Businessmirror june 27, 2016

media partner of the year

BusinessMirror

United nations

2015 environmental Media Award leadership award 2008

A broader look at today’s business

www.businessmirror.com.ph

n

Monday, June 27, 2016 Vol. 11 No. 261

‘CCT reduced poverty, boosted PHL economy’ ₧65B P

By David Cagahastian

When formally pursued, the proposed CCT audit and review has the power to deny the economy the benefits of a liquidity boost that has, thus far, helped flood the economy with estimated cash of

NO BREXIT, PLEASE! THIS IS FOOTBALL

more than P200 billion since the program was adopted.

The planned audit and review already forced Malacañang on Sunday to defend the merits of the world’s third-largest liquidi-

The budget set aside by the government for the Conditional Cash-Transfer Program every year

ty-boosting program the Duterte camp has dismissed as a mere dole-out exercise.

That audit and review has the impact of a Monetary Board decision to siphon off that much money from the financial system at precisely the time when the $285billion economy needs it the most.

See “CCT,” A16

BMReports

Tales of inaugurations past

The evolution of a tradition sports

PPP Lead

I

Alberto C. Agra

S public-private partnership (PPP) the only solution to the infrastructure deficit?

Is PPP truly a priority program of the incoming Duterte administration? What is its relevance and importance in achieving the 10-point socioeconomic agenda? Is there a future for the PPPCenter?

What could be the role of the PPP Center moving forward?

From all indications, PPP will be a priority program and a key change strategy of the incoming administration. Recent events will show that President-elect Rodrigo R. Duterte is not just paying lip service.

Continued on A14

From PPP to PPPP

c1

kobe: it’s ‘mamba mentality’

Private

this June 29, 2010, file photo shows men sprucing up the Quirino Grandstand at the Rizal Park in Manila in preparation for the inauguration of nowoutgoing President Aquino. ROY DOMINGO

By Fil V. Elefante

P

sports

The future of PPPs is written on the wall

@davecaga

resident-elect Rodrigo R. Duterte has made known the intent to put the liquidity-boosting Conditional Cash-Transfer (CCT) Program under review as soon as he takes the helm of the government in a few days, and set the ground under which the P65billion-a-year exercise may be withdrawn.

INSIDE

P25.00 nationwide | 5 sections 36 pages | 7 days a week

c2

@elefantefil

resident-elect Rodrigo R. Duterte will formally assume the mantle of his office on June 30.

According to his spokesmen, the President-elect’s inauguration rites will be kept simple. It will be held inside the Rizal Hall of Malacañan Palace.

PESO exchange rates n US 46.5110

One of Duterte’s spokesmen, Peter T. Laviña, told reporters during a news conference in Davao City in May that the inauguration rites would be kept “simple and frugal.”

About 150 people would be invited to attend the event.

That was the original intention.

The plan has changed since then.

Reports said up to 500 guests will be invited to the President-

elect’s inauguration.

As of this writing, more than 600 people are now on the guest list for Duterte’s inauguration, a huge jump from the original target number of 150.

This was revealed by Martin Andanar, the incoming communications secretary, during a news conference in Davao City recently.

Public

Partnership for the

People Author: Alberto C. Agra

bm Graphics: Job Ruzgal

Continued on A2

n japan 0.4455 n UK 68.4270 n HK 5.9952 n CHINA 7.0739 n singapore 34.7642 n australia 34.8833 n EU 52.5528 n SAUDI arabia 12.4063

Source: BSP (23 June 2016 )

BMReports BusinessMirror

A2 Monday, June 27, 2016

www.businessmirror.com.ph

Tales of inaugurations past

The evolution of a tradition Continued from A1

“We have 627 guests inside the Rizal Hall,” he was quoted as saying in several news reports. “From 500, it has jumped to 627.”

Andanar explained that the guest list would include the President-elect’s family, members of the incoming Cabinet and foreign diplomats.

However, he emphasized that the number of guests was not yet final.

Because the Presidentelect wanted his inauguration to be “simple and frugal,” the traditional rites for the formal assumption of the office of the presidency have been modified.

Taking the palace

The first ritual to be conducted on the inaugural day of a new president is the “ascending of stairs.”

This ritual, which was initiated by Commonwealth President Manuel L. Quezon, is meant to symbolize two things. The first is the peaceful transfer of power between the president-elect and the outgoing president, and second, the continuity of government from one administration to the next.

Since the inauguration will be held in the Palace, the rite involving the outgoing president bringing the president-elect to the traditional inaugural site at Quirino Grandstand, has been dropped.

Instead, the presidentelect will accompany the outgoing president to the spot in

the Palace grounds where the Armed Forces of the Philippines will render honors for the departing head of state.

The outgoing president will then leave the Palace.

Thus, the modified ritual of the peaceful turnover of power is completed.

In the original ritual, the outgoing president simply leaves the inaugural venue, usually the Qurino Grandstand, just before the president-elect formally takes his oath of office by 12 noon on June 30.

Importantance

The traditional rite of ascending the Palace stairs is an important one because the Palace stands “as the office and the official residence of the president of the Philippines.”

Under the rituals and ceremonies recorded in the Presidential Museum and Library, this ritual is described as probably the most historic.

“Perhaps, no ritual of the inauguration is so steeped in history and legend, and so symbolic of the gravitas accorded the highest office in the land, as a president’s first climbing of its main stairs,” explained an article from the Presidential Museum and Library. “Indeed, even the transfer of power from one president to another is affirmed through these stairs. On his successor’s inaugural, the president descends the stairs of the Palace accompanied by the president-elect—thus, marking the formal act of leaving office for the incum-

bent. The president-elect will then symbolically mark the start of his presidency by climbing the same stairs later in the day.”

Quezon’s viewpoint

Quezon, who originated the ritual, wrote in his memoirs: “From the Grandstand, I we nt t h rou g h st re et s crowded with people acclaiming their first President, on to the Palace of Malacañang, the great mansion on the bank of the Pasig River, which had been the seat of power of foreign rulers for many decades past.

As I stepped out of the presidential car and walked over the marble floor of the entrance hall and up the wide st a i r way, I remembered the legend of the mother of Rizal, the great Filipino martyr and hero, who went up those stairs on her knees to seek executive clemency from the cruel Spanish Governor General [Camilo Garcia de] Polavieja, that would save her son’s life.” “ Q u e z o n w a nt e d t h e ritual to symbolize that, henceforth, a Filipino chief executive would be governing from Malacañan Palace, one who could walk up the stairs proudly as the leader of his own people; at the same time, ascending those stairs would be a constant reminder to every president of the portion of the oath of office, which pledges justice to every man,” the Presidential Museum and Library explained.

There’s another reason

why ascending the Palace stairs is a ritual that is seen as historic.

For Quezon, it was seen as an act of “racial vindication.”

It was an act that embodied a person who was born in the Philippines being able to live in a Palace that used to be the residence of the Spanish governor general.

In fact, there was a controversy that arose about this during the days when the United States ruled the Philippine islands.

There was talk that the Amercian High Commissioner should be the one residing in the Palace. Quezon vehemently disagreed.

“As early as 1917 Quezon had already expressed his intention to live in the Palace,” according to the files of the Presidential Museum and Library.

Quezon believed that if the American High Commissioner resided in the Palace and the President of the Commonwealth resided in another residence, it would mean that the President of the Philippines was a “secondary position.”

“So old is Malacañang as the seat of government, unless he lived there, the President would have no prestige whatsoever, the people would not believe he had any actual authority, they would rate him no more than Washington’s puppet,” the museum files said.

“And so it was on ‘the fine, clear and cold morning’ of November 15, 1935, after he had taken his oath

as President of the newly established Commonwealth of the Philippines, Quezon led the crowd to Malacañan Palace,” according to the Presidential Museum. “At last, a Filipino—one chosen by the very people he was to lead— was to live in the edifice that had, since time immemorial, been the seat of two colonial governments.” “ T he c l i mbi ng of t he stairs would, henceforth, signify that the Chief Exe c ut i v e w a s t h e f r e e l y elected head of the Filipino people, one pledged to govern them with justice, in contrast to the appointed colonial governors who formerly inhabited the Palace,” said an article, explaining the inaugural ceremonies that was published by the Presidential Museum and Library. “He could stand tall as a leader elected by the people, in contrast to the chosen representatives of governments of distant lands. The ritual climbing of the stairs, at the start of a presidency, would then on remain a simple, yet eloquent act, reclaiming that which had once been denied Filipinos.”

History

Though Quezon initiated the tradition of ascending the Palace stairs, he was not involved in the first peaceful of transfer of power from an incumbent president to the president-elect.

This distinction is reser ved for Commonwea lt h President Serg io

Osmeña Sr. and President Manuel A . Roxas, which took place in 1946.

T his was fol lowed by transfer of power from Ramon F. Magsayay and Elpidio R. Quirino; Diosdado P. Macapagal and Carlos P. Garcia; and Ferdinand E. Marcos and Macapagal during the Third Republic.

Quezon, Roxas and Magsayay were unable to be involved in the ritual of turning over power to his successor. The three died in office and were replaced by their respective vice presidents.

According to the files of the Presidential Museum and Library, the only presidents to have attended the inaugurals of their successors were Osmeña in 1946, Corazon C. Aquino in 1992 and Fidel V. Ramos in 1998.

“Osmeña attended because it was the first time power was to be transferred from one party to another; Aquino, to symbolize the first peaceful and constitutional transfer of power since 1969; and Ramos, as part of the centennial celebrations of 1998,” said an article published in the Presidential Musuem and Library’s web site.

Based on tradition, the Quirino Grandstand, originally known as the Independence Grandstand, was the preferred venue to hold presidential inaugurations.

The current grandstand is actually a replica of the original independence grandstand built specifically for the independence ceremony

for the Third Philippine Republic on July 4, 1946.

Accord ing to publ ic ly ava i lable records, seven presidents have been inaugurated at the Quirino Grandstand. They were Quirino in 1949, Magsaysay in 1953, Garcia in 1957, Macapagal in 1961, Marcos in 1965, 1969 and 1981, Ramos in 1992; and President Aquino in 2010.

There were four inaugurals that were held outside Manila, the records showed.

These were held in Barasoain Church in Malolos, Bulacan, in 1899 for the i n au g u r at ion of E m i l io Aguinaldo; Corregidor Island in 1941 for the second inauguration of Quezon’s Commonwealth Presidency, which took place during the Japanese invasion of the Philippines in World War II; and Cebu City, in 1998 for Joseph E. Estrada, as the Centennial President, and in Malolos in 2004 for Gloria Macapagal-Arroyo.

Even if both Arroyo and Estrada took their oaths outside Manila, they still gave their inaugural addresses at the Quirino Grandstand.

“The only inauguration held on foreign soil was that of Osmeña [1944] in Washington, D.C., following the death of President Quezon,” the records of the Presidential Museum and Library showed.

“Starting with Quezon’s second inaugural in 1941 until Marcos’s second inaugural in 1969 [with the exception of the special election called in 1946], presidents were inaugurated on Rizal Day, December 30,” the records added.

“Six presidents, Quezon [19 41], Q u i r i no [19 49], Magsaysay, Garcia [1957], Macapagal [year], Marcos [1965, 1969] had inaugurals on December 30,” the records said. “Presidents Marcos [1981], Ramos [1992], Estrada [1998], Arroyo [2004], and Aquino [2010] were all inaugurated on June 30.”

GILAS FINAL12

L

.A. TENORIO and Calvin Abueva were cut from the final 12 lineup of Gilas Pilipinas, the men’s national basketball team, a decision Head Coach Tab Baldwin described as “difficult” and forced him to “sleepless nights.”

Named to the team that will vie in the Manila Olympic QualifyingTournament (OQT) are naturalized player Andray Blatche, Jayson Castro, June Mar Fajardo, Gabe Norwood, Ranidel de Ocampo, Japeth Aguilar, Marc Pingris,Terrence Romeo, Ryan Reyes, Troy Rosario, Jeff Chan and Ray Parks.

Gilas will play France and New Zealand in Group B of the preliminaries of the Manila OQT set from July 5 to 10 at the Mall of Asia Arena. Group A is composed of France, Turkey and Canada. Only the winner of the Manila OQT will earn a ticket to the Rio de Janeiro Olympics in August.

BMReports BusinessMirror

news@businessmirror.com.ph

PHL chemical exports seen declining by 15% this year

T

By Catherine N. Pillas

c_pillas29

he strengthening of the peso could cause the value of chemical exports to decline by 15 percent this year, according to an official of the Philippine Exporters’ Confederation Inc. (Philexport).

“Hot money is coming in, making the peso strong and, converse ly, bad for e x por t s.

Outward shipments is even declining, so best estimate is 15 percent down from last year,” said Oscar Barrera, Philexport trustee for the chemicals sector.

Last year outward shipments of chemicals went down by 35 percent due to the anemic performance of the plastics sector.

This was compounded by the difficulties of exporters in complying with the more stringent rules of the Philippine National Police (PNP) for regulated chemicals.

$515.9M

The value of chemical exports from January to April

Howe ver, t he gover n ment had e x pressed conf idence t hat c he m ic a l e x p or t s wou ld re cover t h i s yea r fol low i ng t he PN P ’s re lea se of i mplement i ng r u les a nd reg u l at ion s for Republ ic Act (R A) 9516, whic h a mended P resident i a l Dec ree ( PD) 18 6 6.

PD 1866 codified the laws on the illegal sale, manufacture or possession of explosives or instruments used in the making of firearms or explosives.

Last year electronics ma kers were forced to secure additiona l per mits and procedures and pay more fees, after the PNP tightened its reg u lations on control led chemica ls.

Also, the PNP added 41 new chemicals to the master list of controlled chemicals in 2015, bringing the total to 101.

Electronics and chemical manufacturers said this caused production delays, as they had to wait for the issuance of permits for imported chemical substances, which they need for their factories.

Smaller companies importing common household chemicals have also been affected by the government’s tighter regulations.

With the release of the IRR, the list of PNP-controlled chemicals was reduced to 32, from 101, and procedures for obtaining permits and licenses were streamlined, with the approval period reduced to 10 days, from 20.

Also, the PNP will no longer collect hefty “escort fees” in the transport of chemicals. This would allow the chemicals industry to save some P9 million.

T he Samahan sa Pilipinas ng Indust r iya ng K im i k a (C hem ica l Indust r ies A ssoc i at ion of t he Ph i l ippi nes) or SPI K , h ad a more s a ng u i ne out look , a s it projec ted t he v a lue of out w a rd sh ipment s to more t h a n double to $5 bi l l ion t h i s yea r, f rom $ 1.9 bi l l ion in 2015.

Main buyers of locally made chemical products are China, Indonesia and Europe.

Chemical products are used by other local industries, such as those involved in making pulp and paper, and handicrafts.

According to data from the Ph i l ippi ne St at i st ics A genc y (PSA), chemical exports from January to April amounted to $515.9 million, down by 30 percent from the $736.74 million recorded in the same period last year.

In April the value of chemical exports declined by 9 percent to $145.54 million, from $159.75 million a year ago.

Monday, June 27, 2016

A3

INVESTMENT ADVISERS WEIGH IN ON BRITAIN’S DECISION TO LEAVE E.U. B r i ta i n ’ s vote to leave the European Union (EU) is evidence we’re living in an increasingly uncooperative world, Los Angeles money manager Jeffrey Gundlach said.

That’s why he’s betting on gold, shortterm bonds and other assets seen as safe havens, rather than on stocks.

G u n d l a c h , c h i e f e xe c u t i ve o f DoubleLine in Los Angeles, said in February that he expected the price of gold, then about $1,200 per ounce, would rise to $1,400— a bet that looked prescient after gold climbed nearly 5 percent on Friday to $1,320, the most in two years.

He made that bet not because of the possibility of the Britain’s departure from the EU, which he thought unlikely, but because he believed investors had lost confidence in the ability of central bankers to boost economic growth through monetary policy.

On Friday, though, he said Britons’ unexpected decision to leave the EU is evidence of “a bear market in confidence” across the board. He spoke on CNBC. Other investment managers, while acknowledging that the British could hurt the global economy and affect markets in the short term, don’t see it as a reason to head for the exits, at least when it comes to the US stock market.

Garrett D’Alessandro, chief executive of City National Rochdale, City National Bank’s wealth-management business, s a i d t h e d o m e s t i c m a r k e t , e ve n accounting for a big sell-off on Friday, is holding its own. The Dow Jones industrial average fell 3.4 percent on Friday, closing at 17,400. While that’s a big single-day drop, it brought the index back to where it was trading about a month ago—and well above where it’s been for most of the year.

“We’re not in the camp that believes we should have most of our money in fixed income,” D’Alessandro said. “ The other day, the S&P 500 was near an all-time high. All those less optimistic investors have been in the wrong place.”

The market’s reaction to the Brexit vote likely has much less to do with any concrete consequences of the vote— Britain won’t leave the EU for about two years—than with what happens next and its effect on the global economy.

What will be the terms under which Britain leaves the union? What kind of new trade deals will Britain reach with other nations once it is on its own?

Will Britain’s leaving spur other EU members to secede?

Those questions are won’t be answered for years. TNS

BMReports BusinessMirror

A4 Monday, June 27, 2016

news.businessmirror@gmail.com

Cosco Capital sets aside ₧7.2 billion for Liquigaz, supermarket expansion ₧2.6B B

By VG Cabuag

@villygc

usinessman Lucio Co’s retail holding company Cosco Capital Inc. is allotting P7.2 billion for capital expenditures (capex) this year for the expansion of its supermarket, liquefied petroleum gas (LPG) and real-estate businesses.

In an interview after the firm’s annual stockholders’ meeting, Cosco President Leonardo Dayao

said the biggest share of the capex, amounting to P3.25 billion, will go to Liquigaz as it expand its

facilities to maintain its position as the second-largest LPG retailer in the country.

