Businessmirror june 30, 2016

“When you get major news like this that is unexpected, as the ‘Brexit’ vote was, it often takes about five trading days to kind of work through the system.”—JJ Kinahan, chief strategist at TD Ameritrade, as investor jitters over the economic fallout of Britain’s vote to leave the European Union sent US stocks sharply lower for a second straight session. AP

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“I personally know I have work to do on this front. A lot of people tell pollsters they don’t trust me. You can’t just talk someone into trusting you, you’ve got to earn it.”—Hillary Clinton, in a speech to the Rainbow PUSH Coalition in Chicago about how her trustworthiness has dogged her for more than a quarter century. AP

“Just because of one referendum...it’s coming out like woodworms.”

—Julie Sauter Daoud, a French-German national who has lived in Britain most of her life, on the surge of xenophobia since the vote to leave the European Union. AP

BusinessMirror A broader look at today’s business

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Thursday, June 30, 2016 Vol. 11 No. 264

ONLINE BOOKING SITES, NEW IATA RULES HURTING TRAVEL AGENCIES

Travel agents turn to Teo for survival

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s someone who personally knows their plight, travel agents in the country are hoping that incoming Tourism Secretary Wanda Corazon T. Teo will help them survive the onslaught of the online booking sites and the ill effects of the new International Air Transport Association (IATA) reporting system.

INSIDE

for how long?

sports

2,000

The estimated number of travel agencies in the country The Philippine Travel Agencies Association (PTAA), with corporate membership of over 500, said these are the concerns where the Continued on A2

c4

health&Fitness

ANOTHER TERROR ATTACK Turkish rescue services gather outside Istanbul’s Ataturk airport on Tuesday. Two explosions have rocked Istanbul’s Ataturk airport, killing several people and wounding scores of others, Turkey’s justice minister and another official said on Tuesday. A Turkish official said two attackers have blown themselves up at the airport after the police fired at them. The official said the attackers detonated the explosives at the entrance of the international terminal before entering the x-ray security check. Story on A8. AP

Stimulus taps seen opening wider in Asia on Brexit risks

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ManilaMed, ‘BM’ seal partnership Officials of Medical Center Manila (ManilaMed) and the BusinessMirror ink their partnership agreement covering corporate social responsibility projects and exchange of services. Present at the signing are (from left) BusinessMirror Managing Editor Max V. de Leon, ManilaMed Medical Director Dr. Emma GasparTrinidad, BusinessMirror Vice President for Corporate Affairs Frederick Alegre, ManilaMed President Jose Ronaldo de los Santos, BusinessMirror Publisher T. Anthony C. Cabangon and ManilaMed Vice President for Operations Group Dr. Carmen Isabel Dinglasan. ALYSA SALEN

PESO exchange rates n US 47.0520

ays after the surprise United Kingdom vote for Brexit started roiling global markets, prospects for greater monetary and fiscal stimulus are becoming clear in Asia, even as the region’s relative growth dynamism offers it resilience.

While Nomura Holdings Inc. saw financial contagion and a blow to confidence as the main dangers for Asia, Credit Suisse Group AG identified trade flows as the top risk. They ended with the same conclusion: more monetary See “Stimulus,” A2

We think Asian economies, by and large, will use monetary-policy easing as a first line of defense to support growth.”

—Credit Suisse

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Northern Palawan needs better Busuanga airport

By Recto Mercene @rectomercene

C

ommercial airlines are asking the government to upgrade the Francisco B. Reyes Airport in Busuanga, Palawan—from a feeder to an international airport—amid a noted rise in the number of tourists flocking to various resorts among the surrounding islands.

Raul Glorioso, Civil Aviation Authority of the Philippines (Caap) chief of Aerodrome Development and Management Service, said the Department of Transportation and Communications (DOTC) had conducted a feasibility study to realign the runway, on account of a growing tourist demand. “[But] realigning the runway so that it could be lengthened and avoid mountains would be like building a new airport,” he said, adding that aside from a runway, a new airport terminal and other infrastructure would also have to be built.

“The whole thing is estimated to cost from P5 billion to P6 billion, and it would take about three years to finish the runways, taxiways and associated buildings,” Glorioso said.

He added that the new realigned runway would be about 2.3 kilometers long,

Boracay would fade into the background if an international airport could be built in Busuanga, the largest of more than 10 islands comprising the Calamian.”

—Glorioso enough to accommodate large commercial airplanes operated by international airlines.

An international airport operates 24/7 and, therefore, visitors and tourists to Busuanga and nearby islands could come as they please, according to Glorioso, who added that, currently, tourists and visitors wishing to fly to Busuanga had to detour to Manila to take commercial flights or to charter private airplanes.

Continued on A4

Spanish companies seek stronger ties with PHL

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HILIPPINE and Spanish businesses are reinforcing economic relations, seeing opportunities for partnerships in the area of infrastructure.

In a statement, the Makati Business Club (MBC) said Spanish firms have expressed increasing interest in publicprivate partnership (PPP) projects following a networking lunch between the two groups, in celebration of the 14th anniversary of Philippine-Spanish Friendship Day. “Spain currently ranks as the Philippines’s 10th-largest source of foreign direct investments, and our trade figures with Spain are on the rise,” MBC Executive Director Peter V. Perfecto said in a statement.

“Currently, we are seeing increasing interest of Spanish firms to participate in PPP projects, while Philippine companies are expanding their business operations in Spain, particularly in the property development and winery sectors,” he said.

The rising interest for closer business relations follows one of the most

significant investments of the Philippines into the European country.

Early this year, tycoon Andrew L. Tan’s Grupo Emperador Inc. SA completed the acquisition of the Spain-based sherry and brandy business of US company Beam Suntory Inc. for P13.8 billion.

This deal consisted of four international liquor brands, including premium Spanish brand Fundador Pedro Domecq—the Philippines’s largestselling imported brandy.

The purchase also entailed the takeover of one of the largest and oldest brandy cellars in Spain, Bodegas Fundador, as well as production facilities, vineyards, and bottling and blending facilities.

Among the companies that participated in the business networking luncheon were Aboitiz Equity Ventures Inc., Acciona, Ayala Corp., Ayesa, BDO Unibank, Eptisa, Fuego Hotels, Fundacion Santiago, Gamesa, Inclam, Maybank ATR Kim Eng, Mondial Tours, OHL, Oleo Fats Inc., RACO Trading Philippines, Solventia and Tamoin. Catherine N. Pillas

n japan 0.4580 n UK 62.7862 n HK 6.0650 n CHINA 7.0740 n singapore 34.7786 n australia 34.7573 n EU 52.0772 n SAUDI arabia 12.5556

Source: BSP (29 June 2016 )

A2 Thursday, June 30, 2016

BMReports BusinessMirror

Travel agents turn to Teo for survival Continued from A1

industry needs Teo’s interventions.

PTAA President Maria Michelle Reyes-Victoria said since 2010, when most airlines and hotels started offering their services online, travel agencies were reduced to a marginalized sector, with a lot of the smaller firms closing operations.

“Travelers now are going online; but what they do not know is that the rates could potentially be more expensive. It is just the marketing of airlines and hotels at work,” Victoria said.

Victoria said that since the public took to booking online, most travel agencies are now just being approached for land arrangements, transfers and visa applications.

She said what is keeping the travel agencies afloat are the corporate accounts that they handle. Before, travel agencies handle a mix bag of clients. “Individual travelers just book online.”

However, she said travel agencies in the country, numbering more than 2,000, are slowly coping and evolving with the competition brought about by online bookings. “We are also using online services, and some of the big travel agencies have incorporated online booking into their services. They are now 24/7

available,” Victoria said. She added travel agencies are now also offering specialized packages that cannot be availed of when booking online.

There are also concerns that travel agencies have with the IATA, which is now requiring weekly reporting, making it financially difficult for travel agencies to operate long term.

Remittance of payments from travel agencies has been reduced from 15 days to seven days.

“There is a big impact, as travel agencies give their corporate accounts credit terms,” Victoria said, adding that corporate accounts are usually given 30 to 60 days to pay for the services they provide.

“It is now difficult to stretch funds. It is a lost of business, especially on the part of smaller travel agencies. Pahabaan ng pisi,” she said. Victoria said travel agencies in the country have manpower capacities anywhere between three and 50.

Victoria said they welcome the appointment of Teo, since she comes from the same sector, being a travel agent herself who rose from the ranks. She believes the new secretary of the Department of Tourism (DOT) sees the significant role travel agencies play in the country’s tourism industry.

“Although she comes from a different organization, Teo has the same background as all of us working in travel agencies and tour operators in the country. We fully expect her tenure as DOT secretary to continuously look after the welfare of our sector in the tourism industry,” Victoria said.

She added: “The one thing that has been overlooked since every player in the industry started going online is the fact that travel agencies and tour operators remain the backbone of tourism.”

Victoria said the PTAA is more than willing to work closely with Teo, not just on travel agencies concerns, but on the overall development of the local tourism industry.

“There are issues that we would likewise request Teo to look into and address. Over the years, we have a track record of working closely with the DOT,” Victoria aired.

Victoria said they believe the momentum gained during the term of outgoing Tourism Secretary Ramon Jimenez Jr. will continue under Teo’s helm and remain as one of the country’s sunshine industries.

“President Duterte knows how economies work in the provinces, and how greatly tourism creates job opportunities for those living there. This can only speed up the development of tourism destinations across the country,” Victoria stated. Teo, a veteran in the country’s tourism industry, is the president of the National Association of Independent Travel Agencies, which is composed of small and medium travel agencies.

The PTAA is the biggest national tourism association in the country.

www.businessmirror.com.ph

COURTESY CALL ALC Group of Companies Chairman D. Edgard A. Cabangon shares a light moment with President-elect Rodrigo R. Duterte during his courtesy call in Davao City.

Stimulus. . .

Continued from A1

easing is in store, should risks to growth materialize. Taiwan may be the first to cab off that rank, with most economists surveyed by Bloomberg predicting an interestrate cut at Thursday’s scheduled central bank meeting. While the region’s stocks sold off on Friday, the picture was more mixed on Monday, with some Asian stock benchmarks, including in the Philippines and Japan, advancing.

A surge in the yen has made further Bank of Japan action more likely, while the emerging Asian currencies took a hit from the Brexit uncertainty.

From India to China to the Philippines, the region’s economies still have the benefits from urbanization and swelling middleclass demand for consumer goods and services. Most nations are also led by governments championing infrastructure investment, something China is keen on funding through its new Asia Infrastructure Investment Bank.

Outside of Japan, central banks

have positive interest rates policymakers can lower to prop up growth, while fiscal stimulus is already on the cards, or under way, in China, Japan and the Philippines. Analysts differ on which lever would be relied upon across the region.

“In the scenario where Brexit triggers a more generalized weakening of global growth, we think Asian economies, by and large, will use monetary-policy easing as a first line of defense to support growth,” Credit Suisse analysts, including Santitarn Sathirathai, wrote in a note.

Liquidity Injections

Their counterparts at Morgan Stanley said that, aside from liquidity injections and potential cuts to banks’ required reserve ratios, “if growth headwinds persist, we expect policy-makers to respond first with fiscal easing, particularly if the capital flows situation remains volatile; central banks may be constrained in cutting interest rates immediately as that could add to depreciation pressures.”

An area of agreement: trade links with the UK are relatively small, generally below 2 percent of total trade for each country, according to Standard Chartered Plc. A bigger threat would be posed by sustained market volatility or a severe slowdown in the euro area given direct trade ranges from about 10 percent to 15 percent of total trade for each economy. “The direct growth impact of Brexit, while negative, should not be significant for Asia,” Standard Chartered economists, led by Marios Maratheftis, wrote in a note. “Asia’s fundamentals should prove resilient, particularly when compared to the initial sell-off in financial markets.”

Here’s how a Brex it spi l lover could play out for the main Asian economies:

China

The world’s biggest trading nation and No. 2 economy, China sent 16 percent of its total exports to the EU in 2015, including 2.6 percent to the UK. Any notable slowdown in Europe would add to a growth headwind for China at a time when policy-makers are already battling to assure their minimum 6.5-percent expansion target for gross domestic product.

A 1-percentage-point drop in EU GDP growth could lower gains in Chinese exports to the region by 7 percentage points and shave 0.2 percentage points off China’s GDP growth, according to Bloomberg Intelligence. A renewed slowdown could also trigger fresh capital outflows. The People’s Bank of China stands ready to juice the system with cheap liquidity, if needed, and

the government has room to spend.

Authorities have also responded by fixing the currency lower.

Japan

Safe-haven inflows into the yen since the Brexit results have sent it to the strongest against the dollar since 2013—hurting prospects for Japanese earnings and undermining the case for domestic investment and faster wage gains. The Bank of Japan is forecast by most analysts to step up monetary stimulus at its next scheduled meeting, in late July, if not before. The administration of Prime Minister Shinzo Abe has previously pledged to assemble a fiscal package later this year. With Japanese-made products and components accounting for a significant share of the 15 percent of Asian exports that go to Europe, officials haven’t ruled out intervening to sell the yen.

India

Brexit comes at a delicate time for India. Central Bank Governor Raghuram Rajan surprised markets earlier in June by announcing plans to leave the post in September, posing significant uncertainty for policy making in the near term. Brexit adds another complication and could prolong market volatility. Over the medium term, analysts say India should weather the Brexit storm, having reduced its current-account deficit and bolstered foreign investment. The Reserve Bank of India has made clear it stands ready to support orderly markets.

South Korea

The government of Asia’s fourthlargest economy on Tuesday announced a 20-trillion won ($17 billion) fiscal package designed to bolster growth as policy-makers undertake a restructuring of the nation’s big manufacturers. In its statement on plans for the second half of the year, the Park administration said the measure will include a supplementary budget of about 10 trillion won to be used mainly for job creation and support for regional districts in the country.

