which have a history of triggering episodes of social unrest. If pork prices do climb 70 percent this year, as officials forecast, Beijing will face a very unhappy population eager to assign blame for the mismanagement of a crisis. That will be a lot scarier than missing a GDP target.

Tread carefully in Thailand’s turbulent waters By Ronald W. Chan | Bloomberg Opinion

campaigns against terrorism, drug trafficking and money laundering. The political offense exception in the Philippine Treaty with the United States is a broader provision than is contained in other extradition treaties. The exclusion of certain violent crimes (i.e., murder, kidnapping and others) from the political offense exception reflects the concerns of most states, including the Philippines, with international terrorism. Unlike other extradition treaties, the Philippine extradition treaties unequivocally state that a party may not refuse extradition on the ground that the person sought is one of its citizens. Regardless of whatever Treaty or International Agreement the Philippine government signs with other countries, what is fundamental is that these agreements are based on mutual respect for sovereignty, equality and mutual benefit. Already, we are experiencing the lack of it from some of our neighbor countries.

Monday, June 17, 2019 A11

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HAILAND’S economy may be in for far more turbulence than anticipated after the March elections. Social unrest has risen and consumer confidence has sagged since the poll, which this month saw parliament return junta leader General Prayuth Chan-Ocha to power. Critics have denounced the election as rigged in favor of the pro-military camp, and foreign investors are holding back. They are right to take a wait-and-see approach. On the eve of the March vote, I wrote that there would be only a temporary disruption in Thailand’s economic growth. The drag now appears more likely to be prolonged. Consumer confidence dropped to its lowest level in 19 months in May, and first-quarter growth was a paltry 2.8 percent from a year earlier. That was the economy’s worst performance since 2014, when Prayuth took power in a bloodless military coup. Now, rather than ruling with absolute power, he will have to lead a coalition government with a slim majority. Political instability rarely in-

spires confidence, and Thai consumers have already been feeling the pinch from higher oil prices. The junta announced a stimulus package worth about $420 million in April, and further steps are expected. This should help to cushion the economy, though a more sustained recovery may depend on an end to the political turmoil. Unrest is affecting tourism, which represents more than a fifth of Thailand’s economy. Arrivals fell 0.7 percent in March from a year earlier to 3.5 million. Visitors from China, which account for the biggest share of tourists, dropped

1.9 percent. That may not look like much, but the Thai economy will suffer if the slide continues. The country’s Tourism Authority has predicted international visitors will reach a record of more than 40 million in 2019. The authority is promoting Thailand as an ideal location for lavish Indian weddings and honeymoons, in a sign that it may be preparing for further declines in Chinese tourists. The push appears to be working: Visitors from India surged 35 percent in March after climbing 14 percent in February. They remain a small share of overall arrivals, though, totaling about 1.8 million in the year through March. Sinking international investor confidence and a rocky global economy could also have implications for the Eastern Economic Corridor, a key infrastructure initiative. The government says the $54-billion development plan is on track for completion in 2021. It remains unclear who will helm the project under the new ad-

ministration, though. As deputy prime minister, Somkid Jatusripitak has overseen the program’s implementation for years and has a golden touch when it comes to encouraging foreign investment. Somkid has yet to be reconfirmed, and there is jockeying within the cabinet for the deputy prime minister’s post. Another sign that the Thai economy is in flux came from the central bank, which cited “heightened political uncertainties” in opting to keep its benchmark interest rate unchanged at 1.75 percent on May 8. It’s too early to tell where all these developments leave investors. It seems unlikely that Prayuth, after steering the country through five years of prosperity, will suddenly discard that progress. The whole world looks to be heading toward an economic slowdown, so cut Thailand a little slack. If the country’s leaders can keep tourism and the Eastern Economic Corridor afloat, the economy will follow. Eventually.

2nd Front Page BusinessMirror

A12 Monday, June 17, 2019

Cabinet blocs to tackle WPS ramming; China tale scored

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By Bernadette D. Nicolas @BNicolasBM & Jasper Emmanuel Y. Arcalas @jearcalas

ONFUSION marked details of a reported special Cabinet meeting supposedly called on Monday, for what sources said was a forum to help the President’s key men forge a “definitive and united stand” on the issues arising from the June 9 ramming by a Chinese vessel of a Filipino fishing boat at Recto Bank, then abandoning 22 Filipino fishermen as their boat sank. Palace officials said the meeting was canceled, even as a source said no notice of cancellation has yet been issued by the Office of Cabinet Secretary Karlo Nograles, from where the call to meeting emanated. Late Sunday, Nograles clarified that there was no special Cabinet meeting but a meeting of two Cabinet clusters—on Security, Peace and Justice, and on Economic Development. The topic was still the June 9 incident at Recto (also called Reed) Bank in the West Philippine Sea.

Drilon called “lies” and unacceptable Beijing’s version of the incident in the West Philippine Sea, where the Chinese side claimed they “accidentally” hit the Filipino boat while fleeing from the area after being “besieged” by “seven to eight Filipino boats.” Filipino-Chinese businessmen offered to shoulder the cost of repairing the badly damaged boat of the 22 fishermen from occidental Mindoro, and provide them livelihood and food assistance as they recover.

In related developments:

A reliable source told the BusinessMirror that the expectation

Senate Minority Leader Franklin

‘Definitive, united’ stand

₧3.5M The minimum losses suffered by Filipino fishermen whose boat was rammed by a Chinese vessel in the West Philippine Sea. The cost includes damage to the boat and the estimated value of the fish they caught in their 10-day sojourn to Recto Bank

was for the Cabinet, at the end of the meeting, to be able to iron out a “definitive and united stand on the issue,” including the next steps the government should take. The Chinese Embassy earlier released a statement, giving an account of the incident vastly different from that given by the Filipino fishermen, who survived only because a Vietnamese boat rescued them. The Philippine military, Defense Secretary Delfin Lorenzana’s office and the Department of Foreign Affairs have adopted the fishermen’s account that their boat, the F/B Gemver 1, was stationary when the Chinese vessel rammed it from behind, and then left the scene, leaving

By Rea Cu

@ReaCuBM

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HE past administration missed its opportunity to take advantage of low interest rates on loans in a time it could have addressed the country’s infra-

structure gap by raising funds for its various programs and projects, the Department of Finance (DOF) said recently. Thus, the Duterte administration is taking a different tack, taking advantage of whatever opportunity is left to borrow at low,

SOUTHWEST MONSOON AFFECTING LUZON as of 4:00 am - June 16, 2019

concessional rates by front-loading its borrowings and diversifying their sources to jump-start its ambitious “Build, Build, Build” (BBB) infrastructure modernization program, Finance Secretary Carlos G. Dominguez III said. “From 2010 to 2016, the cost

GRAB USERS DEAL WITH HIGHER FARE, BOOKING WOES AFTER ‘CULLING’ By Lorenz S. Marasigan

them to the mercy of the weather and water. The Chinese Embassy has since denied in a statement that what happened in the Recto Bank was a “hit-and-run” incident. Citing China’s preliminary investigation into the incident, the Chinese Embassy said the Chinese fishing boat “Yuemaobinyu 42212” from Guangdong was engaging in a light purse seine operation when it was “suddenly besieged by seven or eight Filipino fishing boats.” During evacuation, the Chinese Embassy said the Chinese boat “failed to shun a Filipino fishing boat and its steel cable on the lighting grid of larboard bumped into the Filipino lighthouse.” The Chinese version continued, “The Filipino fishing boat tilted and its stern foundered.” The Chinese side claimed they also tried to rescue the Filipino fishermen, but were afraid of being “besieged by other Filipino fishing boats.” The Chinese vessel only sailed away after confirming that the fishermen were rescued by other Filipino fishing boats, said the account peddled by the Chinese embassy.

@lorenzmarasigan

O

VER three -quar ters of transport network vehicle service (TNVS) passengers experienced higher fares and difficulty in allocation ever since Grab’s supply dwindled by more than a tenth last week. This emerged from an online survey conducted by commuter network The Passenger Forum (TPF) over the weekend. The finding was that 78 percent of passengers “suffered more frequent and expensive fares due to surge pricing.” Respondents in the survey also ranked “availability of TNVS units on the road” as the leading factor in surge pricing, with “heavy traffic” and “decision of TNVS provider” at second and third spots. “Aside from more frequent and higher fares, our survey also found out that 72 percent of TNVS passengers experienced difficulty in booking after the June 10 deactivation of TNVS units,” Primo Morillo, TPF convenor, said. To recall, Grab deactivated 5,000 of its TNVS units due to their lack of proper license to operate. Grab earlier explained it had no choice but to yield to regulators. Grab has yet to respond to the BusinessMirror’s request for clarification. Morillo said the results of the survey only proves that commuters will bear the brunt of the mass

See “WPS,” A2

Cheap loans could have filled infra gap–DOF

of money around the world was near zero. That was the best time to borrow, and we did not borrow. They were not aggressive enough to fund projects when costs were really, really low,” said Dominguez at a recent news forum. Among the opportunities missed by the past administration because of its failure to borrow cheap funds were the rehabilitation of the Metro Rail Transit (MRT) System Line 3, construction of airports and the expansion of road networks outside Metro Manila. The finance chief emphasized that the government had to act fast because the cost of borrowing money to fund its spending on infrastructure, education and other human capital investments will soon become higher because of the Philippines’s expected rise to the status of an upper middleincome economy. With this, Dominguez explained that “our cost of money is going to be higher because we will no longer qualify for the lower interest rates for poorer countries.” Dominguez was referring to low lending rates granted by development partners to countries classified as low-income and lower middle-income economies. “Now, if we borrow and invest it in projects that don’t make a return, then that’s really very bad. Among the projects that we are investing in is better education. So a better education has a tremendous return to the economy. Also, better health care for Filipinos not only for their personal benefit but for their ability to contribute to the growth our country; and of course, in infrastructure,” he added. For instance, Japan’s Special Terms for Economic Partnership (STEP) facility for its official development assistance (ODA) loans grant lower interest rates with fixed terms to low-income countries. Lower middle-income countries —the Philippines’s current status —do not qualify for STEP rates but may be granted preferential terms but with higher interest rates. Upper middle-income countries get higher interest rates than lower middle-income countries, according to the DOF. See “DOF,” A2

www.businessmirror.com.ph

Debt. . .

Continued from A1

The BSP also reported that the maturity profile of the country’s external debt remained predominantly medium- and long-term in nature, with share to total at 79.1 percent. MLT debt are those with original maturities longer than one year. Short-term (ST) accounts (or those with original maturities of up to one year), on the other hand, comprised the 20.9-percent balance of debt stock and consisted of bank liabilities, trade credits and others. The weighted average maturity for all MLT accounts slightly decreased to 16.8 years from 17.0 years during the previous quarter, with public-sector borrowings having a longer average term of 21.0 years compared to 7.6 years for the private sector. Overall, the BSP said the country’s maturity profile continues to mean that the dollar requirements for debt payments are well spread out, thus, more manageable.

SSS. . .

Continued from A1

This was followed by the Diliman branch with 2,177 approved loan applications for a total P56.09 million in pension loans; Cebu branch with 1,547 applicants for P38.42 million; and Victorias branch in Bacolod City with 1,733 applicants for P36.48 million. Of the total number of approved loan applications, 92.16 percent of the pensioners preferred to pay their loan for 12 months followed by 6.25 percent who chose to pay within six months; the rest, or 1.59 percent opted to pay within a three-month period. SSS President and CEO Aurora C. Ignacio said while the program has met its objective to provide immediate financial assistance to pensioners for their short-term and emergency needs, she urged pensioners to be vigilant and avoid transacting with “fixers” for their SSS transactions, especially for the PLP. “We are pleased to note that our pensioners are now relying on SSS for their immediate financial needs instead of going to loan sharks. But sad to say, there are people who take advantage of our pensioners during their times of need. This has to stop. And this will only stop if our pensioners will no longer entertain any deal with these individuals who exploit them,” Ignacio said. It was pointed out that the SSS received an incident report from its Bacolod branch that 15 pensioners fell victim to unscrupulous fixers whose modus operandi was to advance portions of their approved SSS pension loan, then run away with the pensioners’ cash cards.

5,000 The number of TNVS units Grab deactivated recently due to their lack of proper license to operate. Grab explained it had no choice but to yield to regulators

deactivation of TNVS units. “We are again calling on TNVS providers, especially Grab Philippines and the Land Transportation Franchising and Regulatory Board [LTFRB], to work together to ensure that there will be more TNVS units available for commuters,” he said. Morillo added that the regulator should consider increasing the 65,000-unit cap for TNVS to prevent a repeat of this incident. “Besides preventing mass deactivations in the future, it is also best if the LTFRB can raise the cap for TNVS units,” he added. He noted: “While the existence of TNVS provides a certain level of convenience and comfort to some commuters, the ultimate solution to the problems of the Filipino commuter dwells on the development of an affordable, quality and reliable mass transportation system.” There were 100 respondents to the survey, whose majority claim to use Grab more than twice per day.

The country’s debt stock is also evenly spread between the private and the public sector. In particular, public-sector external debt increased to $40.2 billion from $39.7 billion in the previous quarter, hitting a total share of 49.9 percent in the country’s external debt profile. About $33.9 billion (84.5 percent) of publicsector obligations were NG borrowings while the remaining $6.2 billion pertained to other government agencies’ loans. Private-sector debt also rose from $39.3 billion as of end-December 2018 to $40.3 billion as of end-March 2019, with share to total of 50.1 percent. The recorded rise in private-sector borrowings was due largely to prior periods’ adjustments of $1.0 billion. Major creditor countries are: Japan with $14.4 billion, the United States with $3.7 billion, the Netherlands with $3.7 billion and the United Kingdom with $3.4 billion. In terms of currency mix, the country’s debt stock remained largely denominated in US dollar at 61.2 percent and Japanese yen at 12.7 percent. The pensioners filed a case against the suspects with the National Bureau of Investigation (NBI) on April 24, 2019. “We urge our retiree pensioners to be vigilant. Do not transact with non-SSS employees. Those who want to avail themselves of the pension loan must personally apply in our branch offices nationwide,” she added. In March, SSS relaxed its guidelines for more than 1.2 million qualified retiree pensioners so that those receiving their monthly pension even for just a month and are already posted in the system may qualify for the PLP. Previously, a retiree pensioner must be receiving a monthly pension for at least six months to qualify for the pension loan. Furthermore, the new guidelines for PLP application also allowed the presentation of other government-issued identifications cards aside from the Social Security Card or Unified Multi-Purpose Identification (Umid) card as a form of identification. Last month, the SSS reported that pension loan releases under the PLP reached P788.664 million to more than 32,872 retiree pensioners as of end-March this year. The SSS launched its PLP in September 2018 in celebration of its 61st anniversary. It was intended to be offered to retiree pensioners for a period of only one year, but became a permanent loan facility of SSS under Republic Act (RA) 11199 or the Social Security Act of 2019, which took effect in March this year. The PLP only has a 10-percent interest per annum, which is a lower interest rate compared to high-interest loan offerings of some financial institutions. Rea Cu

Editor: Efleda P. Campos

Companies BusinessMirror

Monday, June 17, 2019

B1

Tanduay retains top rum brand for 2nd straight year

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By VG Cabuag

@villygc

ANDUAY Distilleries Inc. said its brand has retained the world’s top rum brand for the second straight year, beating known brands such as Bacardi and Captain Morgan, but the company is unsettled with the impending excise tax increases that can dampen its growth. The citation of the world’s top rum brand came from Drinks International magazine, but it was mainly based on the volume of cases sold last year. Drinks International is a global spirits market organization which rewards the greatest drinks in different categories. It releases annual industry updates and rankings of brands that record volumes of a million 9-liter cases or above the previous year. Tanduay sold 20.1 million cases last year, 3 percent higher than 2017’s 19.5 million cases. This is higher than second-ranked Bacardi’s 17.1 million cases for 2018, and Captain Morgan’s 11.7 million cases sold. The ranking was based on the magazine’s World Million-Case Spirits Brands, which tracks record volumes sold of all spirits. “This is a milestone not just for Tanduay, but for the Philippines as well. This shows that Filipino craftsmanship is truly world class,” said Lucio Tan Jr.,

Tanduay’s president and COO. “Exports expanded as far as the US, Europe and Asia. We have also embarked on high-profile marketing initiatives. Today, we are reaping the fruits of our hard work. We have once again maintained our stature as the world’s No. 1 rum,” Tan said. “It was difficult to remain on top. The challenge was to remain on top,” he said. Tanduay admitted it remained mainly a local brand compared to its competitors. Nestor Mendones, the company’s CFO, said the company will be “lucky” if Tanduay hits 1 million cases from the overseas market over time. “We are only selling 5,000 cases from the US market alone. But our margins were higher from those bottles we sell from the overseas market,” Mendones said. The company is bracing itself for another round of excise-tax increases on its products, which when excessively slapped may be detrimental to the industry, Mendones said.

Paul Lim, chief marketing officer of Tanduay, said their company embarked on an “aggressive marketing plan and an intensive dealer retention plan” three years ago. “The company increased its market presence abroad by expanding its distribution networks in the US, Middle East, Europe and soon here in Asia, starting with a distribution deal for Singapore this July,” Lim said. In an interview with the Philippine News Agency (PNA), Lim explained Tanduay has adjusted “in every area to meet the rules of liquor of every country their rum products have reached.” “We had to meet the requirements, observing their restrictions. So, we made adjustments on the rum’s taste, labels, because the liquid profile here in the Philippines won’t be necessarily approved in China and the US, and in the US, every state has regulations,” he said. For Tanduay rum to be more competitive in Singapore, Lim said they have adjusted their product’s packaging from 750 ml to 700 ml “because all their competitors are packaged in such manner with consideration to excise tax.” “In the US, we positioned Tanduay on the premium segment, unlike here in the country where our product is in the mainstream. From the consumers’ standpoint, even if they don’t drink, they would really love to see a Philippine product growing globally and being patronized by consumers abroad,” he added. Gerry Tee, overall head of Distilleries Operations of Lucio Tan Group of Cos., said Tanduay Dis-

tillers Inc. is adopting more efficient technologies to decrease its dependence on nature. “Our industry, the distilleries is one of the most resource-intensive industries that require a huge amount of water and energy, two of the most utilized resources of industrialization in developing economies. So, we have put up our own dehydrator to lessen our dependence on fresh water; we have also installed solar panels on our warehouses to have renewable energy for our operations,” Tee added. In a related development, Mendones warned there may be an influx of foreign brands, or worse, smuggling of alcohol products into the country when there’s an excessive increase of excise tax, which companies can pass on to the consumers, but may dampen the industry’s growth. A Senate version of the excise tax for the distilled spirits—such as gin, brandy, vodka, whiskey, rum and tequila—calls for an increase on the specific excise tax rate to P40 per proof liter effective 2019, followed by an additional P5 per proof liter from 2020 to 2022. From 2023 onward, it will be an additional 10 percent. The ad valorem rate is proposed at 25 percent from 2019 onward. Mendones said they prefer a version in the House of Representatives that called for a lower rate than the Senate version. He said beer should be heavily taxed as well since of the entire alcohol universe, 70 percent consumed beer and only 30 percent was from the spirits market. With a report from the PNA

PLDT tails Globe in 5G service launch By Lorenz S. Marasigan @lorenzmarasigan

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LDT Inc. plans to launch its initial 5G service sometime in the second half of the year more than a quarter behind rival Globe Telecom Inc., which is expected to introduce its 5G product this week. Asked how his group will position itself once Globe claims to be the first Filipino telco to launch 5G services, PLDT Chairman Manuel V. Pangilinan simply laughed, and replied: “We all know that 5G network

is going to be a very cellsite-extensive network. It will be heavy and bloody. So it’s not going to be easy.” In order to be reliable, 5G—which will make use of short-distance, high-capacity frequencies—will require a very contiguous network buildup. Some experts advise a 500foot distance between towers to make 5G a successful product. Globe is expected to introduce its fixed wireless 5G service to the home this Friday. Pangilinan noted his group will most likely launch its own 5G servic-

es for the home and enterprise within the fourth quarter, as the group guns to finish its pilot testing for 5G use cases in the coming months. Currently, the company is testing the 5G radio devices of ZTE, Cisco, Nokia, Ericsson and Huawei. “We might start with the home and enterprise. But what we have to ask are what the relevant cities, customer premises equipment are for home and enterprise,” he said. The method by which PLDT will be delivering its 5G services is expected to be through its fixed wire-

less network. “We think it will open new vistas for new services, new products and new revenues,” Pangilinan noted. 5G is seen as the next mobile technology that will revolutionize not only the way people communicate with each other, but also how devices talk to one another to create a smart environment. Early-use cases seen are connected to the Internet of Things, a school of thought that calls for the connectedness of devices via one medium—the mobile phone.

