BusinessMirror March 11, 2019

PHL RICE IMPORTS TO HIT 2.6 MMT–U.S.D.A.

By Jasper Emmanuel Y. Arcalas @jearcalas

T BUSINESSMIRROR FILE PHOTO

HE opening up of the Philippine rice market could push its imports this year to a record-high 2.6 million (MMT) metric tons, making it the secondbiggest buyer of the staple since the 2008 rice price crisis, according to the United States Department of Agriculture (USDA).

In its monthly grains report, the USDA projected that rice exports to the Philippines would expand by 4 percent to 2.6 MMT, from the estimated volume of 2.5 MMT in 2018.

The USDA also revised upward its February forecast for Philippine rice imports in 2019 from 2.3 MMT to 2.6 MMT.

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The USDA attributed the hike in imports to the implementation of the rice trade liberalization (RTL) law, paving the way for a new trade regime for the Philippines.

Under the RTL law, importers would just have to secure a sanitary and phytosanitary import-clearance (SPS-IC) from the Bureau of Plant and Industry prior to shipment arrivals. The law also deregulated the National Food Authority (NFA), removing all its power over rice trade in the country.

“As a result of this legislation, higher rice imports are expected from nearby Association of Southeast Asian Nations membercountries, with their relative low cost and preferential access to the Philippines,” the USDA said in the report, published over

A broader look at today’s business n

Monday, March 11, 2019 Vol. 14 No. 152

GDP growth cut 1.5% if ’18 budget runs till Aug T

By Butch Fernandez @butchfBM & Rea Cu @ReaCuBM

HE Senate and the House of Representatives appeared headed for a standoff over last-minute changes in the P3.7trillion national budget for 2019, and, “from all indications,” the government may operate under a reenacted budget until August, denting economic growth, Sen, Panfilo M. Lacson Sr. said on Sunday.

Initial numbers conveyed to senators by the Department of Finance (DOF), according to Lacson, showed such pushback of the budget approval until August could mean losses of P500 million daily to the economy, which, in turn, will shave off at least 1.5 percent

from the GDP growth targets.

Reached separately by phone, Finance Secretary Carlos G. Dominguez III confirmed Lacson’s claim that the DOF will crunch the numbers next week to come up with firmer estimates on the economic impact of extending the period of

the reenacted 2018 budget. Dominguez told the BusinessMirror in a text message that the DOF “will update the estimates tomorrow.”

In January, the DOF had pointed out that the delay in the passage of the 2019 national budget results in a reduction in government

₧500M

The economic losses daily from extending the period of the reenacted budget till August 2019, according to initial DOF estimates cited by Sen. Lacson spending by P46 billion, which will affect the growth in gross domestic product (GDP). Lacson said in a radio interview on Sunday the nation will have to live under the old budget, “at least until August” if Speaker Gloria MacapagalArroyo does not take back “lastminute changes” in the bicameral conference committee-approved budget bill that both chambers had separately ratified weeks ago.

See “GDP,” A2

Neda, economists cite implications of budget delay

By Cai U. Ordinario @caiordinario

HE National Economic and Development Authority (Neda) and local economists expressed concern that further delay in the passage of the 2019 budget could dampen the country’s growth prospects this year.

Socioeconomic Planning Secretary Ernesto M. Pernia told the BusinessMirror that the longer the economy waits for the passage of the budget, the more adverse the impact it will have on the country’s growth this year.

The Development Budget Coordination Committee (DBCC) target GDP growth is 7 to 8 percent in 2019 until 2022 annually.

“The longer the delay, the more the adverse effect on growth,” Pernia said. “Of course, it is [a concern] and should be dismaying to all citizenry, including business and investors, who are invariably affected!”

Local economists also shared their insights after Sen. Panfilo Lacson said on Sunday that “from all indications,” the country will live under a reenacted budget until August, as the terms the incumbent Speaker and House appropriations panel chairman end in late July.

Lacson said this because Speaker Gloria Macapagal-Arroyo and Appropriations panel chief Rolando G. Andaya Jr. are insisting on keeping the changes they made See “Neda,” A2

See “Rice imports,” A2

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the weekend. “[The 2.6-million metric ton import volume] is a record not seen since the international price spike in 2008 and would make the Philippines the second-largest global importer in 2019,” it added.

Government data submitted to the World Trade Organization indicated that this could be the biggest volume of rice to be imported by the Philippines in history, overshadowing the volume it purchased in 2008.

In 2008, the Philippines imported 2.39 MMT of rice, with 2.297 MMT of the total volume being bought by the NFA; while in 2010, the country purchased 2.369 MMT.

Sunday, in the latest sign of the hot spell’s impact. The Sunday (March 10) water level as of 11 a.m. had reached 68.95 meters . Story on A12. NONIE REYES

‘House did nothing illegal with 2019 budget’

By Jovee Marie N. dela Cruz

A

@joveemarie

MID issues on the lumpsum funds in the stalled P3.757-trillion national budget for 2019, the chairman of the House Committee on

PESO EXCHANGE RATES n US 52.1600

Appropriations on Sunday reiterated there is nothing illegal in itemizing the national budget even after its ratification by both chambers of Congress.

Camarines Sur Rep. Rolando Andaya Jr., in a statement, said the lower chamber has the record

to prove the legality of the national budget, which has not been submitted to President Duterte for signing into law, weeks after both chambers had separately voted to ratify the bicameral conference committee-approved version.

See “House,” A2

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As inflation eases, BSP may cut policy rates by 100 bps

By Bianca Cuaresma @BcuaresmaBM

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HE Bangko Sentral ng Pilipinas (BSP) could cut its monetary-policy rates by as much as 100 basis points this year, according to an international bank economist, as inflation is expected to soften further into 2019.

In a recent research assessment, Standard Chartered Economist for Asia Chidu Narayanan said they are revising their earlier expectation of a rate hold for the entire 2019, to a total of 100 basis points spread over the May, June and August meetings.

“We expect inflation to fall further to below 2 percent in the third quarter due to a high base and the fading of one-off boosts from tax reforms and poor weather. Lower inflation is likely to further tighten already-tight monetary conditions. We now expect BSP to respond with policy rate cuts starting in May 2019, partially reversing last year’s hikes,”

Narayanan said.

The Philippine Statistics Authority (PSA) announced recently that the monthly inflation print went back to withintarget in February to 3.8 percent after about 12 months of shooting off target.

Inflation came from a peak of 6.7 percent in September and October 2018, as the higher rice prices, increases in global oil rates and new taxes brought upward pressure in inf lation. After several mone t a r y - p ol ic y a c t ion s, from the BSP, as well as nonmonetary policies from the n at ion a l gover n ment , i nf lation started to go down in November to 6 percent, to 5.1 percent in December and down to 4.4 percent in January 2019.

As such, Narayanan said they are also revising their inflation forecast for the Philippines, to take into consideration the faster-than-expected slowdown in the growth of consumer prices in the country.

See “Policy rates,” A2

Truckers: Steps to ease port congestion lacking

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NEAR CRITICAL The water level at La Mesa Dam reached its lowest in 12 years on Friday, and further neared the critical level of 69 meters on

2017 EJAP JOURNALISM AWARDS

HE Confederation of Truckers A ssociat ion of t he Philippines (CTAP) has acknowledged the measures taken by the Bureau of Customs (BOC) and the Philippine Ports Authority (PPA) to ease port congestion, but said much remained to be done to solve the problem, blamed for crippling trade and commerce in the country.

In a news conference on Friday in Manila, CTAP members said the shipping lines doing business in the country need to have their own container yards for storing empty containers, which will free up space at the ports and ensure a seamless operation for truckers.

“In fairness to the PPA and BOC, they are trying their best to solve the problem. But their solutions are half-cooked, it’s just like a band-aid solution. PPA issued a notice to the BOC to withdraw containers within 15 days. How can we collect these containers when we have empty containers in our trucks?” said CTAP Chairman Ruperto S. Bayocot.

Last week, the Manila International Container Port (MICP) of the Bureau of Customs (BOC), together with officials from international shipping lines doing

business in the country, agreed to load out more empty containers per day, to bring yard utilization to ideal levels and resolve the recurring issues in returning empty containers.

MICP’s District Collector Atty.

Erastus Sandino B. Austria, who is also the BOC’s spokesman, explained that the carriers will be taking advantage of the additional double transaction slots that International Container Terminal Services Inc. (ICTSI) will be opening on weekends starting March 9 to 10.

If the measures agreed upon succeed, the MICP said that it sees around 17,500 empty twenty-foot equivalent units loaded out in a week compared to its high average of only 10,000 TEUs. “CTAP is asking the general manager of the PPA to issue a memorandum order to the shipping lines that they should have their own container yard. We hope that the PPA requires international shipping lines to have their empties returned to any available container yard for us to effectively haul [within] the said 15 days. We cannot haul because there are a lot of empty containers,” he added.

See “Port congestion,” A2

n JAPAN 0.4674 n UK 68.2044 n HK 6.6447 n CHINA 7.7696 n SINGAPORE 38.3248 n AUSTRALIA 36.5537 n EU 58.3305 n SAUDI ARABIA 13.9097

Source: BSP (8 March 2019 )

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A2 Monday, March 11, 2019

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Ecop-DOLE labor regularization deal hangs

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By Samuel P. Medenilla

@sam_medenilla

HE revival of the Department of Labor and Employment’s (DOLE) proposed pact with the Employers Confederation of the Philippines (Ecop) for the regularization of over 200,000 contractual workers is stuck in limbo for now.

The labor sector said it will not participate in the negotiations for the DOLE-Ecop Memo r a n du m o f U n d e r s t a n d i n g (MOU) until the Senate decides on the outcome of the Security of Tenure (SOT) bill.

In a phone interview, Federation of Free Workers (FFW) Vice

House. . .

Continued from A1

“As far as the House is concerned, we have all the records to substantiate our stand and the legal basis, as well as the established traditions and practices to back us up,” Andaya asserted.

He said the lower chamber will print the proposed 2019 GAA so the people will know where the projects and programs from health to education to agriculture to infrastructure would go.

Andaya defended the House leadership’s move to itemize lump-sum entries in the bicameral-approved version of the 2019 GAA bill, even though the changes were introduced after both chambers in plenary had ratified the bicameral report.

He was unfazed by Sen. Panfilo Lacson’s claim that the House leadership—particularly Speaker

President Julius Cainglet said that this was the decision of the members of labor coalition Nagkaisa during their talk with Labor Secretary Silvestre H. Bello III last month.

“We told him we won’t be entertaining any agreement at this point until the SOT bill is passed

Gloria Macapagal-Arroyo and Andaya as appropriations chairman—were committing an illegal and unconstitutional act. This insistence on tinkering unilaterally with the budget bill after its ratification in plenary by both chambers opens up the House to liability for falsification of public documents, as these are records of the legislative process, Lacson warned in a radio interview on Sunday.

On Duterte desk this week EARLIER, Andaya said the 2019 national budget will be submitted to Palace for President Duterte’s signature this week.

According to Andaya, the proposed 2019 General Appropriations Act, when ratified by the Senate and the House of Representatives, contained lump-sum funds that needed to be further itemized by both houses of Congress.

“That was the agreement at the conclusion of the meetings of the

Neda . . .

Continued from A1

in the bicameral conference committee-approved budget version that was ratified by both chambers. Senate President Vicente C. Sotto III will not sign the enrolled bill because of this, stalling the endorsement of the budget to President Duterte for signing into law.

Economists Calixto V. Chikiamco and Action for Economic Reforms Coordinator Filomeno S. Sta. Ana III told the BusinessMirror that the delay in the budget will be bad for government spending, particularly for the “Build, Build, Build” (BBB).

Chikiamco said one immediate impact on government spending is the slower implementation of BBB projects. It is a problem since the current administration opted to finance infrastructure projects through Official Development Assistance (ODA) and the national budget.

He said if the current administration only considered undertaking more publicprivate partnerships (PPPs) to finance its infrastructure projects, this problem could have been avoided. Sta. Ana also said the standoff between the Senate and the House of Representatives on the 2019 budget will cause investors to punish the country, further undermining GDP growth this year.

“That’s really bad. Investors will punish us. That means lower growth as our growth is still driven by government spending. Worse, it shows that the Executive is weak, and that can have repercussions on other reforms as well that require legislation. It can also be interpreted as a conspiracy to use the budget for partisan purposes in this election period.

Really bad,” Sta. Ana said.

The economists also do not see any way around the situation. Even a supplemental budget, they said, would have little effect on speeding up government spending for infrastructure projects.

Sta. Ana said even if a supplemental budget is approved, there has already been a delay. He said the decision to delay the passage of the national budget was a wrong one.

“Besides, I don’t think a supplemental

[into law],” Cainglet said.

“I advised the management group of Ecop to first study [the MOU] and then come up with a different approach and probably this time make it a tripartite MOU.”— Bello

New version

DUE to the vocal opposition of the labor groups on the said accord, the DOLE announced last week the MOU will no longer push through, at least in its current state.

It may, Bello noted, be revived under a tripartite arrangement, this time with the participation of workers in crafting its provisions.

“I advised the management group of Ecop to first study [the MOU] and then come up with a different approach and probably this time make it a tripartite MOU,” Bello told reporters in an interview on Tuesday.

In a phone interview, Ecop President Sergio Ortiz-Luis Jr. confirmed to the BusinessMirror they are indeed engaged in talks with some labor leaders.

“We are informally talking about it so we could clarify them about the contents [of the MOU],”

Bicameral Conference Committee.

The House did its part. We itemized our amendments. The people should ask the Senate if they did theirs,” he said.

However, Andaya assured the public that the itemization was within the parameters of the Bicameral Committee Report ratified by each chamber.

“The House did not touch the tens of billions in Senate amendments because, per agreement, it was their duty to do such. If the House did not do its duty, then the budget would be vague and opaque. That will only leave people guessing as to where the taxes that fund the budget go,” he added.

Challenge MEANWHILE, Andaya challenged the Senate to hold a joint press conference to show their realignments in the budget.

“Hindi kami natatakot sa isang budget na malinaw kung saang mga

budget is feasible with the current standoff,” Chikiamco added.

In the view of Cid Terosa, dean of the University of Asia and the Pacific School of Economics, “There will be some delay in disbursing funds for programs and projects. In this sense, part of the beneficial effects of government spending can be compromised. I believe, however, that election and consumer spending can offset potential adverse effects of delays in government spending.”

In January, the President’s economic team already identified the reenacted budget as a major factor that will significantly affect the implementation of the BBB and, consequently, the country’s GDP growth this year.

In a joint statement, the Neda, Department of Finance (DOF) and the Department of Budget Management (DBM) said the slower-thanexpected economic growth in 2018 and the delay in the BBB highlight the government’s priorities in addressing uncertainties.

The Philippine Statistics Authority (PSA) said GDP in the fourth quarter of 2018 slowed to 6.1 percent in 2018, from 6.5 percent in 2017. For the full-year 2018, GDP growth also decelerated to 6.2 percent in 2018, from 6.7 percent in 2017.

In order to address these concerns, the President’s economic team said it aims to address competitiveness issues, such as improving transport, communications and logistics. The government, they said, will also be working toward the integration of small and medium enterprises and large establishments.

Neda, DOF and DBM will also be on the lookout for downside risks such as those coming from the US-China trade tensions, slowing global demand, higher tariffs, and protectionist policies that stifle investments and disrupts global value chains.

The economic team also said other risks include tighter financing conditions in emerging markets due to the strengthening of the US dollar and rising risk premiums, as well as heightened geopolitical tensions.

The President’s economic team also does not discount inflation in 2019. They said this is the reason the government continues to hang its hopes on the passage and implementation of the rice tariffication law.

GDP . . .

Ortiz-Luis said.

Tripartite talks

CURRENTLY, he said they are still waiting for feedback from the labor group.

“If they are interested in initiating it and we find nothing objectionable, then we will talk.

If we think it [their position] is not okay, then we will not talk,” Ortiz-Luis said.

The Trade Union Congress of the Philippines (TUCP) also rejected negotiations with Ecop on the regularization of illegally contracted workers for now, since

lugar at ahensya, at kung anu-ano ang mga proyekto at mga programa ang popondohan. Pero ano ba ang ikinatatakot ng mga senador sa itemized budget?” he added.

The lawmaker also said the senators have the right to suggest to the President to veto the part of the national budget that they think unconstitutional.

“If the senators really feel that the budget we have ratified is constitutionally infirm and legally flawed, then they can tell the President what specific portions and provisions to veto.

And we will respect the presidential veto,” he added.

“That is his prerogative. Don’t take that right away from him. If the contested appropriations represent 2 percent of the national budget, then why should it jeopardize the uncontested 98 percent? Why hostage the national budget over unfounded and unreasonable fear?” said Andaya.

Continued from A1

According to Lacson, Senate President Vicente C. Sotto III joined him and Senate Finance Committee Chairman Loren B. Legarda, and Minority Leader Franklin M. Drilon, in a mini-caucus at the weekend to firm up the Senate’s stand on the House’s move to itemize at least two key lump sums in the bicameralapproved version even after the latter had been ratified by both Senate and House members.

Sotto, with full backing from senators, will not sign an enrolled copy of the budget bill to “avoid being party to an unconstitutional act,” Lacson said.

“We stand four-square behind our Senate President on this particular issue—that he would not sign if there are illegal amendments in the ratified bicameral conference committee report,” Lacson said in a mix of English and Filipino. The senator warned that doing so could constitute “a case for falsification of public documents” as the act of amending a budget bill already approved by the bicameral panel and ratified by both chambers is tampering with the “records of the legislative process.”

Lacson pointed out that “we are a collegial body; if he signs [the amended version], he [Sotto], he could be held liable [for committing an illegal act],” adding that it would also be tantamount to granting the Senate President veto power on what was already ratified by the body, referring to the bicameral conference committee report.

The senator suggested this can only be resolved if the House sticks to what was approved in the bicameral conference committee. Only then can the Senate President sign it.

End of GMA’s term HE added that if the standoff stays, “let us just wait until July,” referring to the end of the terms of Speaker Arroyo and House Appropriations Committee Chairman Rolando Andaya.

In the same interview, Lacson confirmed that senators from the majority and minority blocs are behind in affirming their position that Sotto would not sign on a document that includes what was not discussed in the bicameral talks but was included in the enrolled bill.

“It’s all still under discussion, because the Senate will stand firm on its position that if the enrolled bill contains something not discussed in the bicameral conference committee, then SP Sotto will not sign it. And for good reason, because the Constitution clearly states that after a bill is passed on last reading, no further amendment may be introduced. This goes not only for last reading or third reading approval, but the bicameral conference committee report that both houses have ratified,” Lacson said.

As it is, Lacson said, Sotto was unlikely to sign the bicameral report on the budget bill which, Lacson added, “means there will be no enrolled bill.”

they claim it is a “circumvention of our labor laws and regulations, and direct assault [on] the rights of workers.”

“The DOLE should just file cases against employers and business owners, who are members of Ecop which will be found practicing illegal job contracting or endo, and apply the full force of the law as soon as possible,” TUCP President Raymond Mendoza said in a statement.

The head of the country’s largest labor group called on Ecop to police its ranks and “encourage its members to follow the law.”

Unresolved opposition

MEMBERS of the Nagkaisa, which include FFW and TUCP, have opposed the DOLE-Ecop Memorandum of Understanding (MOU), saying it aims to derail the passage of the SOT bill into law.

Once in effect, the SOT bill will impose additional restrictions for companies engaged in contractu-

alization. Other provisions of the junked three-year deal being opposed by labor groups is its moratorium on the labor inspection for firms, which will absorb its contractual workers and noninclusion of workers in its crafting.

They also criticized the exclusion from the MOU of Ecop members with no existing enforceable regularization orders from the DOLE. “They only want to cover workers with compliance orders. It has no value-added,” Cainglet said.

Bello belied the allegation of the labor sector and said the MOU actually aims to encourage senators to pass the SOT bill by showing that employers are willing to voluntarily regularize their contractual workers.

As for the labor inspection moratorium, he said it will immediately be revoked if they get a complaint from workers of an MOU-covered company.

Port congestion. . .

CTAP VP for External Affairs Maria B. Zapata said the processing by shipping lines for arriving containers has also added to congestion in the ports. The shipping companies no longer publicly issue arrival notices, so the customs broker or trucker needs to go to their respective offices to get a hold of arrival notices for containers.

“What I would like to emphasize is that, the delivery order processing takes only a day [before], now it takes three days. This is one of the practices that shipping lines should improve,” Zapata said.

And, since container yards in the country are already fully loaded with empty containers, most trucking companies now have a number of empty containers in their possession, which results in their not being able to carry laden containers.

“No trucker has no empty at the back of their truck, all of us has extra empty [containers] in our possession, waiting against hope for the shipping lines to tell us where to deliver,” she added.

In terms of penalties, it was pointed out that P10,000 per day is charged for the delay in the release of a 40-footer container and

Rice imports. . .

Continued from A1

Despite the anticipated increase in imports, the USDA maintained its rice output forecast for the Philippines at 12.15 MMT, slightly lower than last year’s 12.235 MMT. In a separate report, the United Nations Food and Agriculture Organization (FAO) noted that global rice prices continued to decline despite the liberalization of the country’s rice industry.

“February quotations of Indica white rice declined across much of Asia, as fresh demand remained persistently thin, overshadowing news of the passage of the rice tariffication law in the

Policy rates. . .

Continued from A1

“We also revise our inflation forecasts lower to reflect recent softer data. We now expect CPI inflation to average 2.7 percent in 2019, down from our previous forecast of 3.5 percent. Upside risks to our forecast arise from higher crude oil prices and potential weather disruptions in the third quarter,” the Standard Chartered economist said.

“We maintain our call of 200 basis points of reserve requirement cuts in 2019,” the economist added.

For the rate cuts, Narayanan said they see a 25-basis-point cut in May, as the BSP will likely be comforted by inflation prints showing further easing in March and April.

This will be followed by a 50-basis-point cut in June and a 25-basis-point cut in

Continued from A1

P5,000 for a 20-footer container at the ports.

“They say that they have a low utilization rate but that’s not a fact, especially in the South Harbor, they seldom have that double transaction,” she said.

Meanwhile, the vessel queuing at the ports has been improving in line with the short-term solutions being undertaken by the government, with the number of vessels down to at least 15 from the previous 37 vessels at most.

Bayocot added that through CTAP’s own initiative, a lot in Cavite was rented out for one year to accommodate empty containers from truckers, which will now be able to accommodate the empties starting March 15.

“By next week, March 15, we have available space for empty containers. We identified already a space for empty containers in Carmona. It is available to accept all empty containers due for return.”

While this will not solve all their problems, “this is a big help for us, so we can effectively haul the containers from the ATI [Asian Terminals Inc.] and ICTSI [International Container Terminal Services Inc.] to decongest the area,” Bayocot said. Rea Cu

Philippines,” FAO said in its monthly rice market monitor report published recently.

FAO’s higher quality Indica rice index in February fell by 4.7 percent to 191, from 200 in January. Likewise, lower quality Indica index declined by 7.2 percent to 194 from 209 in the previous month, FAO data showed.

Quotations for 5-percent brokens of Vietnamese rice fell for the third straight month to $335 per MT, while its 25-percent brokens declined further to $323 per MT, FAO data showed.

“According to the Index, international prices in the first two months of 2019 were 1.1 percent below their levels in the corresponding period of 2018,” FAO said.

August as inflation continues to decline, the economist said.

The Central Bank Monetary Board is expected to meet on March 21 to set the monetary-policy settings anew. This will be the first monetary-policy meeting of the new BSP Governor Benjamin E. Diokno. His predecessor, Governor Nestor A. Espenilla Jr., died after a yearlong battle with tongue cancer.

In his first press conference, Diokno talked about the downward trend of the inflation path and its possible implication in the monetarypolicy meeting.

“I think given the deceleration in inflation, there is an opportunity for monetary easing, but as we said that will be dependent on the data that will be given to us by our technical staff here—which is world class by the way.

So we will look at those data and make a decision based on the information given to us,” Diokno said.

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Davao del Norte’s city joins billionaires’ club

By Manuel T. Cayon Mindanao Bureau Chief

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AVAO CITY—Another emerging city in the region, Panabo City, joined the elite circle of emerging billionaire cities in the country, thanks largely to its sprawling banana plantations cultivated for export and its bustling port for shipping them.

Panabo City, 32 kilometers northeast ofhere,brokethroughtheP1-billionmark in earnings last year, according to Mayor James G. Gamao in his recent state of the city address, citing 2018 figures.

MichaelAngeloResueno,PanaboCity information officer, said the mayor disclosed the amount at P1.05 billion. The figure is the first billion the city earned.

In 2017 the figure grazed the billion mark whenthecityearnednearlyP900million.

Resueno said the bulk of the earnings came from the sprawling banana plantations, including the country’s largest, the Floirendo-owned Tagum Development Co. City Tourism Officer Cher Magallon-Bastida said almost half of the city’s entire area of 27,200 hectares is planted with the Cavendish banana. The city has about 10,000 hectares of banana farms and plantations.

Panabo City’s achievement would be a welcome inspiration to its 18th “Araw ng Panabo” commemoration later this month, despite being rated a third-class municipality.

Business attraction

THE attractiveness of the city may have alsostartedtopullimportantinvestment strings, especially from mainland China.

A recent delegation of Chinese businessmen told city officials that they were keen on expanding supply

contracting ventures with shopping malls and other retail stores in the Davao region.

The businessmen told city government officials operating in Panabo City that would cut the cost of purchasing supplies on the part of client stores by eliminating the list of middlemen.

Officials said the delegates would also seek supply contracts with the other malls in Tagum City, as well as in Davao del Norte and Davao City.

Resueno said the businessmen were interested to locate inside the city’s export procession zone in Barangay San Pedro, adjacent to the industrial park being developed by the Anflocor Group in Barangay San Vicente. The business proposal was among the recent bigticket investments planned in the city.

Bastida said these investments include the University of the Philippines graduate school for agriculture and environment, the private-public partnership project for a new public market, and the parkdevelopmentofthenationalgovernment with Panabo City as the recipient.

A separate group of Chinese businessmen accompanied by the Chinese consulate general has also offered the Panabo City team a visit to China in time for a trade exposition.

Tourism sites

BASTIDA said the city has allotted funds to improve its tourism sites and contribute to maintaining or further increasing its P1-billion revenue record on the second year.

She added the city plans to showcase its success in mangrove replanting in coastal areas up to the next town of Carmen, also in Davao del Norte. There is also an 80-hectare marine-culture park.

Editor: Vittorio V. Vitug • Monday, March 11, 2019 A3

Govt giving out fertilizers, seeds– not bullets–to fight insurgency

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

HE government’s agriculture department plans to roll out a P30-billion fertilizer program starting this year following the directive of President Duterte to purchase fertilizer and seeds instead of bullets to quell the communist insurgency movement in the Philippines.

Duterte also vowed that he will fast-track the distribution of fertilizers as well as land owned by the government, which are not being utilized.

The Chief Executive said he decided to pour government funds to giving fertilizers after Agriculture Secretary Emmanuel F. Piñol told him planting materials are needed by insurgents.

“We just keep on buying bullets.

You should stop fighting. I don’t want to buy more bullets; it’s a waste of money. Every bullet fired is worth a hundred and thirty,” he said in a speech on Friday during the ceremonial distribution of certificate of land ownership awards (Cloa) in Sagay, Negros Occidental.

“We can use that to buy fertilizers, seedlings and corn.”

Rice, corn

ACCORDING to Piñol, the president also vowed to instruct Finance Secretary Carlos G. Dominguez to fund the National Fertilizer Support Program (NFSP).

“The [NFSP], when implemented, is expected to boost the production of rice and corn in the country because one of the most important needs of farmers is the ample supply of fertilizer for their farms,” he said in an online post.

“The budget of the DA last year was only P56 billion, while the fertilizer program, if implemented, is P30 billion. With the Presidential directive, however, the DA will implement the program this year as soon as it receives the funding from the Department of Budget and Management,” he added.

The NFSP would be implemented on a “roll-over” loaning scheme wherein farmers would have to repay after harvest the fertilizer provided to them by the DA, according to Piñol.

“Under the [scheme], each farmer recipient will be initially given the fertilizer he needs without any payment but he will be asked to return to the program the value of the fertilizer given to him so that he could be given supplies for the next planting season,” he explained.

Piñol added that, according to the DA proposal, the scheme in the NFSP will ensure the sustainability and the accountability of the project.

The DA has identified the insufficient fertilizer application by farmers as one of the culprits for low-crop productivity, the agriculture chief said.

“A DA study shows that one of the reasons for the low productivity of rice and corn farmers is the low fertilization rate of their farms because of the high price of fertilizers,” Piñol said.

“While most farms would require between six to eight bags of fertilizer to achieve maximum productivity, many farmers only apply two to four bags,” Piñol added.

Farmlands

DUTERTE has recently ordered the Department of Agrarian Reform under Executive Order 75 to acquire government-owned agricultural

lands for eventual distribution to qualified beneficiaries.

The President also said in the same speech that the war with the communist rebels will not end if the government will not give them land.

“That’s the problem: we give them lands without fertilizers; they need time to prepare,” Duterte said.

“Maybe perhaps after five seasons of rice planting, you will start to earn a little. You don’t have to go back to the rebel movement.”

Aside from fertilizers, the President also promised to give cellular phones to CLOA recipients “so they could easily report complaints.”

The CLOAs that were distributed covered a total of 1,609 hectares acquired land situated in eight cities and 11 municipalities in Negros Occidental, one of the provinces covered with vast private agricultural lands.

A total of 3,423 CLOAs were issued to representatives of 2,495 beneficiaries in Barangay Kauswagan in Sagay City.

According to DAR, 485 beneficiaries who received their land titles have already been provided with essential support services from their department, including credit facilitation and availment, capacitydevelopment, trainings, provision of common service facilities, livelihood support, agricultural extension services, program beneficiaries development lawyering and market linkages, among others.

MWSS repeats call to conserve water

By Jonathan L. Mayuga @jonlmayuga

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ON THE FLY

A man waits for a bite on a fishing line at the Lakeside Eco Park in Angono, Rizal, as the sun sets on the horizon. This coastal town, just 30 kilometers east of Manila, is budding as a summer capital as it offers activities like fishing and venues like galleries. BERNARD TESTA

Govt troops, NPAs figure in separate clashes

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OVERNMENT troops clashed with suspected members of the New People’s Army (NPA) over the weekend in Agusan del Norte, the civil-military operations officer of the Army’s 23rd Infantry Battalion (23rd IB) said.

The encounter occurred at around 11:50 a.m. on Saturday at Purok 7, Barangay Lower Olave, Buenavista, Agusan del Norte, according to 1st Lt. Roel Maglalang.

Maglalang said that residents reported

about the presence of at least 10 rebels at Barangay Lower Olave, prompting elements of the 23rd IB to respond and catch up with the guerrillas, triggering a brief firefight.

The soldiers recovered a .22-caliber pistol, an anti-personnel mine with blasting cap, 30 meters of electrical wire, three cartridges of 40 mm, a hand grenade, three UHF commercial radios, three magazines for carbine rifles, 350 rounds of live ammunition for carbine rifles, five mobile phones,

two binoculars, a monocular, one sniper scope and seven backpacks containing hammocks, personal belongings and documents. It was only two days ago when soldiers figured in two skirmishes with rebels in Lopez and Infanta, Quezon.

Lt. Col. Arnold Gasalatan, commander of the 85th IB, said his men were conducting combat operation when they clashed with the communist guerrillas at Barangay Villanacaob, Lopez, at past 3 p.m. on Friday. Rene Acosta

MID concern over water supply, the Metropolitan Waterworks and Sewerage System (MWSS) reiterated its call to the public, particularly those living in Metro Manila, to use water wisely and support the government’s effort to ensure ample water supply especially in the wake of a weak El Niño in the Tropical Pacific.

According to the country’s weather bureau, the development has resulted in the upgrade of the Enso Alert System to El Niño Advisory.

This year may be the warmest year on record as El Niño, according to some climate-change observers.

MWSS Administrator Reynaldo V. Velasco said he is calling on everyone to save water and help cushion water shortage as El Niño has varying impacts such as delayed onset of rainy season.

“Since we primarily source our water from the Angat-Ipo-La Mesa water system, we have to do our share to help lessen the effect of El Niño not only on our need for water in our households and industries but also on agriculture,” Velasco said. As a rule, discharge for potable water supply becomes the priority during drought events, reducing water releases for agricultural ir-

rigation and power generation.

Dam situation

WAT ER f rom A ng at pa s ses through the Ipo Dam, where it is then released to the La Mesa Dam. According to government weather forecasters, La Mesa Dam has a 47-cubic-meter-per-second allocation of water from Angat Dam, higher than the 44 cms the government normally ear­marks for La Mesa Dam during the dry season.

The water level at La Mesa is recorded below normal level and has prompted calls for water conservation from concerned sectors to maintain water reserve availability. As of March 5, its reservoir water level is 69.47 meters, which is below its normal high water level of 80.15 meters.

The onset of the dry season and the increasing demand from the burgeoning population has contributed to the decline in water levels, according to Velasco. This does not mean, however, that a water shortage looms in the horizon for residents of Metro Manila and neighboring provinces unless there is a disregard for water conservation until the rainy months set in, he added.

Rainfall

THE rainfall for Angat watershed for March is forecast at 38.1 percent, way below normal and 68.8 percent,

below normal for April. Rainfall condition is way below normal if the percentage is less than or equal 40; below normal if it is 41 to 80; near normal if it is 81 to 120; and above normal if it is greater than 120.

Forecast rainfall for Metro Manila in percent of normal is 37.8 percent in March, way below normal, while April, May and June rainfall forecasts are below normal.

The province of Bulacan, which hosts the Angat reservoir, also has a way below normal rainfall forecast at 32.1 percent in March. Except for southern Mindanao and Surigao del Sur where near normal is likely, most parts of the country is forecast to have way below to below normal rainfall conditions this month.

According to the Climate Outlook of the Philippine Atmospheric, Geophysical and Astronomical Services Administration, averageto-slightly-warmer-than-average temperature will prevail during the March-to-August period. Six to nine tropical cyclones may develop and enter the Philippine area of responsibility but the frequency will be below average based on historical perspectives. The Pagasa also forecast meteorological dry spell to drought conditions in most areas in the country in the coming months.

