Businessmirror march 27, 2018

After Cambridge Analytica, data privacy is a must

By Henry J. Schumacher

P

olitical power grows out of the barrel of a gun, Chairman Mao taught us. Nowadays, it is just as likely to derive from the click of a mouse.

OLIVIER LE MOAL | DREAMSTIME.COM

The latest revelations in the Observer and the New York Times about the role of Cambridge Analytica in hacking the 2016 United States presidential election shine an unforgiving light on the potential abuse of computational propaganda and mass manipulation.

By allegedly accessing the profiles of 50 million Facebook users, the data-mining company could infer the political preferences of US voters and help target personalized messages at them to the benefit of the Republican candidate Donald J. Trump.

“You are whispering into the ear of each and every voter,” said Christopher Wylie, a data scientist who blew the whistle on Cambridge Analytica’s operations that had enabled political actors to whisper different messages into different ears.

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Tuesday, March 27, 2018 Vol. 13 No. 167

Exports feared to take hit from US-China trade war I

By Elijah Felice E. Rosales

@alyasjah

n every war, there is bound to be a collateral damage. And in the looming trade war with China and the United States as the chief protagonists, Philippine exporters could just end up as among the unintended casualties.

With this, the Semiconductors and Electronics Industries in the Philippines Inc. (Seipi), the association overseeing the country’s top merchandise exporters, said

the government should be ready to launch interventions that will protect the sector.

Seipi President Danilo C. Lachica said the feared trade war between

Getting closer to industrialization dream

LACHICA: “There could be impact, but it would be difficult to quantify at this time.”

the US and China could really take its toll on the Philippines’s electronics exports. The crucial part to guard right now, he noted, is how China will respond to the United States’s recent trade policies.

“There could be impact, but it

Manny B. Villar

THE ENTREPRENEUR

T

he good news: Net foreign direct investment (FDI) inflows increased by 21.4 percent to a record-high $10 billion in 2017, compared to $7.9 billion in 2016.

According to the Bangko Sentral ng Pilipinas (BSP), investors continue to view the Philippines as a favorable investment destination on the back of the country’s sound macroeconomic fundamentals and growth prospects.

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Puno sees federalism shift done by 2022

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ZAPANTA: “Neither is better than the other. The first is near impossible, and the second is insufficient, like a band-aid measure.”

@lorenzmarasigan

he private sector has offered to step in and fix the congestion problems at the country’s main gateway, with two groups proposing to shoulder billions of pesos to redevelop, modernize and expand the Philippines’s main air hub.

Unfortunately, the two proposals are not enough to actually remedy the issues hounding the Ninoy Aquino International Airport (Naia), at least according to Avelino L. Zapanta, a known Filipino commercial-aviation expert and university professor.

For him, the proposal of the Naia Consortium—a group of seven of the largest Filipino conglomerates—is not viable, while the proposal of Megawide Construction Corp. and its Indian partner GMR Infrastructures Ltd. is a bit lacking.

“Neither is better than the other.

The first is near impossible, and the second is insufficient, like a band-aid measure,” Zapanta told the BusinessMirror.

Naia Consortium’s P350-billion proposal involves expanding and interconnecting the existing terminals of the Naia, upgrading airside facilities and the development of commercial facilities.

Divided into two phases, the group’s proposal aims to increase the capacity of the Naia to about 100 million passengers per year.

It also plans to construct a people mover that will link the Naia’s terminals to existing transport systems in Metro Manila.

Actual work will take 24 more months for the first wave of immediate expansion. Further expansions are planned to meet projec ted pa ssenger dem a nd moving forward. More expansion will follow to meet the expected growth in tourism, business and the economy. In 2017 the four Naia terminals, designed to handle only 31 million, accommodated 42 million.

The offer carries a concession period of 35 years.

On the other hand, Megawide’s offer involves a more affordable $3-billion price tag with a shorter concession period of 18 years.

The multibillion-dollar offer is divided into several phases, of which the first six years of the operations would focus on the expansion of the existing terminals, the optimization of the current runways and the capacity expansion of the whole airport complex.

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TWO PROPOSALS FOR NAIA UPGRADE FAIL TO IMPRESS FILIPINO AVIATION EXPERT

By Lorenz S. Marasigan

2016 ejap journalism awards

By Bernadette D. Nicolas @BNicolasBM

C

House Bill (HB) 7303, or the Act Instituting Absolute Divorce and Dissolution of Marriage in the Philippines. However, this dissolution of a marriage has economic consequences, particularly because of the so-called alimony, or the one-time or monthly allowance for support by a divorced person from a former spouse who is usually the main financial provider during the marriage.

onsultative committee (Con-com) Chairman and former Chief Justice Reynato S. Puno is confident that the country will be able to complete its federal transformation by 2022 with the right model to follow.

“By 2022 we should have already federalized, meaning we will no longer have a unitary government.

We will have a federal government where the powers of the government had already been allocated both to the federal government and to the states and/or the constituent units,” he said on Monday.

Although a model is still being developed, Puno said they are looking at a gradual and evolving shift to federalism, taking into consideration the readiness of the constituent units.

With this, the Con-com is asking concerned government agencies to submit fiscal data that would help determine the capacity of autonomous regions to make the transition.

“Depending on this fiscal data, we shall be constructing the model that should be ideal for the Philippines,” Puno said. “The process will depend on the standards that will be agreed upon in this proposed

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NEDA IN ‘MISSION: PHL’ Socioeconomic Planning Secretary Ernesto M. Pernia (seated, right) and BusinessMirror Publisher T. Anthony C. Cabangon (seated, left) finalize the memorandum of agreement to formalize the participation of the National Economic and Development Authority (Neda) in “Mission: PHL,” the BusinessMirror’s Envoys&Expats Awards. With the recognition awards night set late-November, Mission: PHL celebrates the role of nations as partners in Philippine development. Also in photo are (standing, from left) Michael Policarpio, Envoys&Expats section editor; Psyche Roxas-Mendoza, Philippines Graphic managing editor and special projects director for Mission: PHL; and Hazel Iris S. Baliatan, officer in charge, director, public investment staff, Neda. NONOY LACZA

Alimony, abuse, women’s rights and other divorce issues

By Cai U. Ordinario

W

@cuo_bm

hen couples say “I do,” the assumption is that their bliss will last until death. But, if someone is in a bad marriage, death can come every day, and in many forms.

An unhappy couple living under the same roof, needless to say, is problematic for them and their children.

The emotional torment that inces-

26 percent The percentage of women that suffered physical, sexual or emotional violence from their husband or partner sant fights create can cause the entire household undue stress and agony.

This is part of the rationale behind

n japan 0.5001 n UK 74.0112 n HK 6.6708 n CHINA 8.2899 n singapore 39.8099 n australia 40.3055 n EU 64.6531 n SAUDI arabia 13.9576

Source: BSP (26 March 2018 )

BMReports BusinessMirror

A2 Tuesday, March 27, 2018

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Exports feared to take hit from US-China trade war Continued from A1

would be difficult to quantify at this time. China is one of the big export destinations and import origins,” Lachica told the BusinessMirror.

I n s pit e of t he e x p e c t e d collateral damage, Lachica said he has yet to hear from the government of any interventions it can do to protect the electronics industry from the impact of the looming trade war. “Haven’t heard,” he said.

As the world awaits how China will punch back at the US, Lachica argued there is no need yet for the electronics industry to recalibrate its growth prospect of 6 percent this year. “The trade-policy barriers have not been formally implemented, [so] we will not downgrade our 6-percent to 8-percent growth [target],” he added.

Donald G. Dee, president of the Employers Confederation of the

Philippines and a former special envoy for trade negotiations, said protectionist policies straight from the White House can affect the growth prospect of the country’s electronics industry.

“The problem is not the trade war between the US and China, [but] the protectionist policy of [US President Donald J.] Trump,” Dee told the BusinessMirror.

Trump has recently enforced stiffer tariffs on steel and aluminum products in a move that further emphasized the United States leader’s protectionist stance. He authorized the imposition of higher tariffs on steel at 25 percent and aluminum at 10 percent in spite of strong opposition from his fellow Republicans and Washington’s trading partners.

The move was seen to impact global trade of steel, as the US is the world’s largest steel importer.

In 2016 it accounted for about 8

percent of steel imported globally, with the volume it imported at least 15 percent higher than that of Germany and South Korea, second- and third-largest steel importers, respectively.

With the string of protectionist policies implemented by Trump, Dee said there could be a decline, not only in investments from the United States, but also in its imports of electronics.

“This will affect US investments, [and] it will also affect [our] electronics exports,” he added.

“Actually, our electronic chips go into the finished products of Malaysia, India and other countries. If the US reduces its purchases from these countries, then we will get affected,” Dee said.

Last year Washington is Manila’s second-largest importer of electronic products at 12.66 percent, overtaking Beijing at 12.61 percent. Electronics exports

ballooned to a record-high $32.7 bi l lion in the prev ious year, contr ibuting more t han ha lf of the countr y’s merchandise exports that grew by 9.53 percent to $62.87 billion.

Moreover, the electronics industry is banked on by the government to drive the country toward its target of hitting at least $122-billion export receipts in 2022. This year Seipi is optimistic that electronics’ share in the country’s total exports will grow by 6 percent.

Beijing is not taking Washington’s economic barriers sitting down, and vowed to retaliate if the US carries on with its plan to impose tariffs on more Chinese goods. The world’s two largest economies drew near to a trade war after China issued a statement that it “doesn’t hope to be in a trade war, but is not afraid of engaging in one.”

Last Friday China announced it

is considering to slap an additional 15-percent levy on United States products, including dried fruits, wine and steel pipes, and a new 25-percent tariff on pork products and recycled aluminum in response to the US’s duty on steel. If carried out, China is seen demanding more pork from European exporters that have been bolstering its business in China in the last two years.

Also last Friday, over 40 members—including the 28 countries under the European Union (EU)— of the World Trade Organization took a swipe at the consequences that may be brought about by the stiffer tariffs on steel and aluminum. They argued the policy will not only take a toll on traders’ interests, but also on the predictability and stability of the rulesbased multilateral trading system under the WTO. China claimed the additional duties were inconsistent with the

General Agreement on Tariffs and Trade and the WTO Agreement on Safeguards. It urged the US to desist from taking unilateral measures, adhere to WTO rules and promote the multilateral trading system.

Russia, on the other hand, argued the new tariffs are above the bound rates that the US committed under the WTO. It also called on the White House to clarify how the measure can be permitted in line with the multilateral trading body’s regulations and to hold meaningful dialogue with its trading partners.

Japan, Venezuela, Brazil, New Zealand, Turkey, South Korea, Hong Kong, Singapore, Thailand, Pakistan, Norway, Australia, India, El Salvador, Switzerland, Paraguay, Guatemala and Kazakhstan all joined China, Russia and the EU in telling the United States of the possible dangers of its recent policies.

TWO PROPOSALS FOR NAIA UPGRADE FAIL TO IMPRESS FILIPINO AVIATION EXPERT Continued from A1

Immediately upon takeover, the group proposes to construct fulllength parallel taxiways for both runways, an additional rapid-exit taxiway for the primary runway, the extension of a second runway and the provision of maximum aircraft stands.

These solutions will increase airfield capacity to 950 to 1000 aircraft movements per day, a 35-percent increase from the current 730 aircraft movements daily.

Within the first two years, the group will rehabilitate and expand the existing terminals, which will roughly double the space and result in over 700,000 square meters of terminal area.

By that time, the airport will be able to handle as much as 72 million passengers annually, a huge jump from the current 30-million annual passenger capacity.

But these plans already have constraints even before they could take off.

“To drive away the subdivision dwellers will take forever. No magical runway architecture for the Naia would increase runway

capacity to meaningful level,” Zapanta explained, noting the lack of available land for the expansion plans, and the amount of time to build a new runway.

The Naia has reached its peak, handling 42 million passengers last year, way above its maximum capacity of 35 million passengers annually. This year the throughput is expected at 44 million.

Loggerheads

Naia Consortium Spokesman Jose Emmanuel F. Reverente said his group is open to tweaking the group’s original proposal, including the concession period that it earlier proposed, just to win the contract.

Megawide Spokesman Louie B. Ferrer then hit the rival by saying that, once submitted, an unsolicited proposal should be evaluated as it is.

“We were quite alarmed to hear the statements of the Naia Consortium about their intent to ‘tweak’ their submitted proposal for the rehabilitation of the Naia. Their suggested tweaks involve changing cornerstones of their proposal.

This kind of tweaking to the proposal after submission is the same

as changing its terms,” he said.

Should the government allow this, Ferrer said it will put to question the integrity of the process.

“We are very much concerned that this tweaking of proposals after they have been submitted and deemed complete will put into question the integrity of the process for evaluation of all unsolicited proposals.”

Two weeks ago Reverente announced that the government has sent the group a letter relating to the “completeness” of its proposal.

“We encourage the Naia Consortium to commit to the proposal that they have submitted. It will now be up to the government to evaluate and decide which proposal best serves the needs of its people,” Ferrer said.

Reverente noted the Naia Consortium will faithfully follow the permitting and approval process for its unsolicited proposal to upgrade and expand the airport.

“The seven Filipino conglomerates comprising the Naia Consortium stand on uncompromising legal compliance for the approval of its proposal,” he said.

Citing the build-operate-transfer

law’s rules, Reverente said the iterations on the proposal can be made when the negotiations between the proponent and the government start.

“For us, our proposal provides the short- medium- and long-term solutions to the Naia’s problems. However, we are flexible and can adjust to what the government wants. Otherwise, we can proceed to deliver on our promise as soon as we are cleared for takeoff,” he said.

He added the country urgently needs a “proper national gateway now and asked all parties to help instead of impede the process to move forward so the country, the Filipino flyers and the foreign tourists and investors will have finally a proper welcome and send-off venue.”