Supermarket operator Puregold Price Club Inc. will invest P2.6 billion for the expansion of its various brands, P1.3 billion will be spent by Cosco’s real-estate units, while Office Warehouse will be spending P60 million.

Day ao s a id L iqu i g a z w i l l spend P300 million to acquire gas-refilling stations, adding that margins are better at the downstream of the LPG business, while profits are smaller when they sell wholesale to refillers.

“Liquigaz will also buy new gas cylinders worth P200 million,

The amount to be spent by Puregold Price Club Inc. to expand its various brands

re h a b i l it at e a s tor a ge t a n k for P500 million; build a new storage tank for P1.5 billion; and construct a new jetty for P750 million,” he said.

Dayao said the new jetty and storage tanks will be in Sariaya, Quezon, for them to better serve

Southern Luzon, since it takes a lot of time and costs more to transport LPG from Bataan to this area.

The Sariaya jetty and rehabilitated storage tank will be operational within the year, while the new storage tank will be completed by 2017, Dayao said.

Puregold will be spending P1 billion to put up 25 stores; P1 billion for two S&R Memberships stores; P150 million for 10 S&R quick-service restaurants; and P450 mi l l ion for 75 L awson convenience stores, Puregold Vice President for Investor Relations John Marson Hao said.

The two new S&R branches will

British bracing for world economy to punish UK for leaving EU L

be opened within the year in Iloilo and Cagayan de Oro cities.

S&R is planning to open two stores a year with the aim of having 20 stores by 2020, from the current 10.

Dayao said they will be opening more S&R branches both in Metro Manila and the provinces, noting that Greater Metro Manila remains underserved, and they are, thus, scouting for new locations “with sizable upscale consumers.”

For Cosco’s real-estate business, Dayao said they will be spending P1.1 billion for new Cosco malls, while allotting P200 million for the rehabilitation and expansion of recently acquired malls.

UK urged to ‘Brexit’ quickly; Britain wants more time

In this June 24 photo, a Remain supporter stops to talk to people as he walks around with his European flag across the street from the Houses of Parliament in London. AP/Matt Dunham

L

ONDON—The British were warned for weeks that a vote to leave the European Union (EU) would result in economic pain.

Now they’ll find out whether it will.

United Kingdom financial leaders are scrambling to reassure households, businesses and investors that they can contain the doom and gloom they had predicted in case of a British exit, or Brexit. The pound plunged to its lowest level in over 30 years on Friday, raising concerns about price inflation, and shares in the UK’s biggest banks and realestate builders posted double-digit declines, as economists predicted the country would fall into recession.

Economists slashed their forecasts for Britain, with some expecting a recession and next to no growth next year. That’s a sharp reverse for an economy that had been among the best-performing in the developed world in recent years.

In an early sign of problems, Moody’s Investors Service downgraded the UK outlook from “stable” to “negative.” The referendum result, it said, “will herald a prolonged period of uncertainty for the UK, with negative implications for the country’s medium-term growth outlook.”

Holly Miller, 32, said the vote would affect her economic life profoundly.

“I’m quite shocked by it all,” she said. “I’m just applying for a mortgage so we’re worried about that.”

Only the soothing reassurances of Bank of England Governor Mark Carney managed to ease the market carnage on Friday, as he pledged to stabilize markets if needed. But beyond the short-term market turmoil, the concern is what the vote means for the national economy and its 64 million people.

Before the vote, with campaigning in full swing, the British Treasury had estimated that an exit from the EU would cost the country the equivalent of £4,300 ($5,900) per household. Tax receipts would face a £30-billion shortfall that would have to be filled with tax increases on income and inheritance. House prices, the Treasury had said, could be as much as 18 percent lower by 2018 than if the country hadn’t left the EU. Campaigners for “leave” dismissed this as scare-mongering.

With the vote result confirmed, the “remain” camp sought to shift away from warnings and into damage control: trying to maintain confidence in the business community and among households.

The City of London Corp., which represents the financial-services industry, a big maker of money

and jobs for the country, sought to downplay the impact of the vote on the City, the square mile that is the heart of London’s financial hub.

“The City of London has thrived as a financial and trading center for more than a thousand years and will continue to do so,” Mark Boleat, policy chairman for the corporation, said in a statement.

“There will be no mass exit of banks and financial institutions from the square mile. While there will be uncertainty as Brexit negotiations go on we are still the financial center of the fifth-largest economy in the world.”

Some companies, particularly banks, had said they could move jobs away from London if Britain leaves the EU. That is likely to cost some jobs. How many is yet to be seen.

The British economy could also find it more costly to raise money.

Ratings agency Standard & Poor’s is considering downgrading the country because of the uncertainty related to the vote. A lower rating could mean higher borrowing costs for the government—and in the longer term, less money to spend on schools, hospitals and roads.

“The real question now is how badly the EU will punish the UK for this decision,” said Megan Greene, chief economist at Manulife Asset Management.

Others were looking on the bright side.

At First Property Group, a London-based real-estate investment firm, Chief Executive Ben Habib, who backed leaving the EU, said the vote means Britain will now be able to drive a better deal with the rest of Europe.

Supporters of the “leave” campaign had accepted that there was a potential economic cost to leaving the EU, but have claimed it is a short-term price to pay in exchange for greater control of policies like immigration and borders.

“We now have the foundations for a very good negotiation with the EU,” he said, while minimizing the market turmoil. “The markets are gyrating, but these are gyrations and will not materially affect our economy.”

Habib said the pound’s drop would help British exporters by making their goods cheaper and more competitive in the global marketplace.

Habib’s colleague and friend George Digby, however, was less upbeat. He had voted to remain and said the best he could do was wait and see if there is significant economic damage, as his “remain” camp had claimed.

“I hope I am proved wrong on that score,” he said. AP

ONDON—T he European Union (EU) wants a quickie divorce, but Britain wants time to think things over.

Senior EU politicians demanded on Saturday that the United Kingdom quickly cut its ties with the 28-nation bloc—a process Britain says won’t begin for several months—as the political and economic shockwaves from the UK’s vote to leave reverberated around the world.

“There is a certain urgency so that we don’t have a period of uncertainty, with financial consequences, political consequences,” French Foreign Minister Jean-Marc Ayrault said at a meeting in Berlin of the EU’s six founding nations.

EU Commission chief JeanClaude Juncker warned that the split was “not an amicable divorce” but noted it was never “a tight love affair anyway.”

Britons voted 52 percent to 48 percent on Thursday in favor of ending their country’s 43-year membership in the 28-nation bloc.

But no country has ever left the EU before, so no one knows exactly how the process will play out. Britain must, at some point, unambiguously notify the bloc of its intentions and set a two-year clock ticking for negotiating its departure. Until then, Britain remains an EU member.

In contrast to the clamoring of EU officials, the leaders of Britain’s “leave” campaign, who had reassured voters that the EU would offer Britain good terms for a new relationship, were largely silent on Saturday.

England’s 300-year-old union with Scotland could be another casualty of the referendum, since most people in Scotland voted to remain in the EU but were outvoted by a majority in much-larger England.

Scottish leader Nicola Sturgeon said on Saturday that her semiautonomous administration would seek immediate talks with EU nations and institutions to ensure that Scotland could remain in the bloc. “[We will] explore possible options to protect Scotland’s place in the EU,” she said after meeting with her Cabinet in Edinburgh, adding that a new referendum on Scottish independence is “very much on the table.”

Scotland voted in 2014 to remain a part of the UK, but that decision was seen as being conditional on the UK staying in the EU. The victorious “leave” campaigners have said there’s no rush to trigger Article 50 of the EU’s Lisbon Treaty, which will begin a two-year exit process to renegotiate trade, business and political links between the UK and what will become a 27-nation bloc.

British Prime Minister David

Cameron announced his resignation on Friday and said his successor, to be chosen by October, should be the one to navigate the tricky process of withdrawing from the bloc.

The favorite to succeed him, former London Mayor Boris Johnson, has said there’s “no need for haste”— but EU leaders are saying the opposite, in insistent tones.

Juncker said on Saturday the British had voted to leave and “it doesn’t make any sense to wait until October to try and negotiate the terms of their departure.”

“I would like to get started immediately,” he said.

French Economy Minister Emmanuel Macron expressed the frustrations that many EU politicians feel, accusing Britain of taking the EU “hostage” with a referendum called to solve a domestic political problem: challenges to Cameron from right-wing euroskeptics.

“The failure of the British government” has opened up “the possibility of the crumbling of Europe,” Macron said at a debate in Paris.

Top diplomats from the EU’s six founding nations—France, Germany, Italy, the Netherlands, Belgium and Luxembourg—met in Berlin for hastily arranged talks and stressed that the exit process should be speedy.

“There must be clarity,” Luxembourg Foreign Minister Jean Asselborn told reporters. “The people have spoken and we need to implement this decision.”

France’s Ayrault suggested Britain could name a new prime minister within “several days”—but that is likely instead to take several months. The process calls for Conservative lawmakers to winnow candidates down to two choices who will then be voted on in a postal ballot of party members.

Legally, there is little the EU can do to force Britain’s hand, since Article 50 must be triggered by the country that is leaving. But political pressure and economic instability may force British politicians to act more quickly than they had hoped.

German Chancellor Angela Merkel struck a conciliatory note, saying it “shouldn’t take forever” for Britain to deliver its formal notification of leaving.

“There is no need to be particularly nasty in any way in the negotiations. They must be conducted properly,” Merkel said at a news conference in Potsdam, outside Berlin.

Britain’s “leave” campaigners have been accused of lacking a plan for the aftermath of a victory.

Dominic Cummings, director of the “Vote Leave” group, said it would be “unthinkable” to invoke Article 50 before a new prime minister was in place. AP

news@businessmirror.com.ph

AseanMonday BusinessMirror

Monday, June 27, 2016 A5

Thailand’s exports slumped 4.4% in May

T

hai exports slipped for a second straight month in May, with the low value attributed to a slowdown in the global economy and low prices for farm products and oil.

The Commerce Ministry said exports fell 4.4 percent year-on-year in May to $17.6 billion, with imports edging up 0.5 percent last month to $16 billion. Thailand had a trade surplus of $1.54 billion in May. The ministry reported that exports of agricultural and agribusiness products shrank by 7.4 percent to $2.75 billion. The drop was led by rice (-24.2 percent), rubber (-9 percent) and sugar (-11.3 percent).

Exports of industrial products dropped 2.8 percent last month to $13.87 billion, mainly because of a fall in shipments of computers and parts, electrical appliances and plastic pellets.

But shipments of automobiles and parts rose by 4.6 percent yearon-year in May, after falling 9.7 percent in April.

Somkiat Triratpan, director of the ministry’s Trade Policy and Strategy Bureau, said shipments to most major markets declined, with China falling 12.7 percent in May, Japan down 8.6 percent and Europe 2.7 percent lower. Exports to the US rose 3.4 percent from a year earlier.

For the first five months, Thai shipments shrank 1.9 percent

$17.6B The value of Thailand’s exports last month

year-on-year to $86.9 billion, while imports totaled $76.5 billion, a fall of 10.3 percent. Thailand had a trade surplus of $10.4 billion for the period.

“The export performance was influenced by slowing global trade and high uncertainty,” Somkiat said. “This affected purchasing power and imports by Thailand’s partners. In addition, the prices of farm products remain low, while oil prices have continued to shrink.”

Despite a 1.9-percent contraction over the first five months, Somkiat said the ministry is maintaining its export growth target of 5 percent this year.

“If shipments average $19 billion to $20 billion a month for the remaining months, we could achieve a 5-percent growth as expected,” he said.

But Somkiat acknowledged that shipments would be subject to contraction if exports continued to average just $17 billion a month.

Isara Vongkusol k it, cha irman of the Thai Chamber of Commerce, said recently that he thought exports would improve in the second half in line with higher oil and farm prices.

Exports are predicted to increase 2.6 percent in the second half, leading shipments for the whole year to bounce back to a 0.8-percent growth after three straight years of declines.

Exports are projected to contract by 2 percent in the first half.

Somkiat said Thai exports to Britain would be somewhat affected over the next couple of months by the country’s withdrawal from the EU, as the departure was expected to drastically weaken the British pound, which would make Thai products more expensive.

He predicted a drop in purchase orders from Britain but said the impact on Thailand would not be severe, as shipments to Britain contribute only 1 percent to 2 percent of Thailand’s total exports.

“More important, Britain is expected to take two to three years to pass through a lengthy exit process,” Somkiat said.

He said the key issue would be how other EU members handle Britain’s exit and if any others choose to follow suit. Another factor is whether the euro will become weaker in line with the pound. TNS

LuLu opens Malaysia mall, hypermarket in Far East push

D

UBAI—The LuLu Group has further consolidated

its retail presence in the Far East by opening the first LuLu shopping mall with a hypermarket in Malaysia.

The 250,000-square-foot hypermarket was inaugurated by Malaysian Prime Minister Najib Razak in the presence of Ahmed Zahid Hamidi, deputy prime minister, minister of agriculture, ambassadors of the United Arab Emirate and High Commission of India and other dignitaries.

The group had recently announced plans to invest $300 million as part of its expansion. It intends to set up 10 hypermarkets in the next five years in Malaysia.

Speaking at the inaugural ceremony, Razak said: “This will pave the way for more international brands to invest in Malaysia. I am hopeful that LuLu will open many more hypermarkets and malls, not only in Kuala Lumpur but also in other parts of Malaysia.”

“With an initial investment of $300 million in the first phase, we plan to open 10 hypermarkets by the end of 2021 and a central logistics and warehousing facility in Malaysia. These projects are likely to generate more than 5,000 job opportunities for Malaysians,” said Yusuffali M.A., chairman of the LuLu Group.

“We also plan to set up contract farming to ensure continuous supply of high-quality products and to

With an initial investment of $300 million in the first phase, we plan to open 10 hypermarkets by the end of 2021 and a central logistics and warehousing facility in Malaysia.”—Yusuffali support the Malaysian agriculture sector,” he added.

He said other hypermarkets would open in Kota Baru (Kelantan), Shah Alam (Selangor), Johar Baru, Bangi, Ipoh (Perak), Malacca, Penang and Kuala Terengganu.

Apart from the 10 hypermarkets that are already planned, Yusuffali also announced the group’s plan to invest another $500 mil-

lion in setting up the largest shopping mall in Malaysia.

During his official visit to the UAE in 2014, Razak had visited the LuLu hypermarket in Abu Dhabi and expressed his desire to have LuLu’s presence in Malaysia. He was impressed by the high standards of operations, quality of products and service, and the variety of products available in LuLu. TNS

A6

The World

Monday, June 27, 2016 • Editor: Lyn Resurreccion

BusinessMirror

news@businessmirror.com.ph

Spain votes again to break stalemate M

The Malta flagged cargo ship named Baroque, a post-Panamax vessel, arrives to the Agua Clara locks on a test of the newly expanded Panama Canal in Agua Clara, Panama, on Friday. The canal’s expansion project was officially inaugurated on Sunday. AP/Moises Castillo

Bullish despite shipping woes

Panama Canal opens $5-B locks

P

ANAMA CITY—Authorities are hosting a big bash on Sunday to inaugurate newly expanded locks that will double the Panama Canal’s capacity in a multibillion-dollar bet on a bright economic future, despite tough times for international shipping.

Nearly two years late due to construction delays and labor strife, the $5.25-billion project formally launches with the transit of a 158foot (48.2-meters) wide, 984-foot (300-meters) long, Chinese-owned container ship, one of the modern class of mega-vessels that will now be able to use the canal.

With 30,000 people and eight foreign heads of state expected to attend the festivities, officials are bullish.

“There is evidence that the Panama Canal, with this expansion, is an important player not only for regional maritime commerce, but worldwide,” said Oscar Bazan, the Panama Canal Authority’s executive vice president for planning and commercial development. “The canal is

a winning bet. [Clients] will benefit from saving not only time but also money, because the canal is a route that shortens distance.”

However, the party comes amid a lull in global shipping due to the drop in oil prices, an economic slowdown in China, which is the canal’s secondlargest customer, and other factors that have hit the waterway’s traffic and income.

While authorities anticipate increasing commerce between Asia and ports on the US East Coast, doubts remain that not all those ports are ready to handle the huge New Panamex-class cargo ships.

Net cargo volume through the canal from the US East Coast toward Asia fell 10.2 percent in 2015, according to official statistics. Mean-

while, the Suez Canal in Egypt recently lowered tariffs by up to 65 percent on large container carriers in an attempt to keep its traffic.

“It’s important to remember that the canal does not create demand.

The canal opens the route. Supply and demand on a world level is what will decide whether the Panama Canal will really bring more volume or not,” said Antonio Dominguez, a general manager for global shipping leader Maersk Line, which moves about 14.2 percent of world commerce. “What is certain is that the current canal has maxed out.”

Maersk was among shipping companies that have reduced passages through the Panama Canal, although Dominguez said the company is considering a return.

Since the canal was handed over from US control at the end of 1999, the waterway has generated about $10 billion in direct income for the Central American nation and is responsible for about 40 percent of its GDP, factoring in related economic activity. Some 35 to 40 vessels transit the waterway each day, and the canal is estimated to handle about 6 percent of world maritime commerce.

Panama began the expansion nearly a decade ago. Originally planned to open in late 2014 around the waterway’s centennial, the new locks can accommodate ships that carry up to three

10.2%

The decrease in percentage of net cargo volume through the canal from the US East Coast toward Asia in 2015 times the cargo of those previously able to use the canal.

Grupo Unidos por el Canal, the Italian- and Spanish-led consortium that spearheaded construction, handed the project over on Friday, although a series of claims are still pending for presumed cost overruns of more than $3 billion.

Paul Bingham, a shipping economist at Boston-based EDR Group, predicted the canal expansion’s global impact would be small.

