Businessmirror may 01, 2018

‘VIOLATORS OF ENVI LAWS MUST SHOW EVIDENCE OF INNOCENCE’

By Jonathan L. Mayuga

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@jonlmayuga

AP PHOTO

N official of the Department of Environment and Natural Resources (DENR) on Monday said companies issued with a notice of violation (NOV) will be given an opportunity to contest alleged violations of environmental laws.

In the case of Boracay, DENR Undersecretary Jonas R. Leones maintained that violations of various environmental laws, such as Republic Act (RA) 9275, or the Clean Water Act of 2004, will be called to a technical meeting by the DENR. “During the technical meeting, they can present evidence to prove they committed no violation,” said Leones, the designated spokesma of Environment Secretary Roy A. Cimatu. Leones, also the Environment undersecretary for policy, planning, international affairs and foreign-assisted projects, main-

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tained that the DENR’s list of violators is subject to continuing validation for updating. Only those found to have transgressed are issued a notice of violation, the lawyer added.

But Leones said an NOV is just the first step; anyone accused of any violation will be given an opportunity to prove they are compliant with the provisions of the law.

A massive violation of environmental laws was discovered when around 150 DENR personnel deployed to Boracay conducted a resort-to-resort inspection, according to Leones.

The list

BORACAY Island, the country’s top tourist destination, is now closed to the public for six months. The closure that started on April 26 was to allow Task See “Violators,” A2

BusinessMirror

www.businessmirror.com.ph

A broader look at today’s business n Tuesday, May 1, 2018 Vol. 13 No. 199

Neda awaits DOTr okay of airport rehab project

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By Cai U. Ordinario

@cuo_bm

he National Economic and Development Authority (Neda) said on Monday that the interagency Investment Coordination Committee (ICC) could not yet proceed with the evaluation of the Ninoy Aquino International Airport (Naia) rehabilitation project.

TUNGPALAN: “[The Neda] has not received the OPS, but I think what happened was the DOTr acknowledged the completeness of the documents to allow them to evaluate.”

Neda Undersecretary for Investment Programming Rolando G. Tungpalan told the BusinessMirror that the Department of Transportation (DOTr) has yet to

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Refreshing transition Manny B. Villar

THE ENTREPRENEUR

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any Filipinos belonging to the millennial generation grew up in a world that looks down on their country.

When it comes to economics, we were the laughing stock, and the most common label attached to the Philippines was “economic laggard.”

Even international institutions criticized us for not being able to get our act together, despite our wealth in natural and human resources. In fairness, there were years when we turned in impressive performance in terms of GDP growth. We thought it was the start of an upward trajectory. Yet, the GDP growth slowed down in the following year; the “impressive growth” was just a glitch, and we quickly retreated to playing catch-up.

Continued on A10

Continued on A2

Bills to end ‘endo’ bank on Palace EO DUTERTE TO APPROVE EASE OF DOING BUSINESS BILL

By Butch Fernandez

@butchfBM

By Elijah Felice E. Rosales

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NE of then-candidate R o d r i g o D u te r te’s m o s t remembered moments just before the 2016 elections was his vow to “end endo,” a promise that resonated with millions of workers— hired with so-called end-of-contract provisions—for whom security of tenure was but a dream.

These days, nearly two years after he took over, workers express their disenchantment over the President’s failure to sign an executive order (EO) that in their view would have fulfilled the campaign vow. The draft EO had taken over a year to craft amid numerous consultations, but in the end, with both business and labor expressing discontentment with it, the Executive branch decided to hold off from releasing it.

The administration’s nonissuance of the “end to endo” order has united all labor factions for the first time in decades. Their leaders said the lack of such EO will be one of the key grievances they will air on Labor Day. See “Endo,” A12

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Two men carry out their tasks on top of a steel crate in a construction site in Pasay City. As the country celebrates Labor Day, lawmakers await a possible executive order to end contractualization. Labor groups, on the other hand, are expected to troop to the streets to pressure President Duterte to fulfill his campaign promise. NONIE REYES

PESO exchange rates n US 51.9650

@alyasjah

resident Duterte is expected to approve the bill streamlining doing business in the country this month, according to Trade Undersecretary Rowel S. Barba.

Barba said the bill pending the President’s signature for two months now is being reviewed by the Office of the Executive Secretary (OES). The OES, he added, is “asking for comments from different government agencies” regarding the provisions of the measure.

Nonetheless, Barba said the proposed Ease of Doing Business and Efficient Government Service Delivery Act of 2018 is anticipated to be inked by Duterte this month.

“Hopefully, it will be signed within the month [of May],” he said in a news briefing on Monday.

The measure aims to streamline issuances of licenses, clearances and permits to business entities and is banked on to improve the country’s ease of doing business (EODB) ranking. Manila slipped to 113th among

113th The Philippines’s rank in the 2018 edition of the World Bank’s “Doing Business” report

190 economies from 99th in the World Bank report, titled “Doing Business 2018.”

The Philippines scored 68.88 in starting a business and placed 173rd. In giving out construction permits, the country ranked 101st with a score of 66.84.

Although it performed well in getting electricity at 84.31 (31st), it was 114th in registering property with a score of 57.55. It was also scraping the lower bottom in terms of getting credit (142nd) and protecting minority investors (146th).

Moreover, the country placed 59th, 99th and 105th in resolving insolvency, trading across borders and paying taxes, respectively.

See “Duterte,” A12

n japan 0.4765 n UK 71.5714 n HK 6.6221 n CHINA 8.2074 n singapore 39.2633 n australia 39.3687 n EU 63.0180 n SAUDI arabia 13.8566

Source: BSP (30 April 2018 )

A2 Tuesday, May 1, 2018

BMReports BusinessMirror

Neda awaits DOTr okay of airport rehab project Continued from A1

grant the “original proponent status” to a firm that will undertake the rehabilitation of the Naia. The grant of OPS is needed before the ICC can start reviewing the project. “[The Neda] has not received the OPS, but I think what happened was the DOTr acknowledged the completeness of the documents to allow them to evaluate. That is a process by which an agency grants an OPS [as] it is convinced that it is a project that should proceed to ICC evaluation,” Tungpalan said in a phone interview.

There are two private entities that are keen on undertaking the rehabilitation of the Naia. Based on previous reports, the Naia Consortium and Megawide are interested in undertaking the rehabilitation of the Naia.

The P350-billion unsolicited proposal of Naia Consortium involves the redevelopment and expansion of the Naia.

The Naia Consortium proposal is divided into two phases. The group’s pro-

Govt. . .

Continued from A12

hounding NFA in the recent months since traders offered a higher price for locally produced rice. The food agency also failed to immediately secure an approval from the NFA Council for its request to import the staple.

The Philippines has earlier committed to the World Trade Organization to have a measure by June that would scrap the quantitative restriction (QR) on rice, which limited the entry of cheap imports.

Lawmakers have also committed to focus on a bill seeking to amend Republic Act (RA) 8178, which retained the QR on rice. If enacted, the rice import quotas would be con-

posal 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 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 projected passenger demand moving forward. The offer carries a concession period of 35 years.

Megawide’s proposal has $3-billion price tag, with a shorter concession period of 18 years. It 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.

Immediately upon takeover, the group proposes to construct full-length 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.

verted into tariffs.

Since the waiver on the special treatment on rice expired last June 30, the Philippines is under pressure to convert QR into tariff.

Last December Finance Undersecretary Gil S. Beltran said a 35-percent import tariff on rice in lieu of restricting rice import volumes would cut the retail price of the staple by P7 per kg. Beltran added the removal of the QR on rice would encourage more private traders to bring in the staple into the Philippines.

Citing a study from the National Economic and Development Authority, the finance official said the reduction in rice prices would be beneficial to the majority of poor households that spend at least 20 percent of their budget for rice.

Socioeconomic Planning Secretary Ernesto M. Pernia told the BusinessMirror that the unsolicited proposal of private companies to rehabilitate the Naia “will still be entertained” after the Neda Board recently approved San Miguel Corp.’s proposal to build an airport in Bulacan.

Tu n g p a l a n e x p l a i n e d t h a t t h e “noncompete” provision in the projects are disallowed since the parties are aware that there is a proposal to build an airport in Bulacan; a proposal to rehabilitate the Naia and plans to build an airport in Sangley, Cavite.

The Neda official said the government and San Miguel Corp. still need to discuss the draft concession agreement for the Bulacan airport to ensure that it will not have any “guarantee, equity and subsidy” from the government.

After the concession agreement is finalized by the government and San Miguel Corp., the project will be subjected to a Swiss challenge.

“Remember it has a risk allocation matrix [which determines] who is absorbing what risk so [government wants to] make sure

‘Endo’. . .

Continued from A12

The authors seek to ensure, said the senator, that “through our bill, we would be able to provide clear, balanced and workable solution that would continue to create more jobs without abusing our workers’ rights.

We want to preserve our workers’ constitutional right to security of tenure while ensuring stability in the labor markets and economic conditions of our country.”

Chiz, Koko

SEN. Francis “Chiz” G. Escudero has a simple proposal to Malacañang, even if it will no longer issue an EO. “Endo is prohibited by the Labor Code. But a department administrative order [DAO] from the DOLE [Department of Labor and Employment] way

that it is really without guarantee, equity, and subsidy,” Tungpalan said.

Unsolicited project proposals, approved by the Neda Board will be subjected to a Swiss challenge wherein other companies will be given 60 working days to match the proposal made by an original proponent.

If there are no other proposals submitted, the project is granted to the original proponent. However, according to the build-operate-transfer law, “in the event another proponent submits a lower price proposal, the original proponent shall have the right to match that price within 30 working days.”

San Miguel’s Bulacan International Airport project involves the construction, operation, and maintenance of the airport with an area of approximately 2,500 hectares in Bulakan, Bulacan.

The project involves airport development such as passenger terminal building, with airside and landside facilities and an 8.4-kilometer airport toll road. It will be able to accommodate 100 million passengers per annum by its opening year.

back in the 1980s relaxed the rules and paved the way for endo,” Escudero said. “I don’t exactly know what the bill contains, but all the Executive really has to do, through Labor Secretary [Silvestre H.] Bello, is to repeal the DAO.” Asked if he thought that legislation could resolve the labor-employer standoff over the aborted EO on endo, and basically put in place reforms that are fair to all, guarantee industrial peace and which will not dent economic goals, Villanueva told the BusinessM irror: “That’s the main goal, and I’m confident that our institutions will deliver.”

Responding to the same query, however, Senate President Aquilino “Koko” L. Pimentel III clarified this will “depend on what the output will be.”

But, Pimentel promptly assured “the legislative process is precisely there to choose which policy/point of view to sustain.” With Bernadette D. Nicolas

www.businessmirror.com.ph

Violators. . .

Continued from A1

Force Boracay and various stakeholders to fast-track its rehabilitation and allow its degraded environment to recuperate.

The BusinessMirror published a list of violators of the Clean Water Act for failing to connect to sewer lines and/ or security necessary discharge permits. (See “Severe penalties, fines face 186 Boracay businesses not connected to sewer lines,” on the BusinessMirror on April 28, 2018) The list includes 195 business establishments, nine of which have since instituted corrective measures by connecting to sewer lines.

Still, 185 are facing severe penalty and fine under Clean Water Act. A total of 163 business establishments on the list were tagged as “not connected without discharge permit,” which is a double violation.

Connection to proper sewer lines is mandated under the law and discharge permits are issued by the DENR through its Environmental Management Bureau (EMB) upon the assessment of the wastewater to be discharged in a particular area and its potential impact to the environment.

Of the 186, 23 violators were tagged “not connected with expired discharge permit.” Five establishments are not connected but are known as having valid discharge permits.

Complaints

SEVERAL business owners on the island questioned the list of the DENR. Some companies argued they should not have been issued a NOV because they have their own sewage-treatment plant (STP) or cannot connect because there are no available sewer lines in the area where they operate.

Others complained against the requirement imposing special permit for the use of generator sets.

Sought for reaction, Leones said that under the Clean Water Act, all establishments, once they have water discharge, are required to secure discharge permit. Also under the law, he said all establishments are required to connect to sewer lines.

“The discharge permit will determine the volume and water quality to be discharged. Under the law, all establishments are required to connect to sewer lines,” he said. “The argument that they cannot connect because there is no sewer line doesn’t exempt them from the Clean Water Act.” If there is no sewer line, they are required by the Clean Water Act to ensure that whatever wastewater they will be discharged will be treated. Therefore, they need STPs, he explained.

For effluents, he said the standard is not to go beyond the 400 most probable number (MPN) per 100 liters.

“We are issuing the notice of violations and those with notice are given an opportunity to present evidence,” he said.

Permits

LEONES added that even if a company is connected to a sewer line, it still needs to secure discharge permit, which is the minimum requirement. Discharge of wastewater that exceeds the standard—400 MPN/100 liter—makes the company liable for discharging pollutants, whether into the soil or water bodies, explaining that in the end, these wastewater pollutes soil and may contaminate groundwater aquifers, or reach waterways and end up in water bodies.

As for the special permit for the operation of generator sets, Leones said the under the Clean Air Act, all establishments are required to secure a permit from the DENR-EMB. He explained that while the permit may give a business establishment permit to use a generator set, it doesn’t exempt them from possible culpability if the generator set is emitting pollutants into the atmosphere.

Leones said the campaign in Boracay is also being applied by the DENR in other tourist destinations, including Panglao, Bohol, Coron and El Nido in Palawan, Puerto Galera in Oriental Mindoro and soon, in areas like Pagudpod and other areas frequented by local and foreign tourists.

“Even banks with generator sets are required to seek a permit from the DENR because that is the law,” he said.

He added the DENR is determined to address Boracay’s environmental problems and that there will be no sacred cows that will be exempted from the crackdown.

Economy

A4 Tuesday, May 1, 2018 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

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Bottom 30% faced 5.3% inflation in Q1, highest in four years–PSA U

SOLON UPBEAT ON PHL-KUWAIT TIES AMID DIPLOMATIC spat

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By Cai U. Ordinario

@cuo_bm

he poorest 30 percent of households in the country saw inflation reach 5.3 percent in the first quarter of 2018, according to the Philippine Statistics Authority (PSA).

This is the highest since the third quarter of 2014 when inflation experienced by the poorest was at 6.8 percent. In the first quarter of 2017, inflation for the bottom 30 percent of households was at 2.8 percent.

National Economic and Development Authority (Neda) Undersecretary Rosemarie G. Edillon told the BusinessMirror that the increase in the prices of commodities consumed by the poor may be due to high demand and supply disruption issues.

“There will always be an increase in prices on account of higher demand due to higher income and growing population.

There could also be supply issues due to calamities, traffic and increases in the cost of other production inputs,” Edillon said.

Ateneo Center for Economic Research and Development Director Alvin P. Ang told BusinessMirror the increase was largely due to higher prices of fish and corn.

The food alone index posted a growth of 5.3 percent in the first three months of the year. Ang, however, said there was an increase in

all food commodity prices vis-à-vis the last quarter of 2017.

Whether the increase in commodity prices will impact or worsen poverty this year remains to be seen. The Family Income and Expenditure Survey will be conducted this year and the results will be released next year.

Ang said, however, that since the latest data from the PSA may not have factored in government interventions, the impact of high commodity prices on the poorest Filipinos could be cushioned.

“The release of the unconditional cash transfer [for a] full year could [not only] help cushion [commodity

price increase], but also improvement in government coordination and communication,” Ang said.

Edillon added that with the Consumer Price Index (CPI) for bottom 30 percent income households data still not rebased, the inflation being experienced by the poorest may not reflect the current situation.