“These seven conglomerates set aside their individual competitive spirit for country. We ask others to do the same or at least let the proper process take its course before raising questions that are based on speculation,” he said.

Due to their nature, unsolicited proposals are required under law to go through several approvals processes, including a review from

the implementing agency and an evaluation from the several bodies of the National Economic and Development Authority (Neda).

Under current rules, unsolicited proposals are also required to undergo a Swiss challenge, which essentially allows other groups to outbid the original proponent of the project.

The original proponent, however, has the option to submit a counteroffer to win the challenge.

The winner of the challenge will be determined after the Neda Board, currently chaired by President Duterte, evaluates the challenger’s offer, and the original proponent’s counteroffer.

Hence, the process could go for as quick as six months to over a year, and as long as almost a decade, as in some cases in the past.

Clark is still the way to go

But for Zapanta, the best way to go is the further development of Clark International Airport, and implement a twin-airport strategy.

“The dual gateways [strategy] is the way to go. Clark is the future, with three expressways covering three connecting catchment areas,”

Boracay. . .

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According to Agoda, “A force majeure event is any event beyond the‘Covered Parties’control and can include, but not limited to, natural disasters, weather conditions, fire, nuclear incident, electro-magnetic pulse, terrorist act, riots, war, arson attacks, insurgency, rebellion, armed hostilities of any kind, labor disputes, lockouts, strikes, shortages, government actions or restraints, pilferage, bankruptcy, machinery breakdown, network or system interruptions or breakdown, internet or communications breakdown, quarantine, epidemic, pandemic, etc.”

Research done by TripAdvisor showed that Boracay was the second most viewed city in the Philippines after Manila, for the period January 2015 to September 2017.

The research also noted that “travelers from the long-haul flight countries tend to click to book accommodation for their Philippines holidays over 70 days before their travel. On the other hand, markets like Singapore, China and South Korea click to book their stay less than two months prior to travel.” The long-haul destinations include the United States, the United Kingdom and Canada, reflecting the top long-haul tourist markets in Boracay.

Data from the DOT showed foreign tourists in Boracay last year reached some 1.05 million, most of whom came from China (375,284); South Korea (356,644); Taiwan (40,802); the US (22,648); Malaysia (20,585); the UK (17,416): Saudi Arabia ((15,944); Australia (15,365); Russia (14,074); and Singapore (9,897).

Task Force Boracay, which is composed of the DILG, DENR and DOT, has recommended to President Duterte to put Boracay under a

he said. Zapanta has been advocating for the twin-airport strategy for years now. It involves the redevelopment and the rationalization of the country’s main gateway and the modernization and expansion of Clark as a modular hub.

Currently, the airport is being developed to have a second terminal. Megawide and partner GMR won the bidding for the contract a few months ago.

The project involves design, construction, testing and commissioning of new terminal with a capacity of 8 million passengers per annum.

The consortium will construct the integrated terminal along with specified landside facilities, such as car parks.

“After the second terminal, which is currently under construction, we have to push for the construction of a third terminal, and a third runway,” Zapanta said. “The speed rail connection may follow or be simultaneously tackled.”

The railway connection to Manila is one of the issues that industry players cited three years ago, when the BusinessMirror wrote a special report on the pros and cons of the air hub in the north. state of calamity, and close it for six months to allow rehabilitation work to commence.

Meanwhile, Densing told this paper that local executives, who were sitting in office starting 2008, will be charged with administrative offenses for allowing the environmental and easement violations on the island. The DOT determined that Boracay's carrying capacity had been breached in 2008.

“The case buildup is from 2008... serious negligence of duty. Mayor [Ciceron] Cawaling is the same mayor during that time,” he stressed. John Yap was the mayor of Malay from 2010 to 2016, before being succeeded by Cawaling.

The DILG official was silent, however, on the culpability of local executives from the DENR who reportedly failed to enforce environmental laws, such as the Solid Waste Management Act and Clean Water Act. But DILG Officer in Charge Eduardo M. Año has said DENR officials would not be spared from the investigation of his agency’s investigation.

Densing told CNN Philippines that the DILG has been gathering evidence on these local executives for the last three weeks.

“We met last Friday with all the lawyers and the Boracay investigative unit of the DILG. We’ll be drafting a complaint by this week, and hopefully we can give the same complaint to the Office of the Ombudsman before April 14.”

He said those to be charged with administrative offenses,“initially, we’re looking at local chief executives, most probably the mayor, most probably the Municipal Council, wipe out sila, the barangay captains, and even the governor. The only thing is, the gathering of evidence on the governor isn’t complete.”

Carlito Marquez was the Aklan governor in 2008 until 2013, while Florencio Miraflores is the incumbent, and has been governor since 2014.

www.businessmirror.com.ph

BusinessMirror Special Feature

Tuesday, March 27, 2018 A3

Economy

A4 Tuesday, March 27, 2018 • Editors: Vittorio V. Vitug and Max V. de Leon

Con-com seeks to enshrine environmental protection, rights in new Constitution

By Bernadette D. Nicolas @BNicolasBM

F

ollowing the adoption of a self-executing provision on political dynasties, the consultative committee (Con-com) is now set to adopt similar provisions on environmental rights by the second week of April.

Taking into account the extent of environmental degradation in the country and among tourism areas, especially in Boracay, Panglao and El Nido, and also the effects of irresponsible mining, Con-com Chairman and former Chief Justice Reynato S. Puno cited the lack of environmental rights and self-executing provisions in the present Constitution.

Puno said it’s high time to constitutionalize provisions on the right of people to a healthy environment when they redraft and revise the Constitution.

“By doing so, we shall be putting on a par this right to a healthy environment with the civil and political rights of the people. Meaning to say, this right to a healthy environment will equally be demandable against the state and its agencies,” Puno said, noting that various countries have already constitutionalized this right to good environment.

This, he added, is aligned with the main agreements and treaties from the United Nations to protect the environment.

The self-executing provisions on env ironmental rights will cover the rights to clean air and clean water, right to healthy environment and ecology, right to the preservation of ecosystems,

According to Puno, the absence of environmental rights is the reason behind Congress passing a lot of legislation in order to protect the environment and why the SC has to promulgate the Writ of Kalikasan in 2010.

Puno also bewailed 1987 Constitution only have a sentence-long environment-related provision.

Under Article II Section 16, “the State shall protect and advance the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature.”

The Writ of Kalikasan gives persons, organization or any publicinterest group duly registered with any government agency to seek immediate legal remedy to prevent any threat of environmental damage to their community.

It is also part of the rules of procedure on environmental cases adopted by the SC in 2010, shortly before Puno retired.

Given the situation in Boracay and other tourism areas, the former Chief Justice said that part of the problem is the “lack of enforcement of our laws on environment.”

“This lack of enforcement can be traced to the failure of, among others, the local governments to enforce the relevant laws,” he said.

“If we constitutionalize this right to good and healthy environment, you will be empowering the citizenry, the people, to demand from the state, its agencies, including the constituent units, to enforce these laws on environment and, correspondingly, to hold them accountable for their failure to implement these relevant laws,” Puno added.

BusinessMirror

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DOF orders BOC to establish ‘seamless’ link with PHL’s major trading partners

T

By Rea Cu

@ReaCuBM

he Department of Finance (DOF) has ordered the Bureau of Customs (BOC) to establish real-time data-exchange arrangements with South Korea, Japan, China and the United States to ensure a seamless exchange of trade information between the Philippines and its major trading partners.

These four countries represent the Philippines’s top 4 trading partners that Finance Secretary Carlos G. Dominguez III wants the BOC to closely work with in monitoring shipments and checking discrepancies in trade data.

The data-exchange parameters include data on the volume and value of goods exported by these countries to the Philippines and the import volumes from these countries as reported by revenue authorities in the Philippines to check against possible illegal-trade practices.

The finance chief told Customs Commissioner Isidro S. Lapeña and other BOC officials to establish

communication lines and coordinate with the heads of the Customs agencies of these countries to accomplish the goal.

“You have to be able to pick up the phone and call them [the heads of other customs agencies] personally,” Dominguez told BOC officials during a recent Executive Commit-

tee meeting of the DOF. “I asked him [Lapeña] to go to four countries: China, Japan, Korea and the US. These are our four biggest trading partners,” Dominguez said.

In his visit to Beijing last month, the Customs chief and his Chinese counterpart agreed to set up a data-exchange system to facilitate the timely sharing of trade information and aid them in their respective campaigns against smuggling and tax evasion.

The BOC also requested from its counterparts in China data on Chinese commodity imports and exports to the Philippines between the years 2015 and 2017, monthly or quarterly export and import data of China to the Philippines by commodity for 2018; and export data on all shipments going to the Philippines and manifest of vessels carrying cargoes bound for the Philippines.

The request for information was in compliance with Dominguez’s directive to Lapeña in 2017 for the BOC to check the narrowing, but still significant, gap between China’s reg-

You [BOC officials] have to be able to pick up the phone and call them [the heads of other Customs agencies in China, the US, South Korea and Japan] personally.”­—Dominguez

Bill seeking to stop privatization of govt hospitals endorsed for House plenary okay

If we constitutionalize this right to good and healthy environment, you will be empowering the citizenry, the people, to demand from the state, its agencies, including the constituent units, to enforce these laws on environment and, correspondingly, to hold them accountable for their failure to implement these relevant laws.”­—Puno right to be protected from activities that destroy the environment, right to sustainable development, right to compensation for damage to environment, and recourse to courts for immediate protection and a stronger Writ of Kalikasan.

Con-com hopes to strengthen the Writ of Kalikasan so that it may not be subject to withdrawal or revision by Congress or even by the Supreme Court (SC).

Asked if the self-executing provision on environmental rights would be less contentious compared to the anti-political dynasty provision, Puno said: “I do not know how extensive the opposition will be, but I [would] like to think the intensity will be less because, at present, we have had a very good environmental laws coming from Congress…. Hopefully there will be more agreement [and] less opposition.”

By Jovee Marie N. dela Cruz

T

Mime on the loose

A mime poses for a snapshot with mallgoers in Pasay City. The mime earns a living by providing “silent” entertainment to the mall crowd with his rather unique costume and gestures. Nonie Reyes

DOLE chief defends recall order to HK labor attaché

By Samuel P. Medenilla @sam_medenilla

T

he labor department defended on Monday its decision to recall the labor attaché in Hong Kong amid allegations of favoritism in the accreditation of recruitment agencies.

In an ambush interview, Labor Secretary Silvestre H. Bello II confirmed he issued the recall order for Jalilo dela Torre based on the recommendation of the team he sent to Hong Kong to probe the complaints filed against the labor attaché.

Dela Torre underwent an investigation after he allegedly abused his discretion by accrediting only recruiters whom he allegedly favored.

“Their recommendation is for me to recall him so he can explain and answer the charges against him. This is not a penalty,” Bello stated.

Bello issued the remark after 89 overseas Filipino workers (OFW) in Hong Kong released a joint statement during the weekend throwing their support

istered export volumes to the Philippines and data on Philippine imports from China officially reported here.

In December 2017 Dominguez said official trade data show that the estimated discrepancy between registered Chinese exports to the Philippines and registered Philippine imports from China has been on the decline but the volume gap remains relatively large, reported at 60 percent in 2010; 57 percent in 2015, 48.7 percent in 2016 and 48 percent over the January to July 2017 period.

Registered Chinese exports to the Philippines in 2010 was at $11.56 billion, but Philippine imports from China as reported by the Philippine Statistics Authority was only at $4.628 billion, resulting in a trade discrepancy of 60 percent, or $6.936 billion.

Officials from the General Administration of Customs of China (GACC) expressed China’s support to the Philippines’s antismuggling efforts and agreed on the designation of focal persons between the two countries to facilitate the coordination between their respective customs agencies.

The BOC added that a cooperative arrangement between the bureau and the GACC has been scheduled to be signed during the proposed visit of Chinese officials to Manila in April this year.

behind dela Torre and to oppose his recall.

Blas F. Ople Policy Center and Training Institute head Susan Ople, for her part, said she concur with the joint statement stating the immediate recall order is uncalled for.

“The traditional way would be for the DOLE [Department of Labor and Employment] central office to ask the person concerned to reply to whoever is complaining against him or her first,” Ople said.

“Because the perception, once you recall someone, there is already an impression that he had failed in his job,” she added.

For her part, Philippine Association of Service Exporters Inc. President Elsa U. Villa said she believes the complaint against dela Torre is unlikely based from his track record.

“He has worked in several other posts before. And never was his name associated with corruption and with negligence. He always went the extra mile in protecting our workers,” Villa said.

She noted this was the first time recruit-

OPLE: “The traditional way would be for the DOLE [Department of Labor and Employment] central office to ask the person concerned to reply to whoever is complaining against him or her first.”

ment agencies rallied behind in support of a labor attaché.

“This is rare because recruitment agencies and labor attaches are usually at odds. This is one labat [or labor attaché] who has served well, and we don’t want to lose because good public servants like him are very rare,” Villa added.

Among the achievements of dela Torre, she said, was exposing to Hong Kong authorities the Russian syndicates victimizing migrant workers and pushing for the banning of window

cleaning for foreign household-service workers in Hong Kong.

Ople held a news conference to express their support for dela Torre without the labor attache’s knowledge.

“We intentionally left him [dela Torre] out of the loop because we want to show that if there is a good man or person...they will be affirmed by OFW advocates,” Ople said.

Ople and Villa said they hope Bello will consider their testimonies before he makes a decision on dela Torre’s case.

Bello said he respects the position of migrant stakeholders on the issue, but he maintained his recall order will still take effect.

“If we will reconsider, all the labor attachés that will be recalled might do the same thing...[we] have to respect our disciplinar y procedures,” Bello said.

The labor chief, however, clarified dela Torre will remain the labor attaché in Hong Kong unless it is proven he committed irregularities in the performance of his duties.