Credit Suisse are among those projecting at least one more rate cut by the Bank of Korea this year.

Others

A mixed outlook. Hong Kong and Singapore, as smaller, open economies, are among the more vulnerable, according to both Nomura and Credit Suisse analysts.

Nomura and Morgan Stanley identify the Philippines—where stocks climbed on Monday and an incoming president has pledged to boost spending—as among the most resilient. Bloomberg News

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Thursday, June 30, 2016 A3

PPP Center chief wants Duterte to focus on nine pending deals

By Lorenz S. Marasigan

W

@lorenzmarasigan

ith the infrastructure gap that the Philippines is facing today, the outgoing chief of the government’s main infrastructure development body hopes that the team of President-elect Rodrigo R. Duterte will put prime importance to the deals that were not concluded during his term.

Andre C. Palacios, the executive director of the Public-Private Partnership (PPP) Center, said there are nine infrastructure deals—eight of which are from the transport department—that are currently in limbo.

“Our hope is that the projects that are very close to bidding can

actually be brought to completion.

Further postponement will only result in delays of delivery of service,” he told the BusinessMirror.

“If we go back to square one, we will easily lose a year, and people need infrastructure.”

He cited, for example, the P50.18-billion deal to develop a

prison facility in Nueva Ecija.

“Muntinlupa was designed to accommodate 9,000 inmates, but there are about 22,000 prisoners confined in that space. Imagine the living conditions in that facility,” Palacios said.

When completed, the prison facility can accommodate 26,880 inmates, including staff housing and administrative buildings, areas for rehabilitation, such as sports, work and religious activity, and will be installed with highsecurity equipment.

The winning concessionaire for the said deal will also hold the right to maintain the modern prison facility, which is envisioned to free up space at the current penal facilities, such as the New Bilibid Prison and the Correctional Institution for Women.

Also pending is the P108.2billion contract for the development of five airports around the country. The program aims to ad-

If we go back to square one, we will easily lose a year, and people need infrastructure.”—Palacios dress the growing demand for air connectivity around tourist spots and business hubs. The state decided to bundle the contracts into two to make them more enticing to investors.

The first package consists of the Bacolod-Silay Airport (P20.26 billion) and Iloilo Airport (P30.40 billion), while the second bundle is composed of the New Bohol or Panglao Airport (P2.34 billion), Laguindingan Airport (P14.62 billion) and Davao Airport (P40.57 billion).

The other deals in limbo are the P19-billion modernization of the Davao Sasa Wharf, which aims to improve trade access to Mindanao and the Philippines by providing

a dedicated containerized port in the region; the P298-million modernization of the Land Transportation and Franchising Regulatory Board’s information-technology infrastructure; and the contract to operate and maintain the Light Rail Transit Line 2.

Considered as one of the best and most improved infrastructure programs in the world, the key infrastructure thrust of the Philippine government went off with a rough start. It slowly gained traction after some hiccups, and allowed the government to gain billion of pesos in premium payments.

“The program, I think, was successful in three things: One, it brought benefits to the people,

which are now felt. Second is that it was a catalyst for reforms— from policy, to process and also to way that agencies think of how to undertake projects,” Palacios said. “Third, which I think is very important, is that it was a barometer of good governance.”

Through the course of President Aquino’s term, the team of former PPP Center Executive Director Cosette V. Canilao and the camp of Palacios managed to award 12 deals with a cumulative worth of P217.4 billion. Three of these deals are now up and running.

“I think they understand the urgency of the problem,” he said. “My wish is for the next team to sustain the success of the program.”

The Aquino administration has gift-wrapped a pipeline of 53 projects worth P1.5 trillion for Duterte’s team. These projects are intergenerational endeavors, with 20-year and 30-year contracts spanning several presidencies.

BMReports BusinessMirror

A4 Thursday, June 30, 2016

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‘Determined attacker’ can still do mayhem at Naia

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By Recto L. Mercene

@rectomercene

ESPITE airport authorities’ assurance that “we have implemented heightened security at the premier airport,” there still remains the possibility that a criminal of the same bent as the terrorists in Turkey would be able to get through the Ninoy Aquino International Airport (Naia).

“Heavier screening may necessarily take more time. We ask for cooperation from passengers for their own safety,” Manila International Airport Authority Spokesman David de Castro said.

He said: “Part of the airport surveillance [system] are the perimeter fences and vehicle and baggage scanners.”

“The passenger screening is in place, as usual,” de Castro assured.

Istanbul Ataturk Airport in Turkey was attacked by three terrorists armed with bombs and guns on Tuesday, and killed at least 36 people and wounded 147 more.

Two of the three terrorists in the airport attack were at the international terminal, while the third was in the nearby parking lot. All three detonated suicide vests.

That one of the attackers was able to detonate his suicide vest in the parking lot is worrying many security people at the Naia.

They fear that the local would-be terrorist would be able to detonate his bomb-loaded vest at the parking lot or outside the terminal.

The entrances to the Naia are manned by members of the Airport Police Department (APD).

They usually take cursory examination of luggage in cars or simple glance at the passengers

before waving them through.

There is no body inspection.

However, the head of the National Police Aviation Security Group (Avsegroup), Chief Supt. Francisco Balagtas assured the public that the bombing would not happen in his turf, saying they are always on heightened security alert.

“We maintain the same strict policy, it is continuous, especially during this change of administration,” he told the BusinessMirror.

The Avsegroup keeps a strict surveillance of passengers within the airport, Balagtas said. However, other police units are in charge of the airport’s environs.

“The perimeter area is outside of our own turf,” he said. He added that other major airports, such as Davao, Mactan-Cebu, General Santos, Puerto Princesa, Laoag, Legazpi, Cagayan de Oro and others, are always under strict supervision.

Balagtas said he is not trying to blame anyone. “We do our job where we are required and we discipline our own people.”

“We maintain checking passengers, luggage and personnel, there’s heightened alert, its continuous, especially there is a change of administration,” referring to the assumption to office of President-elect Rodrigo R. Dutere.

Asked for his comment about the airport security arrangement in the face of the Ataturk Airport terrorist bombing, the Airport Police chief, Jesus Gordon Descanzo, who is concurrently the assistant general manager for security and emergency services, said Balagtas “should be able to

answer the question.”

“We are leaving to give way to a new set of airport police officers,” he said.

Meanwhile, the president of the Filipino community in Turkey, Elma Trinidad, said there were no Filipino casualties in the airport attack.

She said departing and arriving flights at the Ataturk airport have been canceled as authorities continue investigation.

“Roads to airports have been closed. Departing and arriving flights have also been canceled.

We’ve been told to avoid public places, especially those where people

gather for rallies, shopping malls and bus stops,” she said in Filipino.

Filipinos in Turkey are asked to remain vigilant and to avoid public places for the meantime.

Turkish Prime Minister Binali Yildirim said findings so far point to the Islamic State as responsible for the attack.

Plan aims to transform Mindanao into industrial hub in 6 years

By Cai U. Ordinario

@cuo_bm

T

he Bangsamoro Development Plan (BDP 2) aims to turn Mindanao into an industrial hub in six years, according to the Japan International Cooperation Agency (Jica).

The BDP 2, or the Mindanao medium-term development plan, crafted by Jica in cooperation with the Bangsamoro Development Agency (BDA), aims to see faster industry growth by 2022.

The BDP 2’s projections aim to grow Mindanao-based industries by 20.7 percent annually, to contribute some P24.939 billion to Mindanao’s gross regional domestic product (GRDP).

“The share of agriculture in the GRDP should decrease significantly, from 65 percent in 2012 to less than 50 percent,” the BDP 2 stated.

“The share of industry should increase significantly from 4.5 percent in 2012 [while] the service GRDP would increase, induced by

the development of agricultural and industrial activities,” the BDP2 document added.

Once implemented, the BDP 2 aims to grow the GRDP of Mindanao by 7.4 percent annually. This translates to a GRDP of P191.836 billion by 2022.

Other sectors, such as services, are projected to grow 11.5 percent annually until 2022. This will translate to a contribution of P80.571 billion to Mindanao’s GRDP. Agriculture is expected to post an annual growth of 3 percent and contribute a total of P86.326 billion in 2022.

“We are optimistic that the peace process in Mindanao will be sustained despite the challenges. The plan will be useful for integrated development planning for the whole Mindanao, and outlines strategies for future development assistance that the region will need to achieve inclusive growth,” Jica Chief Representative Susumu Ito said.

The medium-term plan will also

We are optimistic that the peace process in Mindanao will be sustained despite the challenges.

The plan will be useful for integrated development planning for the whole Mindanao and outlines strategies for future development assistance that the region will need to achieve inclusive growth.”—Ito increase labor productivity by 3.1 percent and add as many as 1.778 million jobs annually.

Labor productivity will increase the fastest in services at 3 percent annually, while industry will post a growth of 2.5 percent every year. Agriculture is expected to post a growth of 2 percent annually.

The majority of jobs that will be created through the plan will be in

agriculture and services.

Jica estimates that jobs in agriculture will reach 917,000 a year, while services is expected to rise to 731,000 a year. Industry will see an addition of 131,000 jobs per year.

This, Jica estimates, will increase per-capita GRDP of Bangsamoro to P47,685 in 2022, which is equivalent to 72 percent of the per-capita GDP in 2012.

The plan will be able to achieve these projections through 27 anchor projects for the Bangsamoro, including those for agriculture, agro-industry, fishery, and logistics infrastructure, such as ports, airports, roads, as well as power supply, river-basin management and flood control.

These projects were identified based on consultations with stakeholders, including national and regional government agencies, local government units, academe, development partners, civil societies and the private sector, among others.

It was also presented and consulted with oversight agencies, such as the National Economic and Development Authority, Office of the Presidential Adviser on the Peace Process, Departments of Finance and Budget and Management. “ The BDP is not only historic but a lso an indispensable par t of n at ion- bu i ld i ng. We congratulate the BDA, MILF [Moro

Northern Palawan needs better Busuanga airport continued from a1

“The beauty of realigning the runway is that the present operations in Busuanga would not stop,” he said. The incoming Duterte administration, Glorioso said, would have to decide to go on with the project to entice more tourists into the country.

However, before the runway could be realigned the government has to issue a presidential proclamation to expropriate the surrounding lands reportedly owned by the Bureau of Animal Industry (BAI). There is also the King Yulo Ranch (KYR) in

the area, owned by the wealthy Yulo family that used to own the Yulo Canlubang Sugar State.

“Nobody could buy any land near the airport to speculate on real estate because all belongs either to the BAI or the KYR,” Glorioso said.

The Philippines lags behind its neighbors in tourist count because of the lack of infrastructure. While Singapore, Hong Kong, Malaysia, Taipei and Bangkok averaged about 15 million tourists a year, the country could hardly hit the 5-million mark last year.

The rush to build resorts in any island in the Calamian was pre-

cipitated by the construction of the world class Amanpulo Resorts at the Pamalican island east of the Calamian in the early 2000.

A Japanese company had earlier proposed to build a runway in nearby Coron island, apparently with an eye to corner the bourgeoning Palawan tourist market, according to Rodante Joya of the Civil Aviation Authority of the Philippines (Caap).

The offer, however, was turned down, owing to the existence of the Francisco B. Reyes Airport. “There is a rule that no airport could be built nearer than 24 kilometers from another airport,” Joya said.

Busuanga also belongs to the Calamian Group of Islands in Northern Palawan, an area touted to evolve in the near future as the “Caribbean playground” for the rich and famous once a planned international airport becomes a reality there, according to an aviation official.

The outgoing Aquino administration, which was accused of underspending in infrastructure, had run out of time to build this dream international airport and runway networks. It is hoped that the Duterte administration would make the planned project a reality.

Already dotted with dozens of

resorts, the Northern Palawan area may soon eclipse Boracay as the country’s preeminent tourist destinations, Glorioso added.

Aside from Busuanga, the other islands in the group includes: Coron, Calauit (where African animals roam); Malcapuya, Banana, Pass, Calumbayan and several minor islets. Adjacent to Coron is Culion Island, which was once an island for lepers.

“Boracay would fade into the background if an international airport could be built in Busuanga, the largest of more than ten islands comprising the Calamian,”

Islamic Liberation Front] and J i c a f or t h i s a c h i e v e me nt ,” Bangsamoro Transition Commission (BTC) Chair man Mo hagher Iqba l said.

Dat a f rom t he Ph i l ip pi ne St at i st ic s Aut hor it y showe d that poverty incidence in the Autonomous Region in Muslim Mindanao (ARMM) was at 59 percent for the first half of 2015, higher than the national average of 26.3 percent.

Since the 1960s the Japanese government, through Jica, has been a strategic development partner of the Philippines. Japan’s Ministry of Foreign Affairs and Jica extended some ¥15.1-billion development assistance in Mindanao as of 2013.

In 2002 Jica has implemented Japan’s official development assistance for Mindanao under the ARMM Social Fund for Peace and Development and some 30 projects under the Japan-Bangsamoro Initiatives for Reconstruction and Development.

Glorioso said. “Right now it [Francisco B. Reyes Airport] could only accommodate small turbo-prop aircraft because of terrain limitation, as the runway is only 1.6 km long,” he added.

Today, Philippine Airlines, Cebu Pacific and some chartered flights operates out of the Busuanga airport, which was renamed Francisco R. Reyes Airport in November 2008.

Reyes was the mayor of Coron from 1936 to 1939 who donated the land that forms the current airport complex. The Caap said the airport is classified as a Class 2 principal (minor domestic) airport.

Asean

BusinessMirror

www.businessmirror.com.ph

Why is infrastructure so important?