The country’s CPI was recently rebased to 2012, but the CPI for the bottom 30 percent was still based on 2000. This may have implications on the rate of inflation the poorest are experiencing now.

Apart from rebasing the CPI to 2012, the PSA also used chaining, which can pave the way for an improved method of computing the country’s GDP. The chain volume measure is a means to compute economic growth using chained prices. The formula used to compute GDP in chained prices is not dependent on an assigned base year, which is now being used to compute GDP in constant prices.

When using chained prices, the base year cancels out in the formula and only the constant and

There will always be an increase in prices on account of higher demand due to higher income and growing population. There could also be supply issues due to calamities, traffic and increases in the cost of other production inputs.”—Edillon

current prices will be able to affect the outcome.

“We think this statistic should be improved in order to reflect the true situation being faced by the poor. By improvements, we mean updating the base year from the current 2000 and focusing more on the bottom 20 percent,” Edillon said.

Meanwhile, the PSA’s data also showed that households classified as the poorest 30 percent who are living in Metro Manila or the National Capital Region (NCR) experienced even higher inflation at 5.9 percent in the first quarter of the year.

In the previous quarter, inflation settled to 4.7 percent, while in the first quarter of 2017, it was observed at 5.4 percent.

A higher annual increase of 5.4 percent was registered in the food alone index in the area during the first quarter of 2018.

Its annual rate in the previous quarter was pegged at 3.9 percent.

In the first quarter of 2017, food alone index increased at an annual rate of 5.5 percent in NCR. Further, annual inflation in areas outside NCR (AONCR) for the bottom 30 percent income households picked up by 5.3 percent during the first quarter of 2018.

In the previous quarter, the annual growth was posted at 3.4 percent and in the first quarter of 2017, 2.7 percent.

The food alone index in AONCR rose by 5.3 percent in the first quarter of 2018. In the previous quarter, the index picked up by 3.4 percent and in the first quarter of 2017, 2.7 percent.

Palay production seen rising 2% to 19.7 MMT this year

By Jasper Emmanuel Y. Arcalas @jearcalas

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nmilled rice production this year would rise by 2 percent to a record high of 19.7 million metric tons (MMT) on the back of higher yield, better farmgate prices and accessible credit, according to the United Nations’s Food and Agriculture Organization (FAO).

“As to prospects for the following season, 2018 production in the Philippines is provisionally put at 19.7 million tons [12.9 million tons, milled basis], implying a 2 percentannual expansion,” FAO said.

The Philippines produced a record-high of 19.3 MMT of palay in 2017, which is 9.3 percent higher than the 17.3 MMT recorded output in 2016, according to the Philippine Statistics Authority.

However, the 2-percent increase in the country’s palay output this year “is likely to depend on weather condition,” according to FAO’s latest

quarterly rice monitoring report.

“In this connection, official weather forecasts indicate that rainfall is likely to be within normal to above-normal bounds through August over much of the country, which could benefit early planted main-crop paddies,” it said.

The FAO also noted that policy uncertainties “linger regarding the possible impacts of the removal of quantitative restrictions on rice imports.” The UN-attached agency said that, nonetheless, Filipino rice farmers would still opt to plant rice due to “ongoing input assistance schemes” by the Department of Agriculture [DA] and higher farm-gate prices for palay.

“However, barring major policy shifts, ongoing input assistance schemes and a 9-percent annual increase in average paddy prices are likely to encourage farmers to continue favoring rice over other crops,” FAO said.

FAO cited the DA’s interventions

to hike the utilization of hybrid rice seeds, which gives higher yield, “along with increasing farmer’s access to credit and irrigation coverage” as factors that would push local production to nearly reach 20 MMT this year.

“Interventions to this end have included waiving charges on irrigation for paddy producers and the implementation of special schemes, such as the Production Loan Easy Access [PLEA] program, that grant credit to producers to cover for the costs of hybrid seeds and other basic inputs,” FAO added.

FAO’s 19.7-MMT unmilled rice forecast for the Philippines this year translates to a milled rice output of about nearly 13 MMT, which is 3.17 percent higher than the 12.6 MMT milled rice produced last year.

However, the FAO’s palay production projection is 200,000 MT lower than the agriculture department’s forecast of 19.9 MMT output.

“This year, rice production is expected to grow by about 600,000

metric tons [MT], stimulated mainly by good palay-buying prices, favorable climate and the increase in the adoption of good quality and hybrid seeds by farmers,” Agriculture Secretary Emmanuel F. Piñol said.

The 9.3-percent increase in palay output last year allowed the country to reach a 96-percent self-sufficiency in rice, according to the DA. “Last year the country posted its highest rice harvest in history at 19.28 million metric tons, which reduced the country’s dependence on imported rice from over 2 million metric tons in 2010 to only about 600,000 to 800,000 metric tons this year,” Piñol said.

Despite the projected record-high palay harvest this year, the FAO maintained its forecast that the Philippines’s rice import this year would expand by 40 percent to 1.4 MMT. The increase reflects Manila’s efforts to beef up the buffer stocks of the National Food Authority, according to FAO.

ndeterred by tottering ties with Kuwait following the Philippine Embassy team’s rescue of a distressed overseas Filipino worker (OFW) from her Kuwaiti employer, Senate President Aquilino L. Pimentel III remains upbeat, airing hopes the Philippines and Kuwait will “normalize ties as soon as possible.”

The Senate President voiced optimism on Monday, even as he acknowledged the current situation “must first be defused,” referring to Kuwait’s decision to expel the Philippine ambassador after a video of the OFW rescue operation was posted in social media.

Clarification

AT the Malacañan Palace, meanwhile, Presidential Spokesman Harry L. Roque Jr. said until a memorandum of understanding (MOU) on the protection of Filipino workers in Kuwait is signed, the deployment ban on new workers to the Gulf state stays.

Roque issued the clarification after President Duterte last Sunday said that the deployment ban to Kuwait stays “permanently” in the wake of the diplomatic spat between the Philippines and Kuwait.

“What the President announced is the maintenance of the status quo. Until we have reached or signed a memorandum of agreement [understanding] providing for the minimum terms and conditions of employment for our nationals, the ban stays,” Roque said.

Roque stated that the lifting of the deployment ban is “conditional” to the signing of the MOU. “Is this permanent as reported by some media outfits? Well, let’s just say it stays right now because the precondition set by the President is really the signing of that memorandum of [understanding],” he added.

Roque said Labor Secretary Silvestre H. Bello III and other Cabinet officials will be meeting with their counterparts in Kuwait on May 7 to ease the diplomatic spat. “Secretary Bello and other Cabinet members will be leaving for Kuwait on the 7th [of May], which means that the process of diplomatic negotiations and conversations continues as we speak,” Roque said.

Positive outlook

IN a news statement, Pimentel said his positive outlook that the row would be resolved soon was “inspired by the Korean example.”

“If, after a full-blown war and decades of tension, two countries can make peace, what more two countries that have always enjoyed good relations and have strong economic ties?

The Philippines and Kuwait need each other,” the Senate President said.

Pimentel added: “Let’s look at the Koreas—we need high-level contacts, honest discussions, and most important, no posting on social media or anywhere else on the Internet.”

The Senate President suggested that for relations to be repaired, “public relations stunts must be avoided.”

Pimentel pointed out that “this is a highly charged issue that is very tempting to politicize. Let’s put the

PGKM call

The Pinoy Gumising Ka Movement (PGKM), for its part, called on OFWs and their families not to reelect politicians who appear to be more concerned about how Kuwait feels over the rescue of distressed OFWs there, than call on the government to further intensify its efforts to protect the more than 10 million Filipinos working abroad.

PGKM, a large multisectoral cause-oriented group based in Angeles City, decried the “grandstanding” of several lawmakers both in the Lower House and the Senate over the current diplomatic row between the Philippines and Kuwait.

“Some of our senators and congressmen should be ashamed of themselves for appearing to be more concerned about the feelings of a foreign country known for abusing our workers than heed the cries for help of hundreds of our kababayan who are stranded there,” PGKM Chairman Ruperto Cruz said.

He noted that instead of supporting the President’s position, some lawmakers convey the message that workers should just tolerate the exploitation and abuse in the hands of their employers because, according to them, there is no work available for OFWs in the Philippines.

“Isn’t it about time that we Filipinos feel proud about ourselves and say enough is enough, we can no longer be your slaves,” Cruz said as he expressed his group’s support for the decision of President Duterte to permanently ban the deployment of workers to Kuwait.

Cruz added OFWs and their families in the Philippines should not support these grandstanding lawmakers, most, if not all, had never been to Kuwait, when they seek reelection next year. He said his group will actively campaign against these legislators.

At the same time, Cruz said, instead of finding fault with the DFA over the current diplomatic row with Kuwait, lawmakers should investigate local recruitment agencies for perpetuating the cycle of exploitation and abuse that Filipino domestic helpers there have long been subjected to.

“Our diplomats are just doing their jobs and whether we agree or not with how they carried out these rescues, we could be certain that these were done with the interest of our OFWs in mind,” Cruz added.

Some of the politicians who lambasted the Department of Foreign Affairs on the issue were Senators Risa Hontiveros-Baraquel, Francis N. Pangilinan and Nancy S. Binay. Butch Fernandez, Bernadette D. Nicolas and Ashley Manabat

Pricier gas and diesel on Tuesday as oil firms hike fuel pump price

MRRVs from Japan to boost Coast Guard’s patrol capability

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he Philippine Coast Guard (PCG) expects the delivery of two 94-meter vessels from Japan in 2021 to help the agency in enforcing maritime laws, the transportation department said on Monday.

The two vessels will “greatly improve the capacity and performance of the agency,” PCG Rear Adm. Elson Hermogino said in a news statement released on Monday.

“We expect that with the coming of the 94-meter vessels from Japan, it will greatly enhance our performance. This will also ensure that all Japanese vessels passing Philippine waters will be guarded and protected,” he said.

Hermogino announced this during the visit of Japanese Minister of Land, Infrastructure, Transport and Tourism Keichi Ishii last Sunday, when the agency briefed the minister of the recent maritime “accomplishments” using the multirole response vessel (MRRV) acquired from Japan.

From responding to sea mishaps, extending relief efforts to calamity stricken areas and providing maritime patrol and security in Philippine waters, MRRV’s play a huge role in ensuring that the PCG is able to carry out its mandate.

“It is with great pleasure to see that Japan’s ships provided a number of accomplishments. Japan is promoting peace in the Pacific. To promote [a] free Pacific, we must strengthen maritime capabilities,” Ishii said. Lorenz S. Marasigan

country’s interests first and let the Department of Foreign Affairs [DFA] take charge so that only one voice is heard by the Kuwaitis.”

At the same time, Pimentel asserted that OFW welfare must remain the highest priority in any agreement with Kuwait. “There are many OFWs in the region. Perhaps we can ask the help of Saudi Arabia or Qatar to act as our intermediaries with the Kuwaitis,” Pimentel proposed.

F

Guitar man

An itinerant guitar vendor dozes off for a midafternoon power nap on a sidewalk in Malate, Manila. Of varying sizes, shapes and colors, the string instruments are handcrafted by guitar makers in Cebu and Pampanga. NONIE REYES

uel pump prices are on the rise again.

Oil firms on Monday announced they are implementing a price increase of P0.85 per liter in gasoline and P0.70 per liter for diesel and kerosene.

The price hike will take effect at 6 a.m. of Tuesday, May 1.

“This is to reflect movements in the international petroleum market,” Seaoil Philippines said.

Other oil companies that announced their price adjustment are PTT, Phoenix Petroleum, Eastern Petroleum and Total Philippines. Other oil firms are expected to follow suit.

Last week the price of gasoline went up by P0.40 per liter, diesel by P0.65 per liter and kerosene by P0.65 per liter.

On April 17 gasoline prices shot up by P0.35 per liter, diesel by P0.55 per liter and kerosene by P0.80 per liter.

A week before that, oil firms implemented a price rollback of P0.40 per liter for gasoline and P0.30 per liter for diesel.

On April 2 oil prices rose by P0.90 per liter for gasoline, P1 per liter for diesel and P1 per liter for kerosene. Lenie Lectura

Banking&Finance BusinessMirror

www.businessmirror.com.ph

Editor: Jun B. Vallecera • Tuesday, May 1, 2018

A5

Money supply growth in line with BSP’s outlook

By Bianca Cuaresma

growth of M3 is also an indicator that the economy is potentially overheating.

Thus, the BSP quickly assured the public that the overall pace of M3 rema ined “consistent w it h t he BSP ’s prevailing outlook for inf lation and economic activity.”

“Nevertheless, the BSP will continue to closely monitor domestic liquidity to ensure that monetary conditions remain conducive to maintaining price and financial stability,” the BSP said.

The Central Bank added that said the strong growth in M3 was due to sustained robust bank lending during the period.

However, preliminary data showed that outstanding loans of commercial banks expanded at a slower rate of 18.3 percent in March, from 19.5 percent in February.

Loans for production activities—which comprised 88.4 percent of the banks’ aggregate loan portfolio—hit 18.1 percent, from 18.6 percent in the previous month.

Similarly, the growth in loans for household consumption marg ina l ly slowed down to 19.3 percent in March, from 19.9 percent in February.

@BcuaresmaBM

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he country’s money supply growth remained consistent with the needs of the growing economy notwithstanding a slight surge in March, according to the Bangko Sentral ng Pilipinas (BSP).

Data from the BSP showed domestic liquidity—broadly measured as M3—grew 14.4 percent in March this year to P10.9 trillion. Its acceleration picked up from the 13.5-percent expansion seen in the previous month.

M3 is the broadest measure of an economy’s money supply. Economists use it to estimate the entire money supply, and governments use it to direct policy and control inflation.

The acceleration of cash-supply growth, along with the rising inflation trend, raised concerns about the possible overheating of the Philippine economy.

A growing cash supply is often beneficial to an expanding economy, such as the Philippines, as it provides fuel to the country’s productive sectors.

However, an excessively strong growth in M3 could stoke inflationary pressures and pull prices upward. An imbalanced

April inflation rate likely Govt happy with S&P’s PHL overshot official forecast rating above investment grade T

By Bernadette D. Nicolas @BNicolasBM

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oth Malacañang and the Department of Budget and Management (DBM) welcomed Standard & Poor’s (S&P) revision of its outlook on the country’s credit rating from “stable” to “positive.”

S&P changed its outlook on the Philippine economy on the back of sustainable fiscal policies and consistent economic growth, citing the government’s Comprehensive Tax Reform Program and improvements in the quality of expenditures, manageable fiscal deficits and low levels of government indebtedness.

The New York-based credit rating agency also expects the Philippine economy to continue its robust growth trajectory underpinned by strong macroeconomic fundamentals and prudent management of public finances.

It also affirmed the “BBB” long-term

sovereign credit rating of the Philippines, maintaining the positive credit score of the country, which is a notch above investment grade.

Presidentia l Spokesman Har r y L .

Roque Jr. said the Philippines continues to sustain its economic momentum.

Budget Secretary Benjamin E. Diokno also said they are confident that sustaining the fiscal reform agenda, primarily the tax reform and budget reform, will also lead to a credit upgrade within the year.

“We welcome the upward revision in the outlook for the Philippine economy,” Diokno said. “The economy stands to benefit greatly as it will potentially translate to lower borrowing rates to finance our priority programs and projects.”

He added that DBM is motivated to work harder given the international recognition with their fiscal reform agenda.

“But we will not stop here as our ultimate aim is to expand economic opportunities

and uplift the lives of our constituents,” he said. The DBM also said the “encouraging news” is relevant in the purview of the government’s medium-term financing program.