@joveemarie

he House Committee on Health has recently endorsed for plenary approval a measure that seeks to stop the privatization and corporatization of all public hospitals, health facilities and health services in the country.

Committee Chairman Rep. Angelina Tan of Quezon said the House Bill 7437, or the “AntiPrivatization of Public Hospitals, Health Facilities and Health Services Act,” seeks to address the inaccessibility and inequality in health care brought about by the privatization of public health services.

The bill enables indigent patients to access quality health care in public hospitals, public health facilities and public health services.

Under the bill, at least 90 percent of the total bed capacity of all public hospitals should be allotted to indigent patients.

It also improves hospital and health-care services without resorting to privatization.

The measures defines privatization as the process in which non-governmental actors become increasingly involved in the financing and provision of health-care services, which include: outright sale, public-private partnership; corporatization; contracting out of equipment; joint venture; franchising; management control and corporatization; and leasing and user charges.

The bill provides liability and accountability to persons who initiates cause and approve the privatization of any hospitals, health facilities and health services The bill penalizes violators with a fine ranging from P100,000 to P800,000, and suspension of removal from public office.

It also directs the secretary of the Department of Health to promulgate the rules and regulations for the effective implementation of the Act. Party-list Rep. Carlos Isagani T. Zarate of Bayan Muna, principal author of the bill, said the measure aims to protect the right to health of the Filipino people, the poor especially, by maintaining and upholding the public character of government hospitals and by prohibiting any form of their privatization.

“Health care must be made accessible, affordable and appropriate to the needs of the people. Public hospitals, as part of the public health-care delivery system, must be fully developed and strengthened by the government, not privatized,” Zarate said.

“This bill is a major step to address the inaccessibility and inequity in health care made worse by privatization of public health services,” he added.

According to Zarate, the lower chamber is expected to approve the bill when session resumes on May 14.

www.businessmirror.com.ph

Banking&Finance BusinessMirror

Editor: Jun B. Vallecera • Tuesday, March 27, 2018 A5

Govt partially awards T-bills as rates soar

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By Rea Cu

@ReaCuBM

he Bureau of the Treasury (BTr) made a partial award of the P20-billion Treasury bills (T-bills) offered on auction on Monday, as rates rose across all tenors.

The BTr awarded the full P9-billion 91day T-bills on offer, but partially awarded P3.584 billion for the 182-day security and P3.779 billion for the 364-day tenor.

National Treasurer Rosalia V. de Leon said investors’ preference remained with the almost twice-oversubscribed shorter dated government securities.

“You see oversubscription for the 91 day, but there is still demand for the 182 day and the one year [tenor]. But we see that rates, compared to previous auctions, the bids are really over the roof,” de Leon told financial reporters.

The 91-day security received bids amounting to P16.120 billion with the tenor receiving an annual average rate of 2.995 percent, 2.90 basis points lower than the 3.024-percent rate set in the previous auction.

The 182-day security was undersubscribed as it received bids amounting to P5.834 billion from the P6 billion on offer.

The auction committee partially awarded P3.584 billion for the tenor with an annual average rate of 3.206 percent, showing a 4.10 basis point increase, from the 3.165 percent set in the previous auction.

“Maybe the market is continuing to digest about the inflation path, as already conveyed by the BSP [Bangko Sentral ng Pilipinas], that in 2019 they will again tread back to the target of 2 percent to 4 percent, what we are having right now is transitory,” she added.

The 364-day tenor was also undersubscribed, with bids amounting to P4.979 billion from the P5 billion on offer. The BTr partially awarded P3.779 billion with an annual average rate of 3.434 percent, which is 12.30 basis points higher than the 3.311 percent set in the previous auction.

For the P20-billion T-bills offered, the BTr auction committee received bids amounting to P26.93 billion. In the end, it awarded a total of P16.36 billion.

“The Monetary Board also decided for a stay in policy rates, so they don’t see really any inflationary expectations rising, so the setting continuous to be appropriate. I think that is also being digested by the market,” de Leon said.

Meanwhile, de Leon expressed optimism for the country’s Panda bonds. “We are happy because of the overwhelming reception considering it’s our maiden issuance and the thing here is there is a huge offshore demand due to the bond connect. And we’ve seen about 88 percent of the book is from offshore, even on the part of the Chinese, the PBOC [People’s Bank of China] and those other regulators, they were also pleasantly surprised that there was a huge demand in our issue,” she said.

Last week the Philippines issued Panda bonds worth 1.46 billion in renminbi (RMB) with a three-year tenor.

The security fetched a coupon rate of 5 percent, a tight spread of 35 basis points above benchmark.

The Philippine government’s inaugural issue of renminbi-denominated bonds received oversubscription with bids reaching RMB 9.22 billion, compared with the government’s debt offering of RMB 1.46 billion.

Rising prices dampen consumers’ confidence

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ore Filipinos are losing confidence in the country’s economy, as rising consumer prices dampened sentiments among households in the first three months of the year, a Bangko Sentral ng Pilipinas (BSP) survey showed.

Results of the BSP’s Consumer Expectations Survey showed weaker consumer confidence in economic prospects from local consumers in January to March this year, with the overall confidence index (CI) declining to 1.7 percent from the 9.5 percent in the previous quarter.

CIs are computed as the percentage of optimistic respondents minus the percentage of consumers that indicated otherwise. A smaller but still positive CI means that the number of optimists declined but still outnumbered the pessimists during the review period.

Inflation during the first two months of 2018 averaged at 3.7 percent based on the new 2012-based consumer price index. This is almost one whole percentage point higher compared to the adjusted 2.8 percent average in the first two months of 2017.

Aside from higher consumer goods prices, respondents also attributed their

indicators of consumer expectations— including the country’s economic condition, family financial situation and family income.

The BSP said declines in the prospects for the country’s economic condition, as well as family financial situation were the most notable, with both CIs reverting to the negative territory during the period.

The confidence loss was particularly

Case clippings

less optimistic sentiment to expectations of low income and higher household expenditures. Concerns on the increase of household debt, as well as poor harvest and weather problems were also raised.

The less upbeat outlook was seen across all income groups. “ T he pr imar y reason dr iv ing the weaker outlook across income groups was their expectation of higher prices of goods. A secondary factor noted by the low- and middle-income groups was low family income or salary,” the BSP said.

Also, the decline in confidence on the economy was seen across all three

By Justice S J Ranada Jr.

ADMINISTRATIVE BODIES–Discovery procedures Although trial courts are enjoined to observe strict enforcement of the rules of evidence, the same does not hold true for administrative bodies. It has been consistently held that technical rules applicable to judicial proceedings are not exact replicas of those in administrative bodies. Recourse to discovery procedures as sanctioned by the Rules of Court is not mandatory for the Office of the General Counsel and Legal Services of the Bangko Sentral ng Pilipinas.

Sibayan v. Alda GR 233395 17 Jan. 2018 Velasco, J

It takes GRIT to achieve personal finance goals

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o you have ample financial controls to keep you afloat on your life journey in 2018? Do you have adequate capacity to take on the challenges: anticipate financial issues, understand the consequences for each decision and action taken, identify the interdependence of financial variables, and understand the nexus between your personal finances and other domains of your life?

It’s a tough world out there, and it gets tougher each day. The challenges somewhat demand a high level of prediction close to being certain without flaws. It cannot be argued that at least at this point in time, the only thing certain in our finances is an uncertain future, but it doesn’t mean that it’s time to raise the white flag or rely on some sort of superstition.

There are a lot of ammo that one can use to improve one’s lot, such as the use of mnemonics. A mnemonic that hits two birds with one stone, in a sense, is in a form of an acronym and at the same time the acronym itself seamlessly works its definition of the message. An example is the word GRIT. This word conveys two things, the first one is its own definition and the other one is an acronym for values that exhibit preparedness, timely intervention, sustained commitment and a witty-kind of anticipation.

Here goes GRIT: n Growth. One cannot refute that learning is a never-ending process and a journey that one must embrace. Investing in yourself by religiously gaining new insight, knowledge and skill would surely

steep in the consumers prospects on the country’s economic condition, which was registered with a CI of negative 0.1 percent, from the positive 10.9 percent in the previous quarter.

Family financial situation’s CI came next with a decline to negative 1.3 percent, from positive 7.3 percent.

CI for family income, meanwhile, hit 6.6 percent from the previous quarter’s 10.3 percent. Bianca Cuaresma

Earl Pagatpat

personal finance put you ahead of the challenges that life brings about. Come to think of it, one of the quotidian words in personal finance is savings, but if you carefully examine or ponder on this topic, the act of setting aside a certain amount of money for purposes of using it in the future is something that we all do instinctively.

Even before we enter school, we all have been doing some saving activities in our early years. On the other hand, topics such as inflation, real returns, and investments are a whole new animal and need extra effort to learn them.

Taking that extra step to learn further separates you apart from people who are lax and ignorant and it helps you get fit that would help you get through the financial marathon. n Resiliency. In a world that is volatile, uncertain, complex, and ambiguous, the ability to withstand fortuitous and hapless events that are detrimental to our finances is a scarce capital that we all should use to invest. This complements the first element because both human capital and social capital are strong drivers toward achieving financial resiliency.

The former has something to do with knowledge, skills, experience, and other relevant personal qualities that one can use to generate more income to obtain

financial stability. While the latter has something to do with the support system that you have in terms of your relationship with your family, friends, colleagues and neighbors that can provide financial aid during difficult times. n Integrity. This is focused on the soundness of the financial decisions we make every day. An example I can think of is the time when we are faced with complex financial issues wherein our initial reaction is to find band-aid solutions.

In fact, such an approach does not off a real solution, but it could bring more daunting problems. Always keep in mind that there are no financial shortcuts, and when things seem to be so good to be true, you might want to step back and pause and check yourself. n Tenacity. While you focus on your personal growth, keeping your integrity intact, and ensuring you are financially resilient, it is important to know that the last financial control that I regard as the most important and critical attribute to survive your financial journey is to be steadfast in your finances, goals, and the exercise of the first three attributes.

It’s all about being tenacious or persistent to stay committed to achieving your financial goal. After all, you would not want to let all your efforts and sacrifices go to waste.

Earl Pagatpat is a registered financial planner of RFP Philippines. To learn more about personal f inancial planning, attend the 68th R FP prog ram this May 2018. To inquire, e-mail info@ rfp.ph or text <name><e-mail><RFP> at 0917-9689774.

RCBC Bankard offers Platinum card with JCB

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CB International Co. Ltd. (JCBI), the international operations subsidiary of JCB Co. Ltd., announced the launch and issuance this month of a new Platinum card in the Philippines issued by Rizal Commercial Banking Corp. (RCBC), through its Card Servicing entity, RCBC Bankard Services Corp. (RCBC Bankard).

JCB cards are currently issued in 23 countries and territories with over 100 million card members around the globe.

RCBC Bankard started issuing Classic and Gold JCB cards in the market in 1997. The launch of this latest product in the Platinum card market marks a milestone in the long-standing partnership between RCBC Bankard and JCB. The RCBC Bankard JCB Platinum card is packed with prestige and privileges, providing its cardholders with world-class benefits, including free airport lounge service, discounted car-rental services worldwide, 24/7 Concierge Desk, and access to JCB Plaza Lounges in major cities. In addition, they can also benefit from a generous rewards program with non-expiring rewards points, cash rebates, or airmiles. Cardholders also get to double their rewards even faster when they use their RCBC Bankard JCB Platinum card in Japan.

JCB provides various services to card members, which the new RCBC Bankard JCB Platinum cardholders can avail themselves of. In the Philippines, JCB has many privilege merchants for dining, hotel, wellness, and e-commerce.

“We would like to provide our premium clients with more options. The launch of the RCBC Bankard JCB Platinum card will definitely appeal to accomplished individuals who frequently travel abroad for both business and pleasure. Noting the increase in Filipinos visiting Japan and the issuance of multiple Visa entry, we anticipate that our premium cardholders will be going to Japan more often. Hence, we doubled the points/ airmiles that they can earn using the RCBC Bankard JCB Platinum card for spending made in Japan. The partnership with JCB enhances the privileges even more since they offer worldwide benefits to the JCB card base which our cardholders can take advantage of,” said Simon Calasanz, president and CEO of RCBC Bankard.

For his part, Senior Vice President of JCBI Yuichiro Kadowaki, said: “We are pleased that RCBC Bankard, an expanding credit company showing the strongest growth in the Philippines, has launched this new Platinum card.

IC gag order a violation of trust, declares transparency group

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ransparency in Public Service (TIPS), a watchdog group that monitors public officials and government agencies, expressed its disappointment at the recent move of Marsh Philippines Inc. to persuade the Insurance Commission (IC) to issue a media gag order regarding an ongoing investigation.

Acting on a complaint filed by Prudential Guarantee and Assurance Inc., the IC is in the midst of examining whether Marsh is violating the law by using “fronting insurers” to solicit business in the Philippines.

Recently, Marsh filed a motion before the commission to direct all parties involved in the case to refrain from speaking to the media.

“We believe that it sets an alarming precedent if a company being investigated by a government agency can now set the terms for how much media coverage the investigation receives,” TIPS Spokesman Brent de Jesus noted. “The IC is accountable to the public, and any suppression of information is a violation of trust,” he emphasized.

On the other hand, Marsh believes that continued attention from the press may end up prejudging their case, and “put the honorable commission in a position that compromises the public perception of the agency as being able to rule impartially and on the basis of nothing but the merits of the case.”

De Jesus, however, said that the

opposite is true. “Issuing a gag order will actually raise more suspicions about this investigation, as if there are things that they want to be hidden,” he pointed out. “The accusations against Marsh are serious, and the outcome of this case will have direct repercussions on a multibillion-peso industry,” de Jesus concluded.

In December IC Regulator (Enforcement and Prosecution Division) Officer in Charge Brian Sibuyan stated that the commission would resolve this case “within a maximum period of 12 months,” while underscoring that the agency would “assess all matters presented by both parties, and make a decision based on all the evidence presented.”

