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‘Cat bond’ for disasters eyed B R C
@ReaCuBM
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HE Philippines is seriously considering proposals, like the issuance of a catastrophe bond (Cat bond), that could be included in the other insurance packages the Duterte administration is now exploring with Lloyd’s of London and the World Bank to cover state assets, the Department of Finance (DOF) said. At the sidelines of the annual meetings of the World Bank and the International Monetary Fund (IMF) in Bali, Indonesia, the DOF pointed out that it is exploring a plan to sponsor a Cat bond to help cover disasterrelated risks in the Philippines and a separate offer of peso-denominated securities to offshore investors. Finance Secretary Carlos G. Dominguez III, with executives of Citi Group (Citi), discussed these proposals, along with a plan to come up with SDG bonds or securities linked to attaining the United Nations’ Sustainable Development Goals. Citi Vice Chairman for Corporate and Investment Banking Jay Collins Continued on A4
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Govt may suspend fuel excise tax hike for 2019
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ESPITE the P40-billion revenue loss if the next round of increase in oil excise taxes is put on hold, the government remains open to suspending it to ease high fuel prices. Economic managers reportedly support that move, and the President considered the idea after getting a letter from 17 proadministration senators. Special Assistant to the President Christopher Lawrence T. Go said in a statement on Sunday that the government is “seriously considering” all available options to lessen the impact on consumers of rising oil prices. Seventeen majority senators
wrote the President on October 9 asking him to halt implementation of the scheduled next-round increases of the oil excise taxes for 2019 and 2020. The minority senators earlier filed a resolution asking for the suspension of the excise tax increase that was imposed
since January 1, 2018, when the Tax Reform for Acceleration and Inclusion (TRAIN) law was signed. The minority also sought the rollback of levy on fuel to December 31, 2017 rates. The call for suspending the oil excise tax had mounted after inflation
Limiting cell site tower builders to 2 slammed
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accelerated in recent months. More expensive fuel was tagged as a major factor behind the rise in consumer prices. “We are open to this, but let’s consider what is stated under the TRAIN law,” Go said. The TRAIN law provides that: “For the period covering 2018 to 2020, the scheduled increase in the excise tax on fuel as imposed in this section shall be suspended when the average Dubai crude oil price based on Mean of Platts Singapore [MOPS] for three months prior to the scheduled increase of the month reaches, or exceeds $80 per barrel.” The Department of Finance, the National Economic and Development Authority, the Department of Energy and the Office of the President are currently monitoring the trend of international oil prices, particularly
NDUSTRY stakeholders are alarmed over a proposal to limit to two the number of companies that could be authorized to build cellular site towers. In a public consultation last week, the Department of Information and Communications Technology (DICT), the National Telecommunications Commission (NTC) and Presidential Adviser for ICT Ramon Jacinto received some flak in their presentation of the government’s draft policies, rules and regulations on the program. Frontier Tower Associates Chief Executive Patrick Tangley expressed dismay that the proposed two-towercompany policy “does not make sense,” adding that the likelihood of the biggest contributors to building towers come from those “with no licenses at all.” ATC Asia Pacific Ltd. Vice President Asia Manish Kasliwal, meanwhile, noted that an open accreditation process would allow market forces to “make their own decisions”
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DTI pitches prior naming of red tape body chief
Analysts doubt growth of 7% can be sustained
RESIDENT Duterte has to first appoint the director general of the Anti-Red Tape Authority (Arta) before the Ease of Doing Business (EODB) law is implemented. This was according to Trade Undersecretary Rowel S. Barba, who heads the Department of Trade and Industry’s Competitiveness Bureau (DTI-CB) tasked to draft the implementing rules and regulation (IRR) of the EODB law. He said the President must appoint the Arta chief before October 22 for the IRR to take effect. “The UP [University of the Philippines] law center is conducting legal scrubbing and we hope to get the vetted IRR within the week. So far we are on schedule,” Barba told the BusinessMirror. “However, there is a view that the
OME analysts have raised doubts that the Philippines will be back on track next year and will sustain a 7-percent growth for next decade, supposedly driven by its $180-billion infrastructure program. Budget Secretary Benjamin E. Diokno said in Indonesia last week that he expects sustained economic growth for at least 10 years, amid global uncertainties. However, economists such as Calixto V. Chikiamco, president of the Foundation for Economic Freedom, said the 7-percent growth is “not sustainable” because a growing trade deficit and low agriculture productivity will limit growth, adding that he expects growth to be at most at 6.5 percent for this year and next year. “Also, exports [are] too concentrated in electronics, making us vulnerable to the state of the global economy. Besides, with higher interest rates, the economy will surely slow down. Let’s be thankful if we reach 6.5 percent, but more likely lower,” Chikiamco told the BusinessMirror in a message. Data from the Philippine Statistics Authority showed that the country’s trade deficit ballooned
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‘NO U-TURN’ A man struggles to maneuver in the right direction his carabao cart on the national highway in Arayat town in Pampanga on Sunday morning. The carabao, used to sloshing around in the mud in the farm, obviously still has to get its bearings on the hot concrete road. NONIE REYES
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PESO EXCHANGE RATES ■ US 52.2380 ■ JAPAN 0.4836 ■ UK 71.8003 ■ HK 6.9232 ■ CHINA 7.8734 ■ SINGAPORE 39.4057 ■ AUSTRALIA 38.6337 ■ EU 62.8890 ■ SAUDI ARABIA 14.4627
Source: BSP (12 October 2018)
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ADB, World Bank vow to wipe out infra financing gap
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By Cai U. Ordinario
@cuo_bm
HE Asian Development Bank (ADB), Asian Infrastructure Investment Bank and the World Bank have committed to eliminate the infrastructure financing gap worth trillions of dollars to help countries meet the Sustainable Development Goals by 2030. In an outcome statement after the Global Infrastructure Forum 2018 in Bali, Indonesia, the multilateral development banks (MDBs) committed to increase technical assistance and advisory services for knowledge creation and knowledge transfer. They also committed to mobilize sustainable finance for various in-
frastructure projects; support sustainable public procurement; and identify infrastructure and capacity gaps, particularly in least-developed countries, landlocked developing countries, and small island developing states and African countries, among others. “The MDBs will continue to de-
velop their role as a bridge between the public and private sectors and address the challenges of achieving comprehensive infrastructure solutions and proactively and positively engage with the public and private sectors to provide advisory services and financial support,” the outcome statement read. “The MDBs will also seek, in a coordinated manner, to minimize the ‘information gaps’ that inhibit efforts to narrow the global infrastructure financing gap,” it added. In an Asian Development Blog, ADB Bangladesh Resident Mission Social Sector Specialist Li Zhigang and South Asia Regional Department Director Human and Social Development Division Sungsup Ra said the total financing gap for infrastructure in Asia is $2 trillion. Zhigang and Ra said that in 2017, the ADB estimated that 45 developing countries in Asia and the Pacific would need to invest $26 trillion over the next 15 years to keep their
growth momentum by 2030. However, these investment requirements only include roads, bridges, ports and telecommunications. They said less attention was paid on social infrastructure such as health and education services. They said the financing gap for health and education infrastructure reach roughly $459 billion a year for physical infrastructure through 2020 and almost as much, $448 billion, for social infrastructure. As of December 2016, Zhigang and Ra said Asia invested $6.2 trillion in the rest of the world, while the rest of the world invested only $4.4 trillion in Asia. “If only one quarter of the net outflow of the region’s famously large savings pile were invested in infrastructure in the region, the financing gap would be filled,” the authors said. “This nearly $2-trillion gap is at the heart of a conundrum that, if solved, could make up the shortfall for physical and soft infrastructure
and unlock Asia’s now obvious vast economic potential,” they added. Zhigang and Ra said there is a need to improve Asia-Pacific’s financing products as solving the financing gap requires the help of the private sector. The lack of innovative financing products hinders the growth of private investment in infrastructure and makes projects more expensive. They also said there is a need to improve project designs that will make infrastructure projects more attractive to private investors. The authors said governments in developing Asia continue to struggle in the preparation of strong and bankable projects. Zhigang and Ra said there is a need to address political and financial risks that can dampen the interest of institutional investors for certain projects. “Solving these problems will require innovative measures. Multilateral development banks can in-
troduce schemes such as wholesale banking through financial intermediaries, or B-loan syndications that commercial banks and other eligible financial institutions can fund, acting as lender of record,” the authors said. “Closing Asia’s infrastructure gap will require a sustained effort involving innovation and partnership among government, development organizations, and the private sector. Multilateral development banks such as the ADB have an indispensable role to play in alleviating government financial constraints and risk sharing,” they concluded. A joint report by 13 development banks released in June noted that in 2017, MDBs and development finance institutions mobilized $73.3 billion of long-term private and institutional investor cofinancing for infrastructure such as power, water, transportation and telecoms. This compared with $68.7 billion mobilized in 2016.
DOTr to decide by year-end on Cavite MSMEs from Mimaropa eye LGU’s bid to develop Sangley airport ₧50M in sales from trade fair T HE Department of Transportation (DOTr) aims to resolve before year-end the issue on the unsolicited proposal of the local government of Cavite to develop, modernize and expand the airport in Sangley, and is open to consider other proposals should the provincial government fail to deliver the requirements set by the agency. Transportation Secretary Arthur P. Tugade said his group may give the Cavite government until the end of the year to submit the deficiencies of its proposal. This, he said, will help the national government move forward to evaluating other offers for the development of Sangley. “There has been no movement since we last announced the missing components. There is a private proposal, but under the rules, the priority is given to a government proposal,” he said. Tugade added: “Of course, I will give them a deadline. I hope that we will have something before the end of the year—that is my target.” He noted that should the Cavite government fail
to submit the missing components of the proposal— something that he tagged as a “roadblock”—the government may now move forward with the evaluation of the unsolicited proposal of the SM Group. “It will come, when every roadblock has been removed. The roadblock is the missing portions of the proposal,” Tugade said. The proposal of the government of Cavite lacked the declaration of its financial and technical capabilities to undertake the project. Specifically, the transportation department is seeking the mode of implementation of the project. Under its proposal, the provincial government intends to develop Sangley Airport to have a total capacity of 130 million passengers per year and four runways through 2028. The P552.02billion unsolicited offer, likewise, has a provision for the construction of mass-transit systems and new roads. The other proposal—submitted by Sangley Airport Infrastructure Group Inc., a company led by the Sy family’s Belle Corp. and Solar Group’s All-Asia Resources and Reclamation Corp. (ARRC)—involves the
development of the airport to become a regional hub that can accommodate about 120 million passengers every year once fully developed. It proposed to create a new air metropolis that involves the reclamation of about 2,500 hectares of land, the rehabilitation of the Danilo Atienza Air Base, and the construction of another terminal. The group intends to reclaim 500 hectares of land north of the Sangley peninsula, which will be used for the development of airport infrastructure and a commercial establishment to complement the project. The Danilo Atienza Air Base, according to the group, will be rehabilitated to accommodate general aviation movements, thus reducing congestion at the decades-old Ninoy Aquino International Airport (Naia) during its development. The new air hub will be designed with two parallel independent runways and sufficient airside and terminal capacity to accommodate future demand for domestic, international and transfer traffic, not only for the Philippines but for all Southeast Asia. Lorenz S. Marasigan
By Elijah Felice E. Rosales @alyasjah
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MALL enterprises from the Mindoro, Marinduque, Romblon and Palawan (Mimaropa) region are eyeing to generate P50 million in sales from a trade show here in Metro Manila. Mimaropa-based micro, small and medium enterprises (MSMEs) will bring to the Philippine capital their local products in the fourth edition of the Mimaropa Naturally. Slated from October 17 to 21 at SM Megamall, the trade fair will feature agriculture products and handicrafts from the five provinces of the region. Products that will be exhibited are
processed food, furniture and home furnishings and wearable, such as fashion accessories, bags and footwear. Gifts and holiday decors will also be promoted during the event. In 2017 Mimaropa Naturally raked in P47.9 million in sales for the 131 MSMEs who participated in the trade fair. This year the over 130 small enterprises target to earn P50 million. Mimaropa Trade Regional Director Joel Valera said the trade show hopes to help MSMEs from the region to produce high quality and competitive products. He added the event will be a good opportunity for small businesses to penetrate the mainstream domestic and export markets, which, in turn, could gen-
Govt may suspend fuel excise tax hike for 2019 Continued from A1
during October to December, Go added. “Last September, the Dubai [crude] price reached $77 per barrel. If this reaches more than $80 per barrel for the next three months, the government is considering the suspension of excise tax increase come January 2019,” he said in Filipino. Oil prices are also seen by analysts to reach $100 per barrel if the wave of US sanctions targeting Iran’s oil and gas industry cuts Iranian oil supply completely. “It is being considered that the suspension of the next excise tax increase would lead to maybe about P40-billion loss to the government. Although we have this situation, the government’s primary consideration is its effect to the poor,” he added. Various groups have been calling for the suspension of oil excise taxes, amid rising inflation, which has surged to a nine-year high of 6.7 percent in September.
TRAIN law sked
UNDER the TRAIN law, which took effect at the start of this year, excise tax on diesel will be P2.50 per liter in 2018 and will increase to P4.50 per liter in 2019, and finally by P6 per liter in 2020. Excise tax on gasoline was increased to P7 per liter this year, from P4.35 per liter previously. For 2019 and 2020, the rates will be at P9 per liter and P10 per liter, respectively. Finance Undersecretary Karl Kendrick T. Chua said suspending the increase in fuel excise taxes may lead to the loss of P40 billion in revenues. But he said value-add-
ed tax (VAT) collections from fuel products may help offset the losses. “For sure, the excise [suspension] is minus P40 billion. But because the prices of oil are higher, the VAT, which is based on price, will also be higher. I just cannot say now if it will be enough to offset, it might offset part of it,” Chua said.
Senators’ letter, first rollback
MAJORITY senators, in an October 9 letter to President Duterte, asked Malacañang to back a Senate-House consensus to “suspend any further increase in excise taxes” on diesel, gasoline and other petroleum products for 2019 and 2020 as mandated in the TRAIN law. Senate President Vicente C. Sotto III and Senate President Pro Tempore Ralph G. Recto and Majority Leader Juan Miguel F. Zubiri led 14 other senators who pointed out that in over 41 weeks since January 18, pump prices for gasoline and diesel have increased 29 times, causing a total fuel-price increase of P12.15 for diesel and P11.40 per liter for gasoline. Asked about whether the Palace has made a decision to suspend the 2019 and 2010 higher excise tax schedule in TRAIN, Sotto replied, “When the President read our letter, there was suddenly a decision to consider it.” For her part, Sen. Grace Poe said in a statement late Sunday, “The time to suspend the excise tax increase is now or sooner; not in January 2019. That is per se and allowed as a safeguard in the TRAIN law under Republic Act 10963. The senators’ call comes as oil companies announced a price reduction in petroleum products after nine consecutive weeks of oil price increases. Phoenix Petroleum and
Petro Gazz implemented an P0.80per-liter price cut in gasoline and P0.60 per liter in diesel over the weekend. Petron Corp., Pilipinas Shell, Total Philippines, PTT Philippines, Eastern Petroleum and Seaoil Philippines announced a price cut of P0.85 per liter for gasoline, P0.65 per liter for diesel and P0.20 per liter for kerosene. Except for Seaoil, which implemented its price rollback last Saturday, the rest of the oil companies adjusted their prices at 6 a.m., Monday. In their letter to Duterte, the 17 senators said: “While your administration has already initiated steps to alleviate the plight of countrymen, we earnestly believe that such suspension of oil excise tax increases would greatly help lift the heavy burden they carry because of high basic commodity prices.” They added, “At this time, we reiterate our support for the administration’s reforms, as well as its efforts to improve the lives of Filipinos.” The price rollback comes after diesel prices went up by a cumulative P5.85 per liter, gasoline by P5.05 per liter and kerosene by P4.65 per liter from August 14 to October 9. The Philippines is a net importer of oil products. This means that the country’s fuel supply is generally sourced from abroad, making the country vulnerable to changes in international oil-price markets. Latest data from the Department of Energy (DOE) showed that the country has been importing 94 percent of its oil requirements, with the total import bill jumping to $9.89 billion in 2017, a 31.2-percent increase from the $7.54-billion import bill in 2016.
The rise in petroleum prices over the past weeks was due to the current global situation, where international political and economic factors are at play. Also, global oil prices tend to go up in the winter months (OctoberMarch), as demand for heating is at its highest.
Conflict factor
THE US exit from the Iran nuclear deal was accompanied by its re-imposition of economic sanctions on Iran, including those related to oil. The US’s sanctions against Iran’s oil exports are to be implemented on November 4, threatening an outflow that could reach as high as 2.7 million barrels a day (mbpd). Russian President V ladimir Putin criticized the US sanctions against Iran and other producing countries as they are destabilizing the markets and pushing oil prices up, at a time when the Opec-led group had achieved the goal to balance the markets. The political and economic instability in Venezuela, which has the world’s largest proven oil reserves and is considered one of the largest oil exporters in the West, is also another factor. The International Energy Agency (IEA), meanwhile, had cited an adverse production outlook in Venezuela, Libya and Iran. “The situation in Venezuela could deteriorate even faster, strife could return to Libya and the [remaining days leading] to November 4 will reveal more decisions taken by countries and companies with respect to Iranian oil purchases,” the IEA said in a report. The DOE, for its part, said it continues to explore higher and expanded fuel discounts to public
utility vehicles, looking at nearby countries for lower-priced supply and it noted it had taken even unpopular options to ensure that consumers are protected from the impact of this global price situation. “Even before the onset of the spike in world petroleum prices, the energy family has been relentless in working out ways to help our most vulnerable sectors, such as transport groups. Public-utility vehicles are able to avail of fuel discounts through the continued expanding partnership of the DOE with various oil companies. “Likewise, we have asked the Philippine National Oil Co.-Exploration Corp., one of our attached agencies, to look into importing low-cost diesel to augment supply and offer a more affordable fuel option to our public transportation sector,” said the agency. The DOE is also part of the interagency Pantawid Pasada program being led by the Department of Transportation, where fuel subsidy cards are being distributed to qualified franchise holders of public utility jeepneys. “Together with our country’s economic management team, the DOE and your entire energy family remain unyielding in finding ways to manage the situation at hand. We will not rest from pushing vital industry reforms, including the crafting of policies that promote the exploration and development of our indigenous energy resources, the expansion of our renewable-energy capabilities, uphold the integrity of safety and resiliency standards, and bring power to unserved and underserved areas in the Philippines,” the DOE said in its statement last week. Reports from Lenie Lectura, Bernadette D. Nicolas and Butch Fernandez
erate more livelihood opportunities in the region. Valera is also hopeful that, through Mimaropa Naturally, some of the local producers from the provinces breach the export bracket. “We are proud to announce that the DTI [Department of Trade and Industry] Mimaropa region, in coordination with other concerned government agencies and local and provincial units in the region, will open another year of Mimaropa Naturally to provide an avenue to Mimaropa MSMEs to better market their products to buyers in Metro Manila and establish constitutional buyers. Hopefully some of the MSMEs reach the export market,” Valera said.
DTI pitches prior naming of red tape body chief Continued from A1
IRR cannot be issued without the Arta or the director general at the ver y least. Hence, we have emphasized the need to appoint t he d irector genera l before October 22,” he added. The deadline for the IRR of the EODB law, a landmark measure aimed at cutting red tape in government transactions, is set on October 22. Businessmen and policy-makers alike have been insisting that the DTI-CB issue the IRR the soonest, but Barba said his unit cannot do so, as the Arta director general has to be named first. He revealed the DTI-CB then will not release the IRR by October 22 and will instead submit the document to the Office of the President (OP). “We will submit [it] to the OP, but will not release since it is the Arta which should promulgate the IRR. The DTI-CB is only a temporary secretariat which is not authorized to issue the IRR,” Barba explained. The EODB law is seen to boost the country’s ranking in global competitiveness surveys. It will help entice more investors to do business here, as it will cut down procedures in transacting with the government. The EODB law states the simple transactions have to be finished within three working days; complex transactions seven working days; and highly technical transactions 20 working days. It also trimmed the number of signatories for several documents. Elijah Felice E. Rosales
The Nation BusinessMirror
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Editor: Vittorio V. Vitug • Monday, October 15, 2018 A3
House panel keen on tackling draft Charter
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By Cai U. Ordinario
@cuo_bm
HE House Committee on Constitutional Amendments remains keen on passing the draft federal constitution under the Duterte administration in order to address the shortcomings of the 21-year-old Freedom Constitution.
In a radio interview, House Committee on Constitutional Amend-
ments Chairman Vicente S. E. Veloso said if the draft is not completed
under the President’s term, it may take “many years again” before the Constitution is revised. This, despite the return of the draft federal constitution to the committee level. Veloso assured there will only be one meeting to change the line of succession to the Vice President instead of the Senate President. “Ang punto ko, tapusin namin ito as fast as possible kasi ang daming pwedeng mangyari [My point is, we should finish this as soon as possible because many things could happen],” Veloso said. “And besides, ’pag wala na itong si Duterte [when Duterte is gone], it will take us many, many years
again to tinker with our existing Constitution and to come up with necessary amendments or revisions kasi [because] this is 21 years old na pinapasan natin na krus [this is a 21-year-old cross that we are bearing],” he added. Veloso said the committee will try to meet during Congress’s break. This means when Congress sessions resume, the draft will be discussed in the plenary. He said his committee will tackle the draft constitution from the opening preamble of the proposed revised constitution until the end of their proposed revised constitution. The proposed revised constitution from the committee, Veloso said,
was drawn from the Gonzales-De Vera draft and the proposal from the Constitutional Commission (Concom) led by former Chief Justice Reynato Puno. “What we submitted as committee report for discussion, deliberations on the floor or the plenary is a raw draft. Hindi pa naman ito talaga ’yung sinasabi ko na [this is] not cast in stone,” Veloso said. In September Veloso said passing the draft federal constitution will only take less than two months if it were left to the House of Representatives (HOR) to decide. Veloso noted the Senate does not seem interested in the draft. Veloso added that part of the
reason it will not be an uphill climb for the approval of the proposed constitution is that around 100 congressmen already supported it, based on their informal discussions. He said the committee can already start discussing the “Puno draft.” Veloso said based on Sen. Aquilino Martin L. Pimentel III, the HOR can convene to create the law and the Senate can do its part separately. Any disagreements can be resolved in a bicameral committee. Veloso said certain congressmen are already listing down the names of the senators who they will campaign against in the May 2019 elections.
A4 Monday, October 15, 2018 • Editor: Vittorio V. Vitug
Economy BusinessMirror
www.businessmirror.com.ph
Car buyers told: Get parking space first W
By Butch Fernandez
@butchfBM
ANNA buy a car? Get parking space first.
Senators are looking to pass a law requiring car buyers in Metro Manila to first get a parking space in a bid to decongest worsening traffic gridlocks in the metropolis. “The concept here really is responsibility when you buy vehicles,” Sen. Sherwin T. Gatchalian said over the weekend, adding: “We are now putting the responsibility on the car owners. If you buy cars, you have to make sure that you have a parking space for your own vehicle.” Under Senate Bill (SB) 201, to be known as Proof of Parking Space Act, car buyers and businesses based in Metro Manila will only be allowed to acquire vehicles after signing a sworn statement (notarized affidavit) affirming purchase or lease of parking space. “I think this is quite relevant at this time because, if you try to pass the side streets to avoid traffic in major thoroughfares, there is a greater chance that you’ll get stuck in traffic due to the cars parked along the
narrow streets,” he noted. To drive home the point, the senator cited Land Transportation Office (LTO) records indicating the registered motor vehicles from 2015 to 2017 ballooned to 10,410,814. “There are an estimated new 1,000 registrants each day, 600 of which are newly purchased vehicles,” he added. Apart from the LTO, Gatchalian’s bill directs the Metropolitan Manila Development Authority and local government units (LGUs) to “conduct frequent ocular inspections of major and minor thoroughfares” across the National Capital Region to “remove illegally parked vehicles and to punish vehicle owners who refuse to comply with the law.” Gatchalian reported that senators are now “ironing out details” of the awaited remedial legislation for plenary consideration soon after Congress reconvenes regular sessions on November 12. He said the Committee on Trade,
EU to partner with PHL, other nations in managing use, production of plastic
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H E Eu ro p e a n Un ion ( EU ) w i l l launch a regional program in 2019 to strengthen cooperation with the Philippines, and select countries in East and Southeast Asia toward “sustainable” consumption and production of plastic, which had been contributing to problems posed by climate change. The initiative, called “Plastic Asia Regional Programme,” with a €10-million budget, is a multi-donor action jointly cofinanced by the EU and Germany. It will be implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit and Expertise France. The action will support bilateral and regional policy dialogues in targeted countries, namely, China, the Philippines, Indonesia, Vietnam, Thailand, Japan and Singapore. The EU Delegation in Manila on Sunday told the Philippine News Agency that the action is expected to be implemented in the first quarter of 2019. The initiative was introduced at a forum, entitled “Plastic, Climate Change and Me,” at the Asian Institute of Management on Friday, where EU Ambassador to the Philippines Franz Jessen highlighted Manila’s problem on proliferation of plastic waste. According to the envoy, the problem is very widespread to the extent that “it is highly likely that we eat fish without realizing we also ingest a certain amount of microscopic plastic particles.” But more than its waste leakage into the environment, plastic aggravates climate change since plastic manufacturing is, in fact, a by-product of fossil-fuels processes. “Currently, 8 percent of global oil production is linked to the manufacturing of plastic. This is already a significant percentage. But at the current rates and with oil prices continuing to remain low, it is estimated that manufacturing of plastic may account to about 20 percent of global oil production in 2050,” the envoy said. “These are just two examples of how negative impacts of climate change can be reinforced and amplified by external agents, products and processes,” he added. At present, the EU Delegation to the Philippines is closely working with the government on the development of a national strategy for improving plastic waste management and reducing leakages of plastic waste in the marine environment In Europe, the EU has already adopted a Circular Economy Action Plan to ensure that all plastic packaging in the European market would be recyclable by 2030, the consumption of single-use plastics significantly reduced, and the intentional use of micro plastics restricted. PNA
THIS file photo shows cars that are parked in a parking lot in Makati City. Senators want to pass a law that would require car buyers to acquire or lease parking space prior to purchasing vehicles. NONIE REYES
Commerce and Entrepreneurship convened a technical working group to review SB 201 for early passage,
noting the proposed Proof of Parking Space Act “received full support from different civil society and gov-
ernment representatives during the committee’s recent public hearing.” Moreover, Gatchalian cited rel-
evance of the bill, adding this “will instill a culture of responsible vehicle ownership among Filipinos.” Its early enactment into law, the senator added, is also expected to boost the Duterte administration’s efforts to “solve the transportation crisis.” He added that once enacted into law, it would then be “up to LGUs to lead the charge” in implementing the remedial law to address the traffic problem. “It is better to have a national policy so that the local governments may impose that national law,” the senator said. At the same time, Gatchalian acknowledged that local governments are also quite sensitive to the comments of their own constituency. “In this proposal, we are giving them ample time to locate their own parking spaces,” said Gatchalian, even as he noted that “the present administration is in a good position to achieve real, tangible change by overhauling Metro Manila’s outdated public transportation system.” In pressing early enactment of the law, the senator stressed that “alleviating the constant struggles of the commuting public should be one of the government’s top priorities.”
Limiting cell site tower builders to 2 slammed
as contender, thereby establishing a “cleaner and more sanitized” modus operandi. Globe Telecom Inc. legal counsel Froilan Castelo said that the government should be part of the tower company to help eliminate barriers such as tedious permitting process, unreasonable taxation and diffi-
cult right-of-way (ROW) obstructions. Globe said it welcomes a third telco player and that it will act in consonance with the program of sharing facilities with other telcos. Castelo pointed out though that the telcos’ congressional franchises authorize them to construct their own infrastructure
‘Cat bond’ for disasters eyed
explained that under a Cat bond, the Philippine government will serve as sponsor, with the World Bank issuing the bond to qualified investors. Depending on the insurance coverage and its trigger, the Philippines as sponsor of the Cat bond will get paid the principal contributed by investors if a catastrophe occurs. But if there is no trigger, then investors would make a positive return on their investment in the bonds. Citi helped draw up the $1-billion catastrophe bond covering four nations of the Pacific Alliance in Latin America, namely: Chile, Colombia, Peru and Mexico. It was successfully launched earlier this year. It is the largest
single issuance of Cat bonds ever facilitated by the World Bank. The finance chief said the government can have multiple mechanisms to help cover the disaster-related risks both for the national government and local government units (LGUs). “Right now, we have a local autonomy law and quite a number of the LGUs are liquid that they can buy the insurance. What we want to do is structure a system where everybody can participate. But everybody pays their own share. The national government does. LGUs can participate if they wish but they have to pay their own share,” Dominguez said.
and should continue to do so. “Limiting and building of towers to two-player independent tower companies unfairly discriminates against the other models and is contrary to best practices,” said Castelo. He noted the Philippines needs 50,000
surged to a nine-year high of 6.7 percent in September, bringing the year-to-date average already at 5 percent.
Rice import lib
NONETHELESS, Chikiamco agreed with Diokno that inflation will likely go down next year, especially with the liberalization of rice importation. “Rice in Vietnam is about P17 to P20 a kilo. Let’s import cheap rice and feed our people,” he said, adding that the country does not have the competitive advantage when it comes to rice. “There are 2.5 million rice farmers versus 103 million rice consumers. Who will you favor? Use tariff revenue to directly assist them. Stop NFA [National Food Authority] subsidies which only goes to rice traders,” he added. Meanwhile, Jose Enrique A. Africa, executive director of IBON Foundation, said it is “most unlikely” for the economy to achieve 7-percent growth for the next 10 years if the government does not change its economic policy thrust, including correcting its “exaggerated” expectations from the BBB program. “The economy is vulnerable amid the increasingly unfavorable global economic situation and difficult times are ahead,” Africa said. “The soaring inflation since the start of the year marked our going into a period of rising interest rates and peso depreciation.
cellular towers to serve 113 million subscribers. The country has about 16,000 cellular sites. For his part, DICT Secretary Eliseo M. Rio Jr. remarked that “nothing is final yet” with regard to what Jacinto stated that “we have decided with two.” Lenie Lectura
continued from a1 On a broader scale, Dominguez said the Cat bond coverage could later be expanded to include other countries within the Association of Southeast Asian Nations so that funds could be pooled to push down the price of insurance premiums for each country-participant. During the meeting, Dominguez added that the Philippines was also open to Citi’s proposal on launching Global Depositary Notes (GDNs), in which peso-denominated debt instruments are offered to offshore investors to help diversity the country’s investor profile while enhancing the liquidity available in the domestic economy. A ccord i ng to t he f i n a nce c h ief,
Analysts doubt growth of 7% can be sustained
to $26 billion in the January-to-August period this year, a 64.7-percent increase from $15.79 billion in the same period in 2017. Local economists have earlier said that increased imports of equipment and other capital goods are expected to further widen the Philippines’s trade deficit in the coming years or even beyond 2022 because of the government’s “Build, Build, Build” (BBB) program. Under the government’s massive infrastructure program, 75 infrastructure projects are expected to be rolled out to usher in what the Duterte administration calls the “golden age of infrastructure.” For this year, Diokno has already said that the Philippines will be missing its GDP growth target of 7 to 8 percent, noting that it is highly unlikely that GDP will grow by 7.7 percent in the second half of the year to meet the lower end of the target given that the economy grew 6.3 percent in the first half. High inflation was also touted by the government as the spoiler of the country’s growth for the first half along with low agriculture output and environmental policies of the Duterte administration. However, Diokno has also said that inflationary pressures will just be transitory and will taper off toward the end of the year and be back within the government’s target of 2 to 4 percent next year. Inflation
continued from a1
continued from a1
The signs are that we will just be going further into this.” According to Africa, major sources of inflationary pressures also include the US Federal Reserve’s raising interest rates thrice this year with a few more to come—perhaps even starting as early as December, capital outflows putting a downward pressure on the peso, and the looming sanctions on Iran further pushing up oil prices which will affect the country’s trade deficit. “These are happening amid a lackluster and actually increasingly unstable global economy. Not only are trade wars brewing among the world’s economic giants but financial flows are becoming more volatile. The huge accumulated global debt stock is a huge disruptive force in capital and currency markets,” he added.
Moderate expectations
the proposal is timely, given that the Duterte administration is now pushing for tax reform that would reduce the withholding tax on interest income from 20 percent to 15 percent even for nonresident investors. GDNs would allow international institutional investors to access the Philippine domestic sovereign debt market through investments in peso-denominated debt instruments while trading in US dollar terms. Last month the DOF met with officials of Lloyd’s of London to discuss possible insurance structures that could be applied to cover the Philippines’s expanding roster of government assets and properties.
AFRICA also pointed out that the government should be more circumspect in what to expect with BBB as it is at best a short-term Keynesian demand boost with limited longterm benefits disproportionate to its costs. “The long-term gains are dubious because there are no signs that the BBB program is part of a larger national industrialization plan to diversify and upgrade the economy. Sustained and sustainable growth at levels of 7 percent or high are only possible with such industrialization,” he said. For De La Salle University Economics
Professor Maria Ella C. Oplas, however, the country can hit its growth target of 7 percent next year, especially because it is an election year. “I think that might be hit next year but on the late first quarter or second quarter,” she told the BusinessMirror. She also agreed with Diokno that 7-percent growth can be sustained in a decade on the back of the BBB program. Still, Oplas noted that it is possible that an anti-investors policy on contractualization can also make the country miss its growth target. “If they are dead serious most especially on anti-contractualization, that will badly hit the economy because it will discourage investors to come in. It will make our labor not competitive to other neighboring countries,” she added. She also does not expect inflation to reach 7 percent in December and continue to go down in January. “One, [it’s] normal that inflation goes down in January. Two, people expect higher inflation, hence, will keep lessening their spending,” she said. Liberalization of rice importation can also help curb inflation, in theory. However, she said the government must do something to help the farmers, such as incentivizing people to go to farming and bringing agriculture credit right at the doorsteps of the farmers.