LT Group to join LNG bandwagon By Lenie Lectura @llectura

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HE group of Lucio Tan is ready to join the liquefied natural gas (LNG) bandwagon, with an investment estimated at $1.5 billion. Gerry Tee, overall head of LTGC Distillery Operations and Absolut Distillers Inc. chief operating officer, said on Saturday this project will be pursued through an LT power firm in partnership with a foreign company based in the region. He, however, could not disclose the identity of the partner, citing confidentiality agreement. “LT Power…I forgot the exact name. It’s a new company that will partner with a foreign company. We will have a partner. I am under nondisclosure agreement, though. Our partner will talk with the Department of Energy [DOE]. They are foreign, but not Chinese. Once they apply with the DOE, we will announce. They are LNG experts,” Tee said. The plan to venture into LNG was hatched two years ago when the group considered the possibility to utilize its 38-hectare property in Batangas for its LNG project. “This is a project of Bong Tan and his dad to utilize the Pinamucan property in Batangas as a possible site for LNG project. We’ve been looking at our assets and we saw this,” Tee said. The Pinamucan property currently houses Himmel Industries Inc., a chemical trading company which currently supplies to almost all industries such as paper, glue, food, pharmaceutical, paint, ink, plastic, printing, rub-

ber, PVC, cement, textile, tobacco and other products. Tee said Philippine Airlines’s (PAL) 10 fuel jet tanks are also located within the property. The rest is idle space. Should the LNG project take off, Tee said Himmel Industries would be relocated, adding the plan is to construct regasification facilities, LNG ter mina l and power plants, possibly with a power-generating capacity of 1,000 megawatts (MW). “Initial data showed we need around $1.5 billion for the power plant, regas and distribution. We are in the initial stages of getting permits and to reconfigure the land to put up the equipment,” he said. Tee said the LT group is very much ready to compete head on with other power firms that are into LNG. Lopez-led First Gen Corp. recently inaugurated its LNG terminal in its Clean Energy Complex in Batangas City. Aside from First Gen, Dennis A. Uy’s Phoenix Petroleum Philippines Inc. and partner China National Offshore Oil Corp. also have a notice to proceed from the DOE to pursue an LNG terminal in Batangas. “We can compete. It’s a big pie. Our advantage is we own the land and we are close to the substation at transmission lines. We know that Malampaya is depleting soon so we want to take this opportunity to expand and utilize the land,” he said. “We have renewable and clean energy, but not in the magnitude of Aboitiz and Lopez, but we are going there. We are just looking for better partners,” he said.

RWM to have the most rooms Solon wants SEC to suspend biz permits of scammers in a single property by year-end A

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ESORTS World Manila will have the most number of hotel rooms in a single property development in the country by yearend with the opening of the Japanese-branded hotel in the second half. Kingson Sian, Travellers Hotel Group International Inc. president and CEO, said it will bring its hotel portfolio to reach 3,555 keys by year-end as it opens its 940-keys Hotel Okura Manila. “That will be a very special hotel. That is the first Japanese-branded hotel in the Philippines,” Sian said after the company’s annual stockholders’ meeting on Friday. It recently opened its 390-room Sheraton Manila Hotel in January this year and the 357room Hilton Manila in October last year. The said hotels form part of Resorts World Manila’s Grand Wing, Phase 3 of the property’s expansion. This also increased RWM’s gaming tables to 625 and its gaming machines to 2,300. “The ground floor of the grand wing is already open, but the second floor will open

in July. That will be an entirely new floor. As you expand the new gaming space, you can develop new junket relationships,” Sian said. Sian said the company may track its firstquarter, double-digit growth of its revenues for the rest of the year with the developments and higher foot traffic. He said RWM attracted 10.5 million visitors last year, an average of 28,000 per day. “Next year, when the hotels are completed, we’ll probably hit close to 40,000 to 50,000 per day,” he said. The company is also developing West Side City in Entertainment City, where it is currently building three hotels with combined rooms of 1,000 keys. The company has committed to spend at least $1 billion in Westside City. In Resorts World Manila, the company has already invested $1.1 billion. Travellers, the gambling arm of businessman Andrew Tan, said its income fell 45 percent during the first quarter to P244.43 million from last year’s P444.04 million. VG Cabuag

LAWMAKER has urged the Securities and Exchange Commission (SEC) and even local government units to immediately suspend the business permits of investment scammers as he vowed to push for the passage of the measure regulating collective investment schemes in the 18th Congress. Ako Bicol Rep. Alfredo Garbin Jr. also asked the Bangko Sentral ng Pilipinas, and the Department of Information and Communications Technology to take strong action against scammers. This year alone, Garbin said the SEC issued 16 advisories warning the public of illegal business practices and dubious investment schemes. “When retirees, seniors, mothers, OFWs, teachers place their hardearned income, savings, retirement pay, or pension in ‘too good to be true’ investment schemes, the Securities and Exchange Commission must do more than just issue advisories,” Garbin said.

“The SEC must investigate, suspend, revoke business documents, and file charges directly with the government prosecutors in the cities and towns where the head offices of the suspected scammers are located,” he said. Garbin also said the SEC must alert the Bangko Sentral ng Pilipinas and the Anti-Money Laundering Council to the suspicious and illegal business behavior of the entities they found to be engaged in investment scams, so that the money trail can be closely monitored and evidence gathered. “When local government officials, who are persons in authority, notice that hundreds or thousands of their constituents are victims of the scammers, they should suspend or revoke the business permits and licenses of the scammers,” the congressman added. Noting that the scammers use the Internet and social media for coordination, communication, and control of their investment schemes “the Department of Justice and the Department

of Information and Communications Technology can also apply our country’s laws against cybercrime.” Meanwhile, Garbin vowed to refile the bill regulating collective investment schemes in 18th Congress. The lower chamber already approved the measure providing for the comprehensive regulatory and legal framework for collective investment schemes, but the Senate failed to pass it during the 17th Congress. The bill refers the collective investment scheme as any arrangement whereby funds are solicited from the investing public and pooled together for the purpose of investing, reinvesting and/or trading in securities or other investment assets or different classes thereof as allowed under this proposed law. Under the bill, all CIS shall be covered, regulated, governed and must comply with the requirements, rules and regulations set under this proposed law. It provides for tax treatment of

CIS which is intended to be sole tax regime for CIS products to the exclusion of all other provisions of the current tax laws. It allows the organization of a Real Estate Investment Trust (REIT), Exchange-Traded Funds and other form of investment arrangements existing and accepted in other international markets, consistent with the International Organization of SEC objectives and principle of Securities Regulation. Meanwhile, violators of the act may face administrative sanctions with a penalty of up to P1 million and criminal penalties with possible penalty of up to P5 million. House Committee on Ways and Means Chairman Estrellita Suansing of Nueva Ecija has said House Bill 8791 will provide more investment opportunities for the low- to middleincome individuals in CIS while giving them access to the capital markets, reap the benefits thereof, including diversification and better returns for investments. Jovee Marie N. Dela Cruz

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Monday, June 17, 2019

MUTUAL FUNDS

Companies BusinessMirror

June 14, 2019

NAV ONE YEAR THREE YEAR FIVE YEAR Y-T-D PER SHARE RETURN* RETURN STOCK FUNDS ALFM ALFM GROWTH FUND, INC. -A 267.65 2.76% 0.52% 1.19% 6.11% ATRAM ALPHA OPPORTUNITY FUND, INC. -A 1.6326 6.55% 9.16% 3.38% 13.31% ATRAM PHILIPPINE EQUITY OPPORTUNITY FUND, INC. -A 4.161 0.6% 0.79% 0.39% 6.61% CLIMBS SHARE CAPITAL EQUITY INVESTMENT FUND CORP. -A 0.9524 4.92% N.A. N.A. 6.95% FIRST METRO CONSUMER FUND ON MSCI PHILS. IMI, INC. -A 0.8873 5.17% N.A. N.A. 8.12% FIRST METRO SAVE AND LEARN EQUITY FUND,INC. -A 5.5605 3.86% 1.24% 1.22% 5.49% MBG EQUITY INVESTMENT FUND, INC. -A 122.11 8.28% N.A. N.A. 4.85% ONE WEALTHY NATION FUND, INC. -A 0.8926 2.06% -3.46% N.A. 7.23% PAMI EQUITY INDEX FUND, INC. -A 53.1775 5.69% 1.78% N.A. 8.07% PHILAM STRATEGIC GROWTH FUND, INC. -A 551.95 4.4% 0.71% 1.06% 7.23% PHILEQUITY DIVIDEND YIELD FUND, INC. -A 1.3447 6.66% 2.4% 3.65% 7.23% PHILEQUITY FUND, INC. -A 39.488 6.75% 3.14% 3.18% 7.8% PHILEQUITY MSCI PHILIPPINE INDEX FUND, INC. -A,3 1.0651 N.A. N.A. N.A. N.A. PHILEQUITY PSE INDEX FUND INC. -A 5.3869 6.5% 2.52% 3.42% 8.63% PHILIPPINE STOCK INDEX FUND CORP. -A 899.5 6.58% 2.23% 3.37% 8.57% SOLDIVO STRATEGIC GROWTH FUND, INC. -A 0.9345 6.5% 1.41% N.A. 8.51% SUN LIFE PROSPERITY PHILIPPINE EQUITY FUND, INC. -A 4.4072 6.89% 2.49% 2.6% 8.58% SUN LIFE PROSPERITY PHILIPPINE STOCK INDEX FUND, INC. -A 1.0337 6.05% 2.16% N.A. 8.32% UNITED FUND, INC. -A 3.7895 6.23% 4.22% 3.09% 8.24% EXCHANGE TRADED FUND FIRST METRO PHIL. EQUITY EXCHANGE TRADED FUND, INC. -A,C,2 120.4193 7.02% 3.2% 4.44% 8.73% ATRAM ASIAPLUS EQUITY FUND, INC. -B $0.9761 -11.85% 5.42% -0.34% 5.06% SUN LIFE PROSPERITY WORLD VOYAGER FUND, INC. -A $1.2784 -2.75% 8.16% N.A. 15.68% BALANCED FUNDS PRIMARILY INVESTED IN PESO SECURITIES ATRAM DYNAMIC ALLOCATION FUND, INC. -A 1.7552 3.18% -0.66% -1.05% 6.3% ATRAM PHILIPPINE BALANCED FUND, INC. -A 2.341 1.86% 0.82% 0.89% 5.97% FIRST METRO SAVE AND LEARN BALANCED FUND INC. -A 2.6814 3.11% 0.21% -1.15% 5.41% GREPALIFE BALANCED FUND CORPORATION -A 1.3653 1.68% N.A. N.A. 4.68% NCM MUTUAL FUND OF THE PHILS., INC. -A 1.9468 4.82% 1.11% 1.45% 5.63% PAMI HORIZON FUND, INC. -A 3.7634 3.91% 0.09% 0.68% 6.63% PHILAM FUND, INC. -A 16.9391 4.62% 0.27% 0.71% 6.48% SOLIDARITAS FUND, INC. -A 2.1665 3.72% 1.27% 2.01% 4.55% SUN LIFE OF CANADA PROSPERITY BALANCED FUND, INC. -A 3.9152 6.1% 1.27% 1.66% 7.22% SUN LIFE PROSPERITY ACHIEVER FUND 2028, INC. -A,D,4 1.0251 N.A. N.A. N.A. N.A. SUN LIFE PROSPERITY ACHIEVER FUND 2038, INC. -A,D,4 1.0249 N.A. N.A. N.A. N.A. SUN LIFE PROSPERITY ACHIEVER FUND 2048, INC. -A,D,4 1.022 N.A. N.A. N.A. N.A. SUN LIFE PROSPERITY DYNAMIC FUND, INC. -A 1.0072 6.93% 1.65% N.A. 9.28% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES COCOLIFE DOLLAR FUND BUILDER, INC. -A $0.0371 6.33% 1.35% 1.76% 5.25% PAMI ASIA BALANCED FUND, INC. -A $0.9717 -7.84% 2.99% -1.13% 3.79% SUN LIFE PROSPERITY DOLLAR ADVANTAGE FUND, INC. -A $3.7058 0.08% 6.08% 2.46% 12.01% SUN LIFE PROSPERITY DOLLAR WELLSPRING FUND, INC. -A $1.098 1.89% 3.67% N.A. 8.71% BOND FUNDS PRIMARILY INVESTED IN PESO SECURITIES ALFM PESO BOND FUND, INC. -A 349.69 3.3% 2% 2.18% 1.84% ATRAM CORPORATE BOND FUND, INC. -A,1 1.8901 1.68% -0.22% -0.24% 1.66% COCOLIFE FIXED INCOME FUND, INC. -A 3.0447 5.52% 5.31% 5.29% 2.49% EKKLESIA MUTUAL FUND INC. -A 2.1776 2.97% 1.12% 1.78% 2.21% FIRST METRO SAVE AND LEARN FIXED INCOME FUND,INC. -A 2.3033 3.88% 1% 1.26% 4.25% GREPALIFE FIXED INCOME FUND CORP. -A P 1.6058 2.05% -0.94% -0.01% 2.65% PHILAM BOND FUND, INC. -A 4.1427 4.49% 0.08% 0.96% 5.69% PHILEQUITY PESO BOND FUND, INC. -A 3.664 4.98% 1.13% 1.31% 4.18% SOLDIVO BOND FUND, INC. -A 0.9368 3.39% -0.32% N.A. 4.95% SUN LIFE OF CANADA PROSPERITY BOND FUND, INC. -A 2.9425 7.42% 1.74% 1.95% 6.38% SUN LIFE PROSPERITY GS FUND, INC. -A 1.6362 7.41% 1.27% 1.52% 6.25% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES ALFM DOLLAR BOND FUND, INC. -A $457.12 3.43% 1.84% 2.72% 1.97% ALFM EURO BOND FUND, INC. -A Є216.63 1.92% 1.38% 1.46% 1.87% ATRAM TOTAL RETURN DOLLAR BOND FUND, INC. -B $1.1787 6.05% 1.83% 2.27% 4.7% FIRST METRO SAVE AND LEARN DOLLAR BOND FUND, INC. -A $0.0255 3.24% 1.07% N.A. 2.82% GREPALIFE DOLLAR BOND FUND CORP. -A $1.7147 1.21% -1.34% 0.59% 1.45% PAMI GLOBAL BOND FUND, INC -A $1.0803 4.44% -0.29% -1.95% 4.12% PHILAM DOLLAR BOND FUND, INC. -A $2.3215 8.44% 1.21% 3% 6.92% PHILEQUITY DOLLAR INCOME FUND INC. -A $0.0589018 3.84% 1.5% 1.75% 3.37% SUN LIFE PROSPERITY DOLLAR ABUNDANCE FUND, INC. -A $3.0523 5.85% 0.6% 2.41% 6.27% MONEY MARKET FUNDS PRIMARILY INVESTED IN PESO SECURITIES ALFM MONEY MARKET FUND, INC. -A 123.23 3.6% 2.35% 1.88% 1.98% FIRST METRO SAVE AND LEARN MONEY MARKET FUND, INC. -A,5 1.0137 N.A. N.A. N.A. N.A. PHILAM MANAGED INCOME FUND, INC. -A 1.2105 3.65% 1.61% 1% 2.42% SUN LIFE PROSPERITY MONEY MARKET FUND, INC. -A 1.242 3.6% 2.61% 1.99% 1.89% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES SUN LIFE PROSPERITY DOLLAR STARTER FUND, INC. -A $1.0271 2.11% N.A. N.A. 1.1% 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.

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Tanduay to resubmit bid for CADP land and assets

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By Lenie Lectura

@llectura

ANDUAY Distillers Inc. (TDI) will resubmit a bid proposal to acquire the assets of sugar-milling firm Central Azucarera Don Pedro Inc. (CADP). “We are talking with Manuel V. Pangilinan. We are trying to rebid because they said the last bid we submitted was quite low. Last time when we submitted three to four weeks ago, it was P4 billion something. I’ve been trying to get CADP for the last two years because it is adjacent to my plant. We are just separated by a river,” said Gerry Tee, overall head of LTGC Distillery Operations and Absolut Distillers Inc. chief operating officer. TDI is currently conducting due diligence, after which the revised bid will be submitted “probably next week.” There are two to three other interested bidders. Tee said TDI would bid for the asset, including equipment and land, not the company. “We want to acquire the land and assets, refinery and distillery, not the company. We are not interested in their name. Just asset buyout. The land is around 200 hectares,” Tee said.

In an earlier disclosure to the stock exchange, TDI said it has always been on the lookout for opportunities to support, enhance and expand its operations. CADP, located near a subsidiary of TDI in Balayan, Batangas, is a logical target of interest as it will be complementary to its operations. “The primary motive is for us to get our raw materials secured. Molasses is needed to produce alcohol. It’s the first time, I think, that a distillery will buy into a sugar plantation. It will complete the whole picture of Tanduay, because we do not have a sugar mill,” he said. If and when TDI will succeed, Tee said the company would rehabilitate and modernize the facility in order to benefit more farmers. “When we get it, we will need to rehab it and increase its efficiency. Our thrust is to invest and put in more capital into CADP just in case we win. Initially, it’s around P150 million to P200 million,

Miaa gives tokens to male passengers on Father’s Day

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HE Manila International Airport Authority (Miaa) is giving away tokens as Father’s Day gifts to male air passengers. LED flashlights, bag tags, ballpens, coasters, cell-phone tags and bottled water were the tokens given by the Public Affairs Office female employees starting at 4 a.m. Airport General Manager Ed Monreal said the Miaa joins the rest of the agencies under the Department of Transportation in giving out simple gifts to fathers traveling through the Ninoy Aquino International Airport. “I am glad the premier airport has started this first-ever treat intended for fathers like me,” Monreal said. This effort is being done by the entire DOTr family, spearheaded by Secretary Arthur Tugade, as an act of appreciation for passengers’ continued patronage of the country’s transportation hubs as well as an expression of malasakit or care beyond duty, the Media Affairs Department said. Recto Mercene

but if we expand further in phases, it would be billions. The equipment, we will do these in phases, maybe total of four phases,” he said. “We want to really gamble on CADP because we know we can help it and improve it by pouring investments and capitals. Bong Tan wants to make sure the sugarcane farmers are well taken care of. If we modernize the facilities, it will yield better results and their income will rise,” Tee said. Sugarcane areas in Batangas are dwindling because of low income for the farmers. “If your facilities are old and outdated, your efficiency goes down and that means less sugar for the farmers to get from the canes,” Tee said. Earlier, the company was looking at putting its own sugar mill, but Tee said this was set aside pending the outcome of the bid. Should the company fail to win, Tee said the company will pursue earlier plans of putting up its own mill. “It is cheaper to get my own mill, but CADP has a refinery and has a bigger land. If I make my own mill, it will be smaller because my land is limited. The CADP mill is capable of processing 12,000 tons per day. With ADP, there will be bagasse. We will just improve their facilities for us to generate more electricity from bagasse,” he said.

