Issuu

“I think we should take a drug test prior to the debate, ’cause I don’t know what’s going on with her.”—Donald Trump’s latest unsubstantiated salvo against rival Hillary Clinton charging that she might have been on drugs during their last debate and challenges her to join him in undergoing a predebate drug test ahead of their third and final clash. AP

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“If Batman had a warship, it would be the USS Zumwalt.”—Adm. Harry Harris, commander of the US Pacific Command, describing the Navy’s largest and most sophisticated new destroyer, which comes with a price tag of at least $4.4 billion. “As long as our president and you the American people have an insatiable appetite for security...I have an insatiable appetite for the stuff to underwrite that security.” AP

“The general situation, I think, is pretty bad at this point, probably the worst...since 1973.”—Russian UN Ambassador Vitaly Churkin, describing how Cold War relations between the Soviet Union and the US more than 40 years ago were different than US-Russia relations today. AP

BusinessMirror

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A broader look at today’s business n

Monday, October 17, 2016 Vol. 12 No. 5

‘Ban on land conversion to harm PHL agriculture’

conomic managers and Vice President Maria Leonor G. Robredo warned over the weekend that the proposed blanket ban on land conversion will derail efforts to revitalize the country’s agriculture sector. Continued on A16

Paradoxically, agriculture-sector revitalization may suffer under this proposed policy.”—Joint position paper

BMReports

INSIDE

PHL renewing initiatives to protect children online

Rigged election claims may leave lasting damage

PERSPECTIVE

ERIK NELSON RODRIGUEZ/TNS

By Dennis D. Estopace

@DennisEstopace

& Oliver Samson

HANGING AND HITTING

Correspondent

sports

Using plebiscites to strengthen PPPs. Really?! PPP Lead Alberto C. Agra

Conclusion

ow can a plebiscite strengthen publicprivate partnerships (PPPs)? Is this even possible and legal? Who will participate in this political exercise? What is the effect if a PPP law, project or contract is confirmed through a plebiscite? Continued on A14

SENATORS PRESS D.O.E. FOR BACKUP ENERGY SOURCE @butchfBM

Technology Will Replace Many Professionals

monday morning

business news source of the year

P25.00 nationwide | 5 sections 36 pages | 7 days a week

By Butch Fernandez

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Part One

T’S 12 o’clock; do you know where your children are online? If not, don’t fret—the Philippines is renewing initiatives in a war against predators who prey on children surfing the Internet. The worst among these lot are those in cyber pornography, according to Rosalie Dagulo of the Department of Social

PESO exchange rates n US 48.4730

Welfare and Development (DSWD). “Cyber pornography is a very dangerous situation our children are into right now, because many of our countrymen, especially the parents, think this would not harm children at all,” she said. According to Dagulo, assistant director of the Protective Services Bureau (PSB), DSWD-PSB studies and cases show that victims of child pornography are still battling the experience that is equally traumatic to a child subjected to sexual and physical abuses. Republic Act 9775 defines child

pornography as any representation, whether visual, audio and written or any combinations of these by electronic, mechanical, optical and any other means of a child engaged in real or simulated explicit sexual acts. Any person found guilty of syndicated child pornography, as defined in Section 5 of this Act, shall suffer the penalty of reclusion perpetua and a fine of not less than P2 million but not more than P5 million, the law said. Acknowledging the threat of child pornography is as real online as it is

enators are keen on securing firm assurances from the Department of Energy (DoE) that alternative sources of energy are being lined up to provide sufficient power stock once the Malampaya gas field supplying 40 percent of the Luzon grid dries up. “We should,” Majority Leader Vicente C. Sotto III said, when asked if the Senate is seeking a briefing from the DoE and other stakeholders amid projections that Malampaya field is running out in 10 years. The urgency for the government to address the issue was recently raised by Supreme Court Justice Antonio T. Carpio, citing the need to scout for alternative sources of energy, such as the Reed Bank that China is blocking. Sotto confirmed over the weekend he would ask the Senate Energy Committee, chaired by Sen. Sherwin T. Gatchalian, to look into the matter. “Yes, we must look into this soon,” Sotto told the BusinessMirror. Senate President Aquilino L. Pimentel III also acknowledged “it is already well known that the Malampaya supply is about to go dry.”

2,700 MW

The Malampaya’s power output that provides 40 percent to 45 percent of Luzon’s power supply See “Senators,” A2

Continued on A2

n japan 0.4675 n UK 59.4231 n HK 6.2496 n CHINA 7.2073 n singapore 35.0999 n australia 36.6844 n EU 53.5966 n SAUDI arabia 12.9237

Source: BSP (14 October 2016 )

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A2 Monday, October 17, 2016

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PHL renewing initiatives to protect children online Continued from A1

offline, a dozen government agencies teamed up with three non-governmental organizations (NGOs) in renewing initiatives for the protection of children online.

Superagency

INTERNATIONAL Telecommunications Union (ITU) data revealed that 36.24 percent of the total 96.471 million population of the country are Internet users. According to Dagulo, the growing connectivity of people, especially children, ushered the creation and enactment of RA 9775, or the Anti-Child Pornography Act of 2009. The law mandated the formation of the Inter-Agency Council Against Child Pornography, Dagulo said, an interagency council was formed for the fight against online pornography. The NGOs involved in the council are the Stairway Foundation Inc. and the Philippines affiliates of the International Justice Mission

Senators. . .

Continued from A1

But he did not respond to a query on whether senators were already given firm assurance that clear al-

(IJM) and the End Child Prostitution in Asian Tourism (Ecpat) International Inc. IJM “supported the investigation of online sexual-exploitation cases and the operational support for successful rescue and entrapment operations related to cybercrime and child pornography,” Dagulo said. In 2015 IJM Philippines provided aftercare services to 77 victims of child pornography and cybercrime, she added. The services include medical, legal assistance, education, ALS, family intervention, trauma therapy and social economic services.

Member-government agencies Inter-Agency Council Against Child Pornography ■ Department of Social Welfare and Development ■ Department of Justice ■ Department of Labor and Employment ■ Department of Science and Technology ■ Philippine National Police

■ Commission on (now Department of ) Information and Communications

Technology ■ National Telecommunications Commission

advocacy posters were developed in 2014 and no less than 24,000 copies were produced for distribution in the different regions of the country. “Aside from the government agencies, our major partners in implementing the law are the LGUs in the provinces and municipalities,” she said.

Cases

DOCUMENTS provided by Dagulo said the GO-NGO council includes, among its goals, the eradication of pornography. It is responsible in coordinating, monitoring and overseeing the implementation of RA 9775. The council seeks to address child pornography with five key results areas, which include advocacy

and prevention, and law enforcement and prosecution. The other KRAs are protection, recovery and reintegration of victims; establishment of a research, monitoring and management information system; and, partnership, resource generation and mobilization. Under advocacy and prevention

program, the council has developed and distributed antichild-pornography materials, Dagulo said. The materials included 12,000 copies of RA 9775 handbooks and its implementing rules and regulations. Other materials are advocacy posters and a primer on the law for local government units. Four kinds of

ACCORDING to Dagulo, the number of cases of child pornography in the Philippines is rising. She said some 121 cases were reported to the DSWD in 2014, higher by 27 than the 94 reported cases in 2013. In 2012 reported cases rose to 84, from the previous’ years 36. From January to September last year, the DSWD responded to a total of 129 cases, Dagulo said. We also requested the National Telecommunications Commission to block 314 sites, she added. According to Dagulo, the Optical Media Board had confiscated in 2014 a total of 71,228 compact

ternative sources are now being pursued by the Duterte administration. Billed as the first undertaking of its kind in the Philippines, the Malampaya deepwater gas-to-power project is said to employ stateof-the-art technology in drawing

natural gas beneath deep Philippine waters, fueling three natural gas-fired power stations with total generating capacity of 2,700 megawatts, which provide from 40 percent to 45 percent of Luzon’s power supply.

Developed by Shell Philippi nes E x plorat ion BV, t he Malampaya gas field enabled the Philippines to import less fuel for power generation and, in the process, “provide foreignexchange savings and energ y

security” for the country. But Carpio voiced concerns that the Philippine government now needs to firmly assert its rightful claim over areas covered by the country’s exclusive economic zone as it seeks alterna-

The council

■ Council for the Welfare of Children ■ Philippine Center for Transnational Crimes ■ Optical Media Board ■ National Bureau of Investigation

Source: Republic Act 9775 (An act defining the crime of child pornography, prescribing penalties therefor and for other purposes)

discs containing child-pornographic materials. The Department of Justice (DOJ) has recorded that child pornography formed 2 percent of the cybercrime cases recorded that year. “At present, the alarming issues of child pornography locally and globally, citing a 345-percent increase in child-pornography sites from year 2001, and more than 20,000 child-pornographic images on the Internet every week,” the DOJ Office of Cybercrime (DOC) 2014 to 2015 report said. The report cited a magazine in estimating online pornography was pegged in 2005 as a $3-billion industry. From April to December 2014, the DOJ-OOC said it was notified by the US National Center for Missing and Exploited Children (NCMEC) of 12,374 reports of child exploitation, where either the offended party or the offender is in the Philippines. The NCMEC is a repository of reports of instances of child sexual exploitation, including child pornography, the DOJ-OOC explained. tives to the Malampaya gas field. The SC justice aired warnings that Luzon is likely to suffer from rotating brownouts if the government is unable to tap and develop alternative energy sources before Malampaya shuts down.