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The Regions BusinessMirror
Environment police present at Boracay reopening dry run
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OME 30 environment law enforcers will be deployed by the government on Boracay Island to ensure that the tourism guidelines crafted by the Boracay Inter-Agency Task Force (BIATF) will be strictly observed. This, as Environment Secretary and concurrent BIATF Chief Roy A. Cimatu vowed to closely monitor compliance and effectiveness of the guidelines laid down to protect the resort island from unsustainable tourism practices during its dry run from October 15 to 25. Boracay will be opened on October 26 after six months of rehabilitation work to address various environmental problems. According to Cimatu, the 11-day dry run would allow the government to test all systems put in place during the six months Boracay underwent much-needed rest and cleanup. He appealed for cooperation and understanding from all stakeholders and local tourists, who will be among the firsts to experience a reinvigorated Boracay. “We will be monitoring a lot of things, from managing the entrance, exit, and stay of the tourists, to enforcing rule of law on establishments that have been found to be non-compliant to laws and regulations,” Cimatu said in a statement. The government would strictly enforce the “no compliance, no operation” policy for establishments not only during the dry run but beyond Boracay’s formal reopening on October 26, Cimatu said. “We will not hesitate to close hotels and other establishments that would operate without clearance from the BIATF,” Cimatu said. He also warned tourists who are planning to visit the island to make sure they book their accommodations with compliant hotels and similar establishments, a complete list of which
will be released by the Department of Tourism. At least 30 environmental enforcers will be deployed to check on Boracay’s water quality, solid-waste management, drainage and sewage systems, and occupation on forest areas and wetlands. The Armed Forces of the Philippines and the Philippine National Police have committed to help maintain peace and order on the island during the dry run leading to the October 26 reopening. “We are trying to correct the mistakes of the past, and we have succeeded in finding a solution to cleaning the environment. We do not want to backslide on what we have started,” Cimatu said. The BIATF recently approved a set of guidelines to ensure Boracay’s environment will be sustained and protected from the expected massive influx of local and foreign tourists. The guidelines include a regulation on tourist arrivals and the number of persons allowed to stay in Boracay, in accordance with the island’s carrying capacity. A study conducted by the Ecosystems Research and Development Bureau of the Department of Environment and Natural Resources (DENR) and the University of the PhilippinesLos Baños revealed the island’s daily carrying capacity is 54,945 to 19,215 tourists and 35,730 nontourists, which refer to residents, migrants and stay-in workers. During the dry run, the BIATF will be implementing a traffic scheme amid ongoing roadworks on the island. This includes ferrying visitors directly to the Tambisaan port or pontoons set up at different boat stations, and impounding private and public vehicles operating without a permit. Jonathan l. Mayuga
Editor: Dennis D. Estopace • Monday, October 15, 2018 A5
Govt probes irregularities in Boracay workers’ fund T
DOTr to grant original proponent status on Davao, Kalibo airport bids
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By Samuel P. Medenilla
@sam_medenilla
HE Department of Labor and Employment (DOLE) said authorities are now investigating possible cases of fraud among the thousands of applications it received for its Boracay Emergency Employment ProgramAdjustment Measures Program (BEEP-AMP). DOLE’s Bureau of Local Employment (BLE) Director Dominique R. Tutay told the BusinessMirror they launched the probe after the number of applicants for the program suddenly doubled last month. “The matter has been brought to the attention of the NBI [National Bureau of Investigation] and the PNP [Philippine National Police], who are conducting their own investigation,” Tutay said. To recall, the DOLE allocated P448 million for the BEEP-AMP to provide cash aid to the 17,735 profiled workers from the formal sector, who were affected by the temporary closure of Boracay Island on April 26. The government closed the island resort to give way for its rehabilitation. On August 23, 2017, the DOLE Region 6 reported it still has enough fund to accommodate 4,000 of the said workers. As of Friday, the available slots were reduced to 616 since 17,119 of the profiled workers were already given cash aid by the DOLE through the BEEP-AMP.
However, the DOLE Region 6 said it still got 14,234 additional applications for the program last month. “Because of the sudden surge in applications sometime September, the region [DOLE Region 6] is thoroughly evaluating the applications as there are reports of fraud already or misrepresentations,” Tutay said. As an added precautionary measure, the DOLE issued an advisory halting the acceptance of applications from workers, “who are not included in the database of profiled affected formal sector workers,” for the BEEP-AMP. “As the number of BEEP-AMP applications exceeded the fund allocation for the program, priority shall be given to those who were profiled and verified,” Labor Secretary Silvestre H. Bello III said in Department Advisory 3, Series of 2018. Boracay’s reopening is scheduled for October 26 to a limited number of people to prevent further degradation of the tourist hot spot.
HE Department of Transportation (DOTr) is set to grant original proponent status (OPS) on the proposals to expand, operate and manage the Davao and Kalibo International Airports. This, as a resolution for the granting of the OPS to unsolicited proposals for both airports is now waiting for the signature of the board of the Civil Aviation Authority of the Philippines (Caap). “Please note that both the DOTr and Caap have no technical objections on the unsolicited proposals. They were both presented to the Caap Board for the grant of the original proponent status [OPS]. It is the Caap Board that ultimately decides whether a proponent is given an OPS,” Transportation Communications Director Goddes Hope Libiran said in a statement last Thursday. “We’re still waiting for one more signature from the Caap Board for the grant of the OPS,” she said. “Anytime we secure the one signature, we will be ready to grant the OPS.” Chelsea Logistics Holdings Corp. has submitted an unsolicited proposal worth P49 billion for the Davao airport, while Mega7 Construction Corp. has a P12-billion unsolicited proposal for the Kalibo airport—both having a 30-year concession period. Once the proposals were granted OPS by the DOTr, these will be endorsed to the National Economic and Development Authority-Investment Coordination Committee. PNA
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Monday, October 15, 2018 • Editor: Angel R. Calso
The World BusinessMirror
Prospect of Trump-Xi meeting seen easing trade war tensions G
www.businessmirror.com.ph
Global finance chiefs urge trade war solution as Bali talks wrap
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EIJING—With China and the United States opening the door to a meeting next month between Presidents Xi Jinping and Donald J. Trump, hopes are rising for a potential easing of tensions in the trade war between the world’s two largest economies. Worries about the increased tariffs the two sides have imposed on each other’s goods contributed to a dizzying bout of volatility in financial markets this week. The higher tariffs raise costs for companies in both countries, and economists say that if they remain in place indefinitely, they could depress economic growth. A Xi-Trump meeting, if it happens, would take place during a summit of leaders of the Group of 20 (G-20) biggest global economies in Argentina in late-November. “I don’t think any decision has been made in regards to a meeting,” Treasury Secretary Steven Mnuchin told reporters on Saturday in Bali, Indonesia, where he’s attending global finance meetings. Still, Larry Kudlow, Trump’s top economic adviser, said in Washington on Friday that preparations for the talks were under way. “It looks like there will be a meeting in Buenos Aires at the G-20,” Kudlow said in an interview with CNBC. “We are looking at it. The Chinese are looking at it. Preparations are being made. I can’t say 100 percent certainty, but there is no question everybody is looking at it.” Kudlow said that so far, the administration viewed China’s negotiating offers as “rather unsatisfactory” but that “maybe talks between the two heads of state will bear fruit.” Asked if China would need to make specific concessions for such a meeting to take place, Mnuchin said, “To the extent that we can make progress toward a meeting
I would encourage that and that’s something we’re having discussions about, but for the moment there’s no preconditions. The president will decide on that.” The trade feud has been fueled by US accusations that China engages in cyber-theft and coerces foreign companies into handing over technology in return for access to the Chinese market, as well as by Trump’s anger over China’s trade surplus with the US. It is far from clear that the US might be preparing to consider lifting penalty tariffs on about $250 billion of Chinese products. Mnuchin repeated the Trump administration’s determination to achieve a more balanced trading relationship that does not require foreign companies to form joint ventures to transfer technology to gain market access. Lu Kang, a spokesman for China’s Foreign Ministry, offered no specifics on Friday but said, “I have also seen the relevant reports.” The Wall Street Journal and the Washington Post have cited officials as saying Trump has decided to proceed with a meeting with Xi. Global indexes bounced back sharply Friday after their recent plunges, on word of the possible presidential meeting, along with strong Chinese export data. Japan’s Nikkei 225 index gained 0.5 percent to 22,694.66 after a nearly 4-percent loss on Thursday. Hong Kong’s Hang Seng surged 2.1 percent to 25,801.49. The Shanghai Composite index advanced 0.9 percent to 2,606.91. Shares recov-
IN this November 9, 2017, file photo, US President Donald J. Trump (right), chats with Chinese President Xi Jinping during a welcome ceremony at the Great Hall of the People in Beijing. China said on Friday it is in contact with the United States, amid reports of a planned meeting between Xi and Trump next month following a dive in the US stock market blamed partly on a growing trade war between the world’s two largest economies. AP PHOTO/ANDY WONG
ered in Taiwan and rose throughout Southeast Asia. On Wall Street, the Dow Jones Industrial Average jumped 305 points, or 1.2 percent, in late-morning trading, and the Nasdaq composite surged 138 points, or 1.9 percent. Later, both stock indexes gave up much of their gains. Friday’s volatility followed a swoon over the previous two days that erased 1,300 points from the Dow and dragged the S&P 500 down more than 5 percent. Reports that Mnuchin has advised against labeling China a currency manipulator—a status that could trigger penalties—were also seen as easing tensions. The Chinese currency has been falling in value against the dollar in recent months, raising concerns that Beijing is devaluing its currency to make Chinese goods more competitive against US products. In his comments in Bali, Mnuchin did not say what the forthcoming Treasury report, set to come out next week, will conclude about China’s currency practices. In the past, Treasury has placed China on a watchlist but found that Beijing did not meet the threshold to be labeled a
currency manipulator. Mnuchin met on Thursday with Yi Gang, head of China’s central bank. “I expressed my concerns about the weakness of the currency,” Mnuchin said. He said that in the discussions he had with the Chinese, they had made clear that they didn’t see a further weakening of the Chinese yuan as being in their interests. Concerns have been raised that China, the largest foreign holder of US Treasurys, might start dumping its holdings as a way to pressure the United States in the trade dispute. But Mnuchin said this possibility didn’t concern him because it would be contrary to Beijing’s economic interests to start dumping its Treasury holdings. “That would be very costly for them,” Mnuchin said. China’s surplus with the United States widened to a record $34.1 billion in September as exports to the American market rose 13 percent from a year earlier to $46.7 billion, down slightly from August’s 13.4-percent growth. Imports of American goods increased 9 percent to $12.6 billion, down from August’s 11.1-percent growth. AP
China preparing for all risks in currency policy, says PBOC
C LAGARDE BLOOMBERG NEWS
LAGARDE SEES MARKET VOLATILITY AHEAD AMID GLOBAL TRADE RISKS
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OLICY-MAKERS should prepare for more market volatility amid further financial tightening and “choppy” waters in the global economy stemming from trade tensions, said Christine Lagarde, managing director of the International Monetary Fund (IMF). The fund’s advice to central bankers and finance chiefs is to continue building monetary and fiscal buffers for the risks ahead, she said in an interview on Sunday with Bloomberg Television’s Haslinda Amin, at the conclusion of the IMF and World Bank meetings in Bali, Indonesia. “Now is not the time to say, OK, fine, let’s just relax and do a bit of fiscal tolerance here and a slowing of reforms,” Lagarde said. On the trade disputes, she said “our message was very clear: de-escalate the tensions, and open and reform the dialogue.” The Bali meetings have been dominated by talk of the twin risks of trade and monetary policy tightening, coming in a week in which stock markets from the US to Asia were roiled as investors sought cover. Officials including Bank of Japan Governor Haruhiko Kuroda urged the US and China to restart talks around trade, while policy-makers from emerging markets highlighted threats from Federal Reserve-led interest rate hikes. As for officials’ ability to deal with the next financial crisis, Lagarde said there is “still, now, limited policy space” but that the banking system is “much stronger” with better supervision and regulations, less nonperforming loans and “still sensible” leverage. Flexible exchange rates are playing a “very good role as a shock absorber,” she said. “There are risks out there in the system, of course, and we need to be mindful of that, and we need to make sure the buffers are rebuilt,” Lagarde said. “It’s time to buckle up.” Bloomberg News
HINA’S central bank is considering a range of risks in its currency policy, including a worst-case scenario, Governor Yi Gang said. As the yuan inches closer to the psychologically important level of 7 per dollar amid rising trade tensions with the US, the People’s Bank of China (PBOC) governor told Bloomberg in an exclusive interview that the Chinese currency is at a “reasonable and equilibrium level.” “The yuan’s volatility is normal,” Yi said on Sunday in Bali, Indonesia, on the sidelines of the International Monetary Fund (IMF) and World Bank’s meetings. “The currency has a flexible exchange rate mechanism, which now shows two-way fluctuation.” “For the full year, the yuan will stay in a reasonable range against the backdrop of an appreciating dollar,” he said. Yi’s comments come days before US Treasury Secretary Steven Mnuchin is set to release a report in which he could label China as a currency manipulator and as a trade dispute between the world’s two biggest economies shows no signs of abating. The tariff war is weighing on investor sentiment, prompting a sell-off in financial markets last week, and undermining the outlook for global growth, which the IMF downgraded for the first time in two years. Yi said he had “very good talks” with Mnuchin in Bali, without elaborating.
‘Bottom line’
IN a key policy report in August, the PBOC referred to a “bottom-line mindset” in its currency policy. Yi explained on Sunday that this means “we have to think thoroughly about all sorts of risks, prepare for the rainy days and for the worst scenario.” For now, the exchange rate is “relatively stable” and the yuan “is strong among developed countries and developing countries,” he said.
The strong dollar and interest-rate hikes by the US Federal Reserve have made conditions “a little tight” and “capital has been flowing out of some developing nations,” he said. The yuan has tumbled more than 9 percent against the dollar in the past six months, making it one of Asia’s worst performers, on the back of tighter US monetary policy and a worsening domestic outlook. “China is, in fact, in a very good situation, with the overall volatility not big,” he said, adding the fluctuation is “basically similar” to the currencies in developed nations and much smaller than those in developing economies. “Economic growth, employment, inflation and the two-way fluctuation of the yuan are within reasonable range,” he said.
Neutral policy
ON monetary policy, Yi reiterated that the stance is “prudent and neutral.” “China’s monetary policy needs to consider international factors, but our principle is to prioritize domestic conditions when plotting monetary policy,” he said. Yi took over as governor in March as the central bank shifted to a more growth-focused path, with four reductions in the reserve ratio this year and additional measures to funnel credit to businesses. At the IMF annual meetings in Bali, Yi has leveraged his long-standing links to global economic leaders and fluent English skills to resume constructive talks with the US and build allies with nations on the global trade supply chain. “Over the last few days, I’ve talked to more than a dozen countries,” Yi said on an international banking seminar panel hosted by the Group of 30. “They all felt the negative impact on their economy” from the trade war, he said. Bloomberg News
LOBAL finance chiefs used the closing sessions of talks in the tropical resort of Bali to hammer home the message that simmering trade tensions are already denting global growth and need to be resolved. Bank of Japan Governor Haruhiko Kuroda said it’s essential to have dialogue on trade; Brazil’s central bank President Ilan Goldfajn flagged the tensions as one of the biggest threats to emerging economies; Bank for International Settlements General Manager Agustin Carstens said there’s a risk the global economy goes backwards due to rising protectionism. While People’s Bank of China Governor Yi Gang called for a constructive solution to the dispute— he added that China is preparing for the worst. “You see a lot of people in China now preparing for this trade tension to be a prolonged situation,” Yi said during a panel discussion hosted by the Group of 30, a consultative group on international economics. “The downside risks from trade tensions are significant.”
Don’t blink
THE Chinese official received support from the floor when Mexico’s former President Ernesto Zedillo took an opportunity during a question-and-answer session to counsel Yi to follow the example set by Mexico and Canada during their Nafta negotiations with the US. “Mexico and Canada made clear that they’d rather not have Nafta than having the deal that the US wanted. In the end, Mexico and Canada got their way in every single issue that had been drawn as a red line,’’ Zedillo said. “So I hope China doesn’t blink.” IMF Managing Director Christine Lagarde doubled down on the messaging. “Our message was very clear: deescalate the tensions,” she told Bloomberg Television in an interview.
The Sunday blitz came as the IMF and World Bank’s annual meetings wound up. Warnings over the tensions were put in the starkest terms on Friday by Indonesia President Jokowi Widodo, who channeled the hit TV Series Game of Thrones to say “ winter is coming” for the world economy if there’s no breakthrough. The IMF’s main policy-advisory panel warned on Saturday that the global recovery is increasingly uneven and risks are being skewed to the downside. While the world expansion remains strong, the outlook is being clouded by “heightened trade tensions and ongoing geopolitical concerns, with tighter financial conditions particularly affecting many emerging market and developing countries,” said the International Monetary and Financial Committee, a 24-member panel that advises the fund on policy issues. Policy-makers also warned on the impact of rising interest rates and market volatility. Officials from emerging economies said the Federal Reserve’s ongoing push to raise interest rates was causing pain. Indonesia’s central bank Governor Perry Warjiyo, faced with a tumbling currency amid the rout in emerging markets, has called for global monetary policy to be better synchronized and a multilateral response to protectionist headwinds. Officials in Colombia and Mexico also warned of strains during the week’s meetings. Still, Brazil ’s Goldfajn said emerging markets “should not complain about normalization” because the gradual moves will help prevent the need for sudden changes later on. As officials left Bali, there was little prospect of any resolution to the US-China trade dispute in sight. “We are moving from synchronized growth to economic divergence,” said Bank of France Governor Francois Villeroy de Galhau. Bloomberg News
UN report: Banned Somali charcoal exports pass through Iran
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NITED NATIONS—Banned charcoal exports from Somalia are thriving, generating millions of dollars a year for al-Qaida-linked al-Shabab extremists—and often passing through Iran to have their origins obscured, according to UN sanctions monitors. Six years after the UN Security Council prohibited exports of prized Somali charcoal to try to choke off a money stream to al-Shabab, an estimated 3 million bags of the commodity are making their way out of the Horn of Africa country each year, the monitors say in excerpts of a yet-unpublished report seen by The Associated Press. The main destinations are ports in Iran, where the charcoal—already falsely labeled as coming from Comoros, Ghana or Ivory Coast— is transferred from blue-green bags into white bags labeled “product of Iran,” the report says. The bags are then loaded on Iranian-flagged ships and sent to Dubai, United Arab Emirates, with certificates claiming Iran as the charcoal’s country of origin. Iran “has been a weak link in implementation” of the charcoal ban, the monitors said, adding that Tehran largely didn’t cooperate with their investigation. The spokesman for Iran’s mission to the UN, Alireza Miryousefi, told the AP that “Iran fully implements the Security Council-imposed sanctions on Somalia, and accordingly precautionary measures have been taken to prevent their violations. Iran will continue its constructive cooperation with the relevant UN bodies in this regard.” There was no immediate response to inquiries made with the UAE’s UN mission. The monitors credited the UAE with seizing some Somali charcoal but said the Persian Gulf country didn’t “substantively engage” with their questions about the shipments allegedly made through Iran. There was no immediate response from Somali officials. Made from acacia trees, charcoal from Somalia is cherished in Gulf nations for the sweet aroma it lends to grilled meats and to tobacco
burned in waterpipes. It’s also highly valued by the Somalia-based al-Shabab, which effectively taxes the charcoal at checkpoints, according to the UN monitors tasked with assessing compliance with sanctions on Somalia and Eritrea. The monitors say the checkpoint payments yield at least $7.5 million a year for al-Shabab, which a year ago carried out the deadliest terror attack in sub-Saharan Africa’s history. The October 2017 truck bombing killed at least 512 people in Somalia’s capital, Mogadishu. At a UN-sponsored summit in May on the illicit charcoal exports, Somali officials asked for international cooperation to stop them, saying they fuel insecurity by channeling money to extremists and worsen environmental degradation as trees are cut down in a country already vulnerable to drought, flood and famine. “We need cooperation to implement the UN Security Council [sanctions] resolution and ensure the environmental, economic and human losses that happen because of illegal charcoal trade are curbed,” Deputy Prime Minister Mahdi Mohamed Guled told the gathering. The excerpts of the monitors’ report seen by the AP don’t specify what individuals or groups may be involved in the illicit charcoal trade, aside from al-Shabab’s de facto tax collectors. The group controls parts of southern and central Somalia and continues to target high-profile areas of the capital with suicide bombings. The report says some of the fake origin certificates for the exported charcoal are outright forgeries, made without any official involvement from the relevant nations. But others, such as the Iran certificates, are “evidently issued through official channels,” the monitors said. The monitors said other countries such as Ghana and Ivory Coast “have allowed charcoal traffickers to exploit weaknesses” in their systems for issuing such certificates and “bear some responsibility” for the patchy enforcement of sanctions. AP
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Banking&Finance BusinessMirror
Solon blames local banks for weak farm production
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By Cai U. Ordinario
@cuo_bm
UE to their failure to provide loans for farmers, a congressman from Bicol said local banks nationwide were also to blame for the poor performance of the agriculture sector. In a statement, Representative of the Second District of Camarines Sur Luis Raymond F. Villafuerte Jr. said he hoped that with the signing into law of the Personal Property Security Act, banks would open their credit facilities to farmers and other small rural entrepreneurs. Under the newly signed law, equipment, such as vehicles and machinery, as well as inventory of agricultural products are now acceptable as collateral for loans. “It is unconscionable for our banking sector to continue raking in profits hand over fist while not helping reverse slow farm productivity, which impedes GDP growth and thereby prevents the government from fully realizing President Duterte’s goal of
supercharging regional growth and countryside development on his watch,” Villafuerte said. Villafuerte said data from the Bangko Sentral ng Pilipinas (BSP) showed big banks failed to comply with the required level of lending to the agriculture sector in June. Republic Act (RA) 10000, or the Agri-Agra Reform Credit Act, mandates banks to allot at least 10 percent of their respective total loanable funds to agrarian-reform beneficiaries and 15 percent to farmers and fishermen. According to the BSP, universal, commercial and thrift banks only extended P629.98 billion in loans to the agriculture sector as of end-June, or just 54.7 percent of the P1.151
trillion they should have lent out to beneficiaries during that period. Big banks posted the lowest compliance rate, having set aside 0.78 percent of loanable funds or P33.361 billion, which is only a small fraction of the P427.094 billion they should have lent to the farm sector. Thrift banks are only extending borrowings of P3.33 billion for agrarian reform, well below the P25.962billion standard. Only rural and cooperative banks were compliant, surpassing the floor rate and allotting over 11 percent of their available funds. This amounted to P8.361 billion, well above the P7.477-billion minimum prescribed under the law. Rather than lending to the farm sector, Villafuerte said banks preferred to pay penalties for their noncompliance to the Agri-Agra law. Socioeconomic Planning Secretary Ernesto M. Pernia earlier said the country needs “to boost financial services to help our small and medium enterprises.” “More important, such services will establish an inclusive financial sector,” he added. Pernia was also quoted in a state-
ment as saying that among other government initiatives, RA 11057, or the Personal Property Security Act, strengthens the legal framework for the use of personal property as collateral, and establishes a modern, centralized online collateral registry. RA 11057 was signed into law on August 17. He said this will make financing more accessible to Filipino SMEs, including export-oriented firms. Further, Pernia said the government is increasing credit guarantees from P10 billion to P50 billion for SME exporters through the Philippine Export-Import Credit Agency (PhilExim), an attached agency of the Department of Finance. The PhilExim provides guara ntees to facilitate foreign loans of exportoriented industries, public utilities and those registered with t he B oa rd of Investments.
August data shows govt borrowed more overseas
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ATA from the Bureau of the Treasury (BTr) showed that the government borrowed more overseas in August at P134.049 billion, 118.6 percent higher than the P61.309-billion gross borrowings of the national government (NG) in the same month last year. Gross borrowings from offshore financial institutions for August amounted to P75.853 billion while domestic borrowings reached P58.196 billion. Overseas borrowing was 432.5 percent higher than the P14.244 billion the NG borrowed in the same month last year. Local borrowings in August was also 25.1 percent higher; local borrowings only hit P47.065 billion in the same month last year.
The government’s financing measures for the month of August reached P134.049 billion, pushing the total gross borrowings from January to August this year to P639.305 billion. The eight-month total also posted an increase of 9.9 percent compared to the recorded P581.278 billion in the same period last year. Under external borrowings for the month, Samurai bonds took the biggest chunk with P74.040 billion while projects loans amounted to P1.813 billion. Gross borrowings made by the government from local financial institutions for the month came in the form of fixed-rate Treasury bonds with P30 billion and Treasury bills with P28.196 billion.
From January to August, the NG’s external borrowings has reached P254.748 billion, increasing by 64.7 percent from the P154.634 billion made in 2017, while domestic borrowings amounted to P384.557 billion, contracting by 9.8 percent compared to last year’s P426.644 billion. In July the Development Budget Coordination Committee (DBCC) said this year’s goal of sourcing 65 percent of loans from the domestic market and 35 percent from external sources will be modified so that the government will now be targeting the proportion of domestic borrowing to increase to 75 percent, which will reduce the percentage of external financing in the mix to 25 percent in 2019. Rea Cu
Perspectives
Customer experience is driving change in the payments sector
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HE global payments industry is rapidly transforming, thanks to bold new technologies and changing customer needs and wants. Customer experience is at the heart of the payments evolution as all companies look for ways to make transacting for their products and services more seamless. Changes in the payments sector, including real-time payments and security-enhancing data, are being driven largely by technology-savvy consumers and future-forward businesses demanding a full digital experience in their daily transactions.
market share. But banks and their fintech competitors aren’t the only companies competing through customer experience in the payments sector. A growing number of nontraditional financial players, such as PayPal and Google, are seeking to own the customer relationship through their own payment platforms. This competition, alongside fintechs, could further disintermediate the banks through their focus on capturing customer loyalty with targeted improvements to specific consumer business transactions.
Disrupting the traditional transaction
TO better compete with new industry entrants, traditional banks need to capitalize immediately on new money movement capabilities and offer multiple payment methods to provide the best customer experience possible. Some banks are getting the message, with the help of regulators. A growing number of jurisdictions are accelerating progress around real-time payments (PDF 859 KB), enabling the rapid transfer of money online or on a mobile device. In fact, about half of the global population today has access to some form of real-time payments for reasons varying from economic stability to consumer preference. Increasingly though, it is the data that travels with the payment that is emerging as the true catalyst for enhanced transaction experiences. Veterans in the real-time payments space, including the UK and Switzerland, are moving quickly to add new functionalities to reach today’s tablestakes capabilities, such as ISO 20022 adoption for its data carriage. Others—relative new-
THE payments industry is getting more crowded as new technology players enter the market seeking to fill the customer experience gaps left behind by larger institutions like the traditional banks. Examples of this include the “invisible“ payments of ride-hailing apps and connected digital assistants integrated into mobile devices, or money-transfer capabilities build right into our favorite texting service, that all claim to simplify a number of everyday payment transactions. Still, banks have the upper hand given the longer-term customer relationships and large volumes of customer data they’ve accumulated in their operations over several decades. Many banks are seeking to capitalize on those valuable assets by building a better customer experience for clients either in house, or by purchasing or creating partnerships with fintechs. Their goal is to create the kind of positive customer experience fintechs have become known for, while maintaining and growing their dominant
Real-time payments and open banking
comers such as the US, the EU and Australia—are aiming to add brand-new overlay services for customers that are built on the back of new, data-rich functionalities. There is also a movement towards instant multicurrency payments in some regions, with continued conversations around how best to connect the real-time payments systems around the world. While open banking as a concept has been met with varying degrees of support or skepticism around the world, it continues to gain momentum. Regardless of the stance taken with the movement, the importance of the data itself to unlocking inherent value in payment transactions is apparent. With the recent adoption of PSD2, the EU has become a global leader in open banking. Open banking remains more ad hoc in the US and bilateral agreements between banks are less common. Only a small number of banks, including Capital One and Citi, for example, have embraced open banking. Regardless of how it’s being managed, the next stage in real-time payments is here—and will continue to evolve. As KPMG stated in its latest Real-Time Payments report, “It’s not just about fast payments anymore; it’s about securing a winning place in a new, broader ecosystem.” The excerpt was taken from the publication entitled Customer experience is driving change in the payments sector. © 2018 R.G. Manabat & Co., a Philippine partnership and a member-firm of the KPMG network of independent memberfirms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the Philippines
Monday, October 15, 2018
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BSP eases rules for banks, QBs in areas affected by calamities
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HE Bangko Sentral ng Pilipinas (BSP) approved the adoption of a policy framework on the grant of regulatory relief to banks and quasi-banks (QBs) affected by calamities in the country. The Monetary Board, in its Resolution 1563, approved the adoption of the framework, in an effort to set a uniform and systematic approach in granting regulatory relief to banks and QBs affected by calamities. The BSP “recognizes that the Philippines is vulnerable to calamities, whether caused by natural or human-induced hazards, that may adversely affect certain areas/localities, and result in declaration thereof under state of calamity,” the BSP said in its recently released circular. “The damages brought about by calamities to people’s resources and
livelihood may affect the paying capacity and risk profile of the borrowers/clients of banks/QBs. This may translate to higher past due ratios and inability to meet the legal reserve requirements,” it added. The BSP usually gives regulatory relief packages to banks and nonbanks in areas affected by typhoons, earthquakes and war to assist in their recovery and allow them to resume normal operations. The latest was the temporary regulatory and rediscounting relief measures to banks and quasi-banks in areas devastated by Tropical Cyclone Josie. Based on the National Disaster Risk Reduction and Management Council situation report, most of the areas were in Regions 1,2, 3 4A, 4B, 6, the Cordillera Administrative Region and the National Capital Region. Bianca Cuaresma
Green Monday BusinessMirror
A8 Monday, October 15, 2018
www.businessmirror.com.ph • Editor: Lyn Resurreccion
IPCC special report: PHL on the right path? Gargantuan task
By Jonathan L. Mayuga @jonlmayuga
‘W
ith clear benefits to people and natural ecosystems, limiting global warming to 1.5 degrees Celsius, compared to 2ºC, could go hand in hand with ensuring a more sustainable and equitable society,” the Intergovernmental Panel on Climate Change (IPCC) said last week when it released the summary of its Special Report on Global Warming of 1.5ºC in Incheon, Korea.
The scientific report, alarming as it is, drew various reactions with some environmental groups demanding for, bold climate action, a step backward from coal addiction and a step toward clean, renewable energy solutions. The scientific report will be a key scientific input into the Katowice Climate Change Conference in Poland in December when governments review the Paris Agreement to tackle climate change. A signatory to the Paris Agreement, is the Philippines on the right path?
Warning signs
“One of the key messages that comes out very strongly from this report is that we are already seeing the consequences of 1°C of global warming through more extreme weather, rising sea levels and diminishing Arctic sea ice, among other changes,” said Panmao Zhai, cochairman of IPCC Working Group I. The report highlights a number of climate-change impacts that could be avoided by limiting global warming to 1.5ºC compared to 2ºC, or more. For instance, by 2100, the global sea-level rise would be 10 cm lower with global warming of 1.5°C compared with 2°C. The likelihood of the Arctic Ocean being free of sea ice in summer would be once per century with global warming of 1.5°C, compared with at least once per decade with 2°C. Coral reefs would decline by 70 percent to 90 percent with global warming of 1.5°C, whereas virtually all (greater than 99 percent) would be lost with 2°C. “Every extra bit of warming matters, especially since warming of 1.5ºC or higher increases the risk associated with long-lasting or irreversible changes, such as the loss of some ecosystems,” said Hans-Otto Pörtner, cochairman of IPCC Working Group II. Limiting global warming would also give people and ecosystems more room to adapt and remain below relevant risk thresholds, Pörtner added.
PHL committed to global climate goal
Sought for reaction on October 10, Undersecretary Analiza R. Teh of the Department of Environment and Natural Resources (DENR) said the Philippines is more focused on strengthening the adaptive capacity of vulnerable communities than reducing its carbon emissions, a policy which deviates from its commitment under the Paris Agreement. Under the Paris Agreement, the Philippines committed to reducing by 70 percent its carbon emission between 2020 and 2030. Teh, the DENR’s undersecretary for climate change and mining concerns, said while the Philippines ratified the Paris Agreement, the Duterte administration is cur-
rently conducting a review of the country’s commitment with the end goal of submitting a new and more realistic carbon emissionreduction target that will be enshrined in the country’s National Determined Contribution (NDC). “Our programs and activities are geared toward strengthening our adaptive capacity, to ensure the survival of our vulnerable communities,” Teh told the BusinessMirror in a telephone interview on October 9. The decision was made in light of the urgency of enhancing adaptive capacities and strengthening resiliency in response to climatechange impacts. “It is more on adaptation than mitigation,” Teh said.
Pursuing climate resiliency
Environment Secretary Roy A. Cimatu, concurrent chairman of the Cabinet Cluster on Climate Change Adaptation, Mitigation and Disaster Risk Reduction (CCAM-DRRM), meanwhile, vowed to pursue “climate resiliency and improved adaptive capacity of ecosystems and communities to fight continuing climate chaos.” T hrough a prepared statement sent to the BusinessMirror in an e-mail through Teh, the DENR chief said the CCAMDRR Cabinet Cluster is pushing for the establishment of climateand disaster-resilient communities supporting equitable and sustainable development. “For 2019, we desire the enhancement of climate- and disaster-resilient communities in the priority eight climate-vulnerable provinces, namely, Western Samar, Negros Oriental, Saranggani, Surigao del Norte, Surigao del Sur, Dinagat, Sorsogon and Masbate,” Cimatu said.
Not a major polluter
Cimatu assured, however, that while the Philippines remains to be a small emitting sector when it comes to greenhouse gases, accounting for only around 0.3 percent of global emissions, the country, nevertheless, remains committed to achieving the climate goal under the Paris Agreement of limiting the increase in global temperatures to 1.5°C. On account of the country’s vulnerability to climate-change impacts, the country’s contributions will reflect climate-change adaptation as the anchor strategy and mitigation will be pursued as a function of adaptation. “ The Cluster is specifically work ing toward four desired outcome objectives. “These outcome objectives include increasing adaptive capacities of vulnerable communities; ensuring an adequate supply of clean air, water and other natural resources; increasing resilience of critical infrastructure; and enhancing knowledge, access to information and institutional capacities,” he added.
Bleaching coral appears like a white graveyard surrounding Haribon’s marine biologist Gregorio de la Rosa as he descends into the deep. Ditto de la Rosa/Haribon Foundation
Red Constantino (right), Institute for Climate and Sustainable Cities executive director, with (from left) Dr. Toby Monsod, an economist from the University of the Philippines School of Economics; Dr. Rosa Perez, a climate scientist from National Panel of Technical Expert and member of Climate Change Commission (CCC); and Atty. Rachel Herrera, CCC commissioner, discuss last week the environmental and economic impacts of the recent special report on global warming of 1.5 degrees Celsius of the Intergovernmental Panel of Climate Change at a hotel in Makati. Louise Far/ICSC
Working toward a low-carbon economy, the DENR nevertheless vowed to reduce emissions in the wastes and industry sectors in the draft NDC. Mitigation options being considered for the draft NDC in the wastes and industry sector include the following—Waste: solid-waste management; treatment of domestic and industrial wastewater; and industry: energy efficiency/fuel switching (energy-intensive industries); energy ef f icienc y/ hydrof luorocarbon substitution in refrigeration and air-conditioning; mitigation of short-lived climate pollutants (e.g., improved cook stoves).