STOCK-MARKET OUTLOOK LAST WEEK

SHARE prices went almost unchanged for the second week in a row, but foreign funds started to flow into the market. The benchmark Philippine Stock Exchange index gained 6.22 points to close at 7,990.2 points. Foreign investors were net buyers at P1.64 billion, while average volume of trade for the four-day trading week was at P6.25 billion. “Since the beginning of the June, the main index has been trading within a 2-percent range between 7,950 and 8,100. Foreign funds flowed into our market this week.... This ends a trend of foreign outflows since the beginning of May,” said Christopher Mangun, research head at Eagle Equities Inc. The main index closed at the 8,000-point level on Monday, but gave up all the points it gained by the end of the week. Other subindices ended mixed with the broader All Shares index down 5.88 points to 4,884.91; the Financials index gained 5.96 to 1,742.79; the Industrial index rose 177.29 to 11,731.32; the Holding Firms index fell 102.64 to 7,542.51; the Property index declined 1.09 to 4,332.57; the Services index was up 24.19 to 1,694.87; and the Mining and Oil index plunged 143.67 to 7,152.78. Losers outnumbered gainers 124 to 87 and 31 shares were unchanged. Top gainers were Cyber Bay Corp., Ginebra San Miguel Inc., Cemex Holdings Philippines Inc., Abacore Capital Holdings Inc., Victorias Milling Co. Inc. and Phinma Petroleum and Geothermal Inc. Top losers were Lopez Holdings Corp., ABS-CBN Corp., Oriental Petroleum and Minerals Corp. A, F and J Prince Holdings Corp. A, Cityland Development Corp., and Metro Alliance Holdings and Equities Corp. A.

THIS WEEK

SHARE prices may again try to pierce the 8,000-point level this week, but trading may still be volatile due to other factors, such as the US-China trade talks. “Overall, the main highlight is liquidity with lesser need to crowd out the private sector for fiscal funding, given the array of investment initiatives and other funding avenues,” broker 2TradeAsia said. It recommended to take positions on stocks that provide good dividend payout. Meanwhile, Mangun said that despite some profit-taking at heavy resistance levels, the market is not seeing a massive selldown at support. “This is an indication the market wants to go higher and the last two weeks has been in preparation to do so. Trading within a tight range is known as ‘congestion’ and usually after these periods of congestion is a big move. I am more inclined to believe that the market is going to rally as companies across the board are expected to post robust earnings in the following weeks,” he said.

STOCK PICKS

BROKER Regina Capital and Development Corp. gave a buy recommendation when its support price holds for the stock of Ayala Corp. of between P837 and P850 per share. “All indicators are on weakening buying signs, but the spike in momentum could lead to a crossover to selling territory within the next few days. The stock already broke its two support levels of P892.27 and P900.10 within the previous day. This brings the next most reliable support levels at 850.13 and P837.86,” it said. Shares of Ayala closed Friday at P900 apiece. Meanwhile, it also gave a buy recommendation on the stock of International Container Terminal Services Inc. (ICTSI), but only during pullbacks after it continued its weeklong climb, even after the midweek holiday break. “ICTSI, yet again, reached a new all-time high of 148.90, with its closing price just 0.40 point below at P148.50. Despite this, all indicators still show strong buying pressure. The bullishness is showing no hint of slowing down, at this point, with the upturn possibly lasting the rest of the week until the stock establishes a solid resistance,” the broker said. Shares of ICTSI closed last week at P148 apiece. VG Cabuag

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Banking&Finance BusinessMirror

Monday, June 17, 2019

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National govt subsidy in April at ₧5.115B

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HE subsidy provided by the national government for the month of April amounted to P5.115 billion, increasing by 32 percent, with the National Irrigation Administration (NIA) receiving the bulk of the funds, data from the Bureau of the Treasury (BTr) showed.

Based on BTr data, the government provided subsidies amounting to P5.115 billion, 32 percent higher than the P3.874 billion in April 2018. Broken down, the National Irrigation Administration received the bulk of the subsidy amounting to P3.797 billion, followed by the Philippine Crop Insurance Corp. at P644 million, the Philippine Rice Research Institute (PhilRice) with P147 million and the National Dairy Authority with P106 million. Other government-owned and -controlled corporations (GOCCs) who received subsidy for the month

include: the Philippine Heart Center with P96 million, the Philippine Children’s Medical Center with P67 million, the Development Academy of the Philippines with P57 million, the National Kidney and Transplant Institute with P50 million, and the Center for International Trade Expositions and Missions with P46 million. The Cultural Center of the Philippines received P24 million, the Lung Center of the Philippines with P17 million, the Philippine Coconut Authority with P14 million, and the Philippine Institute for Development Studies with P11 million. The Philippine Institute of Tradi-

tional and Alternative Health Care and the People’s Television Network Inc. received P6 million each. The Light Rail Transit Authority, the Credit Information Corp. and the Philippine Center for Economic Development each received P5 million. The Aurora Pacific Economic Zone and Freeport Authority, the Southern Philippines Development Authority and the Zamboanga City Special Economic Zone Authority received P4 million each. A subsidy aims to help these GOCCs reduce expenses as it supports the growth of different sectors.

From January to April this year, the government has already provided subsidies amounting to P14.419 billion, contracting by 70.6 percent compared to the P49.162 billion recorded in the same four-month period in 2018. The government had operated under a 2018 reenacted budget since January this year, as the two chambers of Congress got embroiled in a standoff in the passage of the P3.7-trillion cash-based budget bill for 2019. President Duterte was only able to sign the 2019 budget bill on April 15. Rea Cu

Perspectives Party-list rep. sees OFWs paying $3.2B in bank remittance charges this year Super app or super disruption? O A VERSEAS Filipino workers (OFWs) are projected to pay up to $3.2 billion in bank remittance charges this year to send home $29.8 billion in cash, the leader of ACTS-OFW party-list said on Sunday. “Philippine banks and their foreign correspondents are taking unreasonably high cuts out of the cash wired home by migrant Filipino workers,” said ACTS-OFW Rep. Aniceto D. Bertiz III. Citing the World Bank’s periodic Remittance Prices Worldwide Report, Bertiz said that in the first quarter of 2019, banks remained the most expensive type of service provider, charging an average of 10.90 percent of the amount sent. “ We ex pect OFWs to send home an aggregate of $29.8 bil-

lion in cash v ia the banking system this year, up 3 percent from $28.9 billion in 2018,” Bertiz was quoted in a statement as saying. “To transfer the entire $29.8 billion home, OFWs will be forking out 10.90 percent, or some $3.2 billion, to pay for bank fees.” Remittances represent a huge source of income for millions of Filipino families and a key driver of national economic growth, according to Bertiz. “If we can get banks to slash their remittance prices by onehalf, this would mean an extra $1.6 billion or about P83.2 billion flowing into low-income and middle-income Filipino households and into the economy,” Bertiz said. The additional P83.2 billion

BOC-Cebu posts P123-M surplus collection for May

China Banking Corp. cited as one of PHL’s best-governed listed firms

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EBU CITY—Despite the two holidays this month, the Bureau of Customs (BOC) Port of Cebu on Friday said its revenue collection for June is on track, as it underscored the May surplus collection of P123.41 million. BOC-Cebu Collector Elvira Cruz said the port posted a collection of P3.06 billion, which is 4.20 percent higher from P2.94 billion. “It means a total surplus collection of P123.41 million,” Cruz said in a message sent to the Philippine News Agency (PNA) on Friday. In his collection report addressed to Cruz, BOC-Cebu Cash Division Chief Conrado Abarintos said the May revenue collection in Cebu port was “substantially higher” than the amount collected in the same month of 2018. Abarintos told the PNA in a phone interview that the P3.06-billion May collection this year is higher by P442.16 million compared to the Cebu port collection of P2.62 billion during the same month last year. “This collection performance is made possible, kudos to the men and women of the Port of Cebu for their unrelenting effort to help the government in collecting the revenue needed in order for it to continue serving the Filipino people,” Cruz said. As the economy of Cebu and Central Visayas remains bullish, Abarintos is hoping that more volume of imported goods will arrive via Cebu port and translate such activities with more revenue collection out of duties and taxes paid by importers. “We, in the Port of Cebu, are hoping that we will have a better volume of entries filed in the remaining half of the month of June,” Abarintos said. The chief of the cash division of BOC-Cebu attributed the May revenue collection to the volume of oil importation that arrived in the first few days of June. The said oil importation was supposed to arrive in the last week of May, he said. PNA

every year would go a long way in enabling millions of remittancedependent Filipino families to acquire new homes, send their children to college, buy health and life insurance protection or to start small enterprises, Bertiz pointed out. T he United Nat ions has a social development goal to reduce the global average price of a remittance to just 3 percent of the amount sent, while the G -20 has committed to help lower the cost to 5 percent, the statement said. Banks capture up to 85 percent of the remittances from OFWs. The rest is picked up by postal offices, money transfer operators (MTOs) and mobile money service providers, Bertiz said. B er t i z sa id post a l of f ices

charged an average of 7.26 percent in remittance fees in the first quarter, while MTOs such as The Western Union Co. and MoneyGram International Inc. collected an average of 6.06 percent. “Mobile money” service providers remained the cheapest, charging an average of only 2.92 percent, according to Bertiz. The Philippines ranks fourth among the world’s top 5 remittance recipients, receiving an estimated $34 billion in 2018, according to the World Bank. The amount includes some $5 billion coursed through nonbank channels. The other top remittance recipients in 2018 were India ($79 bi l lion), China ($67 bi l lion), Mexico ($36 billion) and Egypt ($29 billion).

NEW breed of tech giant is emerging out of the East—super apps—and they are already encroaching on traditional financial services territory. Do you have a strategy for success in a super-app world? If you reside in the West, you may have heard of super apps. If you live in Asia, you probably spend most of your “screen time” using one. So what exactly are super apps and why are they so revolutionary? Super apps essentially serve as a single portal to a wide range of virtual products and services. The most sophisticated— apps like WeChat and Alipay in China—bundle together online messaging (similar to WhatsApp), social media (similar to Facebook), marketplaces (like eBay) and services (like Uber). One app, one sign-in, one user experience—for virtually any product or service a customer may want or need. Due in large part to their versatility, super apps have quickly become ingrained into users’ daily lives. It is not unusual for a WeChat user in China to set up a date with a friend via instant messaging, make dinner reservations, book movie tickets, order a taxi and pay for every transaction along the way, all using one single app.

The threat within

CHIB President William C. Whang is flanked by Institute of Corporate Directors CEO Alfredo E. Pascual (left) and SEC Chairman Emilio B. Aquino (right).

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HINA Banking Corp. (Chib) announced recently it was recognized anew for its excellence in corporate governance and commitment to international best practices. The Institute of Corporate Directors (ICD) conferred a fourarrow recognition to Chib at The Association of Southeast Asian Nations (Asean) Corporate Governance Scorecard (ACGS) 2019 Recognition Night on June 11 at the Conrad Manila Hotel in Pasay City. The four-arrow recognition represents Chib’s achievement of scoring 110 to 119 points out of the 130 highest possible points in

the ACGS, the bank said in a statement. Chib is the only bank among the six publicly listed companies (PLCs) with this score range in the 2018 ACGS. The ACGS is an instrument for assessing the governance practices of listed companies in the participating Asean member-countries. Aligned with the corporate governance principles by the Organization for Economic Cooperation and Development (OECD), the ACGS encourages PLCs to go above and beyond national legislative requirements and adopt international best practices to boost

investor confidence. “Good corporate governance is in [the bank’s] DNA. We are committed to uphold the high standards set by the ACGS to remain sustainable and to create shared value for all stakeholders,” Chib President William C. Whang said. Aside from the four-arrow recognitions given to six PLCs including Chib, ICD awarded 42 other PLCs with three-arrow (100 to 109 points), two-arrow (90 to 99 points), and onearrow (80 to 89 points) recognitions. Chib, founded in 1920, is one of the largest private universal banks in the Philippines.

Bank of Thailand policy-maker sees trade woe if Trump reelected

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RADE-reliant Thailand better get used to worrying about the export outlook if President Donald J. Trump wins a second term, according to an official who helps to decide the country’s policy interest rate. “The US-China trade war has haunted us,” Somchai Jitsuchon, a member of the Bank of Thailand’s monetary policy committee, said in an interview. “And that may continue for a long while, especially if Trump

gets voted in again.” Growth in Southeast Asia’s second-largest economy slumped to a four-year low last quarter, in part as exports tumbled. Thailand’s shipments of items such as automotive and electrical parts feed into China’s supply chain, exposing it to the fallout from the tension between the world’s two largest economies. The Bank of Thailand has left its key rate unchanged since a hike in December to 1.75 percent, the first

increase since 2011. It has said that policy will be guided by future economic reports amid heightened uncertainty. Somchai reiterated that position, saying the monetary policy panel is “open to all possibilities and data dependent.” It’s also concerned about financial stability, he said. Moderating tourism is another of the challenges facing the Thai economy, Somchai said. BloombergNews

WHILE the rise of super apps in the East may seem like a fairly peripheral trend to the banking sector, the reality is they have the potential to upend it. There are three reasons bankers should take heed of the developments very closely. 1. They are disintermediating banks from their customers. Super apps like WeChat and Alipay offer a range of basic banking, savings and investment products to customers. While (for now) these products are being originated and underwritten by traditional financial institutions, this still means that these institutions are being moved one step further away from their customers. Much like what happened in the insurance sector with platform plays and aggregators, traditional financial institutions may quickly

find they have been relegated to performing the regulated activities while the super apps retain the customer experience and relationship. 2. They are using their vast wealth of data to deliver better services. It’s not just that super apps have access to an unprecedented amount of customer data, it’s that they know how to use it to deliver better customer experiences. They are using their data to improve operational processes—like using social media and transactional data to risk-assess loan applicants, and they are using their data to better target financial products to customers, at the exact time they need them. Traditional banks, with their siloed data and mainframe technology estates, are struggling to get as good a view of their customers. 3. They are building their brand reputations in financial services. Offering payment services within the app may seem fairly innocuous at first; a marketplace without a payment mechanism may be doomed from the start. Currently, the vast majorit y of these pay ments a re f low i ng t h rough t rad itional banking and card issuer infrastructure. However, most of the bigger super apps now also have strong relationships with banking arms (WeChat has WePay for payments and WeBank for banking products; Alibaba has AliPay and Ant Financial) who are using the super app’s brand reputation and reach to access new customers and build trust in financial services. The excerpt was taken from the KPMG article series entitled “The Future is Open.” © 2019 R.G. Manabat & Co. is a Philippine partnership and a member-firm of the KPMG network of independent memberfirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in the Philippines. For more information on KPMG in the Philippines, you may visit www.kpmg.com.ph.

B4 Monday, June 17, 2019

Sports WOODLAND BusinessMirror

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| Monday, June 17, 2019 mirror_sports@yahoo.com.ph Editor: Jun Lomibao

By Doug Ferguson

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The Associated Press

EBBLE BEACH, California— Gary Woodland hit a shank and a chunk and both times made par, and he made a birdie from a deep divot in the fairway. Such moments, even on a Sunday, can go a long way toward winning a US Open. Even better for Woodland was a two-under 69—and just two bogeys over 54 holes at Pebble Beach—for a one-shot lead over Justin Rose. “I worked for this my whole life,” Woodland said. “I know what it takes to win. And my game is in a great spot. I’m at a beautiful golf course. I came here to win, and that’s what we’re going out to do tomorrow.” He’s not alone in that thinking. Rose was right where he wanted to be after working more short-game magic from bunkers and thick grass and awkward spots around greens that were getting a little firmer and faster, even under another day of thick marine layer that has blanketed the Monterey Peninsula all week. He has 34 one-putt greens through 54 holes, the last one an up-and-down from the bunker for birdie on the par-5 18th for a 68 that put him in the final group. “One back gives me the freedom to feel like I’ve got everything to gain, nothing to lose,” said Rose, the 2013 US Open champion at Merion. “I’m not chasing, really. I’m so close

to Gary that I have to go out and play my game tomorrow.” Brooks Koepka thinks he can win because no one has been winning majors like him in the last two years. He played bogey-free for a 68, settling for par when he made a bold attempt to slash a fairway metal around a cypress on the 18th hole. Four shots behind is close enough for Koepka to have a shot at a record that has stood for 114 years as he tries to join Willie Anderson with a third straight US Open title. “I feel as confident as ever right now,” said Koepka, words that carry a

little more weight from a guy who has won four of his last eight majors. Standing in the way of all of them is Pebble Beach, a strong enough test that has been missing strong wind, its best defense. The final hour of the third round gave a glimpse of possibilities, how fortunes can change quickly. Woodland twice looked as though he were about to lose two shots or more of his lead until chipping in from 35 feet on the par-3 12th hole, and holing a par putt from just over 40 feet on the par-5 14th. “I’m excited to be where I’m at

CLINGS, ROSE RISES GARY WOODLAND watches his tee shot on the 18th hole during the third round of the US Open golf tournament on Sunday in Pebble Beach, California. AP

right now,” Woodland said. He was at 11-under 202 and with hardly any margin for error against Rose. Koepka had some theatrics of his own, misjudging a lie in the rough so deep he could barely see the golf ball left of the 15th green. It sailed long into the first cut, some 35 feet away, and he holed the putt for par to keep a clean card. He was part of a group four shots back that included Louis Oosthuizen, who birdied three of his last four holes to salvage a 70; and Chez Reavie, who made his share of long par putts for a 68. Koepka won at Erin Hills in 2017 with his power and at Shinnecock Hills last year with his clutch putting. He might need a little of both to make up a fourshot deficit at Pebble Beach, though he brings the most recent experience handling the pressure of a final round in a major. He is going for his fifth major title in his last nine tries, a stretch not seen since Tiger Woods at his peak. “I just enjoy the pressure,” Koepka said. “I enjoy having to hit a good golf shot, making a putt when the pressure is on. If you’re within three on the back nine, anything can happen. Hang around all day and see what happens.” Curtis Strange, the last player with a shot at three straight US Opens, also shot 68 in the third round in 1990 and got within two shots, only to fade with a 75 on the final day. Rory McIlroy didn’t get enough out of how well he hit the ball and had to settle for a 70, leaving him five shots behind. As for Woods, he joined a list of big names that went the wrong direction. Woods had a 71 and was 11 shots behind. Dustin Johnson also had a 71 and was nine back. Phil Mickelson saw his career Grand Slam hopes vanish at sea when he hit driver in the Pacific on the 18th hole and made triple bogey for a 75. Woodland, who led by two to start the third round, stretched it to as many as four shots when Rose shanked a bunker shot from in front of the par-3

fifth green, and Woodland followed with a 10-foot birdie putt on the par-5 sixth. That ended with a two-shot swing on the tough eighth hole, where Rose birdied from 10 feet and Woodland took three putts from the back of the green, ending his amazing streak of 34 straight holes without a bogey. And then came his biggest two shots, both for par. Woodland thought his tee shot on the 12th was pure, even twirling his club as it descended. It came up short and in a nasty in the wispy, shin-high grass. Gripping the club at the shaft, he shanked it to the right into light rough. With Rose inside 10 feet for birdie, it looked like a two-shot swing at the very least. And then Woodland holed it, slamming his fist, a rare show of emotion for one of golf’s coolest customers. “I was trying to avoid the big number,” Woodland said. “Take your medicine and move on. Nice that it went in.” Ditto for the par-5 14th, where he got out of position off the tee. The thick grass right of the fairway grabbed his club and sent his second shot into more rough so deep that he can to play short of the green. Then, he hit his wedge too short and was lucky it stayed on the top shelf instead of rolling back to the fairway. From there, he smiled when his 40-foot par putt went into the center of the cup. Woodland, who played a year of college basketball and was part of a traveling baseball team in high school, has learned to control his emotions in golf. Adrenaline works better when he’s on a fast break, not when he’s chipping in. Emotions could be big tomorrow for all of them, especially on Father’s Day. Woodland’s son is about to turn 2. He is home in Florida with his mother, who is a few months away from delivering twins.