A4 Monday, March 11, 2019 • Editor: Vittorio V. Vitug

Economy BusinessMirror

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DTI sets review to determine cement SRP

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By Elijah Felice E. Rosales

@alyasjah

HE Department of Trade and Industry (DTI) is in no rush to impose a suggested retail price (SRP) on cement, as prices of local supply are reportedly stable even with the safeguard duty on imports in place.

In a phone interview, Trade Secretary Ramon M. Lopez said the DTI has yet to receive any complaint that prices of local cement increased after the government imposed a safeguard duty on imports. This is the reason he has yet to issue an SRP on the commodity.

Further, Lopez claimed prices so far are “behaved” even as the government on February 9 started collecting the P210 per metric ton (MT) tax on imported cement.

Under Department Administrative Order 19-02, Lopez placed a safeguard duty of P210 per MT on cement imports in effect for a

period of 200 days. The measure was implemented to protect the domestic industry that reportedly got its market share and sales injured by the surge in imports from 2013 to 2017.

Market share of imports jumped to 15 percent in 2017 from only 0.02 percent in 2013, according to data from the DTI. Sales of local manufacturers declined 12 percent, or by P11.1 billion, in 2017. They were apparently compelled to reduce prices by nearly 10 percent to compete with cheaperpriced imported cement.

To guard against profiteering and

WORKERS pour cement onto a street as part of a road-reconstruction project in Makati City. FILE PHOTO

supply shortages, the DTI is mandated under the order to issue an SRP that domestic producers must maintain while the safeguard measure is in effect.

Lopez said he will convene his consumer-protection officials this week to discuss the long-delayed imposition of an SRP on cement. During the meeting, prevailing prices of cement in February will be presented and should determine if there were drastic changes since the safeguard duty took effect.

“I have yet to meet the [DTI’s] Consumer [Protection] Group this week for the SRP [on cement],” Lopez said.

The trade chief has earlier planned to use as basis for the SRP the prevailing prices in December of last year. Prices of local cement in Metro Manila during that month ranged from P220 per 40-kilogram bag to P225, according to data from the DTI. Lopez vowed on February 28 to issue an SRP for cement last week to prevent local manufacturers from taking advantage of the protectionist regime on the commodity.

‘Policy stalemate’ plagues mining industry—think tank

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HE Philippines may be losing billions of dollars in potential mining investment because of policy gaps that tend to shoo away investors, mining industry leaders said.

Dindo Manhit, president of Stratbase ADR Institute, said while countries such as Australia and Indonesia managed to develop their mineral endowments as a strategic pillar of their economies, the Philippine mining industry has become stagnant following the issuance of Executive Order (EO) 79 and DENR Administrative Order (DAO) 2017-10 on April 27, 2017, which effectively banned open-pit mining.

“Our ability to efficiently and sustainably harvest the country’s mineral-wealth potential, estimated to be worth more than a trillion dollars, just sitting underground and basically untapped, has been mired in prolonged legal and regulatory challenges,” Manhit said in a statement.

Manhit recently took part during the Stratbase ADR Institute’s “Roundtable Discussion on the Open Pit Mining Ban” organized in partnership with the Department of Environment and Natural Resources (DENR) and the Philippine Business for Environmental Stewardship (PBEST).

“To put in perspective just how many opportunities we are losing, a 2016 list of just 11 pending projects was estimated to total over $23 billion in capital investments. Compare this to the official figures of the BSP on our total foreign direct investment from January to November last year, which totaled only $9.06 billion,” Manhit said.

According to Manhit, passing a new mining revenue law now pending in the Senate will resolve the impasse caused by EO 79 and will result in substantial revenue gains needed for President Duterte’s vision for

economic and infrastructure development.

PBEST Convenor Carmelo Bayarcal supported Manhit, saying that “aligning policies to responsibly develop the country’s resource potential while strictly enforcing existing environmental regulations to harness our mineral resources should be a priority of the government.”

“A hybrid and more balanced approach that imposes strict evaluation on the capacity and competence on mining companies to rehabilitate disturbed areas instead of an outright ban will minimize the inherent environmental impact of mining and maximize the long term benefits to the host communities,” Bayarcal said.

Manhit said the DENR chief Roy A. Cimatu is “on the right track” when he initiated continuous consultations with industry experts to understand the complex technical, social and environmental issues affecting all stakeholders, which will hopefully result in a more enlightened, pragmatic and stable policy environment.

Chamber of Mines of the Philippines Chairman Gerard Brimo said EO 79, which imposed a ban on new mining applications, and DAO 2017-10 made mining in the Philippines unattractive to investors.

Brimo identified three open-pit projects that are now on hold due to the ban.

These include the Tampakan Copper Project, King-king Copper Gold Project, and Silangan Copper and Gold Project, which are all in Mindanao.

Brimo said, these pending projects could bring the national government yearly revenues totaling P12 billion and a total of P1.5 billion for local government. Concurrently, the projects will boost industry contribution to exports to 9 percent and total contribution to GDP to 1.5 percent.

Jonathan L. Mayuga

Govt to finish repair of Naia main runway ahead of schedule

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IRPORT authorities said on Sunday that the repair and overlay of international runway 06/24, the main runway of the Ninoy Aquino International Airport (Naia), will see completion on March 15.

“I am glad that we are completing the project way ahead of its original schedule, which is July 2019, just in time for the expected peak this summer,” said Miaa General Manager Ed Monreal.

The project, which costs P704 million, has two main components, the civil works and electrical phases.

The civil works package involves repair of runway pavement with a total asphalt overlay length of 3,697 meters and 60 meters wide; repair and asphalt overlay mixed with antirutting additive on the approach portions of taxiway exits; and restoration of runway pavement markings.

The electrical phase consists of removal, resurfacing and reinstallation of affected airfield

lights, including runway center lights, curvature lights, threshold lights, sequence flashing lights at runway 06/24 and connecting taxiways.

On a daily basis, Naia’s main runway observes maintenance closure from 1:30 a.m. to 3:30 a.m. for derubberizing, degreasing and small repairs when needed.

“Runway surface maintenance such as these are done to maximize friction for wheel braking and, more importantly, as a safety standard,” Monreal said.

“Any activity that would require longer closure hours is covered by a Notice to Airmen [Notam], which is issued in advance to pilots and airline operators through the Civil Aviation Authority of the Philippines,” he added.

Advance notices are circulated through Notams so that the airlines can adjust their schedules accordingly.

Crucial airport closures and other activities are done with the knowledge of airline operators. Recto Mercene

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Editor: Jennifer A. Ng • Monday, March 11, 2019

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US targets more agri exports to PHL

By Elijah Felice E. Rosales @alyasjah

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HE United States is keen on expanding its farm exports to the Philippines once nontariff barriers—as committed by the government—are removed this year.

In its 2019 Trade Policy Agenda and 2018 Annual Report, the Office of the US Trade Representative (USTR) reminded the Philippines of its commitment to better facilitate the entry of imports, particularly

farm goods from the US. Manila last year vowed to look into issues aired by Washington on tariff concessions, cold chain requirements, customs valuation and geographical indications (GIs).

The report raised the long-standing US petition to extend the lowered Philippine duty rates on certain agricultural products, which the government committed to assess and consider.

It also noted the mutual intent of the Philippines and the US to collaborate on the development of cold chain requirements and best practices. This partnership will take into account international guidelines and codes of practice regarding food hygiene adopted by the Codex Alimentarius Commission.

Washington has long demanded Manila to remove its two-tiered system for regulating the handling of frozen and freshly slaughtered

meat for sale in local wet markets.

The USTR report also reminded the Philippines it confirmed its intent to enforce domestic laws, regulations and policies, which require World Trade Organizationconsistent customs valuation for duty collection purposes. It added the customs chief himself last year instructed his men to abide by what is stated under the law.

“As part of this effort, the Philippine Customs Commissioner issued a directive to all customs inspectors reiterating their obligation to comply with the existing legal requirements on customs valuation,” the report read.

The Philippines was also urged— as committed—to exercise trans-

parency, due process and fairness in trade by respecting prior trademark rights and not restricting the use of common names. Further, Washington reminded Manila of its resolve not to provide automatic GI protection.

According to the World Intellectual Property Organization, a GI is a sign used on products that have specific geographical origin and possess qualities that are only due to that origin.

Last year US exports of food and agricultural products to the Philippines amounted to $2.8 billion, according to estimates from the USTR. This is expected to go up once the Philippine nontariff barriers are restructured,

if not removed.

In a Global Agricultural Information Network (Gain) report published last year, the US Department of Agriculture Foreign Agricultural Service in Manila noted that the improvement in the purchasing power of Filipinos would drive higher consumption of farm products from the US. “The US continues to be the Philippines’s largest supplier of agricultural products, and the Philippines is its 10th-largest global market,” the report read.

The Gain report noted that consumer-oriented food and beverage products would remain as one of the most lucrative commodities for US exporters.

‘Hike in CME content in diesel to hurt consumers’

PNA PHOTO

By Jovee Marie N. dela Cruz @joveemarie

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HE chairman of the Joint Congressional Oversight Comm it tee on Biof uel s from the House of Representatives on Sunday opposed the proposal of the Department of Agriculture (DA) to increase the coconut methyl ester (CME) blend to 5 percent.

Marinduque Rep. Lord Allan Velasco, also the chairman of the House Committee on Energy, said the hike in CME blend to 5 percent from the current 2 percent is “anti-consumer” because it will increase pump prices and transportation costs.

“As it is, consumers are already faced with the burden of high fuel prices,” said the lawmaker.

“Raising the biofuels blend will

only aggravate this, as the upward adjustment in the CME blend is projected to increase the pump prices in diesel by at least P2.25 per liter,” he added.

At the present 2 percent blend, Velasco said, the impact of CME on diesel is already at P1.50 per liter.

“We must keep in mind that a huge chunk of diesel consumers is from the public transport sector, and any increase in diesel prices will lead to higher transportation cost,” he added.

Velasco said the DA’s proposal could have an adverse impact on food security. He said the increase in CME blend might affect the pr ices of other agricultural commodities if lands devoted to food crops are used for biofuels production.

“Food security remains our primary priority. By no means should this proposal compromise food supply. No Filipino should go hungry,” he said.

Velasco urged the DA to assess the “real benefits” of biofuels to farmers. He also asked the DA to assist farmers in developing alternative markets for the local copra industry.

The lawmaker also called

Senate to look into proposed deregulation of sugar industry

By Jasper Emmanuel Y. Arcalas @jearcalas

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HE Senate will conduct a hearing to determine the implications of allowing the unimpeded entry of sugar imports into the country and assess the implementation of laws affecting the sector, according to Senate Majority Floor Leader Juan Miguel F. Zubiri.

Zubiri said the hearing on the proposed liberalization of the sugar industry being pushed by economic managers is the “top priority” of the Senate once it resumes work in late July.

“We would discuss this sugar liberalization and review the Sida [Sugar Industry Development Act],” Zubiri said in an interview with reporters on Sunday in Bukidnon.

Zubiri said he and his colleagues would look into the bottlenecks and the challenges encountered by the government in implementing the Sida.

The Sida was enacted in 2015 with the goal of improving the productivity and making the local sugarcane industry competitive against other sugarproducing countries.

“We have to see what’s going wrong in implementing it and come up with proposals. What we need to do is come up with recommendations on how to make sugar affordable,” he said.

Zubiri said lawmakers could consider a measure that would allow planters to avoid middlemen and traders, “who are manipulating prices,” and sell sugar directly to buyers or consumers.

Furthermore, he said the issuance of an executive order or administrative order by the government would not be sufficient to deregulate the sugar industry.

Industry sources earlier said economic managers are looking at other options to avoid going through the legislative process.

Zubiri said, however, that the only way to liberalize the sugar industry is by amending two laws— the ISA and the Sugar Regulatory Administration (SRA) charter.

The Executive branch, he said, could be slapped with lawsuits if it would merely issue an EO. “[The EO or AO] may be a possible option for them but nothing can stop the sugar blocs from file queries with the courts on the motions of the government to push particular programs

without necessary legislation,” he said.

“The rice [liberalization] went through legislation. I don’t think it’s that easy to liberalize the sugar [industry] without legislation,” Zubiri added.

Zubiri is one the 10 senators opposing the liberalization of the sugar industry, citing its detrimental effects on sugarcane farmers and the possible loss of investments.

Sugar farmers and millers said they will support Senatorial candidates who will oppose moves to deregulate the sector.

“We will show our appreciation to those who supported the sugar industry. We will show our support through our ballot,” United Sugar Producers Federation of the Philippines President Manuel Lamata said last Sunday.

National Federation of Sugarcane Planters Enrique Rojas said the midterm elections in May would be an “acid test” of the capability of the sugar industry to help candidates win.

Rojas said the sugar industry used to be “one of the biggest and most solid blocs” that is capable of making a difference in elections.

on the Depar tment of Labor a nd E mp l o y m e nt t o i mp l e ment the Social Amelioration and Welfare Program (SAWP) for Workers i n t he Biof ue l s Production.

“Under the law, SAWP should aid our copra farmers in exploring other livelihood opportunities,” Velasco said.

Earlier, the Department of Energy said it will discuss the

primary purpose of increasing the percentage of a coconut oil derivative in the current blend of diesel after Agriculture Secretary Emmanuel F. Piñol renewed his support for the increase in CME blend in diesel.

The DOE said implementing the Biofuels of 2006 will require all diesel fuels sold in the local market to be mixed with 5 percent CME. At present, the blend

includes 2 percent CME and 98 percent regular diesel.

The agency said increasing the CME percentage is seen to up demand for copra and lend support to about 2.5 million farmers.

The DA is pushing for an increase in CME blend to boost domestic copra prices which recorded a steep decline last year due to the drop in the international price of coconut oil.

CAAP11 CIVIL AVIATION AUTHORITY OF THE PHILIPPINES

A BusinessMirr

A6 Monday, March 11, 2019 | www.businessmirror.com.ph

C.A.A.P. @ 11: CENTERED ON AVIATION T

By Leony R. Garcia

HE current administration’s centerpiece program, the Build, Build, Build (BBB) is starting to take shape and the benefits being felt, with the completion of several projects. President Duterte’s project seeks to uplift the lives of more than 6 million Filipinos to securely set the economy by modernizing the country’s infrastructure backbone.

The BBB’s 75 flagship projects consist of six airports, nine railways, three bus-rapid transits, 32 roads and bridges, and four seaports that seek to bring down the costs of production, improve rural incomes, encourage countryside investments, make the movement of goods and, people more efficient and most important, create a projected 1.7 million jobs by 2022.

The focus on airport constructions is also aimed for a more efficient management system, to further decongest the passenger flow and ensure a better travel experience of locals and tourists alike.

These airports, strategically being built and renovated to improve passenger travel and services in the country, are the Puerto Princesa Airport, designed to accommodate 1.9 million passengers daily; and the New Bohol (Panglao) Airport that aims to attract 1.9 million passengers. Meanwhile, the Mactan-Cebu International Airport is expected to serve 12 million passengers while there’s also a new Bicol International Airport that hopes to decongest the crowded Legazpi airport and boost tourist arrivals to make Albay an economic powerhouse.

The night rating of existing airports in Naga, Dumaguete, Dipolog, Cotabato, Tuguegarao, Cauayan, Pagadian and Ozamis are also listed under the infrastructure pro-

gram. Once completed, the nightlanding capabilities are projected to enable the mentioned airports in accommodating flights even after sunset. To ensure on-time flight arrivals and departures, and further improve the air traffic-control management in the country, a communication navigation surveillance/air traffic management system (CNS/ATM) was completed in December 2017.

Connecting the Philippine Islands through aviation

SINCE becoming an independent regulatory body in 2008, the Civil Aviation Authority of the Philippines (Caap) has been striving hard to improve the country’s aviation sector by launching initiatives and projects that will advance the country’s air-transport infrastructure, safety and overall performance.

In its mission to connect the Philippine Islands through aviation, and make air transport more available and convenient to Filipinos, the agency launched to operations a number of projects, thus improving the country’s aviation infrastructure and steadily fulfilled its vision of a Philippines fully connected by aviation.

On its eleventh year the Caap looks forward to 2019 as it prepares for more project completion and inaugurations. This year will

PHILIPPINE Air Traffic Management Center (ATMC)

BOHOL Panglao International Airport Facade

see the openings of passenger terminal buildings (PTBs) in the airports of Busuanga, Camiguin, Catarman, Marinduque, Ormoc, Ipil, Mati, and Siargao.

month (minimum of 2.5 million departed seats), and OAG must receive flight status information for no less than 80 per cent of scheduled flights within a 12-month period.

THE Caap believes in not only providing safe, but also punctual air-transport services. As the operator of 80 regional airports in the country, the Caap strives hard to boost its airports’ performance.

That is why the authority welcomes the result of the 2017-2018 Official Aviation Guide’s (OAG) on-time performance (OTP) star ratings for airlines and airports, wherein six Caap-operated airports received 1-star ratings.

The rating was given to provincial airports in Iloilo, Bacolod (Silay), Laguindingan in Cagayan de Oro City, Davao, Tacloban in Leyte and Puerto Princesa in Palawan.

The OTP star rating is designed to benchmark against set criteria defined by industry and flight status information experts.

The OTP is measured across the whole year, based on 12 months’ rolling performance.

To achieve an OTP star rating, the world’s airlines and airports must meet two criteria: All airlines and airports must have a minimum of 600 operations a

Airport security

Airport on-time performance

IN order to prepare its airports against threats of terror and provide safe air transport services to the riding public, the Caap on January 28 initiated the conduct of Airport Security Committee (ASC) meetings in its 12 area centers nationwide. The ASC meetings are held to revisit and update the airports’ contingency plans and simulate bomb incident management exercises. Other agendas of the meeting include updates on the observance and implementation of the Office for Transportation Security’s (OTS) Security Condition 2 (Secco 2).

In compliance with the International Civil Aviation Organization’s current national civil aviation security program and airport security programs, the Secco 2 is defined as verifiable intelligence indicating the probability that civil-aviation operations have been targeted for attack. the Secco 2 requires further security enhancement from aircraft.

The 12 Caap area centers

in Laoag, Tuguegarao, Plaridel, Puerto Princesa, Legazpi, Iloilo, Bohol-Panglao, Tacloban, Zamboanga, Laguindingan, Davao and Butuan; and airports in Jolo, Sanga-Sanga, Pagadian, Dipolog, Ozamis, Cotabato, and General Santos have convened with their respective ASC to manage and assess risks.

The meetings discussed various areas of security including aircraft security, checks upon disembarkation, aircraft-access management, mandatory removal of shoes at the final security-screening checkpoint, and random searches using the explosive trace detection system. In the landside and airside areas of airport security, measures such as the deployment of behavioral observation personnel at the PTB lobby and landside parking area, increasing security patrol visibility, deployment of government-armored assets, K9 explosive detection units, and bomb squad, and the development of a strong security culture among airport stakeholders were discussed.

Improving Philippine aviation with international cooperation

ASIDE from building an improved aviation infrastructure in the Philippines, the Caap, as the country’s representative in the international aviation community, also

carries out partnerships and collaborates with various organizations and professionals that could assist the Philippines in its objectives toward a safe, economical, and efficient air-transport sector.

The Caap participated in meetings such as the meeting of the South China Sea Traffic Flow Review Group, the coordination meeting with Japanese representatives for the proposed Philippine-Japan tabletop search and rescue exercise, the national air transport facilitation programs, the international civil aviation organization ICAO European Aviation Safety Agency Forum on Civil Aviation in Southeast Asia, Cooperative Development of Operational Safety and Continuing Airworthiness Program Southeast Asia Steering Committee meeting, the EU-SEA Aviation Partnership Project Management Board Meeting, and the Cooperative Development of Operational Safety and Continuing Airworthiness Programme (COSCAP)-Southeast Asia ANS safety assistance mission.

A month-long celebration of CAAP’s 11th year

THE Caap is commemorating its 11 year with a monthlong celebration this March, with the theme, “Centered on Aviation

KEEPING PHL SKIES SAFE 24/7 T

HE Civil Aviation Authority’s (CAAP) Air Traffic Service (ATS) has always aspired for excellence in the delivery of its mandate to maintain a safe and secure sky.

Throughout the years and as air traffic grows, the ATS proved that it is relentless in serving the Philippine sky even when the division had to deal with limited radar surveillance or problematic HF/ VHF radios.

Complaints of flight delays and airport congestion hounded the ATS, but the country’s outdated air traffic technology will soon

be a thing of the past. With the introduction of the CNS-ATM system or communication, navigation, Surveillance—air traffic management system, the ATS is introduced to a new air traffic facility competitive with our regional neighbors.

The transition plan is based on a system-wide safety assessment intended to prepare air traffic management officers (ATMOs) for the cut over date from the old system to the CNS-ATM system.

The new facility, inaugurated by President Duterte in January, dubbed as the Air Traffic Management Cen-

ter (ATMC), is now operational.

Air traffic-service upgrades are not limited within the ATMC. Advisory service is now available in San Vicente Airport, Puerto Princesa International Airport, and Siargao Airport. The Naga tower has also started providing aerodrome control service last March. These are some of the manifestations of ATS’s commitment to sustain and improve the level of air safety wherever it is demanded. Satellitebased instrument flight procedures also referred to, as PBN flight procedures have also been developed in

airports where ground navigational aids such as very high frequency omni-directional range or instrumental landing system, are not available. Meanwhile, for the convenience of the flying public, airports in Butuan, Legazpi, Dumaguete, and Caticlan are now catering to night operations, thus, increasing the airports’ accessibility.

Meanwhile, in other airports, PBN flight procedures have been serving as alternate procedures when ground navigational aids undergo repair and maintenance, helping prevent airport diversion or flight cancellation, and saving

airline operators costs.

And for airports to operate for longer hours, the need for additional qualified personnel to operate air-traffic facilities are also increasing. Continuous recruitment of new ATMOs is one of the priorities of ATS. Presently the ATS, in coordination with the human resource and management division and the Civil Aviation Training Center (CATC), is processing the successful applicants of the 13th Comprehensive air traffic service course 13, or CATS13, which commenced last

October 2018. Successful CATS graduates will be assigned in various air traffic-service facilities nationwide to fill-up 294 personnel complement requirements.

The 57 ATS facilities are manned by 770 ATMOs. Furthermore, for the rated ATMOs, refresher and proficiency trainings are regularly given to keep them abreast with evolving ATS procedures. Currently, the ATS is in the process of purchasing an aerodrome simulator to increase efficiency of training procedures and help improve the ATMOs’ competencies.

11th Anniversary

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www.businessmirror.com.ph |Monday, March 11, 2019

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ON SAFETY, FOCUSED ON PROGRESS Message

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BOHOL Panglao International Airport inauguration

Safety, Focused on Progress”. The agency kicked off its celebrations on March 4 with a Thanksgiving Mass right after its Monday flag-raising ceremony. With its anniversary month coinciding Women’s Month, the authority

also took the chance to celebrate its female employees by presenting Them with flowers.

A blood-letting activity followed on 5 March and a cleanup drive on 8 March. There will be sports fest starting on the 15th

and a fun run on the 22nd. The authority is also set to celebrate its anniversary with stakeholders and employees from its area centers with a fellowship night on March 8 where it will hold its Loyalty Service Awards.

ARTHUR P. TUGADE

Secretary Department of Transportation

ARMEST congratulations to the Civil Aviation Authority of the Philippines (Caap) on your 11th year.

I laud your dedication and commitment in keeping the Philippine skies and gateways safe, efficient and convenient for our passengers and guests.

The past year has brought us numerous triumphs. We remain on track in night-rating our commercial airports, with 22 out of 42 airports night-rated at the start of the year.

We have covered 100 percent of Philippine airspace with the addition of 10 new radars, through the establishment of the communications, navigation, surveillance/air traffic management system CNS/ATM. We are opening new airports and re-

habilitating existing ones. Finally, we have more and more gateways receiving star ratings for on-time performance.

Simply put, we rolled up our sleeves, did the work and are now reaping the benefits.

Challenges remain, that’s for certain. I trust, however, that none of these are insurmountable because the Department of Transportation, Caap and our other aviation agencies stand united in the name of public service.

May our triumphs and challenges both serve to propel Caap to perform better, soar higher to give the Filipinos the comfortable life they truly deserve.

Congratulations and mabuhay ang Caap!

A8 Monday, March 11, 2019 • Editor: Angel R. Calso

The World BusinessMirror

www.businessmirror.com.ph

China’s Yi Gang affirms pledge to avoid devaluation for trade

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EIJING­­—China’s central bank governor on Sunday affirmed an official promise to avoid manipulating its currency to boost exports, an issue he said American and Chinese negotiators discussed in their latest talks aimed at ending a tariff war.

Yi Gang gave no indication the two sides reached agreements beyond previous commitments produced by meetings of the Group of 20 (G20) major economies. He spoke at a news conference during the annual meeting of China’s ceremonial legislature.

“We stress that we will never use the exchange rate for compet it ive pur poses, nor will we use it to boost China’s exports,” Yi said.

Yi took part in the latest talks in Washington aimed at ending a conflict over Beijing’s technol-

ogy ambitions that has prompted both sides to raise tariffs on billions of dollars of each other’s goods. That has fueled fears it might depress slowing global economic growth.

US complaints that Beijing manipulates the yuan’s government-controlled exchange rate for a trade advantage have taken a backseat lately to frustration at its industrial policy. But American officials are still pressing China to allow the yuan to fluctuate more freely in response to market forces.

“We discussed that both sides should abide by the commitments made at previous G20 summits, such as refraining from competitive devaluation and using exchange rates for competitive purposes,” Yi said.

Negotiators also discussed “ how to respect the r ight of each other’s monetary authority in deciding its own monetary

policy,” said Yi. He said they discussed the importance of “the principle of a market-determined exchangerate regime.”

US and Chinese officials say the trade talks are making progress, but no formal agreements or details of negotiations have been released.

T he Trump administration is pressing Beijing to scale back plans for government-led creation of global competitors in robotics and other technology. Negotiators also want the communist government to curb subsidies for state industry and to commit to ending cyberspying to obtain trade secrets.

The Chinese central bank has widened the band within which the yuan is allowed to fluctuate against a dollar-dominated basket of currencies, but the maximum daily change is limited to 2 percent.

L

H

Beijing tries to keep the yuan at a “reasonable and balanced level,” Yi said. He said regulators were moving “toward a more marketdetermined mechanism.”

Yi, a former professor at Indiana University, was appointed governor of the People’s Bank of China in March, succeeding Zhou Xiaochuan, one of China’s most prominent figures in global finance.

The yuan’s value sank this year, coming close to breaking the symbolic level of seven per dollar before rebounding slightly to about 6.7 to the greenback.

“Our exchange rate is relatively stable. But at the same time, that stability does not mean the exchange rate is fixed,” said Yi. Yi repeated official promises that China’s stock and bond markets would open wider to global investors and its currency would trade more freely but gave no details or a timeline. AP

UK leader says EU officials playing games over Brexit ONDON—With tensions escalating, Britain’s House of Commons leader said on Saturday that European Union officials need to take seriously British proposals for ending the Brexit impasse before a crucial vote in Parliament.

Andrea Leadsom said EU leaders are wrongly accusing Britain of failing to put forward detailed proposals, while offering proposed solutions that Britain had rejected months ago because they would threaten ties to Northern Ireland.

She told BBC she finds it “extraordinary” that EU leaders are being so intransigent and said she is asking herself what “games” the bloc is playing.

Leadsom said the EU is pushing Britain toward a “no-deal” Brexit that would, paradoxically, make it much harder to avoid a hard border between Ireland and Northern Ireland that both sides say they are trying to prevent.

Her harsh words and Britain’s immediate rejection of a proposal offered on Friday by top EU negotiator Michel Barnier signal exasperation as the days dwindle before a make or break vote on Tuesday in Britain’s Parliament on a deeply unpopular withdrawal plan.

The long-promised “meaningful vote” on the 585-page withdrawal agreement will signal whether Prime Minister Theresa May has managed to win over Parliament after a shocking loss by a 230-vote margin on the same

Huawei’s suit against US tries to go where Russia firm failed

proposal in January.

May needs something substantive to show from ongoing crisis talks with the EU taking place this weekend if she is to have any hope of victory for her signature legislation.

The chairman of Britain’s Conservative Party on Saturday urged Parliament to back the bill or risk seeing the entire Brexit process reversed.

Brandon Lewis warned recalcitrant lawmakers, including many in his own party, that if the government’s withdrawal plan is voted down, it is possible Britain will end up staying in the EU despite the 2016 referendum in favor of severing ties to the EU. “We need to win that vote,” he told BBC, stating that a defeat for the withdrawal plan agreed after two years of negotiations would lead to a totally unpredictable situation.

“Nobody quite knows where we will end up—whether we end up with a hard Brexit with no deal... but there is also a risk with Parliament that we end up with no Brexit at all,” he said.

If Parliament rejects the deal again, lawmakers will vote on whether to leave the EU without an agreement on March 29—a prospect with little evident support in Parliament—or to ask the EU to delay Brexit beyond the scheduled departure date.

May has also warned that a second defeat to her bill could thwart the Brexit process altogether. AP

UAWEI Technologies Co., the Chinese telecom giant facing multiple criminal indictments in the US, is expanding on a Russian company’s failed legal argument to bolster its claim that American authorities have gone too far in trying to protect national security.

In a federal lawsuit filed this week in Texas, Huawei claims a US ban on government purchases of its equipment violates the Constitution and could kill the company. The restrictions were imposed in 2018 because American authorities determined there was a risk Huawei products could be used by China for illegal surveillance.

While the courts last year shot down a similar protest by Russian software maker Kaspersky Lab, Huawei contends its case is different because the ban was expanded to include anyone doing business with the government. Legal experts say the lawsuit is a long shot, but the company’s argument is part of its aggressive campaign to combat US allegations of bank fraud, technology theft and spying.

“The interesting question will be whether security concerns allow the government to exert contracting and funding influence outside of its own systems without a judicial determination,” said Michael Risch, a professor at Villanova University School of Law in Pennsylvania.

Huawei’s legal argument isn’t without challenges.

In the Kaspersky case, the company sold software to the US government until 2017, when American officials expressed their concern that the products could be used by Moscow to spy on federal information systems. The Department of Homeland Security directed federal agencies to remove its products from government systems and Congress, then codified the ban against the Russian company under the National Defense Authorization Act, or NDAA, which President Donald Trump eventually signed.

Kaspersky filed two lawsuits: One sought a declaration that DHS harmed the company’s reputation and sales without due process. The second claimed the NDAA violated the Constitution’s “Bill of Attainder Clause,” which forbids Congress from enacting laws that inflict punishment on individuals and corporations without a trial.

A federal judge in Washington dismissed the suits, saying the bans were within the scope of government authority.

A federal appeals court agreed, concluding Congress had the right to block purchase of a specific vendor’s software if it has legitimate security concerns, saying the ban was a “prophylactic, not punitive” measure.

“Given the not insignificant probability that Kaspersky’s products could have compromised federal systems and the magnitude of the harm such an intrusion could have wrought, Congress’s decision to remove Kaspersky from federal networks represents a reasonable and balanced response,” the appeals court said.

Bloomberg News

Ethiopian Airlines flight to Nairobi crashes after takeoff, 157 on board

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DDIS ABABA, Ethiopia—An Ethiopian Airlines flight with 157 people thought to be on board crashed shortly after takeoff on Sunday morning from Ethiopia’s capital headed to Nairobi, the airline said.

The airline’s statement said 149 passengers and eight crew members were thought to be on board the Boeing 737 that crashed six minutes after takeoff from Addis Ababa on its way to Kenya’s capital.

The crash occurred around Bishoftu, or Debre Zeit, some 50 kilometers (31 miles) south of the capital, shortly after taking off at 8:38 a.m. local time, said the airline’s statement.

While the airline said that “search and rescue operations are in progress, and we have no confirmed information about survivors or any possible casualties,” a separate statement by the Ethiopian prime minister’s office offered its “deepest condolences” to

families. There were no immediate details on what caused the crash.

The state-owned Ethiopian Airlines calls itself Africa’s largest carrier and has ambitions of becoming the gateway to the continent. The crash comes as the country’s reformist Prime Minister Abiy Ahmed has vowed to open up the airline and other sectors to foreign investment in a major transformation of the statecentered economy. AP

North Korea may be preparing missile, rocket launch, NPR says

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ORTH KOREA could be preparing to launch a missile or rocket in the near future, according to satellite images of activity at the Sanumdong facility, US radio network NPR reported.

The images, taken on February 22, show trucks and cars parked near the facility.

Rail cars sit in a nearby yard, where two cranes are erected, the report said. The pictures were taken by DigitalGlobe and shared exclusively with NPR, it said.

The facility, near the capital Pyongyang, is where North Korea has assembled some of its intercontinental ballistic missiles and satellite-launching rockets, NPR said.

“When you put all that together, that’s really what it looks like when the North Koreans are in the process of building a rocket,” Jeffrey Lewis, director of the East Asia Nonproliferation Project at the Middlebury Institute of International Studies at Monterey, told NPR. Lewis said it was impossible to know if North Korea is preparing a military missile or a space rocket.

The release of the images comes after Donald Trump abruptly ended a summit with Kim Jong Un in Hanoi late last month after the US president said the North Korean leader asked for all US sanctions to be lifted in exchange for

the dismantling of the country’s main nuclear complex.

Trump said on Wednesday that he’d be very disappointed in Kim if reports are accurate that North Korea has begun rebuilding a separate missile test site it dismantled last year. Images from Beyond Parallel, part of the Washington-based Center for Strategic and International Studies, showed that North Korea was rebuilding a long-range rocket site at the Sohae Launch Facility.

The US is aware of the satellite images but hasn’t drawn the same conclusions as experts, a senior official at the US State Department said on March 8. Bloomberg News

A10 Monday, March 11, 2019 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

Is there a foreign press agenda?

I

F you want accurate information and analysis about the Philippines, probably the last place where you can find them is in the foreign press. Yet, the amount of analysis and information about the Philippines —written in English—is many times higher than for our neighbors, such as Thailand and Indonesia.