A BusinessMirror Special Feature

MEDICAL

INNOVATIONS www.businessmirror.com.ph

A6 Tuesday, March 27, 2018

Technology in medical industries leads to sustained growth Virtual Reality and Augmented Reality

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by Leony R. Garcia

ANY of the country’s hospitals has adapt to the changing landscape and developments in the health care industry by expanding the scope of their services and integrating technological innovation in its operations.

By working beyond their sense of duty, the stakeholders in this industry has been able to con-

tribute to the growth of the country while serving its clients with quality services.

In 2020, it is expected that the healthcare industry to be an $8.7 trillion industry. If we continue on this path, the medical expenses will become unaffordable for everyone to a point where medical attention is only available for a lucky (rich) few. According to economists and even medical experts themselves it would be a world neither of us wants to live in.

The use of technology in medical fields might offer the solution to this problem.

The following technological trends in healthcare are currently making a difference or lining up to make a difference in the healthcare industry. Moreover, these technologies can contribute to the current medtech innovations as well as make a difference in the coming decade.

VIRTUAL Reality and Augmented Reality are very groundbreaking trends in healthcare at the moment. With Virtual Reality (VR), you emerge yourself into the reality through the glasses and the tech. You become part of a world that is not real and get to practise scenarios that are digitally made up. It’s great for therapy and training sessions.

Augmented Reality (AR), on the other hand, is an extra layer on top of your environment. It’s an enhanced reality through technology.

On top of that, it gives you more options and additional information tieing directly into the situation in front of you.

VR in healthcare is currently used as technology in medical solutions. One of the ways is during therapy sessions. For instance for people who have suffered a stroke.

The software allows the patients to practice through games on their own with the supervision of a therapist. Another way VR is used is by allowing patients to swim with dolphins. With the VR tech, they swim in the pool and experience the simulation of swimming with dolphins. It has proven to have the same benefits of swimming with real dolphins at a fraction of the cost and gives people the option for this therapy even if they don’t have access to dolphins.

VR goes beyond therapy for patients. It’s also used in teaching allowing students to watch live through VR as if they were present at the surgery. Meanwhile, Augmented Reality can be used as technology in medical training. By adding AR to their classes it makes it possible to fully learn anatomy without opening a cadaver. It helps showcase how the body works through showing how everything is connected. With the connected tech, the lecturer can show what he is talking about to all the students up close.

On a smaller scale, AR will help people stay in shape in a fun way. A good example of that is the Poké-

mon app or the Zombies run app. It gets people moving through a game of Zombies. These small apps make working out more fun and in turn, will lower healthcare costs because people stay healthier.

Artificial Intelligence

WHEN it comes to diagnostics, AI is expected to make a huge difference in diagnosing patients. It will speed up the diagnosis of patients to the point that we might be able to prevent their sickness. This will save a considerable amount of money in treatment and hospital costs. At the same time having AI make the diagnosis it will free up the doctors to help patients who are in need of the doctor to provide surgery or treatment.

Coupled with the Internet of Things (IoT) and big data, AI will help shape our future MedTech and healthcare as it can also be used during clinical trials. Currently, clinical trials take a long time before producing an outcome. AI was used to find a cure for Ebola. Within a day two potential drugs were discovered, an outcome that would have taken months or even years through the traditional route.

matically. It’s one of those wearable developments that aim to make life and the quality of life better.

Cybersecurity and Blockchain

WITH the rise of technology in medical fields, healthcare applications and storage in the cloud, security becomes increasingly important. Since applications that control medical devices are also connected to and store in the cloud, security is a big issue.

One of the technologies that will help create a safe environment for sharing and using cloud-based applications is the blockchain. With the blockchain constantly verifying itself it will become possible to own your knowledge and have this validated. The blockchain is currently most known for the cryptocurrency, but it’s used for much more applications. It is one of the technologies that is already putting a great stamp on future development.

Customisation and 3D printing

CURRENT activity trackers can track heart rate, heart rate variation and even oxygen saturation. All those devices sync real-time to the cloud creating a large body of data for each user. With every new release its possible to measure more vitals.

Wearables are expected to help improve diagnostics reducing the time spent in hospitals as well as help prevent illness before they happen. With the insight before it will reduce both hospital and treatment costs making for a more efficient prevention treatment.

Wearables are also utilized for specific treatments such as diabetes care. The artificial pancreas is making the life of diabetes patients easier and more normal. It measures and regulates the insulin levels auto-

3D printing is already used to print vessels, and it’s experimenting are done with 3D printed prosthesis and even facial reconstruction.

3D printing will give the option to create better-suited solutions for the individual as well as making it easier to produce.

Currently, there are experiments done with 3D printing casts.

Where nowadays getting a cast is an uncomfortable affair, 3D printing can produce a more comfortable solution for healing broken bones.

The cast can easily be removed during check-ups and is breathable.

With the wearables becoming more the norm and having better analytical functions, they will produce a lot of data. Coupled with AI, big data and connected through the IoT it will become easier to predict and prevent diseases and act before people turn into patients. The analytical power of these tecnological innovations will speed up diagnosis, treatment and will make it easier for healthcare professionals to collaborate without travel.

Once you do pick the hospital, there are various room options to choose from. Private rooms, of course, provide the most ideal comfort and privacy, but even private rooms vary in rates. Choose a smaller-sized room with the same amenities and save hundreds if not a few thousands of pesos. nSwitch rooms. You will be charged for the operating room and other hospital department services based on your room rate on the night before your operation. So if you are staying at an expensive suite, expect to pay more. So check in at a lower-priced room the night before your operation and just move to a better and more expensive room right after. nTime your stay. If you want to avoid an extra, unnecessary stay (and save one day off your room and board), get your schedule right.

Your doctor will tell you when your surgery will take place. Talk to your doctor about your preference. Ask to be scheduled first or at the earliest time possible to so you can get out of the hospital quicker. Alternately, ask to be scheduled in the evening so you just have to check in the morning of your operation, not

the night before. nCheck your bill for errors. Hospital staff can make mistakes, including errors in your bill. Before you automatically pay your bill, make sure you thoroughly review the details of your itemized bill. You might be charged for services you did not receive. You can consider doing a log of all tests, medications, and treatments during your stay, or ask a companion to do it for you. nBring in your own medicines. Expect to pay more for medications that you can buy at cheaper prices outside.

You can bring in and use your own medicines but make sure you inform the hospital staff, who should administer the drugs themselves.

Ask if lab tests can be done outside the hospital. Many doctors nowadays recommend an outside clinic that may be less costly. nNegotiate with your doctor, haggle if you must. While they may have standard fees, doctors do adjust fees as they deem fit.

Health plans have limited coverage so it pays to negotiate. And if you’re not insured at all, then negotiating becomes very critical.

Read more financial tips and stories at www.moneysense.com.ph.

Big data through wearables and IoT

WAYS TO SAVE ON HOSPITAL BILLS

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HE best way really to save on hospital bills is to get insurance, either from PhilHealth or from private medical insurance firms. nUse your PhilHealth benefits. At the very least, make sure your employer remits your PhilHealth contributions regularly. If you are selfemployed, be a voluntary member for only Php 200 a month. This is one government service that you won’t regret paying for at affordable price.

PhilHealth lowers your hospital bills by covering a portion of your room and board (P200 to P400 per day, depending on the hospital category), drugs and medicines (from P1,500 to as much as P16,000, depending on the hospital and the type of illness), lab fees (P350 to P14,000), professional fees (maximum of P600 to P2,500), charges for the operating room (P385 to P3,490), and the

surgeon’s and anesthesiologist’s fee (maximum of P16,000 and P5,000, respectively). One other important benefit: if you are giving birth, you shave off around P15,000 for the operation. nSecure medical insurance that is an HMO. Big and some small private companies provide this benefit to their employees.

Health maintenance organizations (HMOs) are becoming the popular alternative. One of your company benefits will more likely include participation in a group plan. HMOs offer big savings to the insured individual in case he or she in the future would ever need hospitalization for a reasonable monthly fee deducted from their monthly salary. A large percentage

of the hospital fee is then shouldered by these HMOs. The primary advantage of HMO is that there are no cash outlays, unlike traditional health insurance plans, which require you to pay first and then claim for reimbursement. There is also greater emphasis on preventive care, hence the annual trips for free physical exams and full coverage for out-patient benefits like doctor’s consultations and lab fees, which are not fully reimbursable under a traditional plan. nConsider getting a traditional health insurance plan. Of course, premiums can be more expensive but it pays more. Room and board and miscellaneous hospital expenses, which include drugs and lab fees, are covered as charged, for example.

If you are relatively young and healthy, you can get by with an HMO, but as you grow older and your health risks increase, getting a traditional health insurance plan makes a lot more sense. Besides, the premiums you pay now may pay off huge when you need medical care the most. It is better to amortize payments through an insurance

company than to pay everything during emergencies. nStay within your network. The other advantage for a traditional health insurance plan is you typically have more flexibility in choosing your own doctor and hospital, unlike with an HMO that forces you to avail of service providers within your HMO’s network. This means that if you are an HMO member, make sure everyone who will be treating you (surgeons, anesthesiologists, radiologists, pathologists) participates in your HMO. You also have to know which hospitals are accredited by your HMO.

In emergency cases, your HMO may probably reimburse you. So carefully check your plans exceptions and exclusions. nChoose a more reasonably priced hospital. Even if you have a health plan that fully covers room and board, you still want to make sure you are within your maximum coverage. Your choice of hospital of course should not be based on how affordable the room rates are but do make that one of the key factors for your decision. Ask for room rates and choose one that fits your budget.

The Regions

Tuesday, March 27, 2018 • Editor: Efleda P. Campos

A8

BusinessMirror

DPWH wants Panglao airport operating by August this year

By Lorenz S. Marasigan

@lorenzmarasigan

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RANSPORTATION Secretary Arthur P. Tugade ordered the contractor building the New Bohol (Panglao) International Airport to complete the project by June, and have it fully operational by August this year.

Despite seeing somewhat unsatisfactory results in the construction of the runway, passenger terminal and perimeter fences of the airport, Tugade said he is confident the airport will be completed

by June.

“With what I saw, I have reservations that this will be completed in June. However, with the PMO and

contractor’s assurance, this will be completed in June and operational in August, I will take your word for that,” he said, directly addressing the project management officer.

The joint venture of Japanese firms Chiyoda and Mitsubishi was contracted for the project.

As of today, construction of the new airport is at 80 percent,

with the runway fully paved and operational.

For its second phase, an additional 300 meters will be added to extend the runway from 2,500 meters to 2,800 meters after the airport becomes operational. The runway was engineered to accommodate seven aircraft at one time, including wide-body aircraft for international flights.

Since the new administration took over in July 2016, Tugade ordered a 24/7 construction schedule to fast-track completion of the airport. Since then, construction has seen a huge jump from the previous 6.48-percent completion recorded from June 2015 to June 2016.

The agency has issued a memorandum to stipulate that a work slippage of more than 30 days would result in nonpayment, cancellation of contract, blacklisting of the erring contractor and the engagement of another contractor to finish the project.

The New Bohol Airport is expected to become the first ecoairport in the country.

Dubbed as the “Green Gateway

to the World,” it will serve as the premier gateway to the province and island paradise of Panglao, a thriving tourist destination.

The airport will be held to the highest standards of green and sustainable structures, and will primarily use natural sunlight and air. Solar panels will also be installed on the passenger terminal building roof, which can cover around one-third of the airport’s energy requirement.

Tugade also ordered the PMO to form a committee to determine the various concessions to be placed at the airport once it is completed.

“All the processes in determining the food and souvenir shops should be listed. The Civil Aviation Authority of the Philippines will not solely identify the concession’s award. There should be a committee to decide on that,” he said.

The New Bohol Airport is expected to accommodate 2 mill ion passengers in its opening year, a huge jump from the 800,000-passenger count currently being accommodated by the Tagbilaran airport.

Pampanga launches ‘Visita Iglesia’ campaign to push faith tourism

By Roderick L. Abad @rodrik_28

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LARK, Pampanga—Teeming with old churches and religious traditions and practices, this province in Central Luzon is encouraging devotees to come and experience the Capampangan way of reflecting the Passion of Christ this Holy Week through the “Visita Iglesia Pampanga” (VIP) campaign, an initiative led by former president and current Second District Rep. Gloria Macapagal-Arroyo aimed at rekindling the Roman Catholic faith of tourists, both local and international.

“Through Visita Iglesia Pampanga, and in support of Mrs. Arroyo’s drive to make 2018 the Visit Pampanga Year, we commit to make our beloved province one of the centers of faith tourism in the country,” Creative Travel and Tour International Managing Director Ruby Rose Rustia said during the VIP launch at Comercio Central in Clark Parade Grounds.

Pampanga has a long and strong history of being the seat of faith, especially during Semana Santa (Holy Week), with various churches proclaimed as historical landmarks built since the 1500s during the Spanish era.

While Visita Iglesia (Church Visits) is a once-a-year practice in the Philippines, the lead organizer noted that VIP is an open call “to take a spiritual journey and walk the way of the cross, not just during the Lent, but all year-round.”

“Our province is the ideal place to offer this invitation to Filipinos and the rest of the world.

Our rich history is deeply rooted in the Catholic traditions dating back hundreds of years. Many of

@awimailbox Mindanao Bureau Chief

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AVAO CIT Y—Four-star carrier Philippine Airlines (PAL) said it was studying at least two Asian cities to link this city to more international destinations after it officially declared the Davao airport its third hub.

Hong Kong and Bangkok were the most likely, said Rabbi Vin-

Landslide threat forces DPWH to close major road to Mindanao

By Elmer V. Recuerdo Correspondent

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AASIN CITY, SouthernLeyte—A major road that cuts travel time from Tacloban City to most towns of Southern Leyte has been closed for two weeks now. Chances are it will remain closed for a longer period of time as more cracks are showing, indicating the possibility of a landslide.