Where are they? Johnson, McIlroy, Spieth stall in US Open 3rd round

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RORY MCILROY of Northern Ireland lines up a putt on the second hole. AP

EBBLE BEACH, California—Dustin Johnson stayed in neutral. Rory McIlroy barely budged. Jordan Spieth went backward. For three players with seven major titles between them, Moving Day at the US Open came and went with barely a ripple—sidetracked by balky putters that couldn’t bail them out of errors they made from the fairways. Spieth shot two-over 73 and fell to one over for the tournament, 12 back of leader Gary Woodland. Johnson shot even to stay at two under. McIlory opened the day in a tie for fourth but shot 70 to fall to sixth, five shots off the lead at six under. “I just didn’t make anything,” Spieth said after a round that included 28 putts, good for 33rd in the 79-man field. “I hit really nice putts, and then they just didn’t go in today. It was actually the best I’ve hit it in quite a while.” A few of Spieth’s misses—like the birdie attempts on a 10-footer on No. 4 and an 18-footer on No. 8—he thought he’d hit perfectly, only to see them slide off at the last second. “You’re looking to shoot five- or six-under in a round like that,” he said. “I pulled the wrong club on 11, and other than that, I didn’t make anything.” About that wrong club—there was no video replay of the

exchange between Spieth and his caddie, Michael Greller, but Spieth blamed him for giving him the wrong club on Thursday, leading to a ball in the ocean, then over the green on No. 8, en route to a double bogey. This time, the wrong club led to double bogey on 11, which put Spieth at two over for the round. Meanwhile, Johnson needed 29 putts. Had any of his five attempts from inside of 15 feet— including an eagle try on 6 and birdie tries on 10 and 13— gone in, this could’ve been a different day for the 2016 US Open champ. Farther up the scoreboard, McIlroy’s chances of going low were pretty much squandered after he played the first seven holes—prime scoring territory at Pebble Beach—at even par, sandwiching five pars between an opening bogey and a birdie on the 98-yard seventh. McIlroy, who needed 29 putts, lost ground to Woodland (11 under), Brooks Koepka (seven under) and Rose (10 under), watched Chez Reavie (seven under) pass him and stayed a shot behind Louis Oosthuizen (seven under). Still in the mix, for sure, which made him glad he didn’t press too hard early and gave himself a chance on Sunday. “You can’t put yourself under pressure to have a crack at those holes,” he said. “You’ve just got to let it happen.” AP

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TROUBLE DEEPENS B

from the IOC “was completely unacceptable, because they were lacking information about the consequences from these decisions and didn’t provide immediate plans for dealing with the situation.” “The reason why I opposed the vote to leave the fate of Aiba in the hands of the vice presidents is that I believed and still believe all Executive Committee members should take the responsibilities together,” she wrote. “After the IOC Executive Board decisions, Aiba made a very short statement but no further actions were undertaken—there was not even one official statement to acknowledge the unprecedented situation we are all in. “You insisted the necessity of unity in Aiba EC and the global boxing family. “It will be only possible if you do not ignore the critical voices from our members.” Grueva’s letter represents a deepening of the split within Aiba after Ukraine’s Volodymyr Prodyvus also criticized Moustahsane and the Aiba administration in correspondence with the Moroccan. Prodyvus cast further doubt on Moustahsane’s ability to lead Aiba as he warned the organization would fail without “immediate, radical cleansing as well as additional substantial reforms.” He also called for an immediate Extraordinary Executive Committee meeting to be held so Aiba could elect a new president and distance itself from the previous leadership in a bid to save its Olympic status post-Tokyo 2020. Insidethegames

ULGARIA’S Emilia Grueva has told Interim International Boxing Association (Aiba) President Mohamed Moustahsane to stop ignoring the “critical voices” within the organization as she became the latest Executive Committee (EC) member to rally against the leadership. In a letter sent to Moustahsane, seen by insidethegames, Grueva added her voice to those on the Executive Committee who have called for Aiba to hold an extraordinary meeting before the International Olympic Committee (IOC) Session later this month. The decision from the IOC Executive Board to suspend Aiba as the Olympic governing body for the sport and strip it of any involvement in the boxing event at Tokyo 2020 will be ratified by the Session, due to be held in Lausanne from June 24 to June 26. The Bulgarian claims an Extraordinary Executive Committee meeting should be called to pave the way for an Extraordinary Congress

to hold elections after Gafur Rakhimov— whose elevation to the top job was the catalyst for the suspension—stepped aside after months of negative publicity in March. Grueva said this should be held prior to the Session to avoid “making the common mistake to wait until the ship has sailed.” She claimed this would show the IOC that Aiba is reforming and would boost its chances of being reinstated after next year’s Olympic Games in Tokyo. Grueva also criticized Aiba’s leadership for the way it has managed the crisis following the IOC Executive Board decision. The Aiba Executive Committee agreed to grant the Aiba Bureau, comprising the five Confederation Presidents, Moustahsane and Executive Director Tom Virgets, the power to respond to the IOC. But Grueva claims the Bureau has not produced a single report since, while claiming a letter sent by Moustahsane to National Federations informing them of the decision

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FURY THRILLS VEGAS

AS VEGAS—Tyson Fury put on a show before, during and after his first bout in the fight capital of the world. The British heavyweight star stopped Tom Schwarz with six seconds left in the second round on Sunday, packing plenty of entertainment into his brief Las Vegas debut. Fury (28-0-1, 20 knockouts) made short work of his previously unbeaten German opponent, battering him with a jab before knocking him down to a knee in the second round right after Schwarz (24-1) landed a big punch. Fury pressed ahead after the knockdown and forced Schwarz’s corner to throw in the towel before the bell. Fighting for the first time since he dramatically rose from a devastating 12th-round knockdown to secure a draw with Deontay Wilder, Fury confirmed his world-class ability following his comeback last year from a twoand-a-half year ring absence. “I came here to enjoy myself and put on a show for Las Vegas,” Fury said. “I hope everybody enjoyed it as much as I did.” Although Fury already had memorable fights in New York and Los Angeles, the Manchester native wanted something special in Sin City, which he once vowed never to visit before he got a fight here. The performance by the world’s lineal heavyweight champion against an overmatched foe was just as dominant as expected, but Fury’s shenanigans before and after the bout at the MGM Grand Garden might prove to be even more memorable. After Schwarz ring-walked to the mellow strains of Bob Marley, Fury appeared in redwhite-and-blue gear—including a top hat—as he stepped through a cordon of showgirls. With a broad grin, he took the ring to James Brown’s “Living in America,” the entire entrance in homage to Apollo Creed’s famed fictional entrance at the MGM Grand in “Rocky IV.” Unlike Creed, Fury survived and won. And after the bout, Fury showed off his

TYSON FURY of England hits Tom Schwarz of Germany during a heavyweight boxing match on Sunday in Las Vegas. AP

decent singing voice in what’s becoming a post-fight tradition. With the microphone in his boxing glove, Fury serenaded his wife, Paris, with Aerosmith’s “I Don’t Want to Miss a Thing.” The first fight of the 30-year-old Fury’s lucrative new co-promotional deal with Top Rank was intended to introduce his violent skills and loquacious character to ESPN’s large audience, and he did both—however briefly. “The key tonight was to enjoy myself,” Fury said. “I used the jab. I was slipping and sliding. I caught him with the straight left. It was a good shot. It could put anybody away. I put on an extra 12 pounds, and I could really feel [the power].” After dominating the first round with his jab, Fury switched to a southpaw stance late in

the second round, and Schwarz caught him with a shot. Fury got mad, battering Schwarz with a combination and dropping him to a knee with a huge right hand to the head. Schwarz got up with a badly bloodied face, and Fury teed off, peppering his turtling opponent with big shots. Referee Kenny Bayless stopped it at roughly the same moment Schwarz’s corner threw the white towel into the ring. The 6-foot-5 Schwarz is highly ranked by the World Boxing Organization, but he had never fought outside his native Germany or the Czech Republic before Fury’s camp picked him for this showcase bout. AP

Laro’t Saya in Tagum, Davao City

families into playing and learning sports together. This was inspired by PSC’s mandate to craft “sports for all” programs by virtue of Section 6-A of Republic Act 6847. Ramirez, during last December’s culmination activity at People’s Park, vowed to bring the LSP in Davao City, saying that it is the agency’s mandate to create a healthy and vibrant citizenry. In Davao alone, thousands of senior citizens, middle-aged, young professionals and youth have already benefited from the program.

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FTER a break, the Philippine Sports Commission (PSC) revived its Laro’t Saya sa Parke (LSP) program in Tagum City and Davao City over the weekend. Lilian Nieva, secretary of PSC Chairman William “Butch” Ramirez, said the LSP in Tagum City was held at the Rotary Park on Saturday, June 15, featuring 10 events. This included zumba, arnis, athletics, boxing, taekwondo, volleyball, gymnastics, frisbee,

wushu and basketball. Nieva said, “The LSP in Tagum will be held every Saturday morning while it will be on Sundays in Davao City at the People’s Park.” Davao City’s edition resumed on Father’s Day, with zumba, taekwondo, muay thai, wushu and karatedo as focused events. Laro’t Saya sa Parke is a park-based and family-oriented sports-for-all program designed as a national campaign to draw the Filipino

WOMEN ATHLETES PUSH PAY EQUALITY By Ronald Blum The Associated Press

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ARIS—Venus Williams joined retired soccer star Julie Foudy and ice hockey player Hilary Knight in the Eiffel Tower to highlight the push for pay equality for women athletes. The trio gathered on Sunday for a forum sponsored by Luna bar and moderated by Catt Sadler, who quit E! in December 2017 after she learned her male cohost earned twice the pay. Williams praised women athletes who had joined the push for better pay and conditions. “Not everyone wants to get on the train,” she said. “So if they don’t want to go to glory and go to the top of the mountain, they can stay at the base camp.” Players on the US soccer team sued the US Soccer Federation in March, charging institutionalized gender discrimination. The USSF countered that pay and benefits for members of the men’s and women’s teams, bargained by separate unions, can’t be compared and said there was no basis for allegations of illegal conduct. Luna Bar announced on Equal Pay Day on April 2 that it was giving each of the 23 women on the US roster $31,250. That amount is how much more the US men receive from the federation for making a World Cup roster. Foudy, a 48-year-old former midfielder who won two World Cups and two Olympics, recited poor conditions for her and teammates in the 1990s, recalling “you’re staying in roach motels and you’re driving the hotel shuttle bus to games.” “We actually won a World Cup in 1991, yet at that time, there was no marketing, there was no support for the team, we were getting $10 a day,” she said. Fifa doubled prize money for the women to $30 million this year from the amount four years ago, and the amount for the winning team is $4 million. That remains a fraction of the money awarded at last year’s men’s World Cup, where France received $38 million from a $400 million pool. Fifa has raised the men’s pool to $440 million for 2022. Sadler, 44, had worked for E! for a dozen years when she learned cohost Jason Kennedy earned what she said was double her pay. “Initially I was pretty ticked off about that, rather infuriated, a little embarrassed,” she said. She said she quit when management refused to remedy the situation.

PANELISTS (from left) Catt Sadler, formerly of E!, hockey player Hilary Knight, retired soccer player and ESPN commentator Julie Foudy and tennis star Venus Williams discuss gender pay inequity on Sunday at a forum hosted by LUNA Bar at the Salon Gustave in the Eiffel Tower, Paris, France. AP

Williams, a five-time Wimbledon and twotime US open champion, got involved in the women’s player council 20 years ago, when she was 18. While the US Open reached pay equality in 1973 after Billie Jean King threatened a boycott, the Australian Open didn’t follow until 2001, the French Open in 2006 and Wimbledon in 2007. “I think the fuel is when people say that you shouldn’t or that it’s not possible or you don’t deserve it,” Williams said. “Don’t tell me what I deserve. I know what I deserve and I will work for what I deserve and I will get what I work for.” Knight, a 29-year-old ice hockey forward, won an Olympic gold medal last year after silvers in 2010 and 2014. She was among 200 women who announced in May that they will not play professional hockey in North America this year in an attempt to establish a single, economically viable professional league. “Enough is enough. I’m done with being

grateful,” she said. “We didn’t have the equitable support that we need.” She praised the women’s soccer team as trailblazers and said hockey players were 20 years behind. Knight revealed a conversation she had with retired soccer goalkeeper Briana Scurry. “It’s sort of like planting seeds. And on one side there’s been a lot of seed planting, a lot of watering and a lot of growth, and that’s the men’s side,” Knight said. “And on the women’s side, unfortunately there haven’t been as many seeds planted and right now we’re trying to open those doors and get those seeds planted, so we can have that growth. We just need the opportunity to do so.” After the US women’s soccer team opened the tournament with a 13-0 win over Thailand this week, US President Donald J. Trump sidestepped a question about whether the women should get equal player. “We’ll talk about that later,” he said.

Anthony Davis trade a win-win for Lakers, Pelicans

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ANTHONY DAVIS might be heading to the Los Angeles Lakers. AP

HE saga is over. When this trade is done, everybody can say they won. The Lakers, the Pelicans, Rich Paul, LeBron James, they all can take a victory lap. The trade that will be official in the coming weeks sending Anthony Davis from the New Orleans Pelicans to the Los Angeles Lakers for Brandon Ingram, Lonzo Ball, Josh Hart and three first-round draft picks— first reported by ESPN, later confirmed to The Associated Press by several people with knowledge of the matter—is perfect for both sides. James gets the superstar teammate he wanted. Paul, the agent James and Davis share, pulls off a power move. The Lakers instantly become major players in a suddenly open Western Conference. Davis finally gets his wish to leave New Orleans. The Pelicans don’t begin Zion Williamson’s era with a disgruntled superstar in the locker room. They load up on young players and have tons of draft chips to play around with. For the Pelicans, it’s a new beginning. For the Lakers, it’s about winning now. Draft picks, including No. 4 in this year’s class, smartly were not overvalued by the Lakers—a team with a superstar who is turning 35 in December and should be doing anything necessary to help him win a fourth championship before his window closes. The Lakers have tons of money to spend starting on June 30, and the sales pitch to Kemba Walker, Kyrie Irving or anyone else

changes mightily after this move. Before Saturday it would have been Lakers General Manager Rob Pelinka saying, “We’re trying to get Anthony Davis.” Now it’ll be Pelinka saying, “We’ve got Davis, we’ve got LeBron and they want you with them.” That’ll be a tough offer for anyone to ignore. James is going to get another Big Three out of this: It was Dwyane Wade, Chris Bosh and him in Miami; Kevin Love, Irving and him in Cleveland; Davis, him and TBA with the Lakers. Clearly, the focus will be on a guard, which is why the rumor mill will be all about either Walker or Irving going to Los Angeles in free agency. The offseason is already in high gear. Hard to believe it really just got started. This deal got agreed to before the newly crowned National Basketball Association champion Toronto Raptors— this is true—hoisted the Larry O’Brien Trophy on Canadian soil for the first time. They won on Friday at Oracle Arena to end Golden State’s reign, then stopped for a party in Las Vegas before the parade in Toronto on Monday. Not even 48 hours after they popped corks, the Lakers were starting their own celebration. Williamson will get drafted No. 1 overall on Thursday night, and he’ll go to New Orleans in the awkward spot of being an 18-year-old (he doesn’t turn 19 until July 6) with a franchise on his shoulders. The Lakers will still be drafting No. 4 overall, though they’ll be doing so on New Orleans’ behalf because the trade cannot be consummated beforehand. The Pelicans need a center, and will likely look at the trade market. AP

orts

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AUSSIE TOPS STAGE 3; MEIJERS KEEPS GC LEAD L

EGAZPI CITY, Albay—Australian Samuel Hill of Team Nero Bianchi outlasted a pair of Filipino challengers in the final stretch to claim his first-ever lap victory in Stage 3 even as Dutch Jeroen Meijers of Taiyuan Miogee Cycling Team of China clung to the Air21 purple jersey in the 10th Le Tour de Filipinas on Sunday. Hill, 23, was with the small five-rider group that broke loose as early as the first 3 kilometers of this 183.7-kilometer stage and then made his move against local bets Dominic Perez of 7-Eleven Cliqq-Air21 Roadbike Philippines and Mark Galedo of Celeste Cycles-Bianchi Phls in the final 10-km downhill path to claim his very first stage win. The Newcastle native clocked four hours, 33 minutes and 12 seconds, while Perez and Galedo, the 2014 winner here, timed in 4:34:03 and 4:34:06, respectively, in this stage that started in Daet, Camarines Norte, and ended at the Rizal Avenue here. It was a big turnaround from the disastrous Stage 2 when Hill slipped from the lead pack after puncturing a tire. “Last Saturday was just a bad day and I was so sad of what happened, so this is the best feeling ever and I feel so stoked about it,” said Hill. The podium finish for Perez and Galedo, however, gave the Filipinos, who are seeking to gain Olympic qualifying points to the 2020 Tokyo Games, something to cheer about as they were the

PARTICIPANTS pedal through the backdrop of the shy Mayon Volcano in Albay as Aussie rider Samuel Hill of Team Nero Bianchi and Dominic Perez of 7-Eleven Cliqq-Air21 lead the breakaway group in Stage 3 of the 10th Le Tour de Filipinas on Sunday. STEPHANIE TUMAMPOS

first two local bets to crash into the top 3. And the 33-year-old Galedo, who climbed to 14th overall, hopes it will not be the last. “There are still two stages to go so there is still a big chance for us to keep improving,” Galedo said in Filipino. A day after losing and regaining the general classification lead in Stage 2, Meijers made sure

his closest pursuer, Singaporean Goh Choon Huat of Terengganu Inc. TSG Cycling Team of Malaysia, will not be out of sight and stuck with him the whole time and finished in the peloton that clocked 4:35:06. After three stages, Meijers kept his grip of the general classification lead with an aggregate time of 12:34:06, or 45 seconds ahead of Goh,

PAGUNSAN EYES REPEAT J

UVIC PAGUNSAN heads to Marapara brimming with confidence coming off a runaway triumph in Murcia, but the hometown hero isn’t banking on that momentum alone and vowed to dish out his very best when the ICTSI Negros Occidental Classic is fired off on Wednesday at the Negros Occidental Golf and Country Club (NOGCC) in Bacolod. Not only is he eyeing a second straight championship in his return to the Philippine Golf Tour this season but also seeking to keep the crown he won via sudden death over Jobim Carlos last year. “I always give my 100 percent in all my tournaments,” Pagunsan said after thumping a stellar field to rule the ICTSI Bacolod Golf Challenge in nearby

Binitin over the weekend, stalking a slew of leaders in the first two days before wresting control with a third round 63 then coasted to a seven-stroke romp over Rufino Bayron with a 64. That should make the smooth-swinging shotmaker, on a break from the Japan Professional Golfers’ Association Tour where he is based, the heavy favorite in the 105-player field chasing for top honors in the P3-million event serving as the third of the four-stage Visayan swing of the circuit put up by ICTSI. But expect the rest to put the pressure on him early in a bid fuel their respective title drives and take whatever momentum and confidence

Pagunsan has gained from last week’s triumph. But one thing that could go against the rest of the bidders is that Pagunsan will be playing on a course so familiar and so dear to him, the NOGCC, otherwise known as Marapara, being the venue where he nurtured his game and where he won the national amateur title in 2006. Still, Bayron along with Richard Sinfuego, Ira Alido, Tony Lascuña, Jhonnel Ababa, Michael Bibat, Jerson Balasabas, Jay Bayron, Reymon Jaraula, Keanu Jahns, James Ryan Lam, Mhark Fernando and Clyde Mondilla are going all out to stop Pagunsan in the 72-hole championship organized by Pilipinas Golf Tournaments Inc.

Looking at the Filoil quarterfinals RICK OLIVARES | bleachersbrew@gmail.com

BLEACHERS’ BREW IT is win or go home time in the Filoil Flying V Preseason Cup. After almost two months of competition, we are down to the last eight teams. Let’s take a look at the matchups for the Monday, June 17 games.

Adamson vs San Sebastian (10 a.m.)