Simply doing an Internet search of “news” about those two countries, you would find genuine news—trade deals, natural disasters, and stories like “Meet Thailand’s First Transgender Woman to Run for Prime Minister.” But you will not find much commentary like “Duterte Could Turn Philippines into the Land of Easy Money and Build, Build, Build.”

Let’s be honest. Most of these articles and commentary about the Philippines appear in major Western publications like the New York Times, Forbes magazine and The Financial Times. Do the editors of these press sources really believe there is a clamor for commentary about the Philippines in Chicago, Portsmouth, England or Dusseldorf in Germany?

Maybe their targeted audience is not in their home countries.

Maybe all this brilliant analysis is written for Filipinos.

The author of the “Build, Build, Build” commentary mentioned above is Panos Mourdoukoutas, who lists his qualifications as professor and chairman of the Department of Economics at LIU Post—a private university—in New York. Beginning on February 23, 2019, out of his eight pieces published by Forbes magazine, three are about the Philippines. The other five are about US retailer Best Buy, two about Tesla Inc., one about Airbnb, and another on US home and auto sales.

In addition to these, since January 1st, Mourdoukoutas has written six more pieces on the Philippines. Apparently, Forbes readers are borderline obsessive and desperate for analysis about the Philippines, unlike they are about Indonesia and Thailand. Or maybe there is another reason.

With the exception of the United States, England, and former British colonies, the Philippines has the highest percentage of English speakers in the world at 94.73 percent. If you are going to write about Thailand, you need to make sure Americans and Brits are interested since only 27.16 percent of Thais can understand the King’s English. Less than 20 percent of all Indonesians could read Mourdoukoutas’s wisdom.

Mourdoukoutas has been contributing to Forbes since June 2011. His first column about the Philippines was published on August 28, 2016, followed up by “Rodrigo Duterte Is Crushing Philippines’ Stocks” on November 6 and “Rodrigo Duterte FlipFlops, Again” on November 13, 2016. Mourdoukoutas did not mention that he actually called the 2016 low in the local stock market (6,729), which, after his column, rallied 2,000 points to the 2018 historic high.

Everyone is entitled to his or her own viewpoint and we want to hear diverse opinions. But it is interesting that Mourdoukoutas never discovered the Philippines until after the election of President Duterte and, more specifically, the change in direction of Philippine foreign policy.

In celebration of Women’s Month Atty. Jose Ferdinand M. Rojas II

RISING SUN

T

HE National Women’s Month Celebration every March is part of the worldwide observance of the International Women’s Day on March 8. For this month, there are many initiatives by women and for the women in the fields of business, politics, science, arts and culture, and many other sectors.

I would like to allot some space here to mention just a few of these programs and projects so that it can also serve as an invitation for the general public.

At the Cultural Center of the Philippines, the annual Readathon: Dramatic Reading of Plays by Women is happening again this year, on March 15 and 16 from 8 a.m. to 6 p.m. at the Silangan Hall of the CCP Main Building. This event, which is a flagship project of the CCP Gender and Development Committee and is

#Balance for Better!

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Since 2005

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being presented in partnership with the Women Playwrights International-Philippines, is open to the public.

Various monologues and plays written by women from different regions of the country will be featured in the Readathon.

On the first day of this event, there will be a simultaneous Mama

LEGALLY SPEAKING

T

HE Philippines is described as a nation of strong women, who directly or indirectly run the family unit, businesses, government agencies, and in recent years the highest positions in the three separate and coequal branches of the government.

Indeed, institutional empowerment of women in the Philippines goes as far back to 1975 under President Ferdinand E. Marcos with the establishment of the National Commission on the Role of Filipino Women (now the Philippine Commission on Women), the primary policy-making and coordinating body of the women and gender equality concerns under the Office of the President. Subsequent presidents, likewise, recognized the role of women in nation building: (1) President Corazon “Cory” C. Aquino issued Proclamation 227 (1988) “Providing For the Observance of the Month of March as ‘Women’s Role in History Month’” and Republic Act 6949 (1990) “Declaring March 8 of Every Year as a Working Special Holiday to be known as National Women’s Day.” President Cory is also credited for her Philippine Development Plan for Women; (2) President Fidel V. Ramos established the Gender and Development Budget; (3) President Joseph “Erap” E. Estrada had a Philippine Agenda for Women Empowerment; (4) President Gloria Macapagal-Arroyo saw

the enactment into law of the Magna Carta on Women and the Framework Plan for Women.

Despite the landmark achievements by way of legislation and government policy, there still is a glaring disparity between the fulfillment of women’s needs, on the one hand, and the services and protections afforded to women by the State. The United Nations 2019 Theme for Women’s Month is “Better the Balance, Better the World” (#Balance for Better). We have a long way to go for our women. March being Women’s month, allow me to quote Section 2 (Declaration of Policy) and Section 3 (Principles of Human Rights of Women) under Republic Act 170 (August 14, 2009) “The Magna Carta of Women”: “Section 2. Declaration of Policy—Recognizing that the economic, political, and sociocultural realities affect women’s current condition, the State affirms the role of women in nation building and ensures the substantive equality of women and men. It shall promote empowerment of women and pursue equal opportunities for women

Makers Market called Gawa ng Ina Mo, organized by the Old Manila Eco Market. On the second day, Gantala Press is running Gandang Ganda sa Sariling Gawa, a zine and book fair featuring works by women. If you have questions about any of these events, you may send a message to Ariane Sagales through 0927-776-6893.

On March 14 at the University of the Philippines-Solair (School of Labor and Industrial Relations), a forum for freelance writers will be happening from 9 a.m. to 5 p.m.

This is being organized by the international trade union federation UNI Global Union-Asia & Pacific, in partnership with the Freelance Writers’ Guild of the Philippines, an organization of freelance writers started by its female Founder Imelda “Aimee” Morales.

The event, called “UNITE! Understanding the Current Work Landscape of Freelance Writers in the Philippines,” will feature former Labor Secretary Rene E. Ofreneo and Atty.

Alvin Alburo as two of the morning session speakers who will talk about the laws governing freelance writers.

The afternoon session focuses on the opportunities and challenges being faced by freelance writers today.

Forum speakers and participants represent various sectors in the field of freelance writing: corporate, independent media, film, government, nongovernment organization/intergovernmental organizations, web/ online, book publishing and print.

Although physical participation to the event is by invitation, the proceedings will be live-streamed on the Freelance Writers of the Philippines’s Facebook page. For inquiries, you may send a message to 0921-4800-342.

Supporting events by and for women is only one of the ways by which we can celebrate Women’s Month this year. Find similar events in your locality and support these by promoting them and participating in them. Happy Women’s Month to all of my female readers!

Mabuhay po kayo!

President Duterte has three years to go. We have seen the President’s political will in dealing with his war against drugs and in his crusade against corruption. Is it too much to hope that his attitude toward women would change? Perhaps, his policy advisers would want to read the Magna Carta on Women and give him the proper advise, rather than laugh at or forever apologize for his misogynistic remarks.

domestic laws to recognize, respect, protect, fulfill, and promote all human rights and fundamental freedoms of women, especially marginalized women, in the economic, social, political, cultural, and other fields without distinction or discrimination on account of class, age, sex, gender, language, ethnicity, religion, ideology, disability, education and status. The State shall provide the necessary mechanisms to enforce women’s rights and adopt and undertake all legal measures necessary to foster and promote the equal opportunity for women to participate in and contribute to the development of the political, economic, social and cultural realms.

“The State, in ensuring the full integration of women’s concerns in the mainstream of development, shall provide ample opportunities to enhance and develop their skills, acquire productive employment and contribute to their families and communities to the fullest of their capabilities.

“In pursuance of this policy, the State reaffirms the right of women in all sectors to participate in policy formulation, planning, organization, implementation, management, monitoring, and evaluation of all programs, projects and services.

It shall support policies, researches, technology, and training programs and other support services, such as financing, production and marketing to encourage active participation of women in national development.”

“Section 3. Principles of Human Rights of Women—Human rights are universal and inalienable.

All people in the world are entitled

and men, and ensure equal access to resources and to development results and outcome. Further, the State realizes that equality of men and women entails the abolition of the unequal structures and practices that perpetuate discrimination and inequality. To realize this, the State shall endeavor to develop plans, policies, programs, measures, and mechanisms to address discrimination and inequality in the economic, political, social, and cultural life of women and men.

“The State condemns discrimination against women in all its forms and pursues by all appropriate means and without delay the policy of eliminating discrimination against women in keeping with the Convention on the Elimination of All Forms of Discrimination Against Women and other international instruments consistent with Philippine law. The State shall accord women the rights, protection and opportunities available to every member of society.

“The State affirms women’s rights as human rights and shall intensify its efforts to fulfill its duties under international and

See “Kapunan,” A11

Opinion BusinessMirror

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Replacing the most important number in the world

I

The finer line Siegfred Bueno Mison, Esq.

THE PATRIOT

By Satyajit Das | Bloomberg Opinion

N deciding to replace key interbank rates, financial markets have created their own version of a Y2K problem: how to ensure existing structures don’t collapse during the transition.

Hyperbolically termed the most important number in the world, Libor (London interbank offered rate) is a key market interest rate. It evolved in conjunction with eurocurrency markets in the mid-1960s.

The British Bankers Association formalized the arrangements in 1986, facilitating the use of Libor to price loans and act as a reference rate for interest-rate derivatives.

Today, Libor and its equivalents in other major currencies are used for a wide variety of transactions, including deposits, loans, bonds and derivatives. While comprehensive statistics are unavailable, it’s estimated that somewhere around $370 trillion of transactions are linked to the rate. While the bulk of transactions are short-term, one year or less, some have longer maturities that can extend to 30 or more years. Changing such ubiquitous and important benchmarks is a fraught challenge.

Several factors are driving the changes. The basic concept of Libor, which is based on a survey where participating banks advise the rate at which institutions can borrow from each other in the London interbank market, is flawed. Grounded in a different ethical era, the self-regulated system is vulnerable to abuse. Traders have colluded to influence rate sets to benefit their positions. In 2008-09, banks, with alleged implicit support from regulators, submitted artificially low rates to calm nervous markets.

Banks eventually paid around $10 billion in penalties, a few bankers were jailed and several senior staff resigned. In the postcrisis period, trading volumes in the interbank markets have declined, making the market rate less reliable. Potential legal liability has made banks reluctant to supply quotes used to determine the benchmark.

Following extensive reviews, several replacement rates have emerged.

In the US, there’s SOFR (Secured Overnight Financing Rate), which is based on the cost of overnight loans, using repurchase agreements secured by US government debt. The European Central Bank is developing an unsecured overnight rate based on transaction data available to member central banks. Japan favors Tona (Tokyo Overnight Average), based on unsecured money market rates administered by the Bank of Japan.

The UK has selected Sonia (Sterling Overnight Index Average), which reflects the unsecured overnight funding rates of banks and building societies. Switzerland proposes Saron (Swiss Average Rate Overnight), based on repo rates administered by the SIX Swiss Exchange.

There are problems with all these potential replacements, however.

Competing proposals in some currencies and different approaches between rates create inconsistencies and complexity. ICE Benchmark Administration Ltd., currently responsible for overseeing Libor, has proposed switching to the US Dollar ICE Bank Yield Index, which competes with SOFR. As Libor isn’t being eliminated—regulators will simply no longer force banks to continue supporting the benchmark—it’s possible that different rate mechanisms could coexist in the future, creating confusion. The proposed benchmarks are

Kapunan. . .

continued from A10

to them. The universality of human rights is encompassed in the words of Article 1 of the Universal Declaration of Human Rights, which states that all human beings are free and equal in dignity and rights.

“Human rights are indivisible.

Human rights are inherent to the

Several factors are driving the changes. The basic concept of Libor, which is based on a survey where participating banks advise the rate at which institutions can borrow from each other in the London interbank market, is flawed.

Grounded in a different ethical era, the self-regulated system is vulnerable to abuse. untested. It’s unclear whether they will prove robust and less susceptible to manipulation.

Libor was designed to enable banks to lend at a spread over their marginal cost of funds. Some new rates don’t reflect the credit risk of banks. For example, SOFR and Saron reflect essentially risk-free funding costs. The margin between risk-free and bank rates can be volatile, especially in times of stress. Since 2000, the spread between three-month Libor and overnight repo rates (a useful proxy for SOFR) averaged around 3040 basis points but rose to 460 basis points in 2008. Where government rates become the market benchmark, banks may increase lending rates to compensate for the uncertainty of their actual funding costs.

Unlike Libor, which fixes the rate for periods such as one, three or six months, some proposed benchmarks are overnight rates. The lack of term structure creates uncertainty in the cost of funding for borrowers. There are difficulties in agreeing on standard methodologies for pricing the credit and term risk to be added to the risk-free rate.

A further issue relates to hedging interest rate risk. The nascent derivative markets in new benchmarks don’t currently approach the quality, depth and liquidity of established Libor-based instruments.

The new benchmarks, especially where the reference rate used in a loan or investment differs from that underlying the derivative, create mismatches that will be exacerbated in volatile conditions. This may create hedge accounting difficulties, forcing mark-to-market gains to be recognized as current-year gains or losses, creating earnings unpredictability that may discourage risk management.

Finally, with Libor being phased out by 2021, the transition from existing to new rate structures presents logistical challenges. It requires identification of affected transactions, selection between migration to the new rates or using fallback arrangements and then documentation of the changes. Procedural and authority issues, as well as legal and tax implications—for example, from the termination of certain hedging arrangements—complicate the transition. Asymmetric effects on parties, creating winners and losers from rate changes, increase the risk of litigation. Bank of England Governor Mark Carney has warned of the complexity of transition.

More than 200 years ago, the philosopher Edmund Burke cautioned against destroying an edifice or a system, which has stood for any length of time without ensuring that there was something better to take its place.

Financial markets and regulators would do well to heed that advice.

dignity of every human being whether they relate to civil, cultural, economic, political or social issues.

“Human rights are interdependent and interrelated. The fulfillment of one right often depends, wholly or in part, upon the fulfillment of others.

“All individuals are equal as human beings by virtue of the inherent dignity of each human person.

No one, therefore, should suffer

I

N the United States, while at-will employees are subject to termination without any specific cause, wrongful termination can still happen whenever employer retaliation or discrimination is involved. Examples of retaliation include being fired for being a whistle-blower or unwillingness to commit an illegal act as ordered by an employer. Discrimination can be established if an employee has been fired because of race, nationality, religion, gender or age.

In the Philippines, the technical term used to describe people who are fired is “terminated for just causes” whereas people who are laid off are considered “terminated for authorized causes.” An employee can be fired for just causes such as misconduct or any other activity always related to employee behavior. On the other hand, an employee can be laid off for authorized causes that almost always have nothing to do with the employee’s performance or conduct.

Layoffs occur when a company undergoes restructuring or downsizing.

There is a finer line between being fired and being laid off, which affects the amount of the severance package given to the employee and his subsequent employability.

In my article “Game over?” my brother in law Tom corrected the inaccuracies of my narrative about him being laid off by his previous employer, Motorola. Tom was

neither fired nor laid off by Motorola.

He voluntarily left the company as it suffered business reversals. I have encountered quite a few entities that, similar to Motorola, consider their people as their greatest asset. Hence, these few company owners are more interested in keeping their work force intact than in maximizing profits for themselves. While downsizing, as in the case of Motorola, and outsourcing, as in the case of Nike, are legitimate managerial prerogatives to manage company resources, decision makers need to be more conscientious in using them. If done by impulse, those decisions can lead to a frightful ordeal for the ordinary employee. All companies will encounter business cycles—up and down trends—that will impact their profitability. As much as employees are expected to be productive, employers are also expected to look after employee welfare, which includes avoiding layoffs

Monday, March 11, 2019 A11

as much as they can.

Work ethic in the Bible tells us that all employees must work well not only in the presence of their employers or to make other people happy. More specifically, Ephesians 6:6-7, tells us, “Work because you really want to obey God. Be happy to work as well as you can for your human masters. Work as if you were working for the Lord, and not only for people”. These norms of conduct apply to both employers and employees. Therefore, the finer line that any employer should be more mindful of is that his decision will not only have to answer to the owner/ stockholder or to the customer or to the government regulator or to higher management but, more importantly, to Him. In the Bible, Galatians 6:9 tells us,”So, we should not stop doing what is good. We should not get tired of it.

If we do not get tired, then we shall receive a good result at the proper time.” Business decisions, when made and implemented in keeping with the work ethics as mentioned, can lead to real profitability, for the company and in our lives. There is that finer line, which only a few business leaders recognize, between pursuing things for the company and doing things for Him, which, ultimately, affects the life of an employee.

Motorola, as would other companies do, started laying off employees for corporate survival. Of the 600 engineers in Tom’s group, half were given the layoff notice and were given three months to find new jobs.

Motorola considerably helped during this transition as everyone who were laid off found jobs before the deadline,

and most got 10 percent higher pay at their new jobs. Successive layoffs were made; all with sufficient severance pay. But when Google took over Motorola, things did not improve as more layoffs were made. It was at this point that Tom seized the opportunity to work at Dell. During his going-away party, hosted by his direct superior, all the remaining engineers, bosses included, happily reminisced the past and toasted to the future of their respective careers. Tom considers Motorola as a good company to work for. I suppose Motorola had leaders who understood the finer things in making business decisions. The company looked after the welfare of its employees as it openly declared that workers are their best assets, at least for the first 10 years that Tom was with the company. But, under a new management, the company still had to let go off of its employees since the new leaders considered the brand as the most important thing, instead of its people.

Tom thinks that a company brand is a measure of past success, whereas future success largely depends on the people working hard to keep that brand intact. Others will argue that the brand is what attracts good people to the company. Hence, the brand must be protected at all costs, even at the expense of its employees. Understanding that finer line between the rationale behind our business decisions will help us better manage the company and our people.

For questions and comments, please e-mail me at sbmison@gmail.com.

Want to understand the shale boom? Try a microscope

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By Julian Lee | Bloomberg Opinion

OOK at much of what is written about the oil market, and it may be tempting to conclude that crude oil is a homogenous commodity, the same the world over and seamlessly interchangeable. It’s not.

Once you appreciate that all crudes are not created equal, you can see how important it is that long-held expectations for a glut of the heaviest types have turned out to be incredibly wrong. Not a producer or refiner in the world is immune to this development, which is having a growing impact on prices and supplies.

Crude oil consists of a soup of molecules made up of varying numbers of hydrogen and carbon atoms—hence, hydrocarbons. The composition of crudes from different oil fields, and even from different parts of the same oil field, can diverge sharply. Many contain pollutants that have to be removed, with sulfur the most prevalent.

Quality is generally a function of two features. One is sulfur content. Crudes containing lots of sulfur are called sour, those with little are sweet. Sulfur needs to be removed to meet finished-product quality specifications, which adds to the cost of processing and limits the number of refineries that can handle sour grades.

The second is API gravity, a gauge of density. Crudes with a high API gravity are termed light, and those with a lower API gravity are heavy. Light crudes naturally contain lots of the smaller molecules, including those that form gasoline and diesel, while heavy crudes naturally contain lots of larger molecules that require more complex refining processes to break them up into these high-value products.

The latter also tend to contain more

sulfur than lighter ones, making them doubly costly to refine into useable products. For this reason, heavy, sour oil tends to be cheaper than light and sweet.

When the US shale boom was still just a glint in the eye of George Phydias Mitchell, regarded as the father of the industry, the market’s overriding concern was that the world’s supply of oil would get steadily heavier and sourer in the years ahead. That portended a mismatch with demand, which was expected to be increasingly concentrated in the higher-value light products used to move people and things, rather than the heavy ones used to generate heat or electricity.

To add to the difficulty, environmental regulations were stipulating lower and lower levels of sulfur in fuels—a requirement that is to be extended to ships from January 2020.

As a result, refiners around the world, and particularly along the US Gulf coast, invested in expensive equipment to crack big hydrocarbon molecules and remove sulfur. Meanwhile, emerging economies in Asia invested in big new plants to process heavy, sour crude from the Middle East. Those same Middle Eastern producers were also busy building new refineries for their cheaper heavy crudes.

These developments are restricting the volume of heavy sour crude available for export to refiners that don’t have a long-term supply deal.

But George and his successors have turned the world on its head.

Far from getting heavier, new global supply is now predominantly very light and very sweet. Almost 86 percent of the incremental production between 2015 and 2018 was light, according to recent data from Rystad Energy AS, and nearly three quarters of the additions expected by 2023 are also expected to fall into that category.

Meanwhile the supply of heavier oils is falling.

Soaring US output has driven Opec to implement another round of voluntary output cuts in an effort to balance global supply and demand. The combined production of Saudi Arabia, the United Arab Emirates and Kuwait has fallen by more than 1.2 million barrels a day since November. Off the coast of West Africa, steep decline rates at deepwater fields are cutting into the flow of heavy and medium grades from Angola, where a lack of investment has slowed the development of new fields to replace the losses.

And then there are the recent rounds of sanctions on Iran, which have cut the Persian Gulf country’s production by a similar amount. Waivers granted to eight buyers of Iranian oil expire in

early May, and President Donald Trump has yet to decide whether he will renew any of them. If he doesn’t, Iran’s oil production will fall further.

In the Caribbean, mismanagement of oil industries means that heavy oil production from two key countries is also dropping fast.

Mexico and Venezuela are both in long-term decline, and the sanctions recently imposed on Petroleos de Venezuela will accelerate the fall, particularly if they are extended to target non-US buyers of the country’s crude.

The shortage of heavy crudes is already having a market impact. A useful way to see this is to compare what Saudi Arabia charges buyers of its Arabian Heavy grade to prices for its Arabian Extra Light.

The chart above shows how the gap has narrowed. Expect that trend to continue if heavy crudes become even scarcer and an evergreater proportion of the supply is locked into domestic refineries or long-term supply deals with Asian partners. Too bad for the refiners who have made all the expensive investment to prepare for a heavycrude world.

discrimination on the basis of ethnicity, gender, age, language, sexual orientation, race, color, religion, political, or other opinion, national, social, or geographical origin, disability, property, birth, or other status as established by human-rights standards.

“All people have the right to participate in and access information relating to the decision-making processes that affect their lives and

well-being. Rights-based approaches require a high degree of participation by communities, civil society, minorities, women, young people, indigenous peoples and other identified groups.

“States and other duty-bearers are answerable for the observance of human rights. They have to comply with the legal norms and standards enshrined in international humanrights instruments in accordance

with the Philippine Constitution.

Where they fail to do so, aggrieved rights-holders are entitled to institute proceedings for appropriate redress before a competent court or other adjudicator in accordance with the rules and procedures provided by law.”

President Rodrigo Duterte (Digong) has three years to go. We have seen the President’s political will in dealing with his war against drugs

and in his crusade against corruption. Is it too much to hope that his attitude toward women would change?

Perhaps, his policy advisers would want to read the Magna Carta on Women and give him the proper advice, rather than laugh at or forever apologize for his misogynistic remarks.

But, alas, can water spring higher than its source?

2nd Front Page BusinessMirror

A12 Monday, March 11, 2019

www.businessmirror.com.ph

Israeli energy firm eyes Palawan exploration

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By Lenie Lectura

@llectura

SRAELI firm Ratio Petroleum Ltd. wants to partner with Philippine National Oil Company-Exploration Corp. (PNOC-EC) to jointly explore possible petroleum reserves in the east Palawan basin.

Ratio Petroleum was awarded Service Contract (SC) No. 76 covering Area 4 of Eastern Palawan, as part of the Department of Energy’s (DOE) fifth Philippine Energy Contracting Round (PECR), launched in May 2014.

SC 76 spans 416,000 hectares across the east Palawan basin for

potential oil and gas resources. The seven-year exploration project is expected to cost $34.35 million, which will be used for studies, data gathering and drilling activities over the initial seven-year contract period.

DOE Undersecretary Donato Marcos said Ratio Petroleum pro-

$34.35M The cost of the seven-year exploration project proposed

by Ratio Petroleum, which won the Service Contract 76 in the fifth contracting round of the Philippine Department of Energy

posed to expand the area in which exploration activities will be conducted and enter into a farm-in agreement with PNOC-EC. “They have expressed interest in nominating for the expansion of SC 76 to get a maximum area of 1.5 million hectares, farming in with PNOC-EC and also looking at joint nomination with EC. They have expressed serious interest,” said Marcos.

DOE Secretary Alfonso Cusi said representatives of Ration Petroleum are in the country to discuss their plans. “Ratio people are in town since Monday,” said Cusi last week.

There are currently 23 active petroleum service contracts in the Philippines with the following developers: Shell Philippines Exploration, Total E&P, PNOC-EC, Nido Petroleum, Philodrill, PXP Energy and Galoc Production Company.

The largest and most successful natural gas industrial project in Philippine history is the Malampaya Deep Water Gas-to-Power Project.

Ratio Petroleum was established in 1992 and has a number of largescale operations at the Levant basin in the eastern Mediterranean Sea, off the coast of Israel, as well as offshore operations in the Repub-

lic of Malta and the Co-operative Republic of Guyana.

19 firms

MEANWHILE, Marcos said the agency has received firm interests from nine firms to explore pre-determined areas for possible oil and gas reserve, while 10 firms have nominated their respective areas of interest under the Philippine Conventional Energy Contracting Program (PCECP), a hybrid of PECR. The DOE is aggressively pursuing the implementation of the PCECP so the country could establish a strong “Explore, Explore, Explore” program.

He did not identify the 19 interested firms.

Under the PCECP, there are two modes of application potential in-

vestors may pursue.

First, interested parties may wish to bid on the 14 Pre-Determined Areas identified by the DOE (one in Cagayan, three in East Palawan, three in Sulu Sea, two in Agusan-Davao, one in Cotabato and four in West Luzon). The application period is 180 days, and was officially opened last November 22.

Alternatively, the applicants could also nominate and publish other areas of interest. In this mode, applications could be submitted at any time of the year, and would be subjected to a 60-day challenge period.

All accepted applications shall be evaluated by the DOE Centralized Review and Evaluation Committee based on the criteria pursuant to Department Circular No. DC201712-0017.

Water crisis threatening PHL–Poe SENATE MUST EXPLAIN ITS ‘POST-BICAM’ P75-B A REALIGNMENT–ANDAYA A SSERTING that “Right to Water and Sanitation” has been recognized by the United Nations, Sen. Grace Poe found it unfortunate that in the Philippines, “the right has yet to be fully enjoyed by our people.”

In a statement issued on Sunday, the senator warned that the country is facing a looming water crisis, prodding the government to “be more proactive in addressing the problem by adopting a radical approach in tackling existing problems or shortcomings” in the water-supply system.

Citing the urgent need to find sustainable way to use this precious resource, Poe pointed out that “we are an agricultural country and that says a lot regarding the importance of water supply,” adding that “we have provinces that have year-round sufficient water supply, enabling their farmers to plant and harvest year-

round, as well.” She lamented that some provinces lack such water supply, making huge tracts of agricultural lands idle during lean months.

According to her, water supply and distribution are on top of the short list of natural monopolies, and it could be readily seen as the gauge of good governance or management.

“This is literally the lifeblood of an agricultural country like the Philippines,” she added. “Enough attention and funding must be devoted to this, because this is what sustains our farms, and the livelihood of our farmers. This will ensure our food supply is adequate not just in some places, but in the entire country,” Poe said in Filipino.

The senator suggested the need to “look into better technologies and infrastructure to harness all our natural water supplies.”

“What for are we an archipelago

EASTERLIES AFFECTING SOUTHERN LUZON, VISAYAS AND MINDANAO as of 4:00 am - March 10, 2019

surrounded by bodies of water? We also need to capitalize on the fact that lots of typhoons that bring heavy rains frequently visit the country,” the senator said, suggesting that, “We can hit two birds with one stone—prevent flooding and somehow redirect rainwater to arable agricultural lands or to treatment facilities, turning said water into home-friendly public utility for all our households. There should really be a meaningful discourse, planning and funding towards these types of projects to improve our water systems.”

At the same time, Poe pointed to the many overlaps in the regulatory framework for water, with economic regulations provided under a number of different arrangements, thereby resulting in an unstable and fragmented regulatory framework.

She lamented that “this fragmentation has had significant implica-

tions” in the effective and adequate delivery of water and sanitation services in the country. “Because there is no lead agency in the water resource sector, the different coordination systems, functions and jurisdictions of the various agencies have made it impossibly hard for water and sanitation to be collectively managed,” she added. “Thus, the establishment of a unified agency that would focus on water, sewerage and sanitation is certainly very important.”

She then justified her filing a bill to “create the Water Regulatory Commission and rationalize the economic, as well as administrative regulation of water utilities through an independent, quasi-judicial body.”

Among its functions are to set the policy for water supply, sewerage and septage management; issue licenses; set, review and approve rates; and other vital functions. Butch Fernandez

BI deporting 2 Koreans wanted for serious crimes

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HE Bureau of Immigration (BI) announced at the weekend its decision to deport two Korean nationals earlier arrested for serious criminal offenses.

BI Commissioner Jaime Morente identified the Koreans as Oh Gwangrok, 48, and Park Seungjae, 44.

They are now detained at the bureau’s detention facility in Camp Bagong Diwa, Taguig City.

Oh, according to the BI, is wanted for fraud in Korea involving $48,000 and embezzling a victim’s car worth $41,000.

Morente earlier issued a warrant of deportation against Oh pursuant to a summary deportation order that the BI board of commissioners issued against him on November 21 last year for overstaying and holding an expired passport.

Park, who is also an undocumented alien for holding an expired passport, is reportedly wanted for smuggling and violating Korea’s customs act.

He is accused of smuggling 11 types of counterfeits, including federal reserve bonds worth $500 million, in violation of an import prohibition on forged currency, bond or stock.

Agents of the BI-Fugitive Search Unit (FSU) arrested Oh in the vicinity of Remedios Circle in Malate, Manila, last Monday by virtue of a warrant of deportation issued by Morente.

Park was arrested last Tuesday inside his unit at the Tivoli Garden Residences in Mandaluyong.

“We are sending them back to Korea where they are wanted by authorities for serious offenses. The Philippines is not a sanctuary for foreign criminals,” Morente said. Joel R. San Juan

FTER baring the P79 billion worth of alleged realignment in the P3.757-trillion national budget by the Senate leadership, the chairman of the House Committee on Appropriations on Sunday said the upper chamber has P75 billion in post-bicam realignment in 2019 national budget.

Camarines Sur Rep. Rolando Andaya Jr., in a statement, said it is now the senators’ turn to explain to the public the P75-billion realignment made by the Senate after both chambers had already ratified the 2019 General Appropriations Act (GAA).

“Senators are desperately looking for ghosts in the 2019 General Appropriations Act. The problem is, they seem to find ghosts everywhere except at their own house,” Andaya said.

“If post-bicam itemization of lump-sum budget by the House of Representatives is unconstitutional or irregular, what about post-bicam realignment by the Senate of P75 billion in the national budget?”

Andaya added.

According to Andaya, the Senate’s realignment is also nowhere to be found in the bicameral conference committee report. “ Worse, u n l i ke i n t he House of Representatives, t here a re no proponent s for the Senate realignment.

Me a n i n g , t he f u nd s a re parked somewhere in the national budget. This is clearly parked pork,” he added.

Of the P75-billion post-bicam realignment by the Senate, at least P25 billion was parked as additional fund for the senators’ pet projects in the Department of Public Works and Highways (DPWH), Andaya claimed.

“The senators may try to justify the realignment by describing them again as institutional amendments. But how can they describe the Senate’s P25-billion realignment that was parked in the DPWH budget? Still institutional amendments?” he added.

“No details of the parked funds were contained in the bicam report,” Andaya said.

The lawmaker said the senators have also allocated funds

“Senators are desperately looking for ghosts in the 2019 General Appropriations Act. The problem is, they seem to find ghosts everywhere except at their own house.” —Andaya

to districts, saying members of Congress will again “be at a loss [as to] how the parked funds of the senators found their way to the congressional engineering districts.”

“We have no means of extrapolating the proponent senators for these projects since the Senate did not submit the individual names of the proponent per project,” he said.

Meanwhile, Andaya clarified that the lower chamber was only “itemizing” and not manipulating the 2019 budget as claimed by some senators.

“The House, for its part, did its job. We itemized our amendments. The itemization was within the parameters of the Bicameral Conference Committee Report ratified by each chamber,” he said.

“If lump sums are not itemized, then that is illegal and unconstitutional.

That was the main reason we scrutinized the budget proposal, because there were insertions made without the knowledge of officials concerned. Now, it seems we go back to the same practice after all has been said and done,” he added.

The two chambers of Congress had ratified the 2019 budget on February 8. However, the House said it is still preparing the proposed 2019 GAA for printing and will submit it to the President for signature next week.

On Sunday, however, Sen. Panfilo Lacson Sr. bared a consensus among key Senate leaders to back a position of Senate President Vicente Sotto III not to sign the budget bill unless Speaker Gloria Macapagal-Arroyo and Andaya take back the amendments they made to the version already approved by the bicameral conference committee and separately ratified by both chambers.

Jovee Marie N. Dela Cruz

Editor: Efleda P. Campos

Companies BusinessMirror

Monday, March 11, 2019

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DMCI allocates ₧31B for 2019 capital outlay E

By VG Cabuag

@villygc

NGINEERING conglomerate DMCI Holdings Inc. is allocating P31 billion in capital expenditures this year, slightly higher than its actual spending in 2018.

The figure excludes the spending for Maynilad Water Services Inc., in which DMCI only had a minority interest, said Herbert M. Consunji, the company’s chief finance officer.

He said the spending this year was higher than last year’s actual spending of about P27 billion.

Consunji said the bulk of the spending of about P18 billion

will be for its property development arm, DMCI Homes, which is targeting about P38 billion in reservation sales; P18 billion for Semirara Mining and Power Corp.; P1.3 billion for its off-grid electricity supplier DMCI Power Corp.; and the rest will be for its other units.

DMCI ended 2018 with a net income of P14.5 billion, a 2-percent de-

cline from the previous year’s P14.8 billion. Revenues were slightly higher by 3 percent to P83 billion from the previous year's P81 billion.

For the fourth quarter alone, DMCI Holdings recorded P3 billion in net income, slightly lower than P3.1 billion during the same period in 2017.