Failure to demand accountability
Leon Dulce, national coordinator of Kalikasan-People’s Network for the Environment said via Messenger on October 10 that the latest IPCC report drives the urgent message that governments are failing not only to reach the ambition necessary to limit global warming to relatively safe levels but also to wrest accountability from the top polluter countries and corporations. “There is no other way of effectively alleviating the climate crisis than to exact deep, drastic emissions cuts and climate reparations from these economies. The Philippines should not only prioritize building the adaptive resiliency necessary to protect communities from its disruptive impacts but also to strongly negotiate for polluter countries to unconditionally commit to emissions cuts and just compensation
to vulnerable countries based on science and their historic contributions,” Dulce said. According to Dulce, the landmark initiative of the Commission on Human Rights to investigate the human-rights accountabilities of the top 50 polluter corporations should be fully supported by the national government. The same indictments should be done to historic contributors, such as the United States, the European Union, Japan and China.
Bold climate action needed
In a statement released on October 8, the Institute for Climate and Sustainable Cities (iCSC) said immediate and ambitious action to limit global warming is not only crucial for the Philippines to stave off the worst impacts of climate change but also key to unlocking economic growth. “ The IPCC report is a call for governments to step up their act in avoiding the worst impacts of the climate crisis,” Red Const a nt ino, ICSC e xec ut ive director said. “What is stopping the world from holding warming to 1.5°C throughout the 21st century, while reaping considerable economic benefits, is political will,” he said. The highlights of the report, as well as its economic and political implications for the Philippines, were discussed in a press briefing held by the Climate Change Commission (CCC) with ICSC, a Manilabased international climate and energy policy group. Climate scientist and meteorologist Dr. Rosa Perez, the sole
Our programs and activities are geared toward strengthening our adaptive capacity, to ensure the survival of our vulnerable communities.”—Teh
Filipina lead author of the IPCC special report, presented the summary of the report immediately after its global launch held in Incheon, Korea. Dr. Toby Monsod, associate professor of the University of the Philippines School of Economics, said climate solutions s h o u l d b e i nt e r r e l a t e d a n d baked into major socioeconomic and political policies. “Anticipating the slow onset events of climate change also presents an opportunity to spur wider, sustainable and inclusive economic transformation. The opportunity is to rethink economies, consumption and production choices, urbanization and settlement patterns—and redirect these in favor of productive work, shared prosperity and sustainable development,” she added. Commissioner Rachel Herrera of the CCC, which is under the Office of the President, committed to organize briefings with the Cabinet and the House and Senate climate change committees in the coming weeks.
Warning to the world
“ The IPCC ’s report makes it abundantly clear that anyone who supports the fossil-fuel industry is knowingly contributing to the untold suffering around the world.—The report is a wake-up call for decision-makers at every level,” said Chuck Baclagon of 350.org Asia, in a message sent to the BusinessMirror through social media. He explained that the 1.5°C threshold is a red line for human survival and a more stable climate. “It is the window for keeping warming below that limit is closing fast,” he said. “The impacts from climate change are significantly worse at 2°C than at 1.5°C for people and all of the Earth’s systems exacerbating inequality in how the impacts of a changing climate are already impacting people worldwide,” he said. Limiting warming to 1.5°C, he said, gives the best hope to keep islands and coastal cities above water, and cora l reefs healthy, while reducing the likelihood that deadly heat waves and wildfires become more common, avoiding even heavier precipitation and more dangerous storms, and much more. “A fast and fair transition away from fossil fuels to a renewable-energy economy must protect these most vulnerable communities,” he said.
Gerry A ra nces, e xec ut ive director of the Center for Energy, Ecology and Development (CEED), meanwhile said the task is gargantuan for humanity to avoid runaway and devastating climate change. A s a res pon se, t he Power for People Coalition, of which CEED is a primary mover and organizer, asserted the need to embark immediately to 100-percent renewable-energy systems in the country, and globally, a key contribution to combatting climate challenge and to address the continuous high prices of basic commodities in the country, specifically electricity, which is now dominated by imported coal and fossil fuels. “The IPCC report indicates a potential system transition in electricity generation, following developments in solar energy, wind energy and electricity storage technologies. This echoes our call for policy-makers to see the well-established economic, social and ecological viability of rapidly transitioning toward more renewable energy given the demand to globally abandon coal,” he said.
Urgent necessity
John Leo Algo, science policy associate of the Climate Reality Project Philippines, said preparing for future impacts is an urgent necessity. “In a world warmer by 2°C compared to 1.5°C, more super typhoons will affect local communities, which will place the country’s disaster risk-reduction management system to the test. Sea levels will rise by an additional 1 meter, displacing millions of Filipinos in both cities and rural areas. Over 99 percent of coral reefs may be irreversibly lost, which has massive implications on marine biodiversity and the economy,” he said. He said higher temperatures on both lands and oceans will result in lower agricultural outputs. Yields of maize, rice, wheat and other crops will be reduced more in the 2°C scenario. This threatens food and water security and the livelihoods of the farming and fishing sectors, which are two of the most impoverished in the nation. “The risks on human health would also be magnified, especially at higher temperatures. In megacities, such as Metro Manila, 350 million more people will be exposed to deadly heat stress by 2050. Further global warming would also bring about a more efficient transmission of infectious diseases, such as dengue, especially in urban areas. Such developments would result in more Filipinos suffering from poverty by 2050. The poor and vulnerable sectors are of higher risk from projected declines in food and water availability, higher prices of goods and services and higher health risks, which presents massive challenges to national development,” he said. R e du c i n g g re e n hou s e - g a s emissions from all sectors remain the more effective strategy, he said, specifically, cleaner energy sources, such as renewables and biomass, must comprise 70 percent to 85 percent of the global energy mix, with coal being rapidly phased out and oil and natural gas being utilized more sparingly until mid-century, he said. The Philippines remain one of the highly vulnerable countries on the impact of climate change. It is sure to be the first to suffer the impact, and perhaps the last to recover despite its so-called resiliency, because of its less-thandesired adaptive capacity. Yet again, as we face the devastating impact of climate change, the question remains: Are we doing it right? Or better yet, are we on the right path?
Biodiversity Monday BusinessMirror
Asean Champions of Biodiversity Media Category 2014
Monday, October 15, 2018
Editor: Lyn Resurreccion • www.businessmirror.com.ph
Northern temple pit viper (left) and itom-itom plant CTU-Argao project team
New species of land snail, micro mollusk found in Cebu
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he tiniest snail in the world might be in the mountains of Argao, Cebu. This discovery is one of the accomplishments of the Department of Science and Technology (DOST)-funded project “Flora and Fauna Assessment Using Permanent Biodiversity Monitoring System in Cebu Island Key Biodiversity Areas (KBAs),” under the Niche Centers in the Regions for R&D (Nicer) program. The team, headed by Dr. Archiebald Malaki, conducted floral, faunal and malacofaunal diversity assessment in four KBAs in three selected mountains of Cebu: Mount Lantoy in Argao, Mount Lanaya in Malabuyoc and Mount Kapayas in Catmon. As part of the biodiversity assessment, the project team identified over 23 species of land snails. They also collected specimen of eight unidentified species of land snails and 17 unidentified species of micro mollusks. A micro mollusk is a very small invertebrate with a soft, unsegmented body
with an external shell. According to Dr. Raamah C. Rosales, project staff, it is possible that the team found the tiniest snail in the world from the unidentified species of micro mollusks. Besides possible new species of land snails and micro mollusks, the project team discovered a new island record of the northern temple pit viper (Tropidolaemus subannulatus) and itom-itom plant (Diospyros longiciliata Merr). The team also discovered new foraging adaptation for tube-nosed fruit bat. According to Malaki, this fruit-eating bat turns out to be a leaf-eating bat, as well. The project is expected to end in December 2020 with four faunal and four floral guidebooks (1 guidebook per KBA), database of flora and fauna in their selected study sites, forest land-use plan, trainings on biodiversity/mapping/assessment and policy reports for local government units. S&T Media Services
Philippines participates in 4th illegal wildlife trade meet in U.K.
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he United Kingdom government, through the Foreign and Commonwealth Office, Department for International D e ve l o p m e nt a n d D e p a r t m e nt f o r Environment, Food and Rural Affairs hosted the fourth Illegal Wildlife Trade Conference at the Evolution Centre in Battersea Park, London, on October 11 and 12. This year’s conference recognized the illegal wildlife trade as a security issue, affecting people, as well as animals. It aimed to strengthen par tnerships and build coalitions across borders and beyond the government. It focused on three themes: tackling the illegal wildlife trade as a serious organized crime: strengthening end-to-end law enforcement and addressing associated corruption; building coalitions; engaging the private sec tor, nongovernment organizations and academia; harnessing technology and innovation; and closing markets for illegally traded wildlife, which will be discussed in plenary and break-out sessions. British Ambassador to the Philippines Daniel Pruce said, “The UK is committed and determined to combat illegal wildlife trade, as it is among the most serious crimes, with drugs, arms and human trafficking.” The Philippine delegates to the conference were led by Rep. Josephine Ramirez-Sato and the Department of Environment and Natural Resources (DENR). Ramirez-Sato said, “The Philippines is
undertaking the bayanihan or whole-ofgovernment approach to fast-track the approval of the Revised Wildlife Resources Conservation and Protection Act [House Bill 8320], which I principally authored, and the executive order creating the National AntiWildlife Crime Council prepared by the DENR for signature of President Duterte.” She added: “These efforts will highlight the Bayanihan of the different branches of the government and the private sector to achieve the twin objectives of combatting illegal wildlife trade and conser ving Philippine biodiversity.” The participation of Philippine delegates was expected to be translated into strong government support, including concrete action plans, policies and programs that will help address illegal wildlife trade and other related activities in the Philippines. The participants shared and highlighted country initiatives and showcased best practices on enhanced law enforcement and effective collaborative action to combat illegal wildlife trade. The conference brought together global leaders who were committed to take action on illegal wildlife trade to better protect the world’s most iconic species from the threat of extinction. The illegal wildlife trade, as a mutual concern between the Philippine government and the UK, is expected to remain a priority area of support.
PCAARRD funds project to survey vulnerable ecosystems in E. Visayas
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ALO, Leyte—The Philippine Science High School (PSHS) in Eastern Visayas Campus emphasized the importance of preserving biodiversity in the region through the Biodiversity and Vulnerable Ecosystems Research (BiVER) Program funded by the Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development of the Department of Science and Technology (DOST-PCAARRD). According to Prof. Janeth MorataFuentes, program leader, aims to document biodiversity in Eastern Visayas through ecological assessment and systematics study. She added there is a need to become more adaptable to the environment with the effects of climate change. With the rich marine and terrestrial resources of Eastern Visayas, the whole region has also become more vulnerable to stronger typhoons and heavier rainfalls due to climate change. The BiVER program, through the data it can provide, intends to help agencies like the Department of Environment and Natural Resources and local government units in their policy-making endeavors and in the creation of
Prof. Janeth Morata-Fuentes, program leader, presents the Biodiversity and Vulnerable Ecosystems Research program overview. Eirene Grace C. Zaragoza/FERD/PCAARRD
evidence-based resource-management programs. The program also aims to offer PSHS scholars a training ground to develop their research skills, as well as allow them to have community-immersion experience. Expected outputs of the program include inventory of flora and fauna, data on environmental quality of ecosystems, computational models of economically important river systems and a BiVER database system and web site which will store research data and serve as accessible source of information for the public. This project is the first collaboration of PSHS and PCAARRD, which Acting Executive Director Dr. Reynaldo V. Ebora hopes is not the last. S&T Media Services
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Plants can’t talk but some fruits say ‘eat me’ to animals
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s the sun rises over Kibale National Park in Uganda, red berries and orange figs hang in the rain forest’s canopy. They are waiting for monkeys, apes or birds to scan the foliage, eat the ripe fruit and either spit or defecate seeds far from their sources, spreading their next generation to a new location. Nearly 2,000 miles away, in the similarly mountainous rain forests of Madagascar’s Ranomafana National Park, yellow berries or fragrant, green figs await lemurs, the frugivores of this jungle. They will search the forest all night for their feast, later scattering the seeds.
Communicating to animals through fruits
Over millions of years of natural selection, these plants have developed ways to communicate with animals through their fruits, new research suggests, saying something like “choose me.” With traits evolved to match each animal’s sensory capacities or physical abilities, fruits can signal dinner time in the jungle and further their plant’s survival as a species. “W hen I first learned that plants, in a way, behaved—that they were actually communicating information to animals—my mind exploded,” Kim Valenta, a n evolut iona r y ecolog ist at Duke University and coauthor of a study published recently in Biology Letters investigating the relationship between fruit color and animal vision. Valenta and her colleague Omer Nevo, an evolutionary ecologist at the University of Ulm in Germany who published another paper about scent last week in Science Advances, are working to understand how plants have adapted to appeal to animals that spread their seeds. What they are revealing is that plants deserve more credit—and that the intricate relationships between plants and animals may be critical for understanding and preserving their shared habitats. For more than a century, biologists have wondered why fruits from closely related plants have such different appearances and how animals know which ones to eat.
Fruit traits
The prevailing hypothesis has been that animals could have influenced fruit traits—like shape, location on a tree, presentation on a branch or odor and color— through natural selection. The easier it is for fruit-eaters to identify ripe fruits, the better the chance for both to survive. The animal eats, and the parent plant reproduces—by using the animals as gardeners—without lifting a root. In a similar way, many flowers tailor their petal shape, color, texture or nectar’s scent or flavor to attract often a single pollinating species. Scientists accept that these flower traits could result from coevolution, because the relationships are so specific. But they have had questions about plants reproducing through seed dispersal. How can you pin a fruit’s particular traits to an animal when many different animals, with their own evolutionary adaptations, interact with the same fruits?
Though traits like shape are easier to study, without proper tools to measure color and odor, much research has relied on human perceptions and may have overlooked how other animals may experience the world.
Influenced by animal senses
For the researchers, these parks in Uganda and Madagascar offered the perfect natural experiment. With similar landscapes and related plants bearing different-looking fruits that feed animals with very different sensory abilities, the researchers could reveal how animal senses may have influenced the contrasting colors of ripe fruits against foliage. T he mon keys a nd apes in Uganda have tricolor vision like humans, and the birds have even better vision. But most lemurs in Madagascar can only see the blueyellow spectrum—they’re redgreen colorblind, and rely more on their strong senses of smell for many behaviors. So the researchers collected ripe and unripe fruits and foliage and analyzed their colors with a spectrometer. With a model based on the visual capacities of the seeddispersing animals, they also determined who was most likely to detect different fruit colors contrasting against an assortment of backgrounds. They found the colors of each fr uit were optimized against their natural backdrops to meet the demands of the visual systems of their primary seed dispersers. In Uganda, fruits contrasting with foliage in colors on the red-green spectrum—say that red berry in a green cluster— popped for birds and monkeys whose eyes can see them. But in Madagascar, fruit with blue-yellow contrasts—like those yellow berries—could be best detected by red-green colorblind lemurs (and some birds, too). The researchers also know that lemurs dedicate large areas of the brain to olfaction, helping them communicate with one another and pick mates—often in the dark. To these excellent smellers, a fragrant brown fig might also stand out.
More chemicals
In Nevo’s scent study, his team collected hundreds of ripe and unripe fruits from Ranomafana—about a t h ird d ispersed solely by visually challenged lemurs and the rest by other lemurs and the park’s few visually gifted birds. He suspected the lemureaten fruits would have a greater
In this undated photo, a chimpanzee feeds on figs. Two national parks in Uganda and Madagascar presented researchers with a natural experiment to understand how plants have adapted to appeal to animals that spread their seeds. Liran Samuni via The New York Times
difference in odor after they ripened than the bird-eaten fruits. To find out, he extracted their odors using the “semi-static headspace technique.” Sealed in oven bags, chemical fruit odors built up and were then pumped out, trapped and analyzed. They confirmed that fruits dispersed solely by lemurs produced more chemicals and a greater assortment of compounds upon ripening. In the wild, lemurs spent more time sniffing these same fruits with big differences in ripe versus unripe odors. To the researchers, this suggested the differences could signal, “I’m here. Eat me,” to creatures otherwise possibly unable to see them.
‘Fermented gym sock’
These results may only be extreme, localized cases supporting the hy pothesis that plants and seed-dispersers evolve together. But the researchers see additional clues in a relationship between forest elephants in the Uganda park and Balanites w ilsoniana, a tree that might not be able to sur vive without them. When it was ripe, Valenta said she could detect the “fermented gym sock” odor of the tree’s large fruits for miles. Elephants—with huge noses and more olfactory receptor genes than any other known animal on Earth—gobble up the fallen fruits (they may make them feel tipsy too). O n ly e le ph a nt s c a n s w a llow the fruits and defecate the
When I first learned that plants, in a way, behaved—that they were actually communicating information to animals—my mind exploded.” —Valenta
equally large seeds whole. And this plant will not reproduce unless it passes through an elephant’s gut, Valenta said. This ty pe of mutual dependence is seen in well-established f lower-pol linator relationships, but it is rare to find in fr uit-seed-disperser relationships. Further study may offer additional evidence that animal senses inf luence fruit traits. The traveler’s palm in Madagascar highlights another plant advertisement strategy targeted at animals.
Contain laxative
In other parts of the world, related birds of paradise plants produce red or yellow-coated seeds easily detectable to birds. But in Madagascar, where traveler’s palm is native, the seeds are brilliant blue and particularly detectable to ayeayes, a kind of rat-cat-bat-looking lemur with an enhanced capacity to detect ultraviolet light, according to Jonathan Drori, author of Around the World in 80 Trees. The seeds also contain a laxative, urging whatever eats them to hastily expel them, undigested, “with a nice pile of runny fertilizer,” Drori said. Aye-ayes are also pollinators, using their strength to open the palm’s sturdy nectar packages, ensuring the plant can produce seeds in the first place. “If something happened to those lemurs, those trees, at least in the wild, would become extinct,” Drori said. Interactions like these remind us that plants are active members of a complicated and fragile ecosystem—not just landscape. “We’re only just beginning to understand how much plants and animals mean to one another,” Valenta said, “which to me is just a signal that it’s more important to conserve the entire thing intact.” New York Times News Service
A10 Monday, October 15, 2018 • Editor: Angel R. Calso
Opinion BusinessMirror
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editorial
Sec. Dominguez and interest rate realities
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T is going to be a hard sell to the critics of the Duterte administration and to those who are ignorant about how the economy works, but Finance Secretary Carlos G. Dominguez III is correct.
At the International Monetary Fund and World Bank meetings in Bali, Indonesia, Dominguez said that the Philippines is in a good position to deal with emerging-markets rout but is “being punished” for managing its economy in the right way, given the effect of tightening US monetary policy on the embattled emerging market. From CNBC: “Dominguez said that the US should consider that its actions affect “the entire world, capital flows back to the US, and we’re trying our darndest here, being punished for something we’re doing right.” Further, he said the country is in a “pretty good” position to deal with the situation with the “solid” foreign-exchange reserves, strong banking system and fiscal position. Since 2009 and with the United States Federal Reserve (the Fed) and other major central banks lowering interest rates to virtually zero, borrowing money particularly with loans denominated in US dollars has been cheap and easy. Everyone except the most foolish knew that this situation could not last forever and at some point base interest rates would have to come back to reality and go higher, reflecting genuine market conditions. But for political leaders, especially in the “emerging market” countries, this was like posting a “free beer” sign on the bar door. And politicians are notorious “alcoholics” when it comes to borrowing money. Two factors come into play as the Fed began and continues to raise interest rates. Obviously, the borrowing cost of new loans is going to be higher today than it was a year ago. Remember that the government never pays off its debt but borrows new money to retire old debt. The billions borrowed five years ago that must be paid today, will be paid with much more expensive loans. We may think that money is always in use but a large portion of it is ”parked” in a bank some place, drawing deposit interest. The base interest rate on which bank deposit rates reflect are widely different. Park your money in Switzerland and you do not get much return as the Swiss National Bank rate is a negative 0.75 percent. In Japan it is negative 0.10 percent. Australia, Canada and South Korea are all paying 1.5 percent. But in the US, the current interest rate is 2.25 percent. So if you are looking for the highest interest rate on the parked funds, who are you going to call? To move funds from Japan to the US, you must first buy US dollars with your Japanese yen. The US dollar index has appreciated 7.4 percent in 2018. Granted this is much lower than 102 in 2016, but this year’s move has made the dollar-denominated debt much more expensive as other currencies weakened. Higher interest rates and more expensive dollars has been a twofold near-disaster. Dominguez is correct about an increase in US rates affecting the world but what about that “punishing us” comment? The US would like to see countries raise their rates so that the US dollar does not appreciate too much. But for the Philippines, artificially high interest rates—not based on loan demand—is an economic growth killer. The Bangko Sentral succumbed to pressure from the foreign “experts” and raised rates. Of course they never explained how high interest rates would help grow one more kilo of rice, lower gasoline prices, or pay for the 15-percent increase in the price of your favorite soft drinks.
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BusinessMirror A broader look at today’s business ✝ Ambassador Antonio L. Cabangon Chua
Uncertain times
HE economist’s story about a possible recession is also a call for global economies to “start preparing now, while it still can.” As far as the local economy is concerned, some foreign companies are holding back on their plans to expand as they anticipate the effects of the proposed second package of tax reforms, the Tax Reform for Attracting Better and High-quality Opportunities (Trabaho). Add to this the uncertainties surrounding the government’s plan to shift to a federalist government and the election-related political chaos looming before us.
With the grim international picture and the uncertainty in our local environment, the government, our economic managers and policy-makers need to be scrambling now to prepare for what lies ahead, while there is still time. And even if the future turns out fine, there will be nothing lost if we make ourselves ready. Economic experts, however, are saying that economies, even the big ones, are not prepared for even a mild recession.
The general public still reels from the effects of inflation, so all of the global and local economic and political movements are adding up to the increasing burden of the ordinary citizen. We are not alone, as other countries, especially the emerging economies, are also undertaking belt-tightening measures at this time. We harken back to better days just a year ago when almost all of
in debt, therefore, are finding it more difficult to repay their dollar obligations. Argentina, Turkey, and recently Pakistan are a few of the countries that are being negatively affected by the USA’s rising economic power. For emerging economies like ours, and even for big ones except the US, growth will be slow—that’s according to the International Monetary Fund. Incidentally, emerging economies account for 59 percent
Atty. Jose Ferdinand M. Rojas II
RISING SUN
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the economies of the world were enjoying steady growth. The United States then decided to tighten its economic policies, leading to trade wars between the US and some countries, which was clearly one of the reasons many economies are now feeling the pain. The American economy continues to boom—its unemployment rate is low, interest rates are high and the dollar is strong. Countries
‘No to nuclear weapons’
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Atty. Lorna Patajo-Kapunan
Lourdes M. Fernandez
LEGALLY SPEAKING
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HE Treaty on the Prohibition of Nuclear Weapons is the first globally applicable multilateral agreement to comprehensively prohibit nuclear weapons. It is also the first to include provisions to help address the humanitarian consequences of nuclear weapon use and testing. The Treaty complements the existing international agreements on nuclear weapons, in particular the Treaty on the Non-Proliferation of Nuclear Weapons, the Comprehensive Nuclear-Test-Ban Treaty and agreements establishing nuclear-weapon-free zones. The International Committee of the Red Cross first called for nuclear weapons to be abolished in September 1945, shortly after the devastation and unspeakable suffering in Hiroshima and Nagasaki. The TPNW was adopted by a United Nations’s diplomatic conference on July 7, 2017 and opened for signature on September 20, 2017. (ICRC Legal Fact Sheet, April 24, 2018, on TPNW). September 20, 2018, marks one year since the TPNW was declared open for signature. Its adoption confirmed that a clear majority of States unequivocally reject nuclear weapons on moral, humanitarian and now legal grounds. However, there are nine countries in the world with nuclear weapons— the United States, Russia, the United Kingdom, France, China, India,
Pakistan, Israel and North Korea. The US and Russia account for the bulk of 14,900 nuclear warheads. These countries, (not surprisingly)
and their allies opposed the signing of the TPNW and boycotted negotiations. The nuclear powers have suggested instead strengthening the non-proliferation treaty, which they say has made a significant dent in atomic arsenals (PhilStar.com, September 21, 2017). With Japan being the only country to have experienced atomic bombings and with thousands of bomb survivors, or hibakusha, still wearing the scars of that horror on their bodies and in their minds, the history and name of Hiroshima is well-known across the world. As many will know, the atomic bomb dropped on Hiroshima created a fireball that destroyed 13 square kilometers of the city. The facts describing the death and devastation that ensued are almost inconceivable. Around 63 percent of the buildings in Hiroshima were completely destroyed and many more were damaged. Estimates of total deaths in Hiroshima have generally ranged between 100,000 and 180,000, out of a population of 350,000. In Hiroshima and Nagasaki combined, approximately 340,000 people died immediately and within five years of the bombs being dropped (http://blogs.icrc.. org/law-and-policy/201809/20/ one-year-treaty-prohibition-nuclear-
of the world’s output. Many local businessmen are hoping that the administration would stop creating political uncertainties, as these inevitably lead to economic uncertainties. Economic experts, on the other hand, are also hoping that global markets will cooperate and help each other at this challenging time, as this measure proved to be helpful in overcoming the financial crisis of 2008. We don’t know how possible that is this time, given the current economic and political tensions brewing among some of the nations. With the grim international picture and the uncertainty in our local environment, the government, our economic managers and policymakers need to be scrambling now to prepare for what lies ahead, while there is still time. And even if the future turns out fine, there will be nothing lost if we make ourselves ready. Economic experts, however, are saying that economies, even the big ones, are not prepared for even a mild recession. So obviously there is an urgent need to really look into all possible monetary and fiscal solutions.
weapons-reflections-hiroshima). The TPNW recognizes these catastrophic humanitarian consequences of nuclear weapons and their incompatibility with International Humanitarian Law (IHL). Acknowledging that the use of nuclear weapons is not limited to the immediate effects, it also requires assistance for victims of nuclear weapons use and testing and for environmental remediation. In fact, 190,000 hibakusha are still alive, as well as 200,000 “second-generation” survivors. Both continue to suffer from increased incidences of leukemia and other cancers. Many have psychological instability, including post-traumatic stress disorder. The TPNW also provides a comprehensive prohibition of nuclear weapons and a pathway for the elimination. Although it will not make nuclear weapons immediately disappear, it reinforces the stigma against their use and supports commitments to nuclear risk reduction. In particular, it strengthens the commitments found in Article VI of the 1970 Treaty on the Non-Proliferation of Nuclear Weapons, which remains a cornerstone of disincentive for proliferation—an especially important aspect today, with rising See “Kapunan,” A11
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Redesigning the accountancy curriculum of the Philippines
Change the way you think Siegfred Bueno Mison, Esq.
Alfred Jean-Marie Borgonovo
DEBIT CREDIT
(First of three parts)
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HE accountancy profession in the Philippines is regulated by the Professional Regulatory Board of Accountancy (BOA). The country’s recognized Professional Accountancy Organization is the Philippine Institute of Certified Public Accountants (Picpa). There are more than 188,000 Certified Public Accountants (CPAs) registered in the Philippines, of which over 8,000 are currently active CPAs in Public Practice. To practice accountancy in the Philippines, the requirements are: n the completion of a Bachelor of Science in Accountancy (BSA) from a university accredited by the Commission on Higher Education (CHED), and n successful completion of the CPA Licensure examination. Recently, the CHED and the BOA approved three new university accounting programs in addition to the reformatted BSA. Work experience can be gained in any of the four recognized areas (Public Practice, Commerce and Industry, Academia and Education, and Government). For CPAs in Public Practice, a three-year meaningful experience must be completed. In addition, accreditation must be achieved from a range of different regulatory bodies depending on the industry and other characteristics of their clients. The existing CPA licensure examination in the Philippines is usually taken shortly after completion of a BSA and is administered exclusively through a six-paper multiple-choice examination prescribed in BOA Resolution 2015-262. The existing licensure examinations for CPAs cover the following six subjects: n Taxation n Regulatory Framework for Business Transactions n Financial Accounting and Reporting n Advanced Financial Accounting and Reporting n Auditing n Management Advisory Services n A number of factors led the different stakeholders involved in the certification and regulation of the accounting profession to recognize the need to re-design the accountancy curriculum. These factors included: The need to achieve greater compliance with International Edu-
Kapunan. . .
continued from A10
international and regional tensions, consequently increasing the risk of nuclear weapons use. While the treaty is not yet in force, many of the states who have signed it this past year, and the many others who voted to adopt it, are currently going through their national ratification procedures. Fifty ratifications are necessary for it to enter into force in the near future. For the treaties of IHL, such as the Treaty on the Prohibition of Nuclear Weapons, national governments must formally adopt them by the process of ratification. States must then pass legislation and take regulatory and practical measures for the rules of IHL to be fully effective. The Philippines was among the 121 United Nations (UN) memberstates that adopted the TPNW, affirming its stand on nuclear weapons (Philstar.com, ibid). Foreign Affairs Secretary Alan Peter Cayetano who was in New York in September last year attending the 72nd Session of the UN General Assembly signed the treaty on President Duterte’s behalf. “Our signing of the treaty affirms our unequivocal commit-
cation Standards, which had been significantly modified in the past 10 years. The need to ensure different specializations for accountants were recognized, whereas the existing education and certification model favored the public practice stream to the detriment of other areas of practice. The opportunity to achieve greater regional mobility for members of the profession, in particular through the Mutual Recognition Agreements for professional services under the Asean Economic Community established in 2015. The implementation of the “K to 12 Program,” which added two years of studies in the high-school level in order to provide sufficient time for mastery of concepts and skills, develop lifelong learners, and prepare high-school graduates for tertiary education, employment, and entrepreneurship. (To be continued) (Background: The Centre for Financial Reporting Reform of the World Bank One will be releasing the Guide to Implement Competency Based Accounting Education and Certification by the end of 2018. Included in this publication is an article on the Philippine experience, which was written with inputs from former Chairman of the Board of Accountancy Joel Tan-Torres) Alfred Jean-Marie Borgonovo is Senior Financial Management Specialist, Centre for Financial Reporting Reform, World Bank. Alfred is a Certified Professional Accountant and has provided consultancy services to the Board of Accountancy. This column accepts contributions from accountants, especially articles that are of interest to the accountancy profession, in particular, and to the business community, in general. These can be e-mailed to boa.secretariat. @gmail.com. ment to put nuclear weapons firmly on the path of extinction, a cause of the highest priority embodied in our country’s Constitution,” noted Secretary Cayetano. The TPNWbans signatories from developing, testing, producing, manufacturing, otherwise acquiring, possessing or stockpiling nuclear weapons “under any circumstances.” After one year since its signing in September 2017, the TPNW has not yet been ratified by the Philippine Senate. This, notwithstanding the clear statement of State Policy in Section 8, Article II of our Constitution that “the Philippines, consistent with the national interest, adopts and pursues a policy of freedom from nuclear weapons in its Territory.” Under Article XVIII, Section 4 of the Philippine Constitution, the concurrence of at least two-thirds of all the members of the Senate is needed to ratify all treaties and international agreements. Sadly, the Senate, it seems, is too pre-occupied and waiting with bated breath on whether some other “nuclear bomb” will explode—the arrest (without bail this time) of Senator Trillanes. For humanities’ sake, let’s get our priorities straight!!!
Monday, October 15, 2018 A11
M
THE PATRIOT
ANAGEMENT advocates Johnson and Scholes said that a culture paradigm interconnects six elements, namely, stories and myths, rituals and routines, symbols, organizational structure, control systems and power structures. For the culture in an organization to change, leaders must understand the interplay among these elements in the workplace. In terms of stories and myths, the question is more about how people within the company look at events and people inside and outside it. As such, if people within the organization look at certain persons as heroes or villains, then such classification will influence general corporate behavior. Most expectedly, employees and managers will tend to emulate leadership styles of their heroes and despise those of their villains. For instance, those who admire the audacious yet brash the management styles of US President Donald Trump or Philippine President Rodrigo Duterte will likely exhibit similar behavior in the company. In the process, those under or within their sphere of influence will do just the same. On the other hand, rituals and routines determine the usual corporate response to a particular situation. These can be positive or negative, as in the case of the unwritten doctrine in the Army of “obey first before you complain.” Whenever a direct order is given, a soldier instinctively complies, regardless of the order’s propriety. Symbols, like a corporate dress code, somehow impact the disposition of the people wearing it. For example, the prescribed dress code in the Ateneo Law School reflects its business-like branding as opposed to other law schools’ casual attire. Thus, students who are required to observe a formal dress code would normally exude regimented behavior within the classroom or inside the campus. The symbolism brought about by these rituals and routines, plus how certain public figures are perceived as heroes or villains, greatly influence how management would behave given any situation. In terms of structure, a strict hier-
archal organization endorses the power model of leadership where compliance and obedience are rewarded, whereas, a relatively flat organization encourages a servant leadership model where collaboration and participatory decisionmaking are given more significance. When I worked in a software development company in the USA, the organization was relatively flat and employees were free to communicate across departments. While the company was organized into commercial, administration and product development groups with respective group heads, most people were treated like partners instead of team members. In terms of control systems, every company has internal policies when it comes to office hours, for instance. Companies that still impose the usual 9-to-5 working works as measured by bundy clocks, will reinforce time-bound productivity, punctuality and physical presence at the workplace. Whereas, companies with
work-from-home arrangements with flexible office hours, implicitly promote result-driven performance and unsupervised yet responsible work ethic. And, finally, in terms of power structures, significant decisionmaking powers within an organization usually fall under the CEO or the Board. While in some companies, the hierarchal structure is practically ignored when key or “indispensable” personnel, like Lebron James, for example, in the NBA, are tacitly allowed to make, or at least influence, important decisions affecting the entire organization. For any meaningful and transformational change in the workplace to happen, leaders must not drive change in their companies simply because others in the industry are doing it. They must drive change because they understand the uniqueness of their company in terms of the stories and myths, rituals and routines, symbols, organizational structure, control systems, and power structures. In Philippine Airlines (PAL), a recent employee engagement survey (EES) revealed key drivers (e.g., Organizational Values) and key areas for opportunities (e.g., Workload). During its most recent strategic planning, focus groups, which were externally facilitated, managed to generate priority strategies to maximize revenue and reduce costs. These strategies together with the EES would definitely help PAL identify its current cultural domain, the “What Currently Is” (WCI). The next logical step is for leadership to think about “What Should Be” (WSB)—ideally, and plot out the differences between the WCI and the WSB and make an action plan. It would be futile to make an action plan to change the organizational culture without knowing the differences between these two points. At the very least, the action plan must identify the key issues to be addressed, the specific persons responsible to execute, timelines
to allow measurable progress and, most important, a media plan to communicate the plan to both external and internal stakeholders. Transformational change requires trust, transparency, time and team effort (4Ts). Whether the change required is for a company or for an individual, game changing transformation will need an acceptance and in-depth understanding of WCI and WSB. The aforementioned 4Ts are also reflected in the Bible as Romans 12:2 says, “Do not conform to the pattern of this world, but be transformed by the renewing of your mind. Then you will be able to test and approve what God ’s will is—His good, pleasing and perfect will.” In the Christian world, WCI is the fact that mankind is inherently sinful as influenced by worldly behaviors and standards, and WSB is the aspiration that mankind ought to renew the mind in order to be transformed. And the transformation is not about switching from immoral to holy behavior. Rather, it is more about changing the way one thinks; for the way we think reflects the way we feel and the way we feel often dictates the actions that we are bound to take, which then reflects our basis of decisionmaking, whether from worldly or from godly standards. For instance, from a worldly perspective, death is seen with much sadness as the end of one’s life. But, with a renewed mind, death should be taken with a bit of gladness knowing that it is the beginning of eternal life. As author Norman Vincent Peale once said, “Change your thoughts and you change the world.” Whether in business or in life, we simply cannot and should not conform to what the world has to offer. The journey from WCI to WSB can be a stressful and difficult process. But with a renewed mind resulting to 4Ts from a godly point of view, culture change can only be for the better! For questions and comments, please e-mail me at sbmison@gmail.com.