ADAMSON has the advantage because they have a deeper bench and Lenda Douanga, a rim protector. They have the talent and the depth to go deep. Their bigs—Lenda Douanga, Simon Camacho and Christian Bernardo are playing well. Jerrick Ahanmisi and Jerom Lastimosa form a lethal backcourt combo. Off the bench they have capable support in Joem Sabandal, Aaron Fermin and AP Manlapaz. Vince Magbuhos has confidence problems. If he overcomes that, he will be a force. But that is because the rookies have

taken away some of those minutes. That the rookies are playing is good for the coming UAAP season. With the Golden Stags missing Allyn Bulanadi, they have fewer options on offense and defense. The Stags’ RK Ilagan has been checked in the last two games and when he isn’t producing, San Sebastian doesn’t have much. JM Calma is more of a complimentary player. Alvin Capobres, back after a lengthy injury, is probably the only other player capable of creating for himself (with Bulanadi out) or for others. Kenneth Villapando can and will be the heir to Bulanadi as the do-it-all player so he will help. Michael Are’s game has gone south after a good previous season. Alex Desoyo needs more minutes and consistency. But where San Sebastian is vulnerable is at the center position. I feel bad for Jessie Sumoda. I think the coaches should really work on his skills. If Baste wants to go deep in the Filoil

who was stuck at second with 12:34:51 in this five-stage race sponsored by Air21, Cargohaus, NMM, Ufreight, SPL and marked by the full cooperation of the PNP, AFP and Disaster Risk Reduction Management Office. And Meijers is expected to employ the same plan in today’s 176-km Stage 4 that will start and end in Legazpi City but will pass Sorsogon towns The foreign bidders will also be pressing their bids early, particularly Spain’s Marcos Pastor, who is out to make up for his final round fold up in Murcia where he co-led in the middle rounds but succumbed to pressure playing alongside Pagunsan and Bayron and ended up sixth with a 71. Dutch Guido van der Valk, who stunned the elite field by posting a wire-to-wire triumph in Club Filipino de Cebu Invitational two weeks ago, is also tipped to contend again together with Aussie Fidel Concepcion, who made quite an impression by stringing four under par cards to finish solo fifth last week. Meanwhile, a select cast of pros along with guests and officials of the event’s chief backers, including ICTSI, Custom Clubmakers, Meralco, Champion, Summit Mineral Water, K&G Golf Apparel, BDO, Sharp, KZG, PLDT and MY Shokai Technology Inc., test the hazard-laden, tree-lined layout in tomorrow’s traditional pro-am.

tourney and the upcoming NCAA, they will need Sumoda to contribute. Advancing to the next round: Adamson

Lyceum vs CEU (12 noon)

IF Jayson David continues to play the way he did in the last two games—playing the role of CJ Perez in the last two seasons for the Pirates—on both ends of the court; add JC and JV Marcelino and Mike Nzeusseu in the slot, they will be tough to beat. The way David and the Double Trouble brothers play together is a sight to behold. Kangkarot basketball. Pests on defense and pedal to the metal hoops. If they need to play steady, half-court hoops, Raymar Caduyac, Niño Ibañez, Jeff Santos and Jerwin Guinto can beat you. This team has fully embraced the system of Topex Robinson. LPU is a veteran, talent-laden and deep team. What will make them win in the Filoil tourney and the NCAA is if they can be more efficient on offense and lessen their turnovers. The Centro Escolar University Scorpions are in because UP vacated their slot. This is good experience for this team that is also battling it out in the D-League Finals versus Ateneo. As good as center Maoudo Diouf is, he cannot do it alone. He will need point guard Franz Diaz to be steady and knocking down those outside shots. Jerome Santos and Rich Guinitaran need to contribute not only on offense but also defense.

like the Casiguran and Gubat. Aussie Angus Lyons of Oliver’s Real Food Racing of Australia ended up at fourth in the stage in 4:35:01 and stayed at No. 3 overall in 12:35:44. Marcelo Felipe of 7-Eleven reclaimed his spot at No. 10 from No. 11 after Stage 2 with a total time of 12:36:42, a few rungs ahead of Galedo,

who was at No. 14 in 12:39:16. 7-Eleven’s Daniel Habtemichael (12:36:19), PGN Road Cycling Team’s Sandy Nur Hasan (12:36:31) and Aiman Cahyadi (12:36:38), Team Ukyo’s Kohei Yokotsuka (12:36:38) and Naoya Yoshioka (12:36:40) and Team Sapura Cycling’s Muhsin Al Redha Misbah (12:36:41) rounded up the top 10.

JUVIC PAGUNSAN (center) holds his trophy as he poses with Bacolod Golf Club General Manager Gerald Gomez (left) and Philippine Golf Tour Executive Director Narlene Soriano after dominating the ICTSI Bacolod Golf Classic in Murcia, Negros Occidental, over the weekend.

With a short rotation, they need to stay out of foul trouble. Advancing to the next round: The Pirates who will look overwhelm CEU with their pace.

San Beda vs FEU (2 p.m.)

A VETERAN team that knows what to do against a rebuilding team filled with youth. The Red Lions aren’t as deep as they have been in years, but the strength of this team is they all know their roles. They have their gunners and their role players. But their success if predicated on Even Nelle, James Kwekuteye/Clint Doliguez, Donald Tankoua producing. San Beda can get by one either Kwekuteye or Doliguez in the midst of a slump. But if Nelle and Tankoua pitch in, watch out because they are putting the hurt from all sides of the court. Plus, I like the selfless contributions of Calvin Oftana, Ralph Penuela and Arnaud Noah. FEU has talent, and they are one of the three hottest teams heading into the quarterfinals (along with San Beda and Lyceum). They have gotten better as the tourney went on with some players returning from injury (such as Hubert Cani). FEU was badly beaten by San Beda in the D-League. If they want to reverse the tables, they need to win the battle of the boards with Cameroonian Patrick Tchuente protecting that rim while veterans Wendell Comboy, Rey Bienes, Cani,

Alec Stockton, Joe Nunag, and Ken Tuffin contributing. You cannot leave the fate of this team to young guns Xyrus Torres, Royce Alforque and Kenji Roman. I think this game will be a lot closer than people think. Advancing to the next round: San Beda by a close one.

La Salle vs Letran (4 p.m.)

JUST when people write them off, they come back with a good team. They always have had talent. They have savvy vets in Justine Baltazar, Aljun Melecio, and Andrei Caracut and solid players like Jordan Bartlett and Kurt Lojera plus young talent in Ralph Cu, Joaqui Manuel and Encho Serrano. If Brandon Bates can become more active they will have more frontcourt depth. Confidence has never been a problem for this team. Letran on the other hand has depth and talent. I love how this team is built. They have played well even without Jerrick Balanza and Bonbon Battiler. They have a solid frontline in Larry Muyang, Jeo Ambohot and Christian Balagasay. They have athletes and two-way players like Renato Ular, Jap Pambid, King Caralipio and Louie Sangalang. They have a tough point guard corps in Kurt Reyson, Tommy Olivario, and Fran Yu, and a terrific shooter in Allen Mina. I’d say that Letran has the frontcourt edge. Advancing: If Letran’s back court can match La Salle’s they will advance. If they cannot stop Baltazar, Caracut and Melecio, look for the Green Archers to march on.

BRAZIL players celebrate beating 3-0 Bolivia in the opening match of the Copa America at the Morumbi stadium in São Paulo, Brazil, on Saturday. AP

Sports BusinessMirror

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| Monday, June 17, 2019 mirror_sports@yahoo.com.ph Editor: Jun Lomibao

‘LACK OF SUPPORT’

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By Mauricio Savarese The Associated Press

ÃO PAULO—The Copa America opener on Friday yielded a box-office record for Brazil with gate receipts of more than $5.7 million. It was the atmosphere in the stands, though, that captured most attention, with some players complaining about a lack of support from the crowd in the home team’s 3-0 win over Bolivia. More than 46,000 fans paid an average of $125 per ticket, but at least 22,000 seats were empty at the Morumbi Stadium for a match that organizers initially said was a sellout. The volume only went up in the stands when there was jeering after Brazil’s lackluster first half, during homophobic chants when the Bolivian keeper took goal kicks, and after the three second-half goals. “It’s normal to be like that in São Paulo, many fans are more concerned about their clubs, so it is always tough for Brazil to play here,” veteran right back Dani Alves said. For Brazilian league matches, ticket prices for the most popular seats cost as little as $15. The country, enduring an economic crisis since 2015, has established its minimum wage at $256 for this year. The mix of high prices, empty seats and lack of noise

surprised some players, who said they could easily hear instructions from their coaches during the match. Winger David Neres said the atmosphere was “a bit different.” “We are usually very focused, we don’t hear much anyway. But it was a little quiet tonight,” he said. “Except for the break, when they booed us. I still don’t understand why that happened.” Defender Thiago Silva said the jeers were understandable after a goalless first half. He also linked the behavior of the fans to the high ticket prices. “It took us a while to open the score, the ticket prices were expensive, so it is normal that they boo,” Silva said. “But we were not that bad in the first half.” Alves said there would be a different atmosphere when Brazil plays Venezuela on Tuesday in Salvador, in the warm northeast state of Bahia. “In Bahia the ‘axe’ is different,” he said, using an AfricanBrazilian word that means energy. “People miss the national team there, they miss this energy that we take where we go. I am sure it will be more cheerful than here.” Historically, Brazil’s impoverished northeast is more supportive of the team. After playing Venezuela, Brazil ends its group stage campaign against Peru, again in São Paulo, but at the Arena

Canada advances to KO round G RENOBLE, France—Jessie Fleming and Nichelle Prince each had second-half goals and Canada advanced to the knockout round at the Women’s World Cup with a 2-0 victory over New Zealand on Saturday night. Fleming took a well-placed pass from Prince and scored in the 48th minute to break up a scoreless match. The Netherlands also made it through to the round of 16 with a 3-1 victory over Cameroon in the other Group E match earlier in the day. Fleming, who made her debut with the senior

national team at 15, currently plays for University of California, Los Angeles. Prince got her goal in the 79th minute, a rebound of Christine Sinclair’s header that hit the post. Led by Tom Sermanni, former coach of Sweden and the United States, New Zealand was hurt in the first half when defender CJ Bott was injured and had to be subbed out. Canada will face the Netherlands in the team’s final group match on Thursday in Reims. Cameroon and New Zealand will meet the same day in Montpellier.

UNITED STATES players (from left) Alex Morgan, Rose Lavelle and Kelley O’Hara warm up during a training session at the Terrain d’Honneur Lucien Choine stadium a day before the Group F soccer match between United States and Chile. AP

Corinthians instead of the Morumbi. Meanwhile, for 2022 World Cup host Qatar, every Copa America match will be like a final. Sunday’s clash against Paraguay at the historic Maracana stadium is especially so because it is probably the team’s best chance to pick up points in the tournament. Qatar’s

Spanish Coach Felix Sanchez told journalists on Saturday that his team will try to compete at a high level in all three group stage matches against Argentina, Colombia and Paraguay. He believes the first two are candidates to win the title, meaning the game against the Paraguayans represents the best chance for Asian Cup holder Qatar to register a victory. “It will be like a final,” Sanchez said. “But it will be the same against Argentina and Colombia. These are all great footballing nations.” Qatar, which is making its Copa America debut, lost a friendly against hosts Brazil 2-0 earlier this month. Brazil Coach Tite said he was impressed with Qatar’s defense, although the team’s ball possession was not as good as it was in the

The Canadians had never advanced from the group stage playing outside of North America. The US gets back on the field at the Women’s World Cup on Sunday, just as the uproar following its opening 13-0 win is quieting down. Criticized for both running up the score against Thailand and celebrating each of its record-breaking 13 goals, the Americans have dismissed the scrutiny and focused only on their bid to win a fourth World Cup title. The next challenge is against Chile in a Group F match at Parc des Princes.

A win for the US would move the squad into the round of 16, and Chile understands the challenge it is facing against the top team in the world. “We don’t go on to the pitch thinking of losing by a small margin,” Chile forward Yanara Aedo said. “We go out to get something, at least a point. It’s not a victory to lose by a small margin against the USA. A victory for us is to play well, to the best of our capabilities, and playing the way we know to play.”

Asian Cup. Paraguay is trying to rebuild under Coach Eduardo Berizzo after failing to qualify for the last two World Cups. “It is a team that counters very well, that can adapt to different tactics. They have a great offense,” Berizzo said of Qatar. Paraguay’s coach, however, thinks his team is the favorite to win in Rio de Janeiro. “We need to reaffirm our identity,” he said. Sanchez, who took over in July 2017 and had his contract extended to 2022 just before the Copa America, said matches like these will help the team reach a higher level before the World Cup. “We have to forget what happened in the UAE [United Arab Emirates] and focus here,” the Spanish coach said, in a reference to the venue for his team’s Asian Cup triumph. “For us to get there [2022] in good conditions, we have to play tournaments like this.” Qatar captain Hassan Al-Haydos, who was taking selfies on the Maracana pitch before the press conference, agreed. “We are here to develop, to adapt and to grow,” the striker said. “It is an honor to be in this tournament and to be in Brazil with so many other great teams.” Next year Qatar will return for another Copa America in Argentina and Colombia. In 2021, the tiny nation will stage the Confederations Cup. Chile lost to Sweden 2-0 in its opener and Coach Jose Letelier is not looking back at that match, or the US’s game against Thailand. “Even if the results had gone another way, we’re not going to compare any other way. We’re not going to be focusing on a match that’s gone by, someone else’s match. We’re going to focus on our own match,” he said. “I think for our national team, it’s an experience in itself even to play at this elite level. “We’re very clear what we’re up against, and we’re going to take all the necessary precautions, and we’re just going to basically try to show what we can do on the pitch.” The US is on cruise control and Coach Jill Ellis has the ability to make tweaks to her lineup if she wants to rest some of her players. There are only three days of rest between matches for the rest of the tournament, and the Americans have a deep and talented bench of some of the best players in the world.

Sweden-Thailand

CANADA’S Kadeisha Buchanan competes for the ball with New Zealand’s Betsy Hassett during the Women’s World Cup Group E soccer match on Sunday. AP

THE World Cup opener could not have gone worse for Thailand, which was humiliated 13-0 by the United States in the game that has received the most attention so far in this tournament. Next up for Thailand is a Group F match against Sweden at Stade de Nice, and the Swedes can advance into last 16 with a win. But the Scandinavians may also try to run up the score in an attempt to level the goal differential with the Americans. If Sweden and the United States both finish with the same amount of points in the group, the team with the better goal difference would finish first. “We don’t know how important it will be to score a lot of goals, and you can’t go out to a match and decide to score a lot of goals,” Sweden Coach Peter Gerhardsson said. “We have to focus on our performance and how we want the match to go. We have a plan for this match. We are going to do everything in our power to win this game, and what the result is? That remains to be seen afterwards.” AP

Reedeming God

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EAR God, You keep us always in Your care and attention. In faith we pray: Send us Your Spirit, oh God. Shatter our idols and disbelief and fix our hearts to the Pearl of the Great Price. Strengthen those who are in treatment for addiction and let them know lasting support. Help us to overcome the power of fear, racism and greed that afflicts humankind. May God bless us with peace and lead us to share in the joy of everlasting life, through Jesus our Savior. Amen. GIVE US THIS DAY SHARED BY LUISA LACSON, HFL Word&Life Publications • teacherlouie1965@yahoo.com

Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com

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ALL ACCESS: WOULD YOU LIKE TO PLAY WITH MIKE LIWAG AND ROSS PESIGAN OF ‘LARO’? D3

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Monday, June 17, 2019

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THE Binibining Pilipinas 2019 Queens: First Runner-Up Binibining Pasig Maria Andrea Abesamis (in Renee Salud); Binibining Laguna Leren Mae Bautista (in Chico Estiva), Binibining Pilipinas Globe; Binibining Cebu City Samantha Ashley Lo (in Rau Uson-Ablaza), Binibining Pilipinas Grand International; Binibining Bataan Bea Patricia Magtanong (in Pablo Mendez III), Binibining Pilipinas International; Binibining Talisay, Cebu Gazini Christiana Ganados (in Cary Santiago), Miss Universe Philippines; Binibining Maguindanao Resham Ramirez Saeed (in Jearson Demavivas), Binibining Pilipinas Supranational; Binibining Pampanga Emma Mary Tiglao (in Ray Bien Maglonzo), Binibining Pilipinas Intercontinental; and Binibining Palawan Samantha Mae Bernardo (in Paolo Blanco), second runner-up.

Binibining Pilipinas 2019: The beautiful �lag-bearers who also lost her bearings but won as Binibining Pilipinas Universe in 1993. Vickie, alas, wasn’t as victorious this time. But she will be victorious when she pursues a showbiz career. Her beautiful face is made for the screen big and small. This woman will be all right.

T’S a truth only known in the Philippines that we demand more from our beauty queens than we do from our politicians. The Binibinis must be perfect in all aspects, and any perceived flaw means that they’re not worthy of a crown. On finals night of the Binibining Pilipinas 2019 pageant, fans ferociously cheered for the women in the swimsuit round as they flaunted their toned physiques, and clapped furiously as they showcased the finest haute couture by Filipino designers during the evening-gown competition. But then came the question-and-answer round. It was, the snotty ones deemed from their ivory towers, a bloodbath. It was the make-or-break moment, as this batch had several beautiful, accomplished candidates, and intelligence was the only measurable way to separate the winners from the wannabes. And yet, most of the front-runners gave lackluster replies.

QUEENS EVERYWHERE LEREN MAE BAUTISTA, Binibining Laguna and newly minted Binibining Pilipinas Globe, has already represented the Philippines at Miss Tourism Queen of the Year International, where she won in 2015, the same year that Ann Lorraine Colis became our first Miss Globe. Emma Mary Tiglao, the statuesque Capampangan, is a beauty-contest veteran. She has run the gamut— Mutya, Miss World Philippines, minor tilts—that she has paid her pageant dues and was overdue for a crown. Our Karen Gallman is the reigning queen. A back-to-back only happened once, in 1992 (Susanne Petry) and 1993 (Verona Feldbusch), by Germany. The mighty Emma might just pull a win for the Philippines again. Samantha Ashley Lo, Binibining Cebu City, gave an astonishing performance that she grabbed the Binibining Pilipinas Grand International title. It remains the only global crown we have yet to win and the Cebuana beauty is up to the challenge. At the prepageant “Free Speak” and on the finals night’s Q&A, she exuded that “authenticity” that reigning Miss Universe Catriona Gray was looking for.

VICKIE/VICTORIOUS BINIBINING Negros Occidental Vickie Marie Rushton, after snaring the lion’s share of sponsors’ awards, was the surest bet to clinch a title. When asked by actor Daniel Padilla, “Why is mental health as important as physical health,” she fumbled. Yet fans held out hope that she might pull a Dindi Gallardo,

ARABIAN NIGHTS WHEN MJ Lastimosa sauntered onstage to give out a special award, the audience gasped. The Miss Universe 2014 Top 10 wore a Gucci/Riyo Mori-inspired red and purple suit sans blouse. The daring ensemble by Jaz Cerezo stood out amid a gazillion gowns and set off the half-Arab bombshell’s sensuousness.