Asean-EU Perspective

HENRY J. SCHUMACHER

I

nfrastructure is vital for the long-term growth and competitiveness of emerging economies. In Asean improvements to connectivity and energy supplies are helping to improve the standard of living and making countries in the region increasingly attractive for investors. Expanding economies like the Philippines are demanding an even greater focus on the development of infrastructure. It is good to see that the incoming Duterte administration is committed to develop much-needed infrastructure. Incoming Budget Secretary Benjamin E. Diokno is looking at spending P800 billion to P1 trillion in this sector, with emphasis on infrastructure development and agriculture.

Existing infrastructure gaps are handicapping the Philippines’s productivity and competitiveness. Traffic congestion in Metro Manila and Metro Cebu is severely reducing the productivity of millions of workers every day, while international gateways for passengers and cargo, such as the Ninoy Aquino International Airport and the Manila port, struggle to keep up with increasing demand. Therefore, if economic growth is to be sustained, there is an urgent need for the development of major infrastructure projects that meet high international standards. For that to happen, there is a requirement for capital investment, innovation and knowledge/technology transfer of the latest international trends. As a global leader in high standard, technologically advanced, innovative infrastructure development, the European Union (EU) infrastructure sector has the potential and is willing to contribute to the development of vital infrastructure projects across the Philippines. However, there are major barriers that hinder the participation of EU infrastructure companies in infrastructure-development initiatives in the Philippines, such as the unfair licensing system of the Philippine Contractors Accreditation Board, limiting foreign contractors to 40 percent, although there is nothing in the law that prevents 100-percent ownership of foreign contractors. If these are addressed, it will open the way for EU companies to contribute to infrastructure in the Philippines that facilitates economic growth through better connectivity for international tourist arrivals, less costly transportation of imports and exports, and more productivity due to reduced commuting times for professionals both in Manila and other urban areas.

Let me briefly address another important issue: Brexit. It is certainly unfortunate that UK citizens have decided in a national referendum last week to leave the EU. We have seen the initial negative reactions with regard to stock exchanges and currencies; we also saw the reactions by British citizens who are trying to get a second referendum to reverse the negative vote; and the reaction of Scotland not to approve the referendum in the Scottish parliament and possible look at a referendum to leave the UK and if positive, to then join the EU. Given the fact that exit negotiations will only start not later than October and that the effective exit will not take place within the next two years, there is time to watch the drama to unfold. The Brexit is certainly a wake-up call for the EU to study the negative reactions against not-so-democratic Brussels, which are not limited to the UK; they are raised in other EU member-countries also. It is time for a constructive restructuring of the EU; more effective leadership is needed to secure the EU as a valuable global player.

Huawei allots 350M baht for Thailand open labs

H

uawei Technologies looks set to invest 350 million baht to establish an “open lab” for Thai small- and mediumsized enterprises and tech start-ups.

Science and Technology Minister Pichet Durongkaveroj, who joined a five-day trip to China, led

by Deputy Prime Minister Somkid Jatusripitak, to build up trade and investment, said Huawei’s open lab is expected to begin operating in the fourth quarter.

The move comes after the Chinese telecom equipment giant signed a memorandum of understanding with Thailand’s National Science and Technology Development Agency and the National Innovation Agency on Sunday to collaborate on Thailand’s digital and smart city development.

The scope of cooperation includes the establishment of an innovation center that will focus on smart cities, the Internet of Things, cloud computing, public safety and smart power grids. It also covers joint research related to information and communication technology, humancapital development, and support of Thai start-ups.

Huawei opened its Asean regional headquarters covering 4,380 square meters on Wireless Road in recent months with an investment of $12 million, underscoring its long-term commitment to the Thai market and continued growth in the region.

The company declared in June it earmarked a bigger budget to build brand awareness of its smartphones this year in order to boost its Thai market share from 2 percent last year to 15 percent in 2017. It spent $600 million on marketing to promote its smartphone brand locally the past five years.

“We have been working closely with different government agencies for a sustainable project that will lead to digitalization of the country,” said David Sun, president and chief executive of Huawei Southeast Asia.

In another development, the state telecom firm CAT Telecom Plc. signed a memorandum of understanding on Sunday with China Telecom Global for collaboration on a submarine cable terrestrial network. ICT Minister Uttama Savanayana said China Telecom is one of many Chinese companies that have shown interest.

The Cabinet already approved a budget of 20 billion baht this fiscal year for the ICT Ministry to construct hard infrastructure under the digital economy scheme. Of the total, 15 billion is slated to be invested in broadband Internet networks for 39,000 villages, with 5 billion for submarine cables.

There are some 79,000 villages in the country, 40,000 of which already have broadband Internet access. Uttama said broadband Internet networks for the 39,000 villages are expected to open for bids in July. MCT

Editor: Max V. de Leon • Thursday, June 30, 2016 A5

Indonesia to limit rupiah gains from tax amnesty

I

ndonesia’s central bank said it will intervene in the foreignexchange market to prevent the rupiah from gaining too much from a possible increase in inflows following a recently passed tax-amnesty law.

Bank Indonesia expects the program to result in excess funds in the market, which it can absorb using its instruments in the currency spot market and through deposits, Deputy Governor Hendar told reporters in Jakarta late on Tuesday.

The rupiah rallied 1.2 percent against the dollar, after the parlia-

ment passed a bill on Tuesday that allows individuals to declare and repatriate previously unreported assets held abroad. The central bank estimates the amnesty— which takes effect in July—will draw back 560 trillion rupiah ($42.6 billion) of inflows.

“After the tax amnesty was

Too much rupiah weakness isn’t good, but if it strengthens too fast, then that’s also not good.”

—Adityaswara

passed, positive sentiment has returned,” Senior Deputy Governor Mirza Adityaswara told reporters.

“The most important thing for Bank Indonesia is that the situation remains stable. Too much rupiah weakness isn’t good, but if it strengthens

too fast then that’s also not good.”

The currency advanced 0.1 percent to 13,165 a dollar as of 8:30 a.m. in Jakarta, set for the highest close since April 21, according to prices from local banks compiled by Bloomberg. The central bank plans to issue rules on money markets and negotiable certificates of deposit, while also considering to extend the maturity of its foreign-exchange bills to absorb the inflows.

The full impact of the tax amnesty will probably be seen in the fourth quarter, with GDP expanding 5.3 percent, as the government boosts spending, Deputy Governor Perry Warjiyo said. The central bank expects economic growth for the full year to reach 5.1 percent to 5.2 percent, he said. Bloomberg News

Cambodia says tests confirm Angkor boat 8 centuries old

In this undated photo provided by French Institute of Asian Studies in Paris, the Angkor-period temple of Banteay Top, within the Banteay Chhmar acquisition block, in Cambodia is shown. Lidar revealed details of a large earthen enclosure and additional temple sites and occupation areas in the vicinity of this large stone temple. An Australian archaeologist says he and colleagues have found evidence of previously undiscovered medieval urban and agricultural networks surrounding the ancient city of Angkor Wat. AP

T

ests have confirmed that a wooden boat found buried in a dry riverbed near Cambodia’s famous Angkor Wat temple complex is from the early 13th century, an official at the agency overseeing the archaeological site said on Monday.

Apsara Authority Spokesman Long Kosal said tests by a research institute in New Zealand confirmed the age of the 12.8-meter (42-foot) -long boat, which was carved from a single tree trunk. He said it is the oldest boat ever found

in Cambodia, and its discovery will be useful for scholars of the Angkor era, when the Khmer empire dominated the region from the 9th to 15th centuries.

A farmer discovered the boat in April while digging mud from the riverbed, several kilometers from the temple complex. The boat has been sunk in a pond in front of the temple to keep it preserved pending restoration for public viewing.

An Australian archaeologist announced earlier this month that

he and colleagues have found evidence of previously undiscovered medieval urban and agricultural networks surrounding the ancient city of Angkor Wat. Using high-tech lasers to scan the Cambodian jungle, Damian Evans and colleagues said they found traces of extensive networks surrounding the monumental stone temple complex at Angkor Wat. Evans said their findings could further our understanding of Khmer culture and throw into question traditional assumptions about

the decline of the empire.

For years, experts have proposed a variety of reasons for the collapse of the Khmer civilization in the 15th century, including invasions

by Thai armies, social and religious change, internal power struggles, and overpopulation and prolonged drought which forced populations to relocate to southern Cambodia.

But Evans said their laser maps showed no evidence of relocated, dense cities in the south and that it wasn’t clear there was any such mass migration.

Singapore web-site founder jailed for anti-foreign content

A

court in Singapore on Tuesday sentenced the founder of a web site that published anti-foreign content to eight months in jail after he pleaded guilty to sedition.

Yang Kaiheng, 27, set up “The Real Singapore” web site together with his Australian wife, Ai Takagi, and helped distribute accounts from visitors, some of which contained inaccuracies, the court said.

One post alleged that foreigners in a multinational corporation were favoring their countrymen for jobs over Singaporeans. Another con-

tribution detailed how a husband’s affair with a Chinese citizen broke up a family.

Although these posts were not viewed as inaccurate, the court said they violated the Sedition Act, used to deter inhabitants from promoting hostility in the multicultural city-state.

Takagi was convicted of similar charges and started serving a 10-month sentence from April, the harshest ever imposed under the act. She admitted to the role of editor and using a false male identity to post fictitious stories

of obnoxious foreigners.

Yang distanced himself from the web site’s content during much of the trial, saying he was not involved in editing or approving it before abruptly pleading guilty to six counts of sedition last Friday.

District Judge Chay Yuen Fatt said the web site was the “exploitation of such [nationalistic] feelings, purely for financial gain and not for noble ideologies, misguided or otherwise.”

It was “the brainchild of the accused” and he encouraged Takagi to “kick up a storm on the Internet

so as to generate more revenue,” the judge said.

The web site had close to 13 million views a month and its readership reacted with anger, with some calling for harsh curbs on foreigners, court documents said. From December 2013 to April 2015, the web site reportedly had revenue, mostly from advertising, of close to A$474,600 ($351,750).

Yang, who owns two ramen shops with Takagi, was expressionless and looked straight ahead as the sentence was dealt. He is expected to start serving his jail term next month. AP

TheBroa

Business

A6 Thursday, June 30, 2016

‘Mission change’ of Duterte’s

By Lenie Lectura, Cai U. Ordinario, David Cagahastian, Catherine N. Pillas, Jovee Marie N. dela Cruz, Bianca Cuaresma, Lorenz S. Marasigan, Mary Grace Padin & Rea Cu

F

ilipinos will witness today the inauguration of President-elect Rodrigo R. Duterte as the 16th chief executive of the Philippines.

Helping in the quest of the former Davao City mayor for “change” is a new a economic team that will inherit from the Aquino administration an economy that grew by an average of 6.2 percent from 2011 to 2015, according to data from the Philippine Statistics Authority (PSA). Former Socioeconomic Planning Secretary Arsenio M. Balisacan said this was “remarkable,” as this was achieved without resorting to unsustainable borrowings and short-lived portfolio capital.

The increase in the price of con-

sumer goods in recent years had also been tame, according to PSA data.

Inflation last year averaged only 1.4 percent, and indications point to the possibility that the rate will not breach 2 percent this year, barring major typhoons or calamities.

However, the new Cabinet will also inherit a deluge of concerns that include traffic congestions; rising cases of criminality and drug abuse; peace and order in the southern tip of the archipelago; jobless growth; poor Internet connectivity; and poverty.

His vow to squarely address these

concerns propelled Mr. Duterte to the presidency. Keeping in mind his promise to the nation, the new Philippine President immediately assembled an economic team to help him resolve problems that have hounded the country for decades.

Before they even formally assumed office, the new President’s economic team has already earned praises from business groups, such as the Employers’ Confederation of the Philippines. Businessmen said President Duterte has a “good economic team,” one that is capable of doing the technical work for him.

n CARLOS G. DOMINGUEZ

the bureaucracy will also make the government “more responsive to the needs of its citizens.”

Dominguez was hesitant to accept the position of the Duterte administration’s finance chief. In fact, he had initially rejected the new President’s offer to join his Cabinet.

Lawyer Salvador Panelo, who earlier served as spokesman of Mr. Duterte, said Dominguez declined the offer because of his previous business commitments. The new finance secretary owns the Marco Polo Hotel, and has several other business interests in Davao City.

He had also served in the Cabinets of former Presidents Corazon C. Aquino and Fidel V. Ramos.

Dominguez helped craft Mr. Duterte’s 10-point socioeconomic agenda, which was presented to the media during the recently concluded Davao Business Summit. The summit, which was the brainchild of Dominguez, aimed to solicit the business community’s inputs to the new administration’s economic plan.

The finance chief told businessmen that the new administration will review the country’s tax system. Dominguez said the Duterte administration is keen on lowering the income-tax rate so Filipino workers could have more disposable income. The new administration will also look into cutting corporate tax rates, which remain one of the highest in Asean.

“We will definitely review the tax system, initially to update the income-tax brackets and eventually to lower corporate and individual tax rates,” Dominguez said in his speech during the Davao Business Summit.

The new finance chief said the Duterte administration will move away from the chronic underspending seen in recent years.

Aside from hiking infrastructure spending, Dominguez said the new government will “invest heavily” in building up the nation’s human capital.

“The DOF should play a role in making our growth more inclusive.

This can be achieved by: rethinking our investments incentives; reconfiguring our taxation system to build a robust middle class; and reinventing our trade and tariff policies, so that we may take advantage of free trade without sacrificing the development of our industries,” Dominguez said.

He said part of the economic team’s plan is to develop rural areas and modernize the farm sector. “Farming should no longer be the poverty trap it has been for generations.”

To make it easier for businessmen to set up shop in the country, Dominguez said the new administration is bent on reforming the bureaucracy. He said reforming

n AMANDO M. TETANGCO JR.

will be submitted to Congress by the Duterte administration sometime in August, to ensure that it is “responsive” to the programs of the incoming administration.