Last week the Development Budget Coordination Committee adjusted the borrowing program of the government from an 80-20 mix, in favor of domestic borrowings, to a 65-35 mix in 2018 and then a 75-25 mix from 2019 to 2022.

The adjustment was made in line with government’s strategy of diversifying its investor base and tapping new markets to meet its financing requirements.

“A potential credit upgrade will only maximize the benefits of this revised financing program,” the statement read.

The Duterte administration is aiming for 7-percent to 8-percent economic growth in the medium term while cutting the poverty rate from 21.6 percent in 2015 to at least 14 percent by 2022.

Tips on how to start a vending machine business

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re you thinking of starting a vending machine business? What are the things you need to know if you want to start a vending machine business? Personally, I’ve always wanted to start one but never really took the time to study how.

But recently, I saw some ads on used vending machines for sale in a local newspaper and I thought I should finally do some research on how to start a vending machine business. Questions like, “Will I need equipment leasing, should I buy the machines, how do I get a loan if needed?” are all important for this enterprise.

So far, here’s what I’ve learned:

Advantages of a vending machine business

It is an all cash business. All sales transactions are immediately paid in cash.

It is recession proof. In fact, people tend to buy more retail when times are hard.

Vending machines, in general, require only minimal maintenance.

There’s no need to hire sales employees, and your business is potentially open 24 hours a day.

Because there is minimal overhead costs, you can sell your products at very competitive prices.

The most important factor for success in this business

The success of a vending machine business primarily relies on its location.

Choose the right location and you’ll enjoy optimum profits. So how do you know if a location is a good place to put up a

Fitz Gerard Villafuerte

personal finance vending machine?

First, the area should have constant foot traffic. Second, the area should be secure and safe from vandals. And third, your products should compliment the market profile of the area.

The third tip is actually the most important. Have you ever wondered why you see toilet paper vending machines inside restrooms, coffee vending machines near offices, soda vending machines in parking lots and candy or gumball vending machines in places where there are lots of children?

It’s because people buy from vending machines usually for two reasons—out of need and out of impulse. Thus, toilet papers exactly where we need them, coffee to awaken sleepy employees, sodas for the waiting drivers or to accompany us, while driving and candies to tempt the sweet tooth of children.

Things to consider when starting a vending machine business

Find a suitable location and decide what products would do well in the area.

Inquire to the establishment or

building administrator and ask the requirements and terms for putting up a vending machine in the area.

Consult the local government to know the legal process of getting business permits for your venture.

Look for vending-machine suppliers or find sellers of second hand or used vending machines.

Depending on the supplier, vending machines can either be bought or leased.

Most of the time, they are franchised.

Monitor your inventory. Know your fast-moving items to ensure that your vending machine will never run out of stock.

Regularly visit your location. Doing so will give you more insight on the quality of foot traffic and customers that you get.

Ensure that your vending machine is always clean, working well, attractive and readily visible.

A dusty or faulty equipment will make people think that your products are old and of poor quality.

Before buying, leasing or franchising a vending machine business, always make sure that you are dealing with a reputable dealer or supplier. Ask for their terms and conditions when it comes to warranty, inventory, service and maintenance of the equipment.

Fitz Villafuerte is registered financial planner of RFP Philippines. To learn more about personal-f inanc ial planning, attend the 69th RFP program this July 2018.

To inquire, e-mail info@rfp.ph or text <name><e-mail> <RFP> at 0917-9689774.

he Bangko Sentral ng Pilipinas (BSP) said the increase in consumer prices may have overshot government’s annual target range in April, as oil and utility prices accelerated during the month.

In its monthly inflation forecast, the BSP said inflation may have settled at 3.9 percent to 4.7 percent in April this year. March’s inflation hit 4.3 percent, while the average inflation for the first three months of the year remained at 3.9 percent.

The government has pegged its annual inflation target range at 2 percent to 4 percent for this year and the next.

“Geopolitical tensions in the Middle East caused a sharp increase in international oil prices, spilling over to higher domestic petroleum prices for the month,” the BSP Department of Economic Research said in its statement.

“In additional, higher electricity rates in Meralco-serviced areas, as well as higher rice prices due to supply conditions could contribute to additional price pressures,” the BSP added. The Philippine Statistics Authority is expected to release inflation data in the

first week of May. The BSP reiterated its “continuous monitoring” of the country’s inflation to guard “against any signs of incipient price pressures that may warrant a policy response.”

The Monetary Board is expected to hold its next monetary-policy meeting on May 10. This will be its third policy meeting for the year. The BSP has been maintaining its monetary policy rate at 3 percent, despite strong opinion from analysts and economists that the country needs a rate hike to control inflation.

Monetary officials often defend their non-action by saying the BSP has other tools to subtly signal a rise in the general interest rate regime by controlling the volume in their term deposit auction facility.

“The BSP has not been idle in the past month. However, the market remains unsatisfied,” ING Bank Manila economist Joey Cuyegkeng said earlier.

The economist said the BSP may find justification in finally pulling the trigger on stronger second round effects of inflation, such as demand for higher minimum wages and transport fares. Bianca Cuaresma

Philam Life net worth surged 53% in 2017

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he Philippine American Life and General Insurance Co. (Philam Life) continued to outperform the industry by posting a 53-percent expansion in net worth in 2017.

Philam Life CEO Ariel G. Cantos said the company’s net worth grew to P69.5 billion last year against 2016’s P45.5 billion.

“Last year we again reached the highest in terms of net worth and assets in the industry. In both of those financial indicators, we outgrew the industry,” Cantos said in a news briefing on Monday at the Philam Life tower in Makati City.

Philam Life CFO Gary James Ogilvie said the company also posted a 25-percent growth in assets last year to P251.4 billion, and 23-percent hike in net income to P5.6 billion.

“In terms of 2017 results which was based on what was submitted to the Insurance Commission [IC], our total premiums grew by 7 percent to P19.9 billion.

Net income grew by 23 percent to P5.6 billion, assets grew by 25 percent to P251.4

billion, and net worth grew 53 percent to P69.5 billion. That’s a reflection of the financial strength and position of Philam Life,” Ogilvie said.

In March the IC reported the insurance industr y’s net wor th reaching P320.3 billion in 2017, which showed an 18.14-percent increase from P271.1 billion in 2016.

Following its entry into the wellness space last year, Philam Life is set to launch a protection-oriented product integrated with its science-backed wellness program Vitality to help address the country’s protection gap.

Philam Life Chief Marketing Officer Leonardo D. Tan Jr. said the country currently has a protection gap of around P1.5 trillion, which is expected to balloon to P2.7 trillion by 2020 if not addressed.

“As the market leader, it is our responsibility to create products that customers need, and there is an obvious need to address the concern on protection gap,” Tan said. Rea Cu

Case clippings

By Justice S J Ranada Jr.

MITIGATING CIRCUMSTANCES–Voluntary surrender Where a person goes to a police station to request that the police take custody of accused, who was then in the house of said person, the element of voluntary surrender does not exist, as the clear reason for the supposed surrender are the inevitability of arrest and the need to ensure his safety.

Such surrender is not spontaneous and therefore cannot be characterized as ‘’voluntary surrender’’ to serve as a mitigating circumstance.

People v. Manzano 05 Mar. 2018

GR 217974 Martires, J

A4 Tuesday, May 1, 2018 • Editor: Lyn Resurreccion A6

The World BusinessMirror

www.businessmirror.com.ph

US: Border crossing has no room for asylum seekers

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IJUANA, Mexico—After traveling through Mexico with great fanfare for a month under the Trump administration’s watchful eye, nearly 200 Central American migrants attempting to seek asylum in the United States were stopped in their tracks when border inspectors said that a crossing facility didn’t have enough space to accommodate them.

Trump vowed last week to “stop” the caravan while Cabinet members said they would deliver a swift response. The asylum seekers held firm, setting up a possible showdown.

In an anticlimactic twist, about 50 asylum seekers were allowed past a gate controlled by Mexican officials to walk across a long bridge but were stopped at the entrance to the United States inspection facility at the other end.

They were allowed to wait outside the building, technically on Mexican soil, without word of when US officials would let them claim asylum.

Another 50 or so camped on blankets and backpacks in Tijuana outside the Mexican side of the crossing, prohibited from even getting close to the US inspection building.

The asylum seekers began the day with anticipation, traveling in red-and-white school buses under police escort to a beachfront rally in Tijuana, where a steel fence juts out into the Pacific Ocean. They sang the Honduran national anthem and sup-

porters on the San Diego side of the fence waved a Honduran flag.

After a final briefing from lawyers and minutes before they were to begin a short walk to the border crossing, US Customs and Border Protection Commissioner Kevin McAleenan announced that the San Ysidro border crossing, the nation’s busiest, had “reached capacity” for people without legal documents and that asylum seekers may need to wait in Mexico temporarily.

Trump has commented frequently on the caravan since it started in Mexico on March 25

Central American migrants traveling with a caravan gather at the border wall, some sitting on top of it, look toward the United States from Mexico during a gathering of migrants living on both sides of the border, on the beach where the border wall ends in the ocean, in Tijuana, Mexico, on April 29. AP/Hans-Maximo Musielik

near the Guatemala border and headed north to Tijuana.

His broadsides came as his ad-

The failure to prepare and failure to get sufficient agents and resources is not the fault of the most vulnerable among us. We can build a base in Iraq in under a week.

We can’t process 200 refugees. I don’t believe it.”—Ramos

ministration vowed to end what officials call “legal loopholes” and “catch-and-release” policies that allow people requesting asylum to be released from custody into the US while their claims make their way through the courts, which can take years.

Attorney General Jeff Sessions has called the caravan “a deliberate attempt to undermine our laws and overwhelm our system.”

Homeland Security Secretary K irstjen Nielsen said asylum claims would be resolved “efficiently and expeditiously” and

Facebook resists probe into claims of voter manipulation in Cambodia

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acebook Inc. doesn’t want to be drawn into a political dispute between the ruling and opposition parties of Cambodia. It may not have a choice.

The global social-media network is resisting requests by a political opponent of Cambodia Prime Minister Hun Sen to turn over information that will help him fight what he calls trumped-up criminal and civil claims against him brought by the ruling regime.

Sam Rainsy, the leader of Cambodia’s National Rescue Party, has lived outside the country since 2015 amid multiple threats and jail time he faces there. A lawyer for Sam Rainsy was scheduled on Monday to ask a court in San Francisco to order California-based Facebook to turn over the information.

A subpoena issued by a United States court would help Sam Rainsy respond to the regime’s charges and show that Hun Sen and his agents have purchased substantial advertising to distribute propaganda and misuse Facebook’s platform, he said in a court filing. It would also allow him to file his own cases challenging what he claims are Hun Sen’s abuses.

Anthony Harrison, a spokesman for Menlo Park-based Facebook, declined to comment. A spokesman for the Cambodian government didn’t respond to requests for comment.

Hun Sen and his agents have called Sam Rainsy’s request for information “stupid,” court filings show.

Facebook continues to wrestle with revelations that data for millions of its users was shared without their consent

and misappropriated for the US presidential election. With his lawsuit, Sam Rainsy is confronting the social network with claims not only that its platform is being manipulated to aid a repressive regime, but also that it’s become the main source of news and public information in a country where the media is bridled.

HunSen’sCambodianPeople’sPartyhas held power for more than 30 years. He has faced large protests—over issues as diverse as demanding an election recount to raising the minimum wage for garment workers— that have previously drawn support from broad sectors of society and made the national government nervous about dissent.

Privacy law

Granting Sam Rainsy’s subpoena would force Facebook to conduct and disclose a wide-ranging investigation into user accounts “as part of a fishing expedition for material to use in his longstanding campaign against the prime minister of Cambodia,” the company said in a court filing. It would also force the company to reveal the prime minister’s private communications and account activity of his opponents, in violation of US privacy laws, Facebook said.

The social network claims in court filings that Sam Rainsy hasn’t cleared a legal hurdle requiring him to demonstrate the information he seeks is usable in a foreign legal proceeding.

Facebook argues that Sam Rainsy has offered only “the most skeletal account of the purported proceedings,” adding that there are “strong indications” that

UK Home Secretary Rudd quits, stripping PM May of key ally

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he’s gathering evidence for future legal action in the International Criminal Court (ICC).

US law prohibits the district court from issuing a subpoena to support ICC proceedings, according to Facebook.

Sam Rainsy counters that the “entire world” is aware of the cases brought against him, which he has shared with the San Francisco court, and his intended use of the information he’s after is clear.

Claims that he’s gathering evidence for the Hague-based ICC amount to “speculation and innuendo,” according to a court filing.

Fake ‘likes’?

warned that anyone making false claims could be prosecuted.

The administration’s stern warnings left organizers in disbelief that border inspectors were not ready for them.

“They have been well aware that a caravan is going to arrive at the border,” Nicole Ramos, a lawyer working on behalf of caravan members, said at a news conference. “The failure to prepare and failure to get sufficient agents and resources is not the fault of the most vulnerable among us. We can build a base in Iraq in under a week. We can’t process 200 refugees.

I don’t believe it.”

The San Ysidro border inspection facility can hold about 300 people, according to Pete Flores, Customs and border protection’s San Diego field office director, suggesting the bottleneck may be short-lived. The agency processed about 8,000 asylum cases from October through February, or about 50 a day.

Asylum seekers are typically held for up to three days at the border and then turned over to US Immigration and Customs Enforcement. If they pass an asylum officer’s initial screening, they may be detained or released into the US with ankle monitors.

Asylum seekers didn’t appear to be thrown off the by the delay.

Wendi Yaneri Garcia said she was confident she will be released while her asylum case is pending because she is traveling alone with her twoyear-old son, who has been sick.

She said the police in her hometown of Atlantida, Honduras, jailed her for protesting construction of a hydroelectric plant and that she received death threats after being released.

“All I want is a place where I can work and raise my son,” the 36-yearold said.

Elin Orrellana, a 23-year-old pregnant woman from El Salvador, said she is fleeing the violent MS-13 street gang, a favorite target of both Sessions and Trump because of their brutal killings in communities in the United States. She said her older sister had been killed by the gang in El Salvador, so she is attempting to join other family members in the Kansas City area.

“Fighting on is worth it,” she said as she camped out for chilly night outside the border crossing. AP

Some of the charges against Sam Rainsy in Cambodia stem from his own use of Facebook, he says, after he posted allegations that millions of Hun Sen’s “likes” on the platform were generated by “click farms.”

Another is based on a post by him claiming Hun Sen’s regime ordered the assassination of human-rights activist and journalist Kem Ley. Hun Sen sued Sam Rainsy for suggesting the government was involved.

Finally, Sam Rainsy claims he’s not seeking the actual content of communications—which is already known—but rather information about who’s behind it.

If Sam Rainsy can prove, for example, that Hun Sen paid for his popularity on Facebook by purchasing “likes” outside the country or engaging in deceptive advertising, it will undermine the government’s defamation case against him, his lawyer, Noah Hagey, said in an interview.

Bloomberg News

mber Rudd quit as UK. Home Secretary after an immigration scandal, stripping Prime Minister Theresa May of a pro-European ally and destabilizing her government just as internal battles over Brexit come to a head.

Rudd, 54, was due to address lawmakers in the House of Commons on Monday to defend herself against allegations that she misled Parliament over targets for deporting illegal immigrants.

May’s office confirmed she had resigned late last Sunday. No successor has been named yet.

Rudd’s departure comes at a critical time for May’s government. Rudd was due to be attending a key meeting of the Brexit “war Cabinet” on Wednesday to weigh the options for the United Kingdom’s future trading relationship with the European Union (EU).