Nepal’s response to rapes: Ban pornography By Bhadra Sharma & By Kai Schultz | New York Times News Service
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ATHMANDU, Nepal—For months, the government of Nepal has struggled to contain public anger over a rise in sexual assaults in this small Himalayan nation—up 60 percent over the past five years, officials say. Over the summer, a tipping point was reached after the rape and killing of a 13-year-old girl in western Nepal. Across the country, thousands of people demonstrated in the streets and accused the police of tampering with evidence to protect the attacker. Under pressure, the government went back to a tactic it had tried years ago but then abandoned: It banned pornography. This time, it added harsh fines or prison sentences for Internet service providers who refuse to comply. “Pulling down such web sites inside Nepal has become necessary,” read an official statement about the ban. Many in Nepal thought otherwise. Nearly as quickly as the ban was announced, news outlets ran blistering editorials that characterized the measure as “a diversionary tactic to hide the government’s incompetence in prosecuting rapists” and a “misguided attempt at vilifying and scapegoating sex.” Critics of the ban questioned whether there was any link between pornography and Nepal’s sexual assault numbers, and if it was even possible to prevent people from accessing the web sites with the profusion of firewallevading software. Several years ago a smallerscale pornography ban in Nepal faded out, amid a lack of enforce-
ment. Last week data released from a popular pornographic site that was blocked under the new ban already showed a rebound in traffic. Binay Bohra, managing director of Vianet Communications, a large Internet service provider in Nepal, said the ban was an impossible ask, but there was little choice except to comply. Some 20,000 web sites have been blocked, he said, and there are still “millions” more to go. “ The sword of Damocles is hanging over our heads,” he said. Mahendra Man Gurung, secretar y of Nepal ’s Ministr y of Communication and Information Technology, which announced the pornography ban, acknowledged in an interview that the measure “may not resolve all problems.” But he argued the ban was simply one of several steps that have been taken to curb increasing cases of sexual crimes. This year, the government set up an office to address concerns about women’s safety. Staffs’ duties include helping to expedite court proceedings for rape cases and monitoring the investigation of sexual assaults. “Ninety-nine percent of people have welcomed the decision,” Gurung said of the pornography ban. Por nog raphy is banned or heavily filtered in many countries, especially in stretches of North Africa and the Middle East, where conversations about limiting online access are often framed
around religion. Resistance to these restrictions is also common. When India’s government instructed service providers in 2015 to block more than 800 pornographic web sites, the ban drew pointed rebukes from free-speech advocates, some of whom argued that the order violated parts of the Indian Constitution. Days after the ban was announced, the government relaxed it. There is a growing body of research that suggests a connection between pornography consumption and sexual violence, though studies are divergent. Julia Long, the author of ‘Anti-Porn: The Resurgence of AntiPornography Feminism,’ wrote in a 2016 editorial in The Washington Post that “what would be seen as sexual violence and brutality in other contexts is par for the course in pornography.” Blocking pornographic web sites does not necessarily translate into lower rates of consumption, though. With the development of software like virtual private networks or Tor, users can more easily circumvent firewalls. “Anytime you push a legal industry underground—one with bi l l ion s of u sers —you pu sh legal users into those underground spaces, as well,” said Alex Hawkins, a spokesman for the pornography web site xHamster, which was blocked in Nepal under the ban. Hawkins said millions of users in countries where the site is technically blocked, including Thailand, Turkey and the United Arab Emirates, still find ways to visit. In 2013, when Britain mandated an opt-in measure, which required users to obtain access
to pornographic material from their Internet providers, traffic to xHamster from British users increased, he said. In the days after Nepal’s ban was announced, Hawkins said his team had observed a temporary dip in traffic, but by last week, the numbers had largely rebounded. The Nepali government’s first try at banning pornography came in 2010, when officials said the capital ’s many cybercafés had become illicit meeting spots for packs of bored men to watch lewd videos and plan crimes. Some 200 pornographic web sites were subsequently blocked. Bijaya Kumar Roy, a director of Nepal’s government telecommunications authority, said the 2010 ban had worked for a while, but that, eventually, the police had shifted priorities and Internet providers relaxed their filters. This time around, Roy said, Internet providers who did not follow the order would be fined and face possible penalties under an Internet law that carries up to a five-year jail sentence. All 115 Internet service providers in Nepal have been individually contacted about the ban, he said, and reminders were on the way. Around Kathmandu, however, reaction on the street seemed mixed. Sunita Ghimire, a street food vendor, thought the ban was a good move, saying that more children were becoming addicted to “dirty things” as smartphone use in Nepal shot up. Balram Shrestha, the owner of a cybercafé, was less convinced, calling the ban “another populist announcement” from a corrupt government looking to make money through fines and bribes.
Editor: Efleda P. Campos
Companies BusinessMirror
Monday, October 15, 2018
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DICT confident third telco to be named before year-end
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By Lorenz S. Marasigan
@lorenzmarasigan
HE chief of the Department of Information and Communications Technology (DICT) is now more confident his group will meet its target of announcing the third telco player in the Philippines before the year ends, as a local court junked the petition for a temporary restraining order against the regulator last Friday. Eliseo M. Rio Jr., DICT chief, said in a phone interview on Sunday that his group may announce the winner of the third-telco slot this November, a month ahead of its original target of December. “We are all systems go. We can announce the third telco player by November,” he said. “I think the court really sees what is good for the Filipino people.” Rio confirmed his group has received the decision of the trial court in Manila that denied the petition
for a stay order against the National Telecommunications Commission (NTC). Now Corp. filed a case against the regulator for supposedly inserting financial provisions allegedly not discussed during public hearings and meetings. Calling the provisions a “money-making scheme,” Now Corp. listed the provisions as the P700million participation security, the P14-billion to P24-billion performance security and the P10-million nonrefundable appeal fee. Even with the denial of its stay-
order petition, Now Corp. said it remains firm in questioning the aforesaid provisions, and is keen on explaining its side during the court hearing set for next week, October 23. Now Corp. essentially challenged the process in court to change the terms of reference for the selection process, reportedly saying it wants President Duterte himself to select the official third telco. “Everything they did does not only reflect badly on Now Corp. With what they did, they put the President in a bad position,” Rio said. Now Corp., a company controlled by businessman Mel V. Velarde, and with seven other groups bought selection documents from the regulator last week. They are Philippine Telegraph & Telephone Corp. (PT&T), Udenna Corp. of Dennis A. Uy, China Telecommunications Corp., Mobitel Holdings Gmbh, politician Chavit Singson, European telco Telenor, and an unnamed group. Today, Converge ICT Solutions Inc. is expected to buy its selection documents from the NTC, Rio said. It will be partnering with KT Corp., a state-owned South Korean telecommunications provider. “So it will be nine contenders. And who knows? Maybe more groups will
join,” Rio said. Also today, the regulator will host a preselection information session with the prospective bidders. Rio said this is an avenue for participants to learn how to fill out the forms for the selection process. “We will also entertain clarifications on the process, but we won’t be changing the rules any more. They’ve already been set,” he said. The regulator will be accepting the offers of the contenders until November 7, when it will also open the bids to check if they are complete in terms of the requirements. “It will be publicly opened so we will see firsthand their committed level of service,” Rio said. The government veered away from the traditional auction model, and instead adopted a “beauty contest” that essentially takes into account the highest level of commitments on three aspects: speed, coverage and financial capability. Each contender will get points for each category, based on thresholds and minimums. The third telco is expected to challenge incumbents Globe Telecom Inc. and Smart Communications Inc. With its entry, prices of services are expected to go down, all while improving the quality of services.
Analysts: DoubleDragon vulnerable to rising rates
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ROPERTY developer DoubleDragon Properties Corp. may spend P450 million per year in interest expense alone on its outstanding loan as a result of the rise in interest rates. Some of its debts have floating interest. Analysts and brokers said the property developer is vulnerable to rising rates, even as it earlier said it remains generally unaffected by the rise in interest rates. Broker Colfinancial said that, while majority of its P33-billion obligations are peso denominated, around P15.2 billion “have a floating interest cost based on a spread of 1.75 percent to 2.35 percent over the PDST-R2 rate or some other benchmark, depending on which rate is higher.” PDST rates are being used as a benchmark of rates as it is the set of interest rates for several maturities or tenors of government-issued securities. Abacus Securities Corp. said when the loans
were tapped, the floor rate for these ranged from 4.25 percent to 6 percent. “Since the 10-year yield has climbed nearly 300 basis points in the past 12 months, the prevailing rates on these loans now range from 9.25 percent to 9.85 percent. Given that the outstanding balance on these loans was almost P15 billion at the end of the second quarter, we estimate the additional interest DoubleDragon has to pay is close to P450 million per annum,” it said. “Despite the rising interest-rate environment, DoubleDragon remains generally unaffected as we were prudent early on in making sure all our corporate notes and retail bonds have fixed interest rates for seven years to 10 years. The company also has no US dollar exposure with all fund raises being peso denominated,” the company said in a recent statement on the announcement of the construction of its ninth building in DD Meridian Park in Pasay. VG Cabuag
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Companies BusinessMirror
Monday, October 15, 2018
PSE STOCK QUOTATIONS
October 12, 2018
Net Foreign Stocks Bid Ask Open High Low Close Volume Value Trade (Peso) Buy (Sell) FINANCIALS
BDO UNIBANK 109.9 110 108.9 110.3 107.4 110 1808970 197712410 BANK PH ISLANDS 81.2 81.9 81.9 82.25 81.2 81.2 1488610 121363821 CHINABANK 28.6 29.1 28.15 29.6 28.15 29.1 37200 1074810 EAST WEST BANK 11.56 11.66 11.36 11.76 11.32 11.56 3779600 43372448 METROBANK 65.9 66 65.3 66.45 64.7 66 1247880 82297935 PB BANK 11 11.6 11.6 11.6 11.6 11.6 700 8120 PHIL NATL BANK 42.05 42.1 42.4 42.6 41.8 42.1 40200 1701680 PSBANK 72.7 75 75 75 72.6 72.6 420 31476 RCBC 28 28.05 28 28.25 28 28 61900 1735330 SECURITY BANK 140.7 140.9 133.3 144 133.3 140.9 1523710 215470072 UNION BANK 65.9 66 66 66 65.8 66 16830 1110332.5 BRIGHT KINDLE 1.3 1.35 1.29 1.3 1.28 1.3 76000 97960 BDO LEASING 2.5 2.56 2.53 2.53 2.5 2.5 18000 45350 COL FINANCIAL 15.8 15.9 15.9 15.9 15.8 15.8 1200 19030 FERRONOUX HLDG 3.9 4 3.99 4 3.6 4 49000 192760 IREMIT 1.59 1.62 1.62 1.62 1.62 1.62 10000 16200 MEDCO HLDG 0.46 0.49 0.43 0.49 0.43 0.49 360000 162000 MANULIFE 770 829.5 770 829.5 770 829.5 330 254695 NTL REINSURANCE 0.85 0.87 0.86 0.87 0.85 0.87 281000 239480 PHIL STOCK EXCH 186 189 190 190 186 186 400 74973 SUN LIFE 1825 1900 1835 1835 1820 1820 100 182360 VANTAGE 1.17 1.21 1.17 1.17 1.17 1.17 416000 486720 INDUSTRIAL ALSONS CONS 1.24 1.27 1.24 1.27 1.22 1.27 344000 427810 ABOITIZ POWER 33.75 34 33.35 34 33.3 34 970100 32738740 BASIC ENERGY 0.205 0.214 0.218 0.218 0.214 0.214 90000 19420 ENERGY DEVT 7.09 7.1 7.09 7.09 7.07 7.09 1401600 9934499 FIRST GEN 15.56 15.6 15.36 15.64 15.2 15.6 788800 12286016 FIRST PHIL HLDG 63.85 63.9 63.9 64 62.8 63.85 387090 24682409.5 PHIL H2O 4.24 4.4 4.11 4.48 4.1 4.4 107000 451030 MERALCO 350 351.8 355 357.6 349 351.8 149520 53003808 MANILA WATER 25.2 25.45 25.95 25.95 25 25.2 504000 12774825 PETRON 8.37 8.57 8.56 8.57 8.21 8.57 338100 2854601 PETROENERGY 3.96 4.1 3.88 4.1 3.88 4.1 5000 20280 PHINMA ENERGY 0.94 0.96 0.95 0.96 0.94 0.94 229000 215880 PHX PETROLEUM 10.68 10.84 10.36 10.86 10.1 10.84 24400 259170 PILIPINAS SHELL 53.55 53.8 51.95 53.8 51.95 53.8 311830 16280955.5 SPC POWER 5.19 5.2 5.21 5.22 5.2 5.2 369100 1920158 AGRINURTURE 17.9 18.18 17.34 18.18 17.2 17.9 892700 15780524 CNTRL AZUCARERA 16.5 17.64 16.5 17.66 16.5 17.66 200 3416 CENTURY FOOD 13.38 13.4 13.4 13.4 13.38 13.38 8800 117770 DEL MONTE 7 7.07 7 7.07 6.7 7.07 4100 27673 DNL INDUS 10.38 10.4 10.28 10.38 10.16 10.38 2348500 24273518 EMPERADOR 7 7.01 6.93 7.03 6.92 7.01 1652200 11564458 SMC FOODANDBEV 88 89.5 86 89.5 85.3 89.5 688860 60876736.5 ALLIANCE SELECT 0.9 0.91 0.86 0.91 0.83 0.9 6676000 5899400 GINEBRA 25 25.9 25 26 25 25.95 3700 92705 JOLLIBEE 260 262 253 263 249 262 440520 113808286 LIBERTY FLOUR 42 45 42 44.95 42 44.95 400 17390 MAXS GROUP 10.82 10.9 10.52 10.98 10.52 10.9 46600 507530 MG HLDG 0.17 0.183 0.183 0.183 0.183 0.183 100000 18300 PEPSI COLA 1.63 1.65 1.7 1.7 1.64 1.64 58000 95800 SHAKEYS PIZZA 11 11.02 10.98 11 10.98 11 581300 6394170 ROXAS AND CO 2.18 2.19 2.11 2.18 2.1 2.18 566000 1213680 RFM CORP 4.8 4.89 4.7 4.7 4.7 4.7 1000 4700 SWIFT FOODS 0.122 0.129 0.122 0.122 0.122 0.122 180000 21960 UNIV ROBINA 135.8 137 128 137 128 137 997990 134711116 VITARICH 1.72 1.73 1.57 1.76 1.57 1.73 3958000 6728290 VICTORIAS 2.39 2.41 2.41 2.41 2.41 2.41 5000 12050 CEMEX HLDG 2.08 2.1 1.96 2.15 1.92 2.1 11154000 23049030 DAVINCI CAPITAL 4.15 4.6 4.5 4.5 4.5 4.5 15000 67500 EAGLE CEMENT 14.64 15 14.58 15.4 14.5 14.64 309900 4585644 EEI CORP 7.95 8.05 8.2 8.2 8.05 8.05 5700 46150 HOLCIM 5.75 5.85 5.9 5.9 5.8 5.85 318900 1864687 MEGAWIDE 15.58 15.6 14.84 15.66 14.34 15.6 10657700 161,782,696( PHINMA 8.6 8.85 8.5 8.8 8.5 8.6 37000 321220 TKC METALS 0.85 0.9 0.91 0.91 0.89 0.9 41000 36810 VULCAN INDL 2.12 2.13 2.12 2.13 2.07 2.12 4449000 9382650 CROWN ASIA 1.69 1.7 1.7 1.7 1.69 1.69 29000 49190 EUROMED 1.51 1.68 1.7 1.7 1.51 1.51 4000 6610 LMG CHEMICALS 4.8 4.9 4.8 4.8 4.8 4.8 30000 144000 INTEGRATED MICR 11.7 11.9 11.8 11.9 11.62 11.7 733000 8629030 IONICS 1.7 1.75 1.64 1.74 1.63 1.7 1790000 2952670 PANASONIC 5.56 6 6 6 6 6 500 3000 SFA SEMICON 1.47 1.53 1.53 1.53 1.46 1.52 183000 270770 CIRTEK HLDG 34 34.2 34.85 35 34 34 630200 21582130 HOLDING & FRIMS ABACORE CAPITAL 0.41 0.415 0.395 0.41 0.395 0.41 2540000 1028050 ASIABEST GROUP 25.4 25.65 25.85 25.85 25 25.65 45000 1141150 AYALA CORP 900 902 880.5 910 880.5 900 133930 120412495 ABOITIZ EQUITY 46.05 46.15 46.7 47 45.65 46.05 2368200 109366610 ALLIANCE GLOBAL 11.7 11.72 11.5 11.84 11.4 11.72 3349600 39251294 ANSCOR 6.11 6.14 6.11 6.11 6.11 6.11 14900 91039 ANGLO PHIL HLDG 0.71 0.9 0.8 0.8 0.8 0.8 5000 4000 ATN HLDG A 1.15 1.16 1.12 1.17 1.09 1.16 8808000 9864790 ATN HLDG B 1.16 1.17 1.13 1.17 1.09 1.17 5678000 6447590 COSCO CAPITAL 6 6.03 5.99 6 5.86 6 9677500 58009447 DMCI HLDG 12 12.06 12.08 12.08 11.82 12 2450400 29346882 FILINVEST DEV 7 7.15 7.15 7.15 7.15 7.15 3200 22880 FJ PRINCE A 4.55 5.59 5.71 5.71 5.71 5.71 100 571 GT CAPITAL 698 700 675 700 661 700 310760 215984510 JG SUMMIT 45.05 45.5 45.3 45.85 44.6 45.5 1960300 89183205 LODESTAR 0.52 0.56 0.56 0.56 0.52 0.55 66000 35420 LOPEZ HLDG 4.35 4.51 4.3 4.52 4.3 4.52 18000 80730 LT GROUP 13.4 13.42 12.86 13.48 12.86 13.42 5231000 68879040 MABUHAY HLDG 0.52 0.53 0.51 0.52 0.51 0.52 1251000 639910 METRO PAC INV 4.94 4.95 4.95 4.98 4.9 4.94 14153000 69857310 PACIFICA 0.037 0.039 0.037 0.038 0.036 0.038 8600000 315900 PRIME ORION 2.25 2.3 2.2 2.3 2.2 2.25 325000 732800 PRIME MEDIA 1.16 1.22 1.16 1.22 1.15 1.22 61000 70820 REPUBLIC GLASS 2.55 2.7 2.69 2.69 2.69 2.69 8000 21520 SM INVESTMENTS 870 871.5 850.5 871.5 850 871.5 195650 168680095 SAN MIGUEL CORP 166.6 167 163 167 161.5 167 131160 21729892 TOP FRONTIER 268 270 267 278 267 268 1430 384040 WELLEX INDUS 0.222 0.226 0.214 0.227 0.214 0.222 860000 193100 PROPERTY ARTHALAND CORP 0.57 0.6 0.56 0.6 0.56 0.6 440000 258450 ANCHOR LAND 10.5 11.98 10.5 11.98 10.5 11.98 5100 54644 AYALA LAND 39.2 39.3 38.1 39.5 38 39.3 10216900 396810030 ARANETA PROP 1.97 1.99 1.82 1.95 1.81 1.95 75000 145430 BELLE CORP 2.32 2.33 2.34 2.38 2.33 2.33 1865000 4359310 A BROWN 0.75 0.76 0.7 0.75 0.7 0.75 2265000 1651880 CITYLAND DEVT 0.91 0.93 0.91 0.92 0.91 0.92 47000 42780 CROWN EQUITIES 0.211 0.218 0.208 0.218 0.208 0.218 2130000 447340 CEB LANDMASTERS 4.34 4.36 4.36 4.36 4.28 4.36 201000 867130 CENTURY PROP 0.41 0.42 0.4 0.42 0.395 0.42 3980000 1615900 DOUBLEDRAGON 17.94 18.2 18 18.48 17.84 17.94 313700 5655784 DM WENCESLAO 7.58 7.65 7.9 7.9 7.52 7.65 932100 7160398 EMPIRE EAST 0.54 0.55 0.53 0.55 0.53 0.54 60000 32510 EVER GOTESCO 0.103 0.117 0.103 0.104 0.103 0.103 680000 70050 FILINVEST LAND 1.43 1.44 1.4 1.45 1.4 1.43 2600000 3714880 GLOBAL ESTATE 0.96 1.04 1 1.04 0.96 0.96 3907000 3908110 8990 HLDG 7.01 7.05 7.22 7.22 7.05 7.05 24800 176188 IRC PROP 2.39 2.4 2.26 2.41 2.2 2.39 19624000 45500410 CITY AND LAND 0.89 0.9 0.88 0.9 0.88 0.9 102000 91400 MEGAWORLD 4.13 4.15 4.05 4.28 4.03 4.13 21521000 88989440 MRC ALLIED 0.61 0.62 0.59 0.62 0.58 0.61 68174000 41316920 PHIL ESTATES 0.41 0.425 0.435 0.44 0.41 0.41 90000 38100 PRIMEX CORP 3.55 3.56 3.54 3.6 3.41 3.56 1155000 4073520 ROBINSONS LAND 19.76 19.96 19.96 19.96 19.12 19.9 3237200 63589070 PHIL REALTY 0.405 0.41 0.375 0.42 0.375 0.405 480000 192100 ROCKWELL 1.93 1.94 1.93 1.94 1.91 1.93 68000 131010 SHANG PROP 3.15 3.17 3.17 3.17 3.15 3.15 4000 12620 STA LUCIA LAND 1.09 1.14 1.13 1.14 1.09 1.14 1153000 1275300 SM PRIME HLDG 34.05 34.2 33.7 34.2 33.15 34.2 11504500 390226265 STARMALLS 5.69 5.7 5.3 5.8 5.3 5.69 367200 2055842 VISTA LAND 5.68 5.7 5.73 5.75 5.64 5.7 3736200 21275869 SERVICES ABS CBN 20.2 20.25 20 20.8 20 20.25 3400 69815 GMA NETWORK 5.08 5.14 5.03 5.08 5.03 5.08 180300 909584 GLOBE TELECOM 2100 2120 2148 2280 2100 2100 126105 275795780 PLDT 1391 1400 1350 1400 1349 1400 65605 91611385 APOLLO GLOBAL 0.038 0.04 0.037 0.04 0.037 0.04 3000000 116100 IMPERIAL 2 2.1 2 2 2 2 4000 8000 ISLAND INFO 0.11 0.114 0.109 0.114 0.109 0.114 1240000 136350 ISM COMM 2.92 2.93 2.7 3.02 2.65 2.92 8316000 23793020 NOW CORP 5.61 5.62 4.2 5.94 4.11 5.61 43271000 229591520 TRANSPACIFIC BR 0.5 0.51 0.485 0.51 0.465 0.51 37820000 18780550 PHILWEB 3.67 3.7 3.6 3.7 3.51 3.69 491000 1792050 2GO GROUP 9.52 9.6 9.64 9.67 9.5 9.6 28600 274069 CEBU AIR 67 67.3 66.2 68 66.1 67 452080 29909629 CHELSEA 4.8 4.82 4.59 4.85 4.4 4.82 1868000 8673660 INTL CONTAINER 93.05 93.75 93 93.75 91.35 93.05 1362380 126705515.5 LBC EXPRESS 14.2 14.5 14.5 14.5 14.2 14.2 3500 49772 LORENZO SHIPPNG 0.87 0.88 0.88 0.88 0.84 0.88 73000 63030 MACROASIA 17.04 17.06 16.72 17.1 16.72 17.04 1354000 23044052 METROALLIANCE A 1.36 1.44 1.42 1.46 1.36 1.44 32000 45410 METROALLIANCE B 1.07 1.62 1.59 1.63 1.59 1.63 6000 9600 PAL HLDG 7.55 8.3 7.55 7.55 7.55 7.55 100 755 HARBOR STAR 2.58 2.59 2.53 2.63 2.5 2.59 927000 2387540 ACESITE HOTEL 1.29 1.36 1.36 1.36 1.36 1.36 10000 13600 BOULEVARD HLDG 0.057 0.058 0.056 0.057 0.055 0.057 19030000 1054360 WATERFRONT 0.58 0.61 0.59 0.62 0.58 0.61 1534000 916860 FAR EASTERN U 890 900 900 900 890 890 330 296400 IPEOPLE 11.6 12.08 11.62 11.62 11.6 11.6 7000 81260 STI HLDG 0.73 0.74 0.68 0.74 0.67 0.74 3485000 2461110 BERJAYA 1.57 1.58 1.48 1.65 1.47 1.57 3980000 6251390 BLOOMBERRY 8.4 8.41 8 8.42 7.86 8.4 6993200 58287028 LEISURE AND RES 3.46 3.5 3.4 3.5 3.35 3.5 392000 1342030 MANILA JOCKEY 5.2 5.3 5 5.2 4.51 5.2 335700 1700089 MELCO RESORTS 6.99 7.01 7.01 7.02 6.99 6.99 1856600 12988407 PREMIUM LEISURE 0.82 0.83 0.84 0.84 0.82 0.82 6617000 5500070 TRAVELLERS 5.19 5.2 5.2 5.2 5.18 5.2 11155200 57941851 METRO RETAIL 2.17 2.18 2.15 2.21 2.15 2.18 1860000 4062700 PUREGOLD 42.7 43 41.5 43 40.5 43 200200 8461950 ROBINSONS RTL 76.5 80 74.9 80 73.55 80 83130 6416838.5 PHIL SEVEN CORP 106 107 101 106 100 106 573940 60260710 SSI GROUP 2.62 2.64 2.45 2.65 2.42 2.62 29893000 77656740 WILCON DEPOT 10.86 10.98 11.16 11.16 10.86 10.86 898200 9845066 APC GROUP 0.425 0.435 0.425 0.435 0.42 0.435 1190000 509350 EASYCALL 14.12 14.38 12.98 14.96 11.34 14.12 454100 6006672 GOLDEN BRIA 300.4 309.8 310 312.6 300 310 810 248946 IPM HLDG 7.6 7.65 7.7 7.7 7.65 7.65 4100 31465 PAXYS 3.01 3.3 3.05 3.05 3.01 3.01 66000 199680 PRMIERE HORIZON 0.34 0.35 0.33 0.355 0.33 0.35 630000 211050 SBS PHIL CORP 7 7.05 7 7 7 7 22900 160300 MINING & OIL ATOK 16 16.36 15 16 15 16 4900 76410 APEX MINING 1.46 1.47 1.45 1.48 1.44 1.46 2815000 4078930 ABRA MINING 0.0024 0.0025 0.0025 0.0025 0.0023 0.0025 87000000 203100 ATLAS MINING 2.69 2.7 2.77 2.77 2.69 2.69 431000 1165390 BENGUET A 1 1.07 1 1.01 1 1.01 3000 3010 COAL ASIA HLDG 0.295 0.305 0.295 0.3 0.29 0.3 390000 113700 CENTURY PEAK 1.92 1.95 1.89 1.93 1.88 1.93 1273000 2425970 DIZON MINES 7.05 7.09 7.05 7.09 7.05 7.09 1300 9169 FERRONICKEL 1.8 1.83 1.83 1.83 1.8 1.83 779000 1408870 GEOGRACE 0.205 0.207 0.202 0.208 0.202 0.206 390000 80450 MARCVENTURES 1.21 1.28 1.18 1.29 1.1 1.28 55000 63520 NIHAO 1 1.05 1.04 1.05 0.98 1.05 25000 25610 NICKEL ASIA 4.29 4.31 4.25 4.35 4.24 4.31 742000 3183790 OMICO CORP 0.61 0.62 0.62 0.62 0.61 0.62 273000 167610 ORNTL PENINSULA 0.95 0.97 0.92 0.97 0.9 0.97 1069000 1007670 PX MINING 3.25 3.26 3.27 3.28 3.24 3.25 768000 2502700 SEMIRARA MINING 25.7 26 25 26.05 24.9 26 1301800 33467215 UNITED PARAGON 0.0061 0.0069 0.0064 0.0068 0.0064 0.0068 5000000 32800 ORNTL PETROL A 0.012 0.013 0.012 0.013 0.012 0.013 21900000 283400 ORNTL PETROL B 0.012 0.013 0.013 0.013 0.013 0.013 2100000 27300 PHILODRILL 0.011 0.012 0.011 0.012 0.011 0.012 12700000 139900 PHINMA PETRO 3.49 3.59 3.5 3.59 3.45 3.59 30000 104690 PXP ENERGY 15.2 15.26 14.66 15.4 14.6 15.2 1060200 16063054
PREFFERED AC PREF B1 AC PREF B2 DD PREF SMC FB PREF 2 FGEN PREF G FPH PREF C GLO PREF P GTCAP PREF B LR PREF PCOR PREF 2B SMC PREF 2B SMC PREF 2C SMC PREF 2D SMC PREF 2E SMC PREF 2F SMC PREF 2G SMC PREF 2H SMC PREF 2I
475 489 98.5 999.5 101 300.2 485 910.5 1.01 1005 75.1 77 72.9 73.75 75 74.2 73.45 73.8
PHIL. DEPOSITARY RECEIPTS ABS HLDG PDR GMA HLDG PDR
20.2 4.92
2.34
SMALL & MEDIUM ENTERPRISES ITALPINAS 4.6 XURPAS 1.93
105.1
-81500 -10245 -25295855 -27795580 -31177422 91039 -135339.9999 229768 2411074 -40901830 -11348865 -13510 -2575366 -19324990 -61715920 763078 42900 -103597220 -2921270 -62400 4100 -2746826 190 205900 -111660 -25125 779769.9999 19400 -24880560 -198130 -4350 38470 -22957986 -48190 -204593235 -275730 -13264271 43766650 19424260 -16350 -26600 -83590 50900 9550 13107569.5 216150 6044665 -5309584 -18260 32280 36930 127160 -5973654 -3100 -4682474 -277700 -29563375 883200 -1416380 -3697495.5 236900 4055520 -4798584 -7300 -64560 -19200 93580 -934690 -55200 -1199570 2360270 -2736
489.4 490 98.8 1000 101 480 489 945 1.02 1037 76 77.5 74.9 74 74.75 74.95 74.8 74.7
489.4 498 98.9 1000 101 480 489 945 1.02 1037 76 77.5 74.9 75 75.2 75 74.9 74.7
475 489.2 98.8 997 101 480 487 911 1.02 1037 75.5 77.5 72.65 74 74.75 74.5 74.8 74.7
475 498 98.9 1000 101 480 489 945 1.02 1037 75.5 77.5 74.85 75 75.2 75 74.9 74.7
5670 1060 55560 2105 3640 6590 6560 1460 241000 5 350 340 84820 41800 680 25730 1000 560
2693990 518680 5494687 2100600 367640 3163200 3205840 1335500 245820 5185 26550 26350 6206193 3120720 51062.5 1926443.5 74850 41832
-56700 111000 -
20.4 4.93
19.6 4.93
20.3 4.93
19.6 4.93
20.2 4.93
182900 46000
3695240 226780
3191040 -177480
2.35
2.35
2.35
2.3
2.34
112000
259620
-
4.63 1.95
4.32 1.87
4.63 1.96
4.31 1.87
4.63 1.93
820000 788000
3688130 1523450
-94200 -57800
EXHANGE TRADE FUNDS FIRST METRO ETF
898210.0004 -996747 -440606 -7170556 17794050 2825015 -1140187 -10782 -3342945.5 3488102 -30774 10715274 -4012713 -31627557 31390 34065522 -150888 18300 -10190 -3656488 4700 68813577 41900 -8856150 1294756 -9680 -1310917 1,299,586.0003) -173030 2544050 -1733210 -1015775
489.8 498 98.9 1000 102 - 489 945 1.03 1037 75.5 77.5 74.85 75 75.2 75 74.9 74.7
WARRANTS LR WARRANT
-67837072 -62280201.5 -75540 14647944 -32844097.5 -794965 -90404392 -531078.5 9640 -67220 -
105.8
103.4
105.6
103.3
105.1
20570
2153143
135729
Editor: Efleda P. Campos
AC Energy, AMI to develop 80-MW solar-power plant in Vietnam region
A
By VG Cabuag
@villygc
C Energy Inc. and AMI Renewables Energy Joint Stock Co. will jointly develop up to 80 megawatts (MW) of solar-power capacity in Vietnam. Both signed engineering, procurement and construction (EPC) contract and financing documents for the development of solar plants in the provinces of Khanh Hoa and Dak Lak, to be commissioned in time for the June 2019 solar feedin tariff deadline. “We are excited to expand our development initiatives in Viet-
nam and work with our local partner AMI Renewables,” said Eric Francia, AC Energy president and CEO. “We appreciate the strong commitment of the Vietnam government to promote renewables, and the strong support from our banking partners that are providing project financing.” The projects are estimated to
cost $83 million, financed with debt and equity. AC Energy will participate with at least 50-percent economic share. Indovina Bank of Vietnam and RCBC of the Philippines will provide nonrecourse financing for the Dak Lak and Khanh Hoa projects, respectively. AC Energy formed a platform company with AMI Renewables last year to build renewable-energy plants in Vietnam, including the 352-MW Quang Binh wind project. This is AC Energy’s second renewable-energy platform in Vietnam. AC Energy earlier partnered with BIM Group of Vietnam to develop 30 MW of solar-power projects in Ninh Thuan province, Vietnam. The initial 30-MW project broke ground on
January 23. It said then that investment for this phase is expected to reach 800 billion VND, or roughly P1.8 billion. Conergy Asia & ME was tapped as the construction partner. Francia had said the size of the solar-farm contracts increased to 280 MW and that AC Energy and BIM Group plan to further expand the capacity to well over 300 MW. Once completed, the solar farm will become the largest in Southeast Asia. AC Energy is the energy platform of Ayala, with over $1 billion of invested and committed equity in renewable and thermal energy in the Philippines and around the region. The company aspires to develop 5 GW of attributable capacity and generate at least 50 percent of energy from renewables by 2025.