“The proportion of world trade that could plausibly use the Panama Canal is constrained by the geography of the world’s population, resource endowments and production regions,” Bingham said. “There is very little a larger canal can influence at the margin to induce shifts in the geography of world trade, even through potential reductions in costs of shipping a variety of commodities to, from and within the Americas.” AP

ADRID—Spaniards were heading to the polls on Sunday for an unprecedented repeat election that aims to break six months of political deadlock after a December ballot left the country without an elected government.

Opinion polls in recent weeks have unanimously predicted the new ballot will also fail to deliver enough votes for any one party to take power alone.

That would likely consign Spain to another period of protracted political negotiations—and, possibly, another election, if there is no breakthrough.

Polls are prohibited in the last week of campaigning, but the most recent ones suggested the conservative Popular Party would win most votes but would again fall short of the parliamentary majority it had from 2011 to 2015. Popular Party leader Mariano Rajoy is hoping to be reelected as prime minister.

According to the Spanish Constitution, a government must win a vote of confidence in Parliament with more than 50 percent of the possible 350 votes before taking office. If it misses that target, in a second vote 48 hours later, it must get 50 percent of only the votes that are cast—a lower bar which allows parties to abstain from the vote and let a party into power in return for concessions.

A new round of political negotiations could be complicated by support for a new far-left alliance called Unidos Podemos (United We Can). That group, which includes radical leftist party Podemos and the Communist Party, is expected to finish second. That would push the moderate, center-left Socialist Party, which has traditionally alternated in power with the Popular Party, into third place and the businessfriendly Ciudadanos (Citizens) into fourth.

The election in Spain comes four days after the United Kingdom voted in a referendum to leave the European Union.

Antonio Barroso, a London-based analyst with the Teneo Intelligence political risk consultancy, said it is “unlikely” that decision would have much of an influence on the Spanish election.

“Nevertheless, the ongoing market turmoil fits well with the campaign message of...Rajoy, who has framed the election as a choice between economic stability and a radical left-wing government potentially led by Podemos and its allies,” Barroso wrote in an analysis on Friday.

Polls opened at 9 a.m. (0700 GMT) and were to close at 8 p.m. (1800 GMT) for the country’s roughly 36.5 million voters. Exit polls with projections of the result are expected within minutes of polls closing, and most votes are expected to be counted by 11 p.m. (2100 GMT).

Public anger at high unemployment; cuts in government spending on cherished public services, such as welfare and education; and unrelenting political corruption scandals have shaped the twoweek election campaign.

After the December election, Rajoy couldn’t get enough support from rival parties to form either a minority government or a coalition.

The negotiations between parties dragged on for months, as Pedro Sanchez, leader of the second-placed Socialists, also failed to clinch a deal that would let him govern.

Spain has never had a coalition government.

Pablo Iglesias, the radical college professor leader of Unidos Podemos, has repeatedly said he wants a pact with the Socialists in order to oust Rajoy. But a major sticking point for such a deal is Iglesias’s insistence on letting the powerful northeastern region of Catalonia stage an independence referendum—a possibility rejected outright by all the other main parties.

Ciudadanos is willing to talk to both the Popular Party and the Socialists, but want no deals with Unidos Podemos.

Besides tension over Catalonia, Spanish political debate has been dominated by an unemployment rate that has stood at more than 20 percent for nearly seven years and is the second-highest in the EU after Greece, and an unrelenting stream of corruption scandals, mostly involving the Popular Party and the Socialists. AP

No evidence Orlando gunman was gay–FBI

W

ASHINGTON—Federal Bureau of Investigation (FBI) investigators, so far, have not turned up persuasive evidence that Orlando gunman Omar Mateen was gay or pursuing gay relationships, according to two government officials familiar with the investigation.

The FBI began looking into that possibility after media reports last week quoted men as saying that Mateen had reached out to them on gay dating apps and had frequented the gay nightclub where the June 12 massacre took place.

One man claimed to be Mateen’s gay lover in an interview with Univision that aired this week, while another recalled Mateen as a regular at the Pulse club who tried

to pick up men.

But the officials say the FBI, which has conducted about 500 interviews and is reviewing evidence collected from Mateen’s phone, has not found concrete evidence to corroborate such accounts nearly two weeks into the investigation. They also cautioned that the investigation is ongoing and that nothing has formally been ruled out.

The officials were not authorized to discuss an ongoing investigation by name and spoke on condition of anonymity.

Law-enforcement officials have said there is no doubt that Mateen was radicalized at some point before the Pulse nightclub attack, though there is no evidence that he was directed by any foreign terror groups. AP

Germany and France struggle to hold E.U. amid Brexit storm W ithin hours of Britain’s vote to leave the European Union (EU), nationalist parties across the bloc were clamoring for their own exit referendums, including in France, one half of the two-nation engine that has driven the EU project since its beginnings as a lowly coal and steel union in 1951.

That laid bare the challenge facing German Chancellor Angela Merkel and French President François Hollande as they try to hold the rest of the 27 nations of the EU together, as for the first time a full member has decided it would be better off alone.

Calling the vote a “watershed” for Europe, Merkel said the bloc “is strong enough to find the right answers.”

Hollande described Brexit as a severe test that would force Europe’s leaders “to take a clear look at the ineffectiveness of the EU and people’s loss of confidence in the European project.”

Merkel didn’t spell out the answers she has in mind. The union’s six founding members—Belgium,

France, Germany, Italy, Luxembourg and the Netherlands—met on Saturday in Berlin to plan a response, and Merkel invited the French and Italian leaders to Berlin for further talks early this week.

The actual process of extricating the United Kingdom from the bloc is expected to take two years or more.

If history is a guide, resetting the EU so it responds more directly to its citizens will be a struggle.

Beset even before Friday’s result with internal tensions over the debt problems of weaker members and the flood of refugees reaching its shores, the EU’s core members have little political capital left to craft a compelling vision to inspire the remaining EU countries.

Hollande’s political support is weakening and Merkel, still the bloc’s dominant leader, faces difficult elections next year.

‘Friend’s funeral’

Even if the UK in the end is the only nation to exit, the EU it leaves will be diminished, less ambitious and restricted as hopes of transforming centuries of fractious Eu-

ropean history fade.

“I felt as though I was at a friend’s funeral,” Latvian former President Vaira Vike-Freiberga said in an interview after the vote. “This is no longer the EU that we joined.”

The lesson of the Brexit vote is that EU policy-makers should focus on the crises for which “people want answers,” such as Europe’s flood of refugees, youth unemployment in southern Europe and national security, German Foreign Minister Frank-Walter Steinmeier said on Saturday.

“We don’t have a full set of answers on the table,” Steinmeier told reporters before meeting his five colleagues in Berlin. “We have to listen to each other and test the amount of expectations and leeway that the various member states have.”

Populist danger

For now at least, the EU will probably survive in its current form minus the UK, said Charles Grant, director of the Center for European Reform in London and a veteran EU analyst.

He noted that, while opinion polls

suggest hostility to the EU is rising across the bloc, they also indicate that in no other country would a majority currently vote to leave.

But EU unity will be more vulnerable to political or economic shocks, which could trigger pressure to leave in those countries that have the strongest protest parties on the left or right, such as Italy, he said.

“The danger of populism and extremism is huge,” Hollande said on Friday.

If the alarm that wiped several hundred billion dollars off the value of assets in the UK and the rest of Europe on Friday spreads into economies around the region, the political challenge for the EU could deepen.

Already weak governments would be forced to focus on domestic issues, including fighting off challenges from populist and antiEU parties, according to Jan Techau, director of the European center of the Carnegie Endowment for International Peace in Brussels.

The pound lost 8.3 percent of its value against the dollar on Friday,

falling to the lowest levels since 1985. Europe’s Stoxx 600 index dropped 7 percent, while the S&P 500 index in the US closed 3.6 percent lower.

Hopes for even-closer political and economic ties, as well as expansion to new members in the east, looked ambitious even before the British vote and are now probably unrealistic.

“Integration will be off the agenda, that’s for the birds,” Grant said, not least because securing unanimity for any treaty change looks impossible for the foreseeable future. Already in the leadup to the British vote, European Council President Donald Tusk had been saying the EU had to abandon its “utopian dreams.”

Battered Brussels

Moreover, Grant said, power is now likely to slip away from the bloc’s centralized bureaucracy in Brussels, as national governments assert more control. “I think the Commission’s glory days are over.”

Merkel and Hollande will need to be particularly careful in balancing

the negotiations with the UK over its departure, according to Grant.

Make the British exit too painless, and countries, such as Sweden, will be tempted to follow; too punishing and it will damage the EU economy further, as well as Britain’s.

Most important, though, will be to counter increasingly negative public views of the EU by demonstrating that it can, as Merkel put it on Friday, “make a contribution to citizens’ lives.”

The most viable way of doing that would be to secure a decisive package of proposals to deal with the flow of refugees, who will be demanding entry to the EU for years to come, according to Techau.

“This is the thing that fueled and emotionalized the Brexit debate in an almost unspeakable way,” Techau said, adding that the issues involved—stronger borders, better security cooperation, a common procedure for managing applications for asylum and cutting deals with the source countries—don’t require treaty changes, which could trigger more referendums. “It’s item No. 1 on the list.” Bloomberg News

news@businessmirror.com.ph

The World BusinessMirror

Monday, June 27, 2016

A7

Can Brexit be overturned? Brits call for 2nd vote

B

ritain is coming to terms with its decision to leave the European Union (EU) after Thursday’s dramatic referendum.

Here are some of the questions that are doing the rounds in the United Kingdom this weekend:

A demonstrator wrapped in the European Union (EU) flag takes part in a protest in London on Saturday, opposing Britain’s exit from the EU in Parliament Square following Thursday’s EU referendum result. Britain voted to leave the EU after a bitterly divisive referendum campaign. AP/Tim Ireland

Can the referendum result somehow be overturned?

Possible, but unlikely. It’s true that the referendum is nonbinding and the UK’s next prime minister is under no legal compulsion to act on the result. And a new premier could, in theory, go back to the EU and ask to negotiate a new deal before taking it back for a second vote.

But this option has been ruled out by the EU’s other leaders. Most important, it would be extremely difficult to ignore the views of the 17.4 million people who voted to leave.

What about this petition calling for a second referendum?

A record 1.6 million people have signed a petition on Parliament’s web site calling for a second vote. However, there is no mechanism in the UK for the public to trigger a referendum—the most that a petition can achieve is a debate among lawmakers. There are a few other problems.

The petition demands the government annul the plebiscite if either side wins by less than 60 percent, or if turnout is less than 75 percent.

But the referendum has already taken place. And all the country’s leading politicians have pledged to recognize the result. So this probably won’t go very far.

Could the EU make the UK an offer that prompts a rethink?

Unlikely. So far all the indications are that Berlin, Paris and Brussels want a quick separation. “It’s not an amicable divorce, but it never really was a close love affair anyway,” EU Commission President Jean-Claude Juncker said.

When will the UK formally leave the EU? Not for some time. First, the UK needs to trigger Article 50 of the Lisbon Treaty, putting in place a two-year timeline for formal talks.

However, Prime Minister David Cameron has said that’s a task for his successor, who won’t be in place for, perhaps, three months. And Boris Johnson, the favorite to take over, indicated on Friday that there is no rush to formally start negotiations. So it seems unlikely that the UK will leave before late 2018 at the earliest.

Can the EU force the UK to trigger Article 50?

No. Only the UK can do that. That leaves a certain amount of negotiating power with Britain for now. Once the mechanism is triggered, though, the advantage switches back to the other 27 countries. So the timing of Article 50 is quite crucial.

How does the Tory leadership battle work?

Cameron said he wants his successor to be in place by early October.

Assuming Conservative Party grandees decide to use the same system followed for Cameron’s election in 2005, 330 lawmakers will screen the field of candidates and whittle them down to two by July 21, when the House of Commons goes into recess for the summer. Party members will then choose the winner.

Who are the favorites?

Johnson is in front of the pack, according to bookmaker William Hill Plc., with odds of 8/11, giving him a 58-percent chance of winning.

Theresa May, who wanted to stay in the EU, is next at 5/2, give her a probability of 29 percent, while Michael Gove, a leading Brexit campaigner, is at 10/1, giving him a 9-percent chance.

So is it a done deal for Johnson?

Not necessarily, says Alan Duncan, a Conservative lawmaker. While Johnson is charismatic and probably the most recognized politician in Britain, he is also erratic. That may not appeal to Conservative Party members traumatized by a bitter referendum campaign. “A lot of them don’t necessarily want a permanent ride on the Big Dipper,” Duncan told BBC Radio on Saturday.

Will there be a snap election?

Jonathan Powell, Tony Blair’s former chief of staff, says any new prime minister will need a mandate from the electorate before exit talks begin. “What sort of new relationship are we going to have with the EU?” Powell said in an interview with the BBC on Friday. “Are we going to be Norway? Are we going to be Canada? Who are we going to be?”

Still, dissolving Parliament is not as easy as it used to be.

Since 2010, the UK has had fixed-term legislatures, and the next vote isn’t due until May 2020. But there are two circumstances in which there could be an early election. First, if two-thirds of the House of Commons vote for one; and second, if a government loses a no-confidence vote and a new administration fails to win a confidence motion within 14 days.

Either of these could be engineered: The Conservatives have a majority, so it can prevent any other administration forming, and it might be difficult for the main opposition Labour Party to argue against an election.Bloomberg News

Pope urges closer unity with Armenian church

Y

EREVAN, Armenia—Pope Francis called on Sunday for closer ties with Armenia’s Orthodox church as he wrapped up his three-day visit with a liturgy and visit to the country’s closed border with Turkey amid new tensions with Ankara over his recognition of the 1915 “genocide.”

Turkey issued a harsh rebuttal late on Saturday to Francis’s declaration that the slaughter of Armenians by Ottoman Turks a century ago was planned genocide.

Turkish Deputy Prime Minister Nurettin Canikli called the comments “greatly unfortunate” and said they bore the hallmarks of the “mentality of the Crusades.”

Turkey rejects the term genocide, saying the 1.5 million deaths cited by historians is an inflated figure and that people died on both sides as the Ottoman Empire collapsed amid World War I. When Francis first used it last year, Turkey recalled its ambassador for 10 months and accused the pope of spreading lies.

On Sunday Francis turned his attention to more religious affairs, participating in an open-air liturgy at the Armenian Apostolic Cathedral in Etchmiadzin, the seat of the Oriental Orthodox church here. The landlocked nation of 3 million was the first country in the world to adopt Christianity as a state religion in 301. AP

A8

The World BusinessMirror

Monday, June 27, 2016

www.businessmirror.com.ph

Trump, Clinton struggle with unfavorable views

W

Bridgeport, West Virginia, firefighters Steve Gallo (left) and Ryan Moran (center) are joined by an unidentified coworker as they walk through a flooded street while searching homes in Rainelle, West Virginia, on Saturday. Heavy rains that pummeled West Virginia left multiple people dead, and authorities said an unknown number of people in the hardest-hit county remained unaccounted for. AP/Steve Helber

24 dead in W. Virginia floods; death toll rises in California fires

C

LENDENIN, West Virginia— Surrounded by muddy devastation, Cathy Light and her husband Chris thought it was “heaven sent” they had free burgers to munch on in a Clendenin parking lot on Saturday.

To their left, the roof of a Dairy Queen slumped to the pavement.

Behind it, a trailer home was ripped from its foundation, with four concrete stairs all that remained in the ground. Occasional whiffs of rotten food wafted from a nearby grocery store that, not long ago, was filled with 5 feet of muck water.

Before they jumped in a rescue boat in Clendenin on Saturday, the Lights could only save their dog Odie and a TV that sat atop a bedroom dresser—the highestup they stored anything in their house, really.

The heavy rains that pummeled West Virginia resulted in at least 24 deaths, leaving families homeless with the tearful realization that they’re starting from scratch.

“I don’t have anything,” said Cathy Light, as she ate the free meal provided by Grace Community Church. “Where do we go now?”

T he scene in Clendenin, loc ated i n K a n awh a Cou nt y, wasn’t as dead ly as in R ainel le.

Si xteen people died in Greenbrier County, at least 15 of them in R aniel le. Greenbr ier is the only count y where Gov. Earl R ay Tomblin’s administration believes people remain missing. “It does not appear there are unaccounted-for people in other counties, but it’s still a somewhat f luid situation,” said

150 The number of homes burned by the wildfire in central California that has also claimed two lives

C h r i s St a d e l m a n , Tom bl i n’s chief of staff. Rainelle Mayor Andrea “Andy” Pendleton wept as she surveyed her town on Saturday.

“I weep for my people, I weep for the businesses,” she said.

About six buses full of people whose homes were either without power or too damaged to inhabit were evacuated. Some were taken initially to a fire department facility, but then it flooded so they were moved to an abandoned store. When that started to flood, buses took the evacuees to a church 40 miles away.

Search and rescue teams went house to house, marking those checked with a spray-painted “X.” Abandoned pets were taken to a shelter. A water department filtration system, built with a $2.6-million loan, was damaged, Pendleton said. Help came from

multiple sources, including two search and rescue teams from Virginia. Six other deaths were reported in Kanawha, in addition to one each in Jackson and Ohio counties. About 500 people were stranded overnight in a shopping center when a bridge washed out, and dozens of other people had to be plucked off rooftops or rescued from their cars. A gravel access road was built to let them out.

On Saturday Tomblin was approved for a major federal disaster declaration to get help for Greenbrier and the two other counties hardest-hit by flooding. Tomblin’s office said he made an expedited verbal request on Saturday to the Federal Emergency Management Agency for individual assistance for K anawha, Greenbrier and Nicholas counties. Indiv idual assistance includes housing and crisis counseling.

Some of the heaviest rainfall was in Greenbrier County, where The Greenbrier lu xur y resort and golf course is nestled in the mounta ins. T he Professiona l Golfer’s Association (PGA) Tour has canceled a tournament there from July 4 to 10 because the course is overrun by floodwaters.