To be reviewed is the proposal already prepared by former Budget Secretary Florencio B. Abad.

Diokno said it might take more than 30 days for the agency to review the budget proposal already prepared by the DBM. However, he said there would still be time to enact the General Appropriations Act before the start of the 2017 fiscal year without resorting to a reenacted budget.

Under the Constitution, the President should submit to Congress within 30 days from the opening of every regular session his proposed general appropriations bill, indicating the budget for expenditures and sources of financing.

Budget Undersecretary Richard E. Moya earlier said the DBM was finalizing the proposal and had already finished all the “technical aspects” of budget prepration.

But, he said, the incoming Duterte administration is free to revise the proposal.

The review to be undertaken by Diokno would dwell on the budgets for President Duterte’s pronounced policies, such as the reevaluation of the Conditional Cash-Transfer Program, although the total proposed amount of P3.3 trillion as national budget for 2017 is unlikely to be modified.

Diokno had earlier declared that he is willing to widen the budget deficit to enable the government to raise infrastructure spending to as much as 7 percent of GDP.

Before his appointment as budget chief of the Duterte administration, Diokno had been vocal about raising the value-added tax rate to 15 percent so the government could have more funds to undertake infrastructure projects.

Secretary, Department of Finance (DOF)

Governor, Bangko Sentral ng Pilipinas (BSP)

The BSP is set to continue setting a cap on the growth of key goods and commodities in the country, as well as help alleviate poverty through financial inclusion.

Two-term BSP chief Tetangco said the country’s central monetary authority will remain committed to maintaining a low and stable growth of prices in the country.

“From the perspective of the BSP, we will continue pursuing our mandate of maintaining an operating environment of low and stable prices and financial stability,” Tetangco told the BusinessMirror.

“We will also be mindful of external developments, as we always have been. We also remain committed to improving financial inclusion, which we see will contribute to poverty alleviation and reducing inequality,” he added.

Inflation, or the rate of growth of key consumer goods in the country, has been within target for six consecutive years— from 2009 to 2014. The central bank missed its target last year, however, due to low prices of oil in the global market.

Inflation in 2015 hit 1.4 percent, falling short of the government’s target for that year at 2 percent to 4 percent. For this year, inflation for the first five months of the year averaged 1.3 percent, but central bank officials have earlier expressed confidence that it will return to normal levels toward the end of the year. This is premised on expectations that oil prices will rise, along with key food items, due to La Niña.

Tetangco said the BSP welcomes Duterte’s economic agenda, saying it has been received well by local markets. But, he said markets will see how this will be implemented.

“The incoming administration’s 10-point program reflects a coherent plan that puts emphasis on the most critical aspects of the economy that should sustain our economy on a positive upward trajectory,” Tetangco said.

“It has been well-received by the market, as it also evokes continuity in core economic policies. What is crucial now is the implementation. And that is what the markets will be watchful of,” he added.

n BENJAMIN E. DIOKNO

Secretary, Department of Budget and Management (DBM) Incoming Budget Secretary Benjamin E. Diokno said he will review the budget proposal for 2017, which

CARLOS G. DOMINGUEZ Secretary, Department of Finance

AMANDO M. TETANGCO JR. Governor, Bangko Sentral n

ARTHUR P. TUGADE Secretary, Department of Transportation

EMMANUEL F. PIÑOL Secretary, Department of Agriculture

BENJAMIN E. DIOKNO Secretary, Department of Budget and Management

ERNESTO M. PERNIA Secretary, Socioeconomic Planning

n ERNESTO M. PERNIA

Secretary, Socioeconomic Planning SOCIOEconomic Planning Secretary Ernesto M. Pernia has not formally laid out his agenda in his first 100 days in office, but he has made it clear that population control will be one of the major development priorities of the new administration.

Pernia said the Duterte administration aims to highlight the importance of the reproductivehealth law. He said this will allow the country and individual Filipino households to make greater investments in child care and overall human capital.

“To the extent that economic development is of, by and for the people, population must be at the center of any development plan, strategy and policy,” Pernia said.

aderLook

sMirror

www.businessmirror.com.ph | Thursday, June 30, 2016

A7

s ‘impressive’ economic team

He also said increasing investments in human capital will help the country break the “intergenerational transmission of poverty.”

Poverty in the Philippines, according to economists such as those at state-owned Philippine Institute for Development Studies, can be transient or chronic.

Transient poverty is experienced by Filipinos who become poor due to shocks, such as sudden unemployment, disability, sickness, disasters and other similar unforeseen events.

Chronic poverty, meanwhile, is experienced by Filipinos whose parents were born poor and become and stay poor throughout their lives. This is the kind that causes intergenerational poverty, when being poor is passed on to the next generation.

Breaking this “vicious cycle” is the aim of the next administration through a focus on human capital through reproductive health.

“Step up implementation of the Philippine reproductive-health law to enable couples, especially the poor, to have informed choice on the number and spacing of children they can properly care and provide for,” stated the 10th socioeconomic agenda of the Duterte administration.

From 1985 to 2009, Pernia earlier said families with more children saw higher poverty incidence compared to those with smaller family households. Poverty incidence of those with only one child was at 19 percent in 1985 and at 2.9 percent in 2009.

In contrast, Pernia said the poverty incidence of households with nine or more children was at 59.9 percent in 1985 and at 46.4 percent in 2009.

Without family planning and reproductive-health interventions, Pernia said there would also be an increase in the number of poor people, as evidenced by the 2006 and 2009 numbers.

In 2009 there were 23.1 million poor Filipinos and 3.9 million families, more than the 19.8 million poor Filipinos in 2003, or 3.3 million households.

ng Pilipinas

n RAMON M. LOPEZ

Secretary, Department of Trade and Industry (DTI) ALFONSO G. CUSI Secretary, Department of Energy

The new trade secretary said he intends to continue providing support to the country’s micro, small and medium enterprises (MSMEs).

Lopez said his team is currently finding more ways to help MSMEs so they could create more jobs.

Lopez said his agenda will center on the vow of President Duterte to cut poverty in the Philippines and achieve inclusive growth.

“We will support these interventions to grow MSMEs, and build a conducive climate for business. But we’re brainstorming further on what kind of intervention we need to create that climate,” he said earlier.

“We want to improve the presence of MSME goods in the domestic market,” Lopez added.

He said he is keen on taking full advantage of the country’s free-trade agreements via the Asean and two bilateral agreements. Lopez said he wants more MSMEs to have access to export markets.

Prior to his appointment as DTI chief, Lopez served as executive director of entrepreneurshipadvocacy group GoNegosyo. He was also vice president and executive assistant to the president and CEO of RFM Corp.

n ARTHUR P. TUGADE Secretary, Department of Transportation

RAMON M. LOPEZ Secretary, Department of Trade and Industry

The new transportation chief has waged war against congestion on all fronts, laying out battle plans for rails, air hubs, seaports and roads.

In his first three months in office, Tugade said he will focus

on addressing the regulatory and infrastructure woes that have plagued the sector for years now.

Emergency powers, he added, are needed to mitigate on the short run the transport problems in the capital.

“It is a critical success factor.

We can get that for a maximum of two years. If, after two years, and I haven’t done anything to solve the traffic congestion, kick me out of my post,” he said. “Nothing in the emergency powers is capricious.”

Tugade believes the he can get Congress to see the sound rationale behind that power. Still, whether lawmakers approve quickly is a matter of their discretion.

“I believe that we have a lot of comrades that will give attention to this crisis in transportation,” he said.

Still, it having no such power, in the meantime, will not stop Tugade from improving the transport sector during his honeymoon period.

First, he said, he will address the need to settle the issue on rail procurement, ferry construction, and the installation of Internet connectivity in transport hubs, such as airports and seaports.

He will also refuse to handle the issue with old jeepneys with kid gloves.

Tugade added that he will not only focus on transport development in Metro Manila, he will spread it to other key cities, as well.

And although he has a lot of plans to lessen congestion in all fronts, he said commuters cannot expect immediate relief from all the stress that comes with traveling.

“In a problem created by decades of nonmanagement and neglect, don’t expect to be comfortable in 100 days, but we will give it keen attention,” Tugade said.

n ALFONSO G. CUSI

Secretary, Department of Energy (DOE) The new DOE chief vowed to continue some programs initiated by former Energy Secretary Zenaida Y. Monsada.

“Continuity of programs,” replied Cusi, when asked in an ambush interview about his agenda during his first 100 days as DOE secretary. He did not say which existing programs would be continued, but he hinted that “all other” programs would need to be discussed internally.

“Aayusin muna namin dito,” said Cusi before his separate meetings with the National Electrification Administration, National Power Corp., Power Sector Assets and Liabilities Management Corp., and Philippine Electricity Market Corp. started.

One thing is sure, though, Cusi said he would include on his agenda to keep power rates affordable to consumers. “We’re looking at it from the perspective of the consumer. I am here to lead based on the perspective of the consumer.”

Cusi, who is new in the energy sector, said he would closely assess the people working in the agency before he decides whether to replace them. “Parang basketball team iyan, eh. Titignan mo muna baka hindi naman kailangan palitan,” he said.

Nonetheless, he has lined up a few people whom he would bring with him when he assumes the DOE chief post.

“We still need to assess, but no surprises,” Cusi added.

Cusi is the choice of President Duterte as energy secretary.

Cusi, a former Manila International Airport Authority general manager, served as chief of the Philippine Ports Authority and Civil Aviation Authority of the Philippines during the Arroyo administration.

Earlier, Cusi said he will “strive to do my best to help the Duterte administration achieve electrifica-

tion of the entire country, ensure reliable, steady and affordable power supply, and work toward greater energy self-sufficiency as part of its agenda of sustained economic growth, social progress and political stability in the next six years.”

n EMMANUEL F. PIÑOL

Secretary, Department of Agriculture (DA) For the new DA chief, there is a need to go back to basics, and ensure that the agency would prioritize President Duterte’s vow of providing affordable food to Filipinos.

In his first 100 days in office, Piñol said DA officials and employees will be oriented on the road map set by the next administration for the agriculture sector.

Farmers affected by El Niño will be enlisted in a cash-for-work program. They will also be provided with seeds, fertilizers and other farm inputs. Fishermen will be given fishing boats and nets.

The new Cabinet official also plans to conduct a nationwide inspection of irrigation services, dredging of silted dams and provision of shallow-tube wells to secure sufficient water supply for the next rice-cropping season.

In preparation for a possible La Niña, he said the Philippine Crop Insurance Corp. will be directed to provide insurance to farmers in high-risk areas.

“The National Food Authority will also be directed to preposition sufficient rice and food supplies in areas expected to be affected by La Niña,” he added.

The DA, he said, will also immediately launch projects, such as the creation of a Color-coded Agricultural Guide Map and a National Food Consumption Quantification Survey.

The DA is also expected to launch Pagkain Para sa Masa, a project that will establish arroz­ caldo-feeding stations for street dwellers in Metro Manila; and Bantay Dagat, a project that will engage the Badjaos in cleaning coastal waters.

He said the DA, together with the DOH, DSWD and the Department of Education, will implement a community-based milk-feeding program, particularly in areas where farmers are involved in dairy production.

“Project-management teams will also be organized in coordination with the local government units of the country’s 10 poorest provinces, to ensure that the DA’s food-production program would also result in poverty alleviation,” he said.

House agenda

Incoming House Speaker Pantaleon D. Alvarez of Davao del Norte said the 17th Congress will prioritize the amendment of the 1987 Constitution, the Juvenile Justice Welfare Act and the revival of death penalty.

“Revising the present Constitution will be the first legislative item in the 17th Congress. We will change the form of the government from republican to federal,” Alvarez said.

He said he is also open to suggestions to amending the economic provisions of the 1987 Constitution.

“When you revise the Constitution you have to change everything, we need to tackle everything, either in constitutional convention or constitutional assembly,” he said.

Alvarez added that the 17th Congress will prioritize the revival of the death penalty to address the increasing drug-related crimes in the country.

He said the next Congress will also amend the Juvenile Justice Welfare Act, or the so-called Pangilinan law.

Alvarez said the next Congress will restore a previous law wherein

the minimum age of criminal responsibility was 9.

The previous law provided that a child 9 years of age or under at the time of the offense will be exempt from criminal liability, and will be committed to the care of his or her father or mother, or nearest relative or family friend in the discretion of the court and subject to its supervision.

Alvarez also said he is open to the proposal granting Mr. Duterte emergency powers to solve traffic problems in Metro Manila.

Last week former President and now Lakas Rep. Gloria Macapagal-Arroyo of Pampanga said she would file a bill granting President Duterte emergency powers when the 17th Congress opens its session in July.

Meanwhile, Alvarez said he would ask President Duterte to immediately convene the Legislative-Executive Advisory Council (Ledac) to identify the 17th Congress and Duterte administration economic and legislative agenda.

Alvarez said the council is mandated to determine and recommend socioeconomic development goals and to integrate the legislative agenda with the national development plan.

“As soon as President Duterte takes over and calls for the first Cabinet meeting, we will request the Ledac,” he said.

“We still don’t have an economic agenda for the 17th Congress; I am still waiting for the guidance of the Executive branch. I want to wait for the Ledac meeting to identify our priorities,” he added.

Inauguration

After President Duterte takes his oath of office and the traditional turnover ceremonies in Malacañang, Communications Secretary Herminio B. Coloma Jr. said he will meet with outgoing President Aquino.

After the meeting, Mr. Aquino will ride the presidential car back to his residence in Quezon City, as is customary for outgoing presidents at the end of their terms.

Supreme Court Associate Justice Bienvenido L. Reyes, an Aquino appointee but Mr. Duterte’s fraternity brother, will administer the oath of office to the incoming President.