Department of Public Works and Highways (DPWH)-Southern Leyte District Engineering Office chief Ma. Margarita Junia said the growing cracks appeared within the 200-meter national road stretch in Pancho Villa village in Sogod town.

She added the appearance of cracks is raising the probability of the occurrence of a landslide.

The section was closed on March 14 because the landslide threat has made the road impassable, Junia said. The 200-meter road section forms part of the long highway that links the Visayas to Mindanao.

“DPWH personnel also noticed growing cracks in the area, a clear evidence of an impending landslide.

Last week the crack was only three meters. Yesterday the crack was already 8 meters,” Junia said in a statement issued on Monday.

The road section is just 6 kilometers away from the Agas-Agas Bridge, the country’s tallest bridge that connects Leyte and Southern Leyte provinces. The road stretch has been tagged as highly susceptible to landslides.

“No vehicle is allowed to pass the road section as we continue to work on preventing a major landslide and monitor the situation. We are still looking for a solution. The road will

remain closed until further notice,” Junia added.

Motorists bound for Benit port in Southern Leyte are advised to take the longer Tacloban-MahaplagBaybay-Bato-Bontoc-Sogod-Daang Maharlika-Liloan-San Ricardo road route. Another alternative is the Abuyog-Silago Road. Benit port is the region’s gateway to Mindanao.

Preliminary findings of the Mines and Geosciences Bureau (MGB) confirmed the presence of active ground movements in tension cracks, ruptured surface, and vertical displacements in the road section.

The assessment within the 200-meter stretch of the road also showed there is an increase in water discharge and water saturation from springs nearby, which caused changes in the groundwater level and an increase of water pressure.

This situation triggered a minor landslide along the road section. Increase in water seepage from gabions has been observed, as well, during continuous rain. Gabions are cages filled with rocks installed in roadsides to prevent soil erosion.

“Every data regarding the status of the area will be essential to properly address the threat of landslide and it will also be important in our restoration of the highway there,” Junia said.

The MGB highly recommends the landslide mass should be covered with barriers by excavating the overburden material, directing the surface water away from the landslide area by constructing drainage channel along the slope, and installing weep holes.

The MGB recently ranked Southern Leyte province as the seventhmost vulnerable to heavy landslides in the Philippines.

Davao Light Holy Week schedule

D

AVAO Light and Power Co.’s payment and customer services will be closed from March 29 to 31, declared as regular holidays in observance of the Lenten Season.

The electric utility’s full service centers in SM Lanang Premiere and SM City Davao in Ecoland will be available to accept payments and customer services starting on April 1, Sunday, from 10 a.m. to 7 p.m.

Davao Light’s Panabo branch will also be open on the same day, from 8 a.m. to 5 p.m.

Meanwhile, Toril, Calinan and Santo Tomas payment offices will resume their operations on April 2, Monday.

Davao Light’s contact center service will remain available 24 hours through 229-DLPC (3572).

SAN Guillermo Parish Church in Bacolor, Pampanga, is a centuries-old remnant of Christianity in this province whose population is, at most, 80-percent Catholic. This church is currently half-submeged by the mudflows of the lahar brought about by the catastrophic eruption of Mount Pinatubo in Zambales in 1991.

our customs and beliefs still reflect this influence to this very day,” she said.

As part of the promotional activities for VIP, various media organizations and tour operators in Metro Manila and other parts of the country were invited during the VIP kickoff to tour the province and visit seven of its many centuries-old churches.

These include Saint Augustine Parish in Lubao; Santa Lucia Parish, Sasmuan; Immaculate Concepcion, Guagua; Santa Rita de Cascia, Santa Rita; Saint James Parish, Betis; San Guillermo Parish, Bacolor; and San Fernando Cathedral, San Fernando.

Rustia told the BusinessMirror they are collaborating with the

invited travel-agent companies to include these religious sites and the whole province in their offerings.

“They can offer Pampanga as a destination not just for faith tourism, but we have rich history, culture, food, arts and crafts,” she said.

“We will offer very interesting packages and tailor-made them based on their place.”

Apart from the stakeholder partnership, she said a lot of municipalities have already shown their interest to cooperate, participate and collaborate with them for the VIP in the coming years.

Elated by the support of both the public and private sectors, Rustia is positive they will achieve their goal to push further and

make the province the hub of faith tourism nationwide.

In fact, she said a priest told her their church has started to receive at most five batches of pilgrims daily—of which each group has around 200 people—from Aurora province, Batangas, Bicol, Cavite and other areas within and outside of Central Luzon.

“We’re just starting to promote and develop Pampanga as a faithtourism destination and it’s happening now. We expect a lot more [tourists to come],” she said. “So I’d like to invite everybody, the people around the Philippines, especially the Pinoys abroad. Come, visit and revisit Pampanga because we have so much to offer.”

HK, Bangkok eyed for next foreign route of PAL’s Davao hub

By Manuel T. Cayon

www.businessmirror.com.ph

cent Ang, PAL EVP for commercial business development of PAL Express.

The Davao City Chamber of Commerce and Industry earlier asked PAL and the other carrier, Cebu Pacific, to mount flights to Japan, banking on the numerous residents here and nearby cities and provinces working previously as entertainers in that country.

Ang said the international des-

tinations would back the increasing connections to domestic destinations of this airport, with the country’s surfing capital, Siargao Island of Surigao del Norte, as its latest link.

PAL has destinations to Tagbilaran in Bohol and the Mindanao cities of Cagayan de Oro and Zamboanga from its Davao hub.

Ang said the addition of Siargao was part of the expansion program of PAL.

Its inaugural Siargao f light last Sunday used the 76-seater Bombardier 400, a turbo-prop aircraft, as the PAL ramped up promotions to use the Davao airport to Siargao and other destinations.

“It would now save time and money for travelers from here,” he said.

The Davao-Siargao destination would be served with four flights weekly.

Clark airport opens office for interagency task force to fight human trafficking

C

LARK INTERNATIONAL AIRPORT—“We are not for sale.

Nobody should ever be.”

Thus said Assistant Secretary Juvy R. Manwong of the Department of Justice (DOJ) as she capped her keynote address during the signing of the memorandum of agreement (MOA) creating the Clark International Airport Task Force Against Trafficking (Ciatfat) at this airport’s arrival lobby last Friday.

“Human trafficking covertly erodes the sound foundation of civil society. It derails the development of our humanity and economy by exploiting our younger generation,” she said.

Studies have shown that around 80 percent of human-trafficking victims are women and a fifth are minors. The United Nations Childrens Fund said a child is being prepared for sexual exploitation every two minutes, and 1.2 million children are being trafficked every year, excluding the millions already being held captive by traffickers. In the Philippines the Global Slavery Index data showed that, as of 2017, 401,000 are victims of human trafficking.

“These are not just numbers, not just statistics. These are humans, desecrated, violated and scorned by their fellow humans,”

Manwong said.

Among the members of the Ciatfat who signed a MOA for its inception are the Ciac, led by its Officer in Charge Alexander Cauguiran; the DOJ led by Manwong, who is also the Inter-Agency Council Against Trafficking head; Regional Prosecutor Carolyn Dumlao-Amis of the DOJ in Central Luzon; Deputy City Prosecutor Percival Atinaja; Visayan Forum Foundation Inc. Executive Director Ma. Cecilia FloresOebanda; and Angeles City Gender and Development Office head Purita David, representing Angeles City Mayor Edgardo Pamintuan.

Also signing the MOA were officers and representatives of the Philippine National Police Aviation Security Group; Philippine Overseas Employment Administration; the Department of Social Welfare and Development; the Ing Makababaing Aksyun Foundation; Bureau of Immigration; the National Bureau of Investigation; the National Intelligence Coordinating Agency Regional Office 3; and the Criminal Investigation and Detection Group-3.

Also signed during the event was the iFight Trafficking Movement that will provide a halfway house and holistic aftercare intervention for victims of human trafficking. Ashley Manabat

www.businessmirror.com.ph

The Nation BusinessMirror

Grab, Uber merger gives PHL commuters reasons to worry

By Lorenz S. Marasigan @lorenzmarasigan

L

ESSER options and higher fares.

These are some of the woes that commuters are now worried about, after learning that Grab and Uber are merging their operations in the Philippines and the rest of Southeast Asia.

As a frequent user of both ridehailing apps, Edwin Allan C. Diaz, a copywriter for a real-estate firm in Taguig, is quite worried about how the merger would affect regular commuters like him, who use the services transport network companies whenever his car is unavailable.

Monday saw Grab Founders Anthony Tan and Tan Hooi Ling announcing the Singapore-based tech giant’s acquisition of Uber’s Southeast Asia operations and assets, namely Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

The transaction was mainly a share swap deal, with Grab taking all of Uber’s shares in Southeast Asia, and Uber receiving a 27.5-percent stake in Grab, which is reflective of the companies’ respective market shares.

With the transaction, operations of Uber in the Philippines will close down by April 8.

“While I use Grab more than Uber because of their promotions, I think having only one provider will be quite limiting, as to options. I’m also a little worried about the future, since they will be the only provider left,” Diaz said in an online exchange.

Grab and Uber are the only ridehailing apps in the Philippines that allow users to book for a “private” car on a real-time basis.

With the merger, Uber drivers all over Southeast Asia will have to move to the Grab platform. This, according to Brian Cu, the country manager of Grab Philippines, will result in more Grab drivers in the app, thus the company can provide its customers with vehicles much faster.

“With a larger fleet of drivers on our platform, passenger transportation needs will be met faster.

Passengers will get to enjoy shorter waiting times, more convenient and affordable rides through one platform,” he said on Monday.

Likewise, Uber users can now enjoy the in-app loyalty program of Grab called GrabRewards, the in-app mobile wallet called GrabPay and use GrabExpress, the parcel service of the Singapore-based tech company.

Driver-partners—technically known as peers—can now expect more passengers in the Grab platform, which, according to Cu, means “more jobs, less waiting time and ultimately higher earning potential.”

The transaction will also have to be made known officially to at least two Philippine regulators: The Land Transportation Franchising and Regulatory Board (LTFRB) and the Philippine Competition Commission.

Aileen B. Lizada, a board member of the franchising body, said the agency still awaits for the

manifestation from Uber.

“We will be awaiting the manifestation to be filed by Uber in due time to address the issues pending before the LTFRB,” she said. “Rest assured that we will continue to regulate the fare structure and will monitor for the benefit of the riding public.”

Franchises issued by the government to transport network vehicle services operators—or peers—are generic, meaning they can transfer from one platform to another.

Currently, there are about 59,020 TNVS certificates of public conveniences issued by the board all over the Philippines.

“Any new TNC is welcome as long as they are accredited by the LTFRB,” Lizada stated, listing at least five new players seeking to enter the Philippine market: Lag Go, Owto, Hype, Hirna and Micab.

As for the pending fare-hike petitions before the board, Lizada said the government will hear them simultaneously on April 3.

Philippine Competition Commission Chairman Arsenio M. Balisacan noted that the two parties may have to notify the antitrust watchdog of the transaction, citing rules set out under the implementing rules and regulations of the Philippine Competition Act. “If the parties meet the new threshold, now set at P2 billion for size of transaction and P5 billion for size of party, they should notify at the PCC within 30 days after signing of their definitive agreement,” he said.

Neither Grab nor Uber disclosed how much the transaction in the Philippines was. Reportedly, Uber sold its operations in Southeast Asia to clear its books for its planned initial public offering in the United States.

Grab is one of the most frequently used online-to-off line mobile platforms in Southeast Asia. Over 5 million people use the combined platform daily.

Today, the Grab app has been downloaded onto over 90 million mobile devices, giving passengers access to over 5 million drivers and agents, the region’s largest land-transportation fleet and agent network.

Cu noted his group will continue to follow rules on fare structures and driver activation, and assured the public that his group will continue to improve its services despite the lack of competition in the Philippine market.

“I would like to reassure the government and the public that we continue to work in a collaborative and open manner, as we have done in the past. We will retain our commitment toward quality of service and continue to adhere to regulatory guidelines on activations and pricing,” Cu said.

Despite all his worries, Diaz said he will continue to use the Grab application, as it is a better option in braving the traffic congestion in Metro Manila.

“I will still use it, despite the possible increase in fares, because Grab has rarely failed me as a passenger, and I need it,” he said.

House panel asks PSA to undertake study on national ID system implementation

T

he chairman of the House Committee on Appropriations on Monday asked the Philippine Statistics Authority (PSA) to start studying the implementation of the proposed national ID system.

Panel Chairman Rep. Karlo Alexei B. Nograles of the First District of Davao City said that although Bicameral Conference Committee action still stands in the way of the measure’s enactment, the PSA could already start the process by tapping the P2-billion budget for the national ID system that had been earmarked under the 2018, P3.767-trillion national budget.

T he proposed nat iona l ID system Act is currently under t he cong ression a l bic a mera l

conference deliberations.

The House and Senate versions of a given measure is consolidated or improved under a Bicameral Conference Committee. After that, the proposed law is ratified and then readied for the signature of the President.

According to Nograles, the lower chamber assured the funds for the measure as early as June 2017, when deliberations on the 2018 national budget were yet to start.

“Let us remind the PSA to implement the measure using the budget of P2 billion we allocated for 2018.

The figure is broken down as follows: P1.9 billion for Capital Outlay [CO] and P100 million for Maintenance and Other Operating Expenses [MOOE],” he said. Jovee Marie N. dela Cruz

Editor: Vittorio V. Vitug • Tuesday, March 27, 2018 A9

DOJ chief to prosecutors in Lim, Espinosa drug case: I’m sorry...