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Monday, October 17, 2016 A3

DTI eyes separate incentives scheme for locators in domestic ecozones

By Catherine N. Pillas

@c_pillas29

Trade Secretary Ramon M. Lopez said no proposal has yet been crafted for an incentives package for locators in these proposed domestic ecozones (DEZs), but there could be a “differentiated approach” in luring in investors via fiscal or nonfiscal perks. “The incentives could be different, but they’d still receive benefits , because of the facilitation measures given to set up their businesses inside ecozones. That’s an incentive in itself,” Lopez said, referring to locators that would cater to the domestic market. Lopez acknowledged that cre-

30%

The tax rate on gross income slapped on zone locators that cater to the domestic market ation of DEZs is within the mandate of the Philippine Economic Zone Authority (Peza), but the policy direction in enabling these is still under discussion. Business c ha mbers in t he

file photo

he Department of Trade and Industry (DTI) said it is still open to the idea of setting up ecozones for domesticoriented companies, but it could insist on providing a different incentives package for locators in these ecozones.

country have initiated the call for domestic ecozones as far back as two years ago to cut through the red tape in local government units and to spur manufacturing. Early this year, DTI Assistant Secretary for Trade Policy and Industry Development Rafaelita Aldaba said creating these DEZs play a key role in keeping local industries competitive amid the elimination of tariffs in international trade. Aldaba noted that

the “ideal” setup would grant the same incentives to DEZs as those enjoyed by export-oriented locators in the Peza. She also said the limitation on setting up these ecozones in the “poorest provinces” should be removed and that a framework in identifying where specific industries could thrive should be developed. Currently, Peza ecozone locators can only sell up to 30 percent of their output in the domestic mar-

ket. Beyond that, ecozone locators will have to pay taxes and duties at regular rates. Also, the 5-percent tax rate on gross income (GIE) that kicks in after the expiry of the income-* tax holiday can only be availed by export-oriented enterprises. Zone locators, which serve the domestic market, pay the regular rate of 30 percent on net income. The Peza, in the previous administration, pushed to have the 5-per-

cent GIE enjoyed even by firms that produces majority of their output for the domestic market. However, the DTI highlighted the possible problems in setting up these zones, such as the further reduction in government revenues, the management of these new types of zones and the complex regulatory framework at the local level. The proposal had failed to gained traction because of these hurdle.

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A4 Monday, October 17, 2016

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DOT chief hails new travel media for boosting local economies

This October 14 story shows travel and tourism stakeholders giving a thumbs up during the Asia leg of the Travel Blog Exchange (Tbex), the world’s biggest conference for travel bloggers, writers, content media creators and tourism-industry professionals at the Philippine International Convention Center. The stakeholders are (from left) Joji Gregorio, Tourism Promotions Board TPB) officer in charge; Tourism Assistant Secretary Ricky Alegre, TPB Head Susan del Mundo, Tbex Director Rick Calvert, Agoda Vice President Timothy Hughes, Tourism Secretary Wanda Corazon T. Teo, TBEX Speakers Ian Cumming and Evo Terra, and Department of Tourism executives Raquel Tria, Celeste Ramos and Czarina Loyola. NONIE REYES By Ma. Stella F. Arnaldo

Special to the BusinessMirror

LOSE to 400 international travel bloggers, online travel journalists and new media content creators got a taste of the infamous Philippine typhoons during the fourday Travel Bloggers Exchange, Asia Pacific 2016 (TBEX 2016). A s Ty phoon K a ren’s ra i ns l a shed M a n i l a ea rly Su nd ay morning, the travel media, however, were warmly welcomed by Tourism Secretary Wanda Corazon T. Teo at the Philippine International Convention Center in Pasay City. In her speech, she extolled the importance of the new media in sharing the “ joys of your travel…across the world in an instant,” using their cameras, phones, laptops, drones and other gadgets. She described new media as

being the voice of a new generation and of the eyes of the masses, inspiring millions to live vicariously through the bloggers’ posts about their vacation, and bringing focus and attention to locations normally looked over in the usual packaged tours. Teo also praised the bloggers’ influence in boosting the economies of countries with high incidences of poverty, like the Philippines. “Travel bloggers like you actually help prop up economies. For example, in a region in the

Philippines called Bicol, for every foreign tourist that visits the region, five jobs are created for three days. What you do is no less than spur trade and industry in different parts of the world.” Aside from encouraging the new travel media to visit many parts of the Philippines during their stay, TBEX, she said, allowed the government tourism agency to learn from them by exchanging opinions and insights on ways of promoting the country and “[improving] the Philippine experience for travelers.” In highlighting the Filipinos’ fluency in English and their worldfamous hospitality, Teo invited the participants “to really dig below the surface…and use this opportunity to really get a glimpse of the soul of the Philippines. Not everything is pretty and perfect and new, but I guarantee you that if you look closely, this is a country that really tries. We try to put our best foot forward. We are not known as a land of riches. We are a country struggling with poverty in many areas. But what we do have is an abundance of heart, and you can

1,000 The average number of participants in the TBEX

feel it in our efforts. If you open yourselves up to the Philippine experience, you will feel the soul of the most gentle nation in Asia.” She also outlined other features, “more than the beaches of Boracay,” that make the Philippines an exciting destination, such as its “centuries-old heritage” from the Spanish, Americans and Japanese, as well as the cultures of its native tribes. “This is reflected in the melting pot of our cuisines, and in the look of our people…. Look for how we Filipinos have incorporated other cultures and made it our own. Look for traces of our old soul in a new world,” she added. TBEX was first created in 2009 by six friends, and has since

grown into the world’s largest travel community reaching close to 1,000 participants, with conferences held annually in North America, Europe and Asia. According to the Tourism Promotions Board (TPB), the marketing arm of the Department of Tourism, participants in TBEX 2016 are from Australia, India, Canada, the United States, the United Kingdom, Singapore and the Philippines. “We are honored and excited to bring in the largest travel bloggers’ conference. By hosting this year’s TBEX Asia-Pacific leg, we will be able to showcase the best of the Philippines,” TPB Officer in Charge Joselito V. Gregorio said. “[The event] gives us a great opportunity to share with the world the many wonderful gems the country has to offer,” he added. Highlighting the conference were a series of talks by some of the world’s most renowned travel journalists and bloggers, including international best-selling author (1,000 Places to See Before You Die) and veteran travel journalist Patricia Schultz; host of the award-winning podcast Slice

of Sci-Fi Evo Terra; award-winning writer from the National Geographic Traveler, Frommer’s and San Francisco Chronicle Bill Fink; Agoda Vice President for Business Development Timothy Hughes; Founder and Global Community Leader for Travel Massive Ian Cumming; and marketing expert and Founder of Hastracking Inc. Ciaran Blumenfield, to name a few. Topics discussed were the proper use of social-networking sites, video blogging, content management, marketing techniques to building brands, and challenges and opportunities in blogging. Before the two-day conference at the PICC, the participants were taken on tours of the walled city of Intramuros, Pampanga and Binondo for food samplings, Quezon City and Bulacan for volunteer sociocivic activities with Gawad Kalinga, and Tagaytay for wellness activities. From October 17 to 21, remaining participants will travel to the Banaue Rice Terraces; Boracay, Coron and El Nido in Palawan; Vigan in Ilocos Sur; Iloilo; Siargao; Bacolod; Sorsogon; and Davao.

Modi pledges closer India-Russia ties, fast-tracked FTA I

ndian Prime Minister Narendra Modi pledged to deepen defense ties with Russia at a bilateral meeting in Goa, as India continues its push to modernize its military amid rising tensions in South Asia. Speaking on Saturday ahead of the Brazil, Russia, India, China and South Africa summit alongside Russian President Vladimir Putin, whom he called “an old friend,” Modi announced several defense contracts—including for military helicopters and a deal to acquire Russia’s S-400 air-defense system—and said India and Rus-

Russia is not only supplying arms and vehicles but also is opening joint ventures in India.”—Putin sia will hold an annual defense sector conference. “With the complex and changing global context, your leadership has provided stability and substance to our strategic partnership,” Modi told Putin on stage, after the two governments finalized agreements ranging from defense and manufacturing to infrastructure.

A decision on the start of Eurasian Economic Union free-trade agreement talks involving India would be taken by the Eurasian Council in December, Putin said. The union includes Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan. “Cooperation in military and military-technical spheres is developing successfully,” Putin said on

Saturday. “Russia is not only supplying arms and vehicles but also is opening joint ventures in India.” India is one of the world’s biggest arms importers, largely due to a lack of domestic manufacturing capacity. Modi has tried to boost India’s domestic defense manufacturing sector with his “Make in India” policy, and has pushed to strike deals with foreign defense firms that include local manufacturing and technology transfer. On Saturday Modi said the finalized defense deals with Russia would contribute to his Make in India program. Military choppers

and battleships will be assembled in India, Putin confirmed. Modi said the one-on-one conversation with Putin, held over roughly two hours, would “lay the foundation for deeper defense and economic ties in years ahead.” He praised Putin and the IndiaRussia relationship, and said Russia’s stance on cross-border terrorism “mirrors” that of India’s. Tensions have run high in South Asia after 19 Indian soldiers were killed in September by militants New Delhi said crossed over the de-facto border that divides the disputed area of Kashmir between

India and Pakistan. Pakistan has denied any involvement. Defense ties between Russia and India are crucial for New Delhi. In part because of a Cold War alliance between Moscow and New Delhi, many of India’s weapons flow from Russia. From 2011 to 2015, nearly 40 percent of Russian arms exports went to India, according to the Stockholm International Peace Research Institute. The two spoke ahead of the BRICS summit that involves leaders from Brazil, Russia, India, China and South Africa, which takes place on October 15 and 16. Bloomberg News

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AseanMonday BusinessMirror

Monday, October 17, 2016 A5

Late Thai king’s confidant confirmed as temporary regent

ANGKOK—A 96-year-old confidant of late King Bhumibol Adulyadej has been formally confirmed as the regent to manage the throne in the place of the crown prince and heir apparent, but it wasn’t clear how long the caretaker arrangement would last.