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Another winning Binibini with Arabian blood is Resham Ramirez Saeed, who demolished every prediction and every forecast when she emerged as Binibining Pilipinas Supranational. The Canadaraised, half-Pakistani from Maguindanao is charming, articulate and engaging. She’s the second Muslim woman to win a major title, after Binibining Pilipinas World 1995 Reham Snow Tago. Miss Universe Philippines 2019 Gazini Christiana Ganados—Binibining Talisay, Cebu—has a Palestinian for a father, just like supermodels Gigi and Bella Hadid. I think Gazini is the first woman of Palestinian descent to compete for the Miss Universe title. She has never met her father, though, having been raised by her mother and her maternal grandparents, so she’s not steeped in his culture. Palestine and Israel being in constant conflict, I hope it wouldn’t be an issue come competition time with Miss Israel Sella Sharlin. BEA PATRICIA/ANGELINA/AMAL ON paper, Binibining Bataan Bea Patricia Magtanong is the most sensible choice to send to the Miss Universe competition. She’s the first lawyer to ever compete, and she could have gone toe-to-toe with Miss USA, another attorney. Patch is the complete package—slender, brilliant, determined. But so were fellow UP grads Elizabeth de Padua (1976), Zorayda Ruth Andam (2001), Lia Andrea Ramos (2006) and Anna Theresa Licaros (2007), who all came home crown-less. For her final question, Patch was asked which global influential she would like to meet, and she cited Oscar winner and UN ambassador Angelina Jolie. I would have been ecstatic had Patch chosen instead Amal Alamuddin Clooney, the Lebanese-British barrister who has worked at the International Court of Justice in The Hague, and has represented some high-profile clients. Her husband is the Oscar-winner

George. But I’m just nitpicking. Patch is on track to win our seventh Miss International title. FROM PILAR PILAPIL TO GAZINI GANADOS THE Queen City of the South has produced her fair share of beauty queens. But the surprise realization is that Cebu, the province, has only produced Pilar Pilapil, Binibining Pilipinas Universe 1967, before Gazini Ganados won the same title. Though the Caucasian mestizas fell by the wayside during the finals, Gazini, a half-Palestinian, is still being pestered if she’s Filipina enough. It’s ridiculous to demand that a “pure Filipina” represent the Philippines because there is no such creature. Consider these women who will compete with Gazini for Catriona Gray’s crown: Miss France Vaimalama Chaves, a French Polynesian from Tahiti with Wallisian, Portuguese and Irish ancestry; half-British Puteri Indonesia Frederika Alexis Cull; half-American Miss Puerto Rico Madison Anderson; Spanish-descended Miss Belgium Elena Castro Suarez, who succeeded Filipino-Belgian Angeline Flor Pua; and Polish-African American Miss USA Cheslie Kryst. I knew that Gazini would be unstoppable when, at the start of the long gown portion when all candidates paraded onstage, she emerged in a fuchsia sculptural confection by Cary Santiago. She practically smoldered. And she gave a satisfactory answer in the Q&A, though her communication skills leave room for vast improvement. What excites pageant watchers and fashion insiders alike, however, is the upcoming debut of Santiago on the Miss Universe stage as he is assumed to be Gazini’s gown designer. His best friends Albert Andrada, Michael Cinco and Val Taguba have already done it and Santiago is ready to do so. But, unassuming that he is, he will also heed his wish for Gazini: “Just enjoy the moment, win or lose.” n

Woven wonders FROM oversized beach totes to small woven baskets, handbag designers everywhere have adopted straw, wicker, rattan and even bamboo in their collections. On the catwalk, Loewe, Tory Burch, Ulla Johnson and Michael Kors all made the case for woven totes in all sizes and colors. Off the catwalk, the street style set (Jeanne Damas, Alexa Chung) was all over the Jane Birkin-inspired basket seen in high street brands. It’s time to get on board with the trend by way of Parisian Bags. A woven bag in all its carefree artisanal glory is, after all, the sort of accessory that can transform an outfit. And the woven bag trend is a game changer at Parisian with its collection of basket bags, round basket bags, woven crossbody bags, straw bucket bags and chic backpacks for the woman on-the-go. These go best with cut-off jeans, a short linen suit or a floaty floral dress; and with cooler weather ahead, sweaters and cardigans. The Parisian Bags Collection is available at all The SM Store branches nationwide.

THE versatile straw bag is as wearable in city streets as it is on the beach.

THE Margaux basket bag

PRETTY basket bags

STRAW crossbody bag

WOVEN bags in all their artisanal glory

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Today’s Horoscope

MODELS showcase the Ermenegildo Zegna men’s Spring-Summer 2020 collection, unveiled during Milan Fashion Week in Milan, Italy, on June 14. AP

By Eugenia Last

CELEBRITIES BORN ON THIS DAY: Venus Williams, 39; Will Forte, 49; Greg Kinnear, 56; Barry Manilow, 76. HAPPY BIRTHDAY: You’ll have opportunities galore, but not all will be worthy of you and your skills or lead you down the right path. Take your time and consider what it is you want to accomplish. Finding your niche, the ideal path or the people who bring out the best in you should be your ultimate goal. Your lucky numbers are 5, 18, 22, 26, 32, 38, 41.

ARIES (March 21-April 19): If you are looking for adventure, you won’t have to look too far. Stay focused on what you are doing, and be aware of how others feel. Listening to good advice is in your best interest. Knowledge is power. ★★★★★

TAURUS (April 20-May 20): Size up a situation you face, and make a move. Trust in your ability to make things happen. Be blunt about what you can do and what you have to offer. Back away from anyone who is inconsistent or who exaggerates. ★★★

Zegna, Stella McCartney tout transition in Milan BY COLLEEN BAR�Y The Associated Press

M

ILAN—The opening shows of Milan Fashion Week on Friday evening underscored a world in transition. Ermenegildo Zegna invited guests to an abandoned and gutted former steelworks on the outskirts of Milan that symbolizes both the region’s deindustrialization but also offers the prospects for rebirth as the site of a major redevelopment plan. In a green oasis in the heart of the city, Stella McCartney offered a literary and activist view on fashion, and the world, as she touted her message of sustainability. ZEGNA REUSING THE PAST ALESSANDRO SANTORI bookended the collection for Ermenegildo Zegna XXX with two suits that encapsulated its disciplined yet otherworldly spirit: The opening single-button light suit had fading block print, the color of a light cappuccino stain, while its closing purple twin had a sheen that seemed to capture a rainbow. Models walked down a dark gravel runway under

celebrated the Beatles, it celebrated literature through a collaboration with Jonathan Safran Foer, and as all her collections, it celebrated sustainability. “It’s 60 percent sustainable, the collection, which is really hard to achieve,� the designer said. That includes organic cotton, sustainable viscose, a regenerated nylon called Econyl and recycled polyester. For men, she had t-shirts inspired by “Yellow Submarine� and another poking fun at herself: “Eco Weirdo.� The women swear looks celebrate spring with ruffle and floral dresses. And the Safron Foer collaboration yielded inscriptions on garments, such as, “Be leaving, believing, be living,� and “We are entirely free to live differently,� inspired by his book We are the Weather, a call to action on climate change. The rest of the luxury fashion world has been scrambling to catch up with McCartney, whose label was founded with sustainability as a core belief, stemming from her childhood growing up a vegetarian on an organic farm and what she called “her animal awareness, and not wanting to kill animals.� “That’s really the next conversation, and it’s a harder conversation to have,� McCartney said. n

the metal roof of the disused steel plant in sturdy boots. But there was nothing workmanlike about the looks, which were calculated casual. Ties hung untied inside tailored suits, suede blousons were worn with elegant striped trouser and short-sleeve leather jackets featured architectural pockets. Textiles, some created from fabric cuttings or developed from recycled plastics, were reworked for a wrinkle effect on tailored trousers and suits, while prints had a hazy, shadowy effect, like looking through a rain-battered window or at an enlarged negative. Flat caps were worn jauntily backward, and eyewear offered colorful contrasts. Bags included cross-body sunglass cases and leather-bound journals for the traveler, and more substantial satchels. The colors—basic cream, gray and lavender with offsets of icy green and peacock blue—played gorgeously against the stormy sky. STELLA MCCARTNEY’S ACTIVISM A BAND marched into Stella McCartney’s garden party playing joyfully, and McCartney paused in conversation, observing with delight: “We’re listening to ‘Ob-La-Di, Ob-La-Da’, which my Dad wrote.� McCartney’s men’s and women’s collection

Finding your inner Zen CORALIE CHARRIOL-PAUL, the creative director of global fashion brand Charriol, was deeply impacted by meditation and looking inward to find center, balance and an inner peace. This sense of well-being inspired the designs for the recently refreshed Zen Harmony collection. The symmetry and flow of these pieces bring a sense of calm and balance to the mind through delicate juxtaposition of shapes and textures. Exclusively distributed in the country by Stores Specialists Inc., the brand’s collection has been refreshed with a stunning new selection of necklaces, earrings, rings and bangles. These sublime creations make use of a rich variety

GEMINI (May 21-June 20): Consider what others want. Partnerships will not be as they appear. Question motives, and decide what and who is worth your time and effort. Walk away from situations that make you feel as if you are being taken for granted. ★★★

CANCER (June 21-July 22): Make sure you understand what’s being asked of you before you agree to participate. Partnerships can be remarkable as long as communication is open and everyone does his or her part. Opportunities are within reach, and gains can be made. ★★★

LEO (July 23-Aug. 22): Explore what life has to offer. Engage in activities that make you question what you are doing and help you determine what you want to do next. Personal improvement, sourcing new possibilities and starting something new are recommended. ★★★★★

VIRGO (Aug. 23-Sept. 22): Participate if it will give you a broader view of the way others live and what they do. Having a reference point will help you make better decisions when faced with emotional situations that can affect your performance. ★★

LIBRA (Sept. 23-Oct. 22): It’s lovely to have dreams and to set goals, but before you start trying to make a go of something you’ve never tried, listen to those with more experience. There is a difference between meddling and protecting. ★★

SCORPIO (Oct. 23-Nov. 21): Don’t secondguess what you are capable of doing. Once you get started, the universe will open, and as long as you maintain a positive attitude and a handson approach, you will reach your destination. Trust your instincts, and protect your assets. ★★★★

SAGITTARIUS (Nov. 22-Dec. 21): A partnership may be deceiving. There are no stupid questions. When in doubt, ask, and if you aren’t sufficiently satisfied with what you hear, bow out. An agreement or contract will require an adjustment to protect your interests. ★★★

CAPRICORN (Dec. 22-Jan. 19): Let your emotions motivate you to bring about positive changes at home, as well as to important relationships. Striving for a better environment to work or play in will make a difference in the way you perform. ★★★

AQUARIUS (Jan. 20-Feb. 18): A dream will become a reality if you are persistent regarding your pursuit. Plan your actions, and don’t rely on others to take care of what you want to achieve. Change requires strategic planning and consistency. ★★★

of materials, resulting in a harmonious mix of colors and textures. With mesmerizing precision, the necklace and earrings present carefully constructed combinations of steel, rose gold, precious topaz stones and steel or colored cables. The bangles and rings show a smoothly crafted circle of white or black mother of pearl, adding a graceful shimmer and tactile, pebble-like feature to these beautifully balanced designs. As deceptively simple as an exquisite Japanese garden, the Zen Harmony collection is ideal for those who delight in simple pleasures and value quiet fulfillment and peace.

PISCES (Feb. 19-March 20): The best way to control the outcome is to participate. Change begins within and works its way into every facet of your life if you are consistent and persistent. Leave nothing to chance or to someone else’s discretion. ★★ BIRTHDAY BABY: You are appealing, intelligent and outgoing. You are unique and helpful.

‘switchbacks’ BY EVAN KALISH The Universal Crossword/Edited by David Steinberg

ACROSS 1 Tomato type 5 “Believe� singer 9 Mysterious glow 13 Something fake 14 ___ planets (Jupiter, Saturn, etc.) 16 Group of Marvel mutants 17 Revolting 18 Vapid 19 Music player since 2001 20 Messy places to vote? 23 Geico’s business: Abbr. 24 CNN commentator Navarro 25 Resort with towels 28 Whether or not the country is at war? 32 Prior to year zero, briefly 34 Former Chief Justice Warren 35 Puts into piles, say 36 Soothing cream 38 The Evil Dead director Sam 41 Sci-fi princess 42 Wedding cake figure, often 44 Pro ___ (for free) 46 At least one 47 Realm where everyone’s shoelaces

are loose? Monarch catcher Scot’s “not� Hold up Start performing much better, and a hint to this puzzle’s theme 60 Cup o’ joe 63 Long-stemmed mushroom 64 “Understood� 65 VP, e.g. 66 Attach, as a patch 67 Lowly Middle Ages figure 68 Message such as “LOL� 69 Lad’s counterpart 70 Helen of ___ DOWN 1 Invitation letters 2 Browns’ and Bengals’ state 3 Minnesota’s ___ of America 4 Earhart who disappeared 5 Change-cashing machine brand 6 Installed, as curtains 7 Pilots’ figs. 8 Hertz offering 9 The world revolves around it 51 52 53 54

10 11 12 15 21 22 25 26 27 28 29 30 31 32 33 37 39 40 43 45 48 49 50 54 55

Official on a diamond ___ Speedwagon “Your point being?� Rider’s handful Concerning, on a memo Consumes Live broadcast Add Test the purity of Giants (and crossword) legend Roth investment “It wasn’t me!� support Dial-up pioneer Toy that shoots pellets ___ asada “Who, me?� Memorial Day’s day: Abbr. Entrenches Restaurant handout Foul smell Eggs on, in a way Temporary home for Fido Certain woodwind player Diplomatic quality State bordered by the Mississippi

56 57 58 59 60 61 62

and Missouri Ring ref’s rulings Developer’s counterpart Hated Roman emperor Go against the wishes of 747 or 757 Fire (var.) Annoy

Solution to Friday’s puzzle:

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Monday, June 17, 2019

Would you like to play with Mike Liwag and Ross Pesigan of ‘Laro’? W

E caught what was supposed to be the last weekend run of Laro, the much-talked about gay-themed play of the esteemed Floy Quintos at the Arts Above venue of the Artist Playground theater company. Laro is a local adaptation of Arthur Schnitzler’s La Ronde, which is made up of 10 interlocking, sexually charged tales of men and their impassioned, amorous internal desires. The play progresses like a domino—two actors breathe life to characters at a time in a round-robin setup, then another actor comes in and a new, ardent narrative about two people begins. These characters tell short, interesting stories about sexual desires and momentary liaisons, scheming givers and willing takers, personal conflicts and impersonal resolutions and shallow satisfactions and deep consummations. We were happy to see two of our more promising independent movie actors play engrossing subjects in Laro, engaging the audience who were seated so close to the stage with their compelling performances. This might be the breakthrough year for Mike Liwag, who played both the user-friendly boy toy of a generous transexual and the aggressive guy in a casual sex meet up with a pent-up, indecisive, complicated partner. “I am very privileged to have been part of this ensemble cast of actors for Laro. Every rehearsal and every performance is filled with new learnings, and I have become enriched by the experience as a young actor,” he shared, adding, “I know I will bring these learnings to use in my future projects, be these in the movies or onstage.” Liwag has appeared in a slew of independent movies as a support actor. These films include Ralston Jover’s Hamog and Hiblang Abo, David Corpuz’s Kusina, Kip Oebanda’s Bar Boys, James Mayo’s Apple of My Eye, Joseph Laban’s Nuwebe and Joseph Nuesa’s Ang Araw sa Likod Mo. He happily told us that he has been cast in a new film project that is set to be shot in a former lepers colony in Palawan. “I have just been told that I’m playing one of the important roles in the movie Culion, from a script of the iconic Ricky Lee that

HBO FILMS’ ‘SHARE’ DEBUTS JULY 28 EXCLUSIVELY ON HBO GO, HBO

MIKE LIWAG (left) and Ross Pesigan

will also star Joem Bascon, Iza Calzado and Meryll Soriano, among others.” Another actor on the rise that we caught in Laro is Ross Pesigan, who played the naive young student who enticed his classmates to give in to the carnal desires of his fatherly benefactor. Pesigan’s second role had him confessing to a relative-writer about an incident which his innocent mind thought was abhorrent. Pesigan is the same controversial young actor who brought a case against a veteran filmmaker (who has since passed on) after he was apparently strangled by the director in a historical-themed movie project which flopped at the box office. Sadly, the case did not prosper. In real life, Pesigan is romantically linked to the esteemed actress Angeli Bayani, and he wishes to star in a film with both of them as lead actors. For the meantime, he just wants to work with

intelligent and pleasant directors who have no anger management issues. Pesigan has wrapped up work for the calm, collected and competent Loy Arcenas for the new film Mirador, from the material of actor-writer Raquel Villavicencio. The film is about a widow, played by the inimitable Cherie Gil, who returns to her estranged husband’s island estate and connects with the rumored son of her husband. Pesigan plays the lead male role of the illegitimate son in this movie that might catapult him to become a prized actor when the film takes the festival route. Laro, directed by John Mark Yap and produced by Artist Playground, will have an extended one-night-only performance on June 30. n

DOBOL B sa News TV anchors led by Mike Enriquez (second from right), along with (from left) Melo del Prado, Joel Reyes Zobel, Nathaniel “Mang Tani” Cruz, Connie Sison, Susan Enriquez, Arnold Clavio, Ali Sotto and Rowena Salvacion.

GMA News TV ushers in bigger, better ‘Dobol B’ NOW airing daily from 6 am to 12 noon on GMA News TV, Dobol B sa News TV is amped up with an exciting lineup of programs anchored by the country’s most trusted broadcasters. Jump-starting weekday mornings is veteran anchorman Melo del Prado with the freshest news of the day on Melo Del Prado sa Super Radyo DZBB at 6 am. GMA’s top news anchor Mike Enriquez and Joel Reyes Zobel deliver the biggest news stories and latest news updates on Super Balita sa Umaga Nationwide at 7 am. Mike later on provides the public with more information about the issues at hand through interviews with key personalities on Saksi sa Dobol B at 8 am while Joel returns at 9 to 9:30 am with Anong Say N’yo? At 9:30 am, fellow top GMA News anchor Arnold Clavio together with Ali Sotto tickle the audience through their juicy blind items in Sino?. Later at 10 am, the tandem further dissects the issues that made it to the news

that day on Dobol A Sa Dobol B. For the final slot at 11 am, Kay Susan Tayo! Sa Super Radyo DZBB, anchored by Susan Enriquez, returns to the small screen. On Saturdays, Melo del Prado hosts Super Radyo Nationwide at 6 am followed by Super Balita sa Umaga with Sam Nielsen and Rowena Salvacion at 7 am. In the next hour, Rowena also anchors Isyu Atbp. while I M Ready sa Dobol B, with GMA resident meteorologist Nathaniel “Mang Tani” Cruz, comes next at 9 am. Meanwhile, one of the newest additions to DZBB is the well-loved health program presented by Connie Sison, Pinoy M.D. sa Super Radyo DZBB, which airs at 10 am. It is followed by DZBB Super Serbisyo: Buhay, Trabaho at Negosyo at 11 am with Norilyn Temblor, Tootie and Lala Roque. On Sundays, Orly Trinidad opens the morning lineup with Buena Manong Balita at 6 am, followed by Super Balita sa Umaga,

with Sam Nielsen and Nimfa Ravelo, at 7 am. Nimfa also hosts Dobol B: Bantay Balita (Bantay sa Senado) at 8 am. More shows follow, hosted by other prominent broadcasters including Benjie Liwanag and Divine Reyes. “We are very happy with the feedback we are getting from our viewers as well. Two years ago, we started Dobol B sa News TV. Fast forward to 2019, and here we are, giving our viewers more programs, seven days a week. Tunay ngang tuloy-tuloy ang paghahatid namin ng ‘Serbisyong Totoo’ dahil araw-araw na ninyong mapapanood ang Dobol B sa News TV at sa mas pinahabang oras pa. This is all for our loyal viewers who made the success of Dobol B sa News TV possible,” says Mike Enriquez. GMA News TV is now also seen on free TV via Channel 27, while viewers abroad can also catch Dobol B Sa News TV on GMA News TV International.

THE HBO Films presentation Share, which screened in official selection at Cannes Film Festival this year, debuts same time as the US on July 28, 10 am, exclusively on HBO GO and HBO. The film encores the same day on HBO at 10 pm. Based on Pippa Bianco’s Cannes Film Festival award-winning short of the same name, this featurelength drama stars Rhianne Barreto as 16-year-old Mandy, who discovers a disturbing video from a night she doesn’t remember and must try to figure out what happened and how to navigate the escalating fallout. Share also stars Charlie Plummer, Poorna Jagannathan, JC MacKenzie, Nicholas Galitzine, Lovie Simone and Danny Mastrogiorgio. At the 2019 Sundance Film Festival, Pippa Bianco received the Waldo Salt Screenwriting Award and Rhianne Barreto won the Special Jury Award for Achievement in Acting, both in the US Dramatic Competition. The film was also featured this year as the closing-night screening of MoMA and Film Society of Lincoln Center’s New Directors/New Films Festival, and most recently screened in official selection at Cannes Film Festival. Share is an HBO Films presentation of an A24 and Loveless production, written and directed by Pippa Bianco and produced by Carly Hugo, Tyler Byrne and Matt Parker.