Cavitex Infra asks TRB to grant toll-rate hike
C
AVITEX Infrastructure Corp. is seeking a 20-centavo-per-kilometer increase in toll rates from the Toll Regulatory Board (TRB) to recoup its P800-million investment in widening the Manila-Cavite Expressway, according to its chief. Luigi L. Bautista, the president of the company, said his group would soon seek
the rate adjustment totaling P1.40 for the whole 7 kilometers of road widened, or about 20 centavos per kilometer. The practice, he explained, is to round the total amount down. Hence, the total tariff adjustment may only be P1 for the whole stretch. “We still have to file a petition with the
STOCK-MARKET OUTLOOK LAST WEEK
SHARE prices fell for the sixth straight week last week, with the main index again entering the bear territory and at times saw trading at the 6,000-point level, partly as a result of the bloodbath at the global equities market. The benchmark Philippine Stock Exchange index fell 73.43 points to close at 7,004.77 points, as turnover value was again at its lowest since investors stayed on the sidelines. The main index was down three of the five trading days, but fell the most on Thursday when it closed at 6,847.86 points after Wall Street plunged on trade-war concerns between the US and China. The main index recovered on Friday. “Overall, our market performed better than the rest of the global markets despite low trading volumes and heavy foreign outflows. It could be because of the fact that western markets are coming off recent highs while our market has been taking a beating for most of the year. It is impressive that the index closed above the 7,000 support level, but we are not out of the woods yet,” said Christopher Mangun, research head at Eagle Equities Inc. Foreign investors were net sellers at P2.77 billion, while average turnover value for the week was at P4.6 billion. Among the subindices, only two managed to eke out gains while the rest went down. The broader All Shares index fell 61.56 points to 4,301.8; the Financials index declined 25.10 to 1,549.86; the Industrial index rose 170.22 to 10,575.37; the Holding Firms index plunged 154.54 to 6,796.92; the Property index shed 8.16 to 3,479.81; the Services index was down 15.73 to 1,488.1; and the Mining and Oil index was up 122.76 to 8,775.43. Losers edged gainers at 157 to 64 and 22 shares were unchanged. Top gainers were ISM Communications Corp., Philippine Bank of Communications, Megawide Construction Corp., Rizal Commercial Banking Corp., Liberty Flour Mills Inc. and SSI Group Inc. Top losers were Easycall Communications Philippines Inc., Now Corp., BogoMedellin Milling Co. Inc., Berjaya Philippines Inc., PAL Holdings Inc., Anglo Philippine Holdings Corp. and Global-Estate Resorts Inc.
THIS WEEK
SHARE prices may rebound this week, but trading may still be volatile as the main index struggles to stay above the 7,000-point level. “Friday’s rebound should see some follow-through support, which backs up our range-trading view on the market. The important thing to remember is surviving the volatility until external anxieties ebb,” online broker 2Tradeasia said. It said investors would test the ability of the main index to move between the 7,000-point and 7,400-point levels. “Decoupling is a process, and it should not be long until investors take another glance on prospective returns in equities to fend-off inflationary risks. Seize on weakness to reposition gradually,” it added. Mangun, meanwhile, said there won’t be any significant gains in this market until foreign outflows slow down. “Going into next week, we are looking at two scenarios. The index may move sideways and stay above the 7,000 level or it could tank and test the next support level at 6,800. Based on market sentiment, there is a stronger possibility of the latter scenario. The majority of investors will continue to stay on the sidelines, while foreigners are dumping and let the market decide what it’s going to do,” he said.
STOCK PICKS
BROKER Regina Capital and Development Corp. recommended to cut the losses on the stock of JG Summit Holdings Inc. after its price dropped even lower to a fresh four-year low intraday. “The continuous decline made the stock trade below all moving averages and pushed the indicators further into the bear region,” the broker said, giving a weekly target on the stock at P43.05 per share. JG Summit shares closed last week at P45.50 apiece. Meanwhile, the broker advised to take profits on the stock of Globe Telecom Inc. after its share price has been going down since it reached its 52-week high at P2,380. “The stock may test its P2,100 support next week as its bullish outlook weakens. Nonetheless, it still remains above its moving average,” the broker said. Globe’s stock closed on Friday at P2,100 per share. VG Cabuag
TRB. It is not automatic,” Bautista said in a chance interview. The company is at the tail end of completing its road-widening efforts to add one lane each for both directions of the R-1 section of the expressway—stretching from Miaa to Zapote. Once completed, the section will have four operational lanes each.
“We will file the petition shortly. We’re just waiting for the certificate of substantial completion to be given to us,” Bautista explained. “We may file it this month, as soon as we get the certificate.” The widening of the roads is just the first phase of the company’s expansion program for the expressway. Lorenz S. Marasigan
briefs
BOUTIQUE HOTEL DEVELOPER EYES ‘PREMIUM AFFORDABLE’ MARKET IN BGC
BOUTIQUE hotel developer Novel Residential Concepts Inc. is developing a condohotel close to Bonifacio Global City in Taguig, catering to the so-called premium affordable market business travelers and the meetings incentives conferencing, and exhibitions (MICE) markets. The company partnered with developer C-5 Mansions Development Corp. to develop six floors of the Ridgewood Towers Premier into what it will call Aspen Hotel. The hotel will have 186 keys of one- and two-bedroom units. All of the units will be up for sale to investors at around P3.5 million each for the onebedroom unit and P6.8 million for a two-bedroom unit, with guaranteed interest rate of 6 percent per year. VG Cabuag
MUTUAL FUNDS
October 12, 2018
NAV ONE YEAR THREE YEAR FIVE YEAR Y-T-D PER SHARE RETURN* RETURN STOCK FUNDS ALFM GROWTH FUND, INC * 234.95 -18.45% -2.63% -0.29% -19.87% ATRAM ALPHA OPPORTUNITY FUND, INC.* 1.3504 -16.98% 2.59% 1.22% -15.43% ATRAM PHILIPPINE EQUITY OPPORTUNITY FUND, INC.* 3.6542 -18.59% -1.29% -1.13% -20.43% CLIMBS SHARE CAPITAL EQUITY INVESTMENT FUND CORP.* 0.8458 -16.01% N.A. N.A. -16.83% FIRST METRO CONSUMER FUND ON MSCI PHILS. IMI, INC. * ********* 0.7734 N.A. N.A. N.A. N.A. FIRST METRO SAVE AND LEARN EQUITY FUND,INC.* 4.8196 -17.13% -4.06% -1.13% -19.85% MBG EQUITY INVESTMENT FUND, INC. * ****** 110.96 N.A. N.A. N.A. N.A. ONE WEALTHY NATION FUND, INC.* 0.7703 -20.88% N.A. N.A. -22.4% PAMI EQUITY INDEX FUND, INC.* 45.6054 -17.52% -1.82% N.A. -19.13% PHILAM STRATEGIC GROWTH FUND, INC.* 475.84 -18.11% -2.95% -1.35% -19.14% PHILEQUITY DIVIDEND YIELD FUND, INC.* 1.1817 -14.62% -0.76% N.A. -15.85% PHILEQUITY FUND, INC.* 34.3663 -14.37% -0.41% 1.74% -16.37% PHILEQUITY PSE INDEX FUND INC.* 4.5819 -17.44% -1.15% 1.54% -19.25% PHILIPPINE STOCK INDEX FUND CORP.* 764.7 -17.41% -1.4% 1.22% -19.14% SOLDIVO STRATEGIC GROWTH FUND, INC. * 0.7956 -16.66% -3.47% N.A. -17.73% SUN LIFE PROSPERITY PHILIPPINE EQUITY FUND, INC.* 3.7933 -15.49% -1.34% -0.04% -17.18% SUN LIFE PROSPERITY PHILIPPINE STOCK INDEX FUND, INC.* 0.882 -17.62% -1.31% N.A. -19.33% UNITED FUND, INC.* 3.265 -13.17% -0.43% -0.1% -16.16% EXCHANGE TRADED FUND FIRST METRO PHIL. EQUITY EXCHANGE TRADED FUND, INC.* *** 102.3387 -16.88% -0.21% N.A. -18.75% ATRAM ASIAPLUS EQUITY FUND, INC.* * $0.9376 -13.2% 1.31% -0.48% -15.4% SUN LIFE PROSPERITY WORLD VOYAGER FUND, INC.* $1.2376 1.76% N.A. N.A. -2.18% BALANCED FUNDS PRIMARILY INVESTED IN PESO SECURITIES ATRAM DYNAMIC ALLOCATION FUND, INC.* 1.5827 -13.89% -4.18% -2.48% -15.07% ATRAM PHILIPPINE BALANCED FUND, INC.* 2.1166 -12.86% -1.21% -0.37% -13.85% FIRST METRO SAVE AND LEARN BALANCED FUND INC.* 2.397 -12.16% -4.75% -3.38% -13.46% GREPALIFE BALANCED FUND CORPORATION* **** 1.2589 -13.04% N.A. N.A. -13.47% NCM MUTUAL FUND OF THE PHILS., INC* 1.7692 -9.84% -0.95% -0.42% -11.21% PAMI HORIZON FUND, INC.* 3.3454 -14.22% -2.84% -1.53% -14.62% PHILAM FUND, INC.* 15.0405 -14.04% -2.79% -1.59% -14.34% SOLIDARITAS FUND, INC.* ******** 1.982 -11.08% -0.97% 1.11% -11.6% SUN LIFE OF CANADA PROSPERITY BALANCED FUND, INC.* 3.4905 -11.43% -1.73% -0.59% -12.66% SUN LIFE PROSPERITY DYNAMIC FUND, INC.* 0.8885 -11.48% -2.06% N.A. -12.92% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES COCOLIFE DOLLAR FUND BUILDER, INC.* $0.03458 -4.21% -0.62% 1.74% -4.21% PAMI ASIA BALANCED FUND, INC.* $0.944 -8.34% 1.51% -1.33% -9.84% SUN LIFE PROSPERITY DOLLAR ADVANTAGE FUND, INC.* $3.5679 0.71% 4.73% 3.38% -2.32% SUN LIFE PROSPERITY DOLLAR WELLSPRING FUND, INC.* $1.0737 -2.03% N.A. N.A. -3.46% BOND FUNDS PRIMARILY INVESTED IN PESO SECURITIES ALFM PESO BOND FUND, INC.* 341.41 1.44% 1.81% 1.72% 1.28% ATRAM CORPORATE BOND FUND, INC.* ******* 1.8576 -2.5% -1.13% -0.3% -1.83% COCOLIFE FIXED INCOME FUND, INC.* 2.9409 5.51% 5.35% 5.33% 4.21% EKKLESIA MUTUAL FUND INC.* 2.1165 -0.13% 0.99% 1.1% 0.68% FIRST METRO SAVE AND LEARN FIXED INCOME FUND,INC.* 2.2124 - 0.27% 0.18% 0.53% -0.17% GREPALIFE FIXED INCOME FUND CORP.* P 1.5733 -2.36% -1.01% -1.09% -2.25% PHILAM BOND FUND, INC.* 3.7861 -7.62% -2.16% -0.97% -6.52% PHILEQUITY PESO BOND FUND, INC.* 3.4553 -1.09% -0.63% 0.18% -1.41% SOLDIVO BOND FUND, INC. * 0.8732 -6.45% -2.25% N.A. -5.42% SUN LIFE OF CANADA PROSPERITY BOND FUND, INC.* 2.7521 -0.82% 0.06% 0.47% -0.9% SUN LIFE PROSPERITY GS FUND, INC.* 1.5301 -1.28% -0.45% 0.02% -1.26% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES ALFM DOLLAR BOND FUND, INC. * $445.65 0.25% 2.15% 3.1% -0.07% ALFM EURO BOND FUND, INC. * Є213.12 0.29% 1.32% 1.68% -0.28% ATRAM TOTAL RETURN DOLLAR BOND FUND, INC.** $1.1203 -1.12% 0.75% 1.76% -1.22% FIRST METRO SAVE AND LEARN DOLLAR BOND FUND, INC.* $0.0248 - 0.8% 0.54% N.A. -0.8% GREPALIFE DOLLAR BOND FUND CORP.* $1.6889 -4.93% -0.51% 1.24% -4.66% MAA PRIVILEGE DOLLAR FIXED INCOME FUND, INC. N.S. N.S. N.S. N.S. N.S. MAA PRIVILEGE EURO FIXED INCOME FUND, INC. ЄN.S. N.S. N.S. N.S. N.S. PAMI GLOBAL BOND FUND, INC* $1.024 -5.11% -1.6% -2.72% -4.61% PHILAM DOLLAR BOND FUND, INC.* $2.1327 -4.85% 0.2% 2.38% -5.26% PHILEQUITY DOLLAR INCOME FUND INC.* $0.0568621 -1.02% 0.85% 1.93% -0.59% SUN LIFE PROSPERITY DOLLAR ABUNDANCE FUND, INC.* $2.8763 -4.61% 0.51% 1.74% -4.53% MONEY MARKET FUNDS PRIMARILY INVESTED IN PESO SECURITIES ALFM MONEY MARKET FUND, INC.* 119.89 2.29% 1.66% 1.44% 1.94% PHILAM MANAGED INCOME FUND, INC.* 1.1706 1.39% 0.27% 0.32% 1.14% SUN LIFE PROSPERITY MONEY MARKET FUND, INC.* 1.2096 2.41% 2.15% 1.4% 2.03% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES SUN LIFE PROSPERITY DOLLAR STARTER FUND, INC.* ***** $1.0115 N.A. N.A. N.A. 1.28% * - NAVPS AS OF THE PREVIOUS BANKING DAY ** - NAVPS AS OF TWO BANKING DAYS AGO *** - LISTED IN THE PSE. **** - RE-CLASSIFIED INTO A BALANCED FUND STARTING JANUARY 1, 2017 (FORMERLY GREPALIFE BOND FUND CORP.). ***** - LAUNCH DATE IS NOVEMBER 6, 2017 ****** - LAUNCH DATE IS JANUARY 08, 2018 ******** - RENAMING OF THE FUND WAS APPROVED BY THE SEC LAST APRIL 13, 2018. ********* - BECAME A MEMBER SINCE APRIL 20, 2018. ******* - ADJUSTED DUE TO CASH DIVIDEND ISSUANCE LAST JANUARY 29, 2018
Agriculture/Commodities BusinessMirror
www.businessmirror.com.ph
Editor: Jennifer A. Ng • Monday, October 15, 2018
Farm-gate price of palay slides to 6-week low By Jasper Emmanuel Y. Arcalas
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@jearcalas
HE average farm-gate price of palay as of October 2 fell by 2.05 percent to a six-week low of P22.41 per kilogram, from the previous week’s level of P22.88 per kg, according to the Philippine Statistics Authority (PSA). The farm-gate price of palay declined after farmers started harvesting their crop last month. However, the figure was still 16.54 percent higher than the P19.23 per kg recorded in the fifth week of September 2017. The figure recorded as of Oc-
tober 2 is the second straight week that the nationwide average farm-gate price of palay went down, according to the PSA’s price monitoring report. From September 26 to October 2, the PSA observed the highest farm-gate price in Central Visayas
at P25.24 per kg, while the lowest average quotation of P20 per kg was seen in the Autonomous Region in Muslim Mindanao. Apart from traders, the National Food Authority (NFA) also purchase palay from farmers. The state-run food agency expressed confidence that it will be able to buy more unmilled rice after the NFA Council approved an additional incentive of P3.00 per kg in the agency’s palay procurement support price of P17.00 per kg. Just like in the previous week, the PSA noted mixed movements in the wholesale and retail prices of rice in the country. At the wholesale level, the prices of both well-milled rice and regular-milled declined for the second straight week. “At the wholesale trade, the average price of well-milled rice at P45.95 per kg fell by 0.20 percent
from previous week’s level. [But] it picked up by 17.01 percent from the level a year ago of P39.27 per kg,” the PSA said in the report published recently. “Compared to the previous week’s level the average wholesale price of regular-milled rice at P43.08 per kg went down by 0.09 percent. On an annual basis, it gained by 21.08 percent,” it added. For the first time the average retail price of well-milled rice de-
clined slightly to P49.30 per kg, from the previous week’s P49.37 per kg, according to the PSA. However, the average quotation was still 16.55 percent higher than last year’s P42.30 per kg. “At the retail trade, the average price of regular-milled rice at P46.04 per kg inched up by 0.46 percent from previous week ’s level. Relative to the level a year ago of P38.01 per kg, it climbed by 21.13 percent,” the PSA said.
Compared to the previous week’s level the average wholesale price of regular-milled rice at P43.08 per kg went down by 0.09 percent. On an annual basis, it gained by 21.08 percent.”—PSA
PHL pork imports seen expanding by 11% in 2019
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HE country’s pork imports could rise by 11 percent next year to augment local supply and meet the increasing demand for pork, according to the United States Department of Agriculture (USDA). In its latest “Livestock and Pou lt r y : World Ma rkets a nd Trade” report, the USDA projected the country’s pork imports to reach 300,000 metric tons in 2019, 30,000 MT over this year’s estimated purchases of 270,000 MT. The same report also projected that Philippine swine output in 2019 would grow by 1.87 percent to 1.63 million metric tons (MMT), from this year’s expected total production of 1.6 MMT. The country’s total pork meat demand next year could increase by 3.2 percent to 1.929 MMT, from the estimated consumption of 1.869 MMT this year, the USDA added. Earlier, Pork Producers Federation of the Philippines Inc. (ProPork) President Edwin G. Chen told the BusinessMirror that the increase in meat demand encouraged local hog raisers to produce more. In an earlier interview, Agriculture Secretary Emmanuel F. Piñol expressed confidence that the country would hit its target hog output of 2.185 MMT
PHOTOGRAPHER: ANDREY RUDAKOV/BLOOMBERG
for next year. T he volume is 1.3 percent higher than this year’s expected
production of 2.157 MMT. The USDA report also noted that global chicken meat ex-
por ts next year wou ld reach 11.619 MMT, higher than this year’s estimated shipments of
Snowy, wet mess strands Canada wheat as global crop woes mount
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IK E A MMETER barely received a drop of rain on his Alberta farm all summer. Now, wet and snowy weather has kept him from harvesting his crops for five weeks. “There’s a lot left to be done,” said Ammeter, 58, who hasn’t been able to harvest any of the 1,300 remaining acres of canola, wheat and barley that’s sitting under 1 inch (2.5 centimeters) of snow on his farm west of Red Deer, Alberta. “The wheat is going to be downgraded for quality. Those losses are already done.” It’s unfortunate timing for Canada, one of the world’s top wheat suppliers and the biggest canola exporter. The United States-China trade war and production problems for Russia and Australia are creating an opening for Canada to grab more market share in the global crop trade. While the nation’s wheat exports are running ahead of last year so far, further harvest delays could impede some of those sales. The global wheat issues drove December futures in Chicago up 7.3 percent this year to close at $5.1725 a bushel on Friday. Still, investors are wary the
gains may not last as Russia hasn’t curbed exports and Canada’s shipments have yet to significantly slow. Speculators held a net-short position, or the difference between bets on a price increase and wagers on a decline of 16,885 futures and options in the week ended October 9, according to US Commodity Futures Trading Commission data published on Friday. Those bearish bets could end up squeezing hedge funds if weather problems continue. Canada’s harvest delays are now causing a backlog in exports as ships are sitting idle in Vancouver waiting for grain. “ Vessels ar r iv ing now were booked back in early-August when no one would have guessed we’d be getting this kind of weather,” said Mark Hemmes, president of Edmonton, Alberta-based Quorum Corp., a company hired by the federal government to monitor Canada’s grain transportation system. “Not a good start to the shipping season.” In Saskatchewan the weather has slowed harvest across much of the region and stopped it altogether in northern areas, the province’s agriculture ministry said in
an October 10 report. Many crops are coming out of fields too damp and need to be placed in dryers, exacerbating delays. It’s a similar situation in neighboring Alberta, where 47 percent of major crops have been harvested, trailing the five-year average of 82 percent, the province’s agriculture ministry said on Friday in a report. “It’s not unusual to have this kind of weather, but it is for it to last this long,” said Norm Hall, a farmer and vice president for the Canadian Federation of Agriculture. Any wheat that’s left out in farmer Ammeter’s field will prob-
11.153 MMT. In 2019 the report indicated that the country’s total chicken meat imports may expand by 9.67 percent to 340,000 MT, from the estimated purchases of 310,000 MT this year. “[Global] chicken meat exports are forecast a robust 4 percent higher to a new record. Shipments by major traders are fueled largely by rising consumption in developing markets, such as the Philippines, Angola, Cuba and Ghana,” the USDA said. The United Broilers Raisers Association Inc. (Ubra) said it expects the country’s broiler output this year to expand by 5.4 percent to 970 million heads on the back of higher demand. Ubra President Elias Jose Inciong said broiler production in 2018 may reach 960 million to 970 million heads, higher than last year’s output estimated at 920 million heads. The expected total broiler output this year translates to about 1.248 billion kilograms to 1.261 billion kg at an average weight of 1.3-kg-per broiler. Inciong said poultry growers are optimistic that demand for chicken would be higher due to the increase in population and the improvement in the purchasing power of Filipinos. Jasper Emmanuel Y. Arcalas
ably end up declining to a lower grade or be sold as feed after some plants were flattened by snow. Declines for crop quality could lower his revenue by thousands of dollars, while his costs could go up as he’ll have to spend more on fuel to dry the grain once it comes off the field, Ammeter said. “It’s definitely a stressful time for farmers,” said Daryl Fransoo, who has yet to harvest 4,400 acres of canola on his farm 50 miles north of North Battleford, Saskatchewan. “There’s a lot of guys that are down in the dumps right now.” Bloomberg News
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Lambunao to produce ‘champion farmers’
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LOILO CITY—The local government unit of Lambunao in lloilo province is targeting to produce a thousand “champion farmers” by next year to provide employment to other land tillers. Mayor Jason Gonzales bared this plan in his keynote speech during the local entrepreneur workshop “Road to Open Collaboration with East Asian Network (OCEAN18)” in this city on Saturday. He said the champion farmers program was conceptualized in 2016 and now has 319 members. A champion farmer, also called a “middle class farmer,” is someone who earns P7,000 per month and has attended training conducted by the municipal agriculture’s office. The program was created as the mayor observed that the town kept spending on the same assistance to improve the lives of farmers, but they have noted that “the success of the farmer is largely dependent on behavior.” To motivate the farmers, Gonzales said they have come up with the six pillars of the program for the farmers: values formation, technical skills, provision of inputs, mentoring, access to markets and financing. “Our goal is to reach critical mass that will impact other farmers because if we reach 1,000 champion farmers, imagine, 1 out of 8 farmers in Lambunao will become champion farmers and later on, they will be able to absorb contract agreements, institutional buyers and they will become institutional growers as well,” he said. “We are capacitating them so that later on, they could provide employment to other farmers,” he added. Gonzales said their town has more than 8,000 farmers and 90 percent are into rice production. Though the program is still in its “infancy” and the process to produce a thousand champion farmers will take time, Gonzales said that they have already presented the program to various audiences, both public and private, and they have been receiving inquiries. While Gonzales said that they are not yet ready this year to extend their program to other parts of the country, he assured to roll out the program to other towns in the province by next year. “We will send technicians and champion farmers to other towns to help them start,” he said. PNA
B4 Monday, October 15, 2018
SITEL ACADEMY SCORES P.M.A.P. AWARD FOR TALENT DEVELOPMENT PHILHEALTH CHIEF AFFIRMATIVE IN RESOLVING NET LOSS LAST YEAR
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HE Philippine Health Insurance Corp. (PhilHealth) has remained steadfast to cor rect its net operating loss of P4.7 biliion. “The 2017 financial statement has been validated, and we are confident that certain conditions were not taken into account, such as unrecorded premium receivables from the formal sector that was at P49.1 billion, but reported to be only at P48.7 billion; the overrecording of benefit-claim expenses in 2017 from P105 billion to P102 billion; the reduction in 2017 primary care-benefit accrual of P2.1 billion to P1.1 billion; the recording of 2017 benefit payout under the point-of-service program is, yet, to be refunded by the Department of Budget and Management, which was initially recorded as benefit-claim expenses that amounted to P926 billion; and the unrecorded share of PhilHealth in the 2017 Bases Conversion Development Authority amounting to P25 million.” Despite the erroneous reports, PhilHealth assures its 97-million b e n e f i c i a r i e s o f it s u n d au nt e d commitment to work harder toward achieving a stronger financial condition by improving collection-efficiency, tighten antifraud activities, heighten member consciousness to pay their dues and implementing prudent spending
proved to be very promising. True to its commitment, Acting President and Chief Executive Officer Dr. Roy B. Fer rer a nnounced a n enormous increase in income at endJuly, posting a net income of P10.66 billion, surpassing its performance in June by more than P3 billion. In his speech during his first 100 days accomplishment report to more than 6,000 employees nationwide of the state run social-health insurer, Ferrer said that the increase in net income was a result of the aggressive premiumcollection drive, and the employee’s hard work and dedication. “At the close of 2017, PhilHealth’s collection efficiency for the private sector was at 68 percent. To remedy this, we had to change the way we do business with our partner employers through intensified accounts management. For the 1,600 large NCR [National Capital Region] accounts that were subjected to close monitor ing by a group of PhilHealth ’s accountsmanagement information specialistsor P-AIMS, collection-efficiency jumped to 99 percent, from 50 percent, in a span of three months,” Ferrer said. PhilHealth posted over P72-billion income at end-July 2018 from premiums alone. Part of the figure came from the premium collections from the private
sector, which have seen a 38-percent increase, or P7.44 billion, compared to its June premium income last year. The increase can be attributed to the adjustment in contribution rate from 2.5 percent to 2.75 percent effective January, and the persistent efforts and strategies in accounts management. On the other hand, PhilHealth registered total inf lows of P95.07 billion in July, outweighing its outflows by P7.18 billion, which has become the net inflows the of state-run agency. Ferrer noted that the enormous revenue influx puts PhilHealth’s cash on hand well over P40 billion as of July. Benefit-claim payout, which is a primary expenditure of the social he a lt h - i n s u r a nc e f u nd , re a c he d P56.04 billion. “The figure is a clear and convincing proof that the wheels of the NHIP [National Health Insurance Program] are hard at work and would not stop turning until the last of Filipinos’ medical needs are satisfied,” he said. The PhilHealth chief assured all its members and stakeholders that the agency is financially stable and well managed. With the sustained positive cash position of the agency, Ferrer said that members will continuously enjoy more responsive benefits and unceasing benefit availment.
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HE People Management Association of the Philippines (PMAP) awarded Sitel Academy with the People Program of the Year Award in Talent Development (National Capital Region level). The award recognizes people programs that are pioneering, farreaching, and exhibit corporate social responsibility for Filipinos in marginalized sectors in Metro Manila and the rural countryside. Sitel Academy stood out for offering free contactcenter skills training to students, jobseekers and even persons with disabilities in Metro Manila and in the countryside. The program provides participants with hybrid technical and communications courses, enhancing and expanding their customer care skills, and creating unique job opportunities for the next generation of BPO professionals. “We are deeply honored to be recognized for our commitment in providing an inclusive and learningfocused environment for our people while investing in the growing BPO industry in the Philippines,” stated
Craig Reines, Sitel chief operating officer for Asia Pacific. “We strive to consistently improve the quality of people entering the contact center industry. We also noticed that Sitel Academy graduates tend to stay longer with the company, compared with those who did not go through the Academy. We view this as a good indicator of engagement and employee loyalty.” Since 2012, Sitel Academy has graduated over 20,000 trainees across the country. The academy has also partnered with 150 universities throughout the country and several government organizations, such as the Department of Labor and Employment and the Commission on Higher Education. Shown receiving the award at the recent PMAP event are (from left) Perry Badilla, Sitel Academy manager; Tracy Molina, vice president for recruitment; Haidee Enriquez, general manager for countryside operations; Jamie Blocker, senior director for learning and development; and Drew Fernandez, chief human resources officer for Asia Pacific.
BEKO PHL CAPS OFF SUCCESSFUL COOKOFF CONTEST
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HE contest is in line with Beko’s Eat Like A Pro advocacy, an information-dissemination campaign that aims to help parents in providing their children healthier food choices. “We are extremely happy for the success of our first cookoff event. As part of our global initiative, we want to raise awareness of the rapidly growing rates of unhealthy eating habits, especially among kids,” said Dyeun Zapanta, assistant general manager of Beko Philippines. “We hope to continue with our advocacy by
empowering and helping parents on the importance of healthy eating for the whole family.” In a report released by Food Nutrition Research Institute, it revealed that Filipinos’ intake of fruits and vegetable is declining while their consumption of meat and eggs is increasing. Beko believes that children are among those who are most affected by these bad eating habits, especially since it can be passed on to them. “This initiative is something we would like to continuously promote rather than a periodical campaign. Backed with our innovative products and efforts, we hope that this advocacy will prove to be effective in helping create future leaders,” Zapanta added. To know more of Beko’s #EatLikeAPro advocacy and Beko Philippines, Like them on Facebook at https://www. facebook.com/bekoph/ or visit www.beko.ph. In photo are (from left) Zapanta, Eat Like A Pro cookoff winner Reeva Huertas and her mom Michelle Co-Huertas.
MUNTINLUPA LAUNCHES E-JEEPNEY CARD TIEUP
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HE City of Muntinlupa is leading the way in introducing modern, cashle ss and green public transportation with the launch of the e-jeepney and the expanded Muntinlupa Care Card (MCC) Plus, the country’s most advanced citizen card program. A partnership of the city government and the Lingkod Muntinlupa Foundation (LMF), a nonstock nonprofit organization, the e-jeepneys were created to help address the growing need for environment-friendly transport solution in the city. The e-jeepneys, which comes ahead of the planned public-transport modernization program of the Department of Transportation, plies the city’s major thoroughfares and the business districts in Alabang. Of the 34 units operating, 20 are owned and operated by private corporations that collect fare, while 14 are owned by the city government and operated by LMF, which offers free rides to students, persons with disability and senior citizens who are MCC cardholders. According to Muntinlupa Mayor Jaime Fresnedi, the city takes pride in the transport system and the MCC Plus, the country’s most advanced localgovernment unit card, which combines an ordinary ID with the technology of a PayMaya prepaid card. He said the city government and the foundation have invested heavily in infrastructure, human resource and technology for the program, and has
invested about P13 million since 2015 for the purchase, maintenance and operations of e-jeepneys. The system has a centralized station with trained drivers and mechanics in charge of maintenance and experienced fleet managers for orderly deployment. The units are powered by deep cycle-lead acid battery and uses electric motor, instead of internal combustion engine, which eliminates smoke emission and noise pollution. The program is financed by the membership and renewal fees for the MCC Plus. Locals can avail themselves of free rides to e-jeepneys by tapping their MCC Plus cards into the sensors inside the electronic vehicles. Because of this green technology, Muntinlupa was awarded by the Electric Vehicle Association of the Philippines in 2016 as the country’s “Electric Jeepney Capital” for having the most number of e-jeepneys, which help reduce air and noise pollution. The city government is also recipient of the ISO: 9001 quality management-system certification, which arrests to the efficient delivery of services to the public. Korea’s Global Electric Vehicle Association Network and Japan’s PUES-EV and Oriental Consultants Global Co. Ltd. observed the e-jeepney operations to study the best practices in e-vehicles for public transportation in the Philippines.
WHO WOULD LISTEN? WHO WOULD CARE? T Sports By Eddie Pells
The Associated Press
WO men stood together, utilizing the worldwide platform that only the Olympics can provide, to call attention to the struggle they shared with fellow Americans during a divisive, seemingly intractable period in their country’s history. In 1968, sprinters Tommie Smith and John Carlos raised their black-gloved fists on the medals stand. In 2018, skier Gus Kenworthy and his boyfriend, Matt Wilkas, made their own calculated statement when they kissed at the bottom of a ski slope. Smith and Carlos had a captive global audience of hundreds of millions to create international headlines thanks to limited choices in a growing TV culture. Today’s athletes—even when armed with a powerful message of inclusion or social injustice, a la Kenworthy or the polarizing Colin Kaepernick—face different obstacles. They are communicating to groups fragmented by cable TV, social media and the various echo chambers that define today’s public discourse. And so, even though the Olympics have morphed into a mass-media extravaganza beyond what anyone could’ve imagined when Smith and Carlos raised their fists 50 years ago, on October 16, 1968, it’s hard to envision anything replacing that as the most significant protest in the history of the Olympics, and sports in general. “Back then, Carlos and Smith were ‘The Story’ and you couldn’t really avoid it,” says Washington State professor Scott Jedlicka, who recently gave a lecture to a group of sports historians about the complexities of the Mexico City Games. “Today, not only would it perhaps be forgotten a lot more quickly, but it would also be spun up in so many different ways to drive up meaning and message about the protest’s significance.” As true back then as it is today, very few people tune in to a sporting event expecting, or particularly interested in, a lesson about civics or social inequality. Many would prefer for athletes to stay inside the lines. As images of their defiantly raised fists slowly filtered across the globe, Smith and Carlos were widely vilified, and kicked out of the Olympics by their own country’s federation. Both men suffered personally and professionally upon their return to the United States. Neither has expressed regret about what they did. “Yes, indeed, it was worth it,” Smith said in an interview aired on BBC this month. Carlos’s words from 50 years ago still resonate in many corners today: “White America would not understand,” he said that night. “They recognize me only when I do something bad, and they call me ‘Negro.’” If the reaction to the sprinters, over weeks, and months and then years, was a slow-moving tsunami, the reaction to Kenworthy and Wilkas was more like a fast-moving, then quickly extinguished, wildfire. Though their kiss was picked up by TV cameras, it didn’t start trending until the images were redistributed via social media. It was a purposeful and powerful gambit by Kenworthy, who used his Twitter and Instagram accounts throughout the Pyeongchang Games to help bring LGBT issues to the fore. Images of the kiss went viral, but the nature of 2018-style social media made the episode a juicy morsel for a news cycle. It was quickly overrun by outrage over Korean dog meat farms and politically charged rants about Ivanka Trump’s visit to Pyeongchang. Part of this might be a sign of progress—the image of gay athletes kissing doesn’t evoke the same response now as it would have 20, or 50, years ago, Jedlicka says. But another part “speaks to the fact that you don’t have the media gatekeepers you had in 1968,” said John Koch, who teaches a course called “Rhetoric, Sports and Society” at Vanderbilt. “It used to be the media had the sole responsibility of what was salient, worthy of seeing,” Koch said. “Twitter users have that same ability now.” That’s what has helped Kaepernick, in many ways, become this generation’s Smith and Carlos. When the quarterback first kneeled to protest racial and social injustice during the national anthem, it went completely unnoticed during a preseason NFL game and only gained traction through the powers of social media.