“Canceling T he Greenbr ier Classic is certainly the most prudent course of action as our foremost concern is the well-being of those who are having to live through this tragic situation,” PGA Tour Commissioner Tim Finchem said in a news release on Saturday. “Our thoughts and prayers are with them.”

California wildfire

Lighter winds are helping firefighters make gains on a voracious and deadly wildfire in central California that has burned 150 homes and claimed two lives. The toll may rise.

Firefighters may have found huma n rema ins on Sat urd ay when they began going through neighborhoods to count houses and mobile homes incinerated by the blaze. In an unrecognizable mobile home, they found what appears to be a set of human remains, but because they were so badly burned forensic investigators will have to determine whether they belonged to a person or animal, Kern County Sheriff Spokesman Ray Pruitt said.

The tally of burned homes rose from 80. Entire blocks were reduced to rubble, and at least 2,500 homes remained threatened.

Meanwhile, the winds that drove the fire through small southern Sierra Nevada communities eased by late afternoon, helping firefighters contain 10 percent of the blaze. “Our crews are feeling pretty good,” said Joe Reyes, an operations chief for the fire. “If the winds don’t act up drastically, we are hoping to make headway in the next 24 hours.”

About 1,700 firefighters battled the flames.

Gov. Jerry Brown declared a state of emergency, freeing up money and resources to fight the fire and to clean up in the aftermath. The Federal Emergency Management Agency also authorized the use of funds for firefighting efforts, fire officials said Since it began on Thursday, the fire has swept through 36,810 ac res — 57- a nd- a-h a l f squ a re miles—of parched brush and timber. It moved so quickly that some residents barely had time to escape—and two didn’t. An elderly couple apparently was overcome by smoke as they tried to flee, county Sheriff Donny Youngblood said. Their bodies were found on Friday, but their names haven’t been released. AP

At gay-pride parades, a year to weave sorrow, celebration

N

EW YORK—A year after New York City’s jubilant pride parade celebrated a high point for gay Americans with the nationwide legalization of same-sex marriage, the atmosphere surrounding the annual march couldn’t be more different.

Sunday’s parades in New York, San Francisco and other cities are unfolding two weeks after a gay nightclub in Florida became the site of the nation’s deadliest mass shooting by a single gunman in modern US history.

Celebrations planned around such themes as supporting transgender people and pressing for economic justice have quickly taken on new meanings. Parade-goers will see increased security, antiviolence messages and tributes to

those killed in Orlando.

But organizers don’t want the massacre to stamp out the defiant exuberance of events rooted in declaring that gay people aren’t afraid to be seen and heard.

“Last year was such a celebratory time, and this year, we have this happening,” says James Fallarino, a spokesman for organizers of the New York parade, one of the nation’s oldest. “But that’s also why it’s so important that we are out and loud and proud. “If we change our event—if we make everything somber—it’s, in many ways, allowing those who wish to silence us to win.”

Sunday’s parades do have a new milestone to mark: President Barack Obama on Friday designated the site around New York

City’s Stonewall Inn as the first national monument to gay rights.

A 1969 police raid on the bar helped catalyze the gay-rights movement.

To be sure, the often raucous marches will be tempered with messages of respect and grief for the 49 people massacred and more than 50 wounded in Orlando.

In New York the lead f loat will be dedicated to the victims.

Marchers will carry 49 orange f lags—the color of choice for c a mpa ig n s a g a i n st g u n v io lence—through the route. A “We Are Orlando” solidarity group has been added to the lineup. And gun-control, anti-gun-violence groups have joined the lineup since the shooting forged new bonds between them and gayrights activists.

“As the mom of a gay teen, Orlando terrified me,” says Shannon Watts, the founder of Moms Demand Action for Gun Sense in America. She and 19-year-old daughter Emma, who is gay, plan to join about 200 other people behind the group’s banner in the parade.

It’s “such an important way for these two communities to come together,” said Watts, whose group also has members joining other parades.

At San Francisco’s parade, also among the country’s oldest, a “We’re Orlando” group of about 300 people will be fourth in the lineup. Victims will be honored with a moment of silence when the march reaches the grandstand. A memorial with their photos will be set up inside City Hall. AP

hen it comes to policy and their visions for America, Donald Trump and Hillary Clinton offer stark contrasts.

Ye t , w i t h l e s s t h a n f i v e months until election day, both are f inding some commona lity in an area that’s not ideal: T hey’re not wel l-li ked. More than candidates in past elections, Trump and Clinton are struggling to make voters like them, and polls suggest they’re having little success.

In a series of surveys released last week, Clinton and Trump amassed unfavorable numbers that hovered above 50 percent.

A CNN/ORC survey showed 60 percent said they had an unfavorable view of Trump, compared with 56 percent for Clinton.

Meanwhile, a national poll from Monmouth University had Clinton’s unfavorable numbers at 52 percent and Trump’s at 57 percent, while a Rasmussen poll

had both hovering around 60 percent dislike among voters.

Trump’s inflammatory rhetoric about, among others, Mexicans and Muslims, and questions surrounding Clinton’s use of a personal e-mail account while overseeing the State Department, elicit negative views from voters, surveys have shown.

Moreover, the strong negative views of Trump and Clinton have created fodder for third-party candidates.

“We’ve been in a race to the bottom between the lesser and the greater evil, and all those things that we were told we should vote against,” Green Party candidate Jill Stein said on Saturday during an interview on CNN. Libertarian Gary Johnson said this week he has no plans to jump into the fray. “Really, stick to the issues, stick to issues that are facing this country,” he said during a town hall. “There are plenty.”

Los Angeles Times/TNS

Kuwait mosque hit by IS suicide bomb reopens

Kuwaitis queue at the Grand Mosque on June 28, 2015, to pay their respects and condolences to the families of victims of a terrorist attack claimed by the Islamic State group on the Shiite Imam Sadiq Mosque in Kuwait City during Friday prayers. AP

K

UWAIT CITY—The wood paneling bearing Koranic verses gleams inside the Imam Sadiq Mosque and the carpeting is soft underfoot for worshippers who come to pray in what is one of Kuwait’s oldest Shiite mosques— and the site of the country’s worst militant attack in modern history.

It’s been a year since an Islamic State (IS) suicide attacker, his explosives’ vest hidden under traditional male white robes, interrupted prayers to shout “God is Great” in Arabic before blowing himself up. He killed at least 27 people and wounded 227 in a day of violence during the Muslim holy month of Ramadan, a day that also saw shootings on a Tunisian beach resort and an attack on a US-owned factory in France.

The IS group later claimed responsibility for the Kuwait bombing, along with the attack in Tunisia.

Since that day of carnage, Kuwait has rebuilt the mosque and f looded billboards and social media with calls for unity in this small nation of 3 million people.

But regional tensions between Sunni and Shiite Muslims still ripple through Kuwait, as fears about possible further attacks

by IS linger.

“Kuwait is certainly not immune to the sectarian tension in the area,” Kuwait University political science professor Shafeeq Ghabra said. “Sectarianism is one symptom of so many issues.”

T he I m a m S ad iq Mosque, named after a historically revered Shiite figure, is tucked into the capital’s al-Sawabir neighborhood on a street of boutique restaurants popular with the oilrich emirate’s chic socialites. It survived Iraq’s 1990 invasion of Kuwait and the expulsion of Saddam Hussein’s troops by US-led forces the following year.

A l l that changed w ith the June 26, 2015, suicide bombing that struck as worshippers stood shoulder-to-shoulder in group prayer. The powerful explosion tore into the mosque’s ceiling, spread blood across its floors and sent debris flying.

Minutes after the attack, Kuwait’s elderly ruler Sheikh Sabah Al Ahmad Al Sabah stood at the site, surrounded by the crowds and ignoring the advice of his security forces to leave.

“Those are my sons,” he said, speaking of the victims, local media reported at the time.

Sheikh Sabah’s comments and presence carried much power in Kuwait, a predominantly Sunni Arab nation where at least a third of the population is believed to be Shiite—mostly descendants of Persian merchants, seafarers and craftsmen who moved to the Gulf emirate before its establishment.

Shiites now also hold key positions in Kuwait’s government and freely elected parliament.

Kholoud al-Feeli, who lost her uncle in the attack, said the Sunni ruler’s reaction showed that he views everyone as an equal.

“Kuwaitis have always been open toward other beliefs and differences,” she said. “We are a melting-pot nation, with many people of Levantine, Persian, Egyptian and even Indian ties, if not by blood then by marriage.”

Sheikh Sabah paid for nearly all the renovations needed at the mosque, which reopened this month after a remembrance ceremony for those lost.

“The one-year remembrance service held at the mosque is a great example of how Kuwait’s unity and solidarity is unquestionable in times of crises,” said Abdulnabi alAttar, a supervisor at the mosque and member of its board. AP

The World BusinessMirror

www.businessmirror.com.ph

Trump’s plan to ban Muslims focused on ‘terrorist countries’

P

resumptive Republican presidential nominee Donald Trump said on Saturday that he wouldn’t characterize his immigration policies as including “mass deportations,” and that rather than a blanket ban on Muslims coming to the United States he’d focus on those from countries with links to terrorists.

Trump, in an interview at his golf course in Aberdeenshire, Scotland, also said he would toss out the work done over several years on the Trans-Pacific Partnership (TPP), a sweeping trade pact, and start from scratch.

The billionaire-turned-politician said his immigration policies would have “heart,” suggesting he may be shifting tone to transition into general-election mode after the bruising primary season.

“President [Barrack] Obama has mass deported vast numbers of people—the most ever, and it’s never reported. I think people are going to find that I have not only the best policies, but I will have the biggest heart of anybody,” Trump said.

Pressed on whether he would issue mass deportations, Trump answered: “No, I would not call it mass deportations.”

‘Bad dudes’

In Trump’s immigration plan, released in 2015, the US will build a wall along its border with Mexico and make Mexico pay for the structure by, in part, impounding certain remittance payments. Trump has also said he would deport all undocumented immigrants, a number estimated at 11 million.

Trump, 70, continued eating fish and chips at his golf course’s clubhouse before adding: “We are going to get rid of a lot of bad dudes who are here,” he said. “That I can tell you.”

Earlier on Saturday, Trump told reporters that he’d seek to restrict people from unspecified “terrorist countries” from entering the US. It marked a shift from a news release on December 7 saying that, if elected, Trump wanted “a total and complete shutdown of Muslims entering the United States.”

1.6B There were an estimated 1.6 billion Muslims in the world as of 2010, or about 23 percent of the world’s population, according to the Pew Research Center.

“I want terrorists out. I want people that have bad thoughts out. I would limit specific terrorist countries and we know who those terrorist countries are,” Trump said.

Trump didn’t specify which countries might be included. Although the jihadist group Islamic State (IS) has occupied swathes of Iraq and Syria, Europe has also been rocked by terror attacks orchestrated by citizens of France and Belgium, who were the sons of immigrants from the Middle East and North Africa.

The gunman in the Orlando, Florida, massacre this month was the New York-born son of immigrants from Afghanistan, while the perpetrator of a mass shooting in San Bernardino, California, last December was a US citizen of Pakistani descent, and his wife was a Pakistani-born lawful resident.

On the TPP, the trade agreement signed this year by 12 Pacific Rim countries, Trump said he would prefer bilateral talks.

‘So complicated’

“I like the idea of making deals with individual countries. They

U.S. presumptive presidential candidate Donald Trump points as he chats with the media after he arrived at the Trump International Golf Links at Balmedie near Aberdeen, Scotland, on Saturday. Trump is on a short break away from his presidential campaign. Andrew Milligan/PA via AP

put in these vast number of countries and it gets so complicated and it’s more than 6,000 pages,” Trump said.

Trump hammered Obama for his work in negotiating the TPP, an agreement seven years in the making. When asked if he would renegotiate the whole deal, Trump answered: “Yes.” His comments differed from Obama’s interview with Bloomberg Businessweek published earlier this week. Obama suggested that Trump was resorting to “nativism and nostalgia and the sense that these are things that are now out of control.” “ T h e m a j o r it y o f p e o p l e , whether in the United States, in Europe, or cer tainly in rapid ly advancing par ts of the world, like A sia—those folks recognize that the world has shrunk, and that if the r u les are str uctured properly, this gives them more oppor tunit y, not less, to succeed,” Obama said.

Golf-course tour

Trump, in a suit and opennecked shirt, spent part of the final day of his first overseas trip as presumptive nominee giving more than 100 journalists a tour of his luxury golf property on Scotland ’s northeast coast, about 219 kilometers north of Edinburgh. Greens fees at the Trump International course go as high as £215 ($294).

Only about a dozen protesters turned out for Trump. They included Michael Forbes, who displayed a Mexican flag on his house adjacent to the links. Forbes sparred with Trump several years ago by refusing to sell his home on the tract of land Trump transformed into a golf course.

Trump compared his dissenting neighbors to the crowded field of Republican presidential candidates this year. “I have one or two that are a little contentious, which is fine because they lost. It’s like some of the people I beat in the

primaries—they’re not exactly in love with me,” Trump said.

Murdoch meeting

T he c a n d i d at e d o w n p l a y e d financial-market volatility in the wake of Thursday’s vote by the United Kingdom to leave the European Union. “ There’s always turmoil,” he said, and criticized Democrat Hillary Clinton for having been “100-percent wrong” on Brexit.

Before f lying back to the US late on Saturday, Trump met w ith billionaire Rupert Murdoch, founder and cochairman of News Cor p. Before the meeting , he hudd led w it h fa mi ly members and political advisers in the clubhouse.

At Trump’s dining table was Steven Mnuchin, his campaign’s national finance chairman; press secretary Hope Hicks, one of his eight grandchildren; daughter-inlaw Vanessa Trump; and his eldest son Donald Jr. Bloomberg News

Hundreds of Syrian Kurds flee IS-held areas B

E I R U T— H u n d r e d s o f Kurds fleeing Islamic State (IS)-held villages in northern Syria amid a wave of mass abductions have come under fire, with several killed or wounded, opposition activists and a Kurdish official said on Saturday.

In eastern Syria, meanwhile, air str i kes on a v i l lage controlled by the extremist group have killed at least 30 people and wounded many others, opposition activ ists said.

A c t iv i st O m a r A bu L e i l a , who is from the eastern city of Deir el-Zour but currently lives in Europe, said Saturday’s air strikes targeted a mosque in the village of Qourieh, killing at least 30 people.

T he B r it a i n - b a s e d Sy r i a n Obser vator y for Human R ights said 46 people were killed in Qourieh, including children. It says 31 of the dead were civ ilians and the rest have not been identified yet.

Abu Leila said the air strikes were carried out by Russian warplanes. Russia has denied targeting civilians.

Qourieh is in the province of Deir el-Zour, which borders Iraq.

Most of the province is ruled by the extremist group.

In t he nor t her n prov ince of A leppo t he hundreds of Kurds f led as t he Sy r ian Democratic Forces (SDF), a US -bac ked and p re d o m i n a nt l y K u rd i s h m i l it i a, c l a shed w it h IS i nside Ma nbij, a key st ronghold of t he e x tremist g roup.

The SDF have pushed into the town from the southern edge, capturing grain silos and flour mills, according to the Observatory. One family who fled was struck by a mine on Friday that killed two family members and wounded the other three, Sherfan Darwish, an SDF spokesman, told The Associated Press. He said a 10-year-old girl was killed by IS sniper fire on Friday.

A9

briefs

14 killed in Somalia hotel attack

MOGADISHU, Somalia—Gunmen stormed a hotel in Somalia’s seaside capital on Saturday, taking guests hostage and “shooting at everyone they could see,” before security forces pursued the grenade-throwing assailants to the top floor and ended the hours-long assault, the police and witnesses said. At least 14 people were killed.

Islamic extremist group al-Shabab claimed responsibility for the latest in a series of hotel attacks in Mogadishu, one that began with a powerful explosion at the entry gate.“We have finally ended the siege. The last remaining militants were killed on the top floor,” Police Capt. Mohamed Hussein said, after security forces cornered the gunmen, who had set up sniper posts on the roof of the NasaHablod hotel. The police said at least four gunmen were involved in the attack, and two were killed. AP

Iranian forces clash with Kurdish separatists

The estimated number of Muslims in the world as of 2010

‘Specific’ countries

Monday, June 27, 2016

“Civilians are defying death in order to leave areas controlled by Daesh,” Darwish said, using an Arabic acronym for IS. T he exodus began after IS abducted about 900 Kurdish civilians in A leppo province over the past three weeks and forced them to build fortifications for the extremists in retaliation for the Kurdish-led assault, which is also targeting the IS stronghold of a l-Bab. Ot hers were tr y ing to f lee Manbij, which is surrounded by SDF fighters.

Some of the abducted Kurds have been pressganged into digging trenches and shelters for IS, according to Observatory chief R ami Abdurrahman. Dar wish said others are being used as human shields.

Abdurrahman said some 120 more Kurds have been abducted since Friday. The extremists have warned residents who leave that they will not be allowed to return to their homes and “will be

punished if they try to return,” he said.

He added that many of those fleeing are heading to areas that were recently captured by the SDF south of the IS-held town of Marea. Abdurrahman said IS fighters opened fire on those fleeing, killing several of them, including children.

The Local Coordination Committees, another activ ist-run monitoring group, said IS opened fire at people trying to flee from Manbij, killing 10 of them, including children.

The Syria Democratic Council (SDC), the political wing of SDF, called on the international community and aid groups to supply those fleeing with whatever they need, saying many of them are in open areas.

T he SDC ca l led on t he world to help t he SDF “prevent t he occ u r rence of a c at a st rophe or a massacre,” say ing t here were “ ind ications” one might

happen. T he SDF a lso inc ludes A rab and Chr istian forces.

Manbij lies a long t he on ly IS supply line bet ween t he Sy r ian-Turk ish border to the north and the extremist group’s selfst yled capit a l, R aqqa, whic h lies to t he sout heast.