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@SUNNIESFACE ON INSTAGRAM

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Is Airblush worth the money?

S

UNNIES Face is perhaps the most talked about Filipino local beauty brand right now. With an Instagram feed that’s to die for, and packaging that is, I would dare say, one of the best in the market, Sunnies Face cannot fail. Its first products, the Fluffmate lipsticks, were so successful that people lined up outside the two Sunnies Face physical stores to buy them. There were nine shades: Nudist (warm almond nude), Milkshake (warm pink nude), Vacay (peachy papaya), Baked (terra-cotta peach), Girl Crush (terra-cotta rose), 143 (berry rose), Mood (taupe mauve), Hot Sauce (tomato red) and Major (cool red). The next product was Glowboss, a creamto-powder multipurpose shimmer stick in three shades. The third product launched by Sunnies Face was Lifebrow, a duo consisting of a retractable skinny pencil and a grooming gel in two shades—warm brown and ash brown. The newest Sunnies Face product is Airblush, a soft-focus sheer cheek tint with a silky matte finish. There are six buildable shades you can use on your cheeks, eyes, lips and nose. Airblush has been compared to 3CE Take A Layer Multipot, except that the latter supposedly lasts longer. I don’t own any of the 3CE Multipots so I can’t compare. There are six Airblush shades, all of which were sent to me by the brand. First of all, the colors and packaging are beautiful. There are six shades: Doll (carnation pink), Peached (fresh peach), Biscuit (warm nude), Moon (toasty rose),

Razz (vibrant berry) and Disco (poppy red). While I like the colors and packaging, I had problems with the longevity and cost. At P445 for 2.5g, the Airblush isn’t cheap or even reasonably priced at all. They also wouldn’t last longer than two hours on my face. I gave some away to my friends, who loved them so perhaps my face is just too oily to hold a cream blush. For blush, I’m not one for subtlety. I layer my blushes and want/expect them to last. Airblush is something that would work on those with beautiful skin. It’s also perfect for those who are just starting out with makeup and who are still scared to make mistakes. My favorite Airblush colors are Mood and Razz. I now use them as eye shadow and they last pretty well even without a primer. So now, let me segue to the topic of ethical consumerism. The owners of Sunnies Face have been called “Marcos apologists and deniers” and dissed for various other things. I don’t know them personally but it so happens that two of the ladies who do PR for them came from another makeup brand and they have very kindly included me in their mailing list. I have bought some of the products as gifts to friends and family members who live abroad because they really ask for it and make inquiries. I write about the products because I might not have millions of readers but those who do read are very proactive and ask me to review them. I am not saying that I am a journalist first before I am a human being because it is not true. But I am not a hypocrite. I have bought from brands owned by people who are anti-vaxxers, who test on animals, whose founders have been associated with Nazis and many others. I have done so mostly unknowingly and without much thinking. And it is in “without much thinking,” that I think I made a mistake. I should be a more mindful consumer instead of one who is scared to be out of the loop, buying from every launch and every new collection. I’m trying to get out of this FOMO mentality that’s making me want everything in sight. I only have one face, after all. n

Fun in the sun simplified FINALLY, Banana Boat simplifies “Fun in the Sun” with the new Banana Boat Simply Protect. Edgewell Personal Care, maker of global brand Banana Boat, expands its portfolio of sunscreens as it unveils its latest offering: Banana Boat Simply Protect. It’s a product that is formulated with 25 percent lesser ingredients. It is made with no added oils and fragrances making it lightweight and comfortable on skin. Distributed in the Philippines by Getz Healthcare, Banana Boat Simply Protect provides SPF50+ broad spectrum of UVA/UVB protection. It is uses natural ingredients that are safe and effective in filtering out the sun’s harmful rays but are environment-friendly, replacing oxybenzone and parabens—ingredients that are said to create cellular damage in coral reefs. Senior Brand Manager Maricel Quevedo said, “Banana Boat Simply Protect is great new product that gives maximum sunscreen protection with very minimal ingredients, making it safe for everyone in the family. It is also micro-plastic free and does not contain oxybenzone and parabens making it very safe for the environment, as well.” Banana Boat Simply Protect comes in three variants: Simply Protect Sports, for those who enjoy

an active outdoor lifestyle; Simply Protect Kids, for kids four years old and above; and Simply Protect Baby for babies six months to three years old. Both latter variants are sting-free and tear-free products made mild and gentle enough even for the most delicate and sensitive skin. All have products stays on skin in seven conditions—sun, heat, wind, pool water, ocean water, sweat and sand.

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Monday, June 17, 2019 E1

Tackling the underrepresentation of women in media A By Aneeta Rattan, Siri Chilazi, Oriane Georgeac & Iris Bohnet

ROUND the world, women are far less likely than men to be seen in the media. It is clear that the media must change how it reflects the world—but who can change media itself? For over two years, journalists and producers throughout the BBC have been tackling the gender-representation issue by rethinking whom they put in front of the camera, with the goal of achieving 50:50 gender representation ever y month. Outside Source—Ros Atkins’S nightly prime-time news program that started the effort in 2017—increased its representation of on-air contributors from

39 percent women to 50 percent within four months. Today, 500 BBC shows and teams have joined the 50:50 Project. We interviewed more than 25 journalists, producers, presenters and top leaders at the BBC. We’ve found three key lessons that are relevant for any manager or leader aiming to shake up the status quo, and improve diversity, equality and inclusion in their organization.

WHY WE NEED TO RETHINK ‘EMPLOYER BRAND’ By Ken Banta & Michael Watras

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ODAY, a strong employer brand is seen as a critical way to attract, engage and retain the best people. At a time when top talent is highly mobile, those are certainly laudable goals. But is building a special, separate employer brand the way to achieve them? Based on our experience with hundreds of organizations, we believe what has been called “the employer brand” should, in fact, grow out of the established company brand. We recommend a three-step process, led by the CEO and the executive team. First, create a talent framework that lays out the key qualities, behaviors and motivations C-suite managers want to see in their work force, so the company can deliver on its total brand promise. Next, validate the talent framework. Customer-facing workers have the best understanding of their needs and how work really gets done. Key questions in focus groups and on questionnaires for these employees should include: “Does this capture capabilities critical to our success?,” “How do you think prospective hires will react?” and “Do our values come

across clearly?” It’s also important to ask employees for candid feedback about what needs to change in the organization for it to retain, motivate and attract the best people over the long term. A major challenge is learning how well the talent framework resonates with potential hires. One effective approach is to reach out to new employees, asking them to assess important areas such as the company strategy, sense of purpose and quality of customer service, as if they were still looking at the organization as a potential place to work. The final step is to fully embed the talent framework into the business. This means encouraging the right behaviors so that potentially abstract qualities, such as “teamwork,” are assessed and rewarded. As any good leader knows, their most important job is attracting, retaining and advancing the best people. Integrating talent into the center of the corporate brand, rather than spinning out a separate employer brand, is the best way to do that. Ken Banta is the founder of the Vanguard Network. Michael Watras is the chairman and CEO of Straightline.

© 2019 Harvard Business School Publishing Corp. (Distributed by The New York Times Syndicate)

n Start with yourself: News shows typically have little control over the newsmakers featured in the day’s major stories, but they do control the array of contributors, experts and reporters they turn to every day. By zeroing in on this aspect, Atkins was able to focus his team’s efforts on specific, changeable behaviors. All the team had to do was record the gender representation of contributors each day (initially on a Post-it Note, which eventually got entered into in a spreadsheet), and track their progress toward the goal of hitting 50:50 monthly. n Follow the data: Across shows, the one insight echoed by everyone we interviewed was the value of collecting their own data, and following it over time. We heard this from people who initially argued that they were already doing a good job of representing women on-screen, only to find themselves at around 30 per-

cent women after actually counting; from those who hit 50 percent women quickly, and then followed their data and found themselves backsliding; and from those who had yet to hit the mark.

n Believe in others’ ability to change their behavior: Teams de-

cided what the “right” data to collect was for their show, and then reported their own data through a monthly BBC-wide dashboard. Progress was celebrated, and teams that struggled were offered support. Teams that resisted were reminded that they could opt out of the project anytime—so far only one team has done so.

Aneeta Rattan is an associate professor at London Business School, where Oriane Georgeac is a doctoral candidate. Siri Chilazi is a research fellow at the Harvard Kennedy School, where Iris Bohnet is a professor and a codirector of the Women and Public Policy Program.

The human behind the product

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By Adam Waytz

HUM A N touch imbues experiences and products with special significance and so increases people’s perception of the value of those experiences and products. Smart organizations, rather than continuing to automate their services at all costs, would be wise to understand the ways that human presence creates value in the mind of consumers. There are three primary ways human contact matters:

n Intention

Sensing human intention at the root of the interaction is critical because people tend to equate intentionality with purpose and meaning. One consequence of the digital age and the push toward mass production is that demand for handmade products has increased. Can customers really taste the difference between handmade and store-bought ice cream? It is unclear, but the handmade touch seems to create the perception of something special.

n Effort

Research shows that customers enjoy a sandwich order more when they observe the sandwich maker preparing the food (rather than simply ordering the food and receiving it). This increased satisfaction occurs in part because people value products based on the perceived effort exerted toward producing them, and human interaction makes the effort transparent.

n Authenticity

Why do people pay more for auction

items that have had physical contact with their owners, and why does increased physical contact predict increased willingness to purchase such items? According to research, these tendencies result from people’s magical belief in “positive contagion”— the notion that, through touch, the owner can instill an object with an authentic essence. Adam Waytz, a psychologist, is an associate professor at the Kellogg School of Management at Northwestern University.

How B2B companies can win back customers they’ve lost By Frank Cespedes & León Poblete

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N our study of 26 broken customer-supplier relationships, we found that companies that had successfully won back a customer followed a similar pattern. They identified the reasons for the initial dissolution, applied the right cost-benefit analysis, conducted an honest conversation with the customer and accommodated their specific requirements. To illustrate the process, we’ll use two companies, which we’ve disguised: Brex Tech and RILF. In 2009, Brex Tech, which supplied RILF with electronic components for its optical devices, lost RILF as a customer, but managed to win it back in 2012. Here’s how Brex Tech did it.

n Reasons for dissolution. Your analysis needs to focus on what happened, not what should have happened. In Brex Tech’s case, it had restructured, increased its prices and laid off key staff members. What started as a pricing issue led to disputes and loss of trust between executives from both firms, which in turn generated more problems, and RILF lost interest in working with Brex Tech. n Cost-benefit analysis: After gleaning information from its previous transactions with RILF, including revenues, margins and investments, Brex Tech’s CEO said that “RILF had accounted for more than 15 percent of turnover and we now

had idle equipment in our plant that had been customized to manufacture products for RILF.” Next, Brex Tech looked at both the economic and organizational requirements for reestablishing mutual trust and reliability. Brex Tech knew it could offer RILF price reductions, better technical assistance than its current supplier in the relevant product categories, order-size flexibility and other areas where the customer could quantify the benefits of a reactivated relationship.

n Interactive dialogue: While top management at both companies had been unable to reach an agreement, production personnel shared positive relations and unique know-how about products that RILF

required. This was a key to reacquiring the account and underscores a repeated finding in management research and practice: People do business with people.

n Accommodate specific requirements: You must offer a better

deal than the current supplier to motivate change. The resulting agreement justifies the effort. Brex Tech’s sales and net profit from the reestablished relationship with RILF were soon higher than in 2009. Frank Cespedes is a senior lecturer at Harvard Business School. León Poblete teaches at Chalmers University and Uppsala University, in Sweden.

E2 Monday, June 17, 2019 • Editor: Efleda P. Campos

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AWS Siklab Pilipinas holds second edition By Rizal Raoul S. Reyes @brownindio

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Contributor

OR its second edition, Amazon Web Services, an Amazon.com company, is hosting a bigger version of AWS Siklab Pilipinas 2019 by not only holding it in Manila, but including Cebu, Davao and other parts of Luzon to enable the company to reach more graduating students and faculty members. AWS Siklab Pilipinas 2019 is a large-scale cloud technology training event for higher education institutions. The weeklong training events will be conducted monthly from May to December 2019 in cities across the country, with the first session commencing

on May 20 in Manila. “At the inaugural AWS Siklab Pilipinas event in Manila last year, we saw enthusiastic participation from hundreds of students, educators and customers. Since then, more education institutions have asked us to bring the AWS Siklab

Pilipinas back to the Philippines, to continue with our cloud skilling program on AWS services,” said Vincent Quah, APAC regional head for Education, Research and Not-For-Profit—Worldwide Public Sector, Amazon Web Services, in a recent press briefing held in Makati City. “We listened to our customers and are pleased to increase the training this year to two more cities in the Philippines, and to hold the events on a monthly basis. Participants will access more indepth learning modules for specialized areas, such as Internet of Things, Machine Learning and Big Data Analytics, which are aligned to what our customers are telling us are important skills for the future,” Quah added. Henry Motte-Muñoz, CEO and founder of Edukasyon.ph, said the Philippines needs to equip students with the right tools and technical skills to ensure successful employment. Edukasyon.ph, an AWS customer and a social enterprise that connects students to

education opportunities through an online platform, is a co-organizer of this event. “We are fortunate to work with a global technology leader like AWS that understands the needs of industry and provides the resources to help elevate our future workforce,” Motte-Muñoz said. The World Economic Forum’s Future of Jobs Report 2018 said 72 percent of Philippine companies are expected to adopt cloudcomputing technology across a wide range of industries, and 84 percent of the companies surveyed are likely to hire new permanent staff with skills relevant to new technologies. In January 2019, an IDC Philippines report stated that at least 30 percent of local organizations will be digitally determined by 2020. AWS Siklab Pilipinas 2019 will provide more technical learning sessions, with important advice from AWS customers and members of the AWS Partner Network (APN), as part of the intensive training curriculum.

Fastech, FAITH Colleges cohost Green ICT Forum 2019

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ASTECH Synergy Philippines Inc. and FAITH Colleges together with the Semiconductor and Electronics Industries in the Philippines Foundation Inc. (Seipi) co-organized this year’s Green ICT Forum in conjunction with the Philippine Semiconductor and Electronics Convention and Exhibition (PSECE) on June 1, 2019, at SMX Convention Center, Manila, Philippines. The summit’s theme this year was “Green ICT and R&D for National Progress.” The event provided a platform for comprehensive discussion on the sustainable use, manufacturing and development of information and communication technology (or Green ICT). With technology and electronics playing an increasingly significant role across the world, the forum’s ultimate goal was to promote a mind-set

FedEx, TNT restore earthquake-hit school in Pampanga

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EDEX Express, a subsidiary of FedEx Corp. (NYSE: FDX), and the world’s largest express transportation company, together with TNT Philippines, provided support for Sapang Uwak High School in Porac, Pampanga, after it was damaged in the 6.1-magnitude earthquake that recently hit Luzon. FedEx Express employees helped improve school facilities by renovating classrooms, repainting and creating a colorful mural to adorn the facilities. The 51-employee volunteer team also shared school supplies and meals with over 80 high-school students during the event. As part of the company’s continuous support for the communities it operates in, FedEx and TNT donated over P300,000 (over $5,000) for the activity. FedEx is ahead of plan for its FedEx Cares goal of investing $200 million in more than 200 global communities by 2020.

of sustainability for ICT. This year’s topics, such as “The Future of Manufacturing Technologies: Industry-driven Concept,” “Society 5.0,” “Industry 4.0,” “Practical Approach to Smart Factory,” “Green Power,” “Decentralized Energy Generation using Next Generation Solar Systems” and “Sustainability and Green Initiatives of Analog Devices” were covered at the event. This year’s speakers included Osamu Namikawa, senior manager for Environmental Affairs from the Japan Electronics and Information Technology Industries Association (Jeita); Berthold Arweiler, head of AIT MA Smart Factory from Continental Temic; Rhett V. Ramos, Asia IT director from A llegro MicroSystems Philippines Inc.; Olaf Gresens, president of Merlin

Solar Technologies Inc.; Carlos Lorenzo L. Vega, vice president for Power Marketing and Trading from First Gen Corp.; Florence Galindo, EH&S manager from Analog Devices Philippines; Saturnino G. Belen, Jr., president of FAITH Colleges, and Dr. Danilo Lachica, president of Seipi, were invited to give talks in the forum. Fastech, a leading Philippine semiconductor manufacturing company, is recognized for its leading-edge know-how in niche IC semiconductor components and RF/microwave modules. With the industry and electronics moving toward more power-efficient chips and components, Fastech has positioned itself to provide a broad portfolio of Si (Silicon), SiC (Silicon Carbide) and GaN (gallium nitride)-based devices. In recent years, SiC- and GaN-

based semiconductors called the “Next Generation Power Semiconductors” are two semiconductor materials seeing widespread use in power supplies, solar inverters and industrial motor drives. They are also called green devices because they reduce power consumption and carbon-dioxide emissions tremendously. FAITH Colleges, an institution of higher learning and research in the Philippines and the academic partner of Fastech, continues to promote research and development into Green ICT in the ManilaLaguna-Batangas (MLB) Research and Innovation Consortium. This event was made possible with the support of sponsors Continental, Omniversal Assurance Agency Corp., Firstec Metallics Inc., IXL Lima Group Security Inc. and Lima Park Hotel.

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Hospitality arts school celebrates 10 years

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OUNDED in 2009, the Asian School of Hospitality Arts had a vision to improve the lives of those who aspire to be in the hotel and restaurant industry by honing their skills and increasing their employability. A decade later, Asha has become the top training center for those who want to become globally competitive hospitality leaders of the future. “For the last 10 years, we have exposed our students to the real world and ensured high-quality training for them to be ready and fully equipped,” said Angelina Blanco, dean and director of Career Development and Placement, Asha. The tourism industry is booming—so is the demand for services from these fields. To fill in the gap, Asha has been taking a holistic approach in providing hospitality education through the years. From theories, skills and the right working attitude, Asha trains its students to be highly competitive through its courses and training. “Asha offers ‘a real world’ education, meaning what we teach is actually what’s really going on in the industry. Our instructors are industry practitioners. For example, we have an executive housekeeper who’s teaching housekeeping; we have an actual F&B manager who’s teaching food and beverage service,” Blanco said. Asha school offers both college and short courses in its two branches: Antipolo City and Kamias, Quezon City. Asha offers two four-year courses: Bachelor of Science in Hotel and Restaurant Management, and BS Entrepreneurship. It also has certificate programs which can be taken for a year, such as Professional Cooking with Certificate in Hotel and Restaurant Operations, Barista with Certificate in Hotel and Restaurant Operations, and Certificate in Hotel and Restaurant Operation. Asha also offers a twoyear diploma course in hospitality management. To further help the industry, Asha also helps professionals through its short courses focusing to help the staffs and officers from the hotels, restaurants and resorts in all the areas of operations. For its 10th year, Asha has just been granted the permission to operate the Senior High School Grades 11 and 12 with the ABM (Accountancy, Business and Management) track and also the

technical-vocational track in hospitality arts, which includes culinary, food and beverage service, housekeeping and front office. With these new additions, the institution stays true to its promise to provide a stronger foundation for its graduates—the future hospitality leaders—by beginning the formation of the students in the early stage. Also in line with Asha’s 10th year is the strengthening of partnerships with government agencies, such as the Department of Tourism, Technical Education and Skills Development Authority (Tesda), and the Commission on Higher Education. The institution also continues its strong relationships with different private companies regarding internships abroad for its students. For the last years, these strong partnerships have helped students to have on-the-job training with pay for two to three months, and to have a one-year internship with pay in the USA after they graduate. Aside from that, these helped Asha’s graduates to land quality jobs in the hospitality industry with 95-percent employment rate. Asha has been consistently producing quality graduates, which resulted in a high employment rate. One thing here is clear: It brings out the best from its students. Asha’s key to have quality students is a healthy school environment. Although having a small population, keeping a small student-and-teacher ratio offers a more focused session with the instructor and its students in the classroom. The school has students coming from different backgrounds, and are fueled with same dreams and passion with the institution. Misha Musngi, a 35-year-old student of Batch 2019, is a student who can attest to its good environment. Breaking the barriers and defying the odds, as she’s a living proof that age will not stop you from achieving your dreams. “I admit, the hospitality industry is a glamorous field, and some industries are discriminating when it comes to age. But when I entered Asha, I learned from Dean Angie that age is just a number. Asha will help you pursue your dreams,” Musngi said. Once a lost star, Misha found her passion reignited when she entered Asha.