In a speech late Saturday, Prime Minister Prayuth Chan-ocha said that Crown Prince Maha Vajiralongkorn invited him and regent Prem Tinsulanonda for an audience to discuss the situation “as his royal highness was deeply concerned for the Thai people during this time of national bereavement.” Prem heads the Privy Council, a body of advisers to the monarchy, and was the closest adviser of Bhumibol. He is also known to be close to Bhumibol’s highly popular daughter Maha Chakri Sirindhorn. Vajiralongkorn, who should have ascended the throne, has asked for more time to grieve along with the nation before taking over the monarchy. The constitution dictates that the Privy Council head be the regent in such a situation. “His Highness’s only wish is to not let the people experience confusion or worry about the service of the land or even the ascension to the throne because this issue has the constitution, the royal laws and royal tradi-

tions to dictate it,” Prayuth said in his message broadcast on television. The 64-year-old crown prince implores everyone to help each other get through the grief first before thinking of his ascension to the throne, Prayuth said. “Once merit-making and the cremation has passed...then it should be the right time to proceed. This procedure should not impact the work plan or any steps,” he said. No date has been set for the cremation, which, in royal families, is usually months, if not years later. Officials have suggested it would be at least a year. Buddhist funeral ceremonies have already begun at the Grand Palace complex in Bangkok’s historic center where Bhumibol’s body is kept in an ornate hall for the royal family members to pay respects. The hall will be opened to the public on October 28. Analysts say the question of succession is important because the late king had been the unifying glue that had held Thailand’s often fractious

Century-old Indonesian insurer said to explore $1-billion sale

Mourners gather to pay their respects to the late Thai King Bhumibol Adulyadej at the Grand Palace in Bangkok, Thailand, on Sunday. Tens of thousands of people are thronging at the palace complex to pay their last respects to a beloved monarch who dominated the memories of generations of Thais. AP Photo/Charles Dharapak

politics together, and diffused tensions during crises when the dominant military was pitted against the civil society. While the institution of monarchy is generally revered and respected in Thailand, it is more so because of Bhumibol’s popularity that no other royal member commands. “His death means that the Thai political system must find an alternative focal point around which to unite the country’s factionalized population,” said Tom Pepinsky, a Southeast Asia expert at Cornell University. For ordinary Thais, succession was not particularly top on their minds for now, as they were consumed by grief at the loss of a man many saw as their father and a demigod. Tens of thousands of people are

thronging at the palace complex to pay their last respects to a beloved monarch who dominated the memories of generations of Thais. Authorities have allowed people to enter the complex for a limited time, and only to sign condolence books in another hall. Bhumibol’s death after 70 years on the throne was a momentous event in Thailand, where the monarch has been glorified as an anchor for a fractious society that, for decades, has been turned on its head by frequent coups. Over the past 10 years, Thailand has suffered particularly intense political turmoil pitting arch-royalists against those seeking a redistribution of economic and political power, allied with Thaksin Shinawatra, a populist prime minister ousted in a 2006 coup. AP

JB Bumiputera 1912, the century-old Indonesian life insurer, is exploring a sale of its business to an overseas investor as it seeks to meet obligations of its more than 5 million policyholders, people with knowledge of the matter said. The Jakarta-based firm is working with a financial adviser to identify potential buyers, including international insurers, the people said. It is restructuring its business to separate good and bad assets and could seek at least $1 billion from any sale once the revamp is completed, the people said, asking not to be named as the process is private. Bumiputera 1912, the country’s first national insurer owned by its customers, is reorganizing as it tries to improve its finances and meet growing obligations. The firm was able to satisfy a minimum risk-capital ratio last year following a regulatory warning more than a year before, according to a MetroTV report in April 2015 citing a regulatory official. The insurer has 350 branch offices in the country, employs more than 3,000 staff and has more than 30,000 agents, its web site shows. Bumiputera 1912, founded by three teachers, offers products including savings plans, education insurance and retirement planning. Representatives for Bumiputera 1912 said they couldn’t immediately comment. The insurer aims to complete a years-long restructuring process at the end of 2016, Dumoly Pardede, deputy commissioner at Indonesia’s Financial Services Authority, known as OJK, said by phone last week. It has more than 13.5 trillion rupiah ($1 billion) of assets, according to its web site. Indonesia’s supreme court this year ordered the insurer to pay claims made by former clients of PT Asuransi Jiwa Jaminan, a subsidiary it sold in 2001. The sale and purchase agreement didn’t include 24.9 billion rupiah of insurance contracts held by Asuransi Jiwa Jaminan, resulting in unpaid claims, according to court documents. Bloomberg News

Monday, October 17, 2016 • Editor: Lyn Resurreccion

The World BusinessMirror

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Trump challenges legitimacy of election

Republican presidential candidate Donald Trump speaks during a campaign rally on October 15 in Portsmouth, New Hampshire. AP/ Evan Vucci

P Russian Ambassador to the United Nations Vitaly Churkin makes a statement during the appointment of the SecretaryGeneral-designate Antonio Guterres of Portugal at the United Nations headquarters on Thursday. AP/Seth Wenig

Russia envoy: Tensions with US are probably worst since 1973

NITED NATIONS—Russia’s UN ambassador said tensions with the United States are probably the worst since the 1973 Mideast war.

But Vitaly Churkin said on Friday that Cold War relations between the Soviet Union and the US more than 40 years ago were different than US-Russia relations today. “The general situation I think is pretty bad at this point, probably the worst...since 1973,” he said in an interview with three journalists at Russia’s UN Mission. But Churkin said “even though we have serious frictions, differences, like Syria, we continue to work on other issues... and sometimes quite well.” That wasn’t the case generally during the Cold War. When Egypt and Syria launched a surprise attack against Israel on the holiest day in the Jewish calendar in October 1973, the Mideast was thrown into turmoil. And according to historians, the threat of an outbreak of fighting between

the Soviet Union, which backed the Arabs, and the US, Israel’s closest ally, during the Yom Kippur War was the highest since the 1962 Cuban missile crisis. Churkin said there are “a string of things” that have brought USRussian relations to their current low point. “It’s kind of a fundamental lack of respect and lack of in-depth discussions” on political issues, he said. Churkin pointed to the US and North Atlantic Treaty Organization (Nato) deciding to build their security “at the expense of Russia” by accepting many East European nations formerly in the Soviet bloc as Nato members, and the US pullout from the AntiBallistic Missile Treaty in 2001. One of “the greatest provocations” during President George W. Bush’s administration was the

2008 Nato summit, which decided that Ukraine and Georgia should become Nato members, he said. Most important, he said, was t he conf l ict t hat er upted in eastern Ukraine in April 2014, weeks after a former Moscowfr iend ly U k rainian president was chased from power by massive protests. Churkin called it “a coup” supported by the US. S o on a f te r, R u s s i a a n ne x e d Ukraine’s Crimean Peninsula, which has led to Western sanctions against Moscow. Ties bet ween Wa sh i ng ton and Moscow have deteriorated further in the past month after the collapse of a cease-fire in Syria and intensified bombing on Aleppo by Syrian and Russian aircraft, and US accusations that Russia is meddling in the US presidential election next month. But despite the strained relations, US Secretary of State John Kerry and Russian Foreign Minister Sergey Lavrov met Saturday in Lausanne, Switzerland, in an effort to look at possibilities for restoring a cease-fire. Churkin also pointed to other positive achievements in USRussia relations even at this low point. He cited agreements

in the UN Security Council in recent years supported by Moscow and Washington, even on Sy r ia—a l low ing cross-border aid deliveries without government approval and establishing a team of experts to determine responsibility for chemical weapons attacks in the country. He also cited council resolutions to combat terrorism. T he US and Russia were a lso key players in last year’s nuc lea r dea l w it h I ra n, a nd last week they agreed on the Secur it y Council ’s nomination of for mer Por t ug uese P r i me Minister A ntonio Guter res as the next UN secretar y-general, which Churkin said was “maybe the best success of the Security Council in the last five years.” Guter res w a s e lec ted by acclamation on T hursday by the Genera l A ssembly. Churkin said Russia would like to normalize relations with the US. “If the change of administration is going to help, that’s fine,” he said. But even if President Barack Obama stayed for another term, which he is barred from doing, “we would be pushed to trying to get back to normal in our relations.” AP