Officials of the Duterte administration said only 627 persons were invited to the inauguration, in line with the new President’s propensity to keep ceremonies simple, or do away with them altogether.

The presidential inauguration, however, will be separate from the inauguration of Vice President Maria Leonor G. Robredo of the Liberal Party.

At the inauguration, Mr. Duterte is expected to deliver a short speech addressing the nation regarding his policies as President.

After the presidential inauguration, a simple reception for afternoon snacks, catered by Via Mare restaurant, will be served to the guests.

The menu would feature only five local dishes: lumpiang ubod (spring rolls with coconut); pan de sal with kesong puti (white cheese made from unskimmed carabao’s milk); and Vigan longganisa (sausage from Northern Ilocandia) grilled on the spot; monggo soup mixed with smoked fish; and alug­ bati (malabar spinach) in demitasse cups, fried saba (Carbava banana) slices and durian tartlet.

For drinks, guests will have a choice between homegrown delights pine-mango cooler and da­ landan juice.

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Thursday, June 30, 2016

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Trump breaks with party on trade as he threatens tariffs

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IN this September 12, 2012, file photo, glass, debris and overturned furniture are strewn inside a room in the gutted US consulate in Benghazi, Libya, after an attack that killed four Americans, including Ambassador Chris Stevens. Democrats on the House Benghazi panel said in a report on Monday, that security at the Libya facility the night of September 11, 2012, was “woefully inadequate,” but former Secretary of State Hillary Clinton never personally denied any requests from diplomats for additional protection. AP/IBRAHIM ALAGURI

‘Move on’ from Benghazi?

Republicans say it’s unlikely

W

ASHINGTON—Hillary Clinton says it’s “time to move on” after a congressional report on the deadly 2012 Benghazi attacks accused the Obama administration of lethal mistakes, but produced no “smoking gun” pointing to wrongdoing by the former secretary of state.

Not likely, especially in an election year with Clinton’s presidential rival—Donald Trump—lashing out. An 800-page report by a special House committee makes no direct accusations of wrongdoing by Clinton, who was secretary of state during the September 11, 2012, attacks that killed four Americans, including US Ambassador Chris Stevens.

Still, Republicans point to Benghazi as a major failure by the administration and by Clinton during her tenure leading the State Department. The issue is likely to shadow Clinton as she continues her bid for president.

“Four Americans died, yet no one has been fired. No one even missed a paycheck,” said Rep. Ed Royce, Republican- California, chairman of the House Foreign Affairs Committee. “Americans— including all our men and women serving overseas—deserve better.” Clinton, now the presumptive Democratic nominee for president, said the report by Republicans on the House Benghazi Committee took more than two

years and $7 million, but “found nothing to contradict” the findings of earlier investigations.

“I’ll leave it to others to characterize this report, but I think it’s pretty clear it’s time to move on,” Clinton said a campaign stop in Denver on Tuesday.

Republicans were not ready to let the issue go, especially with an election that will decide who occupies the W hite House and which party will control the House and the Senate.

T he Benghazi panel has scheduled a July 8 meeting to formally adopt the report—10 days before the Republican Nat iona l Convent ion beg i ns i n Cleveland. Sen. Kelly Ayotte, a New Hampshire Republican facing a tough reelection race, said the administration “ ignored a deteriorating security situation” in Benghazi, “and the State Department disregarded repeated requests for increased security.”

Trump was uncharacteristically quiet on the topic on Tuesday, but he has repeatedly blamed Clinton for the deaths in Beng-

hazi. Even after issuing the report the committee’s work is not over.

On Wednesday the panel will interview a witness who posted on Facebook that he was a crew chief based in Europe on the night of the attacks. A committee spokesman said the interview would be posted on the panel’s web site and any information he provides can be added to the report.

Democrats called the interview ridiculous. The Libya attacks have been political fodder from the start, given their timing in the weeks before President Barack Obama’s reelection, and that has not abated despite seven previous congressional investigations.

There has been finger-pointing on both sides over security at the diplomatic outpost and whether Clinton and the White House initially tried to portray the assault as a protest over an offensive, anti-Muslim video, instead of a calculated terrorist attack.

The prolonged investigation into the attacks has also been marked by partisan sniping. Republicans accuse the administration of stonewalling important documents and witnesses, while Democrats say the panel’s primary goal is to undermine Clinton’s presidential bid. Republican insistence that the investigation was not politically motivated was undermined last year when House Majority Leader Kevin McCarthy, Republican-California, suggested that the committee could take credit for Clinton’s then-slumping pol l numbers.

His statements helped dash McCarthy’s chances of becoming House Speaker.

The committee interviewed more than 100 witnesses and

reviewed some 75,000 pages of documents, but an almost accidental discovery by the panel last year has shadowed Clinton’s candidacy. The committee disclosed that she had used a private e-mail server to conduct government business, while serving as secretary of state, a practice that has drawn widespread scrutiny, including an Federal Bureau of Investigation investigation.

A l ready bit terly pa r t i sa n, Tuesday’s release of the report exposed divisions within Republican ranks. Reps. Mike Pompeo of Kansas and Jim Jordan of Ohio issued a separate report slamming Clinton and the Obama administration, with Pompeo telling reporters that the former first lady and senator was “morally reprehensible.” Clinton’s public comments casting the attack as a possible protest over the antiMuslim video differed sharply from her private assessments to family members and diplomats, Jordan and Pompeo said.

The panel ’s chairman, Rep. Trey Gowdy, Republican-South Carolina, def lected questions, saying the report “is not about one person.”

The GOP report severely criticizes the military, Central Intelligence Agency and administration officials for their response as the attacks unfolded, and their subsequent explanations to the American people.

Hours after the attacks began, “Not a single wheel of a single US military asset had even turned toward Libya,” Gowdy complained. US military leaders told the committee they thought an evacuation was imminent, slowing any response. AP

Suicide blasts kill dozens at Istanbul airport I

STANBUL—Suicide attackers killed dozens and wounded more than 140 at Istanbul’s busy Ataturk Airport, the latest in a series of bombings to strike Turkey in recent months.

Turkish officials said the massacre was most likely the work of the Islamic State (IS) group.

Turkish Prime Minister Binali Yildirim said 36 people died on Tuesday, as well as the three suicide bombers, who arrived at the airport in a taxi and blew themselves up after opening fire. Justice Minister Bekir Bozdag said 147 were wounded.

Yildirim said in a press statement early on Wednesday that air traffic had returned to normal and “our airport has been opened to flights and departures from 02:20 [local time] on.” There were conflicting accounts of the attack. A Turkish official said authorities are going through Closedcircuit television footage and witness

statements to establish a preliminary timeline and details of the attack.

“It is a jigsaw puzzle,” said the official, who spoke on condition of anonymity in line with government protocol. The Haber Turk newspaper reported that one attacker blew himself up outside the terminal, then two others opened fire at the point where the X-ray machines are. One attacker was shot at while running amid fleeing passengers, then blew himself up at the exit. The third attacker went up one level to where the international departures terminal is, was shot by the police and blew himself up.

Airport surveillance video posted on social media showed the moment of one blast, a huge ball of fire, and passengers fleeing in terror. Another appeared to show an attacker, felled by a gunshot from a security officer, blowing himself up seconds

later. The recent attacks on a key partner in the US-led coalition against IS and a the North Atlantic Treaty Organization member have increased in scale and frequency. They have scared away tourists and hurt the Turkish economy, which relies heavily on tourism.

As dawn broke over the destroyed terminal, workers began removing debris left by the blast. The airport partially reopened, but an information board inside showed that about one-third of scheduled flights had been canceled, with a host of others delayed.

Earlier, the hundreds of passengers, who fled the airport in fear, were left sitting on the grass outside. Several ambulances drove back and forth, and security vehicles surrounded the scene. Adam Keally, from Boston, said he heard gunfire followed by several explosions, then saw people “very badly injured.”

Hevin Zini, 12, had just arrived from Duesseldorf, Germany, with her family and was in tears. “There was blood on the ground,” she told the Associated Press. “Everything was blown up to bits...if we had arrived two minutes earlier, it could have been us.”

Yildirim, speaking to reporters at the airport, said all initial indications suggested the IS group was behind the attacks.

“The findings of our security forces point at the Daesh organization as the perpetrators of this terror attack,” Yildirim said, using the Arabic name for IS. “Even though the indications suggest Daesh, our investigations are continuing.”

Another Turkish official said two of the attackers detonated explosives at the entrance of the international arrivals terminal after police fired at them, while the third blew himself up in the parking lot. AP

ONESSEN, Pennsylvania—Republican Donald Trump vowed to tear up the nation’s trade deals, threatened new tariffs and called for a new era of economic “Americanism” in a speech that underscored just how far removed he is from typical GOP orthodoxy.

The speech, delivered on a factory floor in western Pennsylvania on Tuesday, outlined Trump’s promise to restore millions of lost factory jobs by backing away from decades of US trade policy.

The approach, which represents a significant break from years of Republican Party advocacy for unencumbered trade between nations, drew immediate condemnation from Democrats, as well as GOP business leaders, who questioned the impact on the price of consumer goods, as well as the country’s place in the global economy I n h i s 35 - m i nute s p e e c h , Trump directly targeted Democratic presidential rival Hillar y Clinton, blaming her and her husband former President Bill Clinton for the loss of millions of manufacturing jobs. And he t hreatened to e x it t he more t h a n t w o - d e c a d e - o l d No r t h American Free Trade Agreement and vowed to withdraw from the Trans-Pacific Partnership (TPP), an agreement among 12 Pacific Rim nations that has yet to take effect.

“This wave of globalization has wiped out totally, totally our middle class,” Trump said, standing in front of pallets of recycled aluminum cans on a factory floor.

“It doesn’t have to be this way. We can turn it around, and we can turn it around fast.”

At a rally later on Tuesday, Trump declared TPP had been “done and pushed by special interests who want to rape our country.”

In the speech, he pointed to China as a source of many of America’s

economic woes, promising to label that country a currency manipulator and slap new tariffs on America’s leading source of imports, a decision with the potential to dramatically increase the cost of consumer goods. Trump has argued previously that the higher prices would be compensated by more jobs. Delivered in a hardhit Pennsylvania steel town, the speech underscored the central message of Trump’s campaign: that policies aimed at boosting international trade have badly damaged workers and gutted manufacturing towns.

It’s an argument that found support among Republican primary voters, especially white, working class Americans whose wages have stagnated in recent years. But the speech drew a quick and scathing response from the US Chamber of Commerce, a traditional Republican ally and leading business lobby.

“Under Trump’s trade plans, we would see higher prices, fewer jobs, a weaker economy,” the Chamber said on its Twitter feed, directing readers to a blog post that said Trump’s policies would lead to millions of job losses and a recession.

Many economists have dismissed Trump’s promise to immediately restore manufacturing jobs as dubious at best, given the impact of automation and the many years it typically takes to negotiate trade agreements.

While renegotiating tougher dea ls w ith A mer ica’s foreig n trading partners might help some businesses, manufacturing as a share of total US jobs has been slipping for several decades. The number of such jobs has risen slightly since the end of the Great Recession, but the introduction of robotics and access to cheaper foreign markets has reduced US factory employment to a total last seen around 1941. AP

Jordan widens IS crackdown

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MMAN, Jordan—Two dozen men charged with supporting the Islamic State (IS) group squeezed into a cage in Jordan’s state security court. After brief questioning from a judge, they filed back out, and guards ushered in the next group of accused militants.

The court’s heavy load is part of a widening domestic crackdown on the extremist group.

Hundreds have been sentenced to prison, are awaiting trial or are being held for questioning about links to IS. Under toughened antiterror laws, even liking or sharing the group’s propaganda on social media can land someone a prison sentence.

Some say the crowded court rooms— along with recent attacks—signal that the pro-Western kingdom has a more serious problem with home-grown extremism than it has acknowledged in public.

“We have an extending of the network of IS in Jordan,” not just among the poor, but also the middle class, said Mohammed Abu Rumman, an expert on extremists. “It is a minority, but it is very dangerous.”

The extremists underscored their reach last week when they launched a suicide attack from Syria, detonating a car bomb near a Jordanian border post and killing seven soldiers in the deadliest attack in the kingdom in years.

The IS group’s 2014 capture of large parts of neighboring Syria and Iraq sent jitters through Jordan. The US spent millions of dollars to help the kingdom fortify its borders, and Jordan joined the US-led anti-IS military coalition.

Jordanian government Spokesman Mohammed Momani said extremism is a global problem and “Jordan is at a level just like any other societies in the world.”

The challenge is to reach and prosecute extremists and “make sure we have enough awareness in the society against these elements,” he said.

For the West, any sign of instability in Jordan, a key ally, would be of great concern. This would include rising support

for jihadi Salafism, the violent version of Sunni Islam that underpins IS and its precursor, al-Qaeda.

US-based analyst David Schenker said, while it’s difficult to measure jihadi activity, the recent uptick “points to a threat that is not insignificant.”

Abu Rumman estimated there are more than 10,000 jihadi Salafists in Jordan, most loyal to IS, and that about 2,000 of them are fighting in the ranks of IS and al-Qaeda in Syria and Iraq.

J o rd a n’s d o m e s t i c j i h a d i S a l a f i movement goes back almost three decades when Jordanians returning from Afghanistan spread the extremist message at home. Jordan’s movement produced a spiritual leader of al-Qaeda, Abu Mohammad al-Maqdisi, and the network’s first chief in Iraq, Abu Musab al-Zarqawi, killed by the US in 2006.

Over the years, jihadi recruitment has been fueled by high unemployment, restrictions on political expression and the perception that the world stands by as Sunnis are being slaughtered in Syria’s civil war and the Sunni-Shiite conflict in Iraq.