Her resignation will change the dynamic in that meeting—and, depending on who replaces her, could shift the Cabinet balance in favor of a harder Brexit.

Rudd was a key pro-EU voice who provided a counterpoint to pro-Brexit heavyweights, including Foreign Secretary Boris Johnson and Environment Secretary Michael Gove.

Brexit tension

Ministers are at loggerheads over what customs arrangements should be put in place after Brexit, to replace the current setup, which allows easy trade with Europe through the single market and customs union.

The Sunday Times reported that May has been told to fire the most senior Brexit official in her office, Oliver Robbins, whose proposal for a customs partnership will be discussed on Wednesday.

Pro-Brexit ministers hate his plan, and see it as a way of thwarting the kind of divorce they want.

Rudd, widely criticized for the immigration scandal, had also incurred the wrath of pro-Brexit Conservatives. That was made worse last week when she refused to be drawn on whether the UK would leave the EU’s customs union, hinting at tensions in the Cabinet.

“We still have a few discussions to be had in a really positive, consensual, easy way,” she told reporters, her

tone heavy with irony.

Rudd then quickly tweeted to clarify that “of course” she supported May’s aim of leaving the customs union, but the damage was done, with pro-Brexit Conservative lawmaker Peter Bone tweeting: “We cannot have Home Sec not supporting this key plank of Brexit!”

May loyalist

The increasingly fractious split in May’s Cabinet reflects anxiety among hardline anti-Europeans that she might water down the terms of Brexit as she struggles to reconcile their demands with those of pro-EU House of Commons lawmakers emboldened by repeated defeats for the government in the House of Lords.

Rudd’s exit also deprives May of a loyal lieutenant, who filled in for her boss in a televised election debate last year, even though her father had died just days before.

May had already lost her de facto deputy, Damian Green—another pro-EU voice—to a scandal last December.

Already under pressure over the status of postWorld War II immigrants from the Caribbean, Rudd claimed last week that she didn’t know about targets for deporting illegal immigrants. Then, last Friday a memo leaked to the Guardian newspaper suggested she did.

Rudd issued a series of tweets late last Friday claiming not to have seen the e-mailed document and apologizing, but the opposition Labour Party, backed by further leaks over the weekend, kept up its demands that she should resign.

It accused May of using Rudd as a “human shield” to protect herself from allegations over the “hostile environment” for immigrants that she pursued when she was home secretary, a post she held before taking over as premier.

“That hostile environment strategy led to human suffering,” Labour Economy Spokesman John McDonnell told Sky News. “Amber Rudd either misled Parliament or was too incompetent to manage her own department. On either grounds she should go.”

Bloomberg News

IS takes responsibility in twin Kabul bombings; 25 killed, including 8 journalists

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ABUL, Afghanistan—The Islamic State (IS) group has taken responsibility for the double suicide bombings in Kabul on Monday morning that killed 25 people, including eight journalists.

The Afghan affiliate of the militant group, known as Khorasan Prov-

ince, posted an urgent statement on an IS-affiliate Web site, saying two of its martyrdom seekers carried out the double bombing on Monday, targeting the headquarters of the “renegade” Afghan intelligence services in Kabul.

It says the first martyrdom seeker detonated his explosive vest, forcing

members of the intelligence service to head to the area of the explosion.

The statement says the second martyrdom seeker detonated his explosive vest after that.

The statement did not say that journalists were specifically targeted but exaggerated the attacks’ death toll.

An Afghan media watchdog says eight Afghan journalists have been killed in the suicide attacks in Kabul.

A statement from the Afghan Journalists Safety Committee says that so far, six journalists have been reported wounded in Monday’s attacks. The group

strongly condemned all attacks against journalists.

The double suicide bombing took place in the central Kabul district of Shash Darak area, which is home to the North Atlantic Treaty Orgaanization headquarters and a number of embassies in Afghanistan.

Police say the first bomber was

on a motorcycle while the second was on foot, mixing in with a group of reporters who had rushed to the scene of the first bombing.

The fatalities among the reporters included Agence France-Presse’s chief photographer in Kabul, Shah Marai, and also a cameraman for the local Tolo TV station. AP

www.businessmirror.com.ph

The World BusinessMirror

US allies brace for trade war as tariff negotiations stall the most critical. The US and EU account for about one-third of world trade.

Only a few years ago the United States and Europe were discussing the possibility of eliminating almost all trans-Atlantic trade barriers. Now they are stymied by fundamentally different worldviews.

As the Europeans see it, Trump is demanding concessions that would make them accomplices in dismantling a postwar trade framework they hold sacred.

Europeans play by WTO rules

President Donald J. Trump shakes hands with German Chancellor Angela Merkel at the end of their news conference in the East Room of the White House on April 27 in Washington. AP/Evan Vucci

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ERLIN—A few weeks ago, it felt as if a trade war pitting the United States against allies like Australia, Canada and the European Union was over before it even began.

The Trump administration dispensed so many temporary exemptions to steel and aluminum tariffs that many countries figured the threats were just political theater.

But with only days left before the exemptions expire and punitive tariffs take effect, it’s dawning on foreign leaders that decades of warm relations with the United States carr y little weight with a president dismissive of diplomatic norms and hostile toward the ground rules of international trade.

What began as a way to protect American steel and aluminum jobs has since become a cudgel that the Trump administration is using to extract concessions in other areas, including car exports to Europe or negotiations to revise the North American Free Trade Agreement with Mexico and Canada.

May 1 deadline

As a May 1 deadline looms, the decision on whether to grant permanent exemptions to the steel and

aluminum tariffs, and to whom, appears likely to come down to the whims of President Donald J. Trump, who has seesawed between scrapping and rejoining global trade deals.

The European Union (EU)— the United States’s biggest trading partner—indicated over the weekend that it was losing hope of reaching an agreement in the face of what many of the region’s political leaders regard as unreasonable demands.

W hile a last-minute extension of the deadline is possible, Chancellor Angela Merkel of Germany and President Emmanuel Macron of France, who each met with Trump in Washington last week, spoke with Prime Minister Theresa May of Britain over the weekend about enacting retaliatory tariffs if the European Union did not receive an exemption.

EU to defend interests

The German government said in a statement that Merkel, Macron and May agreed that if the tariffs go into force, “The European Union should be ready to decisively defend its interests within the framework of multilateral trade rules.”

T he uncertaint y is sow ing chaos in international supply networks. Car companies and other manufacturers do not know whether ships carrying steel may suddenly be barred from US ports.

Some countries are confident they will avoid the tariffs. Australia is treating an exemption as if it’s a done deal.

Brazil, which primarily exports slab steel to US manufacturers, is hoping to escape by agreeing on limited quotas for more sophisticated products. Argentina is counting on the good relationship between its president, Mauricio Macri, and Trump.

“In the conversations that we have on the issue, the positive relationships between our governments—and our presidents—certainly comes up,” Miguel Braun, Argentina’s trade secretary, said in an interview.

But it’s unclear whether the confidence is justified. The White House has not confirmed that Australia, Brazil or Argentina will receive exemptions.

Dispute with EU most critical

In terms of the potential disruption to the global economy, the dispute with Europe may be

The Europeans want to play by the rules of the World Trade Organization (WTO); the Americans are making demands that would force the Europeans to break them.

“If we stick to the rules,” said Thiess Petersen, an analyst at the Bertelsmann Foundation in Germany, “there is no chance for concessions.”

German cars, a particular target of presidential ire, are one of the major sticking points.

Commerce Secretary Wilbur Ross, who has been handling talks with the European Union, has been pushing the 28-nation bloc to reduce its tariffs on imported American cars as one way of cutting its trade surplus with the United States.

In a recent inter view with CNBC, Larry Kudlow, the chief economic adviser, said that the US wanted more concessions before it granted a permanent exclusion.

But if the EU accepted the demand for lower car tariffs, international treaties would require it to apply similar terms to automobiles from all other members of the WTO. The biggest beneficiary might be China. A member of the WTO, China is keen to become an auto exporter and would be thrilled to get easier access to Europe without giving up anything in return.

Europe ‘not negotiating under threat’

The Europeans are offended that they are being asked to negotiate in the first place.

Cecilia Malmstrom, the European commissioner for trade, said last week that the union would discuss terms of trade with the United States only after it had received a permanent and

unconditional exemption to the steel and aluminum tariffs. “ W hen t h at i s con f i r med by the president,” Malmstrom told reporters in Strasbourg, France, “we are willing as always to discuss anything. But we are not negotiating anything under threat.”

In an extension of the disconnect between the two North Atlantic Treaty Organization allies, the president has expressed annoyance that he can’t just bypass the European Union apparatus a ltoget her and work out deals with favored leaders like Macron.

That approach would be illegal under the EU treaty and under mine one of t he bloc’s fundamental principles—that all members act in unison on trade matters.

“I would rather deal just with France,” Trump said at the White House on April 24, before a visit by Macron. “The Union is very tough for us. They have trade barriers that are unacceptable.”

David O’Sullivan, the European Union ambassador to the United States, said that if tariffs go into effect, “we are back to the need to pursue this with the World Trade Organization, including the possibility of imposing rebalancing counter-tariffs on equivalent US exports.”

The EU has already drawn up a list of products targeted for retaliation. They are meant to inflict maximum pain on the Republican heartland, including recreational power boats made in Tennessee, digital flight recorders made in Arizona and playing cards made in Kentucky.

But the strategy may not be effective. Business leaders who have visited Washington recently said that the president had been unmoved by protests from members of his own party.

Together, the countries seeking to extend temporary exemptions account for about half of American steel imports. The United States has already granted South Korea a permanent exemption as part of a revised trade deal.

Other countries have already been denied exemptions and started paying tariffs of 25 percent on steel and 10 percent on aluminum. They include China and Russia, as well as Japan, a close ally. New York Times News Service

The European Union should be ready to decisively defend its interests within the framework of multilateral trade rules.”—Germany

China’s economy gives little sign of slowdown as PMIs hold up C hina’s economy is giving little sign that a slowdown is approaching, with services strengthening and manufacturing remaining robust.

T he official manufacturing purchasing managers index stood at 51.4 in April versus the 51.3 estimate in a Bloomberg survey and 51.5 last month. The non-manufacturing PMI, covering services and construction, rose to 54.8, the statistics bureau said on Monday, beating estimates. Levels above 50 indicate improvement.

In the face of persistent threats to the trade outlook from a dispute with the US and the impact of a credit clampdown, policy-makers have expressed fears that the

economy could slow more sharply than the cyclical moderation that’s already anticipated. That said, a cut in the amount of funds that lenders must park at the central bank has buoyed markets, and a mission to China by US trade officials in the coming days may ease tensions.

“We believe the government will manage the situation well and won’t let a trade war take place,” said Shen Jianguang, chief Asia economist at Mizuho Securities Asia Ltd. “Domestic consumption is also resilient, and only investment—local government investment in particular—has slowed a bit, and that’s aimed at controlling debt.”

A gauge of new export orders edged down to 50.7 from 51.3,

though remained broadly in line with readings over the past several months. New orders also slipped, to 52.9 from 53.3.

Input prices decreased slightly to 53. Inventories of finished goods, stockpiles of raw materials, backlogs of work and employment all remained about in line with prior readings.

“The numbers are pretty solid,” Zhu Haibin, chief China economist at JPMorgan Chase & Co. in Hong Kong, said in a Bloomberg Television interview. “This news suggests growth momentum is still fine,” though risks still remain, he said.

The steel industry PMI also increased, climbing to a five-month high of 51.7 as gauges of new orders

and export orders both expanded from a month ago. The data suggest a recovery in the sector as prices rebounded amid falling stockpiles.

Alternative data signal April output softened. The sales-manager sentiment index published by World Economics Ltd. declined, and Standard Chartered Plc.’s Small and Medium Enterprise Confidence Index slipped from a one-year high the previous month.

Private readings

Private PMI data from Caixin due for release on Wednesday and Friday are projected to show readings for services and manufacturing both at lower levels than the official gauges. The Caixin PMI can better

reflect conditions among smaller firms and the private sector.

Economists surveyed by Bloomberg forecast full-year growth of 6.5 percent for 2018, a substantial slowdown from 2017’s 6.9-percent performance. That’s still in line with official targets, and policy-makers are de-emphasizing numerical objectives as they push to strip out financial risk and put expansion on a more sustainable footing.

“The economy is facing a bit of downward pressure,” said Zhou Hao, an economist at Commerzbank AG in Singapore. “A lot recent macro data suggest a little bit of a downward trend, but in general PMI is holding up. Sentiment is stable.” Bloomberg News

Tuesday, May 1, 2018

A7

British businesses confident in face of slowing UK economy

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ritish businesses are feeling upbeat about the economy, according to a Lloyds Bank survey.

Just over half said they were more optimistic about the economy than they were three months ago.

Nevertheless, the balance expecting stronger trading fell, the report published on Monday showed.

The survey of 1,200 companies was carried out between March 29 and April 18. The pound strengthened in that period, climbing to its highest level against the dollar since the Brexit vote, and inflation slowed to 2.5 percent in March.

However, retail and manufacturing reports were less positive, and developments since the survey may point to confidence being short-lived.

Figures last Friday showed the economy registered its worst performance since the end of 2012 in the first quarter.

The retail sector had the weakest level of confidence, Lloyds said, as adverse weather in the first quarter hit sales.

“The uplift in economic optimism this month, against a backdrop of slightly eroding business prospects, is a positive move and may well be reflected in sterling returning to pre-Brexit levels against the dollar,” said Hann-Ju Ho, senior economist at Lloyds Commerical Banking. “It will be interesting to see if that trend continues.”

A separate survey from the Confederation of British Industry last Sunday showed private-sector output rising at its slowest pace since 2016 in the latest three months, with consumer firms “particularly weak,” reflecting the pressure on incomes from inflation.

Still, an across-the-board pickup is predicted.

UK port urges firms to do more

Meanwhile, Europe’s busiest ferry port warned UK businesses it needs to do more to prepare for possible delivery delays post-Brexit, as it emerged 1 in 3 haven’t made plans to cope with customs changes when the UK leaves the European Union next year.

A survey from the Port of Dover and British Chambers of Commerce (BCC) published on Monday found that while more than a third of traders relied on the so-called just-in-time delivery of goods, 33 percent of all businesses still haven’t made plans for possible changes to checks and declarations between the United Kingdom and European Union. The survey consulted 835 businesses across the UK. “For the sake of UK Plc., it is vital that fluidity at Dover and throughout the supply chain is maintained,” said Richard Christian, head of policy and communications at the Port of Dover.

“There is no substitutable capacity elsewhere that can handle the type and volume of goods.”

The government has said Britain will leave the EU’s customs union, which allows goods to travel unencumbered through the bloc— despite pleadings from lawmakers across parties for Prime Minister Theresa May to change her mind.

The House of Lords voted in favor of staying in the customs union this month and, while not binding, it could embolden rebels in May’s party to vote the same way in the House of Commons as soon as next month.

The Port of Dover handles as much as £122 billion ($168 billion), or 17 percent, of the UK’s trade in goods. Nearly a third of companies believe they will be impacted in terms of administration, costs or operations by delays or congestion at UK or European ports after Brexit. Bloomberg News

A8

The Regions

Tuesday, May 1, 2018 • Editor: Dennis D. Estopace

BusinessMirror

Albayalde orders regional PNP officials to raise alert for May 1

N

ational Police (PNP) chief Director General Oscar D. Albayalde said during a news briefing on Monday he has given regional police officials the authority to raise the level of alert in their areas should there be a need in order to meet any threats relating to the Labor Day.