By Joel R. San Juan

J

@jrsanjuan1573

USTICE Secretary Vitaliano N. Aguirre II, in a rather surprisingly bizarre statement, apologized on Monday to the prosecutors who dismissed the drug charges filed by the Philippine National Police against businessman Peter Lim, self-confessed drug lord Kerwin Espinosa, and 20 others for subjecting them to an investigation.

In his speech during Monday’s flag ceremony, Aguirre said some prosecutors handling drug cases are now worried that they, too, might suffer the same fate if they rule against the complaint even if there is basis for such.

“They [the prosecutors] are asking me if they will also be investigated if their resolution would go against the anti-illegal drug advocacy of the government,” the justice chief said.

“I apologize to the prosecutors for causing the investigation because extraordinary times or extraordinary incidents call for extraordinary solutions,” he added.

Aguirre admitted that his order to investigate the prosecutors was due to the “seriousness, uproar, outrage by the ignorant” which also prompted him to recall the dismissal of the drug cases.

He said the investigation is for the protection, not only of the

Office of the Secretary of Justice but also of the prosecutors.

“This is to show the authorities, to our countrymen that we are not hiding anything…and that you, the prosecutors [have] decided this case in accordance with the rules, in accordance with our proceedings,” Aguirre stated.

The justice chief earlier ordered the National Bureau of investigation to look into the circumstances surrounding the dismissal of the case.

Among those being investigated were Assistant State Prosecutor Michael John M. Humarang and Aristotle M. Reyes who conducted the preliminary investigation on the case and eventually found no probable cause to file charges before the trial court against Lim, Espinosa, convicted drug lord Peter Co, Marcelo L. Adorco, Max Miro, Lovely

Impal, Ruel Malindagan, Jun Pepito and several others known only by their aliases.

Senior Assistant State Prosecutor Rassendell Rex Gingoyon who recommended the approval of the resolution and Acting Prosecutor Gen. Jorge Catalan who approved the dismissal of the case are also covered by the probe.

In dismissing the compl a i nt, t he ju st ice depa r tment noted that it was merely based on the testimony of respondent-t u r ned w it ness Adorco who failed to offer evidence to establish probable cause to indict Lim and his coaccused in the illegal-drug trade.

The Department of Justice (DOJ) held that Adorco’s affidavits are “unworthy of consideration” due to inconsistencies and contradictions.

I apologize to the prosecutors for causing the investigation because extraordinary times or extraordinary incidents call for extraordinary solutions.”—Aguirre

Japan turns over 3 remaining TC90 patrol planes to PHL

T

Holy image

With a paintbrush in one hand, an elderly painter precariously clings to an iron scaffolding as he paints the miraculous image of the Lord Jesus Christ in Poblacion, Makati City, in preparation for the Holy Week rites. NONIE REYES

‘Weird’ tradition at PNPA as graduates take beating from own underclassmen

By Rene Acosta @reneacostaBM

I

t’s a tradition that is both nasty and out of this world.

Rather than being the ones to take to task their underclassmen for whatever breach of discipline, six fresh graduates of the Philippine National Police Academy (PNPA) were attacked by their own underclassmen in the academy.

What sparked the incident is still being investigated, although Philippine National Police (PNP) chief Director General Ronald M. dela Rosa called it an “on and off ” practice in the police academy, which, he wanted to be stopped.

“My reaction is that kind of tradition is not good. It’s sad to say, it promotes cycle of violence. If that tradition will not stop, [it may occur every year. It will happen,” dela Rosa said at a news briefing on Monday.

“I would like to make this clear, I am not a part of the PNPA. It is not under me, it is directly under

the PPSC [Philippine Public Safety College]. So my course of action was I talked to…Gen. [Joseph] Adnol, the PNPA director, that this practice should be stopped, this tradition should be stopped because it is not good,” he added.

The six PNPA graduates were reportedly packing up their personal belongings at the barracks of the PNPA in Silang, Cavite, after their graduation when they were attacked by their underclassmen, prompting them to be sent to the hospital due to injuries.

It was the first time that such an incident between the graduates and the members of their underclass was reported to the public in the police academy, although such a tradition was recurring or an on and off practice, according to dela Rosa.

The incident is already being investigated by the police and even by the leadership of the PNPA, which according to the PNP chief, should file charges against the suspects if needed.

Adnol has offered to resign his

post, but dela Rosa prodded him to stay on, but must ensure that the incident would not be repeated.

Dela Rosa said former graduates of the academy have told him that the practice irregularly occurs.

“I have talked to several alumni, they told me, sir, that is absent during our time, it disappeared. Others said, sir, that is present during our [term at the academy, but it [had] stopped,” he said.

“I talked to several members of the PNPA alumni association and they are all for the stoppage of this kind of tradition,” dela Rosa added.

The PNP chief’s son, Rock, is a cadet at the PNPA. The PNP chief said he had talked to the parents of four of the six injured graduates and “advised” them to allow the PNPA to handle the problem as it is an internal matter.

“But then again, we cannot stop the complainants from filing criminal charges against the suspects if they really want to do that because that is their right,” dela Rosa said.

he military accepted from the Japanese government on Monday three maritime patrol and surveillance planes, which, along with the two similar aircraft that have been delivered, were donated to the country.

“The transfer of these TC90 aircraft was originally a lease contract, but was changed into a grant pursuant to the Letter of Agreement we signed in November 2017 with the Japan Ministry of Defense [JMOD],” Defense Secretary Delfin N. Lorenzana said during the ceremony.

“We are very thankful for this grant project of the JMOD following the amendment of Japan government’s Self-Defense Force Act which allows the donation of excess defense and military equipment to partner countries such as ours,” he added.

The three TC90s were delivered and transferred by the Japan Maritime Self Defense Force (JMSDF) through the JMOD through the ceremony held at the Naval Air Group Headquarters in Sangley Point, Cavite, in an occasion graced

by Lorenzana and attended by other top defense and military officials from both countries.

In March last year the JMSDF transferred two TC90s to the Philippine Navy, but the Japanese government decided in November last year to just donate the aircraft to the Armed Forces of the Philippines.

One of the aircraft carried out its maiden patrol over the Scarborough Shoal in January this year.

The Department of National Defense originally signed a contract for the leasing of five TC90s from Japan before the JMOD decided to donate them instead to the Philippine Navy.

Lorenzana said the arrival of the last three planes underscored the need for the military to boost its equipment as it pursues its capability upgrade project through the Armed Forces modernization program.

“We must admit that much still has to be done to boost our military capability equipment in order to meet a number of persistent maritime security challenges,” he said. Rene Acosta

A10 Tuesday, March 27, 2018 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

Extreme measures

W

hen the Duterte administration was elected into office, one of its proposed measures to solve the horrendous traffic problem in Metro Manila was to ask for emergency powers to enable government authorities to fast-track solutions.

When Muslim extremists attacked Marawi City in 2016, President Duterte declared martial law there. Not satisfied with just a Marawi-wide martial rule, he decided to expand this to include the entire Mindanao.

And so it comes as no surprise that government agencies charged by the President to rehabilitate Boracay have also recommended similar extreme measures in dealing with the environmental and easement problems caused by resorts and other commercial establishments in the island.

Last Friday Task Force Boracay, headed by Environment Secretary Roy A. Cimatu, with Interior Officer in Charge Eduardo M. Año and Tourism Secretary Wanda T. Teo as members, sent a letter to President Duterte, recommending a “closure of the island from entry of local and foreign tourists,” six months from April 26, 2018.

Earlier, Año also asked the National Disaster Risk Reduction and Management Council to recommend that President Duterte declare a state of calamity in Boracay, supposedly to allow national government agencies to make do without the tedious bidding process and instead go directly into negotiated contracts with suppliers and contractors, to speed up the rehabilitation of the island and build vital infrastructure, such as a diversion road and complete sewage system.

We, of course, support Boracay’s immediate rehabilitation. But just to put things in perspective, the so-called easement violations of some resort owners could be addressed simply by demolishing the illegal structures in no-build zones, which include the main white beach, the forests and the wetlands. For instance, Hennan Resort recently dismantled the 18-foot steel poles it had put up on their beachfront, where they attach massive windbreakers to help protect the resort from typhoon-force winds. The poles were gone in a day.

The sewage problem, admittedly, may be a little more difficult to handle, but notices of violations have already been issued to establishments that had illegally connected to a rainwater drainage pipe that carried their sewage effluents out to Bulabog Beach. They have already been told to build their own septic tanks or connect to the main sewer line, both of which can be completed without delay. The local and provincial governments have also committed to fix the drainage system on the island, which would be finished by May 31, as per their project timeline.

Experts note, however, that even with negotiated contracts there is no way the sewage system can be completed in a year, from the original completion date of 2022.

Still, there are many projects that can be accomplished without totally closing the island.

If a total closure is warranted, many stakeholders would actually welcome this for two months, preferably during the monsoon season, or anywhere between July and September. The Department of Tourism’s own data bear this out: Between July and September, the average number of arrivals in Boracay is about 150,000, dipping to as low as 125,000 in September last year. By October, the number of tourists starts picking up, hitting as high as 200,000 in April and May, during the summer break.

We tend to agree that a closure of two to three months is sufficient even as Boracay’s rehabilitation would be conducted continuously and year-round. There is no need for overkill. Cimatu and Año, both military generals, must be aware that even in an intensive military operation, in pursuit of the enemy, there is a need to minimize the impact on noncombatants and reduce civilian casualties.

In Boracay’s case, the government’s mission of rehabilitating the island need not result in so much collateral damage: the economic displacement of close to 100,000 workers and their families, and another 100,000 that include residents, informal businesses, and suppliers to the island like farmers as far as Benguet, and fisherfolk from Panay and Palawan. The closure will also affect the many airlines that carry local and foreign tourists who want to see what the “Best Island in the World” has to offer.

By all means, clean up Boracay. If it must be closed, then close it. We hope, however, that President Duterte keeps the period of closure as short as possible, to minimize the negative economic impact on the island’s residents and workers, as well as its attendant industries. The President can still show that the government is tough in dealing with environmental problems, but he can also show that it cares for the people who will be most affected by this closure.

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THE Entrepreneur Continued from A1

A

nother good news: FDI in manufacturing accounted for $1.15 billion of total FDI in 2017, and represented an increase of 244 percent compared to $334.25 million posted in 2016.

The BSP said manufacturing had been the major destination for foreign direct investments last year, together with gas, steam and air-conditioning supply, real estate, construction and wholesale and retail trade.

This trend is also reflected in trade statistics. According to the Philippine Statistics Authority (PSA), imports of raw materials and intermediate goods (which are used in the manufacturing subsector) comprised the largest share of 40.9 percent of total imports in January 2018. The amount went up by 14.9 percent to $3.49 billion in January 2018, from $3.04 billion in January 2017.

Semi-processed raw materials, valued at $3.12 billion, accounted for 36.6-percent share of the commodity group. Import of this commodity increased by 20.4 percent from the $2.59 billion posted in January 2017.

Imports of capital goods in January 2018 amounted to $2.73 billion, accounting for a 32-percent share of the total imports. It went up by 16.9 percent over the previous year’s import value of $2.33 billion.

This is a very pleasant thing to note, not only because of the contribution of manufacturing to economic growth, but also to employment. I want to point out that while we are still developing our industrial capacity, manufacturing is already a very big employer.

Based on the latest Labor Force Survey (LFS), the country’s employment rate stood at 94.7 percent as of January 2018. Workers in the services sector comprised the largest proportion (55.9 percent) of the population who are employed.

Workers in the agriculture sector comprised the second-largest group, making up 26.0 percent of the total employed in January 2018, while workers in the industry sector made

up the smallest group, registering 18.1 percent of the total employed.

In absolute terms, the number of employed Filipinos as of January 2018 totaled 41.455 million, with the services sector accounting for 23.173 million workers; agriculture, 10.778 million; and industry, 7.503 million.

The January 2018 LFS results also showed that in the industry sector, workers in the construction and manufacturing subsectors made up the largest groups, accounting for 48.2 percent and 47.0 percent of the workers in these subsectors, respectively. These translate to 3.617 million construction workers and 3.526 million workers in the manufacturing subsector.

That compares well with the 1.7 million estimated number of workers in the business-process outsourcing industry in 2017.

Countryside development, including industrial dispersal, has been a primary policy thrust of President Duterte since he assumed office in 2016.

The government’s massive infrastructure development program, which is in line with that policy, will open up new areas in the provinces where manufacturing investments are expected to come.

The worsening congestion in Metro Manila is also expected to encourage investors to look for alternative locations for their factories.

Also, the Philippines continues to enjoy investor confidence. According to a US News & World Report published early this month, the country has continued to attract

Why the PSE is going down John Mangun

Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Efleda P. Campos Dennis D. Estopace

Online Editor Social Media Editor

Chairman of the Board & Ombudsman President VP-Finance VP Advertising Sales Advertising Sales Manager Group Circulation Manager VP HR and Admin

Getting closer to industrialization dream

OUTSIDE THE BOX

A

round the turn of the century—the 21st century (I’m not that old)—it became clear that I had seen this movie before. Maybe it was the hysteria about the Y2K computer situation. Remember when we were warned that airplanes would fall from the sky, as old computer operating systems could not figure out what to do with year 2000.

There had been too many instances of “end of the world” scenarios from the population bomb to nuclear war Armageddon over the past 50 years.

When one or another did not come to pass, another gloom-and-doom came to the headlines. It is like those religious cults that are always predicting a particular date for the end times that have to keep moving Judgment Day forward into the future.

The realization came that the world must be put into historical perspective, a term that I have ranted and raved about for years. When I heard

my four sons talk with some apprehension about current events, I could easily remind them that I had heard this before when I was their ages.

On June 24, 1812, the largest army ever assembled in the history of warfare up to that point began an invasion of Russia. This act of war was to compel Russia to stop trading with the British in an effort to pressure the United Kingdom to beg France for peace. Big mistake.