If Manbij is captured, it would be the biggest strategic defeat for IS in Syria since July 2015, when the extremist group lost the border town of Tal Abyad.

The US has embedded 300 special forces with the SDF. The White House says they are advisers. French special forces are also embedded with the group.

In neighboring Turkey, Syrian opposition cameraman K halid A lEissa died late on Friday in a hospital, where he was brought for t reat ment, a f ter bei ng wounded in an explosion last week in the northern Syrian city of A leppo, according to several activist groups, including the Observatory. AP

TEHRAN, Iran—Iran’s state-run news agency is reporting that security forces have clashed with Kurdish separatist militants, who infiltrated a northwestern village to stage “terrorist and propagandist operations.” The Saturday report

by Irna quotes an unnamed official from Iran’s Revolutionary Guard Corps as saying the clashes happened on Friday in the Mahabad County of West Azerbaijan province. The report did not mention if there were casualties.

On June 16 Iran’s Revolutionary Guard battled armed members of an insurgent Kurdish group in West Azerbaijan province, which is near its border with Iraq and Turkey. Both sides gave conflicting death tolls from the fighting, as the Guard said it killed 12 insurgents, while three of its members died.

The Democratic Party of Iranian Kurdistan said Kurds killed over 12 Guard members, including a colonel. AP

Car bomb near Benghazi hospital kills 5

BENGHAZI, Libya—A car bomb has gone off outside a hospital in the eastern Libyan city of Benghazi, killing five people and wounding 14, security and hospital officials said. Senior military official Brig. Gen. AbdulSalam al-Hassi blamed the late Friday attack outside the Jalaa hospital on Islamic militants.

Mohammed al-Zawy, an official at the hospital, confirmed that five people were killed and 14 wounded in the blast. He said the explosives-laden car was parked near the hospital’s outpatient entrance door. Friday’s attack was a grim reminder of the wave of car bombings and assassinations that wracked Benghazi after the nation’s 2011 civil war and the chaos and bloodletting that followed. Some 200 people were killed during the violence in Benghazi in 2012 alone. AP

Somali detained in Italy in migrant-trafficking probe

ROME—Italian police say they have detained a Somali man in Rome who is suspected of belonging to a migrant-trafficking ring bringing non-European Union citizens into Italy and other European countries.

Antiterrorism prosecutors, based in the northern town of Brescia, requested the man’s detention, alleging he supplied false documents to various people.

Among them were two Syrians arrested last year at the airport of the northern town of Bergamo on suspicion they were close to the Islamic State group. The men had planned to board a flight to Malta. Without giving details, the police said on Saturday the Somali man was detained on suspicion he aided clandestine immigration and also helped persons involved in terrorist associations. AP

Tourism&Entertainment BusinessMirror

A10 Monday, June 27, 2016

Editor: Carla Mortel-Baricaua

Sarangani Bay parties for Mother Earth

F

or the past decade, tens of thousands of party people from all over the archipelago have been trooping to southern Mindanao for the Sarangani Bay (SarBay) Festival, the country’s biggest beach party.

Just like the bay’s mouthwatering tuna, which have found their way to the world’s plate, this long stretch of white sand in Gumasa Beach in Glan sizzled once more in the event’s 11th installment, but with a unique twist.

Themed #SarbayEvolution, this year’s version celebrated the innovations it has embraced through the years, most notably its advocacy for environmental sustainability.

According to Sarangani First Lady and Provincial Tourism Council President Michelle Lopez-Solon, this year’s edition was more than the usual beach party that, more often than not, harms the coastal ecosystem. She said the third day of SarBay was devoted to coastal cleanup activities and environmental projects.

Five civic organizations joined the I Love Clean SarBay program this year to help maintain the ecological balance of the bay’s coastal ecosystem.

Some 100,000 bangus (milkfish) fingerlings were released at the bay after the two-day fest, in coopera-

DJ Lunatics at Sarbay Evolution

Fingerlings released at Sarangani Bay

tion with Spectrum, Conrado-Ladislawa-Alcantara Foundation Inc. and Smart Communications.

Still part of this year’s environmental advocacy is the e-trash bag given as part of the environmental fee given upon entrance. Every kilogram of gathered garbage submitted by every person has an equivalent token given by SarBay corporate partners Globe, Talk N’ Text, 2Go and Coca-Cola.

Once a best-kept tourist secret, Gumasa has become one of the country’s most sought-after getaways because of its unspoiled talcum sand, minus the madding crowd of popular beaches.

The two-day beach party included physical-fitness events, sporting tournaments and concerts.

As the Best Tourism event awardee from the Association of Tourism Officers in the Philippines for several years now, the SarBay fest is organized by the Provincial Tourism Council, and supported by the provincial government, the Department of Tourism Region 12 and the municipality of Glan.

Across the Bay 2016

SarBay Fest cleanup

T

he country’s tourism campaign, “It’s More Fun in the Philippines,” is a big success. But the private sector in the industry is asking, “What’s next?” as they expect the full support of the incoming administration.

Philippine Tour Operators Association (Philtoa) members gathered on June 8 for the third General Membership Meeting at the Nobu Hotel, City of Dreams, to discuss the future of Philippine tourism.

Philtoa President Cesar Cruz led the meeting between its members and other tourism stakeholders, represented by the Hotel Sales and Marketing Association International, Philippine Airlines, Philippine Travel Agencies Association, Philippines Association of Convention/Exhibition Organizers and Suppliers Inc., Management Association of the Philippines and the Department of Tourism (DOT).

One of the highlights of the meeting was the public presentation of the Tourism Agenda for the First 100 Days of the New Government by MAP’s Alma Jimenez, which discussed in length a list of policy matters to be taken up with the new administration.

According to Jimenez, the plan will focus on three major areas: “implementation of needed infrastructure development; foster Philippine competitiveness in the global market; and boost inbound and domestic tourism.”

In consultation with the private and

Members gather for the 3rd General Membership meeting

PHILTOA vows to continue supporting the growing tourism industry public sectors, the integrated plan hopes to “harmonize infrastructure, tourism attractions and business environment, and enhance the coordination of all tourism sectors,” Jimenez added.

Jimenez is confident that the incoming administration will give the same full support that the outgoing administration

has shown to the tourism industry.

For the government’s part, Tourism Assistant Secretary Rolando Cañizal spoke on behalf of Tourism Secretary Ramon R. Jimenez Jr. He reported on Philippine tourism’s improving competitiveness and its strategic directions.

He mentioned that tourism has a 7.5

Gumasa Beach in Glan

Franco rocks Sarbay

With the success of ‘It’s More Fun in the Philippines,’ what’s next?

By Leony R. Garcia

SAND sculpture

-percent share of the country’s GDP, and underscored how this fast-growing industry has provided livelihood opportunities and decent jobs for 4.98 million Filipinos in 2015, contributing a 12.5-percent share to the total employment in the country.

Moving forward, Cañizal said the National Tourism Development Plan for 2016-2022 is now in the offing, with the goal of further strengthening the DOT’s branding campaign and tourism marketing and promotion activities; institutionalizing the tourism coordinating council; enhancing local government units’ capacity on tourism planning and product development; and implement the star rating system; among others.

For its part, Philtoa vow to continue its support in the growing industry—tourism being the fifth-largest industry in the country today. The group, founded in 1986, is the single largest association of registered tour operators in the Philippines that exclusively promotes in-bound and domestic tourism. The membership includes travel agencies, hotel, resorts, transportation companies, handicraft stores, and other tourism-oriented establishments and association.

The Philippine Travel Mart, held every year in September, is the flagship program of Philtoa that focuses on the one thousand and one ways to enjoy the beautiful, scenic and exciting Philippines through various activities and promotional tour packages.

PARAñAQUE CITY LAUNCHES OWN COFFEE-TABLE BOOK

A

landmark coffee-table book on Parañaque City will be launched on June 28 at the Grand Ballroom of the Solaire Resort and Casino, along Aseana Avenue, Parañaque City with incoming Senate President Aquilino L. Pimentel III as guest of honor and speaker.

This was announced by Parañaque City Mayor Edwin L. Olivarez who describes the landmark book published

by Media Touchstone Ventures Inc. as “a fitting celebration of our rich history and heroic past, cultural heritage and traditions, our religiosity and dynamism as a people and as a city.”

Written over a span of two years by Melandrew T. Velasco and his MTVi book team, the coffee-table book has been assembled to provide the readers, not only with a guide to the landscapes of the city but to acquaint them with the colorful history and impressive development of the former Spanish-era pueblo, as well.

The author is the family biographer of former President Fidel V. Ramos. He has also penned biographies of illustrious men and women in the country and has published books for the Ramos Peace and Development Foundation (RPDEV). This book on Parañaque City is his third venture in coffee-table books for local government units following earlier books, such as Pasay: A Royal Kingdom’s Evolution to a Travel City published in December 2013 and Nueva Ecija: New Era of Peace and Progress in March 2015.

Parañaque: From A Pueblo to A Mega City by the Bay starts with a chapter on Paranaque’s history and its famous historical infrastructures and relics. A chapter in tribute to Parañaque’s leaders precedes

the chapter on the city’s newly reelected executive, Olivarez. Aside from providing the Mayor’s profile, it likewise tackles the Bagong Parañaque program of government that has reaped for the city recognition and awards in local governance.

Because cultural traditions are important in the development of the community, the book has a chapter on the city’s most cherished customs, such as the Sayaw ng Pagbati, Caracol Festival, Lambat Festival, Komedya, Bulungan sa La Huerta, and the internationally famous Sunduan Festival.

Readers will get to know Parañaque’s art and homegrown artists, as well. A chapter on the city’s food specialties and places where one can indulge in a unique culinary experience is also included.

Of paramount interest is the book’s chapter on the new Parañaque and its transformation into a tourism and trade center. The chapter identifies to the reader that delightful destinations that reinforce why Parañaque is more than just a city.

The book ends with a brief write-up on those who supported the publication of the remarkable coffee-table book: Generika Drugstore, MacroAsia Corp., Philippine Amusement and Gaming Corp. Solaire Resort & Casino, Robinsons Retail Holdings Inc., S&R Membership Shopping, Columbia Airfreight Complex Corp., Tiger Resort, Leisure & Entertainment Inc., PCCI-Parañaque, Miascor Logistics, Philippine Long Distance Telephone Co., Maynilad, BF Parañaque Entrepreneurs & Business Club Inc., Mitsubishi Motors Corp. Philippines, Manila Electric Co., City of Dreams, Aseana City, Ayala Malls, Azure Urban Resort Residences, SM and San Miguel Corp.

Tourism&Entertainment BusinessMirror

Editor: Carla Mortel-Baricaua

Monday, June 27, 2016

A11

D.O.T. joins major Korean travel

fairs to push tourism market

T

By Carla Mortel

o further expand the Korean market, the Department of Tourism (DOT) recently participated in the 31st Korea World Travel Fair (KOTFA) 2016 held in COEX Convention Hall from June 9 to 12 in Seoul, South Korea.

Sindaw Philippine dancers attract travelers to the Philippine exhibit area

Philippine Ambassador to South Korea Raul Hernandez (fourth from left) and Tourism Promotions Board Deputy COO Maricon Ebron (sixth from left) with representatives from other countries at Korea World Travel Fair (KOTFA) 2016

mated spent of P5.30 billion. US followed with a total of P3.13 billion spending, while Japan ranked third with expenditure estimated at P1.11 billion.

Top destinations for Koreans

The Philippine booth for meetings, bookings and business opportunitie

As one of the 60 countries that participated in the trade fair, the Philippine tourism office joined the 4,826 exhibitors in promoting special tour packages and business opportunities to traders and consumers. KOTFA is one of the major travel fairs in South Korea with an expected 120,000 visitors during the four-day event.

At the Philippine booth, representatives from the local travel trade were present to conduct networking and promotional activities, as well as major local tour operators, and general sales agents from airlines and resorts based in Korea. To entice visitors to Philippine destinations, Filipino folk songs and dances were performed by the Sindaw Philippines, who shared the stage with other cultural groups representing China, Malaysia, Guam and India, among others.

Korean arrivals at its peak

According to the DOT, from January to April, Koreans remains to be the country’s top market with 481,596 visitors or 23.22 percent of the total arrivals. For the same period, the country recorded a total of 2,073,851 arrivals, a milestone figure that surpassed the 2-million

mark in just four months. The data comprises a 14.25-percent increase versus its corresponding arrivals of 1,815,202 in 2015.

The second-biggest number of visitors came from the United States, registering a total 303,951 visitor arrivals, or 14.66 percent of the total. China is the third highest visitor-generating market with 238,523 visitors and a share of 11.50 percent. Japan contributed 183,620 visitors, an 8.85 percent of the total inbound traffic while Australia provided 88,496 arrivals, or 4.27 percent of the total.

For the month of April, the country recorded a total of 471,598 visitors, registering an 11.39-percent increase against the 423,366 visitors in 2015. The double-digit growth in visitor arrivals was posted in January with 13.17 percent, February with 20.42 percent and March with 11.86 percent.

Based on regional grouping, East Asia, comprised of Korea, Japan and China, supplied the biggest influx of arrivals with a total of 221,509 tourists, accounting for 46.97 percent of the total visitor volume.

Korea is also the top spending market for April with an esti-

According to Maricon Ebron, the Deputy COO for Marketing and Promotion of the Tourism Promotions Board (TPB), the Korean tourism market had been the top market since 2007 and presently shows no sign of backing down. “Korea is the only market that hit the millionth mark. That happened in 2012 when 1,031,155 Koreans came to the country. Last year, Korean arrivals were posted at 1,339,678. For 2016 our target is at 1.4 million arrivals; a very conservative target.”

“Most Koreans go to China, Japan and the US, but in Southeast Asia, the Philippines is their most preferred destination. We already have overtaken Thailand in terms of arrivals, while Vietnam is fast catching up,” Ebron said.

She also added that for a quick tropical getaway, most Koreans troop to the beaches in Cebu, Boracay, Palawan and Bohol. “Their main considerations are proximity, natural attractions and affordable rates; making the country the perfect fit for their travel plans,” Ebron said. “We have also observed that there are no more peak months. Koreans now arrive in the country throughout the year.”

Diverse market segments

The travel market for family holidays, honeymoon packages and spe-

At the HanaTour International Show, Korean youth tries to dance the tinikling

cial interests, such as golf and diving activities, remains strong. Introduced last year, incentive travels immediately captured 10 percent of the total arrivals of Koreans. However, the ESL market took a downward turn. “Many Koreans still want to learn the English language, but due to the security concerns of parents, many have resorted to online learning,” Ebron explained.

To sustain the market’s upward trend, the Tourism Promotions Board continues to work together with travel agencies and airlines in developing special tour packages for Koreans. This year travel agents have started offering extended tour packages for golfers, second-honeymoon packages and tours for office ladies who travel in groups.

Ebron also took note of the in-

crease of repeat travelers. “Since 2014, 52 percent of Koreans have visited the country more than once.

After the initial visit, the Koreans come back by themselves because they find it affordable and convenient. That is also the reason behind the growing popularity of airline and hotel only (air-tel) packages.

In turn, Filipinos are also taking advantage of the airlines’ good rates and air-tel. “From the Asean region, we are the top travelers to Korea; a little less than a half a million Filipinos came last year.”

Infrastructure and accommodations

According to Sun-Ok Yong, deputy general manager of HanaTour for Southeast Asia, the company is also taking notice of the so-called

free international travelers (FITs) who settle for air-tel packages. “Around 40 percent of Korean tourists come to the Philippines on their own,” said Yong.

In the region, the Philippines, comprising 20 percent of their total arrivals in 2015, is HanaTour’s second-biggest market following Thailand. “Koreans visit Cebu, Boracay and Manila. We want to offer other destinations, but the infrastructure is not there.” He reported an increasing interest among Koreans to visit Palawan and Legazpi, thus, the demand for chartered flights and international airports.

Yong also added that HanaTour can sell more packages if hotels and other accommodations are available.

“The inbound flights are increasing so there is a need to make available more rooms.” He is also optimistic that the administration under President Rodrigo R. Duterte will address the safety concerns of Koreans residents and tourists. “We hope that the new government will support the tourism sector and improve the security situation so that more Koreans will visit the Philippines.”

From June 9 to 12, the DOT also joined in the 10th HanaTour International Travel Show held in KINTEX, Seoul. As a major travel fair, the event showcased international hotels, resorts, airlines, cruise companies and tourism administrations that offer travel information, performances and events. HanaTour is the largest travel company in Korea that provides service in international travel and air ticket sales through 29 areas globally.

Festival season on Malay Island starts in July Incheon’s Futuristic Songdo District hosts largest Korea MICE Expo P

enang island off Malaysia’s northwestern coast is tourism’s best-kept secret among travelers in the Southeast Asian region. The island has a vibrant multiethnic community comprising of Malays, Chinese, Indians and Europeans, and its history and culture draw from these multiple sources. Some of its famous attractions include beautiful Chinese clan houses and mansions, British-era Fort Cornwallis and Clock Tower, and resplendent Buddhist and Hindu temples.

Known as the food paradise of Malaysia, Penang island is a favored spot for foodies from around the region and Singapore, with its famous Asam Laksa and local delicacies. For those who like a bit of adventure, there are sunny beaches and a beautiful national park to visit. A funicular train ride up Penang’s highest point— Penang Hill—is an experience not to be missed, as it shows breathtaking views of heritage city George Town.

Add to this a host of festivals that showcase regional and international art and culture, and you have an unforgettable travel experience. August is the best time to travel to Penang, as it is the “festival month” with the Bon Odori festival, which celebrates Japanese culture, Eurasia fiesta and many other cultural showcases. It is also the month of “hungry ghosts,” according to the Chinese lunar calendar; and Buddhist temples across Penang host puppet theater and live opera as an offering to the spirits— these events are mostly open to the general public and a great way to learn about the local culture.