“I am delegating to the regional directors the authority to upgrade the alert status as necessary to address peculiar peace and order concerns in their areas of responsibility, particularly in

regional urban centers where Labor Day activities are expected to be held by provincial affiliates of national labor organizations,” Albayalde said.

He added the PNP remains on

a heightened alert as part of its security precautions for the observance of Labor Day, which the Kilusang Mayo Uno (KMU) said it will mark with a rally that will be attended by 15,000 of its members in the capital alone.

Still, the PNP leadership sees no threat, especially in Metro Manila, Albayalde said, adding it is not taking chances, with the more than 10, 000 policemen assigned with the National Capital Region Police Office (NCRPO) “ready to respond to any eventualities.”

“We do not foresee any major peace and order and security concern in connection with the Labor Day celebration tomorrow [May 1], even as it coincides with the 17th anniversary of the infamous Edsa III failed revolt on May 1, 2001, as

Albayalde

well as the possibility that some groups may take advantage of the situation,” Albayalde said.

The PNP chief has given orders to policemen for them to exercise maximum tolerance in dealing

with the rallyists, adding that, as President Duterte ordered, laborers will be allowed to stage rallies even without permits. But they should also do it within the bounds of law, he added.

“As a policy, our security forces will remain tolerant to lawful activities, but we will be firm and uncompromising in addressing acts of willful violence, disobedience, anarchy and disrespect for the rule of law,” Albayalde said. “If they are being shouted at, cursed, then may be there is no problem with that. We will allow them to shout…but we are also asking them not to physically hurt people. Otherwise we will be forced to arrest them and file cases against them and their leaders also.” Rene Acosta

Journalist wounded in Negros Oriental by bike-riding gunmen

By Rene Acosta

@reneacostaBM

A

broadcaster and former chairman of the National Union of Journalists of the Philippines (NUJP)-Dumaguete City chapter, was shot and critically wounded on Monday by motorcycleriding gunmen in Negros Oriental.

Edmund Sestoso, host of the daily blocktime Tug-anan on dyGB 91.7 FM, was on his way home to Barangay Daro, Dumaguete City, after his program when he was attacked at around 10 a.m., the NUJP

in Manila said.

Between four to five bullets struck Sestoso, two in the chest, the others in the stomach and leg, the NUJP said.

The gunmen also shot the tires of a pedicab, whose driver had intended to rush Sestoso to a hospital.

“Good samaritans had to wait for another vehicle to take the wounded radioman to a health facility where he was expected to undergo emergency surgery,” the NUJP said.

The motive for the attack on Sestoso is still being ascertained.

Execs lead groundbreaking of ₧0.99-B Bulo Dam project

D

ONYA REMEDIOS TRINIDAD, Bulacan–National Ir r igation Administration (NIA) and local officials of Bulacan led the groundbreaking of the P990-million Bulo Dam in this town at the Bulo River on Monday morning.

NIA Administrator Ricardo R. Visaya said the dam was first constructed for flood purposes in 1991 but was destroyed in the flood spawned by Typhoon Pedring (international codename: Nesat) in 2011.

The persistent lobby ing of Lorna Silverio, representative of the Third District of Bulacan, saw the rehabilitation of the floodcontrol dam to also become a dam for irrigation purposes, according to Visaya.

Prior to the construction phase of the dam, five packages were made for its north main canal, south main canal, construction of access road and lateral B, south main canal and lateral A and south main canal and lateral C. Josephine Salazar, regional director of NIA in Central Luzon, said the dam will provide irrigation water to 35 hectares of rice-

land in Barangay Kalawakan in this town and 535 hectares in Barangay Malibay in the adjacent Barangay Malibay in San Miguel town during the dry cropping season. Salazar said this is expected to benefit at least 500 farmers.

It will also increase crop production for 200 hectares of riceland and 370 hectares for diversified crops during the dry season, she added. Likewise, she said the area would serve as development site for inland fish culture in the upstream of Bulo Dam, providing additional employment opportunities to residents.

The dam also serves as catch basin for the 20 barangays of San Miguel town and will help mitigate the perennial flooding that the area experienced since the dam was destroyed in 2011, Salazar said.

The dam features a 29.05-meter high earthfill storage dam with a crest length of 141 meter and drainage catchment areas of 45 square kilometer.

Main canals are 4.20 kilometers in the north side and 6 kilometers south side with 13-kilometer lateral canals. Kristen Roz Mateo

SORT CHANGE

A woman uses a winnower to separate the chaff from grain in this farm in Sinilóan, Laguna. Sinilóan is a second-class municipality that lies between the plains of the Sierra Madre Mountains and the Laguna de Bay. Sinilóan is a center of education, commerce and transportation, serving towns in eastern Laguna and some towns from the provinces of Quezon and Rizal. Bernard Testa

www.businessmirror.com.ph

Suspected ASG members kidnap two female cops

S

USPECTED members of the Abu Sayyaf Group (ASG) abducted last Sunday four people, including two members of the Philippine National Police (PNP) in Sulu, amid the ongoing campaign by the military against lawless groups in the province.

The victims were aboard a tricycle when they were flagged down and forcibly taken by 11 armed men at around 12:40 p.m. last Sunday at Barangay Liang, Patikul, Sulu, according to Brig. Gen. Cirilito Sobejana, commander of the Joint Task Force Sulu.

Sobejana identified the victims as Jakosalem Ahamad Blas of Barangay Gandasuli, Patikul; Faizal Ahidji; Benierose Alvarez; and Dinah Gumahad.

PNP chief Director General Oscar D. Albayalde during a news briefing on Monday said Alvarez and Gumahad were policewomen assigned with the PNP Crime Laboratory Regional Office 9 in Zamboanga.

Alvarez has the rank of a police officer 2 and Gumahad, a police officer 1.

Sobejana said the four victims were onboard a red tricycle with body number 1899 and with markings “Igasan family” when they were stopped by the 11 armed men, led by Mujir Yada, a known ASG member.

The suspects forcibly took the victims before the group escaped.

Albayalde said operations were being conducted by soldiers and policemen to locate and rescue the kidnap victims.

“They came from the camp of the AFP [Armed Forces] and they were abducted while heading home at around 11 a.m. [Sunday],” Albayalde said. “As of now, there is no communication yet whatsoever, they could not be contacted.”

Sobejana said three battalions of soldiers were scouring Patikul, working for the “immediate” recovery of the victims. He said the kidnapping may have been staged by the ASG for propaganda or for a plain kidnap-forransom case.

The ASG in Sulu is the subject of continuing military operations, and the kidnapping, Sobejana said, may have been carried out in order for the terrorists to send the message that they “still exist.”

With the latest victims, the ASG in Sulu is holding 14 kidnap victims, Sobejana said. Rene Acosta

PHL’s 10% sugar-output drop within estimates

By Jasper Emmanuel Y. Arcalas @jearcalas

T

HE country’s sugar output in the current crop year (CY) 2017-2018 declined 10 percent to 1.661 million metric tons (MMT), from 1.845 MMT recorded output during the same period of 2017, latest Sugar Regulatory Administration (SRA) data showed.

Preliminary data released by SRA showed that raw sugar production from September 1 until April 8 reached 33.239 million 50-kilogram bags (LKg), from the 36.909 million LKg posted a year ago.

Despite the expected decrease, total sugar output in the current crop year is more than enough to cover the projected total demand

for sugar pegged at 2.17 MMT. The decline is also within SRA’s estimates that total sugar output in CY 2017-2018 would reach 2.27 MMT, 9.2 percent lower than the 2.5 MMT recorded production in the previous crop year.

During the reference period, the country’s total raw sugar demand reached 1.397 MMT, 8.88 percent higher than the 1.283 MMT recorded a year ago.

Of the total raw sugar demand, about 82.82 percent were for domestic consumption, which reached 1.157, 3.58 percent lower than the 1.2 MMT recorded during the same period last year.

SRA, a government-owned and -controlled corporation attached to the Department of Agriculture,

estimated total local sugar demand in CY 2017-2018 at 2.17 MMT. Refined-sugar production during the period expanded by 3.97 percent to 629,670.9 MT, from 605,612.3 MT recorded during the week ending April 9, 2017.

Local demand for refined sugar was pegged at 660,380.8 MT, 24.47 percent higher than last year’s 530,544.35 MT. The volume of sugarcane milled during the week ending April 8 reached 19.102 MMT, 6.20 percent lower than the 20.366 MMT recorded last year.

Milling recovery rate in the current CY to date was pegged at 1.75 LKg per MT, 3.85 percent lower than the previous year’s 1.82 LKg per MT.

The SRA estimated that total sugar output in CY 2017-2018 would reach 2.27 MMT. Earlier, the SRA said that the raw sugar-output decline in the current crop year is attributed to the frequent rainfalls in sugar-producing provinces, resulting in lower yield and delayed mill operations.

“What’s happening is because there was so much rain—you know sugarcane is sensitive to rains—the harvesting has been slowed down coupled by the slower production by mills,” SRA Administrator Hermenegildo Serafica said in February.

Sugar industry stakeholders also said that some farmers have reduced their inputs due to the lower prevailing sugar prices at the start of the crop year.

Operation Smile to treat 100 oral cleft patients in Davao medical mission

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AVAO CITY—The international medical charity group Operation Smile would bring confident smiles anew to 100 oral cleft patients here, bringing to almost 32,000 the total of afflicted young Filipinos already treated for free by the operation that began 24 years ago in the Philippines.

The operation here from April 30 to May 2 would involve 48 medical experts and professionals, many of whom have been regular volunteers of every Opera-

tion Smile surgeries across the country.

Christine Lu, program director of Operation Smile Philippines, said the screening of patients began this week and would look at the overall health condition and preparedness of patients for the operation, which would last for 45 minutes on the average.

The charity group has already conducted 48 missions in Mindanao since 1994, part of the total 331 missions across the country. Some 31,904 patients

(16,440 in Mindanao) have been treated for different cleft conditions since then in 79 cities and towns (36 in Mindanao).

In its group of medical professionals and experts were plastic surgeons, anaesthesiologists, pediatric intensivists, pediatricians, orthodentists and clinical supervisors.

Lu said while the ideal age range for treatment are between six months old to one year, there were cases that older persons were accepted for surgery. She

cited the case of a 64-year-old woman in China whose double cleft were closed by surgeons.

“The woman approached the team to accept her for surgery in order to close all those years of bullying against her,” Lu said.

Roberto J. Manzano, country director of Development Philippines Asia regional office, said there are 5,000 new cases of cleft problems yearly in the Philippines.

Despite the almost 32,000 free surgeries conducted by Operation Smile, he said there were still a backlog, or untreated cases of 18,000.

The Operation Smile said the cleft “is an opening in the lip, on the roof of the mouth or the soft tissue at the back of the mouth.”

“It is a congenital defect that occurs early in a child’s embryonic development, usually between the fourth and sixth week of pregnancy when the fetus’ facial

structure develops.” It said “scientists believe a combination of genetic and environmental factors, such as maternal illness, drugs or malnutrition, may lead to a cleft lip or cleft palate.

The group said “oral cleft is a serious medical and social problem that is left largely unattended by the government.

There are no organized public programs to address the problem, which makes Operation Smile’s work even more urgent and important.” Manuel T. Cayon

Global Eye BusinessMirror

www.businessmirror.com.ph

Denmark reconsiders electric car subsidies

By Nick Rigillo & Peter Levring | Bloomberg

D

enmark may be open to financial incentives to buy electric cars after seeing a dramatic drop in sales of nonpolluting vehicles, according to Prime Minister Lars Lokke Rasmussen.

“We have tax incentives for electric cars, and you could discuss if they should be bigger. I will not exclude that,” Rasmussen said in an interview in Copenhagen. Any new incentives would be announced along with a government plan to boost clean-energy consumption after the summer, he said.

Danish sales of electric vehicles have fallen dramatically—from nearly 5,000 in 2015 to around 700 in 2017—since Rasmussen’s centerright government phased out subsidies such as those offered in Norway and Germany.

With diesel having fallen out of favor across Europe in the wake of the Volkswagen scandal, Denmark is now debating which vehicle types to promote and which to discourage.

The government has come under fire for its indiscriminate cuts to registration taxes, which have eroded incentives to buy green vehicles rather than those powered by fossil fuels.

Denmark has no car industry of its own and has one of the highest import duties in the world.

Adding to pressure on the government, the opposition Social Democrats grabbed the limelight last week by announcing plans to ban the sale of diesel vehicles by 2030, if they win elections due to be held by June 2019.

Poster child

Rasmussen’s government last Thursday unveiled plans to consolidate its reputation as a poster child for clean energy by announcing 12 billion kroner ($2 billion) in funds earmarked to help it go fossil-free by 2050. The proposals include an 800-megawatt offshore wind park, which would be one of the world’s biggest, investments in biogas and a government tender that pitches different green technologies to compete on producing the cheapest electricity.

At the same time, Denmark is reducing subsidies on renewable energy, arguing that the technology is almost ready to stand on its own feet.

We’ve now reached a stage where “we can continue to build capacity without necessarily investing taxpayers’ money,” Rasmussen told Bloomberg. “This is the first time in Danish history that we can go green and cheaper at the same time.”

Denmark is home to the world’s biggest wind turbine maker, Vestas Wind Systems A/S, and Orsted A/S, the largest operator of offshore wind parks. The government is also hoping that lowering taxes on electricity will encourage more people to ditch home heating based on fossil fuels.

Last year 43 percent of Denmark’s electricity consumption came from wind energy, a world record, with the ratio set to increase over the coming years. Rasmussen said the goal is to make the economy greener and less vulnerable to swings in commodities markets. “That’s why we’re proposing to cut taxes on electricity, to raise demand and ensure that green energy is more competitive versus fossil fuels.”

THIS file photo, Martin Sukup, an electrical engineer for Tesla Motors Inc., demonstrates the charging procedure on an S sedan before the grand opening of the Tesla Supercharger station in Lebec, California.

Patrick T. Fallon/Bloomberg

Editor: Angel R. Calso • Tuesday, May 1, 2018 A9

Food fight in EU threatens to erupt as budget faces gaping Brexit hole

By Slav Okov & Jonathan Stearns | Bloomberg

A

S the European Union (EU) braces for political battles over its post-Brexit budget, a farm in the poorest member-country shows what’s at stake.

AJD Agro Ltd., a Bulgarian grain producer and exporter, owes its existence to European agricultural aid.

That support now faces the threat of cuts as the EU seeks to fill a Brexitinduced budget hole and ramp up spending on security in a muchanticipated proposal due on May 2.

The company was losing money until the first EU payment arrived in 2008, a year after Bulgaria joined the bloc. Since then, the business has grown into a profitable seller of wheat, barley, corn and sunflower, Bulgaria’s top maker of alfalfa and a national economic asset that relies on EU funds for a third of its annual investment budget of €5 million ($6 million).

“EU funding rocketed us into space,” Dimitar Machuganov, who runs AJD Agro in the northern town of Letnitsa, said in an April 24 interview, washing engine oil off his hands from a machine he helped repair. “Without it, we had no chance to get where we are now. We became a modern farm. This helped us win the trust of banks, gave us the experience to develop.”

Shrinking coffers will test the EU’s ability to address the needs of people like Machuganov and pose a fresh challenge to European political cohesion as deliberations begin over the bloc’s 2021-2027 spending program. Relations have been frayed in recent years by the Greecetriggered debt crisis, the largest flood of refugees since World War II, the UK’s vote to leave the bloc and democratic backsliding in Eastern Europe.

Key funding While amounting to only 1 percent of EU economic output, the European budget of about €140 billion a year provides key funds for farmers, poorer regions and researchers in everything from energy to space technologies.