Simone Biles responds to a tweet from Mary Bono (below) last month criticizing Nike following the release of its advertising campaign. AP
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| Monday, October 15, 2018 mirror_sports@yahoo.com.ph Editor: Jun Lomibao
Biles bothered by anti-Nike tweet
survivors. Bono spent 15 years as a US
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Tommie Smith (center) and John Carlos (right) stare downward as they extend gloved hands skyward during the playing of the “Star Spangled Banner” after Smith received the gold and Carlos the bronze for the 200-meter run at the Summer Olympic Games in Mexico City on October 16, 1968. AP
From there, his message has been filtered and refiltered through everything from tweets by President Donald Trump to ads run by his corporate supporter, Nike. Most poignantly, sports has become a central part of the (hashtag)MeToo movement in the wake of the Larry Nassar sex-abuse scandal, which exposed the physician as the molester of hundreds of young female athletes, including members of the US Olympic gymnastics team. The hashtag in “(hashtag)MeToo” says all we need to know about the medium through which some of the most heart-wrenching calls to action have come. It reinforces the words of Marshall McLuhan, the
renowned intellectual who famously declared “The medium is the message”—a nod to the idea that the way information is disseminated is every bit as important as the information itself. In 1968, Smith and Carlos felt the sting of social injustice and knew they could draw attention to it on the Olympic medals stand. Fifty years later, athletes have more outlets at their disposal to point out similar problems of inequality. But once they use them, the myriad of platforms can help turn one story into a slow-moving Kaepernick tsunami and relegate another to a Kenworthy-Wilkas news minute.
lympic champion Simone Biles is upset about an anti-Nike tweet from USA Gymnastics interim president and CEO Mary Bono. Bono was appointed last Friday to hold the position while USA Gymnastics searches for a permanent successor to Kerry Perry, who resigned under pressure from the United States Olympic Committee in September after spending nine months on the job. Biles responded last Saturday to a tweet from Bono last month criticizing Nike following the release of its advertising campaign featuring former National Football League quarterback Colin Kaepernick. Bono, a former Republican congresswoman, had posted a photo of herself drawing over a Nike logo on a golf shoe. Biles quote-tweeted Bono’s
WRONG ANTHEM, RIGHT RESULT
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THE Dutch celebrate their third goal against the Germans. AP
photo and wrote: “(asterisk) mouth drop(asterisk) don’t worry, it’s not like we needed a smarter usa gymnastics president or any sponsors or anything.” Bono deleted her tweet about five hours later, saying she regretted the post and respects “everyone’s views & fundamental right to express them.” Nike is one of Biles’s sponsors. Biles is among the more than 200 women who have come forward over the last two years claiming they were sexually abused by former team doctor Larry Nassar under the guise of treatment. Biles was critical of Perry for not being vocal enough in support of the
EREVAN, Armenia—Gibraltar won its first-ever competitive game after 22 straight losses with a 1-0 victory over host Armenia on Saturday in the UEFA Nations League. Joseph Chipolina scored the historic winner in Yerevan from the penalty spot in the 50th minute. It was also the first away victory for Gibraltar, which has a population of around 30,000, in any international game. During its previous 22 defeats since making its competitive debut in September 2014 against Poland in a qualifying match for Euro 2016, Gibraltar had been outscored 107 goals to five. Not everything went right for Gibraltar, however, with its players having to listen to the national anthem of Liechtenstein before the match. The Gibraltar FA said its Armenian counterpart had apologized for the mistake. Gibraltar will likely recognize both anthems on Tuesday
when it hosts Liechtenstein at the Victoria Stadium. After three rounds, Gibraltar has three points in Group 4 of League D. Germany’s UEFA Nations League campaign, meanwhile, took a humiliating blow after a 3-0 loss at old rival Netherlands on Saturday. Germany remains without a win in the top-tier League A and has yet to score a goal. In the second-tier League B, the Czech Republic got its first win in the new competition—beating host Slovakia 2-1—and Ireland and Denmark drew 0-0. Following its disastrous World Cup defense in Russia, Germany has been under pressure to show some progress but it didn’t come at the Johan Cruyff Arena on Saturday night. The Germans failed to score for the third straight competitive game, including a humiliating 2-0 loss to South Korea in Russia and a 0-0 draw with France at home in the Nations League.
Representative from Southern California from 1998-2013. She won her first term in a special election running as a Republican to fill the vacancy left by the death of her husband, former pop star and lawmaker Sonny Bono. Mary Bono most recently worked at a consulting firm in Washington, D.C. Bono, 57, has a background in gymnastics. She trained for several clubs for a decade. “Mary is passionate about the sport, and having her as our interim president and CEO will move the organization forward,” USA Gymnastics board chairman Karen Golz said in a statement. USA Gymnastics is still struggling to emerge from the fallout of the sexual abuse scandal surrounding former team doctor Larry Nassar. More than 200 women have come forward over the last two years claiming they were sexually abused by Nassar under the guise of treatment, including current or former members of the organization’s elite program. AP Captain Virgil van Dijk scored only his second international goal before Memphis Depay and Georginio Wijnaldum added two more as the Dutch ran riot late in the game. The comprehensive defeat left Germany at the bottom of Group 1 with a single point, days before it heads to Paris to take on group leader and World Cup champion France. France leads the Dutch by a point at the top of the standings. The result also heaped more pressure on Germany coach Joachim Loew, who opted to stay in the job after the 2014 world champion crashed out of the summer’s World Cup in Russia at the group stage. “Why are we not scoring? That’s difficult to answer, we have clear chances,” Loew said. “Had we lost 1-0, it would have been acceptable but breaking apart like this in the last 10 minutes is not good.” Germany’s scoring woes were personified by Loew’s decision to play Mark Uth as a lone striker despite the 27-year-old Schalke player failing to score a goal this season. Uth didn’t impress and was substituted in the second half. AP
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BATTLE OF LUISITA T
HE men of the Philippine Golf Tour and PGT Asia are set out for back-toback duels at the demanding Luisita Golf and Country Club in Tarlac beginning on Tuesday, all ready and raring to slug it out in two rich tournaments following a monthlong break on the two circuits. Jhonnel Ababa, the last winner at the International Container Terminal Services Inc. (ICTSI) Club Filipino de Cebu last month, heads the 80-player field in the P4-million ICTSI Luisita Invitational, where five of the nine-leg titlists go all out to match Jobim Carlos’s twotitle feat in the final leg of this year’s 10-stage PGT put up by ICTSI. They include Eagle Ridge champion Guido van der Valk of the Netherlands, Philippine Masters titlist Jerson Balasabas, Del Monte winner Nicolas Paez of the US, Bacolod stop victor Justin Quiban and Ababa. Missing this week’s championship organized by Pilipinas
Golf Tournaments Inc. are Korean Kim Joohyung, winner at Pueblo de Oro, and Negros leg playoff titlist Juvic Pagunsan. But aside from the leg winners, the field also features veteran campaigners and upcoming stars due for big win and out to avert a winless season, including former three-time PGT Order of Merit winner Tony Lascuña and reigning OOM champion Clyde Mondilla. The Central Azucarera de Tarlac (CAT) Open, meanwhile, will be played from October 23 to 26, with the $100,000 event serving as the sixth leg of the second season of PGA Asia featuring a tough international cast. Also vying at Luisita Invitational are former leg champions Jay Bayron, Zanieboy Gialon, Rene Menor and Elmer Salvador along with Michael Bibat, Joenard Rates, Charles Hong, Orlan Sumcad, Nilo Salahog, James Ryan Lam and Keanu Jahns.
Forest Hills in rare sweep of WGAP tilt
The other foreign aces joining the title hunt are siblings Qawim and Qazzri Aslimon from Brunei Darussalam, Aussies Tim Stewart, Nathan Park and Jerram Chudleigh, Americans Andy Kang, Lexus Leoninh and Pete Vilairatana, Koreans Park Jun-sung and Kang Chon-koo, Japanese Taisei Mochita, Rio Mori and Hiroyuki Ono, Spain’s Salvador Paya Vila and Peter Stojanovski of Macedonia. A select pro field, meanwhile, tests the tight, hazard layout in Monday’s pro-am where they will be paired with guests and officials of the event’s chief backers, including ICTSI, Custom Clubmakers, Meralco, Champion, Summit Mineral Water, K&G Golf Apparel, BDO, Sharp, KZG, PLDT and M.Y. Shokai Technology Inc. Thirteen sponsor invitees are also out to sneak in and contend for the crown, including pro-bound Rupert Zaragosa and fellow amateurs Jolo Magcalayo, Paolo Wong and Aidric Chan.
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orest Hills snatched the Women’s Golf Association of the Philippines (WGAP) Circuit crown in style, pulling off a rare sweep of all three divisions at home to rally from fifth to the top of the heap at the close of the eight-stage event at the Nicklaus and Palmer courses in Antipolo recently. Saving their best for last, the hosts pooled 143 Stableford points to beat Camp Aguinaldo by seven in Class A, assembled a 139 to dominate Villamor by 11 points in Class B, and combined for a 153 to thwart Sta. Elena by three in Class C. With a closing nine-point haul, Forest Hills got past penultimate round leader Sta. Elena, Villamor, last year’s champion Tagaytay Highlands and Camp Aguinaldo to emerge this year’s best in the course-hopping circuit among the top golfing ladies from the country’s leading courses. Forest Hills edged Sta. Elena by the thinnest of margins, 25-24. With its runner-up finish in Class C worth two points, Sta. Elena also placed third in Class A to settle for second while Villamor placed third with 21 points, Tagaytay wound up fourth with 19 and Aguinaldo ended up fifth with 18. The top 5 also advanced to the WGAP Cup. Aguinaldo’s Leni Cabili, meanwhile, took the overall individual crown with 274 points, nipping Canlubang’s Theresa Enriquez by one, while Villamor emerged the overall Class A champion over Aguinaldo with Forest Hills and Canlubang winner the overall Classes B and C plums over Eagle Ridge and Sta. Elena, respectively. Rose San Roque fired 39 points, Jonah Ilagan shot a 36 and Yun Haeng “Grace” Cho and Ma. Consuelo Conti backed them up with a pair of 34s as Forest Hills ruled Class A with a 143, seven points ahead of Aguinaldo, which scored a 136 with Sta. Elena finishing third at 130 followed by Tagaytay (129), led by individual winner Chesca Imperial’s 38 points, Canlubang (127) and Alabang (110).
Ramos, Kim snatch North Luzon golf crowns
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ean Ramos battled back from two down and pounced on Josh Jorge’s final hole mishap to snare the men’s crown with a 68 while Korean Kim Seo-yun outduelled Bernice Olivarez-Ilas on the third playoff hole to clinch the women’s title in the National Golf Association of the Philippines (NGAP) Northern Luzon Regional Golf Championship at the Beverly Place Golf Club in Pampanga on Sunday. Jorge actually forced a tie at four-over overall total after Ramos bogeyed the par-5 17th but the former cracked under pressure and bogeyed the last for a 71, another par-5, enabling Ramos to claim the win on a 217 aggregate that included rounds of 74 and 75. It was Ramos’s second straight championship after ruling the Canlubang Amateur Open last week. And it was sorry setback for Jorge, who flashed resiliency after an opening triple
bogey 8 and a bogey on the second as he rattled off four birdies in the next seven to salvage and even par card and regain a one-stroke lead over Ramos, who shot a 33, at the turn. But Ramos took charge with birdies on Nos. 12, 14 and 16 only to drop to a share of the lead again with a bogey on the penultimate hole. Masaichi Otake skied to a 77 and wound up third at 228 while Jet Hernandez pooled a 231 for fourth after an 81 followed by Francis Lanuza (79-237), Miguel Olivarez-Ilas (81-243) and David Guangko (78-244). Kim, on the other hand, came out of two bogey duels with Ilas with a par on the third extra hole, which the latter bogeyed, to share the spotlight with Ramos in the 54-hole championship which served as part of the PLDT Group’s National Amateur Golf Tour organized and conducted by the NGAP. Kim rallied with a backside 35 and a 72 in
regulation for a 215 to tie Ilas, winner of the pro event here in 2016, who blew a five-stroke lead with nine holes to play with a closing 40 for a 75 in the event backed by the MVP Sports Foundation, Cignal, Metro Pacific and hosted by Beverly Place Golf Club. Laurea Duque placed third with a 217 after a 73, while Rianne Malixi rallied with a 71 for fourth at 224 followed by Kristine Fleetwood (74-228) and Weifang Gao (79-241). August Cruz scored a wire-to-wire triumph in men’s division Group 1, pooling a 151 after a 77 to beat Bernardo Chang Jr., who had a 159 after an 80, in gross play while Alan Alegre took the net crown with a 146, four shots ahead of Santino Diokno. Armando Lustre, meanwhile, fought back with an 83 to claim the Group 2 gross diadem with a 168, beating Boom Coscolluela, who had a 176 after an 89, with Anthony Arevalo taking the net title with a 148 for a one-shot victory over Oliver Onrubia II.
Club Filipino de Cebu winner Jhonnel Ababa (right) and Del Monte champion Nicolas Paez of the US lead the charge in Tarlac.
‘FANS ARE EVERYWHERE!’
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T was the final minute of a preseason game between Philadelphia and Dallas, the 76ers were up by four points with the ball, and thousands of fans were screaming “defense” at the top of their lungs. A common scene, with an uncommon detail: The game was in China. “Fantastic,” Dallas’s Dirk Nowitzki marveled. “Shows our fans are everywhere.” That fandom, and the importance of those international eyeballs, just keeps growing. The National Basketball Association (NBA) has been going overseas to play either preseason or regular-season games for 40 years, and the global footprint of the league—not to mention its business interests—continues to expand. The league has opened up 12 international offices, establishing seven academies on four continents and started broadcasting games to more than 200 countries and territories. This season, the NBA heads back to Mexico and England for regular-season contests, after the 76ers and Mavericks played exhibitions in China earlier this month. “I believe we can be the No. 1 sport in the world,” NBA Commissioner Adam Silver said. “When I look at the trajectory of growth, the fact that young people, boys and girls, continue to love this sport, are playing this sport, are engaged in the sport of basketball on social media or with online games, I don’t know what the limit is.” The numbers touted by the NBA are impressive: 300 million people playing the game for fun in China alone, rapid growth in India over the past decade as that country is on pace to become the world’s most populous by 2025, an estimated 1 billion people around the globe—that’s basically 1 out of every 7 people alive—having some access to the NBA Finals. But in terms of global popularity, soccer is still tops. The NBA model of academies seems to be loosely based on what soccer teams around the world have been doing for years; some of the top international clubs have set up those academies in the US, and the NBA is taking its academies into other parts of the planet. Simon Chadwick, a Sports Enterprise professor at Salford Business School in Manchester, England, urged caution when relying too much on data coming out of China. He said the NBA’s benchmark in China is
obvious, but that the league still needs to work hard “in new and emergent sports markets” if Silver’s hope of basketball supplanting soccer is going to be realized. “Getting the strategy right across these different territories is going to be a crucial factor in any potential growth in basketball’s global popularity,” Chadwick said. “Will basketball become the world’s favorite sport? It is not inconceivable, although it is unlikely— at least in the short to medium term. It will need nurturing, careful management, sound strategy and good judgment if it is to succeed.” China’s affinity for the game isn’t truly understood until seen in person. Marvin Johnson moved from the Miami area to China in 2017 to teach and coach at a basketball academy there. The first thing he saw when he deplaned in Beijing was a massive Li-Ning store that was basically a shrine to Heat guard Dwyane Wade, who now has a lifetime contract to endorse the Chinese brand’s products. “Anytime you go out to play basketball at a local court there is a plethora of NBA jerseys being worn by the players,” Johnson said. “If you ask any local playing basketball, they can’t name the players on the local Chinese Basketball Association team—but they can name their favorite players in the NBA in an instant.” AP
SUPERLIGA HOLDS COLLEGIATE MEET
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HE Philippine Superliga (PSL) is all set to roll out the red carpet for the inaugural collegiate tournament when its All-Filipino Conference fires off. PSL Chairman Philip Ella Juico said the PSL Collegiate Grand Slam (CGS) promises to be another action-packed battle as it features the country’s brightest collegiate players in preparation for their potential career in the semi-professional league. The tournament will be played every Saturday and will be shown live in the league’s official broadcast partner ESPN5, AksyonTV and sports5.ph. PSL rules will also be applied and teams will be given a chance to use the challenge system to make sure that the officiating will be on a par with international standards. So far, six teams—University of the Philippines (UP), Far Eastern University, University of the East (UE), University of Santo Tomas (UST), De La Salle University-Dasmariñas and Colegio San Agustin (Biñan selection)—have confirmed their participation. Juico said they expect more teams to jump on board when the tournament goes full blast next year. “We want to explore the possibility of having a strong collegiate league,” said Juico, a former Philippine Sports Commission chairman and president of the Philippine Athletics Track and Field Association. Having collegiate teams in a regular tournament is nothing new for the PSL. In the past, collegiate squads like University of Perpetual Help Dalta System, UST, UP and UE saw action in the Invitational Conference. But with the formation of the CGS, the collegiate field will be very competitive as there would be a division solely dedicated to young players who are looking to play in the country’s most prestigious club league in the future. The league will open on October 30, but the CGS and formal opening ceremony will be held on November 3 at the Filoil Flying V Centre. Dirk Nowitzki marvels at how the fans came in droves in a Philadelphia-Dallas preseason game in China. AP
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DE VEGA HEADS HALL OF FAME THIRD BATCH
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FTER a tough selection process, Asia’s Fastest Woman Lydia de Vega-Mercado, multi-awarded bowler Rafael “Paeng” Nepomuceno and eight other Filipino sports legends made the third batch who will be enshrined by the Philippine Sports Commission (PSC) to the Philippine Sports Hall of Fame. “It is with pride that I announce the 10 newest members of the Philippine Sports Hall of Fame,” PSC Chairman William Ramirez told a recent press conference at the PSC offices at the Rizal Memorial Sports Complex. Ramirez, head of the Selection and Screening Committee, made the announcement along with Philippine Olympic Committee representative Ed Picson, Games and Amusements Board representative Dioscoro Bautista Jr., Philippine Olympian Association President Akiko Thomson-Guevara, national sports association representative Bernie Atienza and media representative and Philippine Sportswriters Association President Dodo Catacutan. “The Review Committee shortlisted 16 names from the nominated 37 athletes and coaches by individuals and sports organizations after a threemonth nomination period nationwide, based on the requirements of Republic Act 8757,” former PSC Commissioner Thomson-Guevara said. Joining de Vega and Nepomuceno are former Asian Golf Circuit winner Ben Arda, basketball legends Sen. Ambrosio Padilla and Loreto Carbonell, baseball and softball standout Filomeno Codiñera Jr., decorated bowlers Olivia “Bong” Coo and Lita de la Rosa, boxing flyweight champion Erbito Salavarria and Asian Games athletics gold medalist Josephine de la Viña. “The committee discussed and voted for 10 nominees to form the third batch of Hall of Fame awardees based on their contributions to Philippine sports guided by the criteria set by the law,” ThomsonGuevara added. The Hall of Famers will receive incentives worth P100,000 as mandated by the law, according to PSC Commissioner Celia Kiram. The induction ceremony for the third batch of Hall of Famers is set on November 22 at 6 p.m. at the Philippine International Convention Center.
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ACQ BUNCIO of Suzuki-Wheeltek Racing Team— powered by Total Philippines—made history by clinching the first-ever Rookie Category of the Philippine Superbikes (PSBK) National Championships 2018 season on Sunday at the Clark International Speedway. The 18-year-old Buncio, the youngest in the grid, scored 37.5 and 33 in the pre-finals and finals to run away with the best rookie title with a total of 308.5 points, a feat that further cemented her status as the fastest lady rider in the country today. Runner-up BJ Ang finished with 168 points. As an icing on her cake, Jacq, using a Suzuki GSX-R1000R, also emerged second in the Pirelli Cup after an intense and head-on battle with strong competitor Pocholo Panlilio in the series consisting of six legs running under the 2018 National Motorcycle Championships. She also finished in the top 5 among her expert and master contenders. “I am humbled with all the support and love everyone has given to me for the whole season. No words can explain the hardships I’ve gone through for the past seven months of racing, but nevertheless the season was filled with lessons which I can use for future races,” said Buncio, who is also backed by Total Hi-Perf, KYT Helmet, Amaron Batteries, SSS Sprocket and Chains, SEC Motosuply, Augi Racing Boots, Galfer Brakes and G4 Buko Pandan. “To my family for always being my No. 1 fan, especially mommy and daddy for always having my back and helping me bounce back from the bottom. To Kuya Dashi Watanabe, you never doubted my capabilities in racing and I want to thank the whole Watanabe Racing Development for accepting me with open arms. And finally, thank you Lord for keeping me safe,” Buncio added. Buncio’s sister, Des, who used the only 600cc
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INCE losing to the Lyceum of the Philippines University Pirates on August 21, Javee Mocon and the San Beda Red Lions have been a team on a mission. The mission? To get back at the Pirates. “We will get back at Lyceum,” the graduating San Beda forward declared on live TV. And in their game before their final eliminationround showdown with the Pirates, the 23-year-old Mocon made sure to send a lasting statement to Lyceum—he tallied 24 points and 11 rebounds in San Beda’s 90-52 drubbing of the Arellano University Chiefs on Thursday. For this, Mocon was hailed as the Collegiate Sports Press Corps National Collegiate Athletic Association (NCAA) Player of the Week. But Mocon is hoping that the entire team would be going all out against Lyceum. “I hope everybody responds, we need
Monday, October 15, 2018
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TIGERS FEAST ON TAMS
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FAR Eastern University’s Arvin Tolentino engages University of Santo Tomas’s Joshua Marcos in a rebound battle. ALYSA SALEN
BUNCIO SISTERS HOG SPOTLIGHT
HERE’S no stopping University of Santo Tomas’s (UST) run as the young Growling Tigers mauled the Far Eastern University (FEU) Tamaraws, 78-70, in Season 81 of the University Athletic Association of the Philippines men’s basketball tournament on Sunday at the Mall of Asia Arena in Pasay City. Zachary Huang scored 20 points and grabbed six rebounds to lead UST to an elimination-round sweep of the favored FEU squad. The Tigers escaped with a 76-74 firstround victory last month. Marvin Lee also played a key role with his 17 points, five assists and two steals as the Growling Tigers leveled their record to 4-4 won-lost at the start of the second round. “We played well again. We executed our game plan. The boys showed their strengths because we really prepared for this,” UST Head Coach Aldin Ayo said. The first-year mentor for UST has his eyes on for the bigger prize.
ARCHER ON TARGET IN YOUTH OLYMPICS F
JACQ BUNCIO makes history by clinching the first-ever Rookie Category of the Philippine Superbikes National Championships 2018 season.
2007 model machine against bikes with bigger engines, made it a Sisters’ Act by winning the Pirelli Cup Heavyweight B championship. “I was afraid that I won’t be able to get enough points for the overall championship because of my leg injury during the fifth leg in Batangas,” said Des, who is also backed by Total Excellium, HJC Helmets, OZ Racing Apparels, Black Mamba energy drink, SSS Sprocket and Chains, AUGI racing Boots and SEC Motosuply.
The Buncio sisters’ success marks the big return of Suzuki on the superbikes racing scene with one of its top dealers Wheeltek Motor Sales Corp. The partnership aims to continue the unfinished business of the late and legendary Maico Buncio, one of the most decorated and fastest riders that the Philippines has ever seen. “Not even in my wildest imagination that these two girls of mine will achieve this level in this kind of sport,” said Yoyong Buncio, father of Jacq and Des. “Me and my wife Mylene didn’t think that they will embrace the sport that their late brother Maico left behind. We thought we have retired from this sport, but no one knew that these two girls will love the sport.”
Mocon eyes revenge vs Pirates, bags Player of the Week honors everything we’ve got to get back at the Pirates,” he said. The Red Lions already clinched a twiceto-beat advantage in Season 94’s Final Four, but decorated Red Lions Head Coach Boyet Fernandez wanted to close out their elimination-round campaign with a bang. “We will treat our final two games as playoff games. We will be ready,” Fernandez said. Mocon beat fellow Red Lion Robert Bolick, Letran’s Bong Quinto and JP Calvo and Lyceum’s CJ Perez for the weekly honor.
FUND-RAISER FOR KNIGHT
The Letran Alumni Association (LAA), headed by Rosalie Cruz, held a fund-raising campaign for former Letran Knight Jerrick Bala who underwent a brain surgery. The drive raised P110,500 that will be used for Bala’s recovery after the successful surgery. LAA Director and Sports Chairman Alex Wang presents the check to Balanza at the Uno Restaurant in Greenhills with members of the LAA Board of Council.
By Ramon Rafael Bonilla
“It’s still a long way to go. We’re not going to be contented with these wins. We’re going to continue working hard and compete,” Ayo added. The seasoned Tamaraws saw their threegame winning streak snapped by a bunch of neophytes. Ateneo wore down University of the Philippines (UP), 83-66, to regain the solo lead. Thirdy Ravena provided the numbers with 20 points, 10 rebounds and two steals as the Blue Eagles improved to six wins against two losses. With the victory, Ateneo broke a tie from the second-running Adamson University (5-2) and third place FEU (5-3). Tyler Tio chipped in 12 points and five assists, while Raffy Verano and Jolo Mendoza tallied 10 points apiece. From a 48-all deadlock in the last two minutes of the third period, Ateneo escaped with a 13-2 salvo with eight points coming from Mendoza. The Fighting Maroons unleashed mini runs, but their Katipunan neighbors protected their lead to the end. Bright Akhuetie topscored for UP with 20 points that went with eight rebounds. The Maroons fell to a 3-5 card. Despite facing a squad that dealt season favorites Adamson University and Ateneo a sound beating in the first round, UST, which has nine rookies on board, never faltered from the get-go as seniors Huang and Lee led a first-half attack that gave them a 37-33 advantage at the half. FEU’s Richard Escoto scored six of his 12 points in the third quarter and forge a 49-all count entering the payoff period. But Lee buried back-to-back triples in the first two minutes of the fourth quarter to spark an 8-3 rally. Huang hit a jumper to make it 65-54, the biggest lead of the game, with 3:57 left, and the Growling Tigers took care of business and fended off the comeback attempts of the Tamaraws in the waning minutes. Tolentino was the only double-figure scorer for FEU with 11 points that went with 11 rebounds. The Tamaraws dropped to their third setback in eight games.
ILIPINO Nicole Tagle got a consistent partner in Hendrik Oun of Estonia to advance to the quarterfinals of the mixed international team event of archery in the 2018 Youth Olympic Games in Buenos Aires, Argentina, on Saturday. Tagle and Oun defeated the lower-ranked duo of Isabela Bassi of Chile and Ravien Dalpatadu of Sri Lanka in a shoot off, 5-4, to set up a meeting with Alyssia Tromans-Ansell of Great Brittain and Reza Shabani of Iran in the succeeding phase of the Olympic-round format. “I have a good partner in Hendrik. To advance, we have to be consistent again in the next round,’’ said Tagle, who had a combined score of 19 points against the 17 points of Bassi and Dalpatadu in the shoot off. Tagle and Oun gave Bassi and Dalpatadu the first set of the 16-arrow four-set before seizing the next two frames for a 2-1 advantage to the delight of Filipino crowd that includes chef de mission Jonne Go and Josephine Joy Reyes, head of the Philippine Sports Commission’s medical and scientific athletes services department. Both of them, however, shot a pair of 7s in the final set, allowing their opponent to storm back by scoring 36 points to force the playoff. Ranked fourth in the mixed event, TromansAnsell and Shabani crushed Wian Roux of South
Africa and Himani Himani of India, 5-1, to also make into the quarterfinals. No. 13 in the rankings, Tagle and Oun will shoot 16 arrows in four sets during the quarters and hope that Tromans-Ansell and Shabani fumble along the way. The prized archer from Dumaguete City is aiming to follow the footsteps of Gab Moreno, the first Filipino to win a gold medal in the Youth Olympics after teaming up in a triumphant performance with Li Jiaman of China in the 2014 edition of the Games in Nanjing, China Tagle, silver medalist in the women’s recurve individual competition during the 2017 Southeast Asian Games in Kuala Lumpur, will again meet Tromans-Ansell in the women’s individual round of 16 on Monday (Tuesday in Manila). Christian Tio will again wait for the winds to blow strong at the Club Nautico San Isidro for the races to resume and improve on his performance in men’s kiteboarding. At fifth overall, the Filipino-Norwegian will miss the trip to the podium once organizers decide to cancel the races on the final day. Golfers Yuka Saso and Carl Janno Corpus fired a combined four-under 66 to join five other countries at 16th place at the start of the mixed team competition at the Hurlingham Club.
Rick Olivares bleachersbrew@gmail.com
Bleachers’ Brew
Bolts and Almazan pulling magic trick THAT 99-94 loss to NorthPort really hurts Meralco’s bid to advance to the next round of the ongoing Philippine Basketball Association (PBA) Governors’ Cup. The players who did a number on the Bolts are the locals—Stanley Pringle and Sean Anthony. The Bolts’ Allen Durham compiled monster numbers—a near triple double of 39 points, 19 rebounds and seven assists and got some support from Mike Tolomia, Chris Newsome and Cliff Hodge, but Meralco still fell to 1-6— ninth spot in the league. The Bolts played NLEX (4-4 won-lost) in a must-win game for both sides on Sunday night. Theoretically, the Bolts must win all four remaining matches for that chance to move on. But that isn’t entirely on them because their fate will also be decided by how other teams fare, as well. It has been rather difficult for the Bolts who, after winning their opening game of the conference, has been on a massive skid. The team also struggled, as well, during the Fiba Asia Champions Cup where it only won one match. During the recent Commissioner’s Cup, the team finished with a 7-4 record and lost to nemesis Barangay Ginebra in the quarterfinals in two matches. In the season-opening Philippine Cup, Meralco sported a 4-7 record—11th in the league, and didn’t advance to the quarterfinals. And that leaves me to wonder if this team needs to massively reload in terms of personnel. I know they are handicapped by the draft and players to affect a trade. But obviously, a super import like Allen Durham cannot tow the team to a title. This team needs help on so many fronts—size and solid inside players should be at the top of the shopping list—because right now, they have few top local players. That is for team management to figure out in the offseason that is rapidly approaching for them. With regards to other PBA ongoings, one item that has caught my eye is the sudden disappearance of Rain or Shine center Raymond Almazan. According to his agent, Danny Espiritu, Almazan asked him to call his team management that he’d miss practice. Now he has missed three matches. Luckily, ROS handed league-leading Ginebra a shock 104-97 loss. A win, of course, doesn’t make it any easier for the Elasto Painters. You can ambush teams once in a while, but not all the time. This isn’t the first time he has pulled this “stunt.” He has done this before when he was playing for Letran when he was literally absent for the entire preseason campaign of the Knights who were then under Louie Alas. They didn’t do too well and somehow, someway, Almazan was coaxed into coming back right before the start of the National Collegiate Athletic Association season that, if I recall correctly, also turned out to be the last for the coach’s sons Kristoffer and Kevin who opted out the next year. I remember the reason Coach Louie gave why his prized center took off and, well, it isn’t for public consumption. Recently, as well, Calvin Abueva also did the same with Alaska due to personal reasons. Unlike the Abueva situation where he was eventually let go by the team, am not so sure that ROS can or even should part with their temperamental center. Incidentally, his current ROS coach was also his college coach after Alas, Caloy Garcia. Let’s see where this goes. It could be something contentious or a footnote to an otherwise forgettable campaign.
CROAT UPSETS FEDERER Sports
By Sandra Harwitt
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HANGHAI—Borna Coric upset defending champion Roger Federer to face Novak Djokovic in the Shanghai Masters final on Sunday. Coric earned passage to the final by taking down the top-seeded Federer, 6-4, 6-4, in the semifinals on Saturday. “It was one of the best matches of my life,” Coric said. Coric said neck pain almost caused him to skip playing in Shanghai. “Today, really, I just came on the court with absolutely no pressure. I basically didn’t care, and that’s why I played so good.” The Croatian gave himself a third career shot at Djokovic. In their previous meetings, Coric failed to take a set off of Djokovic. The soon-to-be-No. 2-ranked Djokovic booked a final appointment after crushing No. 5 Alexander Zverev, 6-2, 6-1. Coric finished off Federer in style with the final two points an ace and a sizzling forehand crosscourt winner. Coric didn’t offer Federer a break point opportunity, while managing to break Federer’s serve in the opening game of both sets. In all, Federer presented Coric with seven break point possibilities. “He had more punch on the ball. He served better,” Federer said. “I got off to a bad start in both sets. That combination is plenty here in Shanghai with fast conditions.” Federer has won three titles this year— the Australian Open, Rotterdam, Stuttgart— but all of them were earned before the start of Wimbledon in July. Federer was asked several times on Saturday about his schedule for the remainder of the year, as well as for next year. He said he couldn’t offer any specifics but did offer a guarantee regarding 2019. “I wish I could tell you all these answers, but I really don’t know. But I will play tennis next year, yes,” he said. Coric, who is 2-2 against Federer, also beat the 20-time Grand Slam champion in their last outing at Halle in June. “Against that kind of player, you need something to hold on to,” he said. “I was holding on to that thought that I beat him the last time.” Djokovic’s win over Zverev and Federer’s demise guaranteed Djokovic will move up from No. 3 to No. 2 in the world rankings on Monday, which has him swapping positions with Federer, but still trailing Rafael Nadal. Djokovic’s serve has not been broken this week in 37 service games. He never offered Zverev a break point opportunity, and broke the German’s serve on four of six offerings. By the time Zverev was 6-2, 3-1 down, his emotions got the better of him after he hit a routine backhand into the net. He banged his racket on the court, then gave it another swipe before tossing the mangled implement into the crowd. Djokovic posted only nine unforced errors to 24 for Zverev. “I did everything I intended to do on my
Wang Qiang, the best Chinese women’s player in tennis with a ranking of No. 24, will play Ukrainian teen Dayana Yastremska for a third career title at the Hong Kong Open on Sunday. Wang posted two upset victories on Saturday by first finishing her rain-postponed quarterfinal against top-seeded Elina Svitolina and winning, 6-2, 6-4. The victory over the fifth-ranked Svitolina marked Wang’s first career win over a top-five player. Then, Wang upset fourth-seeded Garbine Muguruza, 6-7 (5), 6-4, 7-5, to earn passage into the final. Wang has been posting impressive results since mid-July. She won her first two Women’s Tennis Association (WTA) career titles at Nanchang and Guangzhou, and also was a semifinalist at Hiroshima, Wuhan and Beijing. Wang trailed Muguruza 4-1 in the final set, but showed determination to rally to win the nearly three-hour encounter. Yastremska reached her first career final after defeating 40th-ranked Zhang Shuai of China, 7-5, 6-4, in the other semifinal. The 18-year-old Yastremska is the sixth teenager this year and fourth born in this century to reach a WTA final. Yastremska was 1-6 in WTA main-draw matches this year before Hong Kong, but has won four consecutive straight-set matches to advance to the final. The 102nd-ranked Ukrainian’s best previous result at a WTA-level tournament was the Istanbul quarterfinals last year. Yastremska rebounded from a break down in both sets to come through against Zhang. Svitolina entered this week as one of five players still in contention to earn a place in the eight-player year-end WTA Finals in Singapore. She could still qualify for the WTA Finals, but would have to request and be granted a wild card to play a tournament this coming week to secure a place in Singapore.