Offering a unique mix of international world-class shows, as well as intriguing lo-

cal performances, is the George Town Festival, starting from July 29 and ending on August 28. Since Penang is a small island with just a community hall, the entire city of George Town turns into a giant canvas featuring arts, music, dance, theater and site-specific installations.

Walk or cycle along George Town’s streets and in every corner, you will see an art exhibition, a street show, someone playing live music, and many site installations that are entertaining and thoughtprovoking at the same time. There will also be local handicrafts and artworks up for sale, the best way to buy some genuine souvenirs of Penang. The creative energy flowing through George Town is evident in the hundreds of wall murals and quirky wire-art installations dotting its winding lanes, telling hidden stories about Penang’s heritage, culture and history. Not to mention that they make for some amazing selfies.

The George Town Festival began in 2010, when the Penang government sought to celebrate George Town’s listing as a Unesco World Heritage Site. What started as a two-day event is now a monthlong affair, featuring award-winning performances from Japan to Canada and intriguing local acts. The best part is that it is incredibly light on the pocket— while many of the GTF events are free, ticketed shows are affordably priced, starting from $10 per pax.

One of the highlight shows we have this year is Triptyque by Canadian group Les 7 doigts de la main, who has performed at the 2012 Academy Awards and opening ceremony of Sochi Olympic Games. Triptyque is a visual feast, with its combination

of circus acrobatics, contemporary dance and theater, as its performers “defy” gravity at every turn.

Another show to watch out for is Missing by award-winning physical dance theater company Gecko. Missing tells the story of Lily, whose memories are “attacking” her, trying to remind her who she is, but curiously, she doesn’t want to remember. The show is an electrifying piece of dance theater with extraordinary images, deliciously gray characters and an intriguing plot.

This year the festival has reached out to a wider regional community with the Asean showcase—a two-day event featuring some of the best talents from Australia and Southeast Asia. The event will feature Dutch scientist Theo Jansen’s Strandbeests—mammoth installations made of plastic and PVC pipes that can “walk” like mammals, thanks to a unique feat of engineering. They will be joined by giant Australian snuff puppets, which are handcrafted and depict the human body in its myriad forms. Visitors will also get to enjoy a thrilling concert featuring musical talents from Malaysia, Indonesia and Australia.

If its local culture you want to learn about, you should definitely see Potehi, a traditional hand-puppet performance from Taiwan that was earlier only performed in temples. Going back hundreds of years, the festival’s opening show is Svara Bhumi (Songs of the Earth), a unique tribute to the land and its people via indigenous music from Australia, Indonesia and Malaysia.

With more than 100 arts showcases, the festival has something for everyone.

S

outh Korea’s business events and tourism offerings found a captive audience at this year’s Korea MICE Expo (KME), the nation’s top business events trade show. Around 3,000 attended the 17th KME, held on June 9 and 10 at Songdo Convensia in Incheon’s ultramodern International Business District. The packed schedule provided delegates with various opportunities to network, discover South Korea’s rich MICE assets and sightsee, the latter including a visit to the future home of the Pyeongchang 2018 Winter Olympics.

This year’s event brought together 250 domestic sellers across 421 booths, along with 245 buyers, 170 of which hailed from overseas, particularly China and Southeast Asia. Currently experiencing a boom period for inbound incentive travel, South Korea has welcomed several large corporate groups since January, including China McDonaldIs, Aurance and Kasikorn Bank. According to the xKorea Tourism Organization (KTO), an estimated 1,720,000 people are expected to visit Korea for MICE-related purposes in 2016, reflecting an increase of almost 10 percent over the previous year.

Alongside business meetings and destinations, KME activities included welcoming events on June 9, as well as the K-MICE Forum on June 10, featuring talks under the theme “Creative MICE in Terms of Sharing Economy and Big Data.”

“This event was a great opportunity to

showcase the excellence of South Korea’s MICE industry,” said Kwak Sangseop, director of the Incentive Travel team at the Korea Tourism Organization. Kwak also added that the KME was a good springboard for KTO plans “to proactively support marketing activities for MICE tourism in regional provinces.”

Delegates also took part in several pre- and post-tour programs offered by the KTO. Among the highlights was a visit to Muuido Island, a popular site for incentive travel and team-building activities, the Tesco Homeplus Academy—a zerocarbon meeting facility used for off-site training programs, and major Korean Unesco World Heritage sites in the cities of Gyeongju and Andong.

Concurrently, a separate tour for global MICE media was also conducted by the KTO, offering them a broader view of Songdo IBD, a chance to see the latest developments in the run-up to the 2018 Pyeongchang Winter Olympics, and an opportunity to immerse themselves in South Korea’s rich culture at the new K-Style Hub experience center in Seoul.

KME 2016 was hosted by the KTO and the Incheon Tourism Organization, and sponsored by Korea’s Ministry of Culture, Sports and Tourism, and Incheon Metropolitan City.

First held in 2000, the Korea MICE Expo brings together international buyers and press with the nation’s top travel, convention and exhibition service providers.

Green Monday BusinessMirror

BusinessMirror

A12 Monday, June 27, 2016

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

PHL center of pitcher-plant diversity

H

By Jonathan L. Mayuga

publication, entitled Field Guide on Pitcher Plants, which was printed outside the Philippines. Incidentally, Yu helped the Mount Hamiguitan Range Wildlife Sanctuary (MHRWS) earn the title as a United Nations Educational, Scientific and Cultural Organization World Heritage Site in 2014.

T he repor ts descr ibed t he new pitcher plants as unique from those already described in other areas.

A protected area known for its rich biodiversity, MHRWS is also home to the Philippine Eagle and other unique wildlife.

@jonlmayuga

ere is one more good reason to protect our forests: The Philippines now holds the record with the most diverse species of pitcher plants (Nepenthes) in the world, topping competitors, such as Malaysia, Indonesia and Papua New Guinea.

With more than 53 different pitcher-plant species having been recorded so far, the Philippines may now lay claim to the title as the “center of diversity of Nepenthes,” an official of the Department of Environment and Natural Resources (DENR) said.

Director T heresa Mu nd it a S. Lim of the DENR’s Biodiversity Management Bureau (BMB) is urging Filipino botanists to continue their research and explorations in the forest, with the hope of finding more unique and rare plant species, like pitcher plants, which can be included in the DENR-BMB’s database.

Carnivorous

Pitcher plants belong to a family of plants that are carnivorous.

They grow and thrive in natural forests. They have modified leaves called pitfall traps, shaped like a pitcher, which served as preytrapping mechanism that features a deep cavity filled with digestive fluid or liquid.

The pitfall traps lure preys, mostly insects, and in some cases, small amphibians, such as frogs and reptiles, and even small mammals, which the plant “digests.”

The plant absorbs the prey’s nutrients like it is actually eating or digesting like food to man and animals. Because of its carnivorous nature, pitcher plants are ecologically important, Lim said.

“They help control the population of insects, preventing overpopulation,” she added.

Data base

Lim is pushing to build a data base of Philippine plants in partnership with various stakeholders.

One particular partnership is maintaining the web site Co’s

53 The recorded number of pitcher-plant species

Digital Flora of the Philippines.

Co is renowned Filipino botanist Leonard L. Co, who was killed in a crossfire between government soldiers and Communist rebels in Kananga, Southern Leyte on November 15, 2010.

Co’s Digital Flora of the Philippines is a checklist of vascular plants native to the Philippine archipelago. The web site is “a continuation of the works of Elmer D. Merrill (1876-1956) and Leonardo L. Co (1953-2010). Merrill and Co were authorities on the Philippine vascular Flora.

The plants in the web site are described based on the studies conducted by those who discovered them, including their location and distribution. Digital photos of the plants were also uploaded in the web site.

Wide variety

A wide variety of pitcher plants exist in the Philippines and they come in different size and color.

P re v iou s “re cord holders” of h av i ng t he most nu mber of pitc her pl a nts, l i ke Ma l aysi a, Indonesi a a nd Papu a New Gu i ne a , h ave more t h a n 3 0 va r iet ies of pitc her pl a nts on re cord . T he Ph i l ip pi nes h a s

Threatened

Victor B. Amoroso, director of the Center for Biodiversity Research and Extension in Mindanao, with pitcher plants Nephentes truncata on Dinagat Island. Courtesy of Victor Amoroso

less nu mber t wo decades ago, accord ing to Lim. Over the past decade, however, explorations conducted by Filipino botanists, individually, as a group, independently or in collaboration with the DENRBMB, have doubled the number of this unique and rare plant on record, exceeding that of its Southeast Asian neighbors.

“There is one pitcher plant named after a mayor of a town where the plant was discovered.

We have a wide variety of these pitcher plants. Before, we only have 27 on our record. Now, we have 53 species in our data base,” Lim said.

A Filipino botanist said almost half of the 53 pitcher-plant species in the Philippines are found in Mindanao.

A total of 26 species of the recorded pitcher plants in the Phi lippines can be found on Mindanao island.

Palawan, a province considered as the country’s last ecological frontier in Luzon, is also home to a good number of pitcher plants.

Some areas in the Visayas also have pitcher plants unique to specific areas or locations.

Site endemic

Victor B. Amoroso, director of the Center for Biodiversity Research and Extension in Mindanao, and Higher Education Regional Research Center of the Central Mindanao University based in Musuan, Bukidnon, said some of the pitcher plants recorded in the Philippines are site-endemic species, which means that they can only be found in a specific area or location, such as in Mount Hamiguitan. One of the recent articles on pitcher plants was linked with the mayor of San Isidro town in Davao Oriental.

“We have the new species of Nepentheses named after the mayor.

It was named Nepenthes justinae,” Amoroso said, referring to the plant discovered in Mount Hamiguitan that was named in honor of Justina Yu. In 2014 and 2016 Amoroso coauthored reports on Nepenthes found in Mindanao. In the latest publication, the authors concluded that Mount Hamiguitan is home to four endemic species (N. peltata, N. micramphora, N.hamiguitanensis, N. justina esp. nov.).

Amoroso also coauthored a

Many of the pitcher plants recorded in the Philippines are considered “threatened” because of massive habitat loss and the unchecked collection from the forest.

According to Lim, harvesting of any plant species in the forest is allowed only upon the issuance of necessary permits by the DENR as mandated by the Republic Act (R A) 9147, or the Wildlife Resources Conservation and Protection Act. In the case of harvesting within a protected area, it is under R A 7586, or the National Integrated and Protected Areas System (Nipas) Act. “We have to make sure that harvesting of these plant species is sustainable,” Lim said.

Because of its uniquely shaped modified leaves, pitcher plants are now being collected like other ornamental plants or orchids for commercial purposes.

Picher plants sell as much as P2,000 per plant, depending on the variety.

“Most of these species are in the critically endangered category in the sense that many are endemic to our country. Sometimes, they are site endemic. It means it is only found in one place, and nowhere else. The moment they are gone, they are gone forever,” Amoroso said.

He added that site-endemic species should be conserved by protecting their habitats, or collecting the species from the wild to propagate outside their habitats.

In Bukidnon he said there is a botanical garden where species of the pitcher plants are propagated and are now commercialized.

“In Mount Hamiguitan there are six pitcher plants, but four of

them are site-endemic species,” he said. Lim encourages hobbyists to learn to propagate pitcher plants to help save the species from extinction and, at the same time, benefit from its potential economic benefits.

“In Malaysia they are now propagating pitcher plants for commercial use as ornamental plants,” she said.

Taken for granted

“Sometimes, these plants are taken for granted. For the longest time, the DENR is focused on trees,” Lim said.

She added that, along with trees, local vegetation is also lost.

She said no amount of tree-planting as part of reforestation or forest rehabilitation will replace the uniqueness of local vegetation that will be forever lost.

“We lose the local vegetation that goes along with the trees that are lost. Documentation [of plant species] will help us know what we stand to lose if we lose our native trees,” she said.

According to Lim, much needs to be learned about pitcher plants, which have enzymes that have never been researched for their potential medicinal value from which local communities may benefit.

Lim said an inventory of these unique plants is important for the future benefit of local communities who are protecting them.

Phar maceut ica l companies spend millions in search of raw materials for medicines, which the Philippines should benefit from as “owner” of the raw material, particularly if the plant is site endemic, Lim explained.

Many areas in the Philippines, particularly those identified as key biodiversity areas, are home to unique plant species, such as pitcher plants, she added.

“We are anticipating more species to be described. In my last visit in one of the islands in Mindanao, a botanist told me that there are potential new pitcher plants that can be added to our database,” Lim said.

Knowing what the countr y stands to lose in letting go its natural forests, Lim reiterated, is “a must” to serve as guide to various stakeholders so that a plan and policy can be developed on how to best protect and conserve the country’s rich biodiversity.

Absorb carbon through forest rehab Story by Stephanie Tumampos sbtumampos_BM

Special to the BusinessMirror

‘T

here’s only a little time left,” said Dr. Rodel Lasco, country coordinator of World Agroforestry Center in his address on the issue of climate change at the recent fifth Asean Plus Three Junior Science Odyssey held at the University of the Philippines Los Baños in Laguna.

“Your generation will inherit this problem [on climate change] and it is, indeed, your generation who will have to wrestle and seek solutions to this problem,” he said.

Greenhouse-gas scenario

Fossil fuels make up most of the greenhouse gases (GHG) that human activities emit at 65 percent.

With this rate, it is likely the planet will be warmer by up to 5 degrees Celsius for the next 100 years.

The best-case scenario, according to Intergovernmental Panel on Climate Change (IPCC), is to control the emissions to achieve a rise in temperature of only about 2˚C. In the last century, experts have said evidence have shown the Earth has warmed over un-

precedented levels. A climatechange synthesis report by the IPCC in 2014 indicated that, “It is extremely likely that more than half of the observed increase in global average surface temperature from 1951 to 2010 was caused by the anthropogenic [based on human activities] increase in GHG concentrations and other anthropogenic forcings together.”

This means that in only half a century, the contribution of environmental pollutants due to human activities has increased surface temperatures for more than a degree Celsius.

Carbon dioxide (CO 2), methane and nitrous oxide are the gases that war m the planet.

“Without these gases, our planet will be 30˚C cooler than it is today,” emphasized Lasco, who has a field of specialization on forest r y a nd c l i m ate - c h a nge mitigation. “Can you imagine living in a planet 30˚C cooler than now? That’s like having an average temperature of minus 20˚C all the time,” he exclaimed.

Forest importance for climatechange adaptation and mitigation

There are three concentrations of tropical forests in the world—the

Amazon, the Congo River basin and the Southeast Asia rainforest.

Southeast Asia is known for its rainforests, most especially Indonesia, which has the largest area. “ There is a lot of uncertainty how climate change may affect our forest resources,” Lasco said in an interview with the BusinessMir ror. T he ecosystem is very well connected to us all that when climate change gets in the picture, it is important for science to learn and assess the consequences.

Lasco emphasized that planting more trees is the answer if we want to adapt and help mitigate climate change. Through the natural process of photosynthesis, trees absorb light and convert the carbon dioxide to emit oxygen and store carbon inside them in the form of biomass. “This biomass leads to carbon sequestration—carbon stock stored in the biomass,” Lasco explained.

If trees die, they emit the carbon stored inside them. “Hence, we need to plant more trees for it to be absorbed again,”he said.

Lasco added that deforestation is one of the leading causes of GHG emissions. “Ten biliion to 12 billion tons of CO 2 are released per

year due to deforestation, that is loss of forest, as well as through agriculture, such as livestock, soil and nutrient management,” Lasco said.

Sustaining the number of trees is a must. Lasco told the BusinessMirror: “We are protecting our forest by aggressively planting more trees.”

The consequences of deforestation would greatly impact the country with extreme weather situations, such as wetter and drier seasons. “For example, in the Philippines, the projection is that Luzon and the Visayas coud be wetter, but Mindanao could be drier,” Lasco said. “So geographically, some will be drier or wetter, but at the same time, it could be seasonal, where it can be wetter during the wet season or drier on the dry season.”

Agroforestry and green buildings

The Philippine forest cover has declined in the last 100 years. “Right now, we have 20-percent forest cover [compared to]90 percent before,” Lasco told the BusinessMirror. “We lost 50 percent in the last 100 years and we need to bring it back,” he added.

Yet, as the population in the country does not plummet, the

Participants in the fifth Asean Plus Three Junior Science Odyssey (APTJSO) climbed up the Makiling Botanical Garden in the University of the Philippines Los Baños for tree planting as their own way of helping Mother Earth cope with climate change. The fifth APTJSO, with the theme “Climate Change and the Rainforest,” is an annual international competition among the youth who are gifted in science. Gerry Palad/S&T Media Service

need for food is also a priority.

Hence, a combination of agriculture and forestry is studied and promoted. “There are approaches and technologies where you can combine trees and crops rather than separate agriculture and trees,” Lasco said. There will be more ecosystem services instead of only one commodity that can be produced.

Also, agricultural technologies can be incorporated to mitigate the release of GHG gases, such as methane in ricefields.

“When the rice [field] is flooded, they emit methane, but there are new technologies right now that

provide alternate wetting and drying,” Lasco said.

In an urban setting, such as Manila, many buildings can be converted as green buildings. “Believe it or not, buildings have the highest potential to mitigate climate change,” Lasco beamed.

Buildings with trees on the rooftop or on its sides could be considered. Since most buildings are airconditioned, and in other countries, heated during winter season, they also emit more GHG gases. “We need to address how we construct our buildings,” Lasco said in a challenge to architects and engineers.

Science Monday

Monday, June 27, 2016 A13

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

Coral bleaching reported in Zambales

Bleached corals stand out on the seabed in Masinloc Bay. Masinloc Municipal Coastal Resources Management Office

By Henry Empeño Correspondent

M

ASINLOC, Zambales—Environment officers in this town have confirmed re p o r t s o f co ra l b l e a c h i n g, a phenomenon wherein corals turn completely white due to stress caused by warm-water temperature and other environmental changes.