US detects what it calls failed North Korean missile launch

A S H I N G T O N —T h e United Staes military said on Saturday it’s detected what’s being described as a failed missile launch by North Korea. The launch occurred near the northwestern city of Kusong and the missile is presumed to be a Musudan intermediate-range ballistic missile, according to a Defense Department statement. The military said the launch was attempted at 11:33 p.m. EDT on Friday (12:03 p.m. on Saturday local time) and that the missile didn’t pose a threat to North America. The action brought harsh criticism from the US. “We strongly condemn this and North Korea’s other recent missile tests, which violate United Nations Security Council Resolutions

explicitly prohibiting North Korea’s launches using ballistic missile technology,” said Cmdr. Gary Ross, a Pentagon spokesman. He said the U.S. would raise concerns at the UN. “Our commitment to the defense of our allies, including the Republic of Korea and Japan, in the face of these threats, is ironclad.” Ross said. “We remain prepared to defend ourselves and our allies from any attack or provocation.” North Korea has claimed technical breakthroughs in its goal of developing a long-range nuclear missile capable of reaching the continental US. South Korean defense officials have said the North doesn’t yet have such a weapon. It’s the latest in a series of moves by North Korea aimed

apparently at displaying a show of force. As recently as last month, it fired three ballistic missiles off its east coast, timed to get the attention of world leaders including President Barack Obama who were visiting the region for a series of summits. The UN Security Council subsequently condemned those North Korean launches and threatened “further significant measures” if it refused to stop its nuclear and missile tests. North Korea also conducted its fifth nuclear test last month and in all has launched more than 20 ballistic missiles this year, part of its program aimed at improving the delivery system for nuclear weapons. Earlier this year, North Korea successfully launched a Musudan missile in June after several

failed attempts. Obama has vowed to work with the United Nations to tighten sanctions against North Korea, but has also said the US was still open to dialogue if the government changes course. The US strategy has largely centered on trying to get China, North Korea’s traditional ally, to use its influence to persuade the North to change course. North Korea is continuing missile test launches even as the United Nations Security Council is deliberating a further tightening of sanctions after the September nuclear test. Previously in August, Japanese and South Korean officials said a medium-range ballistic missile flew about 1,000 kilometers (620 miles) and landed near Japan’s territorial waters. AP

ORTSMOUTH, New Hampshire — A b e l e a g u e r e d Donald Trump sought to under mine the leg itimac y of the United States presidential election on Saturday, pressing unsubstantiated claims the contest is rigged against him, vowing anew to jail Hillar y Clinton if he’s elected and throwing in a baseless insinuation his rival was on drugs in the last debate. Not even the countr y’s more than two centuries of peaceful transitions of political leadership were sacrosanct as Trump a c c u s e d t he me d i a a nd t he Clinton campaign of conspiring against him to undermine a free and fair election. “The election is being rigged by corrupt media pushing completely false allegations and outright lies in an effort to elect her president,” he said, referring to the several women who have come forward in recent days to say that Trump had groped or sexually assaulted them. He has denied the claims, calling the women liars. Earlier on Saturday, Trump took to Twitter to warn that “100 percent fabricated and made-up charges, pushed strongly by the media and the Clinton Campaign, may poison the minds of the American Voter. FIX!” “Hillary Clinton should have been prosecuted and should be in jail,” he added. “Instead she is running for president in what looks like a rigged election.” In a country with a history of peaceful political transition, his challenge to the election’s legitimacy—as a way to explain a loss in November, should that happen—was a striking rupture of faith in American democracy. Trump has repeatedly claimed without offering evidence that election fraud is a serious problem and encouraged his largely white suppor ters to “go and watch” polling places in certain areas to make sure things are “on the up and up.” Peter Kostruba, a Trump supporter who traveled to his Portsmouth rally from Barnet, Vermont, with his 10-year-old son, said he’s not expecting riots to break out if Clinton wins, but he sees sharper divisions in the country. “It definitely feels like the odds are stacked, whether it’s the legal system or the voter system,” Kostruba said. “I don’t think you’re going to see all of this group here arm themselves and mobilize, but, you know, we’re probably not too many years away from that if things keep going the way we’re going.” On a similar theme, a prominent Trump supporter who spoke at the GOP convention last summer, Sheriff David Clarke Jr. of Wisconsin’s Milwaukee County, tweeted on Saturday: “It’s incredible that our institutions of gov, WH, Congress, DOJ, and big media are corrupt & all we do is b_ _ _h. Pitchforks and torches time.” Clarke, an elected Democrat, illustrated his tweet with a photo showing angry people with clubs and torches. House Spea ker Pau l Ryan,

whose decision not to campaign for Trump angered the GOP nominee, made clear he does not share the candidate’s concern about the election’s legitimacy. “Our democracy relies on confidence in election results, and the speaker is fully confident the states will carry out this election with integrity,” said AshLee Strong, speaking for him. It w a s not t he f i rst t i me Tr u m p h a s r a i s e d t h e i d e a the election is unfairly tilted against him, but it has become a resurgent theme for the New York billionaire and many of his supporters in the past several days as he’s slipped in preference polls and faced allegations of sexual misconduct. As well, campaign money is tight, at least in comparison with his rival’s resources, according to information that predates the release of a 2005 video that showed him bragging about imposing himself on women. Trump began this month with $75 million in his campaign and joint party accounts, he said Saturday in a statement. That’s exactly half of what the Clinton team said it had on hand—a worrisome financial disadvantage for the Republican side. There was trouble in Ohio, too, where Trump severed ties w it h t he st ate’s R e pu bl ic a n Party chairman, Matt Borges, who had become openly critical of the nominee at times. That crack in unity comes in a critical battleground state, where Republican Gov. John K asich is also not behind Trump. Trump’s tribulations and accusations overshadowed the release on Saturday of yet more e-mails hacked from accounts of Clinton campaign Chairman John Podesta, laying bare aspects of the campaign’s internal deliberations. The latest batch showed the campaign worrying whether Sen. Elizabeth Warren might endorse Bernie Sanders, wrestling with how to respond to revelations about her private e-mail use, and lining up materials to respond to fresh accusations from Juanita Broaddrick, who accused Bill Clinton of raping her decades ago. He denied the rape accusation, which was never adjudicated by a criminal court. Trump also suggested on Saturday that Clinton had been on drugs during the last debate and challenged his rival to a drug test before the final debate on Wednesday. Instead of spending the weekend preparing, he said, “I think she’s actually getting pumped up, you want to know the truth.” “I think we should take a drug test prior to the debate, ‘cause I don’t know what’s going on with her,” he said. “But at the beginning of her last debate, she was all pumped up at the beginning. And at the end, it was like...she could barely even reach her car.” Trump offered no evidence to support the bizarre claim. Nothing about Clinton’s demeanor in the debate suggested she was under the influence. AP

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The World BusinessMirror

Diplomats forge new track to end Syria violence but no truce seen

AUSANNE, Switzerland—New ideas proposed, more talks prepared and no quick resolution in sight for Syria’s agony.

A United States-hosted meeting of major world and regional powers made on ly piecemea l headway on creating a new, multilateral track for ending the beleaguered country’s grinding war. US Secretary of State John Kerry convened top diplomats from Russia and regional powers, like Saudi Arabia, Turkey and Iran on Saturday for a four-and-ahalf-hour meeting in Switzerland. The talks came amid heightened urgency about the city of Aleppo, the latest flashpoint in a war that has killed up to a half-million people, sparked a refugee crisis and offered a territorial base to the radical Islamic State (IS) group. Kerry’s new approach comes after last month’s US-Russian bid to end the war collapsed in days as Syrian forces backed by Russian airpower launched an offensive on rebel-held parts of Aleppo. Ministers put a brave face on the Lausanne meeting, which Kerry said was “exactly what we wanted ”—a statement

t hat test if ied most ly to low expectations. The main result was pledges to resume contact on Monday. “Nobody wants to do this in a sloppy way,” said Kerry, who only recently accused Moscow of war crimes. Russia has put a priority on separating al-Qaeda-linked militants on a UN-designated list of terrorist organizations from “moderate” rebels backed by the US. For that to happen, Washington says the aerial onslaught in eastern Aleppo must stop. Neither side has budged in the chicken-and-egg dispute over months of negotiation. Saturday’s talks included top envoys from Saudi Arabia, Iran, Turkey, Qatar, Iraq, Egypt and Jordan. Kerry said the discussion was driven by the “urgency of Aleppo, the urgency of trying to find something that works other than military action.” Ministers offered suggestions that “really might be able to shape some different approaches,” he

US Secretary of State John Kerry (center) talks with Saudi Arabia Foreign Minister Adel al-Jubeir (left) and Jordan’s Foreign Minister Nasser Judeh (right) after a meeting on the crisis in Syria, in Lausanne, Switzerland, on October 15. Jean-Christophe Bott/Keystone via AP

said, without elaborating. No official news conference or joint statement followed Saturday’s meeting. The Syrian-Russian offensive in Aleppo prompted the US to end discussions this month over a proposed military alliance against IS and al-Qaeda-linked militants. Last week, Kerry accused both parties of war crimes for targeting hospitals and civilian infrastructure in the Arab country. Nevertheless, Kerry reunited with Russian Foreign Minister Sergey Lavrov at the lakeside Beau-Rivage Palace in Lausanne, speaking with the Russian for almost 40 minutes before the larger gathering. For all the talk in Washington about a possible Plan B, US hopes for diplomatic progress appeared to rest squarely on Russia’s cooperation.