BusinessMirror
The Associated Press
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| Monday, October 15, 2018 mirror_sports@yahoo.com.ph Editor: Jun Lomibao
Roger Federer walks past Borna Coric at the Shanghai Masters on Saturday. AP
end,” Djokovic said. “It’s all working and it’s been a couple of perfect matches.” Djokovic is targeting his 72nd career title here on Sunday. He has won all three of his previous finals in Shanghai.
Djokovic played his 1,000th career match against Zverev, and holds an impressive 827173 win-loss record. “I wouldn’t be so dedicated to this sport if I didn’t believe that I can achieve great heights,”
Djokovic said. “But you always have to kind of pinch yourself, particularly at this stage of my career, and be grateful, because I have had an awesome career so far.” He is on a 17-match winning streak and
is 26-1 in matches played since the start of Wimbledon. A win on Sunday would deliver a fourth title of the season to Djokovic, beside Wimbledon and the US Open.
PINOT WINS TOUR OF LOMBARDY
Mick Schumacher has eight wins on his way to the title in his second season with the PREMA Theodore Racing squad.
Thibaut Pinot grabs the first single-day classic victory of his career.
Schumacher’s son Mick grabs F3 European title
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OCKENHEIM, Germany—That’s one more racing title for the Schumacher family. Mick Schumacher, son of seven-time F1 champion Michael Schumacher, secured the Formula 3 European Championship title on the final weekend in front of a home crowd at Hockenheim. The 19-year-old German finished second in the second race on Saturday to reach an insurmountable 347 points. “It’s a slightly unreal feeling, I’m absolutely delighted,” Schumacher said. “All I can say is thank you to everyone in the team for your support during this incredible season.” Lewis Hamilton, who is closing in on his fifth F1 crown, is among former F3 title winners with a car powered by a Mercedes engine. The Australian Grand Prix, meanwhile, has taken its usual place at the top of the calendar for the 2019 Formula One season, with Melbourne to host the opening race on March 17 at Albert Park. World governing body FIA said following a meeting of its World Motor Sport Council on Friday that 21 races will be held next year, with 11 in Europe, five in Asia, four in the Americas and one in Australia. George Russell, on the other hand, will leave his role as reserve driver for Mercedes to take up a full-time seat with Williams in Formula One next season. The British-based team said on Friday it signed a “multi-year agreement” with the 20-year-old Briton. Russell leads the Formula 2 championship standings and is the test and backup driver at world champion Mercedes. He says racing in F1 “has been a life-long dream” and that “it feels surreal that I will now be lining up on the grid, alongside drivers whom I have admired for years.” Williams deputy team principal Claire Williams says Russell “is already highly regarded in the paddock and a driver whose career we have been watching for a while.” AP
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OMO, Italy—French rider Thibaut Pinot won the Tour of Lombardy on Saturday for the first single-day classic victory of his career. Pinot, who rides for the Groupama-FDJ team, left behind challenger Vincenzo Nibali with a solo attack 14 kilometers from the finish of the hilly 241-kilometer route from Bergamo to Como. Nibali, a two-time winner of the Lombardy race, finished second, 32 seconds behind. Dylan Teuns of Belgium crossed third, 43 seconds back. The victory caps a strong week for Pinot, who also won the Milano-Torino race on Wednesday. “Among the monuments [single-day classics], Il Lombardia is the nicest in my mind,” Pinot said. “I’ve always wanted to win it. I’m in the form of my life but to win ahead of Nibali is something very special.” Pinot also won two stages in the Spanish Vuelta last month and the five-day Tour of the Alps in April. Nibali was part of the elite attacking group
from the top of the Muro di Sormano onward. Dylan Teuns (BMC Racing) rounded off the podium with a sprint from the chasing group, 43 seconds down. Primož Roglič (LottoNL-Jumbo) kicked off the day’s festivities with a long-range attack on the Sormano. His attack provoked Nibali and Pinot into going, with the trio leaving the remains of the peloton behind as they crested the top of the climb. Egan Bernal (Team Sky) joined them after a fearless descent, and the four men enjoyed a 40-second lead as they hit the climb of Civiglio with 19 kms to race. Roglič and Bernal fell back on the climb, leaving just Pinot and Nibali up front. After several attempts to get away, the Frenchman managed to gap Nibali at the top of Civiglio, going solo with 14 km to the line. Nibali couldn’t offer a response, and it was game over as Pinot soloed to his first Monument victory just days after triumphing at Milano-Torino. Nibali was caught by the chasers in the closing kilometers, but managed to immediately strike out to take a solo second place. Nibali was philosophical after his second place, happy with the result after his lateseason plans were thrown into turmoil after suffering fractured verterbrae in a crash at the Tour de France. “The condition is what it is,” he said. “However, it grew just in time for Lombardia, which is a very beautiful race for me. I care about it but I couldn’t do more—Pinot was the winner in Milano-Torino and had a was in top condition like I was last year. “I still managed to get this good second place with the grit, which is important to me as an athlete. It’s a kind of redemption for all that has happened—a good success.” AP
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Life
Seven graces
EAR God, we come to thank You for the Seven graces promised by Mary by making a devotion to her Seven Sorrows. “I will visibly help them at the moment of their death; they will see the face of their Mother. I have obtained (this grace) from my divine Son, that those who propagate this devotion to my tears and dolors, will be taken directly from this earthly life to eternal happiness since all their sins will be forgiven and my Son and I will be their eternal consolation and joy.” May these Graces be given to all of us who are faithful and deserving to Jesus and Mary. Amen. GIVE US THIS DAY SHARED BY LUISA LACSON, HFL Word&Life Publications • teacherlouie1965@yahoo.com
BusinessMirror
Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com
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PILIPINAS Globe 2018 Michele Gumabao in Nat Manilag national costume design
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GRAND INTERNATIONAL FACEBOOK PAGE
TOTA PULCHRA MISS CHARLIZE
@misscharlize
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HE craziness that is our international pageant campaign started in a rousing way with the hometown triumph of our own Sharifa Areef Mohammed Omar Akeel as Miss Asia-Pacific International on October 5. The 2018 Miss Earth delegates, meanwhile, are currently in the midst of traveling the country for various prepageant competitions with the finals scheduled on November 3. From the Binibining Pilipinas fold, the first two to compete will be Michele Therese Imperial Gumabao at Miss Globe in Tirana, Albania, on October 21; and Eva Psychee Patalinjug at Miss Grand International in Yangon, Myanmar, on October 25. I caught up with the two “lovely, pretty, captivating, so exciting” girls at their send-off at the Novotel Hotel at the Araneta Center. Needless to say, Michele and Eva are ready and prepared to win their respective pageants. “The No. 1 thing I have to work on is mental. Once you’re there, you’re going to be alone and I’m psyching myself as of now to bring as much ammo as I can. I won’t be able to lean on anyone once I’m there. My family won’t be able to go so now pa lang, pini-prepare ko na sarili ko na maging mag-isa,” said Michele, 25, a professional volleyball player who also comes from a showbiz clan; dad is actor Dennis Roldan, aunt is
Isabel Rivas, and brother is the heartthrob Marco Gumabao. “I know I’m going to make friends there but, you know, at the end of the day it’s a competition and I don’t know who will be my friends and who will be my frenemies. I heard a lot of stories from past queens about girls who are overly competitive. I’m just preparing myself for anything to come and making sure that mentally, physically and emotionally I’m going to be prepared once I get on that plane,” said the De La Salle marketing management grad. Eva, 23, a nurse pursuing a law degree, explained: “Being a Filipino is already an advantage. ’Pag pumunta ka sa international scene, hinahanap talaga ang mga Filipinas, eh. ’Yung pinanghahawakan ko is the hope and dreams ng lahat ng tao who want to bring pride to our country. I’m really bringing that with me.” The Philippines has won Miss Globe once, in 2015, courtesy of the stunning Ann Lorraine Colis. Nichole Manalo was third runner-up in 2016 and Nelda Ibe emerged first runner-up in 2017. “Nelda told me to just be myself and to do my best in everything that I’ll do. ‘You know, who you are will radiate and they will see that.’ I was telling her that I’m nervous, I don’t know what to do and Miss Globe is only my second pageant. Sabi n’ya, ‘You did great in Binibini. Everybody will see who you are. You just really have to show everyone. Be friendly to everyone no matter what they do to you,’” Michele recounted. The Miss Grand is one crown that we have yet to win, with Nicole Cordoves’s first runner-up finish in 2016 the highest we have achieved so far. Eva, a Miss Cebu 2014 first runner-up and the 2014 Mutya ng Pilipinas-Asia Pacific International, is “psyched” to clinch the crown. The future politician said,
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THE PERFECT MATCH FOR THE MANY LIVES OF ANGEL LOCSIN THE various bags on offer under the Avon Fashions x Angel Locsin collaboration.
Monday, October 15, 2018
Natcos and cosplay
NICCOLO COSME/EUGENE HERRERA
BINIBINING PILIPINAS Grand International Eva Psychee Patalinjug in Philipp Piezas Tampus national costume design MISS
ALL ACCESS: PHILIPPINE CINEMA TAKES CENTER STAGE IN BUSAN D3
FOR over 40 years in the Philippines, global lifestyle brand Avon has been empowering women through beauty and entrepreneurship. This is a commitment that extends to its fashion category, embracing design with a purpose and producing fashion pieces that enable women to achieve more than just impeccable style. “In the many campaigns we’ve done, we have always made sure that our products not only respond to the practical needs of women but also appeal to their stylish selves, as well,” says Agnieszka Isa, Avon Philippines executive director for commercial marketing. She refers to a past partnership with acclaimed designer Rajo Laurel, who helped Avon create a collection of accessories that were both chic and practical. “This year, we’re keeping the tradition with the help of an artist who also happens to be the perfect role model.” Created in collaboration with one of Avon’s stellar celebrity ambassadors, the Avon Fashions x Angel Locsin collection bears the same carpe diem attitude that makes Angel such an icon for women. Each piece was designed to help women organize, hence making it easier to be a go-getter like Angel. After all, it’s easier to make the most out of every
opportunity when one is on top of everything, The three bags were inspired by three very distinct facets of Angel Locsin. ANGEL, THE SHE-EO. If there’s one thing Angel does best, it’s handling her time well. She knows that every hour is an opportunity, and she does her best with it—and she needs a bag that can handle all without needing a change. The Angel Locsin Everyday Bag transforms between a tote and a sling, in a classic color that can match any outfit. It has an adjustable strap, and enough room to cover the whole day. ANGEL, THE SCREEN ICON. It takes more than just looks to thrive in showbusiness, and Angel knows this by heart. The Angel Locsin Sling Bag holds all her essentials in a stylish little package. Its three compartments make it easy to organize, while the chic red leatherette ensures that she’s stylish, wherever the shoot may take her. ANGEL, THE RENAISSANCE WOMAN. Even outside work, Angel sees to it that she takes every chance to experience something new. The Angel Locsin Backpack has room for a variety of activities, and keeps her hands free while she’s at it. The drawstring closure adjusts to every situation, and the zipped pockets keep essentials within easy reach. It even comes with a matching wallet. The Avon Fashions x Angel Locsin collection will be available in October through any Avon representative or AvonShop.ph. Want to order Avon on-the-go? Download the Avon Brochure application from the Google Play or App Store to start browsing the brand’s latest brochure. The app will connect you to a nearby representative, so you can enjoy personalized service.
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Today’s Horoscope By Eugenia Last
CELEBRITIES BORN ON THIS DAY: Vanessa Marcil, 50; Emeril Lagasse, 59; Sarah Ferguson, 59; Penny Marshall, 75. HAPPY BIRTHDAY: Look at the possibilities. Refuse to let negativity slow you down. Concentrate on being proactive and doing whatever you can to make your surroundings conducive to productivity. Listen to those with experience, but don’t succumb to pressure and forgo your plans and what you really want to do because of what others say or demand. Do your own thing. Your lucky numbers are 3, 12, 22, 29, 38, 45, 47.
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ARIES (March 21-April 19): Stick to the people you know and trust. Being a team player will help you overcome any challenges that come your way. Change begins within, but a group effort adds strength and a better chance to reach your goal. HH
Uashmama opens first store in Manila T
HERE’S a new Italian kid in town. It’s called Uashmama (read as “wash-mama”), a lifestyle brand that crafts beautiful paperbags and various styles of clutches, hand bags and backpacks made from an innovative “washable paper” material. Made from cellulose fiber that’s stretched and tanned to withstand washing and daily use, “washable paper” has the look and feel of authentic leather but with the weight of paper. It’s strong and light at the same time, which makes it easy to wash and fold. The material is flexible enough to be turned into handsome products, but is firm enough to withstand years of use. While Uashmama entered the Philippine market three years ago (exclusively distributed by INEXPH) through an online shop and pop-up bazaars, the brand found a loyal following among discerning locals. In August Uashmama opened its first-ever store in the country. Located at the Shangri-La Plaza in Mandaluyong
City, the store features freshly designed products. Aside from the good-looking bags, the brand will soon introduce a new line of home products that’s sure to excite the local market. The store’s look and feel is consistent with the other Uashmama stores in other countries (Italy, Australia and Poland). The minimalist look is characterized by elements in natural wood and iron. It is clean, linear and modern, yet warm and inviting. Plants adorn the shelves to complete the overall natural vibe. Proudly made in Italy, products are distributed in various parts of the globe today, thanks partly to an increasing number of shoppers who prefer more artisanal products and handmade items. These days, consumers seem to shun mass-produced items, choosing instead to embrace products that are more personalized, one-of-a-kind and environment-friendly. The “washable paper” is a rather interesting material. Vegan fats are used to make it more resistant, while vegetable
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TAURUS (April 20-May 20): Consider what you want and how to proceed. Don’t let anger be your motivator. Follow through for the right reason; you will get the most out of the changes you make. Personal improvements and romance are favored. HHHHH
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GEMINI (May 21-June 20): Consider what you know to be true and false. Look for compromise when dealing with people who are confused or inconsistent. Don’t give anyone reason to interfere in your affairs. HHH
dyes are used to color them. Highly skilled artisans use a combination of traditional instruments (including century-old stone rolls) and modern technology to create the products. In other words, the entire process, from sourcing to production, has always reflected respect for both people and the environment. To celebrate the store opening, Uashmama has partnered with interior stylist and lifestyle blogger Marilen Montenegro, who will conduct free one-one-one styling sessions with the first three customers who will purchase P20,000 worth of products. Marilen’s portfolio as a successful interior stylist includes private residences, condos and luxury resorts. She’s a lifestyle blogger with a keen sense of aesthetics and a mother who understands the importance of function and practicality. Uashmama decided to collaborate with her as she is also an advocate of all things natural, simple and beautiful. n
Natcos and cosplay Continued from D1 “I’m being proactive in doing my trainings, going to designers for my wardrobe because at Miss Grand, gusto ko bongga lahat! I’m [practicing my] my pasarela, my communication skills and all aspects for me to be able to do my best in this once-in-a-lifetime opportunity. Kasi, ’di ba, finally I get to represent our country!” Miss Grand, as some pageant observers have noted, is like Miss Universe during its campy heights, and Eva will be able to adjust to its “requirements.” She added, “I’m improving from my performance at Binibini. I’m more prepared, more confident. Parang hindi na ako natatakot kasi ’yung preparations ko sa Binibini I think mas mahirap pa.” Michele, however, doesn’t know what to anticipate. “I don’t know what to expect once I get there. Miss Globe is known to change. It’s very unpredictable. So I’m just trying to strengthen all facets of being a beauty queen. From my walk, which I will continue strengthening; how I speak, how I conduct myself in front of other people; to always remembering how to be a beauty queen and not an athlete,” said the ABS-CBN Sports+Action host. What we have expected, and are impressed by, are the fantastic national costumes our candidates have flaunted in all their finery. “I just want something that will represent a beauty queen, a Filipina and myself. It’s not going to be a warrior or anything tribal because I want it to look traditional and modern at the same time. I want it to be Filipiniana still. Just like in Binibining Pilipinas, I want to exude the power behind the Filipina and I want to show that through my national costume,” Michele said of her
dress designed by Nat Manilag. “It’s a sheer tulle pencil-cut with knee-high slit and ballskirt train modern Filipiniana fully embellished with hand-embroidery details inspired by the golden sarimanok,” explained Manilag. “It’s accesorized with a sarimanok headdress and handcuffs encrusted with Swarovski crystals and real chicken feathers.” Fellow Cebuano Philipp Piezas Tampus is Eva’s go-to designer. “My natcos is fit for Miss Grand kasi grand, eh. My inspiration will be the ever-elusive golden crown, as well as for my evening gown. Ever since si Philipp talaga ’yung designer ko,” a grateful Eva shared. “But a lot of very famous designers will be helping me with my wardrobe, as well. I’m very thankful for their love and support.” Tampus, fresh from a solo gala at the Waterfront Hotel in Cebu, described his creation as “a fully sequinned tulle bodice, in matte gold and cream. The tassels are made of clear acrylic oval and long beads para mas light. My inspiration is the palm coconut tree, as you will see on the bodice details and patterns. The clear, long drop tassels represent the coconut tree’s versatility, where every part is useful.” Besides Tampus, Rocky Gathercole is another Filipino designer showcasing his creative streak at the Miss Grand stage. He created the charming Hello Kitty maillot, kimono sleeves and thigh-high hose for Miss Grand Japan Haruka Oda. “Haruka was looking for a designer for her natcos. Then [shoe designer] Jojo Bragais, who happens to be my very good friend, told her about me. When we met in Manila, I told her I wanted to do something inspired by Harajuku cosplay,” Gathercole recalled. “She readily agreed with my idea and I did the costume in two weeks. We had a one-time fitting with no repairs.” n
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CANCER (June 21-July 22): A new or different approach when dealing with youngsters, seniors or anyone in between will help you get your way. It’s how you go about getting others to see things your way that will make the difference. HHH
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LEO (July 23-Aug. 22): Pick up the pace and take care of your responsibilities before someone complains. Don’t expect everyone to agree with you or to lend a helping hand. Avoid excessive behavior and unrealistic demands. Moderation is your best option. HHH
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VIRGO (Aug. 23-Sept. 22): Take the plunge and forge ahead with confidence. You can bring about positive change and impress onlookers with your fortitude, intelligence and common sense. Personal growth will lead to options you hadn’t considered in the past. HHHHH
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LIBRA (Sept. 23-Oct. 22): Don’t wait for someone else to do things for you. Take the initiative and you’ll get things done your way. A change to the way you live or your income will need to be handled carefully. HH
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SCORPIO (Oct. 23-Nov. 21): You need to get out more. Engage in events that offer knowledge, interaction and keep you current with the latest technology. Rub shoulders with people who share your interests. Put your energy into advancement, not anger. HHHH
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SAGITTARIUS (Nov. 22-Dec. 21): Keep plugging away until your responsibilities are taken care of. If you linger too long over something that doesn’t really matter, someone you need will withdraw the help that was offered. HHH
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CAPRICORN (Dec. 22-Jan. 19): The personal and professional changes you make will lead to some interesting days ahead. Keep a close watch over how others perform, and learn from what you observe. Progress will be accomplished, and your reputation will get a boost. HHH
k
AQUARIUS (Jan. 20-Feb. 18): Listen, observe and evaluate, but don’t follow someone’s lead based on hearsay or peer pressure. Times have changed, and you’ll be led down a very different path if you aren’t careful. Inconsistency and indulgence are best avoided. HHH
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PISCES (Feb. 19-March 20): Line up your allies and prepare them for the plans you are trying to put into play. Don’t fear taking a position of leadership or looking out for your best interests. HHHH MISS GRAND JAPAN 2018 Haruka Oda in Rocky Gathercole national costume design
ROCKY GATHERCOLE FACEBOOK PAGE
BIRTHDAY BABY: You are ambitious, energetic and changeable. You are original and insightful.
‘making donations’ BY TIMOTHY E. PARKER The Universal Crossword/Edited by Timothy E. Parker
ACROSS 1 Diluted? Not at all 5 Depicts unfairly 10 Word with “we forget” 14 With an active fleet 15 Tinker Bell kin 16 St. Louis attraction 17 Bog moss 18 French wine valley 19 Indisputable 20 Do some nursing 23 Shaver’s mishap 24 To the point 25 Move from side to side 28 Big name in baseball cards 31 Biblical twin 32 Make really happy 33 Wee drink 36 Is on the riot squad 40 It can turn syrupy 41 Pouts all about 42 Close friends 43 Follows the rules 44 Online newsgroup system
6 Lickety-split, way old 4 49 Joust verbally 50 Make deals? 57 Flat-topped hill 58 Poultry delicacy 59 Horn sound 60 Treated a sprain 61 Brunette? No 62 Like a weak joke 63 Some holidays in 26-Down 64 Salt and gold producers 65 Cast-of-thousands movie DOWN 1 Daddy alternative 2 Like yard sale stuff 3 Copier paper unit 4 Relishing and how 5 Do a film editing chore 6 Stall in the mall 7 Way off the turnpike 8 Electricity carrier 9 Future revealer 10 Beard softener 11 Fielding gaffe
2 Short tails 1 13 “We hold ___ truths...” 21 Zip on a soccer field? 22 Work a handlebar 25 Ties the knot 26 Where Bhutan is 27 Suddenly inhale 28 Escapes 29 “Bonny” person 30 Relative of “et al.” 32 See from a distance 33 Magnificent bird 34 Not busy 35 Whispered interjection 37 Burning coal bit 38 Fish eggs 39 Like working machinery 43 Groups of eight 44 Overturns 45 Squid’s ink holder 46 Allow in 47 Fragment 48 Thing worth something 49 Georgia mountain
1 Weapon in a silo (abbr.) 5 52 It’s near Java 53 “...___ a midnight dreary...” 54 Bring in a crop 55 God head? 56 Blueprint particular
Solution to Friday’s puzzle:
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Monday, October 15, 2018
Philippine cinema takes center stage in Busan JASON ABALOS, Rayver Cruz and Kris Bernal of Asawa Ko, Karibal Ko
NEW GMA DRAMA REVEALS NEW FACE OF INFIDELITY
WHAT if the person you loved the most is also the one who will bring you the greatest pain? Beginning October 22, GMA brings viewers a different face of infidelity with its newest afternoon series, Asawa Ko, Karibal Ko. In the soap, Kris Bernal plays Rachel, whose biggest dream is to have a happy family. When she falls in love with and marries Nathan, a smart businessman from a political family, her dreams seems to be well on its way to becoming a reality. But Nathan is unhappy and feels trapped. He has always known he’s gay, so he devises a way to fake his death to escape abroad bringing his daughter with him. He undergoes sexual reassignment and facial feminization surgery in order to fully embrace the woman inside him. He left without knowing Rachel is pregnant with their second child. Rachel, believing Nathan to be dead, returns to the province to give birth. Years pass and Rachel meets the good-looking balikbayan Gavin, played by Rayver Cruz in his very first drama series in his return to GMA. Rachel falls for him instantly but her prospect of happiness is met with a big blow when she discovers that he’s engaged to a mysterious and strikingly beautiful woman named Venus (Thea Tolentino), also a single mother who ostensibly got pregnant from a previous relationship. Rachel feels that something isn’t right with Venus. Eventually, she discovers the truth: Venus is a sexually reassigned woman who is no other than her former husband, Nathan. This is the intriguing and captivating premise of Asawa Ko, Karibal Ko, which also stars Jason Abalos as Nathan, Lotlot de Leon, Devon Seron, Annalyn Barro, Caprice Cayetano, Jean Saburit, Ricardo Cepeda, Maricris Garcia, Matthias Rhoads and Phil Noble. The soap is directed by Mark Sicat de la Cruz, with Roy Iglesias as creative director, Marlon Miguel as concept creator, and Richard Cruz as head writer. The soap is created by GMA Drama Group under the supervision of Senior Vice President for Entertainment Group Lilybeth G. Rasonable. Asawa Ko, Karibal Ko airs from Monday to Saturday beginning October 22 after Eat Bulaga.
ALL ACCESS RICKY GALLARDO
rickygallardoTFI@gmail.com
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HE Philippines was the “country of focus” at the recently concluded Busan International Film Festival (BIFF). Ten days. Nineteen Filipino films. A record-setting 60-member Philippine delegation headed by hardworking Film Development Council of the Philippines (FDCP) Chairman Liza Diño-Seguerra, who is so well-loved by the Korean organizers headed by BIFF Chairman Yong-Kwan Lee, international festival heads and A-list cinema representatives from all over the world. In Busan the FDCP head attended her very first meeting as official member of the board of directors of the Asian Film Commissions Network, a high level group of professional film commissions and support agencies in Asia. Diño-Seguerra also represented the Philippines in a major meeting with Asean film commissions led by the Korean Film Council Head Seok Geun-oh. The meeting aimed to strengthen the Asian film industry and find opportunities to establish a collaborative system among its members. Actors Joel Torre, Christopher de Leon and Sandy Andolong walked the red carpet on opening night. Torre flew to Busan for Mike de Leon’s Bayaning 3rd World, de Leon represented Eddie Romero’s Ganito Kami Noon, Paano Kayo Ngayon?, Mario O’ Hara’s Tatlong Taong Walang Diyos, Chito Roño’s Dekada ’70 and Lino
Brocka’s Cain at Abel. Andolong was there for Marilou Abaya’s Moral. These classic movies were part of the BIFF’s special program on the Philippines, billed as “Cinema as a Response to the Nation.” A commemorative book with the same title was launched in simple rites with respected cinema authorities Tito Valiente, Nick de Ocampo and Teddy Co signing the limited-edition copies. Piolo Pascual missed the red carpet during the opening night but his star shone brightest when he was bestowed the Marie Claire Asia Star award at the Haeundae Grand Hotel. Popular Korean star Nam Joo-kyuk won the Rising Star Award. Pascual was accompanied by good friend and Spring Films coowner Joyce Bernal. Another highlight of the BIFF was the awarding of Bianca Balbuena-Liew as the Asian Film Commissions Network Producer of the Year. Her husband, Malaysian filmmaker Bradley Liew, was beaming with pride when his pregnant wife received her trophy. GMA star Max Collins also brightened up the festival. She was there for Mike de Leon’s Citizen Jake, which was part of the Window on Asian Cinema section of the festival. Fresh from bagging the special jury prize at the San Sebastian International Festival last month, Brillante Mendoza’s Alpha: The Right to Kill was also included in this section. He was with Solar Films top honchos Wilson Tieng and Butch Ibañez, line producer Carlo Valenzona and actor Vince Rillon. The BIFF also screened the omnibus
three-in-one film of Mendoza, Lav Diaz and Kidlat Tahimik, titled Lakbayan (Journey). The septuagenarian Tahimik made heads turn when he walked in his native Ifugao tribal costume. Diaz was a no show. Also spotted in Busan was Cebu’s pride Nats Sitoy, who had many shining moments as the lead star of the Japanese film Itoshi No, Irene! and another Cebuano filmmaker, Remton Zuasola, whose award-winning film Damgo Ni Eleuteria was screened. Christian Bables, the lead actor of Chito Roño’s Signal Rock, flew in a day before we left Busan. He said it was his firstever international film festival. We told him that with his promising talent, Busan will definitely be only the first of many. We also saw Regal Films producer Roselle Monteverde and actor-director Eric Quizon during the Philippine Night. Philippine Ambassador to Korea Raul Hernandez was the special guest of honor. We bumped into Jeffrey Sonora of FPJ Productions, Prof. Edward Cabagnot of the College of Saint Benilde and Madonna Tarrayo of Unitel Productions. Accidental actress Iana Bernardez of I Love You with My Hypothalamus fame was also in Busan with her director Dwein Baltazar. All smiles were filmmakers Alec Figuracion, Dan Villegas, John Paul Su, Antoinette Jadaone, Ryanne Murcia, Sigrid Bernardo and Sari Dalena. We had the chance to meet promising Filipino youngbloods who are currently studying in Busan, among them Cesca Lee, Petersen Vargas and Jarrel Serencio. Busan was a huge success for Philippine cinema, one of many highlights as we start celebrating its 100th year. Mabuhay. n
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D4 Monday, October 15, 2018
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MAYBELLINE brand ambassador Liza Soberano puckering for new The Creamy Mattes.
A conditioner that reverses damage in 1 minute? AND THEN SOME DINNA CHAN VASQUEZ @dinnachanvasquez luckydinna@gmail.com
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NCE you’ve colored, bleached, heat-styled and/or permed your hair, you have reached the point of no return. Your hair will never go back to its original state—ever. I used to have hair so straight that it couldn’t hold a barrette or a scrunchie. Now, it alternates between curly, frizzy and just plain unruly. My hair seriously seems to have a life of its own, so I rely mostly on expensive conditioners and a straightening iron. And it may seem gross to a lot of people but not washing my hair every day is what still keeps it healthy after everything I’ve done to it. Thus, I’m always on the lookout for any product that might help the situation but also always skeptical about bold claims because I usually end up disappointed except for one or two brands, including Aveda (which I really love). Many of us have abused our hair and scalp so much that we need the best products available in the market. I have reached the conclusion that it’s possible to scrimp on shampoo, meaning you can buy the less expensive ones, but not on conditioner. Dove 1-Minute Serum Conditioner is the brand’s most potent formulation yet. The brand claims the conditioner combines the transformative power of serum capsules with its best damage technology, Keratin Repair Actives, to undo a year’s worth of hair damage in just one minute. “The truth is that women don’t have minutes to spare for conditioning their hair. These days, they want something fast that delivers good results. They want a premium conditioner that they can afford, one that isn’t priced out of their range,” said Ann Esteves, Unilever Philippines marketing director for hair.
PARTNERSHIP FOR LEVELING UP YOUR WARDROBE
NOW is the perfect time to upgrade your wardrobe—and global financial brand Citi and online retailer Zalora are happy to help out. Get Zalora e-Gift Cards when you shop at 0% Citi PayLite (www. citibank.com.ph/paylite) on or before October 31, with the gift cards redeemable until January 1, 2019. A minimum single-receipt PayLite spend of P10,000 at any partner-merchant brings a P500 gift card, while a P1,000 gift card comes with every minimum single-receipt spend of P25,000. Cardholders who qualify will receive a claim code via e-mail. The code should be entered into the Citi cardholder’s Zalora account via the retailer’s mobile app or online.
“Dove 1-Minute Serum Conditioner offers repaired, recovered and more resilient hair in 60 seconds,” said Nicole Ty, Dove hair assistant brand manager. The serum capsules in the new conditioner contain nourishing oils, such as Argan Oil, Almond Oil, Coconut Oil, Sunflower Seed Oil and Vitamin E. The effects of these oils are further enhanced by Dove’s damage repair technology, Keratin Repair Actives, which replaces broken bonds in hair to further strengthen and fortify weak and damaged hair. “It goes deep and is able to penetrate 10 layers into the hair in just one minute,” said Esteves. I’ve already used the Nourishing Oil Care variant of Dove 1-Minute Serum Conditioner three times and the results have been quite good. In fact, the results have exceeded my modest expectations. The Dove 1-Minute Serum Conditioner is available in three variants: Intense Repair, Hair Fall Rescue and Nourishing Oil Care; and is available in all leading supermarkets, department stores and drugstores nationwide, plus from online retailers. Meanwhile, top drugstore brand Maybelline recently bared 10 new shades of its best-selling The Creamy Mattes lipstick. To add to its collection of 20 lipsticks, the brand now offers 10 fresh shades of The Creamy Mattes in skin-flattering reds, nudes and pinks. From the 10 new shades, these are Maybelline brand ambassador Liza Soberano’s top picks: n Mysterious Mocha, a warm brown-nude perfect for an everyday natural look. n Bold Crimson, a classic matte red that suits all skin tones. n Lively Violet, a muted cool pink that’s universally flattering. The other shades ranging from neutral to bold hues are: n Barely Nude, a light peachy nude. n Dare To Be Red, the perfect scarlet shade. n Big Apple Red, a bright warm red. n Pop of Pink, a warm cotton candy shade. n Flaming Fuchsia, a striking hot pink. n Madly Magenta, a warm pinkish-purple hue. n Rock The Coral, an electric warm pink. The Creamy Mattes are now available nationwide. n
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Monday, October 15, 2018 E1
GREAT EMPLOYEES WANT TO LEARN.
GREAT MANAGERS KNOW HOW TO TEACH.
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By Daniel Dobrygowski
S workers get more used to a fluid workplace, where longevity in one firm isn’t the goal and developing a portfolio of skills is more important, managers who can offer learning opportunities will be in high demand. Having started my working life as a high-school teacher, I’ve continued to find success when I use my teaching style to lead teams. Reflecting on how I’ve managed cases and projects, there are three traits which all good teachers share and managers in any field can learn:
sponsibility to communicate organizational goals clearly, it’s also the boss’s obligation to listen to employee’s personal goals and, where they align with the overall mission, support them and help build the skills necessary to achieve those shared goals.
goals and communiand build your team’s 1Define cate them clearly. 2Identify skills. Every year, a teacher has to develop a plan for where the class will be at the end of the year with concrete steps for how to get there. The same is true for any organization—you need to have clearly articulated goals that serve a greater mission. Just as it’s the manager’s re-
The ability to understand and build skills is the core of effective teaching and a key management responsibility. A manager can’t lead a team if she doesn’t know what skills are needed to accomplish a goal and if she doesn’t know what the team is good at. It is vital to discuss the skills
Where are the male allies in US politics?
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By David G. Smith & W. Brad Johnson
HE problem of the silent—and therefore tacitly complicit—man festers at the root of America’s ubiquitous workplace sexual harassment and gender exclusion issues. Reasons for male silence are legion, but most often relate to a lack of awareness about the experiences of women at work, ignorance concerning the rarity of false accusations from women about sexual assault, flat-out apathy or cowardice about backlash from other men. Publicly supporting a woman in this situation can feel risky, particularly among men with a fragile sense of masculinity. Where should we begin efforts to break the cycle of male silence and collusion? Start with a few good men. Marine Corps General Glenn Walters recently testified before the Defense Advisory Committee on Women in the Services and observed, “What I’m encouraged by is that some of the [harassment] reports are being generated by male Marines who are seeing another [male] Marine doing something wrong.” He added: “It’s not a significant number. It’s probably in the 8-percent range. But that’s 8 percent that we didn’t have.” This small core group of men actively promote gender fairness and equity in the workplace through supportive and collaborative personal relationships with women. They also demonstrate allyship through public acts of sponsorship and advocacy. These are men who appear to have an awareness of how gender bias creates workplace inequities. They act with conviction and in the face of real social and political backlash. Male-to-male peer pressure is often a powerful—and persistently neglected—source of influence. When a cohort of male allies call out sexist or harassing behaviors, both men and women are more likely to report sexual harassment or check sexist behavior. Women also report more selfconfidence, higher self-esteem and less sex stereotyping when male allies are present in the workplace. Perhaps Congress can take a lesson from the Marine Corps’s “8 percenters.” Let’s identify the fledgling cohort of male allies on Capitol Hill, and recognize and honor these insiders who can leverage their understanding to redefine norms. David G. Smith is a professor of sociology at the United States Naval War College. W. Brad Johnson is a professor of psychology at the United States Naval Academy, and a faculty associate at Johns Hopkins University.
and knowledge necessary to achieve success with your team and to understand, through discussion or through past experience what skills team members have and what skills they need to develop. It’s also important, if employees are look-
ing to build their own portfolio of skills, to ensure that they have opportunities.