According to Olive Ebido-Gregorio, Masinloc municipal coastal resources management officer, the bleaching of various coral species has been discovered in at least three points of Masinloc Bay, which contains several marine-protected areas. “Coral bleaching has been observed since the second week of May, and it was first reported by fishermen belonging to the local Bantay Dagat,” Gregorio told the B usiness M irror in an e-mail interview.

The bleaching, she added, involved “various coral species, particularly massive and branching corals mostly found in our marine-protected areas on Panglit Island, in Taklobo Farm and Barangay Bani.”

The areas she referred to practically encompass the whole of Masinloc Bay, which local residents have developed into a marine sanctuary and ecotourism site despite the presence of coal-fired thermal-power plant at its northwestern boundary. Panglit is at the southern extremity of the bay, while Taklobo Farm is on San Salvador Island midway, and Bani, which is hosting the Masinloc

Coal-Fired Thermal Power Plant, is at the northwest end. Gregorio said the municipal environment office verified the repor ts during inspections from June 10 to 12.

She added that Masinloc officials are coordinating with the Marine Science Institute of the University of the Philippines in Diliman, Quezon City, which has mobilized a team to assess the coral reefbleaching phenomenon.

A n o t h e r e nv i ro n m e n t o f f i c e r i n Masinloc said the recent summer heat might have caused the bleaching, as marine experts have previously found out that warmer-water temperatures produced the whitening phenomenon.

When water gets too warm, corals reportedly expel the algae living in their tissues, causing the corals to turn white.

Masinloc, which lies 230 kilometers northwest of Manila, has a large fishing community, that relies on municipal waters for food fish. It is also home to commercial fishermen who have recently been displaced by the virtual takeover by China of the Scarborough Shoal, or Bajo de Masinloc, a rich fishing ground some 220 km west of Zambales.

Gregorio and other marine environment officers worry that unabated coral bleaching might lead to further losses in marine productivity, since coral reefs are home to a wide variety of food fishes, as well as tourist attractions that bring in revenue to the local economy.

PCC developing test kit to detect virus in goats

F

ilipinos fond of goat products, such as milk and meat, no longer have to worry of any danger of lack of supply in the future that may be caused by the livestock’s contracting a disease. Experts are now developing a test kit to detect or screen goats of viruses.

Th e D e p a r t m e nt o f Ag r i c u l t u re Biotechnology Program is supporting the initiatives of the Philippine Carabao Center in developing the Loop-mediated Isothermal Amplification (Lamp) assaybased test kit for the detection or screening of Caprine Arthritis Encephalitis Virus (CAEV) that affects goats.

“There is no vaccine and drugs developed against CAEV, but early detection of this disease in goats could help in proper animal-health management, as well as control and eradication of the disease.

Proper identification of the disease affecting the animals could eventually help in the sustainability of the growing small ruminant industry in the Philippines,” Dr. Michelle Balbin, project leader, said.

Based on Philippine Council for Agriculture, Aquatic and Natural Resource Research Development data, the livestock industry, including goat-raising, is one of the most rapidly growing agricultural sectors in the Philippines. The estimated goat population in the country was 3.3 million as of 2008, with 99.3 percent of which from backyard farms.

The annual goat population in the country is projected to increase steadily at 2 percent. But a Bureau of Agricultural Statistics inventory showed that goat population as of January 2014 was down to 3.690 million heads, or 0.09 percent lower, compared to 2013’s 3.694 million heads.

This has affected the production of goat products to 75,420 metric tons in 2014, which is 0.33 percent lower compared to the previous year.

Despite the decrease in the population of goats and its products, more backyard raisers and entrepreneurs still invest in

the industry. Thus, the demand and market price for goats have gone up, pushing market price of goat as of 2013 to 20 percent higher compared to five years ago.

Emerging diseases affecting the health status of animals threatens the growth of goat industry. The presence of the CAEV in the country was first reported in Eastern Visayas in 2011 with the prevalence of 3.03 percent. It was also reported in 2013 in some farms in Central Luzon with a prevalence of 3.44 percent Balbin said in the project profile.

The CAEV is a multiorgan disease of goats. It is characterized by long incubation period and persistent infection. It has the common clinical signs of polyarthritis, mastitis and pneumonia in adult goats while leukoencephalitis or progressive paresis among kids. The virus is transmitted chiefly when a contaminated colostrum or milk is consumed by a healthy animal.

In America CAEV infec tions have caused 25 percent-to-30 percent loss in milk production. Early culling becomes an option due to decrease in milk production, traumatic injuries, poor conformation and shorter life span of CAEV-infected goats.

One method of detecting the virus infection is through serological tests.

Molecular methods, such as Polymerase Chain Reaction, has also become common in the detection of the virus yet these techniques are laborious and require expensive equipment that may not be present in some laboratories.

The LAMP-based diagnostic kits for CAEV are becoming popular due to its rapidity, sensitivity, as well as specificity in the detection of pathogens.

Recently, Balbin, Dr. Claro Mingala and Bismark Ryan Padiernos of Philippine Carabao Center optimized a protocol using LAMP technique in the detection of CAEV in the Philippines. Detection of the gene can be done in simple steps and the result can be obtained within 15 minutes to 60 minutes with high efficiency and specificity.

Greenpeace celebrity ambassadors (from left) Jun Sabayton, Saab Magalona, Illac Diaz and Jasmine CurtisSmith at the recent launching of the Solar Rooftop Challenge held at the Bonifacio High Street in Taguig.

Challenging Filipino solar-energy usage Story & photos by Stephanie Tumampos sbtumampos_BM Special to the BusinessMirror

T

he Philippines consumes a lot of fossil-fuels every year.

According to World Bank data, the country’s fossil-fuel energy consumption is more than 60 percent in 2013. This means that a lot of energy consumed comes from coal, oil, petroleum and natural gas.

With this situation, Greenpeace Philippines launched the digital campaign Solar Rooftop Challenge, where a series of videos will be released to bust myths on renewable energy (RE).

“We will bust myths” through soc ia l-med ia pl at for ms, sa id Amalie Conchelle Hamoy-Obusan, country director of Greenpeace Philippines. An RE exhibit will be held all over the country to showcase the communities that have become RE users. It will also feature photographs of people, churches, schools and even testimonials of homeowners who have switched to solar power.

Small chunks give bigger impacts

Republic Act 9513, or the Renewable Energy Act, was passed in 2008 to accelerate the development of RE sources and to encourage the increase in the use of these resources. Yet, most Filipinos have little knowledge about RE sources. Unlike other RE sources, solar power has given more flexibility to people.

“It is sold in small chunks… [which] can provide you enough electricity to start with, and something that ordinary people can participate in,” said Obet Verzola, author of the book Crossing Over: the Energy

Transition to Renewable Energy and executive director of Center for Renewable Electricity Strategies.

The solar irradiance of the Philippines is far better than the world’s top solar-power producer, Germany, Obusan said. “We generate more solar power for every square meter, and that gives us that advantage,” she said.

Solar power from rooftops can be scaled according to one’s needs and affordability. “A lot of homeowners start really small and install one to two [solar] pa nels, simply to power t he lights at home,” Obusan told the BusinessMirror.

With that, homeowners could save and use the savings to invest in additional solar panels so that more appliances can be powered by solar energy.

Obusan also highlighted the many financing options available in the market, but which most Filipinos are not aware of.

“People are still not really aware of the options they have in producing [solar] power,” Obusan said. “The aim really is to bring to the people the practicality, affordability and accessibility of solar power,” she added. The people have to be informed “to hopefully make the choice of producing their own solar power,”she said.

Obet Verzola, author of the book Crossing Over: the Energy Transition to Renewable Energy and executive director of the Center for Renewable Electricity Strategies, talks about the benefits of solar energy during the Greenpeace launch of the Solar Rooftop Challenge.

Financing solar power

Prices of technologies often are very expensive at the start but, in the long run, they eventually become cheaper and affordable, including solar-energy utilities.

“Back when the cell phone wa s i nt roduced , it wa s ver y e x p e n s i v e . B u t y e a r s l a t e r, advancement in technolog ies made it cheaper and affordable to people,” said Verzola.

Verzola added that at the price of at least P900, a Filipino can buy a small solar panel that can charge a cell phone. For the household, one could provide power to six LED lights from a 100-watt solar panel, which would cost about P5,000, according to Obusan.

“Although P5,000 might look expensive, it will allow you to reduce consumption [from the main grid], and provide savings that can increase your investment on renewable or solar-power utilities,” Obusan said. Verzola agreed: “Prices of solar panels and batteries are definitely seen to go down, and would be the future of the industry.”

Besides these, Greenpeace said households would benefit more if they use solar-panel system.

“Actually, installing your own [solar-power] system makes you aware of your own usage,” Obusan said. “Therefore, you become much more earnest in how you consume energy, as well.”

A14 Monday, June 27, 2016 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

‘Brexit’ lessons for the Philippines

T

HE recent referendum vote held in the United Kingdom seems straight forward enough. The ballot had two choices: “Remain a member of the European Union” and “Leave the European Union.” The final result of last Thursday’s voting was 51.9 percent to “Leave” and 48.1 percent to “Remain.”

The outcome was fairly close, but still decisive, with the Leave getting 7.8 percent more votes than Remain. However, those numbers are deceptive.

The vote for Remain won in an absolute landslide victory. The vote for Leave won in an absolute landslide victory. It all depends on where you look.

The United Kingdom is composed of England, Northern Ireland, Wales and Scotland, through centuries of treaties and to a certain extinct kingly conquest. And like every diverse nation, there are many viewpoints and biases.

In a postmortem of the vote, the Remain-inclined press pointedly mentioned that in an area of England with higher education, Remain was a big winner. London, for example, voted 60 percent to 40 percent in favor of Remain, a landslide. However, London is also home to the financial institutions that have a vested interest in staying part of the EU. Obviously, multinational banks tend to employ higher-educated people. So, of course, London would vote Remain, but not as a result of being “smarter,” but because it was in their financial interests.

The West Midlands region of England voted the opposite way—60 percent for Leave. The city of Birmingham is in the West Midlands and is England’s second-largest city. Birmingham used to be a manufacturing and engineering center. Today, its economy is dominated by the service sector, which in 2012 accounted for 88 percent of the city’s employment. Economic inequality within Birmingham is greater than in any other major English city.

The North East region of England also voted 58 percent for Leave. Thirty percent of the people there consider themselves in the “D” or “E” segment of the UK’s economic classes. England’s eastern area also went heavily—57 percent—for Leave. Here, youth unemployment is 33 percent.

This referendum was about an issue that significantly affected every citizen of the United Kingdom and a critical national policy. Yet, when you look at the results, the voters cast their ballots exactly as people always do: Based on their own personal interest. London bank employees voted for what was best for London banks. Lower-income classes in depressed areas voted for a change from the current situation, which they believe has failed them.

In a short time, the Philippines will face deciding about some critical issues from the status of Muslim Mindanao, perhaps, a change to a parliamentary or federal form of government to changes in the Constitution regarding foreign ownership of businesses.

Will Filipinos push for a decision that they think will be best for the entire nation or for what will be best for their own personal interests?

Since 2005

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

Publisher Editor in Chief Managing Editor Associate Editor News Editor City & Assignments Editor Senior Editors

T. Anthony C. Cabangon Jun B. Vallecera Max V. de Leon Jennifer A. Ng Dionisio L. Pelayo Vittorio V. Vitug Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Efleda P. Campos

Online Editor Social Media Editor

Ruben M. Cruz Jr. Angel R. Calso

Creative Director Chief Photographer

Eduardo A. Davad Nonilon G. Reyes

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

Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Adebelo D. Gasmin Frederick M. Alegre Marvin Nisperos Estigoy Aldwin Maralit Tolosa Dante S. Castro

PCSO grants ambulances to Iloilo Atty. Jose Ferdinand M. Rojas II

RISING SUN

W

ITH other Philippine Charity Sweepstakes Office (PCSO) officials and personnel, I am in Iloilo City on Monday and Tuesday to inspect the PCSO branch office there and grant seven brand-new ambulances to various municipalities in the province.

Under the PCSO’s Ambulance Donation Program, each local government unit (LGU) may request a new vehicle from the PCSO every five years. Today’s recipients are the municipalities of Batad, Mina, Zarraga, New Lucena, Leganes, Barotac Viejo and Santa Barbara.

In the first quarter of this year alone, 112 ambulances were distributed around the country to LGUs, municipal health offices and government hospitals. Last year 700 ambulances were donated.

The PCSO not only grants ambulances, but also provides financial assistance for the purchase of medical equipment by public hospitals.

Last Thursday (June 23), I handed a check for P25 million to Compostela Valley Gov. Jayvee Tyron Uy for the purchase of a computerized tomography scanner (CT scan ma-

HOM

www.businessmirror.com.ph

regional offices n DXQR -93dot5 HOME RADIO CAGAYAN DE ORO E-MAIL ADDRESS: homecdo@yahoo.com ADDRESS: Archbishop Hayes corner Velez Street, Cagayan de Oro City CONTACT NOs.: (088) 227-2104/ 857-9350/ 0922-811-3997 n DYQC -106dot7 HOME RADIO CEBU E-MAIL ADDRESS: homecebu@yahoo.com ADDRESS: Ground Floor, Fortune Life Building, Jones Avenue, Cebu City CONTACT NOs.: (032) 253-2973/ 234-4252/ 416-1067/ 0922-811-3994 n DWQT -89dot3 HOME RADIO DAGUPAN E-MAIL ADDRESS: homeradiodagupan@ yahoo.com ADDRESS: 4th Floor, Orchids Hotel Building,

Rizal Street, Dagupan City CONTACT NOs.: (075) 522-8209/ 515-4663/ 0922-811-4001 n DXQM – 98dot7 HOME RADIO DAVAO E-MAIL ADDRESS: home98dot7@gmail.com ADDRESS: 4D 3rd Floor, ATU Plaza, Duterte Street, Davao City CONTACT NOs.: (082) 222-2337/ 221-7537/ 0922-811-3996 n DXQS -98dot3 HOME RADIO GENERAL SANTOS E-MAIL ADDRESS: homegensan@yahoo.com ADDRESS: 2nd Floor, Penamante Clinic Tiongson Street, General Santos City CONTACT NO.: 0922-811-3998 n DYQN -89dot5 HOME RADIO ILOILO E-MAIL ADDRESS: homeiloilo@yahoo.com

ADDRESS: 3rd Floor, Eternal Plans Building, Ortiz Street, Iloilo City CONTACT NOs.: (033) 337-2698/ 508-8102/ 0922-811-3995 n DWQA -92dot3 HOME RADIO LEGAZPI E-MAIL ADDRESS: homeradiolegazpi@ yahoo.com ADDRESS: 4th Floor, Fortune Building, Rizal Street, Brgy. Pigcale, Legazpi City CONTACT NOs.: (052) 480-4858/ 820-6880/ 0922-811-3992 n DWQJ -95dot1 HOME RADIO NAGA E-MAIL ADDRESS: homenaga@yahoo.com ADDRESS: Eternal Garden Compound, Balatas Road, Naga City CONTACT NOs.: (054) 473-3818/ 811-2951/ 0922-811-3993

Printed by brown madonna Press, Inc.–San Valley Drive KM-15, South Superhighway, Parañaque, Metro Manila

qualifications met and documentary requirements submitted, the request is usually granted.

For the documentary requirements that should accompany each request, whether for an ambulance or medical equipment, visit pcso.gov.ph. n n n Warmest congratulations to my wife lawyer Patricia Angela “Trisha” O. Bunye for being named president of the Licensing Executives Society International (Lesi), an international organization of professionals involved in the licensing, transfer and management of intellectual-property rights.

The future of PPPs is written on the wall

By Alberto Agra

PPP Lead

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

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

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

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

chine) for the use of the Compostela Valley Provincial Hospital. It will be the first and, so far, only CT scan machine in the area.

Many other government hospitals have also received PCSO assistance to purchase equipment, such as x-ray machines with picture-archiving features, and other state-of-the-art machines that will enable their personnel to care for our kababayan with the proper tools.

Before PCSO issues such assistance, it requires a recommendation from the Department of Health (DOH) whether the equipment is, indeed, needed by the requesting government hospital, and whether their personnel can operate and maintain the machine.

Upon receiving such recommendation from the DOH and all other

The PCSO not only grants ambulances, but also provides financial assistance for the purchase of medical equipment by public hospitals. Last Thursday (June 23), I handed a check for P25 million to Compostela Valley Gov. Jayvee Tyron Uy for the purchase of a computerized tomography scanner (CT scan machine) for the use of the Compostela Valley Provincial Hospital. It will be the first and, so far, only CT scan machine in the area.

Continued from A1 In the recently concluded twoday business summit in Davao City, the 10-point socioeconomic agenda of the incoming administration was presented and discussed. The fourth agenda includes PPPs. The President has committed to “accelerate annual infrastructure spending to account for 5 percent of the gross domestic product, with PPP playing a key role.” At the sidelines of the event, incumbent City Mayor Duterte signed a 50-year jointventure agreement with the private sector, selected through the unsolicited proposal route, for the Davao Coastline and Port Development Project worth close to P39 billion.

Here are five suggested actions

points on the fourth agenda: 1. From PPP to PPPP. The current tag of this program only highlights the parties (i.e., public and private) and the relationship between them (i.e., partnership).

The purpose or “true north” of the arrangement is, however, deemphasized. It must be underscored that any PPP should be for better, not just good, quality of life. PPP may, therefore, be rebranded as PPPP or PPP for the People.

2. PPP is a part of a whole.

PPP cannot be the end in itself.

It is should not even be viewed as a panacea or the only solution to the infrastructure and publicservices deficit. As discussed in the two-day summit, “PPPs are not a quick fix for financing and delivery, but can be an important part of infrastructure delivery.” It

must be pursued as a program and a change strategy.