“Our real estate, construction, offgrid power, mining and water businesses delivered healthy returns in 2018, but the weaker-than-expected performance of Semirara Mining and Power Corp. [SMPC] tempered our consolidated profits,” DMCI Holdings Chairman and President Isidro A. Consunji said. “SMPC faced a series of unforeseen setbacks like the prolonged shutdown of Unit 1 of Southwest Luzon Power Generation Corp., inclement weather and China’s soft ban on coal imports. ”

Excluding nonrecurring income of P38 million in 2018 and one-time loss of P281 million in 2017, core net income of DMCI Holdings fell 4 percent year-on-year to P14.5 billion from P15 billion.

The P38 million nonrecurring income is attributable to a P715million gain on the sale of land by DMCI Homes and a P679-million share in accelerated depreciation of Sem-Calaca Power.

Meanwhile, the one-time items in 2017 included a P117-million share in Maynilad’s redundancy and right-sizing costs, and a P164-million share in the accelerated depreciation of Sem-Calaca Power, among others.

Net income contributions from SMPC fell 14 percent to P6.8 billion, from P8 billion due to a 12-percent drop in coal sales and the nearly eight-month

shutdown of Southwest Luzon Power Generation Corp. (Unit 1).

E xc lud i ng non rec u r r i ng items, SMPC’s core income attributable to DMCI Holdings declined 8 percent from P8.1 billion to P7.4 billion.

DMCI Homes registered a 9-percent increase in net earnings to P3.9 billion, from P3.6 billion due to a 3-percent rise in revenues and a one-time gain of P715 million on sale of land.

Off-grid energy business DMCI Power saw its net earnings surge 30 percent to P465 million from P359 million, driven by a

25-percent increase in energy sales volume.

Meanwhile, DMCI Mining registered a modest income growth of 4 percent to P117 million, from P113 million. The increase was due to a 22-percent rise in nickel shipment volume of higher-grade nickel.

Net earnings share from affiliate Maynilad increased 7 percent to P1.8 billion from P1.6 billion, following a 3-percent increase in billed volume boosted by an inflation rate adjustment of 2.8 percent in January and a 2.7-percent basic charge increase in October.

SBMA 2018 performance trumps previous records

By Henry Empeño | Correspondent

S

UBIC BAY FREEPORT—Despite the downfall of its biggest business locator late last year, the Subic Bay Metropolitan Authority (SBMA) still delivered an impressive corporate performance in 2018 that broke financial records in the 26-year history of the Subic Bay Freeport Zone.

SBMA Chairman and Administrator Wilma T. Eisma declared in her State of the Freeport Address on Wednesday that the Subic agency turned out a balanced scorecard last year: strong financial position for the agency, sustained growth momentum for investors, and increased benefits for stakeholders.

“The closure of Hanjin is a big blow to Subic,” Eisma acknowledged, recalling that the South Korean shipbuilder used to employ 33,000 workers at its production peak.

“But Subic’s financial position remains strong,” she added.

Among the highlights cited by Eisma are a P29.6-billion investment figure that was the highest in seven years; a P3.45-billion revenue that was the biggest since Subic was established in 1992; a P1.45-billion net income that was also the highest ever recorded; and earnings before interest, tax, depreciation and amortization (Ebitda) of P1.84 billion that also topped the charts.

Accordingly, Subic’s 2018 investment total represented an increase of 1,066 percent over the P2.5 billion generated in 2017; the revenue a 12-percent increase over the previous year’s P3.08 billion; the net income a 60-percent surge from P907.9 million in 2017, and also the first time to breach the P1billion mark; and for Ebitda, an 18.98-percent growth over the P1.55 billion posted last year.

The SBMA chief also underscored Subic’s expansion projects, which exponentially jumped from P926.6 million in 2017 to P25.05 billion in 2018, or an overwhelming year-on-year increase of 2,603 percent. She said this was the more telling sign of investor confidence on Subic.

“This means that [investors] who are already here in Subic remain committed, and trust that good things will happen again this year,” she told members of the Subic Bay Freeport Chamber of Commerce, which is hosting the annual Sofa presentation.

Records from the SBMA Business and Investment Group indicated that the biggest fresh infusions committed last year were for the expansion projects of warehousing firm Xantheng (Subic) Int’l Inc. at P15 billion; Rocks Unlimited, P4.6 billion; and Subic Bay Freeport Grain, P4.3 billion.

Routes Asia 2019 seen bringing 1M more seats to Cebu

By Lorenz S. Marasigan @lorenzmarasigan

C

EBU CITY — Routes Asia 2019, hosted by the Queen City of the South and the Department of Tourism (DOT), is expected to yield roughly 1 million more seats to Cebu from different destinations across the globe, akin to what happened to Manila, when it hosted the event a few years back.

Tourism Secretary Bernadette Romulo Puyat said Cebu’s hosting of the 17th edition of the aviation networking event will bolster the government’s bid to further develop the Philippines as a “must-see” destination in Asia, adding the event will likely generate more demand and supply for air travel to the country.

“The Philippines’s hosting of Routes Asia 2019 marks another milestone in our routedevelopment program. There are many more

projects in our pipeline that will allow us to sustain the robust growth of the Philippine travel and tourism industry,” she said.

Routes Asia 2019 attracted over 800 delegates, 100 airline executives, 20 airport representatives and 30 tourism authorities from all over the world. It is the premier routedevelopment affair in the Asia Pacific region.

“We cannot stop now, not after we just reached a record high of 7.1 million visitor arrivals, a 7.65-percent growth rate, besting the average growth rate of 5 percent, according to the United Nations World Tourism Organization,” Puyat said.

She added the country can only “aim higher and dream bigger” as part of the 15-strong powerhouse countries that the World Travel and Tourism Council declared in 2018. These countries were said to have recorded absolute growth in terms of tourism numbers in the last seven years.

Puyat attributed this to the tourism agency’s aggressive push for the development of new routes to and from the different hubs in the Philippines, as well as to the government’s push to build more airport infrastructure. “In 2018 alone, 40 new international routes were mounted by foreign and local airlines from Korea, China, Japan, Hong Kong, Macau, Taiwan and Australia.

We offer a total of 1.6 million total air seats to the Philippines. With this event, We are looking forward to a million more,” she said.

Tourism Undersecretary Benito C. Bengzon Jr. noted that when Manila hosted Routes Asia in 2016, in just a over a year, the Ninoy Aquino International Airport (Naia) was able to “generate an additional 1 million seats.”

“The 1 million seats for Cebu is a fighting target,” he said. “We hope that more airlines are going to mount more flights for us to get more seats.”

Groundbreaking for Tanglawan LNG hub eyed in May

By Lenie Lectura

T

@llectura

ANGLAWAN Philippine LNG Inc. plans to break ground in May for its liquefied natural gas (LNG) hub project, with commercial operations targeted to start by 2023, government officials said last week.

“They are looking at having the groundbreaking early part of May, para mapabilis ang trabaho. Hinahabol natin yung two years magkaroon ng partial operation so that by 2024 there is already a substitute LNG in case gas in Malampaya depletes,” Energy Secretary Alfonso Cusi said.

Tanglawan is a joint venture between Phoenix Petroleum and CNOOC Gas and Power Group Co. Ltd., China’s largest LNG importer and terminal operator. Recently, the two firms signed a memorandum of

understanding (MOU) with state-owned firm Philippine National Oil Co. (PNOC).

The MOU will allow the three companies to explore and discuss business opportunities and cooperation in relation to the equity investment in Tanglawan and other companies relating to the project, PNOC facilities, market development, PNOC banked gas and future energy projects.

“The group is being encouraged to conduct the groundbreaking before May 13,” PNOC President Reuben Lista said.

Cusi said PNOC and Tanglawan are trying to find ways to maximize the remaining 97.67 petajoules (Pj) of Malampaya banked gas, valued at $700 million to $750 million.

“No decision has been made. CNOOC expressed interest. It will make a study, whether to import or buy banked gas. PNOC is exploring all possible solutions, options

in monetizing the banked gas,” Cusi said.

Tanglawan’s LNG project will consist of regasification and receiving terminal with a capacity of 2.2 metric tons per annum.

The facility will help support the demand for a clean, competitive, and environmentfriendly energy source in Luzon, and provide energy security for the nation.

It also aims to develop a gas-fired power-generation facility with up to 2,000 megawatts installed capacity.

“If their LNG power plant will push through, they will study if they can buy our banked gas. They will consider if it is viable for them to buy the banked gas from us when the power plant is operational,” Lista said.

He added one firm offered to purchase the banked gas albeit at “a low price.” Lista did not name the firm, saying discussions are still ongoing.

For new investments, meanwhile, the largest were those of Citic Hotels and Leisures Corp. at P1.34 billion; Mercamundial Inc., P1.07 billion;

and Air Juan Aviation Inc., P679.5 million. Eisma said the SBMA also delivered a strong importexport performance with a 3.6-percent increase in

import value, from P1.77 billion in 2017 to P1.84 billion in 2018, and an 8.2-percent growth in exports from P2.3 billion to P2.5 billion.

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MPT South to open Calaex’s 1st section in Q3

By Lorenz S. Marasigan

M

@lorenzmarasigan

ETRO Pacific Tollways South Corp. (MPT South) should be able to open the first section of the Cavite-Laguna Expressway (Calaex) by next quarter, even as it guns to start the construction of another segment of the thoroughfare sometime this month.

STOCK-MARKET OUTLOOK LAST WEEK

SHARE prices recovered last week, but trading was lackluster after investors remained on the sidelines.

The benchmark Philippine Stock Exchange index gained 155.34 points to close at 7,797.11 points Trading,only averaged for the week at P5.23 billion.

“The market only traded P26.19 billion this week which is below the weekly average. This tells me that investors are still not convinced of the rally and are still sitting on the sidelines waiting,” said Christopher Mangun, research head at Eagle Equities Inc. Foreign investors were net sellers at P296.52 billion.

“Even retail traders that have focused on second liners and speculative issues have started to sit on the sidelines as most of our top gainers for the week were blue chips,” he said.

All other subindices managed to gain points during the week with the exception of the Mining and Oil index that fell 220.58 to 8,139.15.

The broader All Shares index was up 87.29 to 4,817.22; the Financials index gained 77.47 to 1,760.86; the Industrial index surged 242.38 to 11,580.39; the Holding Firms index rose 105.79 to 7,798.76; the Property index climbed 19.69 to 3,945.68; and the Services index increased 32.22 to 1,550.64.

Gainers and losers for the week were equal at 112 and 24 shares were unchanged.

Top gainers were Philippine National Bank, Boulevard Holdings Inc., Macay Holdings Inc., Asian Terminals Inc., Oriental Petroleum and Minerals Corp. A, and Cemex Holdings Philippines Inc. Top losers were Philippine Infradev Holdings Inc., Manila Mining Corp.

B, Greenergy Holdings Inc., Lodestar Investment Holdings Corp. and Philodrill Corp.

This week

THE movement of share prices may remain sideways this week as investors are still looking for impetus to trade.

“Overall, this is a good start for the month of March, but we may continue to see sideways movement in the following weeks,” Mangun said.

Broker 2TradeAsia said investors will stay on the sidelines for now, waiting for the outcome of the May elections.

“Participants will heed for resumption of Congressional session to work on pending bills, among which includes the second phase of the tax program,” it said.

“Seasoned players have to take cognizance in managing risks by setting appropriate entry and exit price targets,” it said, adding it sees immediate support for the main index at 7,500 points and resistance at 7,950.

Stock picks

BROKER Regina Capital and Development Corp. gave a hold recommendation on the stock of PLDT Inc. “Despite strongly bearish indicators, TEL was able to hold its support of P1,025. Nevertheless, the stock still shed 13 points after three consecutive days of ending positively,” the broker said.

It gave a weekly target for the stock at P1,080 per share.

PLDT closed last week at P1,075 per share.

It gave a buy recommendation during breakout on the stock of Metro Pacific Investments Corp.

“MPIC had a very positive week, always managing to close in the green after testing its strong support of P4.56 the week prior. Despite the strongly bullish signals being given off by its indicators, MPIC closed unchanged,” it said.

Shares of MPIC closed at P4.92 apiece. VG Cabuag

Roberto V. Bontia, the company’s president, said his group aims to open the first section of the Laguna portion of the expressway this July, as it targets to complete the construction of the Mamplasan to Santa Rosa-Tagaytay segment in June.

“We will apply for the corresponding toll fee for that particular segment, so roughly P4.50 per kilometer, as defined by the concession agreement,” he said in a recent interview.

For the Cavite side, Bontia said his group has received substantial right-of-way for the third section of the road. This will allow the group to

break ground for Section 3, a 7-kilometer segment runs from the end of Cavitex traversing Kawit until Imus, sometime this month. “Hopefully, we can schedule a groundbreaking sometime in the second or third week of March,” he said.

The company recently secured funding for the construction of the whole Calaex from six banks, raising as total of P24.2 billion from loans. The whole project will cost MPT South roughly P61.8 billion— P34.5 billion to construct and P27.3 billion in premium payments—to build the road.

The facility will start from

Cavitex in Kawit, Cavite, and end at the South Luzon Expressway (Slex)-Mamplasan Interchange in Biñan, Laguna.

The project will involve building a four-lane expressway from these two points through congested residential and industrial areas in Kawit, Imus, General Trias, Dasmariñas and Silang in Cavite, through Santa Rosa and Biñan in Laguna.

The project will have eight interchanges and one main toll barrier.

A priority project of the government’s thrust for infrastructure building, Calaex will ease travel through the fast-growing areas of

Kawit, Imus, General Trias, Dasmariñas and Silang in Cavite, as well as Santa Rosa and Biñan in Laguna, and provide a convenient new corridor for a safe and reliable commute through Southern Tagalog.

Construction is expected to be completed by 2021, while operations and maintenance would be from 2020 to 2050.

MPT South, a subsidiary of Metro Pacific Investments Corp., tapped DM Consunji Inc. for the construction of the Laguna portion, while the Cavite segment will be undertaken by Leighton Contractors Philippines Inc.

MVP sees Voyager turnaround by 2020

D

IGITAL solutions provider Voyager Innovations Inc. should start reaping the benefits of its huge cash burns as early as next year as the company continues to build upscale on all fronts, assuming more aggressive fronts in growing its different business verticals.

Manuel V. Pangilinan, who chairs PLDT Inc., said his group expects to see a turnaround from years of losses—birth pains common for most start-ups in the region—in 2020, thanks to fresh resources from foreign partners that will allow the company to further expand its reach and volume moving forward.

“We need to build up to scale first before you could see the prospects have turnaround. The view that everybody’s taken is that let’s push it as hard as we can and then determine, say in 2020 or latest 2021, is there light at the end of the tunnel?” he said in a chance interview.

PLDT has been burning cash for

Voyager in the last few years. In 2018 alone, losses of Voyager amounted to P3 billion, more than double the P1.2billion loss it incurred the year prior.

Pangilinan said the new investors—Tencent Holdings Inc., the operator of Chinese super app WeChat, Kohlberg Kravis Roberts & Co. (KKR), International Finance Corp. and IFC Emerging Asia Fund—have given the company some form of milestones to meet. “ There are certain metrics that have been agreed upon with them—in terms of the number of subscribers, number of subscriber ads, active monthly users, the value throughput,” he said, noting the final budget numbers will be reviewed this week.

The company, he said, has been given “enough time and resources” to further develop and grow its different businesses in the next few years.

Voyager, known for its tech platforms such as PayMaya, Smart Padala, Lendr, and freenet, is now using the additional resources to

briefs Decision on A1E conversion into merchant facility seen

Manila Electric Co. (Meralco) Chairman Manuel V. Pangilinan said a decision on whether its power-generation arm will convert the shovelready $3-billion Atimonan One Energy (A1E) coal-fired power plant into a merchant facility will be finalized in the next few months.

The Luzon grid has been placed in yellow alert for three consecutive days from March 6 to 8 due to thin insufficient operating reserves brought about by the high demand for electricity as expected during summer months and the forced outage of some power plants.

“This highlights the need for more power,” Pangilinan said, explaining the delay in the approval of PSA applications and the consequent delay in the financial close and subsequently the commercial operations date of the power projects will adversely affect the utility firm’s ability to meet demand growth in its franchise and overall energy security in the Philippines. Lenie Lectura

Cloud-based Internet access offered to PHL biz

RUCKUS Networks launched its cloud-managed Enterprise Wi-fi solution in the Philippines and the rest of Asia Pacific to cater to education, retail, corporate, logistics and hospitality industries.

Called “Ruckus Cloud Wi-fi,” it enables network administrators to handle several locations via a single Web- or mobile app-based dashboard.

“As organizations in the Asia-Pacific region undergo digital transformation, reliable and high-performance Wi-fi are a must to accelerate growth and improve operational efficiencies,” said Kho Teck Meng, regional sales director, Asean, Ruckus Networks.

This solution helps lean information-technology (IT) staff at schools, retail, professional services, warehouses, and hotels easily deploy and manage a multisite network while delivering connectivity for students, guests and customers. Roderick L. Abad

P.S.E. marks Women’s Day with bell-ringing ceremony

THE Philippine Stock Exchange Inc. (PSE) marked International Women’s Day on March 8 with a bell-ringing ceremony as it participated in the global “Ring the Bell for Gender Equality” event. Over 60 stock exchanges worldwide rang the bell in support of gender equality advancement and women empowerment. The special bell-ringing ceremony was attended by PSE directors and management committee members and thePSE’s women employees.

The Ring the Bell for Gender Equality program is organized by the UN Global Compact, UN Women, Sustainable Stock Exchanges Initiative, International Finance Corp., World Federation of Exchanges and Women in ETFs. The ceremony was spearheaded by PSE Chairman Jose T. Pardo, PSE President and CEO Ramon S. Monzon, PSE Director Amor C. Iliscupidez, Global Compact Network Philippines Chairman Maria Luz Javier and Executive Director Cynthia Arce.

ramp up its efforts to promote digital financial services in the Philippines. In particular, the company is currently focused on

mutual funds

further expanding digital payments adoption among customers, enterprises and communities with PayMaya.

March 8, 2019

NAV One Year Three Year Five Year Y-T-D

per share Return* Return Stock Funds Primarily invested in Peso securities ALFM Growth Fund, Inc. -a 262.87 -8.1% 2.72% 1.98% 4.22% ATRAM Alpha Opportunity Fund, Inc. -a 1.5974 0.3% 12.29% 4.44% 10.87% ATRAM Philippine Equity Opportunity Fund, Inc. -a 4.1169 -8.96% 3.84% 0.86% 5.48% Climbs Share Capital Equity Investment Fund Corp. -a 0.936 -4.91% n.a. n.a.

5.11% First Metro Consumer Fund on MSCI Phils. IMI, Inc. -a 0.861 n.a. n.a. n.a. 4.91% First Metro Save and Learn Equity Fund,Inc. -a 5.4959 -5.78% 2.64% 1.48% 4.26% MBG Equity Investment Fund, Inc. -a 125.44 7.38% n.a. n.a.

7.71% One Wealthy Nation Fund, Inc. -a 0.8727 -8.91% -3.69% n.a. 4.84% PAMI Equity Index Fund, Inc. -a 51.7916 -6.09% 3.81% n.a. 5.26% Philam Strategic Growth Fund, Inc. -a 542.8 -5.64% 2.64% 1.51% 5.45% Philequity Dividend Yield Fund, Inc. -a 1.3081 -4.81% 4.48% 4.56% 4.31% Philequity Fund, Inc. -a 38.5657 -4.93% 5.16% 4% 5.28% Philequity MSCI Philippine Index Fund, Inc. -a,3 1.028 n.a. n.a. n.a. n.a.

Philequity PSE Index Fund Inc. -a 5.2373 -5.95% 4.71% 3.94% 5.62% Philippine Stock Index Fund Corp. -a 874.16 -5.84% 4.45% 3.83% 5.51% Soldivo Strategic Growth Fund, Inc. -a 0.9088 -4.33% 2.53% n.a. 5.53% Sun Life Prosperity Philippine Equity Fund, Inc. -a 4.304 -4.46% 4.75% 2.89% 6.04% Sun Life Prosperity Philippine Stock Index Fund, Inc. -a 1.0056 -6.24% 4.4% n.a.

5.38% United Fund, Inc. -a 3.6705 -3.03% 6.26% 3.74% 4.84% Exchange Traded Fund First Metro Phil. Equity Exchange Traded Fund, Inc. -a,c,2 116.906 -5.55% 5.58% 4.92% 5.56% Primarily invested in foreign currency securities ATRAM AsiaPlus Equity Fund, Inc. -b $1.0102 -9.71% 7.28% 1.39% 8.73% Sun Life Prosperity World Voyager Fund, Inc. -a $1.2487 -3.46% n.a. n.a. 12.99% Balanced Funds Primarily invested in Peso securities ATRAM Dynamic Allocation Fund, Inc. -a 1.7118 -5.52% 0.36% -1.01% 3.67% ATRAM Philippine Balanced Fund, Inc. -a 2.3 -5.01% 2.25% 1.09% 4.11% First Metro Save and Learn Balanced Fund Inc. -a 2.6326 -3.73% 0.25% -1.09% 3.49% Grepalife Balanced Fund Corporation -a 1.3471 -5.94% n.a. n.a. 3.28% NCM Mutual Fund of the Phils., Inc. -a 1.9068 -2.84% 2.11% 1.57% 3.46% PAMI Horizon Fund, Inc. -a 3.6369 -4.99% 0.73% 0.55% 3.05% Philam Fund, Inc. -a 16.4485 -4.06% 0.92% 0.66% 3.4% Solidaritas Fund, Inc. -a 2.1371 -3.32% 2.44% 2.52% 3.13% Sun Life of Canada Prosperity Balanced Fund, Inc. -a 3.8297 -3.1% 2.38% 1.85% 4.88% Sun Life Prosperity Achiever Fund 2028, Inc. -a,d,4 0.99 n.a. n.a. n.a. n.a.

Sun Life Prosperity Achiever Fund 2038, Inc. -a,d,4 0.9861 n.a. n.a. n.a. n.a.

Sun Life Prosperity Achiever Fund 2048, Inc. -a,d,4 0.9848 n.a. n.a. n.a. n.a.

Sun Life Prosperity Dynamic Fund, Inc. -a 0.9707 -3.49% 2.02% n.a. 5.32% Primarily invested in foreign currency securities Cocolife Dollar Fund Builder, Inc. -a $0.0357 1.33% 0.19% 1.53% 1.28% PAMI Asia Balanced Fund, Inc. -a $0.9833 -7.77% 4.26% -0.28% 5.03% Sun Life Prosperity Dollar Advantage Fund, Inc. -a $3.6201 -2.4% 6.26% 2.13% 9.42% Sun Life Prosperity Dollar Wellspring Fund, Inc. -a $1.0703 -4.47% n.a. n.a. 5.97% Bond Funds Primarily invested in Peso securities ALFM Peso Bond Fund, Inc. -a 346.01 2.61% 2.05% 2.08% 0.77% ATRAM Corporate Bond Fund, Inc. -a,1 1.8653 -0.19% -0.34% -0.34% 0.33% Cocolife Fixed Income Fund, Inc. -a 2.9965 5.35% 5.26% 5.26% 0.87% Ekklesia Mutual Fund Inc. -a 2.1512 2.28% 1.63% 1.8% 0.97% First Metro Save and Learn Fixed Income Fund,Inc. -a 2.2344 1.02% 0.37% 0.89% 1.14% Grepalife Fixed Income Fund Corp. -a P 1.5963 -0.67% -0.36% 0.39% 2.04% Philam Bond Fund, Inc. -a 3.9448 -0.75% -0.79% 0.44% 0.64% Philequity Peso Bond Fund, Inc. -a 3.5917 2.86% 1.32% 1.2% 2.12% Soldivo Bond Fund, Inc. -a 0.9109 0.32% -0.56% n.a. 2.05% Sun Life of Canada Prosperity Bond Fund, Inc. -a 2.8436 2.28% 1.53% 1.57% 2.81% Sun Life Prosperity GS Fund, Inc. -a 1.5796 1.99% 1.14% 1.11% 2.58% Primarily invested in foreign currency securities ALFM Dollar Bond Fund, Inc. -a $451.95 2.22% 2.05% 2.93% 0.82% ALFM Euro Bond Fund, Inc. -a Є214.88 1.12% 1.35% 1.52% 1.05% ATRAM Total Return Dollar Bond Fund, Inc. -b $1.1549 3.32% 1.5% 2.12% 2.58% First Metro Save and Learn Dollar Bond Fund, Inc. -a $0.025 0.81% 0.68% n.a. 0.81% Grepalife Dollar Bond Fund Corp. -a $1.6978 -1.7% -1.11% 0.82% 0.45% MAA Privilege Dollar Fixed Income Fund, Inc. N.S. N.S. N.S. N.S. N.S. MAA Privilege Euro Fixed Income Fund, Inc. ЄN.S. N.S. N.S. N.S. N.S. PAMI Global Bond Fund, Inc -a $1.051 0.38% -0.99% -2.43% 1.29% Philam Dollar Bond Fund, Inc. -a $2.2212 2.19% 0.53% 2.64% 2.3% Philequity Dollar Income Fund Inc. -a $0.0576278 1.41% 1.02% 1.71% 1.14% Sun Life Prosperity Dollar Abundance Fund, Inc. -a $2.9314 -0.38% -0.02% 1.9% 2.06% Money Market Funds Primarily invested in Peso securities ALFM Money Market Fund, Inc. -a 121.98 3.41% 2.11% 1.73% 0.94% First Metro Save and Learn Money Market Fund, Inc. -a,5 1.0039 n.a. n.a. n.a. n.a.

Philam Managed Income Fund, Inc. -a 1.1893 2.41% 0.92% 0.65% 0.63% Sun Life Prosperity Money Market Fund, Inc. -a 1.2278 2.99% 2.4% 1.75% 0.72% Primarily invested in foreign currency securities Sun Life Prosperity Dollar Starter Fund, Inc. -a $1.0206 2.02% n.a. n.a. 0.46%

a - NAVPS as of the previous banking day. b - NAVPS as of two banking days ago. c - Listed in the PSE. d - in Net Asset Value per Unit (NAVPU).

1 - Adjusted due to cash dividend issuance last January 29, 2018.

2 - Adjusted due to stock dividend issuance last June 5, 2018.

3 - Launch date is January 3, 2019.

4 - Launch date is January 28, 2019. 5 - Launch date is February 1, 2019.

Banking&Finance BusinessMirror

www.businessmirror.com.ph

Monday, March 11, 2019

B3

Govt borrowings last year inched up 5.08%

By Rea Cu

T

@ReaCuBM

HE national government’s gross borrowings last year nearly hit the P1-trillion level as it inched up by 5.08 percent to P947.551 billion. In 2017, when the government firmed up its “Build, Build, Build” (BBB) program, gross borrowings hit P901.672 billion. Last year’s gross borrowings was lower than the P986 billion programmed for 2018.

Domestic borrowings outpaced foreign borrowings by P341.397 billion, data from the Bureau of the Treasury (BTr) showed. Domestic gross borrowings amounted to P644.474 billion, while borrowings from foreign lenders for

the year amounted to P303.077 billion.

Under domestic borrowings, Treasur y bi l ls accounted for P179.937 billion, retail Treasury bonds with P121.765 billion, fixed-rate Treasury bonds with

P292.772 billion and P50 billion from the Central Bank Board of Liquidators (CBBOL).

For gross borrowings from foreign entities, project loans accounted for P33.957 billion, program loans with P80.422 billion, panda bonds with P11.976 b billion, samurai bonds with P74.040 billion and dollar bonds at P102.682 billion.

For December alone, the gover n ment ’s g ross bor row i ngs amounted to P132.291 billion, which is 44.26 percent lower than the P237.357 billion recorded in the same month in 2017.

Of the total, domestic borrowings in December last year hit P118.676 billion, 49.12-percent lower from the P233.251 billion the BTr recorded in the previous year. December external borrowings amounted to P13.615 billion, which showed a growth of 231.58 percent from P4.106 billion in December 2017.

Dominguez assurance

FINANCE Secretary Carlos G.

Dominguez III said that when most of the financing for the BBB program have been accessed in 2022, the country’s debt to China will constitute around 4.5 percent of the total debt, and project debt to Japan will be around 9.5 percent of total debt.

“There is no danger of us being drowned by Chinese debt.

We borrow with great prudence, aware that it is the taxpayer who ultimately pays for the debt. We always keep in mind that the money we borrow comes from the taxes dutifully paid by the people of the countries that have continued to generously support us,” Dominguez said at the University of the Philippines Women Lawyers’ Circle Business Conference held last week at a venue in Taguig City.

He explained that the government adopted a hybrid public-private partnership model, wherein they use official development assistance (ODA) instead of waiting for the private sector to raise financing commercially for initial projects.

“The hybrid model enables us to use cheaper money and move more quickly to get the projects started. While we rely on ODA inflows to get the infrastructure program going, we take great care to keep debt service low,” Dominguez said. “It is not true that the infrastructure program is mainly driven by financing from China.

As of 2018, our total project debt exposure to China is only 0.66 percent of our total debt exposure.

Comparatively, our total project debt to Japan is 9 percent of our total debt exposure.”

Debt-to-GDP ratio

THE country’s debt-to-GDP ratio settled at 41.9 percent in 2018 from 68.5 percent in 2005, which shows its downward trajectory, added the chief of the Department of Finance (DOF).

“We continue to prudently manage our obligations, and we are confident that the rapid expansion of the domestic economy will enable us to decrease our debt ratio further to 38.6 percent by 2022,” he said.

Dominguez explained that the economy’s growth of 6.5 percent during the first 10 quarters of the Duterte administration “points to a clear growth momentum,” and that the government “keeps its 7-percent growth target for this year.”

“On the part of the economy, I assure you that we are looking at a very good year after this one,” he added. “We managed to sustain the higher-than-6-percent growth last year because of strong domestic demand and robust investment and capital formation rates.”

T he DOF considers publ ic spending on the government’s infrastructure-modernization program as a growth driver, with actual disbursements during the first ten quarters of the Duterte administration reaching P1.64 trillion, which is equivalent to 4 percent of gross domestic product (GDP).

Dominguez said the government has “already exceeded the programmed infrastructure and other capital outlays spending” for the said period.

BSP gives banks leeway Bond-market inflation skeptics see little to fear in coming data to comply with new T rules on cash sufficiency

T

HE Bangko Sentral ng Pilipinas (BSP) is giving local banks more leeway to comply with new regulations on cash sufficiency standards.

In a statement over the weekend, the Central Bank said they are extending the observation period for the Basel III Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) compliance of subsidiary banks/ quasi-banks (QBs) of universal and commercial banks (U/KBs) up to end-December.

This moves the implementation date of the new guidelines to January 2020, a year later from the previous plan of January this year.

The LCR and the NSFR are both the part of the local regulator’s efforts to keep up with international standards under the umbrella of the Basel III regime.

The NSFR is a measure of the ability of a bank to fund its liquidity needs over one year. It ensures cash sufficiency for a year.

The LCR covers a shorter period of over 30 days in which a bank shall hold sufficient “high-quality liquid assets” that can be easily

converted into cash to meet their liquidity requirements.

The BSP said the extension will give the banks “sufficient time to build up their liquidity position” given the combined impact of these liquidity measures.

The BSP said the Monetary Board also approved enhancements to the LCR and Minimum Liquidity Ratio (MLR) guidelines in response to feedback received as a result of the BSP’s continuing dialogue with the banking industry.

Under the new policy, cash inflows and outflows from each derivatives contract shall now be recognized on a net basis consistent with valuation methodologies for derivatives contracts and the Basel III LCR framework.

The method for computing the MLR was also revised.

“The 20-percent MLR aims to ensure that stand-alone thrift, rural and cooperative banks and QBs set aside a liquidity buffer that will enable them to withstand liquidity stress events,” the BSP said. “It relates a bank/QB’s eligible liquid assets to its qualifying liabilities.” Bianca Cuaresma

Dovish tilt spreads to Southeast Asia as funds hoover up regional bonds

T

HE chill winds of slowing global growth that convinced the Federal Reserve to stop raising interest rates are making themselves felt in Southeast Asia—nowhere more so than in the bond market.

Debt is rallying across the region as a worsening economic outlook prompts dovish noises from central banks, suggesting the tightening cycle is over. Indonesia and the Philippines will both hold debt sales this week that are expected to draw bumper demand if recent offerings are anything to go by. Bonds are also being boosted by slowing inflation, particularly in Malaysia, where the economy swung into deflation in January. “The surprise turnaround in monetary policy stance is certainly refocusing interest back into rates markets,” said Susan Buckley, managing director of global liquid strategies in Brisbane at QIC Ltd., which oversees the equivalent of $60 billion.

“There’s a lot more client interest in bonds, and how they can better construct portfolios that capture the shift in policy.”

Indonesia

THE prospect of any further Bank Indonesia tightening is diminishing

after the central bank dropped some of its hawkish comments at its February 21 rate meeting. The strength in the rupiah—which climbed to an eight-month high in February—is also reducing the need for further rate increases after the central bank hiked six times last year. Indonesia is scheduled to sell bonds with maturities ranging from five to 30 years on Tuesday after the previous auction on February 26 drew a record $6.7 billion of bids. The extra yield on the nation’s two-year debt over the central bank’s policy rate shrank to a lowest on record this month, according to data compiled by Bloomberg starting in 2016.

Philippines

INFLATION in the Philippines slowed to 3.8 percent last month from a peak of 6.7 percent in September, pushing 10-year bond yields to the lowest since June. There’s room for easing if inflation keeps slowing, newly appointed Central Bank Governor Benjamin E. Diokno said at his first media briefing on Friday. The Philippines will sell P20 billion ($383 million) of 10-year bonds on Tuesday. The most recent offering on January 8 drew the secondhighest amount of competitive bids on record. Bloomberg News

HE fastest US wage growth in a decade has sharpened bond investors’ focus on the potential for inflation to stage a comeback and spur the Federal Reserve to action. But traders aren’t holding their breath.

This week’s data are a bonanza for inflation enthusiasts, starting with an update on consumer prices on Tuesday, followed by producer prices and inflation expectations. Some investors have added to wagers that price pressures will strengthen, with the Fed signaling it’s paused and wants to see higher inflation to justify tighter policy. Chairman Jerome Powell reiterated the Fed’s mantra on being patient in a speech last Friday night.