“There are a few ideas we discussed today in this circle of countries that can influence the situation,” Lavrov told Russian news agencies. “We agreed to continue contacts in the next few days aiming at agreements that could advance the settlement. We spoke clearly in favor of a quick launch of a political process.” On Saturday Syrian and Russian air strikes hit several rebel-held A leppo neighborhoods amid clashes on the frontlines in Syria’s largest city and onetime commercial center, according to the Britain-based Syrian Observatory for Human Rights and the Aleppo Media Center, an activist collective. Also, opposition fighters backed by Turkish airstrikes launched an offensive to try to capture Dabiq from IS,

Monday, October 17, 2016

which confers special status to the northern Syrian town in its ideology and propaganda. In another sign that Turkey and Russia have repaired relations since last year’s Turkish downing of a Russian fighter plane, Turkish Foreign Minister Mevlut Cavusoglu appeared to endorse Russia’s position on the significance of US and Turkish-backed opposition forces separating themselves from alQaeda-linked militants. “There was no resolution on the cease-fire,” Cavusoglu acknowledged. Despite fiercely criticizing Syria and Russia, the US doesn’t seem to have an answer. President Barack Obama and the Pentagon have made clear their opposition to any US military strikes against Syria President Bashar alAssad’s military. The US is uneasy with providing more advanced weaponry to the anti-Assad rebels because of their links to extremist groups. And sanctions on Moscow are seen as unlikely step, given their limited impact after Russia’s annexation of Ukraine’s Crimea territory in 2014 and the weak appetite among America’s European partners for such action. Underscoring the lack of options, Obama directed his national security team on Friday to renew diplomatic efforts to reduce the bloodshed in Syria. AP

China to blast 2 astronauts into space

EIJING—Chinese officials unveiled plans for Monday’s launch of the country’s latest space mission in which two astronauts will be blasted into space and will dock with an orbiting space lab. The Shenzhou 11 spacecraft will be launched at 7:30 a.m., said Wu Ping, deputy director of China’s manned space engineering office, in a televised news conference. The Shenzhou mission will take off aboard a Long March-2F carrier rocket from the Jiuquan Satellite Launch Center on the edge of the Gobi Desert in northern China. The spacecraft will dock with the Tiangong 2 space station within two days and the astronauts will stay there for 30 days to test the complex’s ability to support their life. They will also conduct medical and scientific experiments, Wu said. An earlier Tiangong 1 experimental space station launched in 2011 went out of service in March after extending its mission for two years and docking with three visiting spacecraft. The Tiangong, or “Heavenly Palace,” stations are considered stepping stones to a mission to Mars by the end of the decade. Wu identified the astronauts flying the mission as 49-yearold Jing Haipeng and 37-year-old Chen Dong. It will be Jing’s third flight into space following missions in 2008 and 2012. “It is any astronaut’s dream and pursuit to be able to perform many space missions,” Jing said at a separate briefing. AP

Gencar

thAn

A BusinessMirr

Monday, October 17, 2016 | www.businessmirror.com.ph

Sixth dealership in Batangas City

speeds up expansion drive

encars Inc. celebrates its 38th anniversary as a major distributor of Isuzu with a big accomplishment to its name. Just last August 31, the company opened its sixth dealership in Batangas City. It is one of the biggest Isuzu dealerships in the Philippines, according to Isuzu Philippines Corporation (IPC) president Hajime Koso, who graced the event. The new dealership carries forward the company’s commitment to expand to new areas where the market is promising for Isuzu’s excellent diesel-powered cars, vans, trucks and buses and other vehicles. It also brings to the region Isuzu’s well-known quality automotive service. With this expansion south of Metro Manila, Gencars affirms its confidence in the country’s sustained economic growth, which international financial institutions predict will be better compared to other Asian economies. Isuzu Gencars Batangas City occupies about 5,063 square meters or about half a hectare, which is part of a six-hectare complex that now has the city’s main bus terminal. The place is known as Automotive Row in the province of Batangas for being the home of several major automotive vehicle manufacturers. Development of the sixhectare complex is a PPP (publicprivate partnership) project of the ALC Group of Companies organized by the Ambassador with the local government of Batangas City. Gencars is a major affiliate in the ALC Group. The newest dealership is the second in the province of Batangas for Gencars. It opened up Gencars Batangas in Sto. Tomas town in 1996 as its second dealership, the company’s first outlet outside Metro Manila. Other outlets in the Gencars chain are found in San Pablo City, the province of Laguna; Naga City and Legazpi City in the Bicol Region. “We have faith that with the

country’s improving economy, the outlook is very promising for setting up a new dealership, especially in such a prosperous and progressive place as Batangas City and the province as a whole,” said D. Edgard A. Cabangon, Gencars President and Chief Executive Officer (CEO). Batangas 5th Dist. Rep. Mario Vittorio “Marvey” A. Mariño pays tribute to the “generosity and trust” of the late Ambassador Antonio L. Cabangon Chua, Gencars founder and chairman, “This was grasslands before. When I showed Amba (referring to the Ambassador) this property, he was the only person to believe this will be a booming place,” the congressman said. Mariño said the Ambassador had great faith in building a partnership with the city and showed remarkable generosity. Marino further recalled at the opening of Gencars Batangas: “When I told him to bring his businesses here, he needed no feasibility study. Nobody had believed me before about this property, but he immediately invested his money, even telling his children to support the project. Besides the Gencars branch, the six-hectare property will be the site of the branches of other companies under the ALC Group of Companies. Stalls will also be leased out to small and medium businessmen who wish to operate enterprises in the place. Gencars also plans to open a dealership in Santa Rosa City, which offers exciting marketing potentials with its progressive outlook and booming economy. Besides the opening up of new outlets, Gencars has also pursued growth by expanding existing ones. From 1,100 square meters, Isuzu Gencars San Pablo now occupies a 2,100-sqm lot, while Isuzu Gencars Naga has expanded from 1,900 sqm to 3,600 sqm In Metro Manila, Gencars has acquired a 700 sqm lot in Bangkal, Makati City, where it now operates a stockyard that can accommodate 50 vehicles.

ISUZU Gencars Batangas (Sto. Tomas town)

ISUZU Gencars San Pablo

ISUZU Gencars Makati

ISUZU Gencars Legaspi

From Left:Takashi Tomita–EVP of Isuzu Philippines Corp., Alangilan Barangay Captain Guilberto Alea, Batangas City Congressman Marvey Marino,Batangas City Mayor Beverly Rose Dimacuha, D. Edgard Cabangon-President and CEO of Gencars Inc., Hajime Koso-President Isuzu Philippines Corp.,Takashi Kikuchi-President of Isuzu Motors Corp., Thailand during the Gencars Inc. Batangas Grand Opening, Gencars Batangas City. ROY DOMINGO

ISUZU Gencars Naga

rs , Inc .

nniversary

ror Special Feature

Monday, October 17, 2016

Gencars continues

to bask in Popemobile glory

s it celebrates its 38th anniversary, Gencars Inc. continues to relish the taste of glory that it had last year, 2015, when it provided Pope Francis, on his visit to the Philippines in January, with the Popemobile that ferried His Holiness in various places. The same sense of enthusiasm and vigor that it had through its service to the Pope continues to fill the men and women of Gencars, inspiring them to work even harder in providing only the best Isuzu vehicles and automotive service to Filipinos. While Gencars boasts of a long list of awards as a leading provider of top-quality vehicles in the country, its fabrication and donation of the Popemobile for Pope Francis was a great opportunity to show the whole country and the entire world its brilliance and expertise in automotives. The company donated the Isuzu DMax unit that was customized with the help of Almazora Motors to meet strict Vatican standards, and at the same time add a Pinoy touch to its overall design.“We considered it a great privilege and a blessing to be asked to build the Popemobile. We were able to serve His Holiness, and while doing so we also managed to prove our commitment to excellence and innovation,” President and CEO D. Edgard A.

Cabangon had said. He added that the Isuzu Popemobile is also proof that Filipinos are definitely capable of building world-class vehicles. Pope Francis himself described the Popemobile as a “beautiful car,” impressed by the Filipino-made Isuzu Popemobile. He requested another similar vehicle to be brought to the Vatican so he can use it in going around and meeting the people. The Cabangon family, led by Ambassador Antonio L. Cabangon Chua, were only too happy to accede to the papal request. After making the necessary arrangements, another D-Max unit from Isuzu Gencars was customized with the help of the Almazora Group. This second Isuzu Popemobile was airlifted to Rome, Italy on June 30. It was officially turned over to His Holiness by members of the Cabangon family, headed by D. Edgard, during a special audience with Pope Francis at the Vatican on October 14, 2015. D. Edgard Cabangon was joined to the Vatican by his mother, Bienvenida A. Cabangon; his brothers J. Wilfredo and D. Arnold; sister Dominga Cecilia, and Benjamin V. Ramos, president of BusinessMirrorIsuzu Gencars’s sister company in the ALC Group-in the historic turnover. It was designed by Almazora with the security and

comfort of Pope Francis in mind. The two-cab vehicle was converted into a single cab to make room for the pope’s chair and additional seats for his companions. A shield made of plexi-

Gencars: a reliable partner of Isuzu through the years

encars, Inc., one of the most trusted and reliable distributors of diesel-powered Isuzu vehicles in the country today, started its long journey to success back in October 1978 when Ambassador Antonio L. Cabangon Chua, its late founder, conceptualized and established the very first dealership at the corner of Dela Rosa Street and Chino Roces Avenue (formerly Pasong Tamo) in Makati City. Back then, Gencars was a franchised dealer of General Motors Philippines, Inc. (GMPI) for Isuzu Gemini and Opel cars. Isuzu’s operation in the Philippines was briefly interrupted. But upon its resumption in 1989 as Isuzu Motors Pilipinas, Inc., Gencars once again became its franchised dealer.