Nickel Asia leads in ‘plogging’ for 2019 World Environment Day CCA Manila highlights baking ICKEL Asia Corp (NAC), together with programs with book launch its subsidiaries Cagdianao Mining, Dinapigue Mining, Hinatuan Min-

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ing, Hinatuan-Manicani Project, Rio Tuba Nickel and Taganito Mining once again led in “plogging” for World Environment Day 2019 (WED). It is the second year that NAC conducted this activity simultaneously with its subsidiaries all over the country, with the theme “Healthy Ka Na, Nakalinis Ka Pa.” Plogging is jogging while picking up trash. The company meant to teach its employees the value of protecting the environment while conducting activities that promote healthy living. The United Nations (UN) has declared June 5 of every year as WED, declaring that day as “a special day to draw awareness and encourage actions to pressing environment concerns” such as pollution. This is the second year that NAC as a corporate citizen, participated in this world event celebrated by some 100 countries across the globe. The NAC-wide plogging was simultaneously conducted today by NAC employees and their partners in their respective communities from the company’s mining operations in Surigao Del Norte, in Bataraza, Palawan; in Cagdianao, Dinagat Island; in Dinapigue Isabela; and in Guiuan, Eastern Samar. In Surigao City alone, some 2,000 kilos of trash, as estimated by Department of Environment and Natural Resources, were collected by 150 joggers who joined this year’s NAC-wide plogging.

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NAC hopes that this amount of trash “plucked up” from the streets by the joggers will gradually decrease as the company intensifies its campaign on responsible waste management. Ploggers from Surigao City were joined by members of the Surigao Runners Club; REACT Miners; Tri-Sur; Bugsay Marajaw Surigao; Emergency Service Corp. Alumni Association, BJMP, BFP, DENR, Department of Education, Joy FM and other running enthusiasts. Engineer Robert Francisco, NAC-Taganito Mining’s environment manager, said “we are doing this activity every year to get the attention and the support of the communities to get involved in the discourse on environment protection and sustainability. We at NAC take these matters very seriously and

our everyday work involves discussions on issues pertaining to serious environment concerns such as plastic and air pollution and we want everyone on the communities to get in on the game.” The UN also calls WED as a “the people’s day for doing something to take care of the Earth” and NAC employees are taking the lead in rallying the people in the communities that the company serves to recommit themselves in our inherent responsibilities as stewards of the environment and natural resources. “Battling pollution as one way to care for the environment is a rough and tough challenge but not impossible if hurdled collectively as responsible communities,” Francisco said.

HE country’s top culinary school, the Center for Culinary Arts (CCA Manila), is maintaining its reputation as a pioneer and innovator in the culinary academic field. To highlight its baking programs and short courses, CCA Manila invited Chefs Miko Aspiras and Aileen Atanacio for the secondary launch of their much soughtafter book, A Piece of Cake. Formally launched in April, the secondary launch on May 21 introduced CCA Manila students and guests to the sweet creations of the two innovative pastry chefs. They collaborated on this book project, which took them two years to finish, and featured dozens of pastry and cake recipes that can be recreated in one’s own home. During the event at CCA Manila’s USDA Theater, Chef Aileen prepared her own take on the New York Cheesecake. The special cake is featured on the left side of the A Piece of Cake cover. Starting from scratch, she showed the audience why she deserved all the accolades the book is getting. Chef Miko created his decadent New York Cheesecake Entremet. Although seemingly tedious to prepare at first, the cookbook guides bakers through the stepby-step process. It is a truly indulgent cake created by a pastry chef at the height of his creativity. With a heightened awareness on how businesses and careers in baking and pastry

arts are booming all over the world, CCA Manila is offering the Certificate in Baking and Pastry Arts Course, a program designed to provide students with a strong foundation on baking and pastry arts, supplemented by management competencies. The program includes food safety, knife skills, baking math, green chefmanship, nutrition, preparation and serving of coffee, among others. In the one-year program, students will also be introduced to the operations of a bakeshop, patisserie and café. For those who are really interested to enter the baking and pastry field but do not have much time on their hands, they can choose instead to enroll in CCA Manila’s Fundamentals in Baking and Pastry Arts Course (FBPAC). The FBPAC is a 13-day comprehensive hands-on program (total of 84 hours) that will introduce students to the essential skills and give them knowledge on food safety, baking math, green chefmanship, baking techniques and methods. There is also an intensive application of principles and techniques allowing students to become knowledgeable to produce various baked and patisserie products, including breads, cakes and cake decoration and chocolate confectionaries. Advantage of this short course includes sessions concluding with a group tasting and a critique of the day’s work by the chef-instructor.

Marketing BusinessMirror

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Editor: Efleda P. Campos • Monday, June 17, 2019 E3

WHAT IS THE BEST WAY TO LAUNCH A BRAND? By Millie F. Dizon

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Dear Letty, Launching a brand is a very exciting part of marketing and public relations work. It’s like unlocking a door to a whole new world, and building a brand for your company is one of the most important things you can do as a marketer. But with that excitement comes a lot of challenges, especially if expectations are high and budgets are low. As Stewart Hodgson says in an article in Marketing Profs.com, “the way you introduce your company to your customers could have a huge impact for your potential future sales.” After all, “you really do have only one chance to make a first impression.” He goes further in his article How to Launch a New Brand: Five tips for an Unforgettable Debut to share with us five simple steps to make this happen. Hodgson begins by highlighting the power of a brand, which he says “allows you to differentiate yourself from industry competitors with a unique image, memorable voice and an identity that resonates with your target customers.” We can achieve that brand recognition by “adopting a forwardthinking mindset, establishing a strategy and fully prepping your rollout.” Here are his five tips:

Start as early as possible

TIME, as they say, is gold, and having enough time preparing for the launch can prove to be critical to its success. “There’s a lot more to launching a brand than simply showing off a new logo or telling people you’re open for business,” says Hodgson.

CANNES LIONS 2019: ‘DENTSU APOLLO’ TEAM OF DENTSU JAYME SYFU SELECTED FOR CANNES ‘CHANGE FOR GOOD’ HACKATHON

OUT of hundreds of global entries, Dentsu Jayme Syfu’s team has once again been selected to participate in the second annual Change for Good Hackathon at the Cannes International Festival of Creativity next week. Together the Amazon, Huge, and The Earth Day Network have chosen six teams from around the world with the best creative ideas to help create positive change in today’s world. This year’s challenge is to create solutions for climate change. The Dentsu Apollo team from Dentsu Jayme Syfu is comprised of Soleil Badenhop, Copywriter; Monica Soliman UX/UI designer; Karl Nylander, art director; Maki Tabili, creative technologist. A Strategic Planner From Dentsu Tokyo, Miho Sugihara, joins them as their fifth member.

story about how the new logo was all about belonging.” But before you share your story with the world, “make sure your employees know your story inside and out.” They are, after all, your most important ambassadors and frontline storytellers responsible for sharing your message.

EAR PR Matters, I am quite new in the job working for a medium sized PR agency, and have noticed that many of our clients are seeking services for launches of products and brands. Most of the time, we are asked to submit concepts, which are often subjected to bidding. What are the things we can keep in mind when making our pitches? Please give us some tips on how to launch a brand. Sincerely, Letty G.

As one of the six shortlisted teams in the Cannes Lions Change For Good Hackathon, they will enjoy a full week delegate badge to enjoy the festival, hands-on mentorship from some of the world’s most prominent industry leaders and change influencers, real-time expertise in design and product development from Huge’s user experience leaders, support of on-the-ground solution architects and business development leads from Amazon Web Services, Amazon Alexa, and Amazon Pay available to make their ideas a reality, and the chance to present their solutions to an esteemed judging panel and engaged audience on the Lions Innovation Stage, which will be broadcast socially around the world. With Dentsu Apollo’s solution for climate change, they have the chance to win the Grand Prize to work with The Earth Day Network to bring the final product to market this fall as part of the organization’s EarthDay 2020 campaign. Last year, on the inaugural year of the Amazon Hackathon in Cannes, the Dentsu Team from Dentsu Jayme Syfu/Dentsu Tokyo won the Grand Prize for their work on women safety “Alexa: Walk with me”.

Have a timeline for your launch

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PR Matters

“The quicker you get started, the sooner you will be able to identify potential problems before they damage your company’s reputation.” He goes on to cite “the fateful spring morning when Instagram rolled out its brand-new logo, sparking a public outcry, and leaving the business wondering where it went wrong.” With this, it is important to give your team “plenty of time to make sure your strategy makes sense” with “just a few extra weeks devoted to consumer research.”

Know your audience ecosystem

“YOUR brand is your reputation, your identity, your soul as a business” says Hodgson. “The most successful brands are those that resonate with their customers on a deeper level, sharing unified values and goals.” The more you know about your ecosystem—is it the mass market or luxury, millennials or more mature—“the more you can design a brand that both generates buzz during your launch and continues to establish long lasting relationships for the life of your company.”

Make the launch just one chapter in your story

AT a time when engagement is everything, “successful brands create an affinity with their audience that gradually transforms customers into loyal consumer advocates.” And as today’s customers search for new ways to develop stronger relationships with their

BREAKING NEWS: 8 COUNTRIES IN ASIA GET INTO OUTDOOR LIONS SHORTLIST AT CANNES LIONS 2019, CHEIL HK, OGILVY HK AND OGILVY PHILIPPINES MAKE THE CUT

THE shortlist for the Outdoor Lions category in Cannes Lions 2019 has been released. Being under the Communication track, the contenders’ campaigns have all come to brilliant life through people, partnerships and processes. Among those in the shortlist came from eight countries in Asia: Hong Kong, Thailand, India, Singapore, Japan, United Arab Emirates, Pakistan and the Philippines. Among those eight countries, 13 ad agencies got in: Cheil Worldwide Hong Kong (5), Ogilvy Bangkok (6), Ogilvy Hong Kong (7), Dentsu Impact Gurgaon (2), Ogilvy Philippines Makati City (3), Mullenlowe Singapore (3), McCann India Mumbai (2), Dentsu Inc. Tokyo (4), Wunderman Thompson Dubai (3), Impact BBDO Dubai (3), Wunderman Thompson Mumbai (4), Wunderman Thompson Bangkok (1) and BBDO Pakistan Lahore (1) with 39 entries all in all.

favorite brands, “the easiest way to set yourself up for success is to position your launch as an important chapter of your company narrative.” If you are, for example, introducing a new company, think about what caused you to approach this specific marketplace? If you are rebranding, what trends in your industry pushed you to adopt a new image. Hodgson recalls that when Airbnb launched its new identity in 2014, “it inspired customers with a

“TIMING I important in business,” says Hodgson. “Write a blog at a wrong time, and you could risk incurring the wrath of an unhappy consumer base. Create a product too late, and you could miss your chance to transform the market.” When you’re launching a brand, “timing is all about making sure that you share the right information with the right people at the best times. That is why it is important to “avoid leaking information about the brand before its official launch date. Brand media taken out of context could prompt negative conversations about your company before it has even had a chance to introduce itself.” And that would be tragic.

Stay the course

WHILE a launch can be very exciting

and create a lot of buzz, “it is just the start of your brand strategy.” The rollout, says Hodgson, “is your first step to a new identity, and the path ahead involves endless options for engaging, sharing, and communicating with your customers in ways that allow your message to spread to new people and partners. And although your launch sets the stage for marketing campaigns, content creation and social growth, it’s up to you to invest in all of that.” More important, “never rest on your laurels after a launch. A brand isn’t just a name, logo, or web site— it’s a dynamic, versatile entity that requires constant nurturing to survive.” PR Matters is a roundtable column by members of the local chapter of the United Kingdom-based International Public Relations Association (Ipra), the world’s premier association for senior professionals around the world. Millie Dizon, the senior vice president for Marketing and Communications of SM, is the former local chairman. We are devoting a special column each month to answer the reader’s questions about public relations. Please send your comments and questions to askipraphil@gmail.com.

Perspective BusinessMirror

E4 Monday, June 17, 2019

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What does the Trump administration want from Iran?

IN this May 29, 2019, photo, people drive at Vali-e-Asr Square in downtown Tehran where an anti-Israeli billboard is place ahead of the Al-Quds, Jerusalem, Day, Iran. Mysterious attacks on oil tankers near the strategic Strait of Hormuz show how susceptible one of the world’s crucial chokepoints for global energy supplies remains, 30 years after the U.S. Navy and Iran found themselves entangled a similarly shadowy conflict. The so-called Tanker War saw American naval ships escort reflagged Kuwaiti oil tankers through the Persian Gulf and the strait after Iranian mines damaged vessels in the region. It culminated in a one-day naval battle between Washington and Tehran, as well as saw America accidentally shoot down an Iranian passenger jet, killing 290 people. AP/EBRAHIM NOROOZI

By Noah Weisbord | Queen’s University, Ontario

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THE CONVERSATION

WO oil tankers were attacked on June 13 off the coast of Oman, forcing the crew members of one burning ship to flee. It was the latest in a series of assaults on tankers transporting oil through the Gulf. In May, Saudi, Norwegian and Emirati oil tankers were attacked off the coast of the United Arab Emirates, causing damage but no casualties. The attacks have gone unclaimed, so the perpetrator is unknown—at least publicly. US ally Saudi Arabia, Iran’s regional rival, blamed the Iranian government and called the May attacks “naked aggression.” Saudi King Salman asked the international community to “use all means” to punish Iran. US national security adviser John Bolton, who has called for bombing Iran to cripple its nuclear program, has maintained that Iran is “almost certainly” responsible for the attacks. In May Bolton announced the deployment to the Persian Gulf of a carrier strike group and a nuclear-capable bomber task force, America’s most formidable military assets. The purpose: “to send a clear and unmistakable message” to Iran. But the White House is squabbling over its objectives, which are far from clear. Trump administration officials do not seem to agree whether the US wants behavior change or regime change. Should the US use diplomacy or force? Are frustrated Iranians or frustrated Americans the target of this military deployment? President Trump told UK television host Piers Morgan that military options are on the table but,

“I’d much rather talk.” According to Washington Post columnist David Ignatius, President Trump “wants to sound tough [popular] so long as it doesn’t get him into a war [unpopular].” President Trump “doesn’t want to go to war with Iran,” retired General David Petraeus told ABC News. As a scholar who has studied the onset of a number of wars, I believe these commentators underestimate the influence of shrewd warmongers like Bolton. They also fail to credit how quickly a trivial confrontation between industrialized forces can change a leader’s calculus and drag the great powers and their allies into war. The showdown in the Persian Gulf is not like the US and the Soviet Union incrementally adjusting the balance of power, as they did during the Cold War. Mixed signals, bad timing and this kind of uncalibrated brinksmanship is how World War I began and spiraled out of control. It has brought the US closer to the next Middle East war.

Up to the edge

IRAN brokered a deal with the US, the EU, Russia, China and Germany in 2015 to curtail its nuclear program in exchange for sanctions relief. The current standoff began in May 2018 when President Trump reneged on the deal and later implemented a new “maximum pressure” campaign against Iran, which included economic sanctions pun-

THIS September 21, 1987, file photo shows mines aboard the Iranian ship Iran Ajr being inspected by a boarding party from the USS Lasalle in the Persian Gulf. AP/MARK DUNCAN

ishing countries purchasing Iranian oil. The UK, France, China, Russia and Germany pledged to abide by the terms of the deal. Nevertheless, US sanctions against Iranian industry at a time when Iran was complying with the deal are collapsing the Iranian economy. The White House claims its “maximum pressure” policy is working—that Iran is cutting aid to malevolent allies and proxies in the region, including Syrian President Bashar al-Assad, Hezbollah and Hamas. US Secretary of State Mike Pompeo maintains, without evidence or a tangible timeline, that grueling economic conditions created by the US will turn frustrated Iranians against their leaders, provoking regime change. That idea seems to me to be magical thinking. US belligerence, especially when it has been rejected by the broader international community—as it is now by parties to the 2015 nuclear deal—is more likely to turn Iranians against the US, polarize US allies and strengthen Iran’s hardliners.

Cosmopolitan Iranian youth, for example, who are the best hope for peace with the US, are the most likely group to turn against their government—but not if the Trump administration strangles their economy and threatens to invade their country.

Limited choices

IN the meantime, Iran’s economic troubles are narrowing its options. According to the International Atomic Energy Agency, Iran has accelerated uranium enrichment and intends to quadruple production, in violation of the nuclear deal. Attacks on US forces or allies, including Israel, are becoming increasingly appealing to Iranian leaders to give Iran some leverage against the US. The prospect of economic collapse under draconian sanctions by the US also provokes Iran’s leaders to instigate a confrontation sooner rather than later, while its military and proxies are strong. Iranian President Hassan Rouhani has given Germany, the UK, France, China and Russia 60 days to honor their promise to buttress Iranian energy

and banking sectors before taking additional steps to withdraw from the nuclear deal. Iran’s economic and military weakness also encourages its leadership to cooperate more closely with America’s foreign adversaries, including Russia, despite Iran’s aversion to ceding precious influence in the region. If the Iran-Russia relationship tightens, it will result in even greater tension with the US. Increased Iranian-Russian cooperation is also an invitation to US leaders to strike before US troops find themselves facing an emboldened Iranian military reinforced with Russian equipment and know-how. With each day of US sanctions, Iran’s leaders become increasingly desperate, with diminished leverage should the two countries face off on the battlefield or at the negotiating table.

Defusing the tension

WITH tensions rising, the US has sent an additional 1,500 troops to the Middle East. Iran’s 60-day ultimatum to parties to the nuclear deal expires in early July. According to Supreme Leader Ayatollah Khamenei, “Negotiation has no benefit and carries harm.” Iran experts Colin Kahl and Jon Wolfsthal warn, “Bolton’s preferences, not Trump’s, are winning out.” There is still time for President Trump to extract the US from this dangerous standoff that he allowed to escalate. Trump’s greatest hope lies in Japanese Prime Minister Shinzo Abe. Japan, which is not party to the 2015 nuclear deal, is a major purchaser of Iranian oil and Abe is perceived to be a neutral broker. Abe is visiting Iran this week— the first Japanese leader to do so in four decades—and will meet with Supreme Leader Ayatollah Khamenei and Prime Minister Rouhani to discuss the standoff.

It is unclear what Abe can accomplish in this overheated climate. A potential solution lies in intense, nuanced diplomacy where the US, building on the 2015 nuclear deal, trades sanction relief for slightly tougher limits on Iran’s nuclear program. This includes renegotiating the restrictions on Iran’s centrifuges, mandatory international inspections, and its accumulation of nuclear material. A slightly modified nuclear deal like Trump’s slightly modified trade agreement with Canada and Mexico, can be recast as victory by all. Trump emerges as peacemaker and potential contender for the Nobel Prize. Iran’s leaders can then right their economy. Trump’s winning outcome, however, is not the outcome Bolton has long advocated. For decades, Bolton has publicly agitated for preventive strikes against Iraq, North Korea and Iran. Only grudgingly, perhaps for fear of losing his job, has Bolton acquiesced to a policy of behavior change over regime change. This is the price Bolton pays to remain the president’s national security adviser—filterer of Trump’s intelligence reports, first one in and last one out of the room whenever the president is discussing matters of war and peace. If Abe fails, the current Iran crisis may yet become the culmination of Bolton’s lifelong ambition. When new explosions rock the Persian Gulf, US troops are injured or killed by Iranian proxies in Iraq, or Iranian-made drones pepper the Saudi skies, will President Trump resist the urge to escalate? This article is republished from The Conversation under a Creative Commons license. Read the original article here: http://theconversation. com/what-does-the-trumpadministration-want-fromiran-117797.

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