Climbing wages may encourage further inflation bets: Friday’s payrolls report disappointed in terms of job gains, but it also showed the fastest increase in average hourly earnings since 2009.

Ho w e v e r, St e phe n B a r to lini at T. Rowe Price doesn’t see t h at boost i ng con su mer prices, as slowing growth may d i s cou r a ge comp a n ie s f rom raising prices to defray higher labor costs.

“At this point in the cycle, a pickup in inflation will generally lead to corporate margin compression, which is potentially more supportive of maintaining a long-duration stance,” Bartolini, lead portfolio manager for US core bond strategies, said after the jobs figures.

He sees annual CPI remaining around this report’s consensus of 1.6 percent—the slowest since 2016—for a while.

Benchmark 10-year yields enter the week at 2.63 percent, close

TRADING on the floor of the NYSE following FOMC rate decision

to the lowest level in two months.

In the interest-rate options market, traders have been ramping up positions that target lower yields in five-year and 10-year notes.

Early dismissal

AS for the policy outlook, traders have all but dismissed the prospect of a Fed hike this year, and are starting to factor in the chance of easing. Bartolini shares the market’s view that the central bank ’s next move will be a cut, and has research to

New Central Bank chief seen to cut RRR to 16%

S

OCIOECONOMIC Planning Secretary Ernesto M. Pernia believes the new chief of the Bangko Sentral ng Pilipinas (BSP) will further cut the reserve requirement ratio (RRR) to ensure that monetary policy will abet the other growth-focused motivators of the economy.

From the current 18 percent, Pernia said BSP Governor Benjamin E. Diokno will likely cut the RRR to 16 percent.

“His number one objective is to accelerate economic growth. That is why his first action, I think, will be to not directly lower interest rate—what we call policy interest rate—but lower reserve requirements of banks,” the government’s chief economist said in an radio interview on Friday.

“I think he wants to lower it further—maybe to 16 percent so that there will be available funds in the economic system and consumption spending,” Pernia said. “So it’s essentially

BLOOMBERG NEWS

back his case.

“History would tell us that a Fed pause leads to rate cuts,” he said.

“We really could only identify one time since the ’70s that the Fed paused and resumed hiking, and that was in 2015-16.”

By contrast, rates analysts at TD Securities are still looking for a hike this year, possibly in September.

For TD’s Priya Misra, head of global rates strategy, it’s too soon to call a turn in the labor market. The weaker jobs data

the same as lowering interest rates.”

That Friday, Diokno signaled a potential rate cut if inflation continues to decelerate. However, he reiterated that monetary authorities also need to take into consideration the timing for the rate cut.

The RRR is one of the tools used by the Central Bank tools to manage liquidity. It is the portion of depositors’ balances that banks are required to park with the BSP as reserves. Reserve requirements usually affect earnings potential of the account since these cannot be used for investment.

From 20 percent, the BSP reduced the RRR twice last year to 18 percent, infusing additional liquidity to the banking system.

Inflation has slowed to 3.8 percent in February, which echoes the February 2018 level. February inflation fell within the government’s target of 2 percent to 4 percent. Bernadette D. Nicolas

were likely a result of bad weather impacting the construction sector, she said.

Yet, confidence in US growth could falter if Monday’s retail sales data confirm the weakness in December, when they fell the most in nine years.

“The last retail sales report was horrendous, one that really spooked the market,” Misra said, and another low reading could reinforce concern that wages aren’t growing enough to buoy consumption. Bloomberg News

Green Monday BusinessMirror

B4 Monday, March 11, 2019

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

Industrial jobs in danger Church eyes pulling out funds when climate is to be saved from banks linked to dirty energy S

B

By Samuel P. Medenilla @sam_medenilla

eyond its homilies and demonstrations, the Church continues its relentlessness campaign against coal-power plants, this time by going after the investors of the controversial energy facilities.

During a press conference on Thursday, Caritas Philippines, the Diocese of San Carlos and the Global Catholic Climate Movement (GCCM) announced that the institutions of the Church are mulling over pulling out their fund deposits in banks, investing in coal plants.

This will serve as the Church’s last resort in case the banks refuse to “divest” their investments from firms behind coal-power plant operations to more sustainable sources of energy.

The three proponents of the recently launched Ma linis at Murang Kuryente for Filipinos (MMK) campaign said this is their response to the appeal of Pope Francis in his encyclical Laudato Si, which calls on the faithful to shun dirty, destructive and costly energy projects, such as coal plants.

The banks are Banco de OroUnibank with P1.3 billon; Bank of the Philippine Islands with P1.2 billion; and China Banking Corp. with P1.1 billion.

“We, therefore, call on these banks to consider the environmental, social and economic impacts brought about by their continued coal support, and begin to move away from giving financial support to such projects,” Gariguez said.

Joint action

The position, Alminaza said, has already been approved in principle by the majority of the members of the Catholic Bishops’ Conference of the Philippines (CBCP) in their last plenary meeting.

He said they hope the CBCP will be able to come out with an official position paper on the matter on their next plenar y meeting on July.

“Before we a lso m ade t he same move for gambling and mining, but this will be the first time we will come out with a explicit message on the issue,” A lminaza said.

GCCM-Pilipinas National Coordinator John Din said a similar action plan is currently being discussed among the religious orders in the country.

“We have 85 to 86 dioceses, but we have more religious congregations than that. Imagine if just one congregation has P1

Our first step is we will make our intention clear to them and appeal to them to divest...our next move will depend on their reaction.”—Alminaza

million as an investment, you can imagine the power and pressure to the banks to divest from bank investments,” Din said.

Government role

Gerry Arances, one of the civic leaders pushing for coal-free Philippines, said there are currently 28 coal-power plants operating in the country, and another 30, which are now in the pipeline.

Since they started their anticoal campaign in 2012, Arances said they were already able to “freeze” the operations of coal plants with energy capacity of 6 gigawatts.

But he noted more must still be done, particularly from the government side, to completely stop the operation of coal-power plants, since it is a threat to public health and the environment.

He explained this was the reason they are opposing Executive Order 30 of President Duterte and the pending Murang Kuryente Bill in the Senate, which, he said, promotes inefficient sources of energ y like coal plants.

“As long as the government supports it and the policy is still in place, then that will serve as a market signal for investors to ahead with it,” Arances said.

Ongoing talks

Bishop Gerardo A. Alminaza of San Carlos, Negros Occidental, said they would initiate talks w it h t he ba n k s, wh ic h h ave Church funds.

“Our first step is we will make our intention clear to them and appeal to them to divest...our next move will depend on their reaction,” Alminaza told reporters in an interview.

In his diocese, he noted he a lready sent feelers w ith officers of the banks to discuss the issue.

Citing the report of Global Coal Exit List, Caritas Philippines Executive Sec. Edwin Gariguez disclosed that coal developers have loans and underwritings with three banks.

Bishop Gerardo Alminaza of San Carlos (center) leads various civil-society organizations in launching an electoral campaign for “clean and affordable electricity” in Manila on March 7. CBCPNews

Lawmakers: High costs slowing action on contaminant in water

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ASHINGTON—Cleaning up and protecting US drinking water from a class of toxic chemicals used in many household items could cost in the tens of billions of dollars nationally, including $2 billion for the Department of Defense alone, witnesses testified last week before a House panel urging the federal government to move more quickly on the cleanup.

Rep. Harley Rouda, the California Democrat chairing the House Oversight and Reform environment subcommittee, told reporters after the hearing “it’s clear” the high costs were slowing any federal efforts to regulate and clean up the toxic chemicals, which are found in a range of goods, including nonstick pans, stain-resistant clothing, dental floss and food containers. They also are in firefighting foam used by the military to battle jet-fuel fires.

The compounds, called perfluoroalkyl and polyfluoroalkyl substances (PFAS) have been used for decades.

Water sampling shows the contaminant—also called the “forever chemicals” because they will take thousands of years to break dow n—has seeped into many public water systems in the United States and globally, including

around military bases and industries.

Env i ron ment a l P rotec t ion Agency (EPA) chief Andrew Wheeler told reporters that the agency was moving toward establishing federal limits for some kinds of the contaminant in drinking water.

States and local communities say they need a mandatory EPA limit to start full-scale cleanup and protections against the compounds.

“There’s no indication of when the process might actually be complete,” Rouda told EPA and Defense Department officials testifying before the panel. In the meantime, military officials “are passing the buck to the EPA” rather than conducting a national cleanup of bases that have high levels of PFAS contamination, he said.

Democratic Rep. Dan Kildee of Michigan said veterans and families are increasingly fearful of PFAS contamination around bases.

“The Defense Department, in particular, has so far failed to act with the required urgency to address this growing problem,” he said.

The Trump administration has been under increasing pressure to start regulating the toxic class of compounds since last year, when a draft federal toxicology report found some kinds of the widely

used chemicals were harmful at levels much lower than the federal government’s current advisory level. The federal Agency for Toxic Substances and Disease Registry cited studies linking PFAS contamination to liver problems, low birth weight, some cancers and other health issues.

Rep. Brian Fitzpatrick, a Pennsylvania Republican and cochairman of a congressional PFAS task force, called the forever compound “one of the most widespread public health crises” that the US faces.

But Fit z pat r ic k c aut ioned against setting any PFAS limits too low, saying it would cost tens of billions of dollars to bring water systems into compliance.

David Ross, assistant administrator of the EPA’s water office, defended the agency’s decision to continue researching the compounds ahead of any formal regulatory moves.

“The science to fully understand these chemicals...is not yet as robust as it needs to be,” Ross said.

He said resolving PFAS contamination was a national priority for the agency.

Communities and states say the EPA has done little concrete to start tackling the problem.

In a tweet, Mayor Rob Allen of Hoosick Falls, New York, where

industrial releases are blamed for dangerously high PFAS levels in water, evoked the compound’s nickname in saying “it will take ‘forever’ for EPA to act on its responsibility to regulate them.”

The Defense Department has identified 401 military sites where PFAS was used, and found 24 US military drinking-water systems around the world with PFAS levels above the current US advisory level, Maureen Sullivan, the deputy assistant secretary of defense, told lawmakers.

US military officials at those bases were providing bottled water or other alternate water supplies, Sullivan said.

Cleaning up bases contaminated by two of the best-studied versions of PFAS would cost about $2 billion, she said.

Kildee, whose state of Michigan has been one of the most active in testing for PFAS and tackling contamination, said the Pentagon had yet to request the money for that cleanup.

Some states and local communities hosting military bases accuse the military of using the lack of any mandatory federal limit for PFAS in drinking water as a reason to deny Pentagon responsibility for cleanup. AP

TOCKHOLM—The trade unions’ solution for a greener world is new jobs with good working conditions. The critics argue that there’s not enough time.

“We can either protect industrial jobs in the global north or save the climate,” said political scientist Tadzio Müller.

Politicians, businesses and unions all agree: There are no jobs on a dead planet. But the road to fewer emissions is full of opinions.

While the amount of carbon dioxide (CO2) in the atmosphere is expected to reach record levels this year, the work toward a “just transition” continues. The aim is to secure workers’ interests when countries and employers convert to more climate-friendly ways of doing business.

“It is extremely urgent, and I’m worried. But if employers, governments and big financial interests had been more interested in the carbonization two decades ago, we would have been in a great position,” said Samantha Smith, the director of the Just Transition Centre, created three years ago by the International Trade Union Confederation (ITUC). The confederation gathers unions, organizations, businesses and countries in a social dialogue.

The term “just transition” has origins from the 1980s but it took until 2013 for the United Nations’ agency International Labor Organization to put its foot down and create guidelines for “a just transition toward environmentally sustainable economies and societies for all.”

The Paris agreement from 2015 also includes mentions of just transition.

Through the Paris agreement, governments commit to making sure that workers continue to have fair conditions during the climate adaption.

The UN climate change Conference of Parties 24 took place in December 2018 in Katowice, Poland, and just transition was high on the agenda.

More than 50 states, including Sweden, signed the “The Solidarity and Just Transition Silesia Declaration,” which states that the countries must consider workers’ perspectives while shifting to climate-friendly policies.

In Sweden, issues on this matter are being discussed regularly at the Swedish Trade Union Confederation, commonly known as LO, and the Swedish International Development Cooperation Agency, or Sida, among others.

Sida recently donated €1.5 million to the organization Bankwatch, to support the transition toward a coal-free Eastern Europe.

Samantha Smith pointed out that every sector in every country will be affected in order to reach the 1.5-degree global-warming target.

“We wanted to start with rich countries because they have the wealth and capacity. In some poor countries you have a number of issues going on at the same time, one is recognizing basic labor rights, which is also human rights,” Smith said.

Tadzio Müller, political scientist and senior advisor on climate justice for the leftist foundation Rosa Luxembourg, agreed. He, on the other hand, is even more drastic.

“If Sweden, Germany and Great Britain want to do their bit to save the climate they have to shut down old industrial infrastructure within the next 10 years to 15 years so that the rest of the world can still emit some carbon emissions.”

Müller is critical of the trade union movement. The concept of “just transition” was first used by union activists in the US in the 1980s.

“We have to be honest that it was, at least in part, the same industrial trade unions that called for a just transition that were fighting against ambitious climate politics and policies to save jobs,” he said. He mentions Germany’s mining unions as an example.

Müller pointed out that he is in no way interested in limiting workers’ interests.

“I am absolutely for giving workers every social protection that we can manage. I would even argue that a universal guaranteed income would be a great way to transition in heavy industrial regions, like western Germany or the north of France. I don’t oppose just transition,

but the fact that the function of just transition has been to slow down ambitious climate action.”

Smith at the Just Transition Centre said to her critics: “What is your alternative? Especially in a democracy, like for example Germany. How are you going to shut down coal mines if the local government and all the people working in the mines don’t agree to it?”

She pointed out that it’s better to do something than nothing.

“And it’s better to do something that will support social justice and strengthen the labor movement and democracy to get down emissions.”

Just transition countries and facts CANADA The government has decided to phase out coal as a source of energy by 2030 while making investments in natural gas instead. This is a part of Canada’s “PanCanadian Framework on Clean Growth and Climate Change.

Catherine McKenna, minister of Environment and Climate Change, announced that a task force has been created, with representatives from unions, councils and businesses working together to make the transition from coal to natural gas as fair as possible for the workers in the sector.

The president of the Canadian Labour Congress has been put in charge of the project.

SPAIN In 2016, the government launched a plan worth almost €2 billion to aid the closure of 26 coal mines. The mines were closed by the end of 2018, and approximately 2,000 workers were affected. The transition plan included early retirement for workers over 48 years of age and education in green industries for the rest.

The Spanish trade unions celebrated the agreement, but one group of 800 workers, employed by subcontractors of the mining industry, were not included in the transition. They formed the network “Plataforma de Santa Bárbara,” and gathered to protest that they had been abandoned by the unions and the political parties.

KENYA The transport system in Kenya’s capital Nairobi is overly chaotic and spews out huge amounts of pollution each year. To tackle this, the government of Kenya has begun the transition toward a new system called “Bus Rapid Transit,” with fewer but larger buses.

This means fewer jobs. So now the Kenyan unions are working together with the International Transport Workers’ Federation (ITF), to ensure a fair transition that provides new “green” jobs for the workers.

USA A massive transition is taking place in the state of New York, with €1.5-billion projects that include investments in renewable energy.

Gov. Andrew Cuomo started the initiative “The Clean Climate Careers initiative” in 2017, with the goal of creating 40,000 new climate-friendly jobs by 2020.

The jobs will be in major renewableenergy projects, including wind and solar. Big money is being invested to redirect personnel to create a more climatefriendly work force.

Biggest carbon emitters The 25 biggest carbon emitters in the world produced a fifth of the global carbon emissions, according to a review by Swedish newspaper Dagens Industry.

The companies are: Coal India, PJSC Gazprom, Exxon Mobil Corp., Cummins Inc., Thyssenkrupp AG, Rosneft OAO, Royal Dutch Shell, China Petroleum Chemical Corp., China Shenhua Energy, Rio Tinto, Petrochina Co. Ltd., BHP Billiton, Petróleo Brasileiro SA, Korea Electric Power Corp., British Petroleum, Total, Valero Energy Corp., Chevron Corp., Toyota Motor Corp., Wistron Corp., United Technologies Corp., Peabody Energy Corp., YTL Corp., Phillips 66 and Volkswagen AG.

Arbetet Global/IPS

Biodiversity Monday BusinessMirror

Asean Champions of Biodiversity Media Category 2014

Monday, March 11, 2019

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

B5

Threatened Philippine wildlife

‘Unique species in the brink of extinction’

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By Jonathan L. Mayuga @jonlmayuga

n March 3 Philippine authorities intercepted at the Ninoy Aquino International Airport more than 1,500 live turtle species being smuggled into the country by an unidentified passenger from Hong Kong.

Incidentally, the confiscation of the assorted turtle species, the cost of which range from P8,000 to P25,000 each, came at a time when the Philippines is celebrating World Wildlife Day 2019, which is aligned with Goal 14, or Life Below Water, of the Sustainable Development Goals (SDG) of the United Nations.

A ir port authorities turned over the contraband to wildlife law enforcers of the Biodiversity Management Bureau (BMB) of the Department of Environment and Natural Resources (DENR) after the suspect flee.

Both a buyer and seller of illegally traded wildlife, particularly for the lucrative pet trade, the Philippines has been identified as a transshipment point of illegally traded wildlife products and by-products used for health and wellness, medicine or “mystical cure” and amulets, furniture and furniture displays, accessories and jewelry.

I l lega l w i ld l i fe t rade i s ju st one of t he m ajor d r ivers of biod iversit y loss.

Biodiversity hot spot

The country hosts a total of 52,177 species, more than half of which are found nowhere else in the world.

“On a per unit area basis, the Philippines probably harbors more diversity of life than any other country on the planet,” the DENRBMB web site said.

While the Philippines is rich in biodiversity, it is also considered a biodiversity hot spot because of the rapid rate of biodiversity loss because of numerous threats.

Many species—inc lud ing iconic animals and birds—are threatened with extinction.

A total of 1,437 terrestrial mammals, birds, reptiles and amphibians are listed as threatened under DENR Administrative Order (DAO) 2004-15 and the Convention on International Trade in Endangered Species of Wild Fauna and Flora as of 2015. Of these, 711 are endemic species, or species that can be found only in the Philippines.

Under the list, 28 species of mammals, birds and reptiles were classified as critically endangered; 116 species, endangered; 85 species, vulnerable; and 11 species are listed as other threatened species.

Among the critically endangered is the tamaraw, Philippine spotted deer, Visayan spotted deer, dugong, Visayan warty pig, Philippine eagle, Peregrine falcon, Sulu hornbill, Philippine cockatoo, the Philippine crocodile and saltwater crocodile.

There are also 984 species of wild flora on the threatened list, 179 of which are critically endangered; 254 are endangered; 406 are vulnerable; 145 other threatened species.

Driver of biodiversity loss

Citing Philippine Biodiversity Strategy and Action Plan 20152028, Director Crisanta Marlene Rodriguez of the DENR-BMB said

five major threats that lead to biodiversity loss in the Philippines are overexploitation, climate change, pollution, invasive alien species and habitat loss.

Rodriguez said in an interview through Messenger that overexploitation is linked to over-harvesting, illegal and overfishing and illegal wildlife trad.

These activities, she said, result in disasters—like drought, due to timber har vesting, which a lso leads to landslides; coral-reef siltation; groundwater depletion; and, eventua l ly, i nc re a s e d c a r b on e m i s s ion s because our carbon sinks are destroyed or devastated.

On the other hand, habitat loss is linked to deforestation, mining, marine ecosystem degradation, which also leads to flood, drought, landslide and coral-reef siltation.

“Climate change causes sealevel rise, warmer seas and stronger storms [that] lead to species decline, fisheries decline, coastal flooding, coral-reef degradation, and infrastructure damage. Intensive agrochemical use can be linked to pollution, which also causes eutrophication, siltation, water pol lution and disease/ health risks. Invasive alien species cause decline/extinction of native species which lead to pest infestation and disease outbreak among species,” she said.

Habitat loss, pollution other threats

For env ironment a l g roup K al i k a s a n-People’s Net work for t he Env i ron ment ( K a l i k a s a nPN E), h abit at loss i s t he si ng le big gest c au se of wholesa le biod iversit y loss.

“Thousands of hectares of terrestrial and aquatic ecosystems— and the species they sustain—are lost to land grabs by large-scale mines, dams, reclamation and other extractive and destructive projects,” Leon Dulce, national coordinator of KalikasanPNE, told the BusinessMirror through Messenger.

According to Dulce, the pollution of ecosystems also renders habitats unlivable and causes harm to the health of various organisms.

“Some pol lut a nts a re bio magnified along the food chain, eventually accumulating in larger species, such as humans,” he said.

On the other hand, he explained that illegal wildlife trade is a targeted threat to species, whereby wildlife are hunted for various purposes, such as alternative medicine, exotic meat and valuables.

“The large-scale demand for their by-products drives the largescale poaching of these species,” he said.

On the other hand, he added that climate change is a slow onset risk that radically disrupts the living conditions of flora and fauna because of increased temperature, sea-level rise, melting ice caps and extreme weather events, among others.

“Entire bioregions can be rendered inhospitable to their in-

An adult Philippine eagle and its young. Critically endangered, around 400 pairs of the endemic species are left in the wild. Philippine Eagle Foundation

On a per unit area basis, the Philippines probably harbors more diversity of life than any other country on the planet.”—DENR-BMB habitants over the next century,” he said.

Dulce added that the attacks against environmental defenders is often overlooked, but are intrinsic in habitat and biodiversity loss because these advocates are the first and last line of defense for entire landscapes.

“The killings, displacement and other human-rights violations the [environmental] defenders face not only serve to paralyze the defense of ecosystems, but also contribute to the loss of ecologically sensitive culture, such as the indigenous people’s knowledge and practices in the process,” he said.

Problems, solutions

According to Dulce, the Duterte administration has failed to arrest habitat loss as its various pronouncements against extractive and destructive projects fall short in action.

He said the large-scale mines have increased in number over the past three years, while up to 10 large dams are in the pipeline.

“More reclamation projects are being approved in areas supposedly for protection or rehabilitation.

Reforestation efforts, oftentimes using bad practices, such as planting exotic species and promoting timber plantations, cannot keep up with the deforestation rate of old-growth forests,” he said.

According to Du lce, the Duterte administration should suppor t proposed laws, such as the People’s Mining Bill, the House resolution declaring Manila Bay as a reclamation-free zone and other policies that will prohibit extractive and destructive projects, to conserve and protect ecosystems and the wildlife that thrives therein.

He added that a law safeguarding the rights of environmental defenders, “the natural nurturers of our environment,” should be enacted and implemented.

What else can the government do? He said: “Our Environmental Impact Statement system must be reformed to democratize the process. More protected areas should be designated and subsidized.

“Communities must be seen as central to the management of these areas, and not treated as problems. The national economy must be planned in such a way that the utilization of natural resources is judiciously based on what communities and our national economy need, not on corporate greed.”

Government, policy gaps

A A Yaptinchay of the Marine Wildlife Watch of the Philippines, for his part, said the major threats to marine biodiversity include direct exploitation, incidental catch in fisher ies, encroachment and degradation of habitats, marine debris and plastic pollution, poor ocean literacy of the public and decisionmakers, and climate change.

Sadly, he said government efforts proved inadequate, adding that it needs to muster the support of other sectors to do the job.

“No one person or organization can do enough. The best will always be done through collaborations and partnerships with multiple agencies and individuals. There may be enough laws, but enforcement and implementation are always problematic. There will always be challenges in terms of funds, manpower, and support and many other things.

We just have to do our best with limited resources,” he said.

To protect and conserve the country’s rich marine biodiversity, Yaptinchay said in terms of laws and policy, the gaps need to be addressed.

“Where there are protection laws existing, these should be enforced. Conservation programs need to be implemented fully. But the short-term solution is never enough. We need to be thinking long-term by addressing the root causes of biodiversity loss, such as poverty, corruption and lack of awareness,” he said.

Global problem

The rapid rate of biodiversity loss in the Philippines reflects a global problem. Even its neighbors in Southeast Asia are facing the same problems, said Executive Director Theresa Mundita

S. Lim of the Asean Centre for Biodiversity (ACB).

ACB’s response to the rapid rate of biodiversity loss hinges on activities under the five-year Biodiversity Conservation and Management of Protected Areas in Asean (BCAMP) project 2017-2021.

BCAMP activities include improving the effectiveness of biodiversity conservation and protected areas management in Asean sitelevel interventions that aim to improve biodiversity conservation and that effective protected area management will be implemented.

Under the project, activities that support the implementation of the Asean Heritage Parks (AHP) Programme will also be conducted to boost conservation and protection of wildlife and their habitats.

T he site-level activ ities in the Philippines include those in Mounts Iglit- Baco and Pasonanca national parks.

“ACB recognizes that protected areas and AHPs, if properly and effectively managed, are important tools to protect and conserve endangered species,” Lim, a former DENR-BMB Director told the BusinessMirror via e-mail last week.

“The rationale for identifying the protected areas in the first place is that the areas rich in biodiversity, meaning they support a variety of species and of ecosystems that support the diversity of unique and rare species,” she said.

“If we protect our protected areas, we are protecting the species that inhabit them. And protection can be in the form of several measures. [These include] effective enforcement [and for ACB, it could facilitate transboundary enforcement work, as well], sustainable biodiversity-based and community-based livelihoods, education and communication of the benefits of protection,” she added.

‘Uniquely at risk’

The Philippines, being an archipelago, has its advantages and disadvantages when it comes to protecting and conser ving wildlife and their unique island ecosystems.

According to Lim, island ecosystems are ideally “closed systems,” often gifted with unique species (island endemic) interacting among themselves and can be easy demonstration sites for ridge-to-reef approach.

However, they are also the ecosystems that are most vulnerable to species extinctions.

“Because the species are found only on the island and nowhere else, their limited range makes them easily become endangered,” she explained.

Invasive species can also easily upset the ecological balance on island ecosystems.

“Of course, we have heard that the islands are also the most v ulnerable to climate-change impacts, such as sea-level rise,” she noted.

Wildlife conservation, protection

To address the problem of biodiversity loss, Rodriguez said the government, through the DENRBMB, continues to implement various programs.

Wildlife protection and cons e r v at ion pro g r a m s i nc lud e strengthening of law enforcement, designation and management of critical habitats, conservation efforts for critically endangered species, and prevention, control and/or eradication of invasive alien species.

Mar ine and coasta l biod iversity conservation program, on the other hand, includes the Coastal and Marine Ecosystems Management Program; establishment of marine protected areas, coastal and marine rehabilitation and standardizing approach in monitoring (Green Fins); and monitoring and updating coastal and marine data resources under the Autonomous Reef Monitoring Structures Project.

The DENR-BMB also implements a communication, educat ion a nd publ ic awa reness program and promotes biodiversity-friendly livelihoods and technology.

T he DENR-BMB pushed to strengthen the policy for biodiversity conservation, such as the passage of Republic Act 11038 Expanded-National Integrated Protected Areas System Act. To ra l ly the suppor t of the people in protecting and conser v ing the countr y’s r ich mar i ne biod iversit y, R od r ig uez said the DENR-BMB is pushing to mainstream biodiversity in gover nment programs and promotes stricter enforcement and implementation of env ironmenta l laws; and inc lude bio d iversit y i n sc hool mo d u les in par tnership w ith the Depar tment of Education and Commission on Higher Education, and help build capacities of loca l gover nment units.

B6 Monday, March 11, 2019

VERANO GREENHILLS HOLDS CEREMONIAL CONCRETE POURING WEALTH SECURITIES INC. TO DISTRIBUTE SUN LIFE FUNDS

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O enable more investors to access its suite of mutual funds, Sun Life Asset Management Co. Inc. (Slamci), one of the largest nonbank asset-management companies in the Philippines, has inked a partnership with Wealth Securities Inc., one of the most active local-stock brokerages in the country.

Wealth Securities Inc. will distribute the Sun Life Prosperity money market, GS, bond, balanced, Philippine Stock index and Philippine equity funds.

Thus, Wealth Securities Inc. clients

looking to diversify their portfolios may conveniently do so in line with their financial goals.

“It’s a thrill for us at Sun Life Asset Management [Co. Inc.] to collaborate with Wealth Securities [Inc.] in helping Filipinos achieve prosperity and create a brighter future,” Slamci President Valerie Pama said. “We trust that this will be a productive and meaningful partnership for both companies.”

T his sentiment was reiterated

by Wealth Securities Inc. President Kevin Neil Sy. “We look forward to

growing this venture with Slamci to create brighter financial lives in the Philippines,” he said.

Fut u re i n it i at ives u nde r t he partnership include the distribution of more Sun Life Prosperity funds

by Wealth Securities Inc., as well as providing the latter’s clients access to Slamci’s various events where they can learn from Sun Life’s fund professionals.

In photo are (from left) Slamci bank and alternative channels head Gerald L. Bautista, Pama, Sy and Wealth Securities Inc. corporate secretary Ruby S. Tan.

ERANO Greenhills, the first and premiere realestate development of Grand Taipan, holds its ceremonial concrete pouring at 9 Annapolis Street in Greenhills, the site where it will soon rise among San Juan City’s select skyscrapers.

Heralding the milestone for Grand Taipan were the company’s executives led by its president and cofounder Joeben Tai. Joining them in celebration were esteemed guests and partners from Building Beaver Corp., Asya Design, Quadstruct Inc., and YLF Contracts and Solutions Inc. “It has always been my lifelong dream to build developments that will provide first-rate quality living. I believe that Verano Greenhills, as the firstever project of Grand Taipan, is just the beginning,” Tai says.

Indeed, from being a former real-estate broker to becoming the president and cofounder of a realestate company, Tai is turning many of his dreams into reality.

Verano Greenhills will offer exclusive residential units and high-end serviced residences that will take up nine floors of the 50-story condominium tower.

Living at Verano Greenhills will be both luxurious and full of fun with its notable amenities and lifestyle features.

A bilevel recreation area will house the fitness center, study room, private mini theater, music room, kids’ play room and game room. For more rest and recreation, it will have a well-designed

swimming pool. There will be a function hall for special occasions and corporate events, as well as a sky deck that gives an amazing view of the city.

To complete its offering, Verano Greenhills will provide future homeowners with convenience and comfort.

Its location is accessible through transport hubs, proximate to Greenhills Shopping Center and educational institutions, like Xavier School, Immaculate Conception Academy, OB Montessori, Poveda and La Salle Greenhills, and nearby government agencies like the Philippine Overseas Employment Administration.

Helping Grand Taipan in the overall construction is Building Beaver Corp., which honed its expertise through numerous construction projects. A subsidiary of Hilmarc’s Construction Corp., Building Beaver has proficiently implemented and efficiently completed Joya Lofts and Towers, 8 Rockwell in Makati City and Okada Manila as the general contractor.

Verano Greenhills has been cited by 2018 PropertyGuru Philippines Property Awards for Best Condo Architectural Design and Highly Commended for Best Condo Interior Design. It is set to be completed in 2022.

In photo are (from left) Building Beaver operations manager Raymond Domingo, Building Beaver President Edouard Ferdinand Canlas, Tai, Quadstruct President, Robert Niebres, Quadstruct design engineer Erika Alexis Garcia; YLF Vice President for Operations Meriam Bustarga and Asya Design manager Ja Lopez.

INTERNATIONAL SPEAKING OPENS CULTURAL UNDERSTANDING, INCREASES REVENUES

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ASTERING the art of public speaking—especially on the international stage—can bring even successful businessmen’s distinct advantages. Take the case of Paul Maguire, an American serial entrepreneur; and Lindsay Adams, an Australian relationships coach, who are two of the more than dozen speakers who participated in the week-long Speak in Manila conference at the Discovery Suites in Ortigas.

Both gentlemen are highly successful businessmen in their respective countries who are expanding their ventures into other regions and have found international public speaking to be an effective tool, to establish new ties.

Maguire, who himself has helped fellow entrepreneurs build their brand, elaborates how speaking on the global stage has been an eye-opener in more ways than one. He says, “It sharpens your skills, and makes you a more wellrounded speaker who is able to adapt to different cultures, and geographic norms, manners and etiquette. When I am speaking in the Philippines, I have a message that is seen in the Philippines. This gives more credibility than creating content outside of Asia and then trying to deliver it in Asia.”

Relationship marketing specialist Lindsay Adams agrees that public speaking is a very effective way to strengthen professional relationships. As a business coach, he found that using the phone to interact with his clients in Australia, New Zealand, Singapore, Malaysia and the Philippines “was a lonely way to do business.”

In contrast, public speaking helped him build lasting relationships with those clients. It also helped him get new

ones. Adams says, “I usually receive up to five new inquiries as a result of speaking at an event. The inquiries can be about speaking in another event or doing consulting for a company.

Public speaking contributes to around 25 to 50 percent of my revenue each year.”

The Speak in Manila conference was organized by Mitch Carson, president of Impact Products Marketing. The other international speakers who participated include Rachel Mei Fang, the founder of LMF International Language Academy in Malaysia; sleep improvement coach Mayuko Yamaguchi; holistic practitioner Donna Marie Laino; copywriter Brian Cassingena; sales presentation mentor Akihiro Fujimura; sleep improvement professional Eizo Fujii; network marketing coach Lee Yee Lan; Malaysian communication coach Rizal Rashid; professional sales trainer Mindie Sai; Sinichi Sakurada, a coach to entrepreneurs; Kazuhiro Sen, an English/Japanese translator; Malaysian property investment coach Eason Tee; sales force mentor Mike Watase, who comes from Japan; parenting mentor Y Lim; and German eco-champion and Matthias Gelber. Carson has plans to launch a similar event in Cebu and another in Manila this year.

THIS YEAR’S LUBAO BALLOON FEST TAKES YOU WAY ABOVE AND BEYOND!

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HE Lubao International Balloon and Music Festival (Lubao IBMF) has been an enormous success for five consecutive years. It’s known for its vast landscape, high-spirited concerts and beautiful hot air balloons that take to the sky in clusters.