Isuzu Philippines Corporation (IPC) took over the business operation from Isuzu Motors Pilipinas in July 1996, and, due to its outstanding track record, awarded a franchise to Gencars as one of its dealers. In November of the same year, Gencars opened its second dealership in Barangay San Roque, Sto. Tomas, Batangas. The very first expansion of the company provides for the vehicle requirements and the motoring service needs of motor vehicle owners living in the Southern Tagalog Region. By this time, Gencars has found a new leader in D. Edgard A. Cabangon, son of the founder, who was appointed as president in 1995. As president and chief executive officer, he continues to lead the company towards more expansion and achievements in the

motoring industry. The company adopted the trade name Isuzu Makati, with Gencars, Inc. as its corporate name, in 1997. Now, 38 years after its establishment, Gencars, Inc. has grown into a network of six branches around Luzon, including the maiden branch in Makati City, and the branches in the town of Sto. Tomas in Batangas Province; the newest branch in Batangas City; San Pablo City in Laguna; and the cities of Naga and Legazpi in the Bicol region. Through these outlets, Gencars, Inc. continues to be a reliable partner of IPC in the distribution and maintenance of its efficient and high-quality light and medium trucks and passenger cars in more parts of the country.

glass was placed in front to protect the pope from the elements. Sturdy railings were attached to the sides of the vehicle for the pope and his security personnel to hold on to while in transit.

The pope’s emblem emblazoned with a banig design adds a Filipino touch to the car. The chair is made from Italian leather with red carpet imported from Italy.

Five-Star Service Shop

suzu Gencars is a firm believer in the value of continuous training of its personnel and updating of skills. It is proud that because of its emphasis on manpower training, its Service Division has made a name as one of the best providers of automotive service in the country. It has received numerous awards from Isuzu Philippines Corporation (IPC) for its quality service operations. IPC shares with Isuzu Gencars the belief that its responsibility to its customers does not end after a sale but continues to the upkeep and maintenance of its vehicles. The Isuzu Gencars Service Division has proven its capability to guarantee total customer satisfaction. First, there is its pool of client-friendly crew who are equipped with the latest technical expertise in car maintenance and repair. Regular update training for its mechanics and other car care staff are held to guarantee that their skills continuously improve. They are trained to repair all kinds of vehicles, of any brand, available in the market today. And to make sure that each ve-

hicle is given full attention and the proper care, Gencars implements a “service by appointment” scheme for a more organized handling of repairs and checkups. Roving mechanics are also sent out in the field to attend to customers who prefer to have their vehicles service at home or at the office. The Isuzu Gencars Service Shop holds classification as a 5-Star automotive service shop, won after passing the standards set by the Department of Trade and Industry (DTI). For years, it has been among the industry’s service provider for vehicles. A perfect balance of professionalism and good customer relations accounts for the top sales volume and excellence in service that the Service Division renders. Gencars service shop’s topof-the-line equipment also ensure more efficient car maintenance services. Among these are two huge painting ovens including a wonder laser with television monitor for computerized wheel balancing and a computerized wheel alignment system that attends to an average of 40 vehicle units everyday.

Tourism&Entertainment A10

BusinessMirror

Monday, October 17, 2016

Editor: Carla Mortel-Baricaua

OK-Gayon Bikol: A showcase of Bicol’s best

he Bicol region put its best foot forward once again as the OK Bikol Association Inc., the Department of Trade and Industry (DTI) and the Department of Tourism (DOT) recently held the 20th Orgullo Kan Bikol-Gayon Bicol Trade and Tourism Fair at the SM Megamall Megatrade Hall. Incepted in 1996 as OK Bikol, it is the longest-running regional trade and travel fair, which showcases the distinct products and tourist spots from Bicol, which is among the country’s fastest-growing regions. A hundred and eight micro, small and medium enterprises (MSMEs) and seven institutional exhibitors took part in this year’s edition of the expo, which is Bicol region’s vehicle in developing homegrown entrepreneurs, especially those who are vying for the Manila market for the first time. The event’s guests of honor were Vice President Maria Leonor G. Robredo, who hails from Naga City, along with Undersecretaries Zenaida Maglaya of the DTI and Alma Rita Jimenez of the DOT. Started by the DTI in 1996, Orgullo Kan Bikol (Pride of Bicol) showcased the region’s cottage industries, and has generated some P200 million in actual receipts, excluding business transactions consummated after the show.

With the support of the DTI, producers have developed worldclass packaging for processed-food products, which have become export quality. The DTI also supports micro, MSMEs in product development by tapping local designers to assist merchants in creating new design concepts for their handicrafts. The DOT joined in 2001 to synergize trade and tourism. Orgullo Kan Bikol-Gayon Bicol is supported by the various provincial, city and municipal local government units that presented their One Town, One Product (Otop) specialties, such as abaca products, home furnishings, fashion accessories, health and wellness concoctions, pili-based candies and novelty items. The event also featured processed food-and-beverage products, which have been certified Halal by the Islamic Da’wah Council of the Philippines, making them more competitive in the global market. The expo also highlighted Bicol’s

Sumlang Lake with Mayon Volcano

Naga X booth of Naga City

Ceramic Pottery from Tawi, Albay

Export-quality furniture from Albay

popular and new travel destinations. In recent years, Bicol has posted the highest tourist arrivals among all the regions due to its diverse natural attractions, festivals and accessibility

from Manila and the Visayas. With Albay as a gateway and anchor destination, the region has been clustered into the Almasor (Albay, Masbate and Sorsogon) Tourism

Surfs up in Urbiztondo

Vice Gov. Kaye Revil at the Masbate booth

Alliance and the Camarines NorteCamarines Sur-Catanduanes (3C) Tourism Link. Spicing up the four-day fair were performances by the CamSur Cul-

tural Dancers, the All Star Band of Legazpi City, MAG Dancers of Iriga City, and surprise entertainment numbers and guest appearances from Bicolano artists and celebrities.

The best seats on the best eats, now guaranteed with SEATS

Organizers of the Surfing Break (from left): Kahuna Beach Resort and Spa General Manager Richard Emslie, Committee Chairman Jeff Ortega, Kahuna Beach Resort and Spa/Kahuna Bistro CEO Darcy Lalonde, Tourism Director Martin Valera, La Union Convention and Visitors Bureau President Marika Chanpinco and Events Committee Chairman Glynis Balagot

n a country where 25 percent of the population would rather dine out than whip up their own meals from home, homegrown restaurant-reservation apps, such as SEATS are sure to be a swiping success. SEATS has made securing tables at even the most popular restaurants as simple as a click, with its easy to use interface and quick access to hundreds of wining and dining establishments in the Metro. As the holiday season kicks in, SEATS goes back to its roots, by cementing a partnership with another revered dining institution. Earth Kitchen is one of the founders of the farm-to-fork dining movement in the Philippines. With a number of indigenous farming community partners, like Got Heart Foundation, Earth Kitchen only utilize locally yield and freshly grown produce that not only adds zest and flavor to their delectable menu, but also supports the agricultural economy of the

Philippine countryside. Under the culinary toque of celebrated caterers, Hizon’s Catering, Earth Kitchen’s hearty and healthful dishes have, for years, gained a strong and loyal following at its Katipunan Avenue store. And having recently broken ground in the Metro’s most bustling commercial hub, the new Earth Kitchen store at the Bonifacio High Street is sure to win even more green-minded and green-hearted diners. This is where SEATS once again comes in handy, by guaranteeing sure-seat reservations at BGC’s fast-growing and thriving farm-to-table restaurant, just as well as a whole world of dining establishments to choose from. And with your Globe Postpaid Plan, you are sure to discover more great finds to match your lifestyle, with much ease, speed and freedom, because nothing beats getting the best seat in the house.