With national transfers filling about 80 percent of the EU’s coffers and Britain being the No. 2 net contributor, after Germany, Brexit will leave a €10 billion annual hole just as the bloc faces calls to spend more on border controls and defense amid heightened concerns about Islamic terrorism, Middle Eastern and African migrants and Russian aggression.

This has put the spotlight on EU farm subsidies and regional aid, which together account for about 70 percent of the bloc’s outlays. The budget proposal due on Wednesday from the European Commission, the EU’s executive arm in Brussels, will foresee a 6-percent cut in those two programs, according to an official familiar with the matter.

“The EU’s best bet is to spread the pain fairly with a balanced combination of spending cuts and increased contributions,” the London-based Centre for European Reform said in an April 24 report.

Region divided

That’s easier said than done. The multi-annual EU budget needs the unanimous support of national leaders and rich, western European countries are split over the way ahead.

France leads a group that strongly

Wheat grain sits in a pile at the Kaap Agri Ltd. grain silo in Malmesbury, South Africa, on April 17. The World Bank said last week that it sees South Africa’s economy growing 1.4 percent this year, up from 1.1 percent estimated in January. Dwayne Senior/Bloomberg

supports farm subsidies, while the Netherlands is allied with Austria and Sweden in ruling out higher national contributions.

As a net recipient of EU funding, Bulgaria is keenly aware of the economic importance of farm aid and of the political need for allies like France.

The Bulgarian agricultural industry has been earmarked €7.4 billion in the EU’s current 20142020 spending plan. The sector accounts for nearly 7 percent of the country’s jobs and more than 4 percent of its economy, almost three times the EU average. Grains are about a third of farm production in Bulgaria, the current holder of the 28-nation EU’s rotating sixmonth presidency.

“We received serious support, including from contributors like France, in our position to preserve this policy,” Liliana Pavlova, the Bulgarian minister in charge of the

country’s EU presidency, said in Sofia on April 20.

EU-funded wine

Last August Bulgaria showcased local wine made possible by EU funds in a bid to cement political ties with France. While French President Emmanuel Macron and his Bulgarian counterpart, Rumen Radev, discussed workers’ rights in a residence near the Black Sea city of Varna, their wives lunched on a restaurant terrace above the water and drank a Chardonnay-Pinot Gris label from Orbelus Organic Winery JSC. It took Blagoy Rusev, the CEO of Orbelus, 14 years and European farm subsidies to build the winery. After he and a friend bought 7 hectares of land in 2000 to produce organic wine, initially as a hobby, they purchased their first tractor with EU aid several years later and completed a 3.2-million lev ($2-million) barrelshaped winery in southwest Bulgaria

in 2014. Half of that money came from the EU. “Reducing agricultural funding would seriously affect the whole wine sector,” Rusev, who exports to such countries as the US, Canada, France and Poland, said in his Sofia office on April 19. “Even now, the farm subsidies are not enough to keep Bulgaria competitive.”

Solidarity needed

Back north in Letnitsa, a town of fewer than 3,000 inhabitants located near a series of waterfalls that attract tourists, AJD Agro’s Machuganov is anxious. While boosting security spending is understandable, it would be short-sighted to do it at the expense of farm subsidies, he said, adding that political courage is needed to ensure higher contributions to the European budget.

“I hope the decision-makers in Europe are more wise,” he said.

“Europe needs more solidarity.”

Not everybody’s buying the Saudi story, even as money gushes in

By Netty Ismail | Bloomberg

which invests in Saudi Arabia and other frontier markets. Balk has found a way around the poor accessibility to management in the kingdom, using quantitative and qualitative analysis to select high-dividend stocks with above-average returns on equity. His investments in Al Rajhi Bank, Saudi Basic Industries Corp. and Saudi Telecom Co. have paid off as the stocks rallied.

“The issue of corporate governance and transparency exists not only in Saudi Arabia, but also in Vietnam, Africa and other frontier countries,” Balk said.

W

hile tens of billions of dollars gush into Saudi Arabia on a potential MSCI Inc. upgrade to emergingmarket status, it will take more to keep investors enthused.

The Arab world’s biggest stock market will probably face difficulty in retaining foreign money unless companies become more transparent, according to some investors. Executives aren’t used to the level of scrutiny demanded by global funds as retail buyers, who typically focus on charts rather than financial analysis, account for about 75 percent of daily trading, according to Gary Dugan, chief investment officer at Dubai-based family office Namara Wealth Advisors Ltd. Gary Greenberg, an investing veteran, isn’t joining the Saudi party. The London-based head of global emerging markets at Hermes Investment Management Ltd. wants more evidence of economic and political change, as well as confidence in the rule of law as Crown Prince Mohammed bin Salman seeks to modernize the kingdom and wean it off its reliance on oil.

Other investors, including J O Hambro Capital Management, are wary of adding to their emerging-market holdings as concern over the pace of US policy tightening sent equities retreating from a multiyear high.

“The index-inclusion story merits a trade into the market, but in the absence of solid evidence of real change, it does not yet merit a long-term investment,” Greenberg said.

While foreigners currently own only 5 percent of Saudi Arabia’s $517-billion stock market, MSCI’s endorsement will draw more institutional money from abroad, diversifying the investor base. The index provider will probably upgrade the country to emerging-market status in June, with implementation starting next year, after a similar decision by FTSE Russell

More expensive

The Kingdom Tower, center rear, stands as automobile traffic moves along the King Fahd highway, left, and Olaya Street, right, in Riyadh, Saudi Arabia, on December 1, 2016. Saudi Arabia is working to reduce the Middle East’s biggest economy’s reliance on oil, which provides three-quarters of government revenue, as part of a plan for the biggest economic shakeup since the country’s founding. Simon Dawson/Bloomberg

last month. It may attract inflows of about $50 billion, even before an expected initial public offering by oil company Saudi Aramco, which may be the world’s largest, according to Franklin Templeton Investments.

“Some of the best strategies I’ve seen in Saudi Arabia are very, very technical and nothing to do with the fundamentals,” said Dugan, previously the chief investment officer for wealth management at Emirates NBD PJSC, Dubai’s biggest bank. “A foreign investor would be well advised not to look at the intraday or daily volatility, but to believe that they’re holding a good-quality company.”

Given the sparse research coverage, Saudi companies should start holding quarterly analyst presentations and provide forward-looking guidance to attract and retain foreign capital,

according to M.R. Raghu, head of research at Kuwait Financial Centre SAK, which manages more than $3 billion.

‘Curiosity capital’

“Otherwise, upon inclusion in the index, ‘curiosity capital’ can flow but will not stay,” Raghu said. Qatar and the United Arab Emirates saw stock rallies fade after MSCI upgrades in May 2014, while Pakistan’s main index lost 15 percent last year after getting a similar boost.

That suggests the flows that have propelled Saudi stocks to the highest since 2015 are also set to slow. “If history is a guide, then we can also expect a period of underperformance of the market once the upgrade is effective,” said Marco Balk, a fund manager at Joure, Netherlands-based Trustus Capital Management BV,

Saudi stocks have become more expensive at a time when investors are questioning whether the two-year rally in emerging-market assets will last. Saudi Arabia’s Tadawul All Share Index is trading at 15 times estimated earnings per share for the coming year, versus 12 times for the MSCI Emerging Markets Index. The gap between the measures is the widest since 2015.

“We are starting to get worried about the longevity of this cycle,” said Nudgem Richyal, a senior fund manager in Singapore at J O Hambro Capital Management. “We are not looking to add.”

While the crown prince’s plan to transform the kingdom and the prospect of MSCI inclusion have boosted the stock market, “the latter is more real,” said Greenberg, who previously ran his own hedge funds after a stint at Goldman Sachs Asset Management. The declared crackdown on corruption, which included the detention of dozens of the country’s rich and famous, has also “undercut the liberalization narrative that the crown prince disseminated on his recent world tour,” he said.

“Although the prince’s social initiatives are a breath of fresh air to the population—and we are confident in this after two recent visits—his economic initiatives leave us less confident,” Greenberg said.

A10 Tuesday, May 1, 2018 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

More and better jobs

W

hile many people think of Labor Day as just another holiday, the occasion is meant to honor the contributions of working men and women to the growth and prosperity of our nation.

What workers need most, though, aside from recognition during Labor Day, are straightforward solutions to some of the serious problems they face. Instead of lip service about the importance of their concerns, the government and the private sector should pursue more genuine efforts to solve these problems.

First and foremost among these problems that need solving is the lack of quality jobs available to the country’s work force.

According to the Philippine Statistics Authority (PSA), the nation’s jobless or unemployment rate at the start of 2018 went down from 6.6 percent in January 2017. But the PSA also noted that underemployment rate in the country soared to 18 percent in January 2018, from 16.3 percent in January 2017. (The PSA defines underemployed as “employed persons who express the desire to have additional hours of work in their present job, or to have an additional job, or to have a new job with longer working hours.”)

The Philippine Job Happiness Index of JobStreet.com showed that job satisfaction among Filipino workers in 2017 dropped—from the 5.25 in 2016 to 4.97 in 2017—mainly due to the lack of career development and training opportunities.

The country needs to produce more quality jobs to expand the middle class and ease the burdens of low-income sectors. We need to be able to make the relative success of the Philippine economy count in terms of reducing unemployment and underemployment and attaining inclusive growth.

Nowadays, whatever marginal gains in employment the government achieves is easily eroded by high food prices.

We need this economic growth the government frequently boasts of to actually have a positive impact on our people’s lives, particularly the poorer sectors of our society, to directly translate into more decent jobs and better pay.

We need sound, aggressive and actionable strategies to propel jobs growth and remove hurdles to full employment. We also need measures to create new jobs for marginal households.

Such measures should include the use of all available assets, including idle or nonperforming government land and facilities for labor-intensive projects.

It should include community employment programs tied to infrastructure projects, particularly Dutertenomics’ “Build, Build, Build” agenda.

Jobs provide people with incomes that enable them to buy goods and services and to save. The increase in consumption stimulates the market, builds up the economy and provides additional revenue for the government. And the accumulation of savings provides more funds for investment.

The government needs to take the lead in creating jobs. Officials should draft a national employment plan that would compel every agency and stateowned firm to carry out more labor-intensive projects.

To make sure these agencies do, Congress should consider as factors for approving their budget not only their performance, but also the number of jobs they could provide. Loan applications with government financial institutions should be approved on the basis of the number of jobs the projects to be funded would create.

The Duterte administration could help ensure that every public project is highly labor-intensive. It could compel every agency to help set achievable employment targets. It could create an interagency panel to monitor jobs creation performance.

The $180-billion infrastructure budget the government plans to spend over the next decade under the Build, Build, Build agenda of President Duterte is bound to have the highest job-creation potential that could generate the highest returns for the economy. These infrastructure projects, such as farm-tomarket roads, school buildings and irrigation systems, stable and affordable energy sources, communication networks, are all urgently needed. Whether these projects involve new construction or improvement of infrastructure or continuous maintenance, they would all provide direct employment, help lower the costs of production and, consequently, also reduce the prices of goods.

Since 2005

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Manny B. Villar

THE Entrepreneur Continued from A1

T

he bad impression and the criticisms were not heaped only on the young generation. My business takes me to many foreign countries, so I could not always avoid being at the receiving end of the unpleasant assessment of our economy and the comparison between the Philippines and our neighbors.

Fast forward to 2018. Just last week, the BusinessMirror, as well as the other major dailies, came out with a report, which cited the Asian Development Bank (ADB) as giving the Philippines what I would consider as the biggest vote of confidence.

“I say this to my colleagues, the Philippines is in like a golden age for its economic growth. It has been growing at this pace for several years, and it is in its strongest economic expansion in over 40, 50 years,” ADB Philippine Country Office Director Kelly Bird said in a briefing.

What makes the assessment more

significant is the ADB’s reputation as a conservative institution when it comes to evaluating a country’s performance and predicting its prospects. This kind of growth, according to Bird, is based on solid macroeconomic fundamentals that can be sustained in the medium term.

“It’s quite a virtuous cycle, that’s why I call it a golden age for the Philippines, because it’s growing in a very sound macroeconomic policy framework,” he added.

He noted that the Philippines’s recent economic growth occurred at a time when there is also moderate

inflation, low deficit, declining debt and investment-grade rating.

The country’s fiscal position remains strong, with a deficit of only 2.2 percent of GDP and national debt standing at around 42 percent of GDP, the lowest in 20 years.

According to Bird, this will be strengthened by the revenues from the Tax Reform for Acceleration and Inclusion program, estimated at P90 billion this year and P140 billion next year.

The ADB also believes that reforms are in place to support the government’s infrastructure plan that will continue to sustain growth over the medium term.

In its latest forecast, the regional lender said the country would sustain growth in 2018 and 2019, as reforms are in place to support the government’s infrastructure plan that will continue to sustain growth over the medium term. Bird says the infrastructure program is important in alleviating poverty, which is relatively high compared to high-income countries.

The ADB’s Asian Development Outlook report projects Philippine GDP growth at 6.8 percent this year and 6.9 percent in 2019, up from 6.7 percent in 2017. In addition to infra-

structure spending, rising domestic demand, remittances and employment will drive growth.

Other institutions expect the Philippines to be one of the world’s fastest-growing economies this year.

Surveys among foreign investors list the Philippines as one of the best destination for investments. Last year net foreign direct investment reached $10 billion.

We could not have predicted that we will be number one in economic growth. That’s very unusual for us.

The climb from a laggard to a leader is quite a transformation, even on a personal basis. These days, when I travel abroad, it’s very refreshing to hear what foreign businessmen are saying about our country. It makes me proud to be a Filipino.

It is very refreshing when you look back and be inspired as we prepare for the next generation. With the continuous advance of GDP, per capita growth—there’s no stopping us from advancing to upper middle-income economy in two to three years. And if we can sustain our economic growth, in four more years we will be a completely different country.

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

A market of gypsies, snake charmers and magicians

T. Anthony C. Cabangon

Editor in Chief

Senior Editors

Refreshing transition

John Mangun

OUTSIDE THE BOX

T

he Philippine Stock Exchange is becoming more like a souk or marketplace in the Medina of Marrakesh where “the air is rife with cries of gypsies, snake-charmers, minstrels, magicians and folk-singers. If you’re not paying attention, you could end up with a monkey on your shoulder or snake around your arm”.

The Jemaa el-Fnaa market square goes back to the year 1150 and the skilled art of bargaining by the local merchants is at least as old. The unwary tourist, new to ways of the souk, may find that the freshly squeezed orange juice is much more orange soda than juice. A nasty looking grandson or two will suddenly join the “free” fortune-teller if a cash gift is not offered at the end of the session.

Don’t misunderstand me. I have absolutely no problem navigating a medieval bazaar or the stock market. But then again, I have not been a tourist in either for many decades.

And it is always good to wear your Indiana Jones fedora hat and keep a bullwhip close at hand.

Like at the souk, the traveler into the stock market will meet every imaginable “guru,” “expert,” “promoter” and “con artist” possible. The stockbrokers are certainly more respectable and honest but are not unlike the shops in the carpet souk, which have been dealing in handmade rugs for many generations. It is and always will be “Buyer Beware.”

It is not that those who would help you on your journey through the stock market are dishonest— although some are—but that the average, even experienced, investor does not know how to get the best price. And you need the “best price” to get the best profit. Just like at the Divisoria Market in Manila, either

The companies are constantly aware of any negatives in the marketplace that might affect public perception and, therefore, their sales. Yet they are shocked when the stock price falls 20 percent because a research report from a stockbroker moved from “hold” to “sell.”

you are going to get the most profit or someone else will.