Following the previous year’s success, the Lubao IBMF comes back this 2019 to take you way above and beyond! The event takes place from April 5 to 7. The artist lineup consists of crowd favorites, such as Al James, This Band, Juan Karlos, I Belong to the Zoo, Ben & Ben, Shanti Dope, December Avenue and Gloc-9. Also watch out for the country’s top artists Moira, Bamboo and Apl.De.Ap. The Lubao IBMF 2019 will also offer some of its most

beloved activities, such as rallycross, off road, ultralight, motoparagliding, motocross and Zookobia, which are among many more entertaining ventures. Put your sunblocks on and get ready for the hottest event this summer!

Get your tickets now at SM Tickets (https://www. smtickets.com). Ticket prices at P350 for general admission and is valid for one day.

The Lubao IBMF 2019 is organized by Lubao International Balloon Festival Inc. together with Forthinker Inc., in cooperation with the Arts, Culture and Tourism Office of Pampanga, and with support from provincial government of Pampanga.

For further inquiries, visit lubaoibmf.com.

U.S. WOMEN’S TEAM

FIGHTS DISCRIMINATION

Sports BusinessMirror

C1

| Monday, March 11, 2019 mirror_sports@yahoo.com.ph Editor: Jun Lomibao

Adidas: Women to get same World Cup bonus as men

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By Anne M. Peterson The Associated Press

HREE months before beginning their defense of their Women’s World Cup title, American players escalated their legal dispute with the US Soccer Federation (USSF) over equal treatment and pay.

Players filed a federal discrimination lawsuit against the federation Friday, alleging ongoing “institutionalized gender discrimination” that includes unequal pay with their counterparts on the men’s national team.

The women’s team has often championed equalrights issues and sought more equitable pay during collective bargaining two years ago.

“I think a lot of people look to us and our team and the collective voice that we have and what we’ve stood for, for inspiration and for power, and as an ally in this broader fight for equality and human rights, really,” said winger Megan Rapinoe, a cocaptain and veteran of 149 international appearances.

The 28 members of the current women’s player pool filed the lawsuit in USDistrict Court in Los Angeles under the Equal Pay Act and Title VII of the Civil Rights Act. The lawsuit, which seeks class-action status, was filed on International Women’s Day. Players seek damages that include back pay.

“We believe it is our duty to be the role models that we’ve set out to be and fight to what we know we legally deserve,” forward Christen Press told The Associated Press.

“And hopefully in that way it inspires women everywhere.”

The US Women’s National Team Players Association is not party to the lawsuit but said in a statement that it “supports the plaintiffs’ goal of eliminating gender-based discrimination by USSF.” The USSF did not have an immediate comment.

The men’s and women’s US national teams have separate collective bargaining agreements, and their pay is structured differently. That means there is no dollar-todollar salary comparison.

The lawsuit claims that from March 2013 through December 31, 2016, when the previous collective bargaining agreement expired, players on the women’s team could make a maximum salary of $72,000, plus bonuses for winning nontournament games, as well as World Cup appearances and victories, and for Olympic placement.

“A comparison of the WNT and MNT pay shows that if each team played 20 friendlies in a year and each team won all 20 friendlies, female WNT players would earn a maximum of $99,000 or $4,950 per game, while similarly situated male MNT players would earn an average of $263,320 or $13,166 per game against the various levels of competition they would face,” the lawsuit says.

It concludes that a top-tier women’s player would make only 38 percent of a similarly situated men’s player.

A pay disparity was very apparent at the World Cup: In 2014, the federation gave the men’s roster a performance bonus of nearly $5.4 million after the US went out in the round of 16 in Brazil. The women’s team received a bonus of $1.72 million after winning the 2015 World Cup in Canada.

The last time the US men made the World Cup field (for Brazil) male players selected to the roster received a $55,000 bonus, while the women received $15,000 each for making the 2015 World Cup, according to court documents. Additionally, the men shared a $2-million bonus for qualifying, while the women shared $300,000.

The USSF has long maintained that any disparity is the result of separate collective bargaining agreements.

Compensation for the women includes a guaranteed salary and also salaries paid by the USSF for their time with clubs in the National Women’s Soccer League. The men get paid based on roster selection for appearances for friendlies and tournaments.

While star players on the women’s team, like forward Alex Morgan, can make as much as their male counterparts because of endorsement deals, the disparity becomes greater for players with lesser profiles.

Terms of the collective bargaining agreements have not been made public.

A group of players filed a complaint in 2016 with the federal Equal Employment Opportunity Commission that alleged wage discrimination by the federation. The new lawsuit effectively ends that EEOC complaint, brought by Morgan, Rapinoe, Becky Sauerbrunn, Carli Lloyd and former goalkeeper Hope Solo. The players received a right-to-sue letter from the EEOC last month.

Kathryn H. Ruemmler, a lawyer representing the federation, wrote in a May 2016 letter to the EEOC that over the previous four years, women’s national team players averaged almost $280,000, a figure $90,000 more than men’s national team players. She pointed out that women receive benefits the men don’t, including severance pay, medical insurance, maternity leave, child care and a relocation allowance.

Ruemmler also said men’s games generated about $144 million from 2008-2015, while women’s matches generated $53 million, and television ratings for men’s games from 2013-15 averaged twice the figure for women’s matches.

But those figures were for years prior to the women’s 2015 World Cup victory and also did not include the men’s failure to reach the 2018 World Cup. The women’s team brought in $6.6 million in profit in 2015, compared to less than $2 million for the men’s team.

Following the EEOC action, the women took the fight for equality into contract negotiations and struck a collective bargaining agreement covering 2017-2021.

Players received raises in base pay and bonuses, as well as better provisions for travel and accommodations, including increased per diems. It also gave the players some control of certain licensing and marketing rights.

The lawsuit filed Friday seeks “an adjustment of the wage rates and benefits” for the women.

“At the heart of this whole issue we believe that it’s the right thing. We believe that there has been discrimination against us,” Rapinoe said. “And while we have fought very hard and for a long time, whether that be through our CBA or through our players association, putting ourselves in the best possible position that we can to get the best deal that we can, we still feel that we don’t have what we’re trying to achieve, which is equality in the workplace.”

POPE FRANCIS GIVES CYCLING MIXED BLESSING

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ERZOGENAURACH, Germany—Sportswear maker Adidas says it will give the same bonus to any of its sponsored players on the Women’s World Cupwinning soccer team as their male counterparts.

Adidas says on Twitter that it believes “in inspiring and enabling the next generation of female athletes, creators and leaders through breaking barriers.”

On Friday—International Women’s Day—American players filed a federal discrimination lawsuit against the US Soccer Federation over equal treatment and pay. The players alleged ongoing “institutionalized gender discrimination” that includes unequal pay with their counterparts on the men’s national team.

The US defends its title at the Women’s World Cup, which starts on June 7 in France.

An agenda for Fifa’s ruling council, meanwhile, said plans to expand the 2022 World Cup to 48 teams will be assessed at next week’s meeting.

Fifa President Gianni Infantino has said fast-tracking the increase, which was due to start at the 2026 tournament, would require using additional countries beyond Qatar.

Qatar’s infrastructure is already stretched for the Middle East’s first World Cup, currently scheduled for 32 teams playing 64 games in 28 days.

To fit in 16 additional games, Fifa is looking at using Kuwait and Oman, a person with knowledge of the situation told The Associated Press on condition of anonymity because the talks are confidential.

Fifa council members are yet to be provided with the feasibility study on World Cup expansion that will be discussed on March 15 in Miami.

The council will also discuss Infantino’s desire to expand the Club World Cup and launch a Global Nations League, plans that have stalled amid European opposition. AP

POPE FRANCIS cites the team spirit often seen in cycling but warns that it can become distorted when profit and prestige take over. AP

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U.S. midfielder Julie Ertz stands on the pitch after the team’s 2-2 draw with England in the recent SheBelieves Cup in Nashville, Tennessee. AP

ENGAGED Jennifer Lopez said yes to

Alex Rodriguez’s proposal, and with the rock he presented, who could say no? The couple posted an Instagram photo of their hands with a massive engagement ring on Lopez’s ring finger. The former Yankees shortstop captioned his photo with “she said yes” and a heart emoji.

The couple has been dating since early 2017 and later that year landed on the cover of Vanity Fair magazine with their celebrity couple nickname, J-Rod. It will be Lopez’s fourth marriage and Rodriguez’s second. Each has two children from previous marriages. AP

ATICAN CITY—Pope Francis has praised cycling for the value it places on discipline, selflessness and courage, but warned that the sport can become tainted by doping, dishonesty and corruption.

Francis met on Saturday with European and African cycling federations during their annual assembly in Rome.

The Argentine Jesuit cited the team spirit often seen in cycling but warned that it can become distorted when profit and prestige take over. He cited “doping, dishonesty, disrespect for oneself and one’s opponents, and corruption.”

Francis, a known soccer fan, has long promoted sport as an example of solidarity to be nurtured, especially among the young.

Geraint Thomas, meanwhile, kicked off a second block of early-season racing at Strade Bianche on Saturday, convinced he is back on track as he builds towards the defence of his Tour de France title.

Thomas and Chris Froome will again be joint leaders for the Tour de France, with the Welshman keen to land a rare second consecutive victory, with Froome chasing a recordequalling fifth win.

It seems the road will eventually decide who becomes Team Sky’s protected rider. But Thomas played down any tension about team leadership.

“We’ll just treat it like we did last year—just be open and honest with each other,” Thomas said as he prepared to roll out at Strade Bianche.

“As long as one of us wins, that’s the goal. If we end up racing against each other and someone else won, when one of us could have won, that would be a disaster.”

Thomas and Froome seem unlikely to race together until the Tour de France, but Thomas suggested they will have plenty of time to thrash out a joint strategy for the Tour de

France while training together at altitude on Mount Teide.

Thomas has always insisted he would focus on the Tour de France in 2019, but rumours and calls for him to ride the Giro d’Italia have continued to circulate, with even bike sponsor Pinarello recently claiming that Thomas would ride the Italian Grand Tour.

“No, No,” Thomas made clear when asked if he would ride the Giro d’Italia.

“I’ll do this and back to Tenerife [for altitude training], then Basque, Romandie and Suisse, kind of a standard buildup. I really like racing in Italy and was really thinking about coming back, but it just didn’t fit,” he explained.

“I wanted to just target the Tour 100 percent because of being the reigning champ. Maybe if I was second or third last year, I might have done the Giro, but I just wanted to go to the Tour at 100 percent.”

Team Sky have still yet to confirm their Grand Tour plans, but Thomas and Froome will be team leaders for the Tour de France, with Egan Bernal and Gianni Moscon leaders for the Giro d’Italia. After missing the UAE Tour, Froome is expected to ride the Volta a Catalunya and the Criterium du Dauphine as his final Tour de France preparation.

Thomas celebrated his Tour de France for several months in the autumn and winter but has been training seriously since December and is gradually getting back to his racing weight. He is not expecting to fight for victory in March but does not seem concerned about results for now.

“I’m still on the nice progression up, so I feel a lot better than Valencia, but at the same time I don’t feel sort of ready to win. I want to enjoy myself, help my teammates where I can,” Thomas said.

Like most riders in the Strade Bianche peloton, Thomas is happy race on the dirt roads even if the Classics are no longer a goal. AP and Cyclingnews

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CEBU COUNTR

P.A.L. INTER U

FAR Eastern University’s Lycha Ebon (2) and Celine Domingo (13) try to stop Adamson University’s Christine Joy Soyud. NONOY LACZA

LADY TAMS TRIUMPH

By Ramon Rafael Bonilla

F

AR Eastern University (FEU) stood its ground against a strong challenge put up by Adamson University to score a 25-18, 17-25, 25-14, 22-25, 15-8 victory in the University Athletic Association of the Philippine Season 81 women’s volleyball tournament on Sunday at the Filoil Flying V Centre in San Juan City.

The Lady Tamaraws puffed enough smoke in the end to clinch their third straight victory and fourth overall to join the reigning titlist De La Salle Lady Spikers and University of

Santo Tomas Golden Tigresses at joint third place on a 4-2 won-lost record.

Heather Guino-o tallied 20 points on 17 spikes and three aces, while also adding 13 excellent sets and 10 receptions for FEU. Rookie Lycha Ebon chipped in 17 points on 15 attacks, while Celine Domingo added 14 points for a well-balanced attack for the Morayta-based squad.

“I told them to exert more effort because we wanted to win more games,” FEU Head Coach George Pascua said.

FEU controlled the opening set until Adamson University unloaded a 6-2 run in the

second frame which the team never let go.

Sensing the switch in momentum, Guino-o led a counterattack in the third to keep her team ahead, 2-1, but the Lady Falcons quickly regained their composure and used a 6-1 rally to take a commanding 20-15 lead in the fourth set.

Not to be deterred, the Lady Tamaraws, last season’s runners-up, unleashed a 6-1 attack of their own which the Lady Falcons could not counter.

Guino-o said no one was to be blamed for their near collapse but themselves as they almost succumbed to the pressure of the crowd.

“Our coach told us that we got carried away

from the loud cheers of the crowd. We should remain focused in those situations,” she said.

Eli Soyud scored 14 points built on 12 attacks, while Joy Dacoron and Bernadette Flora added 13 and 11 points, respectively, for Adamson University.

The Lady Falcons absorbed their fourth loss in five games.

In the men’s division, FEU remained unbeaten in six games following a dominant 25-14, 25-23, 25-23 win also over Adamson University (3-2).

Jude Garcia and Richard Solis starred with 12 points apiece for FEU.

NMINDFUL of the enormity of what was at stake, Cebu Country Club (CC) completed its date with Philippine Airlines Interclub history by turning back powerhouse Manila Southwoods to win the overall championship coming from a lower division on Saturday.

Burly Bayani Garcia and Pio Neri fired even-par 72s worth 36 points each, and Mark Dy accounted for 35 in leading a balanced final day assault on a Cebu CC course they call home as the Founders Division favorite steamrolled its way to a crown to remember with a nine-point victory over Southwoods.

“This is definitely unexpected,” skipper Marco Sarmiento, whose 33 was the last score to count, said before joining his teammates in a wild celebration. “We talked about how to attack [the final day] and that was to play with that [history] not in our minds.

“And I guess it worked,” he said as Cebu CC tallied 516 counting 252 points churned out at tight Mactan Island Golf in the middle two rounds and an opening 124.

This marks just the second time that a team from a lower division won the overall title, as Cebu CC duplicated a 1988 feat by an Aguinaldo team made up of future international luminaries like Ramon Brobio and swing Coach Bong Lopez.

Southwoods got 38 points from Yuto Katsuragawa but couldn’t get the others to deliver the numbers nonplaying skipper Thirdy Escano expected, settling for second and blowing their own bid to win the tournament a fifth straight time, a record solely held by Canlubang.

Chepe Dulay scored 34 points, Carl Corpuz added 32, and either 31 of Josh Jorge and former junior world champion Kristoffer

Scorpions, Movers dispute early lead

MERCEDESTROPHY UP AT STA. ELENA

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PARK DONATES PRIZE World No. 1 Sung-hyun Park (left) receives the trophy

from International Container Terminal Services Inc. and Solaire Resort and Casino Chairman Ricky Razon after completing her wire-to-wire triumph in the first The Country Club Ladies Invitational on Friday. The Solaire brand ambassador later donated her $15,000 prize to the Child Protection Network (CPN) Foundation Inc., a nongovernment organization of doctors, social workers, lawyers, police and volunteers dedicated to ensure that all children in the Philippines and throughout Asia are protected from abuse.

TOP LOCALS VS. THAILAND ACES T

HE country’s top guns and a host of aces from Thailand gear up for another fierce showdown as action in the Ladies Philippine Golf Tour (LPGT) resumes on Tuesday with the International Container Terminal Services Inc. (ICTSI) Manila Southwoods Ladies Championship at the Legends course in Carmona, Cavite.

Princess Superal, Pauline del Rosario, Cyna Rodriguez and Chihiro Ikeda set out against the likes of multi-titled LPGT winner Yupaporn Kawinpakorn, Supakchaya Pattaranakruean, Saraporn Chamchoi and Chonlada Chayanun in what promises to be a slambang chase for top honors in the 54-hole championship serving as the sixth leg of LPGT’s 2018-19 circuit put up by ICTSI. They actually all saw action in last week’s The Country Club Ladies Invitational ruled by world No. 1 Sung-hyun Park with amateur Yuka Saso humbling the local and foreign pros by taking up the challenge to the fancied Korean in all three days and eventually taking runner-up honors.

Superal, the reigning LPGT Order of Merit champion, was the best-placed at fourth behind

Saso and Ladies Professional Golfers Association campaigner Dottie Ardina with the diminutive former US Girls’ Junior champion hard-pressed to dish out a better, stronger performance to get a crack at another crown.

Focus will also be on young Korean Hwang Min-jeong, who edged Superal by one to win the Splendido Ladies Classic last January to mark her pro debut in style. But Hwang will be as much tested as the rest of the 46-player field all primed up for battle in scorching heat at the bunker-laden par-72 layout.

Eleven amateurs are also in the fold, including Sofia Chabon, Eagle Ace Superal, Mafy Singson, Laurea Duque, Sam Dizon, Sunshine Baraquiel and Junia Gabasa.

The other pros seeing action in the tournament organized by Pilipinas Golf Tournament Inc. are Malaysian siblings Aishah, Shahira and Ezrina Che Omar, Japanese Ayaka Morimitsu and Natsuki Kishikawa, Koreans Lee Jeong Hwa, Hyun Ji Rho and Choeun Bang, Taiwanese Hsien Wen Huang and Hsuan Ping Chang, Tatiana Wijaya of Indonesia and Lisa Kang of the US.

ORE than 200 players are in harness for another faceoff in the MercedesTrophy Golf Invitational on Monday with no less than berths both in the Asian and world finals up for grabs at the Santa Elena Golf and Country Club in Laguna.

The huge field, featuring Mercedes-Benz owners and golf enthusiasts, will play over the posh 27-hole layout with the winners in three men’s divisions and their respective runners-up along with the ladies champion to represent the Philippines in the MercedesTrophy Asian Finals set in Brisbane via Philippine Airlines.

The best Filipino placer in the event, presented by Auto Nation Group Inc., exclusive distributor of Mercedes-Benz in the country and backed by Platinum sponsors Makati Shangri-La Hotel, Philippine Airlines,

PLDT, Paramount Life and General Insurance, Shell Philippines and TW Steel, will then head to the world finals set in Germany in October.

The 14th staging of the annual event, backed by Boysen, the BusinessMirror, Remy Martin, Security Bank and Boss, and held to raise funds for the Cardinal Medical Charities Foundation Inc., a nongovernment organization that grants medical care and financial subsidy to disadvantaged patients, was launched in elaborate rites during the MercedesTrophy Sponsors and Champions Night on March 1 at the Makati Shangri-La Hotel.

Besides the rare chance to mix it up with other regional winners, participants in the Asian Finals will also be treated to an experiential drive showcasing the world-class performance and dynamic handling of M-Benz vehicles.

A missed opportunity RICK OLIVARES | bleachersbrew@gmail.com

BLEACHERS’ BREW THE Our Lady of Fatima University (OLFU) Phoenix upset the San Sebastian College Recoletos (SSCR) Golden Stags, 61-55, in the finals of the sulit.ph BBI Men’s Under-25 tournament at the Moro Lorenzo Sports Center on Saturday.

SSCR’s only two losses were to OLFU. The first was actually a default because their game coincided with the opening of the ongoing D-League tourney.

A hollow win, some opined. But not so much in the finals where none of the Stags could match up against the Phoenix’s African center Chris Essomba who finished with only eight points but grabbed 14 rebounds, blocked three shots and stole the ball once. Granted Essomba fouled out, but he got all three of the Stags’s bigs in foul trouble, as well.

Jessie Sumoda, JM Calma and Alvin Capobres each had four fouls.

That is three veterans for SSCR Coach Edgar Macaraya. Surprisingly, they didn’t use their young big man Rommel Calahat that much. And

Calahat played very well in the semifinals win that got them to the finals.

OLFU was leading 41-34 going into the final period of play. They shot poorly in the fourth period, knocking down only 6-17 field goal attempts. They made up for it by hitting their free throws, 8-11.

The problem for the Stags is that they also shot poorly in the fourth period when they made only seven of 15 field goal attempts and four of 10 free throws. Their two turnovers could possibly be inconsequential as OLFU were unable to capitalize on them. It did though chew up some clock and they missed two offensive chances.

So, the Phoenix took home the trophy.

On one hand, I am happy for Fatima. On the other hand, I feel bad for San Sebastian.

I feel that for all the talent they have had in the last couple of seasons, they could have broken into the Final Four or even competed for a title had they one, been intact with others

Arevalo counted for Southwoods’s closing 135 and 507 overall, 17 points ahead of Luisita.

The Luisitans got 34 points from Paolo Wong and 32 from Don Petil to make up the bulk of a closing 126, with Del Monte shooting a 119 after 36 points from Romeo Jaraula.

The Cebu CC victory also gift-wrapped for Orchard Golf Club the Founders Division crown with the Dasmariñas-based squad tallying 482 after a fourth round 129 for a 24-point win over Forest Hills.

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ARLY Foundation Cup leadership is at stake when unbeaten teams Centro Escolar University (CEU) and Metropac-San Beda face each other in the Philippine Basketball Association D-League on Monday at Paco Arena in Manila.

Tip-off is at 4 p.m., following the 2 p.m. clash between unbeaten Valencia City Bukidnon-San Sebastian College (2-0) and winless SMDC-National University (0-2).

Both the Scorpions and Movers banked on their defense to get the job done in their first two games.

CEU is so far the best defensive team early in the tournament, limiting their foes to just 70.5 points, while Metropac-San Beda isn’t far behind with its 72.5 points allowed.

That’s why, for Scorpions Coach Derrick Pumaren, he’s hoping that the experience advantage would favor his side over the Movers.

“They are a tough team. Hopefully, we come

out, show up and step up to the challenge. This will be a good gauge for us,” Pumaren said after his side’s 90-65 win over University of Perpetual Help last week.

Senegalese big man Maodo Malick Diouf, Rich Guinitaran and Tyron Chan will be counted on as CEU seeks win No. 3.

Cameroonian center Donald Tankoua will be out to counter them for Metropac-San Beda, which has also drawn big contributions from young guys James Canlas and Evan Nelle.

“I’m happy with the way they’re stepping up,” Movers Coach Boyet Fernandez said. “The guys coming off the bench are stepping up and proving that they are capable of playing. That’s really our focus right now.”

Metropac-San Beda is coming off a 94-70 victory over Wangs Basketball on February 28 and would love to add another victim to its growing list.

not transferring for one reason the other; and two, having these battle-tested veterans in Allyn Bulanadi, Alvin Capobres, RK Ilagan comes at a great cost—years and maturity. As it is now, the next season is their last in college before they give the pros a try.

One can say that the BBI U25 crown isn’t the National Collegiate Athletic Association, the Philippine Collegiate Champions League, Filoil or even the D-League. I disagree with that. For the most part, they were the one team that fielded their NCAA stars. Other squads from Ateneo, La Salle and University of the Philippines featured mainly Team B players.

I feel you owe it to win anything you compete in.

Sure, you need to give exposure to the players in order to develop them. I get that. For some, this might be the closest they will win something because they still have to compete against the moneyed-machines like San Beda and College of Saint Benilde.

And there is something else, too.

Yes, OLFU had a tall African center that gave the team fits and matchup problems in the BBI finals.

But that begs the question—why didn’t they get one, too?

In my opinion, the reason why the NCAA got rid of foreign players was to break the stranglehold of San Beda on the men’s title which they have won 11 in the last 13 years. It is a myopic look at basketball.

Their success in finding foreign centers in Sam Ekwe, Sudan Daniel, Ola Adeogun and Donald Tankoua is a large reason why they have dominated the NCAA. Sure, other schools did get foreign players. They

experienced varying degrees of success, but that was either the ones they got weren’t very good or the coach wasn’t the best guy to lead them to the top.

It is sad because I feel had they also had a reinforcement during the Calvin Abueva years, they might have won another title. They’ve also had good players since then but they could never put it together.

I think that having a talented foreign studentathlete is a huge plus. But it isn’t the only overriding factor.

Case in point...Mapua. They had Allwell Oraeme, the two-time Most Valuable Player. But they didn’t surround him right away with top talent nor top coaching.

When San Beda defeated Lyceum in consecutive finals matchups, the foreign players somewhat canceled each other out. The difference is, San Beda had the studs in Robert Bolick Jr. and Jayvee Mocon.

Lyceum only had CJ Perez.

Ateneo won five straight University Athletic Association of the Philippines titles without a foreign player. When they won again two years ago, the foreign player was a role player. It was only this last season where they had a stud of a foreign player. Yet, they needed every hand on deck to win.

I feel bad for this Stags team. They have been through so much. So much. And I enjoyed their breakneck pace basketball. Patay kung patay basketball. I would have wanted to see Bulanadi, Capobres, Ilagan and company take home a winner’s medal.

But hope springs eternal for them, right?

orts

sMirror

Monday, March 11, 2019 C3

RY CLUB BOOKS

RCLUB HISTORY MEMBERS of Cebu Country Club—Julius Neri, Bayani Garcia, Marko Sarmiento, Mark Anthony Dy and Harvey Gio, and Martin Mendoza, Julius Garcia Neri Jr., Julius Pierre, Hugo Saurat, Peter Po II, Marc Gonzalez and Eric Anthony Deen— celebrate their victory. ROY DOMINGO

Zachary Castro scored 35 and Gabriel Macalaguim 34 to lead Orchard, which also drew 32 from Francis Lanuza and 28 from Jong Goo-kim.

Former US NCAA standout Jude Eustaquio fired 36 points, and Inigo Raymundo accounted for 31 to lead Forest Hills.

This year’s Interclub is sponsored

by Radio Mindanao Network, Asian Air

Safari and Vanguard Radio Network.

Also extending support are ABS-CBN Global Ltd. (The Filipino Channel), Rolls Royce, Primax Broadcasting Network, UM Broadcasting Network (Mindanao), Fox Sports, Cignal TV, GECAS, Boeing, Lufthansa Technik AG, Marco Polo Plaza Cebu, Dusit Thani Manila and Casino Filipino. Official hotel is Quest Hotel Conference Center Cebu.

Pampanga Lanterns close out campaign with win over Zambo

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HE Pampanga Lanterns edged playoff-bound Zamboanga-Family’s Brand Sardines, 87-85, to close out its campaign on a winning note in the Maharlika Pilipinas Basketball League Datu Cup at the Angeles Univcersity Foundation Arena in Angeles City late Saturday night.

Juneric Baloria scored five of his team’s last six points in the final 38 seconds for Pampanga, which ended its eliminations campaign with an 11-14 record, the same record held by the Caloocan Supremos. But by virtue of the win-over-the-other rule, the Supremos, who defeated the Lanterns in their only elimination-round encounter, got the eighth and last spot in the northern division playoffs of the tournament put up

by Sen. Manny Pacquiao with Philippine Basketball Association legend and former Most Valuable Player Kenneth Duremdes serving as commissioner.

In the other game, Bacoor scuttled Basilan, 79-67, to stay in contention for the No. 5 spot.

Following its latest win and coupled

by Zamboanga’s loss earlier, Bacoor could get the fifth spot in the southern division playoffs with a win against Parañaque in the continuation of its last five minutes match that was ordered to be replayed by Duremdes due to technical issues.

Baloria, a deadshot guard, made things possible for Pampanga. He knocked in a triple in the 38-second mark to push his team up, 84-82.

Baloria’s former college teammate, Harold Arboleda, responded with a trey of his own in the next play to put Zamboanga ahead, 85-84.

In the next play, Baloria drove hard to the basket and was fouled in the process by Arboleda, then calmly sank both free throws still 12 seconds left and put the Lanterns back on the driver’s seat, 86-85.

With no timeouts left, Zamboanga rushed to the other end, and Roño lost his balance while dribbling from the backcourt and turned the ball over.

Tan-Rodriguez, Abdilla-Lopez tandems rule beach volley tilt

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HE pairs of Bea Tan and Dij Rodriguez and Ranran Abdilla and Jessie Lopez copped the women’s and men’s titles in the Beach Volleyball Republic on Tour Amazing Puerto Galera Dreamwave Open on Sunday at the Dreamwave White Beach in Mindoro.

Representing Team Amazing Puerto Galera, Tan and Rodriguez capped their debut as partners with a masterful 21-15, 21-14 conquest of Team XentroMall’s Derie Rosales and MJ Ebro.

Abdilla and Lopez, also of Team Amazing Puerto Galera, fashioned out a 21-17, 21-14 victory Team XentroMall’s KR Guzman and Krung Arbasto, for a perfect campaign.

Finishing with a 4-0 record, Tan and Rodriguez overpowered Team Dreamwave’s Roma Joy and Roma Mae Doromal, 21-12, 21-13, earlier in the day.

In the final, Tan and Rodriguez were simply scintillating in producing well-placed shots at the net, defense and service to prevail.

Tan actually ruled the tournament for the second straight time, having won the

Puerto Galera Championship with Charo Soriano last year.

Rosales and Ebro, members of University of Santo Tomas’s deep beach volleyball pool, topped the Doromal sisters, 21-16, 21-15, to make it to the championship game.

Abdilla and Lopez scored a 21-18, 2115 victory over Team Dreamwave’s Kevin Juban and Raphy Abanto to arrange a title duel with Guzman and Arbasto.

Playing under brutal noontime heat, Guzman and Arbasto bested Jade Becaldo and Fort Llores, 21-13, 21-18. Becaldo and Llores, first time playing together, achieved a podium finish.

Play stopped in the second set of the men’s championship match, as Guzman felt discomfort in his body when the AbdillaLopez pair was leading, 15-12. The game was eventually resumed, as Guzman tried to put up a valiant fight to no avail.

The second leg of the beach volleyball circuit will be held at Santa Fe, Bantayan Island, on March 23 and 24.

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EXICO’S Mauricio Mendez and Czech Repulblic’s Radka Kahlefeldt gear up for a tougher, challenging face-off with the very best in longdistance triathlon as they go for back-to-back in the Alveo Ironman 70.3 Davao presented by Petron on March 24.

The duo bested a crack roster of rivals in contrasting fashions to rule the inaugural staging of the event at Azuela Cove last year with Mendez, 23, and Kahlefeldt completing a “double” by ruling the Asia-Pacific Championship in Cebu last August.

That should make them the marked bets in the upcoming 1.9-km swim/90-km bike/21-km run event organized and conducted by Sunrise Events Inc., which had lured close to 2,200 entries from 38 countries with Mendez out to better his mark of 3:50.32 in a come-frombehind manner and Kahlefeldt seeking to improve her

IRONMAN 70.3 SET IN DAVAO MENDEZ KAHLEFELDT winning 4:25.38 time clinched in wire-to-wire fashion.

They include 16 pro triathletes clashing not only for top honors but also for World Championship berths with noted Aussies Tim Reed, Sam Betten and Tim Van Berkel, Germany’s Markus Rolli, Frenchman Antony Costes and Bahrain’s Eric

Watson joining the title hunt.

Out to foil Kahlefeldt’s title-retention drive are veteran Philippine campaigners Caroline Steffen of Switzerland and Dimity Lee Duke of Australia with Guam’s Manami Iijima, who topped the Subic 5150 late last year.

The event, featuring individual and relay competitions, has also drawn campaigners from United Arab Emirates, Czech Republic, Hong Kong, Mexico, Ukraine, India, Malaysia, Qatar, the US, Belgium, Spain, Italy, New Caledonia, Singapore, South Africa, Japan, the Netherlands, Sweden, Great Britain, Korea, Norway, Thailand, Switzerland, Greece, Kuwait, New Zealand, Turkey, China, Guam, Mexico, Panama and Taiwan.

Sports BusinessMirror

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| Monday, March 11, 2019 mirror_sports@yahoo.com.ph Editor: Jun Lomibao

KYRIE IRVING (left) didn’t make the playoffs with the Cleveland Cavaliers until LeBron James returned for the 2014-2015 season, so he can do more than imagine. AP

NOVAK DJOKOVIC books his 50th match win at the desert tournament, his highest total at any Association of Tennis Professionals Masters 1000 event. AP

DJOKOVIC ON TRACK; VENUS WINS I

IRVING, CELTICS STORM PAST , LEBRON LAKERS L

By Greg Beacham The Associated Press

OS ANGELES—LeBron James put up a triple-double in less than 28 minutes, and it still wasn’t enough to keep his patchwork Los Angeles Lakers competitive against Kyrie Irving and the surging Boston Celtics.

Irving was the biggest reason for that disappointment during a fairly predictable chapter of this storied rivalry between two franchises heading in opposite directions.

Irving scored 30 points and Marcus Smart had 16 in the Celtics’ 120-107 victory over the short-handed Lakers on Saturday night, propelling Boston to its third consecutive win on its California trip.

“I feel for him,” Irving said, citing the Lakers’ injuries around James. “LeBron has always been a championship contender. Not to qualify for the playoffs is hard. I can only imagine.”

Irving didn’t make the playoffs with the Cleveland Cavaliers until James returned for the 2014-15 season, so he can do more than imagine. But playoff qualification won’t be a problem for his Celtics, whose up-and-down regular season has hit a high on the West Coast during a strong trip that concludes on Monday against the Clippers.

“The stuff that happens in the regular season, you can barely remember it in the playoffs,” Irving said with a shrug.

O

RLANDO, Florida—Rory McIlroy seems to have everything going his way at Bay Hill except for recent history.

With three birdies over the last four holes, McIlroy had a six-under 66 on Saturday that left him one shot behind Matt Fitzpatrick and in the final group of a Professional Golfers Association (PGA) Tour event for the third time in five starts this year, and the ninth time dating to the start of 2018.

That’s a sign of consistently good play.

There’s also some frustration from not having won from the final group since the Irish Open in 2016.

And by the look of Bay Hill in the warm, late afternoon—greens that looked yellow, fairways feeling tighter in such firm conditions—it won’t be any easier.

“Just what I needed,” McIlroy said. “I did everything I needed to do today to get myself back in the golf tournament, and excited to have another chance tomorrow.”