LUXE VACATION AT PALAWAN’S DALUYON RESORT AWAITS LUCKY BUYER OF MANILA FAME OCTOBER 2016

D Tourism Secretary Wanda Corazon T. Teo highlights La Union as one of the country’s best surfing destination.

rbiztondo in San Juan, La Union, beckons once more surfers, beach lovers or plain sports spectators to this year’s Surfing Break from October 28 to 30. Launched in 2006, the event is going strong on its 11th year, successfully attracting varied markets from college students on semestral break to corporate team-building groups, families and buddies with interest in surfing. “Surfing is one of the aqua-based activities that has lured locals and foreign tourists alike to the Philippines’s numerous surf destinations. La Union’s strong product offering is hinged on the reliable supply

Valera makes his presentation before the media participants of the Surfing Break 2016 news conference at Kahuna Bistro, Makati City.

of affordable services of surf schools and shops and accommodation establishments conveniently located along the beach, on top of the good-quality waves 10 months a year from May to March. This is just one among the many offerings that strengthens our competitiveness for sports tourism,” Tourism Secretary Wanda Corazon T. Teo said. “Now that surfing is officially an Olympic sport, this would augur well to further stimulate our local industry with the surge of interest to learn the sport and the determination to excel and compete in the world arena. More important, this development

serves to support the sector’s viability and sustainability, which will redound to the community’s enhanced welfare,” the Department of Tourism (DOT) chief added. “We intend to surpass last year’s participants of 12,000 for the three-day period. Our local and foreign guests are promised to get their money’s worth for the music, local arts and crafts, day tours and other fun activities. We are proud that the continued support for the event has sustained La Union’s position as the “Surfing and Active Lifestyle Holiday Destination of the Philippines,” DOT Region 1 Director Martin Valera enthused.

aluyon, the name, says it all. It is descriptive of the water, the sound of the surf surging and crashing onto the shore. And it is this hypnotic sound that caresses the ears as one lounges on a deck or in a room fronting the sea. It speaks of the passion of nature that surrounds the lucky guests. In the 64th edition of the Manila FAME, Asia-Pacific’s second-oldest trade fair that has become a premium lifestyle event to watch for, we are giving away free airfare and accommodations to a lucky foreign buyer and partner. The enviable site, the island of Palawan, was voted Readers Choice Awards Best Island in the World in 2014 and 2015 by Condé Nast Traveler magazine readers, preferred world’s best island 2013 and 2015 by readers of Travel and Leisure, and rated by National Geographic Traveler magazine as best Southeast Asia region in 2007 and the 13th best island in the world. Daluyon Beach and Mountain Resort is a few minutes leisurely walk to Sabang Pier, the gateway to one of the New Seven Wonders of the World, the Underground River in the capital Puerto Princesa. Just a 20-minute boat ride from the subterranean wonder, Daluyon Beach and Mountain Resort is a perfect base for astounding tours on both land and water. Set right on peaceful Sabang Beach, guests are offered a

view of the sea and the sky any time of the day. From the airport, Daluyon is about two hours away and what awaits are fantastic eco-friendly amenities and leisure facilities to enjoy: Subterranean River Tour, Mangrove Paddleboat Tour, 3.5-kilometer Jungle Trail, Sabang Zipline (800 meters), Ugong Rock Spelunking and Zipline, Mountain Biking, Standup Paddle Boards, Kayaking, Beach Games, Boogie and Skim Boarding. All of these in between sleeping, snorkeling, snoozing, beachcombing, feasting on fresh seafood and just plain enjoying the getaway experience. No automated teller machines in Sabang, but the resort accepts all major credit cards. The resort can arrange for services of tour providers to show guests around Honda Bay. A four-hour Puerto Princesa City Tour and souvenir shopping is best done on the guests’ last day en route to the airport. Escape promo includes two free roundtrip tickets to the highly desirable dream vacation spot of the world, the nature island of Palawan. This is open to all Manila FAME October 2016 overseas trade buyers who are at least 21 years old and not based in the Philippines. To register for Manila FAME and know more about the Luxe Escape raffle promo, log on to http:// www.manilafame.com/en/Buyers/Luxe-EscapeRaffle-Promo

Tourism&Entertainment BusinessMirror

news@businessmirror.com.ph

Monday, October 17, 2016 A11

Kyoto: Of polite people, tidy streets, heritage sites, fascinating culture and then some

And a Japanese song plays in the background

Story & photos by Marky Ramone Go

t was almost to the year when I capped my first trip to Japan by spending days walking aimlessly around Tokyo—getting lost while discovering the character of its gigantic city spread over towering skyscrapers and spacious sidewalks filled with hastening crowd. A total of 12 days constituted my first foray into the Land of the Rising Sun, and yet, I still desire for more. Only India had me yearning for a return trip to the same country too soon—and in Japan I felt that same attraction quite hard to resist.

The Temple of the Golden Pavilion (Rokuon-ji)

One of the wooden bridges inside the grounds of the Imperial Palace

Walking underneath the Torii gates at Fushimi Inari-taisha

Present day and I found myself again being on the receiving end of the courteous greetings of “ohayou gozaimasu” from, probably, the most polite people on Earth. Whatever I learned from my first trip to Japan barely scratched the surface of the wondrous personality and culture of this country. Aside from looking forward to downing more bowls of ramen— my curiosity grew threefolds and is directed at the number of heritage sites situated in the cities of Osaka, Nara and Kyoto. Several hours of Shinkansen train ride away from Nagoya and Tokyo; two cities I had the chance to familiarize myself last year; these triumvirate of cities appear like a cultural triangle waiting

for my curious and wandering soul to explore.

Counting Orange Torii Gates at Fushimi Inari-taisha

Depending on the pace of your strides, a few minutes of walking could lead you underneath dozens, or even hundreds, of Orange torii gates already. These mother of all shrines dedicated to Inari, the Shinto God of Rice, Foxes and Sake, spreads to an uphill trail leading to a mountain where pockets of shrines and temples situates. Caught between trying to weed out the crowd from the frame of my camera, and staring in awe at the women adorned in kimono dresses, my interest was drawn to the mes-

sages scribbled in Japanese characters on each of the Torii gates. Setting aside my camera, I walked in a slower pace and just marvelled at the lingering air brought upon by the presence of these vibrant Orange torii gates, which appears to stretch endlessly. Circ l ing my bac k into t he main temple, the Honden near the entrance, where I earlier performed the ritual of washing my hands and rinsing my mouth with the water from the purification fountain, I looked back at the centuries of history glowing beside me. The countless Orange torii gates, which gleams under the small speck of sunlight seeping through the cloudy skies, echoes an understanding to myself; that Japan’s history and its fascinating religious practices are all abundant and waiting for me to unearth.

Entering a parallel world into Ancient Kyoto

Sixteen of the 17 places listed

under the United Nations Educational, Scientific and Cultural Organization World Her itage Site categorization of “Historic Monuments of Ancient Kyoto” are all found within Kyoto and, for my wandering cultural junky self, this fact screams of visual and learning orgasm. Disregarding the heavy downpour and the threat of typhoon coming within hours, we trudged along the snaking bamboo forest path that leads to the Buddhist temple of Tenryū-ji and the same grounds that once served as the playground of ancient Japan’s noble class. Separating myself from my two friends, I wound up in a spot where the towering branches of bamboos stood, and thick enough to almost shelter me from the rain. In that instant, I felt entering a chasm taking me back to ancient Kyoto. A glimpse of the centuries-old Kyoto would continue with our bus-hopping incursion into the other Zen-like places of impor-

dot tackles plans at eu-phL summit T ourism was one of the major economic sectors highlighted during the European Union-Philippines Business Summit at the Makati Shangri-La Hotel held recently. Representing the Department of Tourism (DOT), Undersecretary Alma Rita Jimenez discussed the agency’s vision and plans for the industry. She st ressed t he need for tourism products and services to provide unique experience for the visitors. “ That is our challenge and our response is three-pronged—structural reforms, innovative product and destination development, and creative marketing and promotion,” she added. The undersecretary also encouraged the European Union(EU) representatives to “help spread the good news to get the EU numbers up.” At present, total visitors from the EU accounts for just a little over 3 percent of the total arrivals, if the UK is not included. “ T h i s me a n s les s of you r nationals are able to ex perience the wonderful sights the Philippines has to offer, the hea lth and wel lness ser v ices that made it to the sixth place in Asia and 19th place in the 2016

Moderator Anthony Abad (from left), Rajah Travel and Tours President Aileen Clemente, Tourism Undersecretary Alma Rita Jimenez, Tourism Infrastructure and Enterprise Zone Authority COO lawyer Guiller Asido and KLM Country Manager Raymond Reedijk Rommel Natanauan, DOT

Global Medical Tourism Index and the rela xing and laid-back atmosphere of our retirement places,” she added. To ensure a stable baseline market, the undersecretary mentioned expanding tourism reach in both geographic and service segments. These include revitalizing existing programs, like medical and retirement tourism, and the Meetings, incentives, conferences and exhibitions, or Meetings, Incentives, Conferences, and Events segments while developing further products for the four Fs—fun, farm, family and faith tourism. Being resilient would involve putting in place crisismanagement plans, to withstand

shocks coming from securit y issues, climate conditions and manage market vulnerabilities. This requires a country tourism program approach through development of clusters and tourism circuits and the strengthening of regional cooperation. More impor tant, t he DOT official stressed that the tourism business should ultimately redound to the improvement of the lives of the Filipinos. With direct and indirect employment, community-based projects and level-playing field for Ministry of micro, small and medium enterprises, the benefits of tourism can spread to the countryside. Jimenez also urged everyone

to give the new management of DOT a chance to have a fresh take on the tourism’s marketing campaign. “The tourism campaign that has been undertaken obviously improved the awareness of what the Philippines can offer by way of tourism destinations. It is time to take it to the next level by providing flesh and substance that will deliver the promise. It means putting in place structural reforms that will ensure stronger fundamentals to make our tourism program stable, resilient, sustainable, transformative and inclusive. These are the strategic tourism imperatives that the secretary of tourism articulates as she defines the aspirations and policy directions for the industry.” With this year’s theme of “EUPhilippine Economic Ties: A New Chapter Unfolds”, the event drew close to 350 participants from the government and private sectors of the EU and the Philippines. The annual event is aimed at learning more about trade regulations and new directions of the government, identifying action points for legislation and showcasing business opportunities for EU businesses in the high-growth sectors of the country.

tance within the city. Most of the time, we’d find ourselves walking through the foot of high-rise buildings into a busy stretch of sidewalk lined up with a fusion of modern and old establishments, and into the interior of a vast walled complex that hides lavish gardens and centuries-old temples and shrines. Immediately after stepping i nside, you feel t ra nspor ted back in time. As I amass a list of Kyoto’s other historic monuments under my belt, namely, the Jishō-ji (Temple of the Silver Pavilion), Nijo Castle, Rokuonji (Temple of the Golden Pavilion), Kiyomizu-dera (Pure Water Temple), Kyoto Imperial Palace, my cultural experience in Kyoto left me with longer list of sites to be explored. I felt the days we spent are still lacking to fully engross myself to the rich culture, history and traditions that prevails in the city. Once again, I find myself barely grazing on the cultural wealth this part of Japan has to offer.