In Jordan militant strongholds include poor urban areas, remote tribal towns and decades-old Palestinian refugee camps, where some feel like lesser citizens.

The support was on display recently in one stronghold, Zarqa. Hundreds attended the funeral of Nasser Idreis, a resident convicted of IS support who died in prison from complications of a liver infec tion. Clean-shaven intelligence agents mingled with the mourners, and didn’t try to blend in. One even introduced himself to a journalist as “mukhabarat”—intelligence—and asked why she was taking photos.

Some mourners wore Salafi attire— short robes or pants that stop above the ankle—though that didn’t necessarily mean they belong to the jihadi strain of Salafis that supports violence. Bearded men hugged each other outside a mosque, among them a leading local jihadi Salafi known as Abu Bandar. AP

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Thursday, June 30, 2016

A9

More skyscrapers go up in N. Korea capital

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YONGYANG, North Korea— Hoping to show the world his country is doing just fine, despite sanctions and outside pressure over its nuclear weapons program, North Korean leader Kim Jong Un has put his soldier-builders to work on yet another major project—a series of apartments and high-rises that are once again changing the Pyongyang skyline.

The project is intended to show “the spirit of the Democratic People's Republic of Korea [DPRK] standing up and keeping up with the world, despite all sorts of sanctions and pressure by the US imperialists and their followers,” and “the truth that the DPRK is able to be well-off in its own way and nothing is impossible for it to do,” state media quoted Kim as saying when he ordered the beginning of construction in March.

Under giant red banners calling for “Mallima Speed”—a reference to a mythical winged horse, which could travel tremendous distances at supernatural speed—his soldier-builders are now putting up the frames for each new floor at the reportedly breakneck-pace of 14 hours to get it all done by the end of the year. The project comes as North Korea is mobilized on its second “speed campaign” this year and follows the recent completion of Future Street, a cluster of highrise apartments, office buildings and riverside parks dedicated to the nation’s scientists.

In something of a defiant wink at all the international criticism of the country’s nuclear-weapons program, that whole district has a nuclear motif. Its centerpiece high-rise is shaped like the classic illustration of an atom when seen from above, a metallic atom sculpture stands over the entrance to its main avenue and neon atoms glow from the sides of two of its larger buildings at night.

Kim’s late father, Kim Jong Il, also had a penchant for big bu i ld ings. One of t hem, t he pyramid-shaped 105-story Ryugyong hotel, got bogged down in various problems and, decades

after construction began, has yet to open. But the other, an impressive high-rise apartment district near the city’s iconic Kim Il Sung Square, has become one of Pyongyang’s most impressive sights, though it’s unclear how good life in the apartments is since foreigners are rarely allowed to visit and never without prior notice.

Because of its modern look, fancy restaurants and upscale shopping centers that sell brandname products, the district has been unofficially dubbed “Little Dubai” within the small foreign community here. Some others have nicknamed it “Pyonghattan.” It was completed in 2012, after Kim Kong Il’s death.

Pyongyang’s new Pyonghattan, officially called Ryomyong Street, is to have the country’s tallest apartment building, at 70 stories, along with a 50-story building and a handful of smaller ones in the 30- to 40-story range.

It will reportedly provide more than 3,000 apartments—all airconditioned—and have a nursery, kindergarten, laundry, post office and other public buildings and service amenities for its residents. Kim has directed it be a green street, with lighting and heating systems that use solar panels and geothermal energy.

Buildings will also have rooftop hydropic greenhouses and rooms that make maximum use of sunlight. Along with the stated goal of being more modern, there’s a practical reason for such designs— power outages are a longstanding problem in North Korea.

Pyongyang has a more reliable power supply than any other city, but solar panels on apartment balconies have become a common sight in the capital and elsewhere over the past several years. And, while apartments in tall new buildings are often conferred as rewards for hard work or loyalty, scenic views from top-floor apartments are undoubtedly less attractive when elevators can’t always be relied on to work properly. AP

Senate set to begin voting on Puerto Rico rescue package

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ASHINGTON—The Senate is set to begin voting on a rescue package for debt-stricken Puerto Rico, just two days before the island is expected to default on a $2-billion debt payment.

The White House-backed measure faced some opposition from both Republicans and Democrats, but party leaders endorsed it and promised to complete it before the July 1 deadline. “Failure is really not an option,” Majority Leader Mitch McConnell, Republucan-Kentucky, told reporters after meeting with his GOP caucus on Tuesday.

Puerto Rico is in a decadelong recession and has $70 billion in debt. The bill, passed by the House earlier this month, would create a control board that would oversee the island’s finances and could supervise some debt restructuring. It would also require the territory to create a fiscal plan and fund public pensions, which the government has shorted by more than $40 billion.

Treasury Secretary Jacob Lew made a last-minute visit to Capitol Hill on Tuesday in a bid to persuade some reluctant Democrats concerned that the board would be too powerful. Democrats have also opposed a provision that would allow the island’s government to lower the minimum wage for some younger workers.

Lew urged senators to vote for it on Wednesday even though it isn’t perfect.

“The fact that this works and it gives Puerto Rico the ability to move forward is just an overwhelming reason to pass this in a timeframe that prevents the descent into chaos,” Lew said. Senate Minority Leader Harry Reid, Democrat-Nevada, said he would vote for the legislation, though he criticized McConnell for not allowing amendments to the bill. The House is out of session until

July 5, so the Senate will have to pass the House bill unchanged for it to head to the president’s desk for his signature before the Friday deadline. Some Democrats said they would back the bill, though unenthusiastically.

“I’m not going to let the adequate be the enemy of the barely sufficient,” said Oregon Sen. Ron Wyden, the top Democrat on the Senate Finance Committee.

Sen. Richard Blumenthal, DemocratConneticut, said he was supporting the legislation and warned of the consequences if the Senate doesn’t act: “If it’s just rejected, there’s no clear path.”

Others remained staunchly opposed.

Democratic Sen. Bob Menendez of New Jersey monopolized the Senate floor for more than four hours Tuesday evening, arguing that the bill adopts a colonial approach to the territory, which is home to 3.5 million United States citizens. He said ordinary Puerto Ricans get little say and the package favors hedge-fund creditors over island pensioners.

Sen. Bernie Sanders, IndependentVermont, spoke out against the legislation for similar reasons, calling it “disastrous.”

Some Republicans planned to vote against it, as well. “I’m just not sure we have enough in this bill to ensure they will make the difficult decisions they need to,” North Carolina Sen. Thom Tillis said of the Puerto Rican government. A bipartisan group of lawmakers from Ohio and West Virginia threatened to try and block the bill in an effort to force action on unrelated legislation that would help coal miners’ pensions.

“If we’re going to help Puerto Rico escape bankruptcy, we should also be helping the 90,000 coal miners in Ohio, West Virginia, and elsewhere who are also suffering,” Sen. Rob Portman, Republican-Ohio, said. AP

IN this June 5 file photo, a Mongolian archer shoots a bow and arrow, as US Secretary of State John F. Kerry attends a Naadam ceremony, a competition, which traditionally includes horse racing, Mongolian wrestling and archery, in Ulaanbaatar, Mongolia. SAUL LOEB/POOL VIA AP

Sluggish economy casts shadow over Mongolia parliamentary polls

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LAANBAATAR, Mongolia— Mongolians voted in parliamentary elections on Wednesday against the background of a sharp downturn in the mining sector, vital to the landlocked nation’s economy.

Rising unemployment and disillusionment with the political system are also factors weighing on the vote for the 76 members of the national parliament, the State Great Khural. The result could see the ruling Democratic Party lose its majority to the opposition Mongolian People’s Party, a year ahead of the 2017 presidential election.

President Elbegdorj Tsakhia urged Mongolians to participate in the lively democratic system that remains a rarity in a region characterized by one-party states and authoritarian leaders.

“I encourage young people to come to the polling stations to exercise their right to vote. This is what democracy is all about,” Elbegdorj said after casting his ballot in the Sukhbaatar district of the capital Ulaanbaatar.

Official results were not expected until Thursday morning, ref lecting the vast distance and poor communications in the

nat ion of just 3 m i l l ion sa ndw iched bet ween China and Russi a. The parliamentary elections are the seventh since the country peacefully transitioned to democracy in 1990. Yet, disillusionment is growing among younger voters, whose turnout has steadily declined in the country recently dubbed “an oasis of democracy” by US Secretary of State John F. Kerry.

S o d no mt s e r e n C ho i n z o n , chairman of the General Election Commission of Mongolia, said 498 candidates were running for parliament and 2,288 candidates for local councils. More than 400 observers from foreign countries and non-governmental organizations were on hand to oversee the polls.Mongolia’s mining- and animal herding-dependent economy has been dragged down by weak domestic demand and a sharp decline in exports, impoverishing thousands of former herders who

had moved to its few cities looking for jobs.

Economic growth has slipped from 17.5 percent in 2011 to just 2.3 percent last year, leaving onefifth of the population in poverty.

Billions of dollars in foreign loans begin coming due next year, posing another potential crisis.

Coal, copper and other mineral resources make up 94 percent of Mongolia’s exports. But with demand in key market China weakening as its economy cools, Mongolia’s own growth is forecast to fall below 1 percent this year.

While both main parties have campaigned on the promise of more jobs, it’s unclear what measures are available to stimulate the flagging economy.

“The main issue is, No. 1, to revive the economy,” said Bulgantuya Khurelbaatar, secretary of the opposition Mongolian People’s Party.

She said the party aims to build 100 factories in 21 provinces that would create about 40,000 jobs, though she didn’t say how.

With the decline in resource prices, foreign investment has slowed to a trickle, although mining giant Rio Tinto in May announced the launch of the next stage of a multibillion-dollar gold and copper mine. Still, critics of government agreements with mining companies complain that too little of Mongolia’s mineral wealth

benefits the general public.

Some obser vers see recent changes to the electoral process as handicapping smaller parties and female candidates.

“They have closed some space for smaller political parties, as majoritarian systems do tend to benefit two main political parties,” said Ashleigh W helan, countr y director for the International Republican Institute, a US-based group that aims to promote democracy.

“This can reduce the opportunity for lesser-known candidates, new candidates, youth, women and those candidates who may not be a guarantee in terms of winning,” Whelan said. Her organization does not expect either party to secure an overwhelming majority.

In its latest National Human Development Report, the United Nations Development Program found about only 45 percent of Mongolians aged 18-34 have voted in recent elections, compared to an overall turnout of 65 percent in 2012.

Skepticism grew after the ruling party recently offered citizens 300,000 tugriks ($155) each to buy back 30 percent of their promised shares in the state-owned coal mine, Erdenes Tavan Tolgoi. So far, 1.2 million of 1.65 million shareholders have applied to sell their shares to the government. AP

California land officials sign off on closing nuclear plant

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ACRAMENTO, California— Ca lifor nia land officia ls dropped their longstanding environmental objections to the state’s last nuclear power plant and signed off on Tuesday on a deal to close the Central Coast facility many years earlier than its operators had previously sought.

T he St ate L a nd s Comm ission approved a lease allowing Pac i f ic Ga s a nd Elec t r ic Co. ( PG & E) to cont i nue oper at ing the Diablo Canyon tw inreactor plant through August 2025, a date the company and env ironmental groups agreed to last week. Members turned down a proposed environmental impact assessment, which can take years, in part to meet the earlier termination date.

PG&E President Tony Earley

told reporters last week the utility will save more money closing Diablo Canyon, than running it through 2044 as planned.

Lt. Gov. Gavin Newsom said keeping the plant open for nine years allows PG&E to avoid the mistakes of Edison International, which terminated its San Onofre nuclear generator in 2013 after hundreds of abrupt layoffs. The company largely replaced the nuclear power with climate-changing natural-gas plants.

“Let’s not fail the plant,” Newsom said. “Let’s have the conversation now about what that means to the work force, what that means to the community, what that means to our efforts to provide alternative energ y sources at a competitive price.”

Tom Dalzell, business manager

of a union that represents 600 of the plant’s employees, said the agreement promises to retrain and transition employees away from Diablo Canyon, avoiding a precipitous change.

Friends of the Earth President Erich Pica, whose organization participated in the negotiation to terminate the plant, said the agreement is fair to workers, while eliminating two decades of seismic risks.

“This is the way you do it,” Pica said. “You have time, you can bring on the right resources and you can treat people right.”

Not all conservationists back the plan, though. Dozens of activists, including some who have been fighting nuclear energy for 40 years, argued Tuesday against the plant’s continued operation

near major earthquake-causing fault lines. John Geesman of the Alliance for Nuclear Responsibility said the state should have conducted one of its strict environmental reviews before approving the lease, however short.

Geisha Williams, PG&E president of electric operations, said the nine years are a gift and the company will use the better part of that time to build and prepare an alternative energy facility in California. Williams said PG&E could pivot to wind, solar, biomass, geothermal or hydropower to replace the energy Diablo Canyon currently provides—about 9 percent of the state’s power.

The commission’s vote is the first of multiple regulatory hurdles facing the agreement to shut down the 31-year-old plant. AP

A10 Thursday, June 30, 2016 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

Narco Republic of the Philippines

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rowned by his jokes and catchy comments when he bid Davao City good-bye on Monday was President Rodrigo R. Duterte’s warning that the Philippines can become a narco-republic in seven years if nothing is done to eradicate the worsening illegal-drugs problem. In so many words, he said we are approaching that red zone. Duterte reiterated an earlier threat to the drug lords: “Those who destroy the lives of our children will be destroyed.

Those who attempt to kill my country will be killed. It’s as simple as that. No middle ground, no apologies, no excuses.”