On the other hand—which there always is unless you are a Saudi Arabian thief—the most naive and often clueless players in the stock market are many of the listed companies. Too many second line companies cannot come to grip with the fact that their stock is not the company and must be treated almost like a separate entity.

They ignore the dynamics of the stock and then wonder why the price is way below what they think it should be based on corporate value.

If these companies sold their product or service like they “sell” their stock, they would have never lasted long enough to go public. Companies can spend millions on advertising and public relations and then rely on a junior assistant to prepare a press release that might have an effect on stock price.

The companies are constantly aware of any negatives in the marketplace that might affect public perception, and therefore, their sales. Yet, they are shocked when the stock price falls 20 percent because a research report from a stockbroker moved from “hold” to sell. A major positive corporate development is limited to a stock exchange disclosure rather than proper press coverage and then they are surprised when the stock price goes nowhere.

There is not a single public relations firm in the Philippines that has shown me any expertise in disseminating news and information about listed companies in a way that is helpful to investors. If investors are not aware of or do not properly understand positive corporate developments, then, of course, there will not be a positive reaction in the stock price.

Listed companies have an obligation to their shareholders as much as they do to their customers. But most do not recognize that responsibility and are not competent in fulfilling it. The stock market suffers.

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

Are critics telling the truth about Teo?

A timely and weighty idea for today’s Labor Day Cecilio T. Arillo

database

Ernesto M. Hilario

ABOUT TOWN

T

ourism Secretary Wanda Corazon T. Teo recently found herself at the receiving end of a broadside from critics apparently unhappy with her success in pushing the closure and rehabilitation of Boracay Island and the continued increase in tourist arrivals in the Philippines.

This time, critics cited alleged findings from the Commission on Audit (COA) on the Department of Tourism’s (DOT) highly successful advertising program, which allowed the agency to achieve its target of more than 6.5 million tourists in 2017.

News reports claimed the COA took exception to the lack of documents provided for payments made by government television network PTV 4 to Bitag Media Unlimited, Inc. for DOT ads placed in the Kilos Pronto TV program hosted by hardhitting journalists Erwin Tulfo and Alex Santos. The news reports made it appear that the DOT placed the ads with the program whose producer and main hosts are brothers of the tourism secretary.

Nothing is further from the truth, it turned out, as the DOT made it clear that it made the ad placements with PTV 4, and not with any private company. Teo noted that while the DOT ads were placed by the PTV 4 management with Kilos Pronto, she had no role in such a decision and assumed it was based on the network’s assessment of which TV programs had the most viewership or audience share. If there is one TV journalist that regularly gets the big audience, it is Erwin Tulfo whose huge ratings arise from his hardhitting style of exposing anomalies and corruption in the government and the private sector. The PTV 4 management also issued a statement clarifying that it has submitted all the documents requested by COA to justify the disbursement of the DOT advertising funds.

The DOT has been putting out advertisements in domestic and international media outlets, but the deal with PTV 4 was something special because of President Duterte’s directive for government agencies and departments to support the TV network for its key role in the national government’s communications program.

Records from the DOT showed that even former Tourism Secretary Ramon R. Jimenez signed a P9-million contract in 2014 with the then newly launched online news site Rappler for “tourism intelligence” in Bali, Indonesia. What kind of tourism intelligence the DOT and the Philippine government received from Rappler for its P9-million contract was unclear, although it is well-known that Rappler boss Maria Ressa was once based in Jakarta.

Teo has been subjected to attacks by those affected by her no-nonsense approach to managing the DOT since she took over its helm on June 30, 2016, especially with her decision recently to fully support the closure to tourist traffic and rehabilitation of Boracay Island. The findings that almost 700 establishments in the island violated various laws only proved that Teo and Duterte were right in deciding to order the closure of Boracay for six months.

When she took office, Teo had to deal with several problematic projects left behind by her predecessor and veteran ad executive Mon Jimenez. Among these was the controversial ad production contract with an international ad agency that Jimenez entered into when he was about to leave the DOT, which Teo and her team had to manage effectively because it involved the Philippines’s own international tourism marketing campaign.

Teo also had to deal with issues

on the non-liquidation of P240 million in funds given by Jimenez to the organizers of the problematic Madrid Fusión Manila food event, as Jimenez apparently did not sign the service contracts needed to carry out the project.

When it was her turn to scrutinize the project, Teo found out she only needed to give half of the budget demanded by the event organizers chosen by Jimenez. Her decision to make sure this year’s Madrid Fusión event is bid out properly earned her criticisms from allies of the company that managed the first two years of Madrid Fusión Manila that secured the contract at Jimenez’s behest.

To ensure that there would be no questions from the COA on the failure of Jimenez and his team to account for the P240 million he gave for the holding of the 2014 and 2015 Madrid Fusión Manila events, the DOT Central Office had to recall from abroad an official during Jimenez’s time to help settle the paper work and explain the transactions.

PHL-Sweden relations

Philippines-Sweden trade relations received a big boost recently when the Philippine Chamber of Commerce and Industry (PCCI) and the Embassy of Sweden in the Philippines formally launched the Philippines-Sweden Business Council (PSBC) on April 13.

Among those who attended the launching were Swedish Ambassador to the Philippines Harald Fries and PCCI Leaders Francis Chua, George Barcelon and Alegria Limjoco; Ambassador Delia Albert, former foreign secretary; PSBC’s Founding Chairman Atty. Leo G. Dominguez; and Georg Platzer of Ikea Philippines and Carl-Erik Leek of Saab, two major Swedish companies that recently established operations in the Philippines.

Fries welcomed the inauguration of the PSBC as he said this would contribute to the promotion of trade and investment between the two countries since the reopening of the Embassy of Sweden in Manila in November 2016.

The key objectives of the PSBC are to enhance the economic and trade relations between Sweden and the Philippines; to serve as a channel of business and networking opportunities for Filipino and Swedish businesses; and to strengthen the linkages of PCCI in Sweden and vice versa.

The formation of the PSBC builds on the memorandum of understanding signed by the PCCI and the Stockholm Chamber of Commerce in November 2000, in which both chambers agreed to strengthen bilateral economic ties between the Philippines and Sweden.

The PSBC intends to bring Swedish business delegations to key cities in the Philippines to network with local business people, while also organizing Philippine business missions to Sweden in coordination with the Department of Trade and Industry, the Embassy of Sweden and Business Sweden, an organization jointly owned by the Government of Sweden and the Swedish business sector.

All PSBC members can tap the Embassy of Sweden, Business Sweden and the Philippine Trade Attaché in Sweden for assistance to promote trade and business between the Philippines and Sweden.

E-mail: ernhil@yahoo.com.

Tuesday, May 1, 2018 A11

A

FTER more than 40 years of neglect, the House has finally realized the need to strengthen and regulate the indiscriminate employment of foreign nationals in the country without the prior approval of the Secretary of Labor, among others.

As a result, thousands of foreign nationals are working in hotels, mining firms, cigarette manufacturers and other companies to the prejudice of qualified Filipinos, many of them had to travel abroad to seek employment under adverse social, economic and labor conditions.

The House Committee on Labor and Employment has approved a consolidated proposal to strengthen House Bill (HB) 277 intended to amend Articles 40, 41 and 42 of Title II, Book One of Presidential Decree 442, as amended, otherwise known as the Labor Code of the Philippines.

The committee, chaired by Rep. Randolph S. Ting of the Third District of Cagayan, has approved the measure authored by Reps. Karlo Alexei B. Nograles of the First District of Davao City and Jericho B. Nograles of PBA, in consolidation with HB 710 filed by Rep. Bellaflor J. Angara-Castillo of the Lone District of Aurora.

Nograles, chairman of the House Committee on Appropriations, said one of the country’s commitments to the World Trade Organization (WTO)-General Agreement on Trade in Service (GATS) is to review the restrictions in Title II, Article 40 of P.D. 442. The main restriction in the hiring of a foreign national is the

Labor Market Test (LMT) used to determine the non-availability of a qualified, able and willing person in the Philippines to do the services for which the foreign national is being hired. This test is comparable to an Economic Needs Test implemented by other countries.

Nograles explained that the proposed amendment of the Labor Code provision is intended to facilitate uniformity by properly stating the term used by the country in its commitments entered into via bilateral, regional and multilateral agreements.

“It is a way for the country to determine if there is a short supply of workers in specific industries, occupations and professions which probably inhibits the country from increased productivity and industry development. It includes a provision for training of Filipino understudies to transfer skills and technology from the foreign national,” he argued.

Moreover, increased fines and penalties for violations by foreign nationals are also updated to address inflation since the law was enacted almost four decades ago.

In conclusion, Nograles said as the country strives to meet its commitment in the WTO-GATS, Asean Economic Community (AEC), and

other bilateral, regional and multilateral agreements, it is expected to at least review the affected national laws and policies.

“The proposed agreement is a timely initiative to update the said law as the country modernizes as part of a global community. It is also a show of good faith to countries, regions and international bodies the Philippines has agreements with, that the country is willing to accommodate changes in order to meet its commitments. The proposed amendment is beneficial to the country as it paves the way to an improved but still protective policy on employment of foreign nationals,” Nograles said.

The consolidated bill sought to amend Article 40 of PD 442, as amended, so that Title II is renamed Employment of Non-Resident Foreign Nationals. The title of Article 40 is also changed to Employment Permit for Non-resident Foreign Nationals.

The substantial amendment to Article 40 provides: “All non-resident foreign nationals seeking employment in the Philippines shall obtain an employment permit from the Department of Labor and Employment.”

The amendment further provides that “an employment permit may be issued to non-resident foreign national subject to the Labor Market Test based on the nonavailability of qualified and willing Filipino nationals.”

Moreover, the Labor Secretary is authorized to grant exemptions from the LMT to foreign nationals as provided for under existing laws and agreements, as well as in industries or occupations or practice of professions where there is short supply, after tripartite consultation. Foreign nationals issued employment permits shall transfer technology

Our cartoon Nobel Laureate

By Maureen Dowd New York Times News Service

W

ASHINGTON—You can hear those heads exploding from here to Oslo.

Republican lawmakers are pushing Donald J. Trump, the most combative man in the universe, for a Nobel Peace Prize.

How unimaginable is this?

Just picture a wildly hirsute cartoon figure with a hair-trigger temper festooned with a medal of Alfred Nobel reading “Pro pace et fraternitate gentium” (“For the peace and brotherhood of men”).

“The guy who said he could be as presidential as any president except for Abraham Lincoln is instead about as presidential as Yosemite Sam,” says his biographer Tim O’Brien. “I really think of him as Yosemite Sam—just hopping around in anger, firing his gun wildly, sometimes at his own foot. He was so unhinged and ranting in that call to Fox & Friends this week that even the hosts couldn’t wait to get him off the air.”

Yet, Sen. Lindsey Graham, who once labeled Trump “a kook,” “crazy” and “unfit for office,” told Fox News last Friday: “Donald Trump convinced North Korea and China he was serious about bringing about change. We’re not there yet, but if this happens, President Trump deserves the Nobel Peace Prize.”

And here’s the part that would drive Trump haters into a frenzy: If he could pull off denuclearizing North Korea,

he would deserve it more than Barack Obama did when he had that bouquet thrown at him seconds into his presidency. And Trump certainly would deserve it more than Henry Kissinger, who won the prize in 1973 for his efforts to end the Vietnam War, after privately persuading Richard Nixon to keep it going for years and while secretly bombing Cambodia.

If he won, Trump would be within his rights when he claimed it as a personal victory since he decimated the State Department to the point that we wondered if interns in Foggy Bottom were crafting North Korea policy.

It would be a paradox: The man so many Americans loathe as a villain taming a charter member of the Axis of Evil.

Of course, any Strangelovian thing could happen when Little Rocket Man and the Dotard actually get together, given that both Dear Leaders live in bizarro fantasy worlds with fawning courtiers, where lying and cheating abounds. (So far, Kim Jong Un has Trump beat in the fawning enforcement department since he had his uncle killed for, among other reasons, clapping halfheartedly for him.)

And even as Trump helped end the Korean War—does that call for a special episode of M*A*S*H?—he was vowing that Iran “will pay a price like few countries have ever paid” if it ever threatens us in any way.

But for the moment, Trump’s peculiar form of diplomacy—a combination of belligerence, bluster, name-calling and ignorance of history—has somehow produced a possible breakthrough in North

Korea that eluded his predecessors.

Heads are also exploding from Chappaqua to Hollywood as the unfathomable idea sinks in that, despite Trump’s lack of a moral or political core, despite the fact that he has tarnished the presidency with his nasty bullying, race-baiting, unmoored tweeting and authoritarian tendencies, he could get a second term.

Democrats are spun up all over the country, flocking to the polls in special elections with sky-high enthusiasm, buoyed by empowered women driven by disgust at the Groper in Chief who has so far escaped a reckoning.

They are sanguine that they can convert the Trump hatred into a big bad blue wave for the midterms and win back the House and maybe the Senate and get their revenge on the Orange Menace.

Strangely enough, though, a strong midterm for the Democrats could help Trump two years down the road if they take back the reins of Congress and go too far, as Democrats are wont to do.

Republicans paid a price in 1998 for pushing to impeach Bill Clinton, and Clinton regained popularity.

As far as the presidential race in 2020, the Democrats seem to be repeating the mistake that Hillary Clinton made: counting on the awfulness of Trump to do their work for them. (And the righteousness of Robert Mueller.)

They are not grooming a gleaming crop of presidential contenders or honing a seductive message that could win back the alienated voters who put Trump in just because he promised

to Filipino understudies within a prescribed period, the amendment further provides.

The amendment to Article 41 (Prohibition Against Transfer of Employment) of PD 442, as amended, provides that after the issuance of an employment permit, the foreign national shall not transfer to another job or change his employer without prior approval of the Labor Secretary.

Furthermore, any non-resident foreign national, who shall take up employment in violation of the provision of this bill and its implementing rules and regulations, as well as the employer or the responsible person representing the employer, shall be punished with a fine or not less than P50,000 nor more than P100,000, or imprisonment of not less than six months nor more than six years, or both such fine and imprisonment, at the discretion of the court. The foreign national shall be subject to deportation after service of his sentence, the amendment provides.

Moreover, the amendment provides that the Labor Secretary is authorized to impose a fine of P50,000 for every year or fraction thereof to both the foreign national found working without valid employment permit and to the employer.

Lastly, the amendment to Article 42 (Submission of List) of PD 442, as amended, provides that any employer hiring non-resident foreign nationals shall submit a list of such nationals, indicating their names, citizenship, foreign and local addresses, nature of employment and status of stay in the country. The Labor Secretary shall then determine if they are entitled to an employment permit.

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

to shake things up.

Their leadership and top presidential prospects symbolize the past, not the future. They should be the éminences grises ushering in an exciting new generation, not the retreads and missed-their-moments dominating the field, as the entire party is leaping to the left—another complication in a national election where you have to appeal to a wide swath of voters. The Democrats are counting on Trump to self-destruct.

And certainly, he loves to light his own auto-da-fe and incriminate himself. But the Democrats’ delight in this distracts them from rising from the humiliating ashes of 2016 with some dynamic new ideas and messengers.

“We’re dealing with a person who’s psychologically and categorically different from any previous president,” says Trump biographer Michael D’Antonio.

“He may be the most successful con man in history atop the most powerful nation in history. He has prevailed in a way no other spinner of tales has prevailed.

“He’s shaping the behavior of much of the world, getting inside people’s heads.