The disaster of the invasion did change the world for both France and Russia. Napoleon was no lon-

ger the military genius everyone thought and Russia realized it could effectively kick butt on a massive invading army.

Almost to the exact day 124 years later, Nazi Germany began its invasion of the Union of Soviet Socialist Republics with the same result. Russia wins and the other guy loses, changing the course of history. You might have thought that some general in Hitler’s army would have read about what happened when Napoleon invaded Russia.

Historical perspective.

The bible says that “What has been will be again, what has been done will be done again; there is nothing new under the sun” and that is true if you take the time to look to the past.

Since January, when the Philippine Stock Exchange Composite index (PSEi) reached an historic high above 9,000, the stock market has been going down. According the experts, the reasons for this decline—in no particular order of importance or chronology—are as follows: the weakness of the Philippine peso, the Philippine inflation rate, fear of a US interest-rate increase, fear of a Philippine interestrate increase, an actual US interestrate increase, Philippine tax reform,

investments, despite the overall decline in inflows to other countries in Southeast Asia.

Based on a survey of more than 6,000 business decision-makers, the report said the Philippines is the best country to invest in 2018, and is expected to continue receiving FDI from powerhouse countries like China, which are looking for competitive labor in developing nations.

In its study, the US News & World Report focused on the following attributes of a country: entrepreneurship, economic stability, favorable tax environment, innovation, skilled labor, technological expertise, dynamism and corruption.

If the upward trend in FDI inflows in manufacturing continues this year, then we can say that, finally, we’re getting closer to our goal to become an industrialized nation.

This is what we need for a more balanced development. Manufacturing offers employment opportunities to workers who have not finished college education, which would have barred them from getting white-collar jobs. Yet, jobs in the manufacturing subsector are generally fairly compensated and provide security of tenure.

My point is, manufacturing helps the economy provide employment opportunities across all sectors of the population, so that no Filipino who wants to make a decent living is left behind.

Isn’t that we all want?

For comments, e-mail mbv.secretariat@gmail. com or visit www.mannyvillar.com.ph.

US-China trade war, the potential of war in Korea, profit-taking, the elections in Italy, a “White House cabinet shake-up,” and “risk aversion.”

That is 12 different reasons for each of the 12 weeks (eight down) of stock trading thus far in 2018. Some may find this hard to believe, but there was stock trading on the PSE prior to 2018 and we have seen this all before.

In 2017 the PSEi was higher every month with the exception of three months of slightly down or sideways movement. We had one month when the PSEi dropped by 1.3 percent.

Otherwise, it was a one-directional upward market.

But the key to the deal is the same thing happened in 2014 going into 2015, 2012 into 2013, and 2007 into 2008. And after each of these large oneway yearly up moves, the PSEi went down. This was before the reasons mentioned above were in the headlines. Historical perspective. What goes up must also come down.

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

Opinion BusinessMirror

www.businessmirror.com.ph

Tuesday, March 27, 2018 A11

Donald J. Trump: Man at war Reducing wealth inequality by taxing land and bequest

A

By Charles M. Blow | New York Times News Service

S Richard Haass, president of the Council on Foreign Relations, tweeted last Friday: “@realDonaldTrump is now set for war on 3 fronts: political vs Bob Mueller, economic vs China/others on trade, and actual vs. Iran and/or North Korea. This is the most perilous moment in modern American history—and it has been largely brought about by ourselves, not by events.”

I agree fully with this assessment.

Some have viewed Trump’s recent moves as a sign of rising selfassuredness in the man.

I see quite the opposite. I see a man growing increasingly irascible as his sense of desperation surges.

The world is closing in on Trump and he is in an existential fight for his own survival.

This is precisely what makes him so dangerous: As the personal threat to him grows, his threat to the country grows. The power of the American presidency is an awesome power, and Trump will harness and deploy it all as guard and guarantee against his own demise.

Add to his sense of panic his compounding emotional and psychological liabilities: He has an inflated view of his own skills, talents and expertise. He knows only a fraction of what he has convinced himself that he knows.

He prefers casual conversation to literary examination, opting to listen rather than to read, which is both a sign of a severely compromised and restrained intellect and an astounding arrogance about one’s information absorption.

While pundits mull whether the cloud of chaos Trump keeps swirling around him is simple incompetence or strategic plotting, The New York Times reported last Friday: “Aides said there was no grand strategy to the president’s actions, and that he got up each morning this week not knowing what he would do.

Much as he did as a New York businessman at Trump Tower, Trump watched television, reacted to what he saw on television and then reacted to the reaction.”

This is all gut and instinct. This is all reactionary emoting by a man of poor character, one addicted to affirmation. He desperately needs to be the king-of-every-hill he sees in the mirror: He was the ladies’ man, businessman, smartest man, toughest man. There was nothing beyond him, and he didn’t have to follow the rules, he only had to follow his instincts.

But Washington politics is a long way from New York City real estate.

Wrangling Senate votes is a long way from prowling for playmates. This is the big leagues and this little man is feeling the stress and strain of it.

Even if he can’t be good, he at least wants to look good, to fake it to try to make it. This may be one of the reasons he is inviting so many television personalities into his Cabinet.

This is all just window dressing.

Trump is truly in the cross hairs, and he knows it.

Just as he is going to war on three fronts, he is being attacked on three fronts.

The Robert Mueller investigation is bearing down on him as an inevitable in-person interview with Trump—and all of its potential pitfalls—draws nearer. I have resisted predictions about what could come of the investigation because it would be little more than conjecture. Only Mueller knows what Mueller knows.

But, it appears to me that the president is surely acting like a guilty man, or at least someone trying to shield another who is guilty.

Then there is the porn star, the playmate and the reality star: Three women in litigation over sexual contact with Trump—two admittedly consensual and one allegedly not.

The most tantalizing and threatening of the three is the case with porn star Stephanie Clifford, whose stage name is Stormy Daniels. Daniels and her lawyer, as well as language in the nondisclosure agreement that she signed, suggests that she has some compromising written and photographic evidence about her encounters with Trump.

Furthermore, in Daniels, Trump seems to have met his match as an Internet troll. When someone on Twitter asked Clifford, “What snack foods do you recommend for watching you on 60 Minutes tomorrow night? Nachos and wings feel so January, you know?” Clifford responded: “Tacos and mini corndogs just seems so right...and yet, so wrong. I believe the more traditional choice is popcorn, however.”

Yes, the subtext of that tweet is exactly what you think it is. Note to self: Never pick a fight with a porn star.

And now with the massive March For Our Lives, we see that going into the midterms not only are black voters and suburban white women energized against this president and his congressional protectors, so are young people who feel betrayed, particularly on the issue of gun control, by politicians beholden to the National Rifle Association (NRA).

Trump talked big about standing up to the NRA, and then summarily caved to the NRA. If this surge of enthusiasm leads to Democrats flipping the House— and the long shot, the Senate—and something comes of the Mueller investigation or the women’s lawsuits, you can rest assured that impeachment proceedings will be in the offing. This is why Trump is going to war.

Cecilio T. Arillo

database

A

policy package of bequest taxes and land-value taxes could be the optimal solution to reduce wealth inequality without diminishing the economic performance of a country, the Potsdam Institute for Climate Impact Research or PIK said in a study shared to Database last Thursday.

The new study, now also published in the journal International Tax and Public Finance, would, in fact, have a strong advantage over corporate taxation. It is the first study to include the neglected factor of land for tackling wealth inequality.

“Land is of great interest for studying inequality as climate change might increase land prices and thereby affect housing costs. The cost increase could be countered by smart taxes that would at the same time reduce overall inequality in a country, and hence possibly help to reduce tensions in society that are amplified by populism,” the PIK said.

“Surprisingly, land was ignored in economic studies of wealth inequality since the 1960s, though we have seen enormous increases in the value of land. So in our study, we include this crucial factor for wealth development and distribution,” PIK lead author Max Franks said.

“Climate change will likely make land more expensive. Either, unmitigated global warming caused by fossil-fuel emissions will expose land to the risk of droughts and f loods or, if decision-makers choose to mitigate climate change, land will be used for biomass plantations and wind parks and the like.

In either case, land will become scarcer and thus more expensive— and land speculation by investors will drive up housing prices even further,” he said.

Narrowing the gap between rich and poor is one of the UN’s

Sustainable Development Goals, the PIK stressed.

“In our study, we have, therefore, investigated how the issue of rising land prices could be addressed. Governments have considerable freedom in reducing wealth inequality without sacrificing economic performance,” Franks explained.

“The result of our rather complicated conceptual calculations is quite simple: it would make sense to introduce a policy package of landvalue taxes and bequest taxes—also allowing to reduce corporate taxes or the value-added tax along the way,” he added.

Taxing land triggers investment

The PIK said: “A land-value tax would have two main effects. First, it would be an incentive for investing money in productive capital, for instance in industry, whereas investing in land, and in particular land grabbing, would be less profitable.

The rise in productive capital investment would hence directly increase economic output.”

“Second, land value taxes—which are only based on the unimproved value of land, disregarding the value of buildings—would prompt a more efficient use of land. Leaving land vacant would, due to land-value taxation, result in the owner losing money; therefore, building apartments, for example, to generate income from rents, becomes more attractive. This could even help to mitigate housing shortages.”

The PIK said: “A land-value tax would have two main effects.

First, it would be an incentive for investing money in productive capital, for instance in industry, whereas investing in land, and in particular land grabbing, would be less profitable. The rise in productive capital investment would hence directly increase economic output.”

“The conceptual study shows how governments can help everyone to attain his or her fair share of the pie without shrinking it,” Franks said.

For this purpose, other authors, David Klenert, Anselm Schultes, Kai Lessmann and Ottmar Edenhofer, compared taxes on capital income, bequests and the value of land.

Bequest taxes help to reduce inequality, yet additional regulation is needed

The PIK study is based on a consensus in the economic literature that bequest dynamics are a major determinant of the distribution of wealth. Hence, taxing bequests would redistribute wealth.

Yet, if only an additional tax on bequests was introduced, it could also harm future economic output since it could discourage households from saving.

“A reduction of saving on a national scale, however, would mean that banks have less funds available to pass on to businesses as loans— ultimately reducing national investments. To counteract that tendency, a bequest tax has to be combined with a land-value tax, which makes investment in land less lucrative and ensures that savings are directed toward productive investments,” the study said.

“A further possible measure to stimulate the economy would be a moderate corporate-tax cut offset by the additional public revenues from taxing bequests and land,” the PIK stressed.

“However, additional regulation

P

ublic companies in the United States have to make public filings—annual and quarterly reports on Form 10-K and 10-Q, announcements of material events on Form 8-K, descriptions of trading by insiders and big shareholders, etc.—on the Securities and Exchange Commission’s (SEC) Edgar web site.

Should you read them? For amateur investors that is, perhaps, a difficult question: There is an obvious conventional wisdom that you should read them so you can be informed about the companies you invest in, but there is also an argument that reading SEC filings gives casual retail investors merely the illusion of competence.

After all, these filings are publicly available and you are competing with professionals whose only job it is to analyze stocks; surely those professionals are also reading the filings and then also doing a lot of other research that you just can’t do.

On the other hand, if you yourself are a professional stock investor, sure, go ahead and read the filings. The company is telling you what it thinks you need to know about its operations and finances, so you should probably take a look. It’s not going to give you a huge advantage

over anyone else—everyone else can read the filings too—but it seems like the sort of bare minimum work you’d do to understand a company before investing in it. Right?

Here is kind of a wild paper from Alan Crane, Kevin Crotty and Tarik Umar of Rice University called “Do

Countering the rise of inequality also means countering populism

“Interestingly, our analysis finds the greatest positive effects for economic output and wealthinequality reduction if the tax proceeds are used for transfers to the young generations who invest it into better education, found a family, or start a business,” said Ottmar Edenhofer, coauthor of the study, emphasizing further that: “Smart taxing of bequests and land can, thus, help to reduce both intra- and intergenerational wealth inequality.”

“We see a widening gap between rich and poor in many societies, an increase in the volumes of bequests and a strong increase in land value,” Edenhofer explained.

“If policy-makers take the sustainable development goals of poverty eradication inclusive growth, inequality reduction and sustainable cities seriously, they will need a balanced strategy. This becomes even more important in times when populists exploit middle-class fears and societal tensions. Public finance is an important means to get to the root of the problem,” he concluded.

To reach the writer, e-mail cecilio.arillo@gmail. com.

Don’t slam the door on Chinese students

A

S part of its continuing campaign to prevent China from stealing American intellectual property, President Donald J. Trump’s administration is considering restrictions on the number of Chinese citizens enrolled at United States colleges and universities. Targeting foreign students will undermine US competitiveness, not enhance it.

Of the 1 million foreign nationals enrolled at United States schools, nearly one-third are from China— double the number of any other country. Chinese students receive 10 percent of all doctorates awarded in the US, most of them in science and engineering. Some 80 percent of Chinese doctoral holders stay in the

United States and work after they earn their degrees. There are more Chinese engineers working on artificial intelligence at US technology companies than in all of China.

The gains to the United States economy aren’t limited to Silicon Valley. Chinese students spend at least $12 billion a year on tuition and living expenses—money that supports hundreds of thousands of jobs in and around college campuses. High fees for international students subsidize tuition for US citizens and—until recently—have helped public universities offset cuts in government funding.

Such benefits are largely dismissed by those who cast Chinese students

in the United States as nationalsecurity threats. Trump’s National Security Strategy calls for the government to consider restrictions on “foreign STEM students from designated countries to ensure that intellectual property is not transferred to our competitors.”The US can and should do more to counter Chinese theft of American trade secrets. But only a tiny fraction of students from China have ever been charged with illegal activity. Singling them out would be both discriminatory and dangerous, potentially fueling suspicion of law-abiding Americans of Chinese descent.