How serious is the illegal-drugs problem in the country? If you follow the news on TV, still the most powerful medium for grisly and shocking stories, not a single day will pass that a drug-related crime gets reported. The Philippine Drug Enforcement Agency has placed the number of drug addicts in the country at 3 million. Shabu users are on the rise in Metro Manila and in the regions, and drug addiction has reached alarming proportions that even teenagers have been afflicted by the problem.

After winning by a landslide in the last presidential elections, Duterte’s relentless warnings against illegal-drugs peddlers to stop what they are doing or they will be killed must have inspired the Philippine National Police to do its job. At latest count, more than 18,000 drug users have either been arrested or surrendered, and close to a hundred drug pushers have been killed.

Duterte certainly knows something we don’t know when he warned a number of police generals at Camp Crame to evaporate before he gets the chance to humiliate them in public. That warning alone speaks volumes. Drug lords in the country have succeeded in putting police generals, lawmakers and even judges in their deep pockets. No wonder the crimes they commit have stopped being low-profile activities, as these narco-kings become defiant. Jail them, and they will continue to operate their profitable trade in the comfort of their air-conditioned cells. The law of the “bribe” rules. That’s why corruption remains unabated, and crime continues to rise.

Duterte said he could bring more investments to the country if drug addiction—the problem triggering many other crimes—was stopped. If we go by his record as mayor of Davao City, Duterte has shown he is a man of action, a no-nonsense leader who gets things done. From its dubious reputation as the killing fields of the south, Davao City under his watch became one of the safest and peaceful cities not only locally, but globally. Duterte’s campaign against criminality and illegal drugs, patterned after his Davao City blueprint, could well be the country’s route to lasting prosperity. It’s high time for us that we saw economic progress that benefits everybody.

If Duterte wants to impose nationwide curfew for minors, let’s welcome the change. He said this is his way to protect the youth. Duterte also knows that crime might simply be curbed by providing better environments for minors, who are at greatest risk to get themselves involved in criminality. The less drug addicts roaming the streets at night, the less crime they will commit. That’s one way to prevent this country from degenerating into a narco-republic.

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Out of touch with reality John Mangun

OUTSIDE THE BOX

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his is the world that we live in.

A presidential candidate takes a ride on a Metro Rail Transit (MRT) train, and reports that he or she fully understands the commuter’s problems. A political leader sits in his office while reading the official statistics, and concludes that crime has been falling under the administration.

This is the reality of the world we live in.

Riding the MRT on one particular day does not give any understanding of the average commuter’s situation.

It is not the long waiting lines, the unreliability, or even the uncomfortable train ride that creates the unbearable commuter condition. What the candidate can never understand is the reality of having to get up too early from a good sleep in order to get to work on time. The reality is the hundreds of hours a month of extra

commuting time, instead of doing something productive or enjoyable.

The political leader never sits at a community meeting of homeowners’ associations and listens to the barangay captain talk about crime and drugs. The elected official never hears the local officials say, “Drugs are out of control. The tanods are helpless against snatchers, too. We need your help.”

Citizens in the United Kingdom and the United States are told by politicians and the politicized press that

Trust, empowerment and Shakespeare Siegfred Bueno Mison, Esq.

THE PATRIOT

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ansingco, Siguan, Balato. These are just some of the officers who joined the Bureau of Immigration (BI) from 2007 to 2010. Like these officers, there were other Immigration employees who either came from Region 8, or Eastern Samar, the same province as the appointing authority, then-Commissioner Marcelino C. Libanan. Tugade, Dominguez, Tulfo-Teo. These are the incoming Cabinet members under the Duterte administration for the departments of Transportation, Finance and Tourism, respectively. There are and will be so many others like Tugade, Dominguez and Tulfo-Teo who are either from Mindanao or have worked with President Rodrigo R. Duterte in the past.

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they are racist for wanting to limit immigration. The desire to maintain their centuries-old cultures from those who are unwilling to assimilate and who want to change those cultures is apparently wrong.

Ordinary working people around the world who question why so much of their income is taken in taxes are told they are being selfish.

When those same people ask for more effective government spending and much better transparency, they are then told they are antipoor.

The gap between the reality of what government says and what it actually does is what is driving this global backlash against the political establishment. There is no better example than the recent British vote to leave the European Union (EU).

The merit—or lack thereof—of that decision is not the issue. Voters make good decisions, and they make bad decisions.

However, as I have said, perhaps too often, this is not the political decision-making environment that we have been used to in the past decades. The EU by its own mandate (from its web site) is dedicated to

Leaders understandably place much trust on people close to them, by way of past or present association in a community, organization or alma mater. In the case of P-Noy, he was severely criticized for appointing classmates, relatives, or fellow gun enthusiasts (KKK, or Kaklase, Kamag-anak, Kabarilan) to his Cabinet. President Duterte has appointed his classmates, fraternity brothers and former coworkers who served with him in the city government of Davao to key positions in his incoming administration. He has said that such appointments were warranted by the fact that he is a probinsyano who has a limited

circle of people he knows and trusts. In this context, appointing one’s trusted friends to sensitive positions in government (assuming they are competent) is, indeed, the prudent thing to do.

When I entered the BI in 2011, I intentionally did not recruit any classmate or townmate to join me, and took the risk of working with people who were already in the agency. I did not personally know Tansingco, Siguan and Balato, who at that time had been working forthe bureau for several years.

However, in the two years I spent as an associate commissioner, I saw that their experience and mastery of immigration matters were a valu-

able resource that had not been fully tapped. So when I became head of the agency in 2013, I placed my trust on these young people, and gave them positions of leadership and responsibility. A CPA-lawyer, Norman G. Tansingco was principally responsible for drafting and reviewing a number of significant policy guidelines and operations orders. He was my go-to guy when it came to research and liaison work with Congress and other agencies.

Archimedes O. Siguan started out as a deputy in Clark International Airport but was eventually given the task of running and heading the border control operations in the Ninoy Aquino International Airport Terminal 3. Siguan and Floro C. Balato Jr. have been invited to several trainings both here and abroad as subject-matter experts on human trafficking. After his able stewardship in the Port Operations Division, Balato will soon start on his Masters’ degree program in the United States under a Fulbright scholarship. In any organization, a leader can only take his organization as far as his followers can help him. Trusted, empowered and inspired to do more, Tansingco, Siguan and Balato, and the rest of the key leaders of the bureau did just that.

President Duterte has rightfully placed his trust on people he personally knows. It is possible for one man to design a house, but it takes a team to build that house.

“human dignity, freedom, democracy, equality, the rule of law and respect for human rights: these are the core values of the EU.” Further, “In 2012 the EU was awarded the Nobel Peace Prize for advancing the causes of peace, reconciliation, democracy and human rights in Europe.”

The voters in the UK just exercised their democratic rights and privileges. This is the response of the German politician Martin Schultz, who is the president of the European Union Parliament: “The British have violated the rules. It is not the EU philosophy that the crowd can decide its fate.”

People who agree with government are “responsible citizens” who follow the rule of law. People who disagree are “the crowd.” It is the people who have been out of touch with reality for decades. Now, it is the political leaders who are clueless about what is happening. That must change.

E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stockmarket information and technical analysis tools provided by the COL Financial Group Inc.

A leader may have the vision for a better country, but it takes a team to actually implement this vision and, perhaps, even improve on such vision. Members of the team also serve as the leader’s eyes and ears on theground. When the team leader trusts his men, he empowers them to do positive and creative things. Stephen Covey, the best-selling author of 7 Habits of Highly Effective People, said that innovation is a product of initiative and empowerment. How can President Duterte promote innovation in fighting the pervasive problems of drugs, criminality and corruption in thePhilippines? Trust and empower team members like Tugade, Dominguez and Tulfo-Teo to do their assigned jobs. And that is exactly how Mayor Duterte ran Davao City for 20-plus years and how President Duterte plans to run the country in the next six years.

In the transportation sector, President Duterte has said: “Bahala na si Tugade dyan,” and recognizing the credentials of incoming Secretary Tugade, who built his own logistics company from the ground up, this trust does not appear to be in any way misplaced.

With President Duterte’s program of empowerment, our country will surely move faster toward true change and progress in the coming six years. William Shakespeare said, “Love all, trust a few, do wrong to none.” In his early days, our Duterte is showing us he has the makings of a Shakespeare.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Cemex’s $855-M IPO to cushion Brexit effects on Philippines Val A. Villanueva

Businesswise

T

hey say that when the Dow Jones catches a cold, our local market gets pneumonia.

The recent development involving the United Kingdom’s decision to secede from the European Union is catastrophic enough to be likened to someone being diagnosed with stage-four cancer.

The move sent global markets, including currencies, plunging to their lowest in decades.

How would our economy handle the shockwaves?

Outgoing Finance Secretary Cesar V. Purisima has cautioned that, although our economy’s fundamentals were good enough to shield us from Brexit’s immediate effects, we should not be soothed into complacency.

With the global markets striding into unmapped territories, all countries “without exception” would somehow feel the tremor.

The instantaneous repercussions could be felt globally in varying gradations. Luckily for us, the outgoing administration has built a solid economy and our robust local consumption is dense enough to shelter us from the financial turmoil other countries could suffer.

For one, our debt structure is not affected by the Brexit. Our national government’s debt is mainly in local currency (67 percent) with rest in US dollars (26 percent), Japan yen (5 percent) and the Euro at a negligible 1 percent.

All told, we are starting from a position of strength: Our economic fundamentals are sound and steady, and our central bank has enough elbow room to cut interest rates, if needed. This year’s Nomura forecast of 6.3-percent growth for the Philippines, next only to India’s and even higher than China’s and Indonesia’s, augurs well for us. Banking sources told BusinessWise that the Brexit effect is more of the US Federal Reserve (the Fed) delaying interest rate hikes, which should keep interest rates low in the midterm. The only risk is if foreign exchange weakens.

For the foreign-exchange market, a range of P46.40 to P48 to the dollar is very likely. What we have to watch out for is the Philippine peso stabilizing at the 47.50 level. If it holds, then the peso will strengthen due to a possible head-and-shoulders chart formation. But with the Brexit, it will be unlikely that the Fed will raise interest rates in July. Hence, for this coming quarter, peso interest yields will remain low.

But what the market is more excited about are the coming inflows,the biggest of which is the $855-million (P39.75-billion) initial public offering (IPO) of Cemex Holdings Philippines Inc., scheduled between this week and next week.

This will taper off pressure on the peso vis-à-vis the US dollar.

Cemex’s application for an IPO was recently given the go-ahead by the Securities and Exchange Commission (SEC) to publicly offer its shares worth P39.75 billion, touted to be the largest stock-market debut in the country. The approval comes in the wake of the start of the Duterte administration, which has promised to shoulder on the Aquino regime’s infrastructure-building efforts under the public-private partnership (PPP) framework.

With the approval, Cemex can now offer to the public up to 2.338billion shares at P17 each. This will allow the public to own as much as 45 percent of the company’s shares.

The maximum offering will include 304.95 million in shares that underwriters could take up in case of excess demand.

If the company is able to issue the maximum shares at the maximum price, it gets the record as the biggest IPO in the country. The three largest IPOs (excluding secondary

Cemex has concluded a deal to sell its operations in Bangladesh and Thailand for $53 million—a slice of its planned sale of assets of up to $1.5 billion in the next two years— to Thai firm Siam City Cement. The move allows Cemex to concentrate on the Philippines for its corporate strategy in Asia Pacific. shares) conducted in the Philippine Stock Exchange (PSE) to date are those held by retailer Robinsons Retail Holdings Inc. (P28.11 billion in 2013); Sy family-led conglomerate SM Investments Corp. (P26.25 billion in 2005) and integrated gaming operator Travellers International Hotel Group (P20.41 billion in 2013).

Citigroup Global Markets UK, JP Morgan Securities Plc. and HSBC Singapore have been mandated as joint global coordinators and book runners. BDO Capital & Investment Corp. acts as domestic lead underwriter. The company will be listed on the PSE’s main board.

The company will use the proceeds to pay off some $504 million of short-term loan from a related party. The debt was incurred in connection with the acquisition of operating subsidiaries—Apo Cement Corp. and Solid Cement Corp.—as part of a reorganization. The Cemex public offering signifies its confidence in the local market despite volatility, which is mainly due to external factors.

“The SEC approval is a first step in one of the alternatives Cemex is exploring in the context of Cemex’s previously announced asset-divestiture plan,” the Mexican firm said in a statement.

“Cemex continues to explore other alternatives, and the ultimate implementation of any such alternative remains at the discretion of Cemex.”

Cemex has concluded a deal to sell its operations in Bangladesh and Thailand for $53 million—a slice of its planned sale of assets of up to $1.5 billion in the next two years—to Thai firm Siam City Cement.

The move allows Cemex to concentrate on the Philippines for its corporate strategy in Asia Pacific.

Cemex has two cement plants in the country: Solid Cement Plant in Rizal and the APO Cement Plant in Cebu.

In May 2015 Cemex announced a $300-million investment for the construction of a new 1.5-millionton integrated cement-production line at its Rizal facility that will double the plant’s capacity and increase capacity by a fourth.

The PSE has yet to see new IPOs this year after the stock market saw wild price swings that prompted new issuers to stay on the sidelines.

The benchmark Philippine Stock Exchange index, however, has been steadily improving.

With dire warnings from the International Monetary Fund, US Federal Reserve and the Bank of England about the world economy being adversely affected, even to a critical proportion, by Brexit, many Philippine economic experts are adopting a wait-and-see attitude, for now. Hopefully, our country will be able to weather the Brexit storm.

For comments and suggestions, e-mail me at mvala.v@gmail.com.

Thursday, June 30, 2016 A11

The marvels of Divine Mercy Msgr. Sabino A. Vengco Jr.