Fitzpatrick managed to avoid bogeys on a Bay Hill course so firm he could barely find any pitch marks on the greens on Saturday. It led to a five-under 67 and a one-shot lead as he goes for his first PGA Tour title.

He was at nine-under 207, which spoke to the

NBA RESULTS

Sacramento 102, New York 94 Brooklyn 114, Atlanta 112 Minnesota 135, Washington 130, OT Boston 120, LA Lakers 107 Milwaukee 131, Charlotte 114 Portland 127, Phoenix 120 Boston was challenged while James racked up his 80th career triple-double in a makeshift Lakers lineup missing three injured starters, but Irving hit a series of big shots down the stretch to seal it. After missing Wednesday’s win at Sacramento with a bruised thigh, Irving added seven rebounds and seven assists.

Marcus Morris had 16 points and seven rebounds for the Celtics, and Gordon Hayward added 15 points.

“I feel like we’re on the right track,” Hayward said.

“Certainly winning three in a row helps that. Certainly we can improve, too. We just want to be playing our best basketball come playoff time.”

James had 30 points, 12 assists and 10 rebounds in his seventh triple-double for the Lakers, who have lost five straight in a playoff chase that looks futile at this point.

“I did like the way we played,” James said. “I thought we shared the ball. I thought we defended them for the majority of the game. That’s a very good team over there.

Their hopes are very, very high in the Eastern Conference.”

Rajon Rondo, whose buzzer-beating jumper beat his former team in Boston last month, had four points, nine assists and six rebounds for the Lakers.

Giannis Antetokounmpo had 26 points, 13 rebounds and six assists and Milwaukee beat Charlotte for its National Basketball Association (NBA)-best 50th victory—131-114 against the Hotnets.

Brook Lopez added 25 points and eight rebounds as the Bucks used a second-half surge to knock out the Hornets.

It’s just the second 50-win season in the past 30 years for Milwaukee (50-16), which went 52-30 during the 2000-01 season and reached the Eastern Conference finals.

Kemba Walker led Charlotte with 25 points.

CJ McCollum scored 26 points and Portland snapped Phoenix’s three-game winning streak, 127-120.

Damian Lillard had 18 points and nine assists, while Jusuf Nurkic added 14 points and nine rebounds. The Blazers, who had lost three of their previous four games as they jockey for playoff position in the Western Conference, led by as many as 29 points.

Devin Booker led the Suns with 23 points.

Karl-Anthony Towns had 40 points and 16 rebounds

before leaving in the final seconds of regulation with a knee injury in Minnesota’s 135-130 overtime victory over Washington.

The Timberwolves outscored the Wizards 14-9 in the extra period for their fifth straight home win. Derrick Rose scored 29 points, including a wild 19-footer that put the Wolves up 131-127 with 58.2 seconds to play.

Bradley Beal led Washington with 36 points and Trevor Ariza added 27.

Spencer Dinwiddie scored 23 points, Jarrett Allen added 20 points and 12 rebounds and Brooklyn held off Atlanta, 114-112, for its third straight victory.

The Nets moved into a tie for sixth place in the Eastern Conference despite missing a staggering 21 free throws to give the Hawks a chance at the end. After Joe Harris hit one of two foul shots with 16.3 seconds remaining, Trae Young dribbled down the clock and passed to 42-year-old Vince Carter, who missed a threepoint attempt at the buzzer.

John Collins finished with 33 points and a career-high 20 rebounds for Atlanta. Young had a triple-double with 23 points, 11 assists and 10 rebounds.

Fitzpatrick takes one-stroke lead over McIlroy at Bay Hill difficulty of a fast, fiery course that would have made Arnie proud. It was the highest 54-hole score to lead at Bay Hill since Ben Crenshaw was at 210 in 1993.

That would have surprised no one who had to play it, especially late in the warm afternoon.

Fitzpatrick wasn’t aware that Keegan Bradley and Tommy Fleetwood, the coleaders after 36 holes, had quickly gone in reverse. But it didn’t take him long to figure it out. He hit a sand wedge from 115 yards to just inside 10 feet, and he couldn’t even find where the ball landed.

“So when you see that, you know it’s going to be in for tough, fiery greens,” Fitzpatrick said. “But the condition of the greens is fantastic, and they have been all week, so I think that that’s what make it’s so great. You can still hit to 30 feet, 40 feet and just have a perfectly great putt, just because they’re so good.”

McIlroy started quickly and was just hanging around until his big finish. He hit pitching wedge that settled a foot away for a tap-in on the 15th, hit a pitch over the bunker from right of the green on the par-5 16th for a four-foot birdie, and then finished with another pitching wedge to 10 feet for one last birdie.

Those birdies were big. The pars weren’t bad, either.

“I felt for part of the round today that I was hanging on,” McIlroy said. “You hit it up to 25, 30 feet, you take your two-putts, you move on and know you’re not going to lose any ground on the field.”

That finish put him where he wanted—the final group.

RORY MCILROY shows a sign of consistently good play. AP

NDIAN WELLS, California—Novak Djokovic beat Bjorn Fratangelo, 7-6 (5), 6-2, to open his pursuit of a record sixth title at the BNP Paribas Open on Saturday.

It was Djokovic’s 50th match win at the desert tournament, his highest total at any Association of Tennis Professionals (ATP) Masters 1000 event.

The world’s top-ranked player needed 1 1/2 hours to beat the American and improve to 11-1 on the season. Afterward, Djokovic went over to greet former No. 1 Pete Sampras, who sat courtside.

Defending champion and world No. 1 Naomi Osaka also had a night match at Indian Wells Tennis Garden.

Venus Williams outlasted No. 3 seed Petra Kvitova, 4-6, 7-5, 6-4, in the second round, just her eighth match of the year.

Kvitova served 10 aces and 10 doublefaults in the two-and-a-half-hour match. She became the highest seeded woman to lose so far.

“She’s been playing so well this year.

You never know what’s going to come off her racket,” Williams said in an on-court interview. “I just loved the battle.”

Williams, a three-time semifinalist at Indian Wells, is the oldest woman in the tournament at 38. She’s seeking her 50th career title. Williams also needed three sets to beat Andrea Petkovic in the first round.

“The crowd was behind me to get to match point,” Williams said.

Wimbledon champion Angelique Kerber dropped just two games in beating Yulia Putintseva, 6-0, 6-2. Kerber broke serve to open the match on her way to winning the first 10 games in a row.

Kerber, seeded eighth, converted 93 percent of her first serves and moved on to a third-round match against qualifier Natalia Vikhlyantseva.

“I was playing really aggressive,” Kerber said. “Yeah, it’s good to start the tournament like that.”

Other seeded winners were: No. 9 Aryna Sabalenka, No. 11 Anastasija Sevastova, No. 21 Anett Kontaveit and No. 24 Lesia Tsurenko.

Milos Raonic, Gael Monfils, Gilles Simon and Laslo Djere were seeded winners on the men’s side.

There were several upsets on Day 4 of the combined ATP-Women’s Tennis Association event.

No. 9 Stefanos Tsitsipas, who lost to Roger Federer in both the Australian Open semifinals and the final in Dubai last week, was ousted by Felix Auger-Aliassime, 6-4, 6-2.

Also losing on the men’s side were No. 11 Borna Coric and No. 23 Alex de Minaur.

In the women’s draw, No. 17 Madison Keys, No. 26 Carla Suarez Navarro, No. 28 Donna Vekic and No. 30 Anastasia Pavlyuchenkova lost. AP

McIlroy also was in the final group at Kapalua to start the year, three shots behind Gary Woodland. He was in the final group in Mexico City two weeks ago, four shots behind Dustin Johnson. This presents a better opportunity against Fitzpatrick, a five-time winner on the European Tour over the last four years.

But there are plenty of others still in the mix.

Fitzpatrick looked at the electronic leaderboard next to him and figured every name had a chance.

Fifteen players were within five shots of the lead.

“There’s water around here, the greens are firm, the rough’s thick,” Fitzpatrick said. “Today someone was saying it’s a bit like a US Open, which I could totally see.

It only takes a couple of water balls from the top 5 guys, a few dropped shots early and all of a sudden you sort of are not looking like you’re in a great position.”

The list included Fleetwood, who made a 6-foot putt on the 18th hole for his first birdie of the day and a 76. He also was five back.

Bradley didn’t have a par until the sixth hole, and only one of those was a birdie. He missed the fairway on No. 1 (bogey), hit into a bunker on No. 2 (bogey), threeputted for bogey on No. 3 and had another bogey from the bunker on No. 5. AP

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Social and economic life

EAR God, how should economic and social life be pursued? It should be according to the own proper methods within the sphere of the moral order, at the service of the whole human being and of the entire human community in keeping with social justice. Social and economic life should have the human person as its author, center and goal. May we be sensitive as children of God to this call. Amen.

GIVE US THIS DAY SHARED BY LUISA LACSON, HFL Word&Life Publications • teacherlouie1965@yahoo.com

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

Life BusinessMirror

Cindy Kurleto: Ultimate woman

FALL IN LOVE WITH YOUR TRUE COLORS

TOTA PULCHRA MISS CHARLIZE

THE Korean glass skin, the Asian drunk blush, the return of glitter—last year was filled with all sorts of beauty trends.

Yes, they were great creative outlets. However, these trends hardly felt natural for Filipina skin.

It is time to go full circle with a fab palette that shows who we truly are. Luckily, the No. 1 makeup brand in the Philippines makes it easier to embrace #EveryShadeOfYou. Avon (www.avonshop.ph) has just come up with a new line of nude lipsticks from Avon True Color, and it is as gorgeous as it gets with our natural skin tone.

The new Avon True Color Perfectly Matte nude lipsticks come in six new matte shades, covering a full range of Filipina-friendly tones. Go light with Nude Suede, or deep brown with Chocolate Crush. Explore the various creamy tans in between, including Marvelous Mocha, French Toast and Lush Cocoa. You can even wear a hint of red with Divine Twig—glam it up while staying true to your tone.

Whatever your shade, you are guaranteed fuss-free color that never cakes, cracks nor compromises. It is so easy to wear as Avon True Perfectly Matte Lipsticks give you intense color in just one swipe.

FITTINGLY FOR SUMMER

❶ DEVELOP

stronger muscles and improve your flexibility with this Pro-8 Shape Yoga Resistance Band.

❷

INCREASE your hand strength, endurance and grip with these Hand Grippers.

WORKING toward a fit and fabulous summer bod has gotten easier, as global brand Miniso Sports makes available a wide range of items that will help you in your everyday fitness routines.

Summer, after all, is the best time to try new workout routines, engage in various physical activities, and aim for six packs and beach-ready bodies. Miniso’s fashionable and affordable workout essentials are perfect for getting healthy and happy at your own basic at-home gym. Miniso stores can be found in most SM Supermalls nationwide.

Rebuild your strength and increase your balance with various resistance bands like loop bands, Pro-8 Shape resistance bands and yoga stretch bands. These will help improve your strength, flexibility and mobility in the glutes, knees and hips areas.

For core-strengthening exercises, there are abdominal wheels that allow your core muscles to work together and sculpt tighter abs. Push-up bars, on the other hand, also help strengthen your core, chest, arms, shoulders and back in just one single motion.

Meanwhile, hula hoops are fun and exciting when used for aerobic activities. These can also help burn fat and achieve a firm and toned body.

Other workout essentials and accessories like foldable yoga mats, gym balls, sports waist packs and armbands are also available to make your workouts more fun and efficient this summer.

❶

❷

@misscharlize

I

N the mid-2000s, the Vienna-born Cindy Kurleto was an MTV VJ, cohost at ASAP and Eat Bulaga, and consistently on the top 10 of FHM Philippines’s list of the “Sexiest Women in the World.” As Cassiopea in GMA’s Encantadia (2005) and Etheria (2006), Cindy cemented her status as one of the most captivating actresses to ever grace the local screen.

At the peak of her colorful career, Cindy fell in love and left for Peru in 2007. “The person I fell in love with got offered a job abroad and we left for new experiences. We like new adventures. We had that in common, so Peru was our next adventure,” she said via a virtual interview. “The life there was very different, very beautiful. I have lived in Europe and 10 years in Asia, so I was very curious to experience life in another continent and that’s exactly what it was like [in Peru], very different but very nice.”

Being a wife and a mother, Cindy stressed, is a full-time job twice over. “Besides that, I was busy with self-love, meditation, yoga, gym, hiking and also researching on nutrition and what recipes or food that’s good for my body and for my family. It all ties again with being a mother. I think becoming a mother has shifted my priorities. I am not so focused on making a business or making money. I am more focused on creating good memories and a healthy lifestyle not just for myself but for my family. I take that responsibility very seriously.”

But when her father, Friedrich, fell ill, she went home to Austria. “I wanted to be there for him, and I was at the end of his life. We buried him in 2016 and I also gave birth to my second daughter. We are now based in Austria because it’s a very safe place to raise girls, especially. Vienna is a very small city so I can get around quite easily and conveniently,” she shared. It’s also where Cindy was raised single-handedly by her mother, Faustina Verdillo.

After these life-changing events, Cindy began missing the Philippines. And by coincidence, an offer to endorse the new dietary supplement, Myra Ultimate, came her way.

“That’s how it is with the universe. As soon as you throw your energy out there, the same month, the Myra question came in. For me, when things like that happen, when you think of something and then the universe answers you, it’s parang meant to be,” she said.

Myra Ultimate, priced at P20 SRP per soft-gel capsule, is the latest addition to Myra’s range of supplements.

It contains astaxanthin, vitamin E and lycopene, a combination of ingredients that help reduce signs of skin aging (fine lines, wrinkles and dark spots) with continued use, proper diet and exercise. Astaxanthin, as per www.myra. com.ph, is a type of carotenoid pigment from freshwater microalgae. This powerful antioxidant is found to be 6000x stronger than Vitamin C. Cindy remembers Myra when she used to live in Manila and knows of the brand’s previous celebrity endorsers, such as Iza Calzado, Angel Locsin, Judy Ann Santos, Sarah Geronimo, Isabel Oli, Eula Valdez, Jessy Mendiola, Kris Tiffany Janson, Valerie Weigmann, Hillarie Parungao and Gerald Anderson.

“The are all very wholesome and they all fit into the image of what I would like for myself. So I started researching even closer about the ingredients of the new Myra Ultimate and it is exactly what covers my concerns because I am 40 now and I look after my kids a lot, so I don’t have the time to think about myself but I do take supplements. It’s a very easy way for myself to take control over an issue that I was worried about,” Cindy explained.

During what pageant fans call the Dark Ages, when we failed to crack even the semifinal stages at Miss Universe, Cindy was someone I knew who could have represented us well. But beauty contests were not on her radar. Still, she has shared her thoughts on beauty.

ALL ACCESS: WOMEN WE ADMIRE D3

Monday, March 11, 2019

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“I think that beauty is a complete picture. You could be very, very physically attractive but if you’re not satisfied with your life and not content with where you are and you’re not using your full potential, your dissatisfaction will show.

You won’t look beautiful anymore. So, to me, beauty is a full package,” she said.

Cindy eats healthy and lives healthy. She doesn’t smoke.

She doesn’t drink. She gets eight hours of sleep, drinks eight glasses of water. “I exercise, I do yoga, I meditate— that’s what I do to not only be physically beautiful but also feel healthy, to be content with where I am. I think aging gracefully has not only to do with avoiding fine lines but also in being content and knowing that you’re doing your best,” she said.

“We see Cindy as someone who has kept herself youthful and beautiful at age 40. She is a self-assured woman who knows herself and pursues her passion in life. She exemplifies the standout beauty that our brand champions,” said Myra Senior Product Manager Ritz Tan. “Celebrity endorsers can be treated as strategic and effective to promote a product if the endorser matches the brand’s persona and the values that the brand represents.”

Show business beckons again and there’s a slight possibility for a comeback.

“Now that I’m back here and I’m busy and doing things and I get professional appreciation, which does a lot to a person for their selfesteem, I do miss showbiz and I realized that a lot,” Cindy mused. “I love the creative side of acting, acting together with other actors for a project. I love all of that. I’m never gonna say no to that as long as I can accommodate the well-being of my children and my family.” n

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Monday, March 11, 2019

Style

BusinessMirror

www.businessmirror.com.ph

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Today’s Horoscope

NINA GARCIA (from left) Elaine Welteroth, Brandon Maxwell, Karlie Kloss and Christian Siriano attend the season premiere of Bravo’s Project Runway at Vandal on March 7 in New York. AP

By Eugenia Last

CELEBRITIES BORN ON THIS DAY: Anthony Davis, 26; Thora Birch, 37; Johnny Knoxville, 48; Terrence Howard, 50.

HAPPY BIRTHDAY: Lean toward the obvious, and make the most out of what you are blessed with. How you deal with people, as well as how you handle your money and health issues will make a difference this year. This is not the year to take risks or to be a follower.

Focus on what you have, not what you want. Excessive behavior will lead to trouble. Your lucky numbers are 6, 11, 20, 27, 36, 41, 49.

a

ARIES (March 21-April 19): You can be open to new ideas, concepts and opinions, but in the end, you have to do what’s best for yourself. Keep your life simple to avoid the drama going on around you. HHH

Siriano, fresh off Oscar glory, talks ‘Project Runway’

By John Carucci | The Associated Press

N

EW YORK—Christian Siriano didn’t want the tuxedo gown he designed for Billy Porter at the Oscars to shock anyone. He simply wanted to make a bold statement about celebrating identity.

“You should be who you want to be on a red carpet, off a red carpet. Wear what you want to wear, no matter who you are, and I think that’s what that was all about,” Siriano said at a launch party on Thursday ahead of the upcoming 17th season of Project Runway, which premieres next Thursday on Bravo.

The velvet custom tuxedo look for Porter did cause a sensation on social media, but Siriano did not focus on any of the negative reaction, especially when

he heard how it empowered school-age children in search of their identities.

“I was thinking about reading these e-mails from young kids being like, ‘I feel like I can wear what I want to wear to school now because of what Billy did.’

And that’s what it’s all about,” Siriano said.

There are plenty of changes in store at Project Runway. Nina Garcia, who has been with the series for its entire run, returns as a judge. But Siriano, a winner from Season 4, will replace Tim Gunn as show mentor.

Another new face is model Karlie Kloss, who takes on duties as the show’s host, replacing Heidi Klum.

“I think Christian is our superstar from Project Runway. He knows exactly what it takes, what it took, and how it’s going to change your life once you’re done with Project Runway. So, I think he’s a perfect

mentor,” Garcia said.

Elaine Welteroth is another new addition to the show, serving as a judge. The former Teen Vogue editor called Siriano “America’s designer darling.”

“People watched him rise up on this show and they’re invested in him and his career, and so it’s so cool to see this full-circle moment where he comes back, and he can kind of raise up the next generation of Project Runway superstars,” she said.

Siriano, who tried to separate himself from the show while he was building his company, is happy to come home and share his experiences with the young competitors.

“If they have a red carpet challenge, I was like, ‘Well, I just dressed seven people at the Oscars.’ I know something about a red carpet challenge.” n

c

GEMINI (May 21-June 20): Trust in yourself, your ability to survive on your own and your intuitive guide who helps you recognize when someone is taking advantage of you. Put your time and effort into what you believe in and do best. HHH

d

CANCER (June 21-July 22): Consider your options and how best to reach your goal. Call in favors from those you know can offer sound advice and the support you need to be successful. A partnership will help stabilize your position and improve your reputation. HHHH

e

LEO (July 23-Aug. 22): Don’t let stubbornness be your downfall. You may not agree with what others say, but listen to reason and be willing to compromise. How you treat others will make a difference to the outcome of a sticky situation. Avoid petty arguments. HH

f

VIRGO (Aug. 23-Sept. 22): Your imagination will run wild, but that doesn’t mean you have to follow through. Choose what you know you can rely on to get you where you want to go. You will be able to make positive changes and gains. HHHHH

g

LIBRA (Sept. 23-Oct. 22): Flesh out your ideas, and look for a sound way to advance. Keep your distance from people who tend to take advantage of you. Concentrate on what you can do to improve a health, financial or contractual problem. HHH

New men’s streetwear line from Skechers GLOBAL footwear brand Skechers brings a new streetwear collection for men to the Philippines, with the help of three influential personalities who illustrate how the versatile new line fuses casual and athletic in styles, offering fashion and comfort whether at home, in the workplace or at play.

Actor Gerald Anderson already lives and breathes in Skechers.

A look inside his car reveals that he carries as many as six pairs of Skechers footwear wherever he goes. The first ever Filipino ambassador of the brand, Gerald is now joined by two new personalities: footballer Anton del Rosario and tech entrepreneur Ben Wintle for the new Skechers Men’s Streetwear campaign.

A household name in the world of football, Anton has dedicated his life to the sport. He has played for several teams, such as Kaya FC and the Philippine Azkals, before founding the 7s Football League in 2018. Ben Wintle is the founder and CEO of Booky, a restaurant directory app that helps users find information, make reservations and discover promo deals offline, all with the goal of providing Pinoys tangible value.

Finding success in their respective fields of entertainment, professional sports, and the tech industry, as well as their shared ability to balance this with other aspects of their lives, make these three a strong fit to represent the new Skechers Men’s Streetwear line, which showcases a style that easily transitions from work to weekend fashion. The line launches in five colorways across two designs that readily go from the urban landscape to the corporate, and then to dinner and drinks. These modern sporty casual sneakers with faux-leather side panel and heel accents combine total comfort and on-trend modern style. Every pair features Skechers’s Air-Cooled Memory Foam insoles for superior comfort, taking men’s footwear to a new fresh and stylish level.

Shoppers can find the Skechers Men’s Streetwear collection at Skechers retail stores, online at www.skechers.com.ph, as well as at other major retailers throughout the Philippines.

b

TAURUS (April 20-May 20): Concentrate on getting things done. Finish what you start before you present and promote what you have to offer. Planning and fine-tuning will help you eliminate the competition. You don’t have to fight; you just have to be the best. HHH

h

SCORPIO (Oct. 23-Nov. 21): Participate.

What you discover by interacting with unique people will help you make a positive change. Don’t argue or fight a losing battle; follow your heart and do your own thing. HHH

i

SAGITTARIUS (Nov. 22-Dec. 21): Take a moment to weed out the truth. Someone with big ideas will try to solicit you to get involved in a plan that isn’t solid. The information you are given will be exaggerated. Protect your personal information.

HHH

j

CAPRICORN (Dec. 22-Jan. 19): Make positive changes to the way you live. Surround yourself with people who motivate and inspire you to strive for success. An emotional situation should be dealt with peacefully. Getting into an argument will make matters worse. HHH

k

AQUARIUS (Jan. 20-Feb. 18): Stay put until you have the facts. If you act on an assumption, you will end up looking bad and giving someone the leverage to manipulate you or a situation you face. HH

l

PISCES (Feb. 19-March 20): Get the facts before you take part in something you know little about. Knowledge is power, and following through with your plans in the safest way possible will lead to victory. Don’t take chances or show signs of inconsistency or indulgent behavior. HHHH ON Anton: pullover and pants by Topman, Delson Camben in black (P4,195)

ON Ben: coat and trousers by Topman, Delson Camben in black gray (P4,195)

BIRTHDAY BABY: You are creative, forceful and ambitious.

You are passionate and popular.

‘cheers!’ BY MICHAEL TORCH The Universal Crossword/Edited by David Steinberg

ACROSS 1 Indian prince 5 Social class 10 Drag show toppers 14 Carry by truck 15 Ahead, score-wise 16 Off-Broadway award 17 Resistance units 18 “Breakout” console 19 Drone bee’s gender 20 Wines in ceramic urns?

23 Dined 25 Financial ___ 26 Big supporter 27 Gold, silver and bronze 29 Romanov ruler 31 ABC a.m. show 34 Teaser ad 35 Tom yum cuisine 36 Dead-ball and live-ball, in MLB history 37 Septet of poisonous wines?

40 Purposes 41 Coastal raptor 42 “You ___ dead!”

3 Bogey minus one 4 44 Roof problem 45 Popsicle choice 46 Agent, briefly 47 ___ the Bunny (touch-and-feel book) 48 Tolkien’s Treebeard, e.g.

49 Easy-to-swallow wines?

55 Big Australian birds 56 Ancient Aegean region 57 ????

60 “I dare you!”

61 Spirited mount 62 The Big Easy 63 Bravo host Cohen 64 Generic mount 65 Ounce part DOWN 1 P, in Greece 2 Massage reaction 3 Cleared, as a hurdle 4 Plus 5 Ring-tailed mammals 6 Started a poker pot 7 Heineken symbol 8 Whig’s opponent

9 Dumpster fire 10 Wonder ___ (2017 film) 11 Vowel-shaped beam 12 ___ the lily 13 Observes 21 Eagle claw 22 Sound after “hardy” 23 Intensifies 24 Saintly Mother 28 Iowa State city 29 Show gratitude to 30 “The Sweetest Taboo” singer 31 Mourns 32 Shock rocker Marilyn 33 Classify 35 Trillion: Prefix 36 Bible book with a “Z” 38 Sauce-filled pizza style 39 1945 conference site 44 Luau memento 45 False front 46 Oxidized 47 Tissue layers 49 Helen of Troy’s mother 50 “It’s showtime!”

1 ___ pro quo 5 52 Attend 53 Fed. power dept.

54 Wrap tightly 58 Everglades’ state, briefly 59 Thanksgiving tuber

Solution to Friday’s puzzle:

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Monday, March 11, 2019

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Women we admire ALL ACCESS RICKY GALLARDO

rickygallardoTFI@gmail.com

T

HE campaign theme for this year’s celebration of International Women’s Day is “Balance for Better.” It is a yearlong campaign, and will provide a unified direction to guide and galvanize continuous collective action not just for women but for all genders and orientations.

I was having dinner with a few good friends recently and we were talking about the women we admire in our respective industries. I know there are countless names of women who continue to empower and inspire, who don’t tire of making time for selfless and sometimes thankless acts; women who lead, listen and love. Here are just four of these women who have won our hearts.

Oscar-winning actress Brie Larson is the “It Girl” of the film world at the moment, after her movie Captain Marvel opened with amazing box-office results worldwide. It is the first female-led superhero story from Marvel Studios, and Larson is very happy that she was entrusted with this career-changing opportunity. We attended a special screening of the movie at the Red Carpet Cinema of the Shangri-La Plaza, and we enjoyed the experience of watching a well-crafted film in a five-star venue with upgraded world-class facilities.

Larson wowed us in the independent drama Room, which gave her the Oscar Best Actress plum in 2016, and she continues to impress us with her strategic career moves, including a directorial debut, titled Unicorn Store, which will be available on Netflix pretty soon.

During the promotions for Captain Marvel, Larson

reportedly lobbied for more women and people of color to be among those that will be chosen to interview her. She is also very proud that the film features a subplot of a strong bond between two female friends of different color, with actress Lashana Lynch playing her best buddy.

Just last week, some local media personalities had the privilege of sharing a meal with Livan Tajang, the head of the Asean International Film Festival and Awards (AIFFA), who visited Manila to promote the coming festival scheduled from April 25 to 27 in Kuching, Sarawak, Malaysia.

“I always look forward to my annual trip to the Philippines,” she volunteered, flashing her big beautiful smile before adding, “Your country has consistently supported our festival and I am very grateful.”

She singled out the Film Development Council of the Philippines (FDCP) and AIFFA National Festival Director Rain Yamson, two reasons why the Philippines continues to do very well in the festival.

“This year, your country submitted more than 50 titles that will take part in the initial phase of preselection before the festival announces the shortlisted entries that will compete in the finals,” she shared. She also made a formal announcement that Filipino filmmaker Tikoy Aguiluz will be part of the five-man jury that will decide on the winners.

Cinema without borders is what AIFFA is all about. “We share not only stories on the big screen but we also share each other’s small and big successes when an Asean film makes it big universally.”

Tajang added that collaborations have become a reality after the past few festivals, where delegates meet and plant the seeds for future projects with their neighboring countries.

Talk about balance, we are also happy with the work Liza Diño-Seguerra has been doing as head of the FDCP. She is focused, fierce and formidable.

Her dreams for Philippine cinema are big and she is undaunted with the challenges that she and her team continue to face. She balances her work with being a mom to her daughter Amara, and she recently shared her plans of having a baby with her life partner, Ice Seguerra.

CLOCKWISE: Livan Tajang, Brie Larson, Liza Diño-Seguerra, Tessie Tomas

“We have already chosen a sperm donor and have successfully retrieved healthy egg cells from Ice. It’s just a matter of time before we start with the procedure so I can carry them inside me. It’s a longtime dream, and it’s happening soon.”

By the time this comes out, Tessie Tomas might well be on a plane back to her new home in the Isle of Man in England. Tomas is now a resident there, and flies back and forth to visit her mom Laura Hermosa and do some work. She finished the ABS-CBN TV

series The Blood Sisters last year and hopes to do some TV guestings, and if time will allow, perhaps to star in a film.

“I love acting, and will never give it up completely. I love my husband Roger very much and he has made a lot of sacrifices over the years, too. Now it’s my turn. I just have to get used to this new life overseas and make the most out of it.

Everything is about balance, everything is a decision: love, happiness, priorities.” n

D4 Monday, March 11, 2019

Style

www.businessmirror.com.ph

ASIDE from foreign beauty brands, Thailand offers many homegrown skin care and makeup products.

3 nights in Bangkok AND THEN SOME DINNA CHAN VASQUEZ @dinnachanvasquez luckydinna@gmail.com

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ANGKOK is one of my favorite cities in the world. Between 1991 and the present, I have probably been there 30-plus times for work and pleasure. If there is one thing I love about Bangkok, and Thailand in general, is how beautiful the people are.

The beauty isn’t just skin deep. Thai people are beautiful in so many ways other than the physical. They are warm and friendly. I have been to Thailand so many times in the past, and I came back recently (after 20-plus years) to discover that nothing has changed.

I returned to Bangkok upon the invitation of the Tourism Authority of Thailand, which hosted its first experiential tour of Thailand’s wellness and cosmetics companies. The tour focused on Entrepreneurial Tourism.

On the first day, we visited a mall and looked at the makeup counters in the department store.

Like in the Philippines, the department store we visited carried brands from the midrange to luxury, such as Clarins, Guerlain, MAC, Urban Decay, Illamasqua, Dior and many others.

The spaces between counters were spacious compared to those in the Philippines and even other countries.

But our group, which included officials and members of the Chamber of Cosmetics Industry of the Philippines, were there for Thai beauty brands and those were what we looked at.

BSC is a brand that has skin care and cosmetics with prices starting from 550 baht.

Another brand that we checked out was Merrezca, which, according to the sales person,

is fairly new. They only have makeup right now but she said they will carry skin care soon.

We also headed to Boots to look at their offerings, which, to be honest, were quite vast.

Thais, like Filipinos, love whitening products and they had lots of Snail White products, which are very popular here, too.

If you are ever in Thailand, do check out Mistine. SM used to carry this brand. I loved their powder foundation, if I could find their darkest shade. Mistine is available practically everywhere, including Boots.

Madame Heng is another Thai brand that you can find in Boots and other retail outlets. This is another old brand worth checking out.

I remember a friend who works for a multinational saying that their company has personal-care products that are only available in Thailand and not anywhere else because they are such a big market. For example, I saw body washes and lotions from Procter and Gamble and Unilever in special scents and packaging.

Thailand’s beauty and personal-care products market was valued at around $4.7 billion in 2017. This was a 7.8-percent increase over 2016. Skin-care products were valued at $2.2 billion (47 percent of the market). Hair products were valued at $846 million (18 percent of the market). Makeup products were valued at $658 million (14 percent of the market). Personal hygiene products were valued at $752 million (16 percent of the market). Source: Thailand Country Commercial Guide (bit.ly/2XQcHkj).

I tried to find Nuttarin because their extra virgin coconut oil is famous in the beauty world for being chemical-free. It is said to be a great makeup remover. Unfortunately, I couldn’t find it anywhere.

Another product I wanted was Srichand Translucent Powder, which is an “auntie” product from an old brand that has since been refreshed so that it will appeal to millennials and younger people.

Beauty shopping in Bangkok is very satisfying because there are so many things and price points to choose from.

To be continued.... n

BusinessMirror

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HOW WILL WE PREVENT AI-BASED FORGERY?

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By Oren Etzioni

ECENT developments in artificial intelligence point to an age where forgery of documents, pictures, audio recordings, videos and online identities will occur with unprecedented ease. AI is poised to make high-fidelity forgery inexpensive and automated, leading to potentially disastrous consequences.

Automated forgery is already prevalent on social media, as we witnessed during the 2016 US elections. Twitter has uncovered tens of thousands of automated accounts linked to Russia in the months preceding the 2016 election, according to The Washington Post.

Facebook estimated that fake news spread

by Russian-backed bots from January 2015 to August 2017 reached potentially half of the 250 million Americans who are eligible to vote.

When attempting to decide whether an item is genuine, it’s natural to consider its source. Yet it turns out that a web site, an email address and even the origin of a phone call can be easily faked or “spoofed.”

On the Internet, we rely on digital signatures. A digital signature is a computer method (based on cryptography) of ensuring that an item wasn’t tampered with after it was signed.

Automated messages between web sites can also be authenticated by digital signatures, but digital signatures are not widely used to certify the authorship of e-mails, social-media posts, images, videos, etc.

The specter of AI forgery means we need to act to make digital signatures de rigueur as a means of authentication of digital content.

First, we need to certify signatures, which can be done by central authorities, or via more democratic computer methods such as encryption and blockchain. Second, we need to make the acts of signing and verifying signatures as seamless as possible. Signing should be enabled by default in our e-mail software, word processor, smartphone cameras and in any production of digital content. Our browsers, social-media applications and other mediareading software should highlight whether content is signed, and by whom. Finally, and perhaps most challenging, we need to promulgate the norm that any item that isn’t signed is potentially forged.

Oren Etzioni is the chief executive of the Allen Institute for Artificial Intelligence and a professor at the University of Washington.

Monday, March 11, 2019 E1

WHY IS CUSTOMER SERVICE SO BAD? BECAUSE IT’S PROFITABLE.

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By Anthony Dukes & Yi Zhu

T’S a familiar scenario: A service provider fails to live up to your expectations and you feel some restitution may be in order.

Yet when you call customer service to voice a complaint, you’re faced with an automated voice menu, put on hold or told that the agent is not authorized to refund your money.