The most sensible strategy to protect the country’s intellectual prop-

Hardworking hedge funds might have the upper hand

By Matt Levine | Bloomberg View

would be needed to distribute the tax burden fairly. In particular, many middle-class households have a high share of land in their asset portfolio since they own a house and only comparably little financial wealth.

To avoid a further tax burden on the middle class, a land-value tax allowance could be established,” argued coauthor David Klenert from the Mercator Research Institute on Global Commons and Climate Change.

“Moreover, regulation would be needed to make sure that landlords do not pass all of the land value-tax costs on to their tenants. Still, despite the complexity of both the side effects of the taxes and the policies needed to limit them, our conclusions are robust,” Klenert explained.

Hedge Funds Profit From Public Information?” that looks into whether hedge funds download filings from Edgar, and whether it helps. On the first question, some do, some don’t, and “while the median fund-month download amount is only four filings, the mean is 672.” On the second question, it helps: Hedge funds that access any filing have higher abnormal returns in the next month compared to funds that do not access filings. The result is statistically significant and economically large, representing a difference in abnormal returns of about 1.5 percent per year. More intensive information acquisition is also associated with higher subsequent abnormal returns, with the above-median users generating 2-percent-per-year higher returns than non-users.

It is hard to know what to make of that. One obvious interpretation is that markets do not efficiently incorporate the most basic public information into stock prices, and

if you go and read companies’ public filings you can outperform the market. A flip side of that interpretation is that some hedge funds do not do that most basic part of their job, and that if you don’t bother to read companies’ public filings then of course you are going to underperform your peers.

But other interpretations are available. For instance, the paper does not seem to be limited to fundamental long-short equity hedge funds, where actual reading of filings would be most relevant, and you could imagine that “number of Edgar downloads” might mostly index what style of fund you are rather than how seriously you take your job. A quantitative macro fund— or an international stock fund for that matter—would not use Edgar much; a fundamental US equity fund would use Edgar a medium amount; a quantitative equity fund might scrape hundreds of Edgar documents a day. (“Even within funds, perfor-

mance is better in periods when those funds access more,” write the researchers, which “suggests that the relation we observe is more than just an indicator of fund type.”)

There are confounding factors.

The sample of “hedge funds” seems both over- and under-inclusive.

There are lots of ways to get Edgar filings without accessing Edgar —from the Bloomberg terminal, for instance, or from the companies’ own web sites—so it’s not clear that actual Edgar download activity is a good indicator of use of public filings.

And it’s not clear that there’s a causal relationship between the outperformance and the downloading. Still it is an odd result. You would expect this sort of basic public information to be disseminated so widely and efficiently that you couldn’t beat the market just by reading it. But, perhaps, you can.

But here’s another wild thing about this paper: You can go find out which hedge funds accessed which

erty isn’t to keep talented foreign students out, but to encourage them to stay in the United States and put their knowledge to use—by joining the work force or starting a business.

That’s the purpose of the Optional Practical Training program, which allows foreign students who earn degrees in technical fields to work in the US for up to three years. The Trump administration, true to form, wants to cut the program instead.

Whether the president imposes new quotas on Chinese students, the goal of some of his advisers seems clear: to make “designated” foreigners unwelcome on United States campuses. That’s not only un-American, but also self-defeating. Bloomberg View

documents on Edgar. I mean, that seems wild to me, but the authors’ literature summary mentions several other papers that use the same technique. In each case researchers use public records to figure out which hedge funds own which IP addresses, and then match the IP addresses to Edgar traffic logs that the SEC makes available. (Here they are.) The Edgar logs are posted quarterly with a six-month lag, and you can’t necessarily match up every hedge fund with an IP address, so you can’t find out, say, what companies Dan Loeb or Bill Ackman are looking at today.

But you can at least find out what companies some hedge funds were looking at a year ago, and what sort of research they did. It might tell you interesting things about their investing processes. I would definitely read a second-order paper examining usage of the Edgar logs: Can hedge funds profit from looking at data about what other hedge funds are looking at?

2nd Front Page BusinessMirror

A12 Tuesday, March 27, 2018

Compliant resorts can remain open during Boracay closure, but…

By Ma. Stella F. Arnaldo

C

@akosistellaBM Special to the BusinessMirror

OMPLIANT resorts in Boracay will be allowed to operate after April 26, the possible date of closure of the island. The punch line is, tourists won’t be able to set foot on it and will be physically blocked at the jetty port, according to an official of the Department of the Interior and Local Government (DILG).

“We’re not shutting down the businesses on the island, that’s clear,” DILG Assistant Secretary for Plans and Programs Epimaco V. Densing III said in an interview

with CNN Philippines’s The Source.

“Those who are compliant can still be open. Those who are noncompliant, we will close them. The irony is, we will block their guests at the

Alegre: “If the airlines can do it [issue refund], why not the hotels and resorts, and tour operators?”

jetty port. We will have a system where foreign and local tourists will not be allowed to enter the island.

[Compliant resorts] can operate; they just won’t have guests.”

This developed as the Department of Tourism (DOT) said it was already reaching out to popular online travel-booking sites to help tourists rebook their vacations in Boracay without penalty.

In text message to the BusinessMirror, DOT Assistant Secretary for Public Affairs, Communications and Special Projects Frederick M.

Alegre said: “Communications with them are ongoing. We started with TripAdvisor because we have an ongoing project with them.”

Other popular booking sites include Agoda, Hotels.com and Booking. com, which have varying policies on issuing refunds for customers, which depend on a site’s agreement with the individual hotels.

But he expressed confidence that these booking sites will allow refunds due to “force majeure, because it’s a much-needed environmental cleanup from humaninduced damage.”

He added that local airlines have already said they would issue refund on tickets issued to Boracay-bound passengers and waive rebooking fees. “If the airlines can do it, why not the hotels and resorts, and tour operators?” Alegre asked.

See “Boracay,” A2

Puno sees federalism shift done by 2022 Continued from A1

constitution before these autonomous regions will be developed into states and we cannot put definite timeline on how they can evolve into full states.”

The Con-com, Puno added, will propose transitory provisions that will make it easier to transform to a regular federal government. “If you look at the transitory provisions of different constitutions, it did not take a lot of indefinite time to be able to go to a regular government. I like to think that will also happen in the constitution that we shall be proposing.”

Puno also stressed that the Con-com is not inclined to give any holdover provision for the President or any other official by the time the country has shifted to a federal form of government, as the term limits under the 1987 Constitution will still be binding.

He also said it is “almost impos-

View from city garden grand hotel The Makati skyline, as viewed from the City Garden Grand Hotel, shows how old and smaller buildings are giving way to skyscrapers, as demand for office and residential units in the country’s premier business district continues to grow. Nonie Reyes

sible” that a plebiscite on the amendment of the new Constitution will happen by October this year.

“I think it’s almost impossible to have this new Constitution approved by the people by October of this year,” he said.

“Congress would still have to

convene as Con-ass [constituent assembly], and until now, the Senate has not agreed to join the House in Con-ass. Assuming the Senate agrees, I supposed that will take some time.”

The Senate, Puno noted, is also poised to become an impeach-

ment court to hear the impeachment case of Chief Justice Maria Lourdes A. Sereno.

“I do not see how the month of October will be imagined as the date that the constitution will be given to the people and ratified by the people,” Puno said.

www.businessmirror.com.ph

Alimony, abuse, women’s rights and other divorce issues Continued from a1

The amount is not stated in the bill, but will be determined by the court and based on the capacity to pay of the spouse. This will be on top of child support, which will also be granted by the court pursuant to the provisions of the Family Code of the Philippines.

“While the State continues to protect and preserve marriage as a social institution and as the foundation of the family, it shall also give the opportunity to spouses in irremediably failed marriages to secure an absolute divorce decree under limited grounds and welldefined judicial procedures to terminate a continuing dysfunction of a long broken marriage; save the children from the pain, stress and agony consequent to their parents’ constant marital clashes; and grant the divorced spouses the right to marry again for another chance to achieve marital bliss,” HB 7303 stated.

Only for the rich?

Due to the economic consequences of divorce, particularly alimony and child support, there are some people who regard this as something that is only for the rich.

However, National Economic and Development Authority (Neda) Undersecretary for Planning and Policy Rosemarie G. Edillon said, alimony is only a means to elicit responsibility from spouses.

Edillon added that while the Neda does not have an official position on the divorce bill, she believes the measure is not about who can afford it or not, but it is more about the responsibility and accountability of involved parties.

“The part about alimony is really to exact accountability and responsibility. It aims to make sure that parties left behind will be cared for,” Edillon said. Philippine Institute for Development Studies Senior Research Fellow Jose Ramon G. Albert said divorce can even be beneficial for the poor.

Albert said allowing divorce in the Philippines will help poor families that are already saddled with limited resources to reduce their stress, especially if their family life is also difficult.

“My perspective is that the poor probably have more difficulties, stresses in family life because somehow in terms of resources, they have fewer resources. So, in some ways, this will still be somewhat positive for them,” Albert said.

Women empowerment

Central to the issue of divorce, proponents of the bill say, is women’s rights. Albert agrees and said divorce offers abused women a way out of an abusive relationship.

Based on the preliminary findings of the 2017 National Demographic and Health Survey (NDHS), 1 in 4, or 26 percent, of ever-married women aged 15 to 49 has experienced physical, sexual or emotional violence

inflicted by their husband or partner.

One in 5, or 20 percent, of these women experienced emotional violence, while 14 percent experienced physical violence and 5 percent experienced sexual violence by their current or most recent husband or partner.

“As observed, the percentage of women who have experienced violence in physical, sexual, and/or emotional form, from their husband declines slightly with women’s age,” the PSA added.

The NDHS data also showed women who are separated or widowed are more likely to have experienced all forms of violence by their most recent partner, compared with women who are married or living together.

Around 53 percent of separated or widowed women have experienced physical, sexual or emotional violence, compared with 24 percent of women who are married or living together.

It is also worth noting that women belonging to the second wealth quintile, which is the second-poorest group in the population, reported the highest incidence of physical abuse at 25.6 percent.

The Philippine Legislators’ Committee on Population and Development (PLCPD) considers divorce as an opportunity to advance women’s rights and gender equality.

The divorce bill, along with other proposed legislation, such as the expanded maternity leave and antidiscrimination on the basis of sexual orientation and gender identity and expression, are welcome developments. “[The movement of these bills] gives us hope of seeing these new laws passed within the 17th Congress. This year Congress is also set to embark on a review of the RH [reproductive health] law to see how its implementation can be improved,” PLCPD said in a statement during the celebration of International Women’s Day.

Implications

Albert said there is a need for greater vigilance since bills, such as HB 7303, can contribute to measures that weaken the social fabric.

Further, Albert said the government should also explore designing a socialprotection program to help women who are not breadwinners—or do not have their own incomes—enter or reenter the workforce.

However, Edillon said the government currently has a number of socialprotection mechanisms for women, as well as existing laws that can help protect them from abuses.

Another implication if this bill is passed, Edillon added, is that it can place further pressure on the church to “advocate for stronger families.”

Ultimately, there is no telling how exactly divorce can impact the lives of Filipinos. The only way to tell is for the country to pass the law. But, whether it is worth the risk or not cannot be ascertained at this point.

After Cambridge Analytica, data privacy is a must Continued from A1

All this comes as further confirmation of how we are turning the wondrous informational resource that is the Internet into a cyber cesspit, where Russian trolls, Islamist terrorists and corporate and political lobbyists peddle bile, propaganda and lies.

It is clear that the data sucked out of our connected devices can easily be used to deduce our political orientation. Whoever accesses that data, therefore, controls the most powerful political technology ever created. Part of the problem is that both the informational superstructure and the data substructure of our age lie in the hands of

the so-called private superpowers, such as Facebook and Google, which have never fully acknowledged their responsibilities, still less lived up to them.

Soon after the 2016 presidential election, Mark Zuckerberg, Facebook ’s chief executive, said it was a “pretty crazy” idea that his company had affected the outcome. We know differently now and even Zuckerberg has backed down.

In his recent message about the state of the World Wide Web he created 29 years ago, Sir Tim Berners-Lee noted that the dominant tech platforms act as our informational gatekeepers controlling which opinions and

ideas are seen and shared around the world. But these companies have been built to ma ximize profits rather than optimize social good. Their business is to encourage advertising-generating clicks rather than democracyenhancing content.

If market forces will never compel these companies to reorient their goals, then governments can be expected to do so for them, particularly in Europe. The German government has already implemented a law slapping heavy fines on platforms that fail to take down illegal content sufficiently quickly. In May, the EU’s 28 member countries will adopt the General Data Protection Regulation,

constraining the exploitation of personal data. In the Philippines the data protection is in place already after the Data Privacy Act was signed into law. The nuclear option would be to reclassify such platforms as publishers, making them as responsible for the content they host as newspapers or broadcasters.

But before we blame everything on the platforms, we should examine our collective complicity, too.

We humans are more responsible than the bots for fanning false news and boosting the market value of lies. A recent study, published in Science, found that flesh and blood users enthusiastically spread false news because it was

more novel or elicited stronger emotional responses, such as surprise, disgust or fear.

In a study of thousands of “information cascades” on Twitter between 2006 and 2017, the researchers found that falsehood diffused significantly farther, faster, deeper and more broadly than the truth.

We all debase the currency of truth whenever we repost false news. But it would undoubtedly help if the algorithms were designed to work in our broader societal interests, rather than against them. If we want to avoid our societies splintering, our politics polarizing, and the value of reason and evidence being further deval-

ued, then we all need to fight for a freer, fairer and more accountable informational resource.

Do we need to reinvent the Web? Do we have to cut Facebook and Google into pieces? Zuckerberg’s lame apologies are just not enough. Facebook has basically been giving away user data like it was handing out candy. We certainly have to fight against everybody who uses our personal information or allows our personal data to be used without our consent. The strict implementation of the GPDR and the Philippine Data Privacy Act is a must.

Comments are welcome—contact me under Schumacher@eitsc.com.