He’s like Cambridge Analytica. He knows how to determine what people are interested in and like and dislike and respond to. Then he acts in a way that changes the course of things.

“And expecting him to be different or less crazy only makes us the crazy ones.

His behavior gets more outrageous, out of control and florid as the pressure on him persists. And it’s only going to get worse.”

That’s comforting.

When Moon meets Kim, be wary of success

F

riday’s summit between the leaders of South and North Korea may seem like a sideshow to the main event—the proposed meeting between President Donald J. Trump and North Korea’s ruler, Kim Jong Un. It’s more important than that.

Handled poorly, these initial talks may relieve pressure on North Korea too soon, undermine the United States negotiating position, and doom the main event before it starts. Handled well, they could trace a path toward ending the world’s most dangerous nuclear standoff.

That’s quite a burden for South Korean President Moon Jae-in. A longtime

supporter of rapprochement with the North, Moon has spent a lot of political capital on bringing Kim to the table.

He’ll be eager—maybe too eager—to announce a breakthrough. Perhaps with that in mind, South Korean officials have dropped hints about declaring an end to the state of war that’s existed on the Korean Peninsula since 1953.

Success in this venture isn’t about grand gestures of that kind. What counts is to prepare the ground for the TrumpKim summit—because if that fails, any progress Moon might seem to make this week will mean nothing. Moon should stay focused on the real goal. North Korea says it’s ready to discuss “denuclearizing” the

peninsula, but the two sides have very different ideas of what this means.

The Pyongyang regime seems to envision eliminating not just its own nuclear stockpile but also the nuclear umbrella the US currently extends to its South Korean ally. Until then, it expects to keep its arsenal and be treated as a nuclear power. That’s unacceptable, and Moon shouldn’t paper over the ambiguity. Better to clearly align South Korea with the US, and deny Kim the chance to drive a wedge between the allies.

Second, Moon shouldn’t offer immediate relief from sanctions. That would encourage China and others to ease up, as well. Wider cross-border ties, on the

other hand, make sense: reunions of families split by the war; more K-pop concerts and soccer matches; educational exchanges; and so forth.

Third, Moon should help the US to establish a strict timetable for action.

The North has offered to phase out its nuclear program in exchange for sanctions relief before—then used the time to continue developing its weapons. The Trump administration reportedly wants to tighten the deadline for implementation to two years. That might be too demanding—but Moon should nonetheless aim to bind Kim to a specific and not-toodistant date for keeping his promises.

Bloomberg View

2nd Front Page BusinessMirror

A12 Tuesday, May 1, 2018

DOT spent ₧265M for TV commercials last year–Teo T

www.businessmirror.com.ph

‘Govt money should go to rice farmers’ ROQUE: “If we import 250,000 metric tons, that’s P6 billion payable to foreign farmers. We can just give that money to Filipinos.”

By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

HE Department of Tourism (DOT) spent some P265 million in advertising placements with several local television networks last year.

In a hastily called news conference on Monday, Tourism Secretary Wanda Corazon T. Teo said various TV commercials, “infomercials and features,” were placed with ABS-CBN and GMA for P22 million (launch of “Anak” TVC); CNN Philippines, P20 million and CNN International P51 million; Discovery Channel, P51 million; and BBC, P61 million. This is on top of the P60 million advertising contract of DOT with PTV-4.

She added, the DOT, likewise, spent some P561.5 million in media placements in several key visitor markets in 2017. These markets were the United States, Japan, South Korea and Singapore, among others. She stressed: “It is the DOT’s responsibility to promote the Philippines to local and international tourists.”

The Duterte administration is hoping to attract some 7.4 million in foreign visitor arrivals this year, and 76.3 million in domestic travelers. Teo has admitted that the closure of Boracay Island, a prime tourist destination, will likely affect this year’s arrivals. About 1 million foreign visitors traveled to Boracay last year, an island famous for its white-sand beaches. This accounted for some 15 percent of the 6.6 million total foreign tourist arrivals in 2017.

‘Endo’. . .

Continued from A1

Not all is lost, though. President Duterte was quoted as saying he would most likely, in lieu of issuing the EO, certify as urgent a bill promising security of tenure in the workplace.

And on the eve of Labor Day, the Commander in Chief was expected to consult Labor Secretary Silvestre H. Bello III.

May, may not

MALACAÑANG confirmed on Monday that Duterte may still sign executive order (EO) on contractualization pending talks with Bello.

“I can confirm that there might be an EO that may or may not be signed depending on the meeting tonight,” Presidential Spokesman Harry L. Roque Jr. said in a briefing.

Bello earlier told labor groups that there is still hope that the EO may still be signed.

Malacañang earlier said that the President will no longer be issuing an EO on endo and will just be leaving the matter to Congress.

Roque clarified in previous statements that what the President promised to end is endo and “555” and not contractualization, noting that he was informed by the Department of Trade and Industry that the President has already complied with his election promise Endo refers to end of contract while 555 is the practice of hiring workers for a period of five months only as to avoid giving them benefits and making them regular employees.

Duterte’s declaration to issue an alternative elated the chairman of the Senate Labor Committee, Sen. Emmanuel Joel J. Villanueva, who noted that the security of tenure bill’s authors had twice written Malacañang “in September and in October 2016” to ask precisely that the President certify their measure as urgent. At that time, however, Cabinet officials were simply focused on crafting

₧561.5 million The amount spent by the DOT for media placements in several key visitor markets of the Philippines in 2017 President Duterte has ordered the closure of the popular resort island for six months starting April 26 to make way for government’s rehabilitation efforts that would include a cleanup and implementation of vital infrastructure.

These rehab efforts will be a main focus of newly appointed DOT Undersecretary Jose Gabriel M. La Viña, as part of his duties coordinating with the agency’s regional offices in the creation of new tourism products.

In the same news conference, he said, “[Secretary Teo] actually told me to focus on the regions, and the Chinese market.

She wanted me to help in getting more investments from China as the arrivals are no longer a problem.” He noted that Boracay, being under the regional offices, “may be part of my responsibility, and because [it should be a model of] sustainable tourism.”

La Viña, will primarily handle the farm, faith-based tourism and ecotourism portfolio. “I have 6,000 their own EO, and the Palace basically ignored the lawmakers’ appeals to certify.

Certifying bills

DUTERTE recently said expressed willingness to certify the Villanueva-led initiative.

To be sure, the bills—there is a House version, HB 6908—won’t be enacted in time for Labor Day, but the authors’ hopes are high that the tensions will ease as soon as passage of the security of tenure bill becomes a clear reality.

Asked by BusinessMirror if he was ready to report out SB 1116 for plenary debate when session resumes on May 15, Villanueva replied: “We will release the committee report as soon as we finish circulating the draft to the senators for inputs.”

Villanueva emphasized that “this is still a draft and we are still waiting for the senators’ final inputs before we report it out.”

At the same time, the chairman of the Senate Labor panel described as a “welcome development” the “President’s recent plan to certify our End of Endo Act (SBN 1116),” adding that “this will definitely help in the passage of a new law governing endo.”

Nonethless, Villanueva had explained in an earlier interview that issuance of an EO, ahead of passage of their security of tenure bill—would have been better “because it would give us not just a bird’s eye view but a concrete position of the administration when we talk about our national policy...that contractualization [issue], the job contracting.”

Daunting reality

IN time, the realities of the Philippine economy bared the difficulty of issuing a blanket order to end endo—the catch-all term from the phrase to end of contract. This practice is when businesses lay off workers just before they turn six months at work and are, strictly speaking, due for regularization if they pass performance benchmarks set by their bosses.

Newly appointed Jose Gabriel M. La Viña took his oath of office as an undersecretary of the Department of Tourism on Monday.

photo courtesy of D.O.T.

trees in Cagayan de Oro,” he pointed out, which makes him suited to his new position, and added that he works closely with former Environment Secretary Regina Paz L. Lopez in her ecotourism projects.

He joked he would rather not talk about “faith.”

Of his appointment to the DOT, La Viña described it as a “nice challenge, that’s why I decided to accept it,” although he admitted to have asked for another position. But, “with tourism, we can wipe out poverty in the next five to six years. It’s a lowlying fruit,” explaining that anyone, “even a high-school graduate,” can have a job in tourism, and with the help of social media, earn from it.

Nicknamed “Pompee,” La Viña is credited for the strong social-media campaign that helped Duterte, a former mayor of Davao City, win

the presidential election in 2016.

His last appointment was commissioner of the Social Security System. La Viña took his oath of office before Teo on Monday, prior to the news conference. He replaces veteran tourism official Rolando Cañizal, who was just promoted to undersecretary last year.

According to DOT Department Order (DO) 2018-36 signed by Teo on Monday, a copy of which was obtained by the BusinessMirror, lawyer Marco M. Bautista is now undersecretary for administration and special concerns. He used to handle the farm, faith-based tourism and ecotourism portfolio.

The DO also reiterated the assignments of other DOT officials: Benito C. Bengzon Jr., undersecretary for tourism development planning; Alma Rita D. Jimenez,

undersecretary for tourism regulation, coordination and resource generation; Katherine S. de Castro, undersecretary for public affairs, communications and special projects; and Frederick M. Alegre, assistant secretary for public affairs, as well as legislative liaison unit oversight.

Meanwhile, Teo disclosed the agency’s advertising placements after several media outlets (not the BusinessMirror) published a report from the Commission on Audit (COA), questioning the DOT’s ads in state-owned PTV-4 last year, which amounted to P60 million.

The COA said the ads were placed in a blocktimer TV show produced by the media outfit of her brother, Ben Tulfo. The tourism chief denied there was any impropriety in the agency’s contract with PTV-4.

There’s also endo’s twin, where businesses turn to labor contractors to supply the manpower for essential parts of their operations. While the contracting businesses get to secure their bottom lines, the labor contractors do not provide the workers they farm out with benefits due the regular workers.

Also staring the Duterte policy wonks in the face was the reality of millions of so-called seasonal workers, such as those in tourism and agriculture, where employers cite the dire economics of keeping workers on regular status throughout the year even if they are required only for those periods where the nature of the business requires full operations.

Indeed, it was the classic “easier said than done” kind of promise: millions of workers in high-growth sectors mainly in services have lived for years under this kind of limited-tenure setup.

Other high-growth businesses, including the hotel and restaurant industry and construction, which has boomed with the steady expansion of property and the government’s thrust for infrastructure, have thrived partly because, as businessmen explained, they could cut labor costs and simply rely on labor contractors supplying them the kind of skills they needed, or keep workers on a perpetual “five-month” cycle of hiring and laying off.

workers are regular employees of a manning company. Villanueva acknowledged that such interpretation has spawned more questions, which the legislators will certainly tackle when they deliberate on his committee report.

In a recent radio interview, Villanueva asked aloud, “when you talk about regularization, who should do the regularizing? The manning company or, should it be, for example, the fast-food chain?”

He said a “contentious provision in the bill” is exactly the need to define labor-only contracting.

“Should we limit contractual services to highly specialized skills? For example, if you’re a bank, will you be the one directly hiring your security guards? Will you be required to buy their guns? Train them? Those are among the contentious issues,” Villanueva added, speaking partly in Filipino.

other hand, the senator said, “we want to highlight that labor-only contracting happens when the contractor merely recruits and supplies or places workers to a contractee regardless of whether or not it has substantial capital or investments in the form of tools, equipment, machineries, work premises, among others; OR (ii) the contractor does not exercise control of the contractee.”

Contentious issues

VILLANUEVA’S push for his security-oftenure initiative coincided with a recent development: the Department of Labor and Employment (DOLE) has just ordered a major fastfood chain to regularize its crew even if they had been supplied to the fast-food firm by a labor contractor.

Some labor officials then offered the view that the fast-food chain, or any other similarly situated business, is not required to directly hire its workers as long as such

Of conjunctions

IN an interview with the BusinessMirror right after it became clear that no Palace EO was forthcoming and the best hopes for reform lay in legislation, Villanueva noted that “one of the most contentious provisions in the bill is the definition of labor-only contracting.”

Currently, he added, “Department Order 174 provides that there is labor-only contracting when (i) the person supplying workers does not have substantial capital or investment in the form of tools, machineries, work premises, among others and the workers recruited are performing activities which are directly related to the principal business of such employer; OR (ii) the contractor or subcontractor does not exercise the right to control over the performance of the work of the employee.”

The House version, however, amended this definition and replaced the conjunction “and” to “or,” according to Villanueva.

In his committee’s draft report, on the

‘Win-win’

WHILE his ideal situation of having an EO in place followed by legislation on security of tenure will no longer become reality, Villanueva remains confident that legislation by itself can provide for a “win-win” result both for labor and employers.

The Senate draft report, he stressed, prohibits labor-only contracting, recognizes legitimate forms of contracting, requires all legitimate contractors to obtain a license from the DOLE, provides stiffer penalties for laboronly contractors and other violations, simplifies classification of employees to regular (which includes seasonal and project employees) and probationary, among others.

“Under our proposal, employees of the contractors are deemed regular workers, whose terms and conditions of employment shall not be below the minimum standards set by law, such as payment of social security benefits and retirement pay. This will strengthen and further protect the rights of the workers to security of tenure.”

Boon for employers, too

EMPLOYERS benefit from legislation, as well, he pointed out.

“By recalibrating the definition of laboronly contracting, recognizing legitimate forms of contracting and institutionalizing safeguards to prevent the existence of flyby-night contractors, the interests of the employers will be more protected.”

See “Endo,” A2

By Bernadette D. Nicolas

T

@BNicolasBM

he government is considering increasing its palaybuying price to ensure that the National Food Authority (NFA) will have enough cheap rice to sell to the poor.

Presidential Spokesman Harry L. Roque Jr. also said the government will not scrap its “buy high, sell low” policy as this is a better option than buying more rice from farmers abroad.

Currently, the NFA buys unmilled rice from farmers at a support price of P17 per kilogram (kg) then sells this for as low as P27 per kg. Data from the Phi lippine Statistics Authority (PSA) showed that the prevailing price of commercial regular-milled rice as of April 21 is P40 per kg.

“If we import 250,000 metric tons, that’s P6 billion payable to foreign farmers. We can just give that money to Filipinos.

That’s the same. Let’s increase the price, there’s no difference and there’s no corruption,” Roque said in Filipino.

Buy high, sell low is a policy of the government to ensure food security and stabilize the supply and price of rice, which are the mandates of the NFA. But its buy high, sell low policy has caused the NFA to incur debts amounting to P158.9 billion in 2016. Supply problems have been See “Govt,” A2

Duterte. . .

Continued from A1

Howe ver, it wa s 149t h i n enforcing contracts with a score of 45.96.

Aside from the EODB bill, the government is also putting pressure on local government units (LGUs) to do their part on fast-tracking the issuance of business permits.

Interior Undersecretary Austere A. Panadero said at least 80 percent of LGUs “are already able to process and release its permits in one or two days.”

“It is not only in Quezon City or in the National Capital Region that reforms have been undertaken, but around 80 percent to 82 percent of our LGUs are already able to process and release its permits in one to two days. This is a report submitted by the LGUs and significantly validated by our partners from the PCCI [Philippine Chamber of Commerce and Industry],” Panadero added.

T he A mer ican Chamber of Commerce of the Philippines (AmCham) welcomed the news that the EODB bill might be enacted into law this month.

A mCham Senior Adv isor John D. Forbes said he hopes the measure will bolster the country’s chances at improving its EODB ranking.

“We welcome the new law and appreciate the hard work one by the trade committees in Congress. We also hope the new law and its implementation will improve the ranking of the Philippines in the World Bank Doing Business report, which fell 14 places in 2017,” Forbes told the BusinessMirror.