There’s some evidence that customer queues may be unavoidable at times. Caller complaints tend

to arrive randomly, making it impossible to staff agents to handle unpredictable fluctuations in call volume. But our research suggests that some companies may actually find it profitable to create hassles for complaining customers, even if it were operationally costless not to.

We examined the incentive

Sponsors need to stop acting like mentors

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By Julia Taylor Kennedy & Pooja Jain-Link

PONSORSHIP, or advocacy by senior leaders of rising talent, is a hot topic within corporate America. But something is keeping sponsorship from working. In our recent research at the Center for Talent Innovation, we found that sponsors themselves don’t really understand the role and how to do it well.

We discovered that many who consider themselves sponsors are acting more like mentors. A sponsor has three primary responsibilities: to believe in and go out on a limb for his protégé; to use his organizational capital, both publicly and behind closed doors, to push for his protégé’s promotion; and to provide his protégé with “air cover” for risk-taking.

We also found evidence of “mini-me syndrome”—sponsors reported a tendency to select protégés who reminded them of themselves. When a protégé brings complementary talents to the table, he can expand a sponsor’s capacity to deliver, open doors to new networks and markets, and contribute a valuable management style to the team. Yet sponsors simply aren’t focused on this.

Another important finding was that even

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

practiced imperfectly, sponsorship still carries dividends. Sponsors in our sample were more likely than non-sponsors to report being satisfied with their own advancement, being engaged at work, being able to deliver on “mission impossible” projects and having a bench of talent that expands their skill sets. You can build deep trust with your protégés—and get honest, unvarnished feedback from them. Your protégés—and your commitment to sponsorship—can extend your legacy.

It’s wonderful that sponsorship has taken root in the business world’s zeitgeist. But rather than close the book, it’s time to push harder to ensure sponsors, protégés and organizations all understand this crucial relationship and its nuanced dynamics. When both protégés and sponsors recognize the benefits of playing their roles right, and of partnering across lines of difference, sponsorship’s potential to bring deserving employees of all identities into leadership can finally be realized.

Julia Taylor Kennedy is an executive vice president and director of publications at the Center for Talent Innovation, where Pooja Jain-Link is an executive vice president and director of research.

structures within customer service departments at over a dozen companies in finance, technology and travel services. We found that these companies screen complaining callers by using a hierarchical organizational structure. By forcing customers to jump through hoops, the organization helps curb its redress payouts. We found that most involve at least two levels of agents.

For example, one Indian call center forbade Level 1 agents from offering any monetary refunds. These agents could only offer replacement items or provide information on the status of an order. Any caller insisting on a refund was told to call the US headquarters during

normal business hours, generating additional tasks for any customer seeking more compensation from the call center manager, or Level 2 agent. This design relies on the fact that some consumers are not willing to incur this hassle. When this happens, the company is off the hook for the additional payout.

So what about the idea that frustrating customers has consequences on customer retention and long-term reputation? Some companies have little regard for their reputation, especially those who control a large market share.

Unfortunately, this means companies with few competitors may find it worthwhile to alienate angry customers in order to save on

redress costs.

Of course there may be other advantages to a hierarchical structure. But overall, our research shows that the benefit of curbing redress costs can explain the widespread use of hierarchical call centers at many customer service departments. This may help us understand why some of the most hated companies in America are so profitable, and why customer service, unfortunately, remains so frustrating.

Anthony Dukes is an associate professor at the University of Southern California. Yi Zhu is an assistant professor and Mary & Jim Lawrence fellow at the University of Minnesota.

Fighting legalese with digital, personalized contracts

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By William Pitt

HE cost of legalese in business contracts is high. For some decades, the most commonly touted solution has been the conversion of legalese into plain English. Unfortunately, the magic wand with which to achieve this conversion has proved elusive; companies are understandably reluctant to sacrifice legal certainty for clarity. But there are two problems with legalese that can be solved: length and lack of specificity.

By using technology to personalize and present contracts, businesses can dramatically cut their length and their abstract complexity, making it easier for customers to understand their rights and responsibilities without diminishing legal certainty.

Personalized digital insurance policies improve the situation in a number of ways. First, they strip out the reams of text relating to

coverage the policyholder has not bought, making the policy substantially shorter. Navigation of the policy is also made simpler. The policy language also becomes far less abstract: “your sum insured” and “your deductible” become actual dollar sums and the “policy period” is bounded by actual dates.

With the policy recast as a welldesigned, mobile-responsive web site, its length is less of an obstacle.

The content is all there for a policyholder to browse, search and read in a way that is much more intuitive.

These policies are designed to benefit all the participants in insurance transactions, from the insurer to the customer to the customer’s broker. For small business policies in particular, the broker can ill afford to spend time combing through policy language to answer a customer’s question: It’s easier just to call the insurer. It’s safer too; the broker can’t be held to blame for giving inaccurate advice. But

the back and forth is a drain on everyone’s time.

All the advantages of moving to personalized digital contracts are available to businesses beyond the insurance industry. Their creation requires a hybrid team drawing upon three areas of expertise: legal, IT and marketing. The technology required is not complex, but personalized contracts do have more moving parts than one-size-fitsall contracts. Above all, the design of the digital experience is critical and should be carefully tested with users.

Legalese and lengthy contracts will not be vanquished overnight, but personalization and digitalization can help. Over time, their wider adoption should protect a resource that is precious for any business: customer trust.

William Pitt is chief marketing officer and head of communications at Beazley, a specialist insurer.

E2 Monday, March 11, 2019 • Editor: Efleda P. Campos

Education BusinessMirror

Unilab, MSU-IIT ink MOU on nutraceuticals R&D

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OUTHEAST Asia’s top pharmaceutical company Unilab Inc. has forged an agreement with Mindanao State University-Iligan Institute of Technology (MSU-IIT) for joint undertakings on the research and development (R&D) of nutraceuticals and dietary products.

The signing of the memorandum of understanding (MOU) is a major milestone for the Philippine pharmaceutical sector as it signals the start of a strong collaboration between academe and industry players.

“There has been no real collaboration between the industry and the academe yet. According to USAID, there seems to be a mutual mistrust between the industry and the academe,” said Sukarno D. Tanggol, DPA, chancellor of MSU-IIT.

DLSU hosts intl conference on outcomes-based education

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E La Salle University (DLSU) hosted the 2019 Asean University Network Quality Assurance (AUN-QA) International Conference on March 4 and 5 at the Dusit Thani Hotel in Makati City.

Themed “To be or not to be: Outcomes-Based Education and AUN-QA Quality Culture in Practice,” the conference served as a platform for administrators, educators, and quality assurance practitioners from all over the world to discuss the need to transition from input-based teaching to outcomesbased learning in order to adapt to the needs of a fast-paced and technologically connected society brought about by the fourth Industrial Revolution.

The conference sessions also delved on how to transition from input-based teaching to outcomesbased learning, how to effectively use learning management systems, how to foster deep and active links with stakeholders, and how to generate a principles-based quality culture.

Keynote speakers for the event were former Education Secretary and De La Salle Philippines President Br. Armin Luistro FSC, University College Cork President Emeritus Prof. Michael Murphy, and Vienna University of Economics and Business Dean of Accreditations and Quality Management Dr.Oliver Vettori. Their lectures were “New paradigms for raising both quality and university recognition in the disrupted world of higher education,” “Quality assurance as a surviveand-thrive strategy in a disrupted world,” and “From quality assurance to quality assured: more deeply ingraining a quality culture within our communities” respectively.

For this year’s event, attendees from the Asean region, China, Japan, Europe and Latin America participated in the conference.

The AUN-QA Network is established as “the Asean quality-assurance network in higher education.”

The organization is geared towards promoting quality assurance in higher education institutions, raising the quality of higher education and collaborating with both regional and international bodies for the benefit of the Asean community.

The MOU that Unilab and MSUIIT signed on February 6 at the Unilab Corporate Center in Mandaluyong City effectively broke this so-called mistrust. The MOU is the beginning of a partnership, not just between the two entities, but more so between the industry and academe.

Unilab, being the leading pharmaceutical company in Southeast Asia, has been vigorously pursuing social partnerships, and Unilab Senior Vice President Jose Maria A.

Ochave underscored his strong belief that the industry and academe could work together.

“Many things can happen outside Manila, that’s why Unilab chose MSU-IIT for this partnership,” Ochave said.

He also said they are looking for more R&D-focused universities outside of Metro Manila whose products or services they can help develop so these can be utilized by the people.

“We need more industry-academe collaborations so that the results of government-funded researches do not end up simply gathering dust in the cabinets,” Ochave said.

MSU-IIT, through its Premier Research Institute of Science and Mathematics (PRISM), is engaged in researches and studies on dietary products, nutraceuticals, and Mindanao’s flora and fauna.

Nutraceuticals are food products or parts of a food that help treat or prevent certain diseases.

Through this partnership, Unilab and MSU-IIT will collaborate in the

review and evaluation of research studies with potential commercial benefit.

“We are grateful that Unilab deemed MSU-IIT as a worthy partner. It has been my dream as a chancellor for the university to be known internationally, and this partnership signals that Mindanao has institutions which can be tapped for the development of the country. In particular, PRISM is now envisioning to go over natural products.

Through this partnership, not only is Unilab helping MSU-IIT in data, but we are also going to be able to help the communities in Mindanao, because there are many researchable products in MSU-IIT and in the areas nearby,” Tanggol said.

Tanggol is optimistic that this partnership will also provide more space for MSU-IIT researchers to spread their wings.

“This partnership also aims to show there is a productive and prosperous career in science and technology. And in Unilab, there is a big need for science and tech graduates,” Ochave said.

Creba sponsors real-estate appraisal course

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HE Chamber of Real Estate and Builders’ Associations Inc. (Creba), in consortium with the De La Salle College of Saint Benilde School of Professional and Continuing Education (DLS-CSB SPACE), will open its certificate course “Highest and Best Uses for Real Estate” on March 30.

The course is the fourth of six modules under the Executive Diploma Program in Real Estate Management (Edprem) offered by the two leading institutions since 2002.

Classes will be held at the ninth floor of the CSB School of Design and Arts Campus located at Pablo Ocampo Street, Malate, Manila, from 1 p.m. to 8:30 p.m. and will run for four consecutive Saturdays until April 27, 2019.

Creba, headed by National President Noel Toti M. Cariño, is the Philippine umbrella organization of the real-estate and housing industry composed of property

developers, builders, contractors, suppliers and manufacturers of construction materials, real-estate service practitioners and other professionals and entities engaged in over 70 allied fields.

Course Director is Carolina Q. Alvarez, immediate past president of the Philippine Association of Realty Appraisers.

Creba National Chairman Charlie AV Gorayeb said the first two Saturdays will cover Introduction to Property Valuation, Ethics and Valuation Principles; Philippine Valuation Standards; Economic Factors affecting Value; Highest and Best Use of Land; Market Value and Non-market Value; Other Valuation Techniques; Real-Estate Site Identification; and Real-Estate Market Analysis.

For the third and fourth weeks, courses offered include The Appraisal Process; Approaches to Value (Market Data, Cost and Income Approach); Valuation of

Lease Interest, Condominiums and Office Buildings; Legal Considerations in Appraisal; and Practical Valuation for Expropriation Proceedings.

Program Director Avelina P. Acuña said the other five courses tackle effective tools for real-estate marketing; land laws and property titling; planning and development; financial analysis and management; and project feasibility studies.

Participants are awarded certificates for each course module attended, while a diploma is earned by successfully completing all six Edprem modules.

Special discounts are available for Creba members, government personnel, DLSU alumni or early bird payments until March 16, 2019. For reservations, please call telephone nos.: 400-7405 and 400-5425 (CSB), 373-2270 to 75 (Creba), or e-mail to creba_national@yahoo.com or space@benilde.edu.ph.

Teaching mothers the value of human milk in children’s devt

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EACHING local women the innate richness of human milk in the mental, physical and emotional development of children was one of the initiatives launched by Unicef in the aftermath of the devastation that Supertyphoon Yolanda brought. The Eastern Visayas Regional Medical Center (EVRMC) and UN children’s agency, Unicef, recently inaugurated one of the largest human milk banks in the Philippines. The EVRMC is one of two hospitals in the area where human breast milk is stored for contingencies.

After Yolanda (international code name Haiyan) devastated the Philippines in November 2013, EVRMC, the only government tertiary training hospital in Region 8, was severely damaged. The typhoon and destruction of health facilities became problematic for a region that already had high levels of malnutrition even before the disaster.

Unicef established an office in Tacloban City immediately after the typhoon for two years and included within its response long-term recovery support and to build back better to promote sustainability. This included strengthening the cold chain to protect vaccines, establishing a Youth Hub, constructing the first disasterresilient evacuation center and training of teachers on Education in Emergencies, among others.

“Unicef remains fully committed in supporting our partners affected by Yolanda. Five years after the typhoon, we are encouraged to see that Tacloban City and the rest of the region continues to rise, full of hope and promise,” Unicef Philippines Representative Lotta Sylwander said. EVRMC is the second human milk bank Unicef supported, the first one being Zamboanga City Hospital. EVRMC-HMB

LOPEZ-SUPPORTED YOUTH ORCHESTRA HOLDS B.G.C. CONCERT Members of the Orchestra of the Filipino Youth (OFY) hold their first concert of 2019 at the Sun Life Amphitheater within the Bonifacio Global City Arts Center, Taguig City. The orchestra is the performing arm of Ang Misyon, a nonstock corporation supported by the Lopez Group of Companies-ABS-CBN Corp., First Gen Corp. and First Philippine Holdings Corp. The OFY repertoire showcased during the performance sponsored by Sun Life Foundation included classic pieces by Wagner, Handel and Schumann, as well as local songs such as Rey Valera’s “Kahit Maputi Na Ang Buhok Ko,” one of the OFY’s crowd favorites. In inset photo, Federico “Piki” Lopez (second from left), president and cofounder of Ang Misyon, and his wife Monina (left) share a light moment at the concert with Benedicto Sison (third from left), Sun Life Foundation trustee, and Alex Narciso (right), Sun Life Foundation president. OFY consists of young music scholars, many from less-privileged families and handpicked for their talent, passion and need. Since its formation in 2012, Ang Misyon has helped more than 900 scholars in its continuing effort to provide programs and services, such as professional music lessons and materials based on Ang Misyon’s curriculum, instrument support, opportunities for local and international performances, and service as junior mentors to younger scholars. The musical curriculum is also complemented by values formation and a counseling program. In 2018, the OFY had international performances at the Qatar National Library and the Katara Opera House in Qatar. Local OFY events last year included performances at Robinsons Galleria, ShangriLa Mall, Power Plant Mall and at the Qatar National Day in Makati Shangri-La. is unique because it is the hub of relief and rescue efforts in a typhoon-prone region. The EVRMC-Human Milk Bank has the potential to reach babies in need of breast milk in six provinces, seven cities,

136 municipalities and 4,390 barangays.

It was already able to provide 20 liters of breast milk to help babies after a landslide in Biliran in 2017 caused by Tropical Storm Urduja.

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Miriam College, Goldsmiths partner for niche graduate program in PHL

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NICHE graduate degree program called Designing Education jointly developed by Miriam College (MC) and Goldsmiths, University of London under the Commission on Higher Education-UK linkage was formally launched recently at the Miriam College-Henry Sy Sr. Innovation Center.

Present at the event were Goldsmiths’s Warden Patrick Loughrey who flew in from London for the event; Miriam College President Dr. Rosario O. Lapus; UK Deputy Head of Mission Alastair Walton Totty; and British Council Head of Education Lotus Postrado.

Also present were the first cohort of students taking up the niche program. They started classes in January and are set to leave for London in May for a study tour. Most of them are under the scholarship granted by the Commission on Higher Education (CHED).

Designing Education is a unique dual-awards graduate degree program made possible by the efforts of CHED and the British Council as they brought together Philippine and British school institutions to develop niche programs that otherwise would not be available for students in the country.

The program fuses the theory of design thinking—a design process that uses empathy, ideation and experimentation to come up with human-centered solutions to complex problems—and education.

Sofia de Guzman, one of the students of the program who is also currently teaching senior highschool students at Miriam College, said, “In the past several weeks, we have experienced productive failure, which is leading us to develop the mindsets of designers. I am sure my classmates will agree with me that we have learned more about empathy, optimism and ambiguity from the activities. The program does not simply push us to attain another degree in graduate school, but is designed to guide us in finding inspirations and ideas so we could create prototypes that will truly have an impact on teaching and learning.”

The program has two components, a Master of Arts in Designing Education, or MADE, and a requi-

site Philippine-based post-graduate Certificate in Designing Education or PGCERT, that will be taken up at Miriam College.

Part of the unique learning context of the program is a 10-day London-based field study and expert mentoring, 60 credits of recognition towards a full British master’s degree, and a four-month immersion in the UK while pursuing the master’s degree.

“We hope this exciting partnership will help inspire and equip teachers looking to introduce design thinking into the K-12 curriculum.

Alongside our partners at Miriam College, we look forward to providing Filipino educators with resources and pedagogies that support risk-taking and creativity through a design-led approach to learning,” said Patrick Loughrey, warden of Goldsmiths.

The venture is anchored on both institutions’ shared culture of teacher education: Goldsmiths, in its expertise in fusing design and education, and in Miriam College’s 92 years of expertise in the area of education and on its recognition as a CHED-designated Center of Excellence in Teacher Education.

“We want to cultivate a culture of design thinking among teacher education institutions that will directly influence the practice of education in schools and ultimately, in Philippine society,” Dr. Lapus said.

“We have chosen to partner with Goldsmiths University of London because we have a common vision of education—one that puts creativity, wonder and initiative at the heart of the learning process. The program is called Designing Education, for the soul of the program lies in human design: it brings the focus of education back to the learner.”

The partnership with Goldsmiths is spearheaded by the MCHenry Sy Sr. Innovation Center through the British Council and CHED’s transnational education (TNE) program. TNE offers disciplines currently not available in the country.

Miriam is the only college among a roster of top Philippine universities selected for this UK-CHED linkage.

New Rules of the 2019 Election Game

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HOSE who really want to win the election battleground must know the new rules set by the Commission on Elections (Comelec).

With the advocacy to educate all candidates, campaign managers, party-list groups, poll watchers, supporters, lawyers, accountants, sponsors, stakeholders and voters, the Center for Global Best Practices (CGBP) will host two pioneering programs entitled “2019 General Instructions on Automated Elections” to be held on Friday, March 29, 2019, at the Manila Marriott Hotel, Pasay City, and “Best Practices on How to Prepare your Statement of Contributions and Expenditures” to be held on Thursday, May 30, 2019, at the Edsa Shangri-La Hotel, Mandaluyong City.

The 2019 General Instructions (GI) on the Election Automation Law recently released by Comelec is considered the bible of rules that must be followed by all candidates, poll watchers, lawyers and other practitioners in the campaign and election exercises. In any question of the law and procedures, this is the official reference for all those actively seeking public office and for those in the service of protecting votes and ballots. This is the only program that will lay down its entire blueprint and will provide you with the complete guide on its implementing rules and regulations (IRR) on the poll automation law. When disputes or irregularities arises on election matters, you can invoke the GI. Mastery of its content is valuable for those participating in this election.

Learning “How to Prepare your Statement of Contributions and Expenditures” will eliminate the dangers of perpetual disqualification by Comelec. Material errors or nonsubmission

of SOCE is a ground for such penalty. A winning candidate cannot assume office without submitting a SOCE in its proper form and substance. This one-day training will be your definitive guide to the Campaign Finance Regulations for the May 13, 2019, elections. We will teach you how to prepare the 11 forms required for SOCE. Attendees will gain valuable insights on what is lawful and unlawful campaign paraphernalia, the limits of expense, time and space for political ads such as billboards, streamers, movies, documentaries, radio, TV, newspaper and other social media that should all be reflected in your SOCE. Registration is open to the general public. CGBP is accredited by the Civil Service Commission. Attendees from the government can earn points for their career advancement and are exempted from the P2,000 limit when attending training conducted by the private sectors based on DBM Circular 563 dated April 22, 2016. Interested participants are encouraged to avail themselves of the early payment savings and group discounts for three or more registrants. Preregistration is required.

For details, check www.cgbp.org. This web site contains CGBP’s complete list of best practices programs, including “How to Prepare Unsolicited Proposals for Government Projects,” “What You Must Know About the Procurement Law,” “How to Prepare Your Bidding Documents,” “PPP Certification Course,” “How to Joint Venture Effectively with the Government,” “Best Practices in Business and Government Protocol,” “How to Avoid COA Disallowances” and many more. You may call landlines in Manila (+632) 842-7148/59 and (+632) 556-8968 or 69.

www.businessmirror.com.ph

Marketing BusinessMirror

Editor: Efleda P. Campos • Monday, March 11, 2019 E3

SMALL DATA AND OUR PR LIFE B

PR Matters

By Bong R. Osorio

IG data is a hugely important trend that we must monitor. It is a term that describes the large volume of data—both structured and unstructured—that swamps a business on a day-to-day basis. But it’s not the amount of data that’s critical. It is what organizations—including PRbased operations—do with the data that matters.

Big data can be analyzed for insights that lead to better decisions and strategic business moves. Branding expert and best-selling author Martin Lindstrom, however, gives a different answer. To him, it’s small data. In a world obsessed by the power of Big Data, he works like a modern-day Sherlock Holmes, collecting tiny clues to help solve a stunningly diverse array of challenges. He describes the task as that of “a detective whose goal is to create a narrative.”

In his tome, Small Data: The Tiny Clues That Uncover Huge Trends, Lindstrom provides two broad lessons.

One is the deliberate kind; the other is accidental. The deliberate and purposeful lesson says that we must not overlook momentary, but educational signs of human behavior in our hurry to download and analyze ever larger throngs of hard facts or cold information. As the author wrote, “If we want to glean real insights, big data and small data should be partners in a dance.” The accidental, fortuitous lesson states that companies are still ready to give a large expanse of time, effort and presumably, money to planning and executing programs on how to attract their next customer.

One thorough Lindstrom investigation delved on how to design a car for the Chinese market, which entailed “a global study of doors” and a Lego-based experiment with children on three continents about their understanding of speed. Another assignment took Lindstrom deep into Mumbai and New Delhi, to explore the politics of the modern Indian family, for a global food maker that wanted to work out why its popular breakfast cereal was losing market share.

Lindstrom’s research derives certain principles from anthropology and ethnography. As the intro to the book said, he spends 300 nights a year overseas, closely observing people in their homes. His goal is to uncover their hidden desires and turn them into breakthrough products for the world's leading brands. Lindstrom connects the dots in his globetrotting narrative that will fascinate not only marketers and brand managers, but anyone interested in the infinite variations of human behavior. Here are interesting discoveries that we can appropriately apply in our PR life:

Insights from a tube of toothpaste

IF someone crushes a tube of toothpaste and tosses it away without a cap, experience tells us they are prudent about saving money, though at the end of the day, they will spend money on themselves, as if to compensate for their earlier inattention.

Consumers who discard a toothpaste tube with its cap screwed down tightly seldom allow themselves to relax, and are reluctant to expose who they really are, or to indulge themselves with a luxury. Consumers who throw away a half-full toothpaste tube are, in general, less secure than people who wait until the tube is depleted.

Our favorite sport defines who we are

A STUDY carried out by Mind Lab found out that bicyclists are “laid back and calm” and less likely than runners or swimmers to be stressed or depressed. Runners tend to be extroverted, enjoyed being the center of attention and preferred “lively, upbeat music.” Swimmers, the study concluded, were charitable, happy and orderly, whereas walkers generally preferred their own company, didn’t like drawing attention to themselves and were comparatively unmaterialistic.

There are 10 basic common attributes religions have in common

IN order of importance, he found that these features include: A sense of belonging; storytelling; rituals; symbols; a clear vision; sensory ap-

peal; power from enemies; evangelism; mystery; and grandeur. When you think about the world’s most powerful brands—among them Apple, Nike, Harley-Davidson, Coca-Cola, Lego—you realize they all make use of some, if not all, these pillars.

The author discovered these data after interviewing 14 leaders of the Catholic, Protestant, Buddhist and Islam religions.

data is everywhere, if we know where to look.

Most people are rarely inside the present moment

“BEING present” is important. We spend a disproportionate amount of time plotting the future or revisiting past events. But when we swim or shower or take a bath, we have little choice, but to position ourselves in the present, giving our thoughts room to float and wander.

Creativity comes out of being bored because that’s where you’re forced to create a story. But it also allows us to be observant, to be present. From a PR perspective, that lack of presence means that we don’t see things around us, and we missed out on the relevant, insight-filled small data we will need to do a great PR job.

People have two ages: chronological and emotional

MEN typically conceal evidence of their younger selves in drawers or buried inside online folders, whereas women are less embarrassed about publicly showcasing their younger selves and express it openly.

The story of two scripts—one blue, one green

MOST remember Hitchcock as a skilled storyteller, but what few know is that the director shot his movies using two separate scripts.

The first, known as “the Blue Script,” was entirely functional. In it were all the tangible onscreen components, including dialogue, props, camera angles and set descriptions. The second script, which Hitchcock referred to as “the Green Script,” chronicled in fine detail the emotional arc, or “beats,” of the film he was shooting.

Hitchcock relied on both scripts, but the Green Script reminded him how he wanted moviegoers to feel and at what point.

In doing PR, we must have an ‘entry point’

IT refers to those times in our lives when our identity is either challenged or transformed, among them marriage, pregnancy, first parenthood, buying a home and the empty nest syndrome. During these periods, audiences are especially vulnerable to new perspectives, as well as new narratives and offerings. We should always find an entry point, and use that to get into the heart and minds of our publics.

Bringing a new element in a room could change the course of a PR conversation

IT can also change the narrative—to either a rational or emotional one.

This insight have strong ramifications for rebranding. What audiences say about a brand can be controlled and in some cases, reduced to a preprepared pitch. In doing PR a brand, this is critical. Imagine: 10 words that represent the heart, soul, and essence of a brand are no longer controlled by print ads or TV commercials, but by audiences who are strongly affected by “influencers” and by “aspirations.”

Assimilating universal ‘moments’ in your PR story can bring wonders

THIS is very much like Kodak owning the idea of taking photographs, America Online having “You’ve Got Mail,” Apple holding on to the left-toright “Slide to Unlock” finger-swipe concept, Volvo holding on to “safety,” and Google preserving the “search” image. We must understand the essence, and the weight, of every single moment between our PR product and the publics we are targeting it to.

Our perception of the world is almost always local

IT is focused exclusively around ourselves, neighborhoods, traditions and beliefs. But who influences us to support a certain product helps us form an opinion or exposes us to a brand we later use ourselves—a wrist watch, a musical genre, a facial moisturizer, a wine label? It’s not something we often think about, but when we ask this question to people online and offline, the answer is invariably pointing to celebrities.

Every culture has its own default topics of conversation, a default scripts of subjects, ranging from the weather to sports to food

WHEN two people meet for the first time, what do they talk about? How do taxi drivers greet passengers across the world, and what do they discuss during the ride? What do neighbors say when they meet in the lobby or on the sidewalk, or mothers when they meet other mothers in the

park? People exchange compliments, or talk about their favorite topics, but when they deviate from the script, what causes them to stray are the objects surrounding them.

Selfies, it seemed, were even more important than the event or moment they were supposed to memorialize

A SELFIE can tell us more about a person than anything inside a meticulously arranged bedroom. When a girl shows another girl a photo on a smartphone, the first few things she seeks out are, in order of importance: Am I in

this picture? How do I look? Who is standing beside me? Does the person standing beside me in this photo lend a halo effect of popularity, or is standing beside this person a social liability?

The faster we go, the slower, in some respects, we will become

AS always and whether they know it or not, human beings seek balance. It may not always be conscious, but unconsciously, we are all seeking to redress acceleration with idling, velocity with patience, chatter with quiet.

How do we know this? Because small

PR Matters is a roundtable column by members of the local chapter of the United Kingdom-based International Public Relations Association (Ipra), the world’s premier organization for PR professionals around the world. Bong R. Osorio is a communications consultant of ABS-CBN Corp., SkyCable, DentsuAegis Network, and government projects among others, after retiring as vice president and head of the Corporate Communications Division of ABS-CBN. We are devoting a special column each month to answer our readers’ questions about public relations. Please send your questions or comments to askipraphil@gmail.com.

Perspective BusinessMirror

E4 Monday, March 11, 2019

www.businessmirror.com.ph

A record-breaking US trade deficit: Does it really matter?

IN this March 5, 2019, file photo, the Cape Kortia container ship heads into the Port of Tacoma in Commencement Bay. The US trade deficit jumped nearly 19 percent in December, pushing the trade imbalance for all of 2018 to widen to a decade-long high of $621 billion. The gap with China on goods widened to an all-time record of $419.2 billion. AP/TED S. WARREN

W

By Josh Boak | The Associated Press

ASHINGTON—The US trade deficit reached its highest sum ever last year, defying President Donald Trump’s efforts and promises to shrink it through his economic policies.

The irony is that those policies likely contributed to the deficit.

Trump entered office insisting that decades of trade gaps had crushed the US economy and that he would forge new agreements that would diminish the deficits.

It hasn’t happened.

The government said Wednesday that the US trade gap in goods and services reached $621 billion last year, its highest total since 2008. And the US deficits in goods with China and Mexico surged to record highs.

As president, Trump’s signature effort to stimulate US growth—deficit-funded tax cuts— likely helped fuel the willingness of American corporations and households to spend, including on imported goods. That is especially true at a time when much of the rest of the economic world has weakened and is less likely to buy US goods. The result has been more imports than exports.

What’s more, the tariffs Trump imposed on steel, aluminum and hundreds of billions’ worth of Chinese goods likely contributed to the trend: During 2018, American companies that import goods from China appeared to accelerate their spending on them to avoid Trump’s future import taxes.

Here is a look at the trade deficit and its causes and effects:

WHAT IS THE TRADE GAP?

TRUMP often misrepresents the trade deficit. He has frequently labeled it an outright economic loss.

“We’ve been losing, on average, $375 billion a year with China,” the president said in February, referring to the 2017 deficit in goods between the United States and China. That imbalance surged to $419.2 billion in 2018 under Trump’s watch.

Yet the trade gap isn’t an out-

right loss. It simply reflects the greater value of what the United States imports compared to what it exports. And it’s not necessarily a cause for concern.

Last year’s trade deficit paid for smartphones, kitchen appliances, clothing, auto parts and a whole range of goods that were made more affordable because of China’s lower manufacturing costs. Those lower costs have indeed contributed to the loss of US factories to foreign countries and devastated vast swaths of the industrial Midwest.

But lower import prices have also benefited companies and millions of consumers in ways that boosted the US economy—70 percent of which consists of consumer spending. The ability and willingness of Americans to spend, including on imports, is generally a healthy economic sign.

In its relationship with China, a bigger problem for the US economy than trade deficits is the widespread suspicion that Beijing steals intellectual property and requires American companies that operate there to turn over technology secrets—two issues at the heart of the administration’s negotiations with Beijing. Such policies weaken the ability of US companies to compete and inflict billions in losses, according to a report last year by Lee Branstetter, an economist at Carnegie Mellon University and a fellow at the Peterson Institute for

International Economics.

ARE TRADE GAPS BAD FOR THE ECONOMY?

NOT always.

In the accounting for the nation’s gross domestic product—the broadest gauge of the economy— a trade deficit does subtract from growth. But last year’s higher US trade gap resulted mainly from the economy’s strength, notably robust spending on imports.

Indeed, the last time the trade deficit narrowed by a significant amount, it was because the economy was mired in a devastating downturn—the Great Recession, which lasted from late 2007 to mid-2009. The trade gap in goods sank 38 percent in 2009 to $503.6 billion. By contrast, in 2018, after years of economic expansion, the gap in goods had swollen to a record $878.7 billion.

DID ANYTHING ELSE WIDEN THE TRADE GAP?

KIMBERLY CLAUSING, an economist at Reed College, points to a sharp increase in government borrowing. The tax cuts that Trump signed into law reduced federal revenue by 1 percent of GDP. This meant the United States had to resort to additional borrowing to help drive growth.

Trump had pledged both faster growth and lower trade deficits.

But his impulse to achieve faster

growth through government borrowing contributed to a wider trade gap.

“A budget deficit is the public sector adding additional borrowing to the US economy, making the gap between our spending and our earning even larger,” Clausing said.

That increase contributed to the wider trade gap.

Another factor in the increased trade deficit has been a stronger dollar, another sign of economic health. A higher-valued dollar, compared with other nations’ currencies, makes the goods that Americans import relatively more affordable and our exports comparatively more expensive overseas. That disparity has helped drive up demand for imports over exports.

WHY DIDN’T TRUMP’S TARIFFS CURB THE TRADE DEFICIT?

RESEARCHERS at the New York Federal Reserve examined this issue last year. Tariffs and countertariffs make goods more expensive. This can lead to declines in both imports and exports. When both imports and exports drop, the trade deficit can’t easily improve.

And Trump’s threat of tariffs probably worsened the situation last year, said Stephen Stanley, chief economist Stephen Stanley at Amherst Pierpont Securities, The White House initially charged a 25-percent tax on $50

billion of Chinese imports in June.

In September, it imposed a 10-percent tax on an additional $200 billion of Chinese goods. And it threatened to escalate that tax to 25 percent at the start of 2019 and essentially impose tariffs on all Chinese imports unless progress was made in trade talks.

Trump suspended the additional tariff hikes. But his threat likely caused importers to bring more of their goods into the United States before January to avoid the risk of a higher tax, Stanley said.

This action turned out to inflate the trade gap.

HOW DOES THE TRADE GAP AFFECT ORDINARY PEOPLE?

ON a day-to-day basis, not very much. The US economy amounts to about $20 trillion a year, a sum so huge it is difficult to fully fathom.

The trade gap last year was equal to only about 3 percent of that sum.

But trade battles do have consequences. Trump’s tariffs on imported washing machines, for example, caused that sector’s prices to shoot up. And businesses that depend on Chinese imports say they’re grappling with higher prices.

In the view of the vast majority of economists, trade wars of the kind Trump has instigated benefit no one in the long run. And by themselves, they don’t typically produce any meaningful change in the trade deficit.