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Create opportunities for growth. When an employee
says she is looking for a manager
she can learn from, the employee is implicitly saying that she values opportunities for growth. No one wants to feel stagnant or like they’re not achieving anything. Good teachers, and effective leaders, help those under them grow by giving effective
6 ways to build a customer-centric culture
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By Denise Lee Yohn
HY do so many companies struggle to get customer-centricity right? The most common, and perhaps the greatest, barrier is the lack of a customer-centric organizational culture. To build one, business leaders should take six actions:
of US consumers say the employees they interact with understand their needs.
2
Hire for customer orientation. From
the very first interaction with prospective employees, organizations should make thinking about customers and their needs a clear priority.
customer empa1Operationalize thy. 3Democratize customer insights. Empathy is one of those buzzwords that sounds really good, but very few companies actually understand what it means, much less practice it. Essentially, customer empathy is the ability to identify a customer’s emotional need, understand the reasons behind that need and respond to it effectively and appropriately. And it’s pretty rare. According to PwC, only 38 percent
For every employee to adopt a customer-centric mindset, every employee must understand the organization’s customers. Adobe Systems has opened up access to customer insights for all employees. The company created a new department, a combined customer and employee experience team, to facilitate customer understanding. It set up listening stations where employees can go, either online
or in an Adobe office, to listen to customer calls.
4Facilitate direct interaction.
Companies need to develop ways for employees to interact with customers directly, even in “back office” functions. Leaders can help facilitate interactions by letting employees observe focus group, sales and support calls; customer visits, ride-alongs and cocreation labs; and allowing them to participate in customer events like advisory board meetings and industry conferences.
employee culture to customer 5Link outcomes.
The adage “You can’t manage what you don’t measure” applies to customercentricity, too. Managers will be motivated and equipped to cultivate a customer-centric culture if
constructive feedback and by fostering a growth mindset. Daniel Dobrygowski is the head of governance and policy at the World Economic Forum’s Center for Cybersecurity.
they know if and how it impacts results, so organizations should ensure they establish and track the link between culture and customer impact.
6Tie compensation to the customer.
Organizations should reinforce a customer-centric culture through their compensation program, because everyone is working toward the same goals. Company leaders are starting to recognize that culture and strategy go hand in hand. Only when customer-centric strategies are supported and advanced by culture will a company realize its customer-centric vision. Denise Lee Yohn is a leading authority on positioning great brands and building exceptional organizations.
How Mount Sinai fosters collaboration to fight cancer By Joel Dudley & Samir Parekh
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RECISION cancer medicine—sequencing a patient’s DNA in order to customize cancer treatments—shows promise, but is very much in its infancy. It’s still not nearly precise enough to launch a winning battle against many forms of cancer. To dramatically advance in this field, clinicians, medical researchers and computer scientists must substantially deepen their collaboration. By taking advantage of Mount Sinai Health System’s collaborative freedom, we are using advanced computer analytics to effectively treat some of the most challenging cancers, those that affect the blood
© 2018 Harvard Business School Publishing Corp. (Distributed by The New York Times Syndicate)
and bone marrow. Cells from these cancers are highly heterogeneous, arising from different genetic drivers, each of which may or may not respond to a particular medicine. While solid tumors, like lung cancers, often respond well to treatments selected based on an analysis of the tumor’s DNA, such analysis cannot provide the information needed to effectively target blood cancers such as multiple myeloma. To unmask the genetic anomalies that are specific to multiple myeloma and that could guide treatment, our teams at the Icahn School of Medicine at Mount Sinai collaborated to map both DNA and RNA signatures of multiple myeloma tumors. It quickly became clear that the task would require a large amount of
dedicated computing power. Our Institute for Next Generation Healthcare created a dedicated server for the multiple myeloma research and a customized software program to get the job done. RNA analysis turned out to be far more helpful than DNA sequencing. Of the 21 evaluable patients in our study, 11 received a personalized drug based upon RNA profiling, two received a drug based on both RNA and DNA and eight received a drug based on DNA. This is remarkable because the vast majority of diagnostic companies and oncologists using genetic analysis are studying only patient DNA, not RNA. As we embrace a new paradigm—treating cancers based on multiple genetic drivers rather than
histology (cell structure)—academic medical centers should loosen their hierarchies and clear the way for computer scientists to deepen their collaborative efforts with oncologists, pathologists and geneticists to look beyond DNA sequencing. Joel Dudley is associate professor of genetics and genomic sciences and director of the Institute for Next Generation Healthcare at the Icahn School of Medicine at Mount Sinai. Samir Parekh is associate professor of hematology and medical oncology at The Tisch Cancer Institute of the Icahn School of Medicine at Mount Sinai.
E2 Monday, October 15, 2018 • Editor: Efleda P. Campos
Education BusinessMirror
NG, Unicef launch ‘Situational Analysis of Children in PHL’
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VER the past decades, the Philippines has made significant strides toward realizing child rights, especially since the ratification and commitment to realizing the Convention of the Rights of Children in 1990.
Infant mortality was reduced from 41 to 21 per 1000 live births and under-5 child mortality from 59 to 27 between 1990 and 2015. While this represents positive developments, more intense work is needed to further reduce infant and child mortality targets of 15 and 22, respectively. Despite progress, however, many of the country’s 40 million children are deprived of their basic rights. Filipino children are still facing multiple and deep-rooted deprivations and vulnerabilities that impede their survival, development, protection and participation, according to the latest Situation Analysis of Children in the Philippines summary report based on data gathered in 2017, launched today by the Philippine government and the Unicef. Assistant Secretary Carlo Bernardo O. Abad Santos of the National Economic and Development Authority (Neda), representing Secretary Ernesto Pernia, congratulated Unicef for the initiative and support in putting together the Situation Analysis. “The spirit of partnership, especially with Unicef, is invaluable in ensuring enabling
environment for the children to achieve their full potential.” The Neda was Unicef’s key partner in conducting the research along with a large number of line departments. “Let us join hands together to support and protect our children against any form of violence, rights violations and deprivations, especially on these their tender years,” said Assistant Secretary Glenda Relova, speaking in behalf of DSWD Secretary Virginia Orogo. “The Situation Analysis will guide the Philippines to address key issues, such as how to channel the dividends of economic growth to every Filipino child–especially the 1 in 3 living in poverty and those who fall off the radar for living in remote, marginalized communities or due to their social-economic, religious, ethnic identity. The report offers a framework for a wide range of issues affecting children, so we are able to support the government to improve the systems and services to reach children in need,” said Lotta Sylwander, Unicef Philippines representative. “Unicef as always is ready to support the
Muntinlupa extends P5-million scholarship fund for Marawi students By Roderick L. Abad @rodrik_28
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Contributor
UNTINLUPA City has extended a P5-million scholarship fund to support the Marawi siege victims. This time, the fund seeks to help displaced pupils and students continue their studies. In a turnover ceremony, Mayor Jaime Fresnedi handed to Marawi City Treasurer Anggay Abdullah the amount. Fresnedi is among government officials who committed full-pledged support to the rehabilitation of the war-stricken city to enable the people to recover from their ordeal and to uplift the living condition of internally displaced persons (IDPS). The donated amount is the initial scholarship fund that Fresnedi vowed to give annually to Marawi for five years. The Department of Education (DepEd) said 22,000 students and 2,205 teachers were among those affected by the war in Marawi waged by the mili-
tant Maute brothers and their followers. There were also more than 2,000 displaced students from the city accommodated by public schools in and outside of Mindanao, according to reports. MSP Acting Head Alvin Veron said the donation will cater to around 2,000 scholars for the first batch of screening. He added the local government unit (LGU) of Marawi crafted a counterpart ordinance on their scholarship program patterned from the Muntinlupa program. The Marawi LGU will lead the processing of scholarship application in the city. Prior to the educational assistance, Muntinlupa has already given P2 million for the rehabilitation of the city. Also, it has participated in the Diskwento Caravan relief mission of the Department of Trade and Industry. Marawi Majul Usman Gandamra expressed his appreciation to Fresnedi and the city of Muntinlupa.
government through our 70-year strong partnership.” Adolescent speakers Paul Vincent Rodriguez and Bianca Mae Bernardo shared accounts on how children experience deprivations reported in the situation analysis. Quezon City Vice Mayor Joy Belmonte spoke at the event to express their support and commitment to promote and protect children, followed by a Call to Action by youth representatives from the Sangguniang Kabataaan, indigenous peoples, reproductive health and children affected by armed conflict sectors. Young artists from the Virlanie Foundation Choir and ANAK Teatro ng Culiat also performed at the launch event. Key findings from the Situation Analysis include: n Around 31 percent of children live below the basic needs poverty line, with a much higher figure (63 per cent) in the Autonomous Region in Muslim Mindanao (ARMM). n Although the Philippines has reduced the overall child mortality rates between 1990 and 2015, under-5 mortality is still high in the ARMM at the rate of 55 per 1,000 live births, a long way still from the national targets of 15 for infants and 22 for children under five. n Poor nutrition in very young children is a major problem when compared to the regional average of 11 percent in East Asia and the Pacific: 33 percent of children under five are stunted or too short for their age, and 21 percent are underweight. Significantly more children in the ARMM are stunted at 45 percent. n The Philippines is close to
universal access to safe drinking water (90 percent in 2015). Those without access belong to the poorest households with only 80 percent having basic drinking water, compared to 99 percent of the wealthiest households. Only 62 percent of people in the ARMM have access. n Access to education is encouraging, yet an estimated 2.85 million children aged five to 15 remain out of school. As of 2015, only 91 percent were enrolled in primary school, and 68 percent in secondary. The ARMM reported substantially lower rates at 75 percent and 29 percent, respectively. n Children in the Philippines, regardless of socioeconomic status, experience high levels of violence: 2 in 3 are physically, and psychologically abused. Cyber violence has emerged as a serious threat with the Philippines becoming a source, transit and destination country for commercial sexual exploitation and trafficking. n The Philippines also failed to meet the Millennium Development Goals in these areas by the target year of 2015. The Situation Analysis of Children in the Philippines recommends a range of measures to address barriers and causes that prevent girls and boys from accessing their rights. These include creating child-friendly laws and policies that are effectively implemented; increasing government spending for quality social services; improving gathering and use of data on vulnerable groups of children, and conducting more research on the implications of social norms on children’s rights and promoting positive social norms.
Davao gets P150-M China education aid By Manuel T. Cayon @awimailbox Mindanao Bureau Chief
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AVAO CITY—The Chinese Embassy in the Philippines donated P150 million for the construction of 13 school buildings in different areas of Davao City, the city information office said. The assistance would be coursed through the Tapang at Malasakit Alliance (TMA), the support organization of the administration of President Duterte. The city government said the alliance “serves as a channel between the Chinese Embassy and the Department of Education [DepEd] on Davao City in bringing a brighter future to the children of Davao through education.” On October 5 a groundbreaking ceremony was held for one of the schools, Agdao Elementary School, as the country’s education sector commemorated World Teachers’ Day. Also lined up for assistance are Acacia Elementary School; Mudiang Elementary School; San Miguel Elementary School; Mabuhay National High School; Baguio Central Elementary School; Cadalian Elementary School; Malalan Elementary School; Upper Sirbi Elementary School; Ula Elementary School; Wines High School-Ampon Campus;
Marilog National High School; and Salaysay National High School. Mayor Sara Z. Duterte-Carpio, the lead conveyor of TMS, reminded the beneficiaries of the school buildings to take care of the facilities so that the next generation could still use it. Duterte-Carpio said Davao City has always been grateful to China, through Chinese Ambassador to the Philippines Zhao Jinhua, for the generosity it has shown to the city. “This ceremonial groundbreaking is a testimony of the shared commitment of various stakeholders who prioritized the education of our youth,” the mayor said. “Education and investing in the youth are truly a worthwhile endeavor that we, as Dabawenyos, must undertake. With partners and friends from various sectors in our city and even outside the country, I believe our children’s future will be brighter and more secure,” she said. In a statement, Zhao said the People’s Republic of China “is very happy to extend a little donation to Davao City after it saw how the city values education.” “Education is the key to the betterment of young people. If we provide them better education, they will have better personal lives; and the nation and the people’s future is going to be brighter,” he said.
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History books for children to launch at UP Vargas Museum on Oct. 17
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T the School Gate—a children’s book about the experience of a 15-year-old high school student during the government’s witch hunt against people branded as Leftist dissidents in 1991—is one of three titles Bookmark Inc. is launching at 5:30 p.m. on October 17, at the Vargas Museum in the University of the Philippines Diliman campus in Quezon City. Written by Sandra Nicole Roldan, with illustrations by Nina Martinez, this book depicts memories of martial law, as well as the bravery displayed by children and families of so-called dissidents in the aftermath of the government’s anti-Leftist campaign 27 years ago. The author is an offshore PhD candidate at RMIT University in Melbourne, Australia, and teaches Creative Writing at the College of Arts and Letters in UP Diliman. Bookmark is simultaneously launching two other titles, both biographical and historical nonfiction for children. Lakay Billy, Defender of Indigenous People, written by Luz B. Maranan and illustrated by Duday Ysabel Maranan, is a story about William “Billy” Claver, a human-rights lawyer who fought the Marcos dictatorship. Mang Adong’s Jeepney, written by Tippy O. Kintanar and illustrated by Jose Maria Tristan V. Yuvienco, is about Leonardo Salvador Sarao Sr.,
also known as Mang Adong Sarao. He was the founder of Sarao Motors, an automotive company known for designing, manufacturing and selling Philippine jeepneys. At P195 each, At the School Gate is great reading for children and young people ages 10 years old to senior high school, as well as freedom-loving people of all ages. The book will be available in major bookstores, in school and public libraries, as well as in museums and other educational venues. For bulk orders of At the School Gate, please e-mail marketing@bookmarkthefilipinobookstore.com. You may also message the author on Facebook or Twitter (@sandrita_writes) to order signed copies of the book.
iACADEMY TO OFFER B.S. CLOUD COMPUTING NEXT SCHOOL YEAR By Rizal Raoul S. Reyes @brownindio Contributor
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HE recent cyber attacks reported worldwide have convinced the local academe and the private sector of the need to develop a comprehensive curriculum to produce a substantial pool of skilled cybersecurity experts to handle security infrastructure in the knowledge economy. In response to the need for developing the talent in cybersecurity, the Tanco family-controlled iAcademy recently announced it will offer a BS Computer Science in Cloud Computing in the next school year, Dr. Mitch Andaya, the vice president of academics and dean of the School of Computing of iAcademy, told the BusinessMirror they will offer the course to its students once the Commission on Higher Education (CHED) approves it. “We plan to offer the four-year program to our students, which will have majors in cyber security and Big Data analytics,” said Andaya in a recent interview held in the school’s Makati City campus. Andaya said iAcademy’s move is in response to the trends in the digital economy where issues on hacking and network security breaches are growing bigger on a regular basis. “We are aware cybersecurity is the next big issue not only in the country, but around the world,” he said. Andaya said the Philippines will benefit from this development, as countries around the world will need skilled workers in cybersecurity. He said this could be the new outsourcing form the country must look forward into because students and business-process outsourcing workers can move up the value chain. iAcademy assistant principal for senior high school Mel Obedoza said the school is attuned to the needs of the industry by adopting an education model designed for the drastically different demands of the digital age. “Meaningful learning is attained when there is a purpose behind it, more so when students discover that purpose themselves. We challenge
the students to solve real-world problems in our community through our project-based learning,” she said. Obedoza said application, not theory; simulation, not isolation; mentoring, not teaching is the approach that the school will use for senior high school and college students to enable students to learn in conditions as real as possible. “Our courses are designed by people still connected to the industry. This connection allows us to be up to date and know what the industry is looking for at the time,” said Peter Brown of iAcademy’s animation program who proudly added that 95 percent of those in his department are current industry professionals. Meanwhile, Nilesh Jain, vice president in Southeast Asia and India of Trend Micro, said data breaches and violations continue to grow despite regulations. In a report, the Privacy Rights Clearinghouse said there were 259 breaches in the first half of 2018 as compared to 224 in the second half of 2017. The study also pointed out there were 15 mega breaches that resulted in exposing more than 1 million records, as compared to 6 in the second half of 2017. Meanwhile, the National Privacy Commission reported 57 breaches in the Philippines from January to May 2018. Jain urged companies to adopt the best practices against data privacy. These are classify high-value assets of core data, know the indicators of compromise (IoCs) of known attacks, secure all sections of the IT supply chain, patch and update systems regularly and comply with regulatory standards. Although newly discovered vulnerabilities have increased, Jain warned old ones are just effective. Ian Felipe, Philippines country manager of Trend Micro, said its Philippine office functions as the global technical support and research and development headquarters of the parent company, with focus on threat and incident response and solutions delivery. Aside from being one of the major threat research facilities all over the world, the Philippine office serves as the backbone of the company’s service infrastructure.
Learn everything you need to know about termination laws
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OU’RE fired.” That spit-firing charge of a famous real-estate mogul is what US President Donald J. Trump would say in front of his millions of audiences on the hit TV series The Apprentice when he must let go of his people on the spot. However, in the Philippine setting, such action would be a grave violation of the Labor Code. Update yourselves with the changes on termination law. This learning initiative will cover topics, such as the rights of employer and employee, substantive and procedural due process before dismissal, just causes for
dismissal such as serious misconduct, sexual harassment, insubordination or willful disobedience, neglect of duties, abandonment of work, fraud, and willful breach of trust and confidence, commission of a crime or offense, and other causes of dismissal under Article 282 identified as “analogous” and many more! Attending this program will equip you with the right knowledge on the concept of positive discipline, how to implement the grievance machinery, use of preventive suspension and provide solutions to the most challenging, as well as common, problems
encountered by management. Learn valuable lessons and insights from labor law expert practitioner lawyer Elvin Villanueva, who has assembled the most comprehensive, substantive and highly researched materials on this important topic. He has written 25 best-selling books, namely, Digest on Critical Supreme Court Decisions on Labor Cases (to be released in June 2018); Guide on Employee Compensation and Benefits Vol. 1 and 2; Guide to Valid Dismissal of Employees; Guide on Wage Order and Minimum Wage; Valid Job Contracting and Subcontract-
ing, Gabay sa mga Karapatan ng mga OFWs; HR Forms, Notices and Contracts Vol. 1 and 2; Employee Transfer and Demotion; Leave Benefits; and many more! His advocacy is to help companies and employees solve their HR issues. This program is open to the general public. Government officials and employees attending such training programs are exempted from the P2,000 limit set by COA based on DBM Circular 563 dated April 22, 2018. Interested participants are encouraged to avail themselves of the early payment sav-
ings and group discounts. Seats are limited and pre-registration is required. With the advocacy of educating business owners, administrators, human resource practitioners and the general public on the lawful dismissal of employees and prevent costly manpower problems, the Center for Global Best Practices will host a special program, entitled “Best Practices Guide to Valid Dismissal” to be held on October 26 at the Manila Marriott Hotel, Pasay City. [Check www.cgbp.ph for the full details of this training and the complete list of Best Practices programs, including Best
Practices in Crafting Your HR Code of Discipline; How to Structure and Compute Salaries, Wages and Benefits; Best Practices Guide to Crafting Your HR Policies and Contracts; Masterclass on Writing Minutes of Meetings; Write Right for Positive Results, Refresher Course on Business English; Best Practices on Succession Planning; Corporate Governance and many more! For inquiries, you may call landlines in Manila (+63 2) 842-7148/ 59 and (+63 2) 556-8968/ 69, in Baguio (+63 74) 423-2914, in Cebu (+63 32) 512-3106 or 07, or Legazpi City (+63 52) 736-0148.
Marketing BusinessMirror
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Editor: Efleda P. Campos • Monday, October 15, 2018 E3
How can I handle my company’s disaster response? Part Two
the response phase when you’re carrying out the relief. You want to make sure that you’re messaging how your business is helping, and where people can help/volunteer, but you’ve got to balance this messaging so you don’t come across as self-serving. You’re putting people first.” n Pennisi said, “You want to show you’re in control of this message; you’re the one that’s putting this out there, but you don’t come off as self-serving or pompous.” n FleishmannHillard’s Crisis Lead for the Americas, SVP Chris Nelson said, “Figuring out how your business should respond to disaster ultimately comes down to thinking ahead about what part it should play. What is your role in the story? Are you part of the affected? Are you the villain? Understanding your role in the story is important.”
PR Matters By Millie F. Dizon
The Preparedness phase
n American Red Cross Communications Officer Michael de Vullpil-
ŠKODA LAUNCHES RAPID ONYX IN INDIA; UNVEILS INTEGRATED AD CAMPAIGN TO PROMOTE THE NEW MODEL
MUMBAI—The festive season witnesses a slew of new car launches, including special-edition offerings and other variants. With so much promotional activity undertaken by brands, it is important to stand out of the clutter and create an impact that will leave a memorable impression in the marketplace. True to its promise, ŠKODA Auto India has now launched its latest model, the new Rapid Onyx, which boasts unique features and a special price that makes it the best in the segment. The auto major has launched an integrated ad campaign that has been conceptualized and executed by Publicis India. As part of the ad campaign, the agency has launched a TVC that keeps the family at the heart of decision-making when it comes to car purchase. And who better to do the selling than kids, who know the best way to convince their parents into buying a car of their choice. In the TVC, we see a daughter trying hard to convince her strict dad to buy the latest Rapid Onyx but, in turn, receives an unexpected surprise reaction from him. The film captures the many features of the new car, including the reasonable price tag it carries, and why it is a family winner all the way. Commenting on the film, Tarun Jha, head of marketing and productŠKODA AUTO India Pvt. Ltd., said: “ŠKODA is a human brand and in all
our communication, we try to bring a human story which our consumers can relate to better. Similarly, our products and features are designed keeping consumers in mind. With the Rapid Onyx, we wanted to delight the customers with not only features, but also the price point. We have managed to do all that keeping the family’s core interest in mind.” Adding his views, Paritosh Srivastava, COO, Publicis Ambience, said: “The biggest challenge was to do a pure product film in the tonality of brand ŠKODA. Weaving a family story around the product features does the job nicely for us. The added benefit obviously is the pester power we appeal to that is playing increasingly an important role in big purchases in any home. We’re confident that in the clutter of festivals we will stand out with this communication.” The campaign has been launched on air and will also explore popular offline and online mediums like print, outdoor, digital, etc. It is commendable to note here that in ŠKODA’s almost two-decadelong presence in India, their partnership with Publicis India has been the longest among all agency partners.
A BRAND-NEW EXPERIENCE AWAITS YOU AT MCDONALD’S NXTGEN STORE
MANILA, Philippines—The same McDonald’s you know and have come to enjoy, but this time, with more to love—this is McDonald’s NXTGEN. Located at the recently opened McDonald’s McKinley West in Fort Bonifacio, McDonald’s NXTGEN exhibits an elevated dining experience, enabled by new enhancements, which are sure to make your stay at McDonald’s better than ever.
WWW.FREEPIK.COM
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N last week’s column, we began to answer the inquiry of Sheila on how their company can be better prepared for disaster response. We replied that this was a growing concern for PR practitioners. Natural disasters are everywhere— Typhoon Ompong in the Philippines, Hurricane Florence in the US and the recent earthquake in Indonesia. Ironically, these major disasters took place in September, which has been named National Preparedness Month in the US. It is when the federal government offers resources for people to prepare in the event of an imminent natural disaster. We shared some initial takeaways from PRSA’s New York Chapter panel discussion, “Disaster Communications: Preparing Yourself, Your Team, and Your Company for the Unexpected” at FleishmanHillard’s New York Office. This was documented by Justine Joffe in an article, titled “How to Handle Your Brand’s Disaster Response in Phase” in PR News. There is a lot we can learn from these discussions. To begin with, this was moderated by David Rosen, vice president of programming at PRSA New York. The panel included MSNBC Senior Vice President of Communications Errol Cockfield, American Red Cross Communications Officer Michael de Vullpillieres, NY Emergency Management Communications Director Allison Pennisi, NYU Langone PR Director Neal Gorman, and FleishmanHillard’s Crisis Lead for the Americas, Senior Vice President Chris Nelson. We highlighted the difference between a crisis and a disaster, and how a brand’s response to a crisis and disaster should be executed with three priorities in mind—people, business recovery and community recovery. This time, we will discuss some tips from the resource persons in a disaster’s three phases as documented by Joffe:
lieres said, “If you’ve had advance warning, you are in the preparedness phase. Your absolute priority is ensuring the general public is empowered with the tools, often by amplifying the messages of our government partners, and how the Red Cross is preparing.” n NY City Emergency Management Agency Communications Director Allison Pennisi said, “The tone should be authoritative yet accessible. In order to communicate calmly, communicators must be in a preparedness state themselves.” n MSNBC’s Cockfield said, “You’ve got to identify all your audiences. What is the message for each of those audiences? What are the vehicles for your message?”
The Emergency phase
n De Vullpillieres said, “When an emergency is unfolding, you really want to make sure you’re communicating where people can find help. You want a tone of empathy and emergency, and make sure
The only one of its kind in the Philippines, McDonald’s McKinley West takes inspiration from the first McDonald’s franchise store of McDonald’s Founder Ray Kroc in 1955. Boasting of modern yet inviting interiors, McDonald’s McKinley West showcases the entire array of McDonald’s NXTGEN features. Customers can opt to skip the line at the Front Counter, and order and pay for their McDonald’s favorites at the Self-Ordering Kiosk, accepting card payments. Upon completing their order, customers can simply wait for their order number to be called at the Claim Counter once their food is ready for pickup. Guests who still prefer to pay in cash will also see a more convenient experience, with a dedicated lane for ordering, with the help of the digital menu boards and a separate one for claiming. There are also dedicated McDonald’s crew who have been specifically tasked to provide guests with a delightful experience. Customers can feel free to approach any of the crew in green to assist them with any of their needs. “McDonald’s NXTGEN is about evolving with our customers and strengthening our connection with them. Enabled by the NXTGEN enhancements, such as the Self-Ordering Kiosks, split counters, and the impeccable service and warmth our crew provides, we are able to give our customers more ways to enjoy feel-good moments at McDonald’s,” McDonald’s Managing Director Margot Torres said. Experience McDonald’s NXTGEN for yourself at the McKinley West branch in Fort Bonifacio, which also offers 24-hour McDelivery and Drive-Thru services, its own McCafé, and Birthday Parties!
that mirrors the work that you’re carrying out.” n Pennisi said, “If you don’t have additional information, you never say, ‘I don’t know.’ You say ‘this is the information we have now; we’ll provide updates.’” n Cockfield said: “Even mentioning casually that you’re ex-
hausted can be quoted and on the record. Communicators should be especially mindful of drawing those boundaries with reporters during a disaster, even the reporters they have worked with for years.”
The Response phase
n De Vullpilleries said, “You have
PR Matters is a roundtable column by members of the local chapter of the United Kingdom-based International Public Relations Association (Ipra), the world’s premier association for senior professionals around the world. Millie Dizon, the senior vice president for marketing and communications of SM, is the former local chairman. We are devoting a special column each month to answer the reader’s questions about public relations. Please send your comments and questions to askipraphil@gmail.com.
Perspective BusinessMirror
E4 Monday, October 15, 2018
www.businessmirror.com.ph
Made and distributed in the USA: Online disinformation S
By Sheera Frenkel | The New York Times
AN FRANCISCO—When Christine Blasey Ford testified before Congress last month about Justice Brett M. Kavanaugh’s alleged sexual assault, a website called Right Wing News sprang into action on Facebook.
The conservative site, run by blogger John Hawkins, had created a series of Facebook pages and accounts over the last year under many names, according to Facebook. After Blasey testified, Right Wing News posted several false stories about her—including the suggestion that her lawyers were being bribed by Democrats—and then used the network of Facebook pages and accounts to share the pieces so that they proliferated online quickly, social media researchers said. The result was a real-time spreading of disinformation started by Americans, for Americans. What Right Wing News did was part of a shift in the flow of online disinformation, falsehoods meant to mislead and inflame. In 2016, before the presidential election, state-backed Russian operatives exploited Facebook and Twitter to sway voters in the United States with divisive messages. Now, weeks before the midterm elections on November 6, such influence campaigns are increasingly a domestic phenomenon fomented by Americans on the left and the right. “There are now well-developed networks of Americans targeting other Americans with purposefully designed manipulations,” said Molly McKew, an information warfare researcher at the New Media Frontier, a firm that studies social media. Politics has always involved shadings of the truth via whisper campaigns, direct-mail operations and negative ads bordering on untrue. What is different this time is how domestic sites are emulating the Russian strategy of 2016 by aggressively creating networks of Face-
AN undated handout screenshot image of The Resistance’s Facebook page, a left-wing page that Facebook said it would remove. HANDOUT VIA THE NEW YORK TIMES
book pages and accounts—many of them fake—that make it appear as if the ideas they are promoting enjoy widespread popularity, researchers said. The activity is also happening on Twitter, they said. The shift toward domestic disinformation raises potential free speech issues when Facebook and Twitter find and curtail such accounts that originate in the United States, an issue that may be sensitive before the midterms. “These networks are trying to manipulate people by manufacturing consensus—that’s crossing the line over free speech,” said Ryan Fox, a cofounder of New Knowledge, a firm that tracks disinformation. This month, Twitter took down a network of 50 accounts that it said were being run by Americans posing as Republican state lawmakers. Twitter said the accounts were geared toward voters in all 50 states. On Thursday, Facebook said
AN undated handout screenshot image of the Daily Vine, an Americanrun Facebook page linked to Right Wing News, where they advertised a false story on the network. HANDOUT VIA THE NEW YORK TIMES
AN undated handout screenshot image of Right Wing News’s Facebook page. HANDOUT VIA THE NEW YORK TIMES
AN undated handout screenshot image of Reverb Press’s logo on its Facebook page, which shows that it has been verified by the social network. HANDOUT VIA THE NEW YORK TIMES
it had identified 559 pages and 251 accounts run by Americans, many of which amplified false and misleading content in a coordi-
nated fashion. The company said it would remove the pages and accounts. Among them were Right Wing News, which had more than 3.1 million followers, and left-wing pages that included the Resistance and Reverb Press, which had 240,000 and 816,000 followers. Facebook said this amounted to the most domestic pages and accounts it had ever removed related to influence campaigns. The company said it had discovered the activity as part of its broader effort to root out election interference. Also, the pages had become more aggressive in using tactics like fake accounts and multiple pages to make themselves appear more popular. “If you look at volume, the majority of the information operations we see are domestic actors,” said Nathaniel Gleicher, Facebook’s head of security. He added that the company was struggling with taking down the domestic networks because of the blurry lines between free speech and disinformation. Gleicher said the accounts and pages that Facebook took down on Thursday violated its rules about online spam and that many of the domestic organizations probably had financial motivations for spreading disinformation. The organization can make money by getting people to click on links in Facebook that then direct users to websites filled with ads. Once someone visits the adfilled website, those clicks means more ad revenue. But while traditional spam networks typically use celebrity gossip or stories about natural disasters to get people to click on links that take them to ad-filled sites, these networks were now using political content to attract people’s attention. “Today, sensational political content seems to be a more effective way for people to build an audience for their pages and drive traffic to their websites, which earn them money for every visitor to the site,” Gleicher said. Right Wing News did not return calls or emails seeking comment. After this article was published online, Hawkins tweeted, “I have not been involved with running the Right Wing News Facebook page this year. Additionally, I haven’t created any fake accounts on Facebook.” Administrators for the Face-
book page for the Resistance also did not respond to requests for comment. Ed Lynn, who runs Reverb Press, said he had no advance notice that Facebook would be removing the page. “I believe Facebook has made a mistake where Reverb Press is concerned. We are a legitimate American news and opinion publication,” Lynn said in a statement. He said he was appealing Facebook’s decision. While domestic disinformation multiplies, foreign disinformation appears to be less prominent—or may be more hidden. That may be because Facebook and other social-media companies have adopted measures to hunt for and remove foreign interference on their sites. Those efforts are starting to show some results. In July, Facebook, Twitter and YouTube announced they had identified and eliminated a new Russian network aimed at influencing Americans before the midterms. Domestic disinformation is harder to root out than foreign disinformation, researchers said, because in many cases it mirrors genuine networks of Americans engaging in free speech online. Social-media services can act to remove domestic disinformation only when the American groups that are making and distributing it start to use techniques that violate the companies’ terms of service, such as creating false accounts. “Facebook’s tactics are extremely ineffective in stopping these networks of hundreds of Facebook pages and accounts from spreading disinformation,” said Natalie Martinez, a fellow at Media Matters, a nonprofit in Washington that monitors disinformation from conservative American sites. “Ultimately, if you are a US national and you decide to share something, the social networks have no reason to stop you.” Right Wing News was founded by Hawkins, a conservative pundit, in 2009, according to the website. After this article was published, Hawkins said he founded the site in 2001. Facebook said Right Wing News started its Facebook page in July 2012. That page typically published dozens of posts each day, some featuring outlandish claims, with most of the stories linking to the stand-alone website for Right Wing News or to the publication’s
YouTube channels. One recent headline read, “Over A Dozen CIA Agents May Have Died After Hillary Was Caught Red-Handed.” Facebook said the Right Wing News page on the social network was redirecting traffic to the Right Wing News website to drive up its ad revenue, and that administrators for the page appeared to change regularly. Facebook said some of the administrators ran multiple Facebook accounts under the same names, which the social network does not allow. During the past few months, Right Wing News’ Facebook page has increased its activity, researchers said. During the time that Kavanaugh testified in Congress, Right Wing News—and several Facebook pages that mirror it by posting the same content—pushed out numerous articles that questioned the veracity of a lie-detector test that Blasey had taken and why she had come forward with her accusations. Right Wing News also used Facebook ads to spread its content through other Facebook pages. In June, the Daily Vine, an Americanrun Facebook page linked to Right Wing News, published a Facebook ad for a false story that claimed that 412 Muslim men in Michigan had been arrested in the “largest bust in US history.” (The Department of Justice investigation on which the story was based revealed a network of 412 people involved in opioid-related crimes, but they were neither exclusively Muslim nor based in Michigan.) Facebook said the ad was paid for by Right Wing News and was allowed according to its rules, which let American citizens and residents place political ads. Though Facebook has since taken down the Daily Vine page, and the ad is no longer running, it was viewed as many as 50,000 times between June 19 and June 20, according to Facebook’s metrics. The Daily Vine could not be reached for comment. Martinez said Facebook’s actions against Right Wing News and other domestic disinformation networks would stem some of the flow of false content—but only for a little while. “There is little to stop them from spawning off as a new page, or account, and just starting to build their network again,” she said. “They can just keep trying to get around Facebook’s rules.”