3. Expanding the PPP definition and reach. To be an effective change strategy, adaptive innovation must be encouraged. Alternative PPP modalities should be advanced. Confining PPP to the modalities under the build-operate-transfer law stymies innovation. More options is better.

To facilitate inclusive growth in the whole country, PPPs should be implemented outside Metro Manila and nearby areas. Local governments all over must be empowered and encouraged to adopt their own PPP frameworks.

4. Strengthening and decentralizing the PPP Center. The need for a central technical and advisory agency on PPPs under the National Economic and Development Authority, or possibly under the Office of the President to underline the priority, cannot be understated.

The PPP Center should continue to be the repository of expertise, data and learning. However, the expertise should not be monopolized under one roof. Horizon-

I am proud to say that Trisha is the first Filipino president of the Lesi, as well as the first Southeast Asian and only the third female to occupy the post.

Over her two decades of volunteering for Lesi, she also served as president of LES Philippines (20062009), chairman of the Asia-Pacific committee and international vice president (2011-2013).

Lesi has nearly 10,000 individual members in over 90 countries, with 33 national and regional societies. Its members include not only lawyers, but also management consultants, academics, engineers, government officials and people from other fields interested in intellectual-property issues, such as transfer of technology, licensing of intellectualproperty rights, from technical know-how and patented inventions to software, copyright and trademarks. It conducts conferences and educational programs around the world, and publishes les Nouvelles, an online journal, and Global News, on Lesi news and features.

Trisha ably manages her efforts for Lesi, along with her work as senior partner at Cruz Marcelo and Tenefrancia Law. n n n Atty. Rojas is vice chairman and general manager of the Philippine Charity Sweepstakes Office.

tal and vertical decentralization must be promoted. Satellite PPP Centers in Northern Luzon, the Visayas and Mindanao may be established. Implementing agencies at all levels—i.e., national, state corporations and local governments—should have their own PPP units. The PPP Center can, thus, serve as institutional mentor and coordinating agency of these units.

5. Future-proofing PPPs. Successor risk or changes in policies and interpretations and unilateral amendments or rescission of PPP contracts entered into by previous administrations should be avoided.

Stability, trust and participation by stakeholders motivated by the fourth “P” are critical in sustaining PPP. Ethical standards must be in place.

PPPs must promote human rights, climate and gender justice.

Citizens’ participatory audit must be institutionalized.

We are looking forward to a brighter and comfortable future.

We hope that PPP, among other change strategies, can bring us there.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Monday, June 27, 2016 A15

The relevance of tolerance Notes on the accreditation of CPAs Atty. Lorna Patajo-Kapunan

Concordio S. Quisaot

legally speaking

T

HE meaning of marriage in modern-day society has dwindled through the years. Of course, this statement is not meant to be a blanket description of all marriages, but it is one which is meant to express my sense of alarm. I see that it has become a struggle to remain faithful to vows. They have become facile words.

Often do we see a man with a woman who is not his wife, and a woman with a man not her husband. This has become accepted, they say, as society is aware that people find themselves in such situations where there is a need to find comfort from abusive spouses. Unwittingly, our society has become tolerant to the crimes of adultery and concubinage. These crimes (similar, yet different in more ways than one) are punishable under the Revised Penal Code.

Article 333 of the Revised Penal Code defines adultery as the carnal knowledge between a married woman and a man not her husband, the latter knowing her to be married, even if the marriage be subsequently declared void. Article 334 defines concubinage as keeping a mistress in the conjugal dwelling or having sexual intercourse, under scandalous circumstances, with a woman who is not his wife, or cohabiting with her in any other place. This article is limited to carnal knowledge giving rise to the crimes of adultery and concubinage.

Apparent from the foregoing definitions is that adultery is committed by a wife, while concubinage is committed by a husband. It is imperative to note that the wife must be charged together with the other man, and the husband must be charged together with the concubine.

More than this, however, are stark differences (perceived to be gender biased or otherwise) between the two. In adultery, carnal knowledge alone is sufficient and mind you, every sexual intercourse

is a separate count. In the crime of concubinage, carnal knowledge must be under scandalous circumstances. Stated otherwise, a sexual intercourse with a woman will not necessarily give rise to the crime of concubinage. In addition, each incident of sexual intercourse is not treated as separate counts of concubinage.

Of note is that, in my years of practice, I have not heard of anyone convicted of the crimes of adultery or concubinage.

While proof of sex may be inferred in both crimes, the additional element of “under scandalous circumstances” in concubinage poses a serious challenge to would-be complainants. To prosper, the complaint must necessarily include proof or testimony of another person who has been “scandalized” or outraged by the brandishing of the affair. In other words, the public reaction will be the measure by which the final element is satisfied. The people who comprise “the public” are, in most cases, colleagues, relatives or peers of the husband concerned and who do not react adversely with respect to the affair, but are, to the contrary, even supportive of the same.

The public has become so tolerant and forgiving to affairs which give rise to the crimes of adultery and concubinage, especially in view of abusive marriages. It might be well to ponder whether these crimes, defined at a time when marriage, treated with eminent sanctity, have been rendered moot by such acceptance by the public and find no relevance in this day and age.

DEBIT CREDIT Conclusion

T

HERE are over 6,100 CPAs accredited in public practice with the Board of Accountancy (BOA) as of June 2016.

The list of accredited CPAs are posted in the BOA web site (http://boa.com.ph/accprac/) so the public can check their names before engaging their services.

Below are the procedural steps currently observed by the Professional Regulations Commission (PRC) in the accreditation of CPAs in public practice and the issuance of the certificate therefor.

The steps presented above appears to be a long and maybe tedious process.

T he Board of Accountancy is working with the PRC to expedite and streamline the process. Changes that are forthcoming are the simplification of requirements, the online application, submission of requirements, and verification of CPD completion of requirements and others.

Aside from the CPAs in public practice, the CPAs in education, commerce and industry, and CPA partners and professional staff of auditing and accounting firms and partnerships are all required to be accredited with the BOA. Is there a prospect that these CPAs need not anymore undergo this accreditation process having already acquired their CPA license? Perhaps.

Hon. Concordio Quisaot is a member of the Board of Accountancy, tasked with the oversight in the accreditation of CPAs. He has a consulting and aud i t i n g p ra c t i c e i n C e b u a n d has electric cooperatives among his clients. 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.

Britannia waives the rules for oil

By Liam Denning

T

Bloomberg View

O rioting Venezuelans and militant Nigerians, the oil market can add another group of malcontents: Brexiteers.

The first thing to say about how Britain’s decision to leave the European Union (UE) will impact oil prices, beyond what you can see on your screen right now, is that nobody has a clue. We’re in “here be dragons” territory.

One of Brexit’s immediate side effects was a drop in the Mexican peso against the US dollar.

That Mexico’s peso, like many currencies, is having a bad day just because 17 million-odd Brits cast a vote about their relationship with Europe tells you there are no simple correlations here.

Oil fell sharply on Friday, along with most other risk assets, and in keeping with the typical response of commodities to a stronger US dollar. But after that knee-jerk reaction, the next move is harder to forecast. That’s because Brexit’s fallout for oil will have feedback loops that can both support and squash oil prices.

On the positive side, fundamentally nothing has changed since Thursday. Oil supply and demand continue to rebalance toward the point when the global glut of inventories will start to retreat meaningfully, either later this year or sometime in 2017. Yes, the United Kingdom and the EU are about to undergo a vast experiment unlikely to stoke much confidence for the foreseeable future. But they’ve been cutting their oil demand for years now, so it wasn’t like anyone was banking on Europe to provide oomph to the market.

And oil’s sudden move back down to the mid-$40s will also likely deter at least some US operators from pulling more of it out of the ground. Lower prices will also keep money tight in places such as Venezuela and Nigeria, prolonging and, perhaps, intensifying their instability.

Yes, the logic is grim; but given the primary role supply disruptions have played in the recent oil rally, this could support oil prices in the months ahead.

Yet, the same damage to sentiment— and thereby access to capital and business confidence—could also be oil’s undoing. Emerging markets don’t just produce a lot of oil, they are also the center of gravity when it comes to demand growth, likely accounting for 96 percent of it in 2017, the International Energy Agency forecasts.

For many months leading up to this week’s debacle, global economic forecasts from the likes of the International Monetary Fund and the World Bank have been steadily trimmed, with much of the concern centered on emerging markets. Apart from the immediate volatility sparked by the UK’s referendum, there are further risks to consider, not least in politics. The victory of a populist, antiestablishment campaign in one of the world’s biggest, and supposedly most stable, economies injects further uncertainty into not just a fractious Europe but also, of course, November’s US election.

How will that play out? Again, nobody knows. Taking a longer-term view, though, here’s one observation.

The last oil boom lasted roughly through the decade leading up to the end of 2014, and it was especially steep in the run-up to 2008. It resulted from a Chinese economy booming on the back of healthy growth in global trade, which in turn rested on growing or, at times, vibrant European and US economies. On the supply side, it reflected a growing fear of Peak Oil. Where are we now? Peak oil fears have given way to an oil glut. China is no longer booming quite as much and has built up enormous debt in an effort to maintain growth. The US economy has recovered, but bears heavy scars that occasionally come to the fore in the form of weak jobs numbers and sentiment indicators. And now Europe has taken a plunge into the unknown.

The Brexit shock: Now all is up in the air!

L

By Jan Oberg | Inter Press Service

UND, Sweden—The United Kingdom, Europe and the rest of the world will be affected. But there has been no planning for this anywhere.

It’s now all up in the air what this Brexit vote will be the starting point of. All we can safely predict is that we are in for interesting times!

Arrogant corporate and other elites continuously enriching themselves against all common social sense and ignoring the legitimate needs and concerns of ordinary citizens, women in particular—so, class and gender.

So also that more highly educated people tended to vote for Remain and older people voting Leave—more interesting sociological analysis here.

Interestingly, the whole art world supported Remain—and now fear for the effects of Brexit on Britain’s cultural development.

An EU that has failed to create a new, better way of doing politics, merely growing its original democratic deficit—so, lack of real democracy.

An EU that has had a woefully inadequate, cynical response to a refugee crisis caused by leading EU member-states’ warfare—so, (mis) management and lack of leadership.

Significantly, the leading Muslim Association of Britain supported Remain with the argument that “Exit from the EU runs the risk of perpetuating rifts in British society, which would increase levels of hate crimes against British Muslims.”

So, Islamophobia.

A general sense (but sometimes denial) of insecurity about the future all over the Western world, a deep sense of failure, loss, sense of

risk of war in Europe and the fact that the rest of the world is moving ahead and will surpass the West; a sense that of the West lead by the US getting relatively weaker and lacking leadership—so, psycho-political-civilizational insecurity.

A fallback to ”me and my home” and closing the doors to the wider world’s problems—nationalism, xenophobia, right-wing, neo-nazism populism and all the things many of us hoped had visited Europe for the last time— so, populism/nationalism/regression.

What could it lead to?

AN exit domino effect in a number of countries—referendums and eventually a quite small EU or no EU. A punishment by Germany and other EU of the UK for leaving, depending somewhat on whether the post-EU Britain will not only move out of the EU, but also closer to the US. It could also, in the best of cases, lead to a rethink throughout the EU and a real effort to do things differently—but unlikely, given the EU is already in crisis and lack visionaries in politics.

A referendum in Scotland, further reducing the unitedness of the Kingdom.

A reshuffling in the global economy—London being so much of a global financial center. Where will the banks and investors go now? What will China do that had London as its major hub?

A tumbling of the British pound and turmoil on the financial markets, weakening of the US dollar?

A Britain in deep economic crisis—or, perhaps, starting out on a new course with a great future, speeding ahead of the average EU? A Britain that ties itself (even more) to the US in security political terms and an increasing conflict between those two and EU/North Atlantic Treaty Organization (Nato) countries—spelling the dissolution of Nato.

What does it signify?

THAT democracy works—and that it doesn’t. The referendum instrument is an utterly democratic method—as Switzerland continues to prove to the world.

But then, is it wise that such an important decision can be made with such a small majority? Wouldn’t it have been reasonable to demand, say, two-thirds majority for Leave?

To ignore now what over 48 percent wanted isn’t good. But, anyhow, nobody trusts politicians nowadays and, perhaps, the effects will be smaller than most fear today.

That the Western center doesn’t hold anymore. Such an important country leaving the EU is a blow beyond imagination to the entire idea of that Union.

Basically that the West is getting weaker and, while trying to “divide and rule,” it is fragmenting from inside.

The EU is getting weaker in spite of still being the largest economic bloc in human history. Because of the rise of other economies, the 28 countries accounted for 30 percent of the world’s total output in 1980 and 16.5 percent

in 2015. With the UK leaving, the EU loses 15 percent of its GDP. That the EU construction and Lisbon Treaty, written up by three old men, was wrong and outdated from the outset and lacked every potential to appeal to the diverse citizenry throughout Europe, particularly the younger ones.

That there is no vision and strategy; no one—no one!—seems to have the faintest idea about what will happen now, as Ken Livingstone, London’s former mayor, expressed it on Russia Today the morning after.

Be sure that Brexit on June 23, 2016, will be remembered as a turning point. And be sure that, while we do not know what will happen after Brexit, it’s not a message of good things to come for the already crumbling, vision-losing Western part of our world.

“May you live in interesting times” as the English say, considering it a curse. The Chinese—to whom this phrase is often falsely attributed—expresses it differently: Better to be a dog in peaceful time, than to be human in a chaotic (warring) time.

Both probably meaning that our time is more fraught with insecurity than ever….

The author is TFF director and cofounder, peace studies professor. PhD in sociology, peace and future researcher. Associate professor (Docent) at Lund University, thereafter visiting or guest professor at various universities. Former director of the Lund University Peace Research Institute (LUPRI); former secretary-general of the Danish Peace Foundation; former member of the Danish government’s Committee on security and disarmament.

2nd Front Page BusinessMirror

A16 Monday, June 27, 2016

www.businessmirror.com.ph

Lawmaker wants to look into govt’s ₧27-billion program for carmakers ...

A

By Jovee Marie N. dela Cruz

@joveemarie

lawmaker wants to look into the implementation of the government’s P27-billion stimulus program for local carmakers when the 17th Congress starts session next month.

Reelected Rep. Winston T. Castelo of the Second District of Quezon City said he would seek an inquiry to determine how the Comprehensive Automotive Resurgence Strategy (CARS) Program is being implemented by the government.

Castelo is the chairman of the House Committee on Metro Manila Development during the 16th Congress.

“Congress should look into the matter. As far as I know, [all the tax exemption and incentive] should have consent from Congress or approval from Congress,” Castelo told the BusinessMirror.

Under Article VI, Section 28 of the

1987 Constitution, no law granting any tax exemption shall be passed without the concurrence of a majority of all the members of Congress.

The CARS Program was implemented through Executive Order 182, Series of 2015.

CARS is a government stimulus program aimed at reviving the country’s declining manufacturing sector by specifically targeting the auto industry, given its strong linkages to other industries and its socalled multiplier effect.

It provides for a government support fund of P27 billion, or a budget of P9 billion for each enrolled vehicle model. The incentives will be given

in the form of tax-payment certificates to offset any tax and duty obligations of CARS participants to the national government, which include excise tax, income tax, import duties and value-added tax.

“The government can, instead, use this P27 billion for the construction of thousands of rooms and to feed malnourished children.

The fund can also be allotted for the medical needs of the people and other social services of the government,” Castelo said.

Earlier, the Board of Investments said it has approved the application of Toyota Motors Philippines Corp. and Mitsubishi Motor Philippines Corp. for incentives

under the government’s P27-billion CARS Program.

Incoming Trade Secretary Ramon M. Lopez made an assurance that the Duterte administration will continue to implement the stimulus program.

“We will continue the implementation of the CARS Program under the new government and ensure that its goals are effectively realized by working together closely with auto-parts makers and assemblers,” Lopez said.

“We will also pursue strong coordination among government representatives of the interagency committee of the CARS Program,” he added.

The government can, instead, use this P27 billion for the construction of thousands of rooms and to feed malnourished children.”

—Castelo

CCT

Continued from A1

Communications Secretary Herminio B. Coloma Jr. explained an extensive study was conducted before the Pantawid Pamilyang Pilipino Program (4Ps) was pursued to make sure the money spent would quickly filter through and reduce poverty, even as it allows long-term investments on education and health to help its poor beneficiaries break the cycle of poverty.

Coloma said conditions were imposed on targeted beneficiaries to continue receiving government aid under the 4Ps, such as attendance of the children of the beneficiary families in school, and their participation in health programs, such as vaccination programs, to make sure those children stay healthy.

President Aquino has justified the huge budget for the 4Ps Program in that poor families require immediate relief from poverty and hunger, and that government assistance is contingent on the attendance of the children in school to make sure they complete school and eventually become productive citizens.

Since 2014, President Aquino has allocated P65 billion annually for the 4Ps Pro-

gram and has claimed 1.4 million families or some 7.7 million Filipinos have been lifted from abject poverty because of the liquidity injection. Coloma also said the 4Ps Program has the support of all candidates in the May 9 presidential races, including Duterte himself.

“In the last elections, weT recall that among all the presidential candidates, none declared they will not continue with the CCT Program because of the results of a public opinion survey in which it was indicated that 80 percent of the voters want it to continue, and that they would vote for whomever will continue it,” Coloma said.

However, the President-elect plans to review the CCT Program because it ostensibly promotes dependency among the poor beneficiaries and that the program was not seen able to cut poverty over the medium and long horizon.

Incoming Budget Secretary Benjamin E. Diokno, an economist and professor at the University of the Philippines School of Economics, believes any funds allocated for CCT should not come from borrowed money, especially foreign borrowings. Diokno also said any CCT Program should be implemented by local governments, and not centralized with the national government since it is the local governments that own extensive knowledge which families need government aid the most.