Alálaong Bagá

A

ll the earth should sing praise to God because of His marvelous deeds and because He rules by His might forever, yet refuses not His kindness to one who calls on Him (Psalm 66:1-3, 4-5, 6-7, 16, 20). Discipleship does not depend on equipment, but on personal witnessing, courage and perseverance in the love and mercy of God (Luke 10:1-12, 17-20).

How awesome are your deeds!

This psalm of thanksgiving begins with a threefold summons to praise God. All the earth is summoned to acclaim God, then to sing the glory of the divine name, God’s very essence and thirdly to proclaim His glorious praise, a weighty, important task. And the first reason for giving such praise to God is God’s own wondrous deeds, especially the works accomplished in the history of Israel. It is as though all people should praise Israel’s God for not letting His people perish. Recalling, the psalmist cites the changing of the sea into dry land in the

exodus from slavery in Egypt, with its distinct creation dimension in the subduing of chaotic waters.

The exodus dimension of passage finds conclusion in the crossing of the Jordan River into the Promised Land.

The psalmist moves from the communal, all those who fear God, into a more personal focus: his own individual experience of the divine power and kindness in his time of trial. This is the other reason for singing praise to God. God may rule all the earth with might forever, but it is the divine mercy and kindness (hesed) personally sought and received

The new rule on waiver Atty. Pierre Martin D. Reyes

Tax law for business

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spring cannot rise higher than its source, and such is true when a revenue issuance deviates from the very Tax Code it seeks to implement.

In particular, Revenue Memorandum Order (RMO) 14-2016, which lays down the new rule on waivers, holds that a waiver is a “voluntary act of the taxpayer” and, as such, it “shall take legal effect and be binding on the taxpayer upon its execution.” This new rule dispenses with the requirement of indicating the fact or date of receipt by the taxpayer of the waiver to show that the taxpayer was notified of the Bureau of Internal Revenue’s (BIR) acceptance and perfection of the agreement. Oppositely, Section 222 of the Tax Code, defines a waiver as an “agreement.”

In the words of the Supreme Court, “A waiver is an agreement between the taxpayer and the commissioner, and not a unilateral act of either party.”

It is “a bilateral agreement.”

RMO 14-2016 adopts a construction contrary to the explicit language of the Tax Code. The issuance treats

the waiver as a “unilateral” contract on the part of the taxpayer on the assumption that the waiver is for the sole benefit of the taxpayer. A bilateral contract is one where each party promises to perform an act in exchange for the other party’s act. A waiver is a bilateral agreement where the BIR promises to proficiently perform its duty in determining what the taxpayer rightly owes to the government in exchange for the taxpayer’s waiver of the three-year prescriptive period for the commissioner of internal revenue to assess. The notion that a waiver is for the sole benefit of the taxpayer, making it a unilateral act, should be discredited. No less than the Supreme Court has said a waiver “is beneficial both to the government and to its citizens; to the government because tax officers would be obliged to act promptly in the making of assessment, and to citizens because

that moves the psalmist to bless God. His prayers have been heard, and God’s kindness and faithful care not turned away from him. So, others are invited to be one with him in similar grateful praise to God.

Rejoice, your names are written in heaven

The mission of the 72 disciples is symbolic of the ultimate mission of Christ’s followers to all the nations. Jesus uses two metaphors to illustrate this mission: harvest and lambs among wolves. Connoting the readiness of the world for the ministry of his missionaries, harvest also suggests that planting and growing have already been accomplished by somebody else, and that the 72 are simply to gather up the fruits of the work of others. The second metaphor is sobering that the harvesting itself is a dangerous work because the missionaries are vulnerable in a world that can be very hostile.

The disciples are told to go with only the bare essentials, trusting in God and on the hospitality of people, not seeking better accommodations for themselves, but making do with what is available. And the task is urgent; no time for social niceties. The

after the lapse of the period of prescription citizens would have a feeling of security against unscrupulous tax agents, who will always find an excuse to inspect the books of taxpayers, not to determine the latter’s real liability, but to take advantage of every opportunity to molest peaceful, law-abiding citizens.”

Likewise, RMO 14-2016 states that the taxpayer’s mere accomplishment of the waiver will give rise to a perfected waiver, with legal and binding effect. This goes against the basic rule that an agreement or contract is perfected by mere consent, which is manifested by the concurrence of an offer and acceptance.

And as our jurisprudence dictates, the “acceptance of an offer must be made known to the offeror,” and “unless the offeror knows of the acceptance, there is no meeting of the minds of the parties, no real concurrence of offer and acceptance.” Thus, contrary to the BIR’s issuance, this means that there must be an actual agreement: the taxpayer agrees to waive and the BIR agrees to accept such waiver. Unless the BIR accepts, the offer of the taxpayer remains to be what it is—just an offer. In fact, during the period between the offer and the acceptance, the taxpayer has the right to withdraw the offer to extend the three-year period by communicating such withdrawal to the BIR. Now, if the BIR accepts the

peace they bring to people is synonymous with messianic salvation and determines the future of peoples, for those who are open to it will be blessed, while those who reject it will have their very dust shaken from the feet of the missionaries in a mutual rejection. And more wonderful than the miracles performed by the disciples and reported by them is the fact that their names have been inscribed in heaven.

Alálaong bagá, God’s saving love for sinful humanity is brought to us

by Jesus Christ, and it is made available to all peoples through the ministry of his disciples sent out as laborers for the harvest. Indeed, the reign of God is at hand for all and peace is now possible anywhere people make room for it. And we know that there will always be workers sent for God’s reign and for peace among peoples.

These brave and generous followers are blessed and can truly rejoice because their own names are inscribed in the heavenly book of God’s intimate friends. It is all the victory of divine mercy and kindness.

Join me in meditating on the Word of God every Sunday, 5 to 6 a.m. on dwIZ 882, or by audiostreaming on www.dwiz882.com.

offer by signing the waiver, such act alone will not suffice. That is but a mere determination to accept the offer which does not, in any way, constitute a valid and binding waiver. It is only when the BIR’s decision to accept the offer is communicated to the taxpayer, by returning the waiver to the taxpayer, will the waiver become a legal and binding commitment.

RMO 14-2016 may, thus, be considered contrary to the Tax Code, insofar as the issuance considers the waiver as a unilateral act and gives it legal and binding effect at the moment of its accomplishment by the taxpayer, without such offer meeting the acceptance and, further, without the acceptance being communicated to the taxpayer. To allow RMO 14-2016 to stand is to allow prolonged and unreasonable examinations, investigations and assessments against taxpayers.

The author is a senior associate of Du-Baladad and Associates Law Offices (BDB Law), a memberfirm of World Tax Services (WTS).

The article is for general information only and is not intended, nor should be construed as a substitute for tax, legal or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported, therefore, by a professional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at pierremartin. reyes@bdblaw.com.ph or call 403-2001 local 311.

K to 12 closes the learning gaps in Philippine education

By Emeline Gaspar Matas

T

he Department of Education’s (DepEd) K to 12 Program has been launched this year, but still the debate on its wisdom refuses to die. This gives life to the saying that no matter how good your intentions are, you can’t always please everyone. As an educator, I can clearly see the DepEd’s good intentions in adopting the K to 12 curriculum.

President Aquino signed the K to 12 Program into law in 2013, adding three years to the country’s basiceducation curriculum. Prior to the implementation of the K to 12 Program, the Philippines was one of only three countries in the world—and the only one in Asia—that still had only 10 years in basic-education.

This has always been seen as a disadvantage for our students who are competing in an increasingly global job market. The longer educational cycle of the K to 12 Program plugs the gap and gives Filipino students a higher quality of education.

While critics keep on saying the K to 12 Program is an additional burden

to parents with financial difficulties, they don’t acknowledge the fact that the government has allocated billions of pesos to assist students and educators alike during our transition period. Due to these government subsidies, the new program offers free primary and secondary education in all public schools nationwide.

With a student-centered curriculum, students will take a more active role in the learning process. That’s how the K to 12 Program works, and this will help close learning gaps in our old education system. With the K to 12 Program, students can choose what they want to learn, how they will learn it, and how they will evaluate their own learning progress.

In senior high school, students can select the field they want to master.

In addition, teachers can use the students’ mother tongue as a medium of instruction in the early years of their primary education. Not only will this make learning enjoyable and easy for students; it will also help address parents’ and families’ diverse needs, especially those with special cases, like students from indigenous groups.

Prior to the implementation of the K to 12 Program, the Philippines was one of only three countries in the world—and the only one in Asia—that still had only 10 years in basic education. This has always been seen as a disadvantage for our students who are competing in an increasingly global job market.

Clearly, the new K to 12 system in the Philippines is not just about a stretched curriculum and an additional financial stress on the parents.

It targets and enhances children’s progress and future, too.

The program aims to uplift the quality of Philippine education to give our graduates employable skills.

The program also aims to meet the standards required for professionals who would want to work abroad.

Most important, the system aims to fully enhance and develop the students in order for them to be wellprepared, especially in the emotional and cognitive aspects of learning.

Kindergarten education, or the K+12, will prepare 5-year-old children physically, socially, emotionally

and mentally for formal schooling.

K+12 will increase the children’s chance of surviving and completing formal schooling, reducing dropout incidence and insuring better school performance. With the old system, most graduates are too young to enter the labor force. As most children start Grade 1 when they are 6 years old, they do not reach the legal employable age of 18 when they graduate from high school.

In the end, there are many benefits of K to 12 education, including basic skills, such as being able to read, write, count, communicate and interact with others. Best of all, our high-school graduates can start getting a decent job of their choice.

Getting a high-school education can help one find a good job, adapt in the workplace, become a stable adult and raise a family. As a parent and educator, it is our role to do our best to help young students understand the importance of education, and hone them to be on a par with students around the world.

The author is Teacher 3 at Gonzaga National High School in Gonzaga, Cagayan.

2nd Front Page BusinessMirror

A12 Thursday, June 30, 2016

Manila, Jakarta revive border pact vs criminals T

By Rene Acosta

@reneacostaBM

he spate of abductions perpetrated by the Abu Sayyaf Group (ASG) against Indonesians has prompted Manila and Jakarta officials to revisit and implement an old but existing agreement that both countries can actually pursue criminals in each other’s territory, provided such is in the conduct of pursuit operations.

Outgoing Defense Secretary Voltaire T. Gazmin said the 1975 Border Crossing Agreement with Indonesia was revisited during his recent talks with his Indonesian counterpart in Manila, wherein the principle of air and maritime patrols was agreed upon, along with Malaysia, within the three countries’ “maritime areas of common concern.” “ The agreement was based on the 1975 Border Agreement, which, if you apply the principle of hot pursuit, their [Indonesian] forces can pursue a criminal or a

terrorist, if the crime is committed within their area, who escaped toward our maritime area,” Gazmin said during his farewell visit to the Defense Press Corps on Wednesday.

“Once the operation reaches land, it will be [a] coordinated operation, but [no weapon shall be carried by the pursuers]. Coordinated in terms of probably exchange of information,” the defense chief added.

The 1975 agreement allows Indonesian security forces to enter the country’s maritime zones

under the concept of hot pursuit in the same way that Filipino forces are allowed to enter Indonesian maritime zones.

In such incidents, however, Philippine troops or Indonesian forces should be informed, so that a coordinated and joint operation could immediately be undertaken.

The agreement was reached as part of the efforts of both countries to address transnational crimes, which also happen and move through the high seas.

The ASG has snatched seven Indonesian sailors on June 22, reportedly within Indonesia’s waters, and allegedly took them to Sulu, the same province where the terrorist group also brought its 10 Indonesian captives that it abducted

while they were sailing within the waters of Tawi-Tawi in March.

However, Gazmin said the hotpursuit agreement with Indonesia will not work because the latest kidnapping happened within the country’s waters.

“I don’t think so, because it happened within Philippine waters, so there is no hot pursuit; the principle of hot pursuit will not work,” he said.

Gazmin said Indonesian forces can still join in the operations, but without weapons and through exchange of information.

“We can ask for assistance in terms of exchange of information; we can ask for information about the identities of the victims, but for them to come and help in the rescue, it is not allowed,” Gazmin said.

The agreement was based on the 1975 Border Agreement, which, if you apply the principle of hot pursuit, their [Indonesian] forces can pursue a criminal or a terrorist, if the crime is committed within their area, who escaped toward our maritime area.”—Gazmin

www.businessmirror.com.ph

NFA RICE INVENTORY GOOD FOR 32 DAYS

By Mary Grace C. Padin

T

@ _enren

he National Food Authority (NFA) on Tuesday assured the public the country has enough rice stocks to last throughout the lean season, or from July to September.

NFA Officer in Charge Tomas R. Escarez said the agency, as of June 15, has a rice inventory of 1.02 million metric tons (MMT), which is sufficient for 32 days.

This volume exceeded the mandatory 30-day buffer stock the food agency is required to maintain during the lean season.

“We have more than enough stocks of the good qua lit y, low-priced NFA rice for the lean months. These stocks are now strategically prepositioned across the country, especially in calamity-vulnerable areas,” Escarez said.

T he of f icia l sa id he has

directed the NFA’s field offices to closely monitor the rice-supply and price situation in all markets nationwide in preparation for the lean months.

He also instructed the field offices to accredit more rice outlets to sell NFA rice to make sure the supply will be more accessible to low-income buyers anywhere in the country.

“Closer price monitoring and the opening of more rice outlets will ensure that our people will always have access to NFA rice,” Escarez said.

A ccord i ng to d at a f rom the NFA, the country’s rice inventory is currently at 3.54 MMT, which is good to last for 110 days, based on the nationa l daily requirement of 32,560 MT. Of this volume, 1.02 MMT are stored in NFA warehouses, 1.04 MMT in commercial warehouses and 1.47 MMT in the households.

1.02 MMT The current rice inventory of the NFA, exceeding the mandatory 30-day stock