During our last night, while I was having dinner with my friend Gael in a small joint fit enough for a dozen diners and a small acoustic setup, a Japanese singer belted a string of haunting melodies. After our meal, I excused myself for a walk around the city that night. As I took medium hops over the pavement, I can still hear the Japanese ballad playing in my ears while the Kyoto city lights flicker with lively signage. As I continue my stroll with the cool air breezes through me, chased by endless thumping of footsteps, I once again feel the atmosphere that pulls me and leaves me emitting strong emotions. A thought came into my mind. “I’m open to spending a long time here,” I muttered to myself. Teeming with culture, history, food and modernity that are all present in a fast-paced life surrounded by a Zen environment, the contrasts are presented in a myriad of beautiful ways. I passed by a row of cabs parked on the sidewalk. I peeked inside and saw those seated behind the wheels are men of old age. With gray hair, a couple of them nodded with smiles as their gazed met mine. A life lived well in the Land of the Rising Sun, and even in their advancing age, their own society still finds good use of their skills—much like everything else is put to better use in this country. Much like what the tradition and culture that dates back many centuries ago are continued and preserved up to this day. Travel Tip: Kyoto is an hour away from Osaka by train. Travelers can avail themselves of a single-ticket day pass for trains and buses to explore all of Kyoto’s Ancient Heritage Sites for a day or two.

View of the Jishō-ji (Temple of the Silver)

Korea sale FESTA welcomes visitors and showcases expanding M.I.C.E. capabilities

he shopping and tourism campaign Korea Sales Festa seeks to boost tourist arrivals and showcase the country’s rapidly growing tourism infrastructure and services. Jointly hosted by the Ministry of Trade, Industry and Energy and the Ministry of Culture, Sports and Tourism, the campaign is running until October 31. An expansion on last year’s Korea Grand Sale, the Korea Sale Festa will include large cultural festivals, shopping discounts, hallyu entertainment and more for international visitors to Korea. Throughout the month of October, the entire Korean peninsula will be abuzz with festivals, showcasing the nation’s great ability and growing capacity for holding a wide variety of large-scale events. There will be a total of 55 major festivals taking place in October, including the 2016 Gwangju Biennale, 21st Busan I n t e r n a t i o n a l F i l m Fe s t i v a l, K- p o p showcase M Countdown in Jeju, Baekjae Cultural Festival, Suncheon Environment Ar t Festival and Symposium, Jeonju International Sori Festival and more. A boost in professional convention and event infrastructure throughout the peninsula has made it easier to host so many large festivals at once, and has also contributed to Korea’s growing

capacity for hosting international MICE events. According to the latest report by the Union of International Associations, Korea recently ranked second the world for number of international congresses hosted in 2015. Korea’s capital Seoul ranked third and its second-largest city Busan ranked 11th overall for number of international congresses hosted. N ow t h at Ko re a’s g row i n g M I C E infrastructure has played a key role in boosting its competitiveness as a business events destination, more effor ts are also being made to boost MICE services and capabilities. The Korea Grand Sale is the main component of the Korea Sale Festa, and is a great opportunity for business visitors in Korea to take advantage of many discounts, services and attractions. Major duty-free stores, as well as department stores, are all offering special deals throughout the month of October. Deals are also being offered for nonshopping businesses, and discounts can be found for airfare, accommodation, cosmetics, health-care products, performances and even tourist attractions. A full list of participating partners can be found at the main web site www. koreagrandsale.co.kr.

Science Monday

A12 Monday, October 17, 2016

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

DOST chief: ‘Coopetition’ will keep entreps relevant

‘C

Rizal National Science High School edged 14 other teams becoming the second champion of the Can Satellite Competition. (From left) Dr. Rogel Mari Sese (National Space Development Program-Department of Science and Technology); Dr. Josette Biyo (DOST-Science Education Institute); Marla Ena Rosales, Josh Rael Jorquia, Marlon Sta. Catalina and Matthew Lemuel Rey (Rizal National Science High School); Science Undersecretary Carol Yorobe; and George Parilla (Intel Philippines).

Rizal NSHS tops CanSat tilt

t was mission accomplished for Rizal National Science High School, as it bested 14 other schools to win in the second Can Satellite (CanSat) Competition at the 2016 World Space Week (WSW) celebration held recently in Los Baños, Laguna.

The team—composed of Josh Rael Jorquia, Matthew Lemuel Rey, Marla Ena Rosales and their coach, Marlon Santa Catalina— designed their CanSat to gather barometric pressure, temperature and global positioning system as its primary mission. They added sensors to gather humidity and light intensity, and a camera to capture images as part of its secondary mission. With a successful launch and data transmission from the CanSat to their ground station, Rizal NSHS made an effective analysis of their data to emerge on top. The victory earned them a P10,000 cash prize and a trophy. Benigno Aquino High School placed second, followed by Marcelo H. del Pilar High School. They received P7,000 and P5,000 cash prizes, respectively, along with trophies. The number of participants this year increased to 15, up from 10 in the inaugural contest held last year. Grace Christian College won

in the first-ever competition. Science Education Institute (SEI) Director Josette Biyo said the event marked an improvement f r o m l a s t y e a r ’s v e r s i o n i n ter ms of mater ia ls used, w ith Intel Phi l ippines sponsor ing Edison microcontroller boards as pr imar y pl atfor m for t he CanSat development. “ The sponsorship eased the process of learning, and the participants really got creative and imaginative with their missions. This helped our cause of making them develop a deep interest in space science, as well as engineering skills that can be their stepping stone in picking up a science and technology course in college,” Biyo said. Likewise, Dr. Rogel Mari Sese, focal person of the Philippine Space Science Education Program and program leader of the National Space Development Program, both of the Department of Science and Technology (DOST), acknowledged the competition

A team mounts its Can Satellite in a hexacopter that is used to launch the units from above 100 feet during the second Can Satellite Competition during the recent 2016 World Space Week held in Los Baños, Laguna.

has improved and was positive because of the competition’s continuous growth as an education platform. “The competition has certainly grown but we can still enhance it to make it more challenging and reflective of the actual satellite development process,” Sese said. Biyo noted that the CanSat competition would be one of the side activities along with the Water Rocket Event at the 23rd Asia-Pacific Regional Space A genc y For u m (A PR SA F-23), which will be hosted by the Philippines for the first time. The top two teams, Rizal NSHS and Benigno Aquino HS, will represent the country in the event. “This WSW celebration served as a great dry run for us in hosting of the APRSAF-23,” she said. Meanwhile, Sampaguita Village

National High School headlined the top 3 winning teams of the National Water Rocket Launching Competition. Other winners are the Unson Nationa l H i g h S c ho ol a nd Tu nt u ng i n Putho Nationa l High School. A ll three schools will represent the countr y in the APRSAF-23. Another highlight of the celebration was the On-the-Spot Poster-Making Contest participated in by 20 elementary pupils. Mark Samuel Subingco from Bayog Elementary School emerged the winner with his piece on “My Dream Planet.” Finishing second and third were Lovely Esther Magtanob from Mayondon Elementary School, and Jasmene Cathe Catedrilla from Lalakay Elementary School, respectively. Their entries will also compete in the APRSAF-23. S&T Media Service

Obama a science geek

I T T SBU RGH—P resident Barack Obama has a confession: He’s a science geek, a nerd, and he’s not apologizing to anyone. The geek-in-chief was in his element on Thursday as he toured cutting-edge projects during a White House Frontiers Conference. Obama beamed as he took the chair of a Boeing Starliner Flight Simulator, with its panoply of buttons and monitors and futuristic gizmos. “Right, left, left,” his trainer said, urging minute course corrections. “Your ride is here, baby,” Obama said, after docking the simulator on the International Space Station. “This is like the Uber shuttle. In case anybody calls, we’ll be there in five minutes.” Minutes later, the president gawked at a self-directed quadcopter, or minidrone, used to inspect infrastructure like bridges. As a computer screen showed the drone’s preset path, the drone moved up and down, left and

right, emitting neon green light and whizzing loudly. He offered a presidential fistbump to Nathan Copeland, a paralyzed man who is the first person who can feel sensation through his mind-controlled robotic arm. “W hat a story,” Obama said i nc redu lou sly. T he Ha r v a rdtrained lawyer has never been shy about his fascination with all things scientific and hightech. Over the years he’s fired off a high-speed marshmallow air cannon at a W hite House science fair and rubbernecked at robots built by teenagers. He used his appearance on Thursday to scoff at those who “willfully ignore facts or stick their hands in the sand,” such as those who question global warming. “Sixty years ago, when the Russians beat us to space, we didn’t deny that Sputnik was up there. That wouldn’t have worked,” Obama said. “No, we acknowledged the facts and then

President Barack Obamam (second from right) looks over the Space X Dragon commercial crew capsule with Carnegie Mellon University President Subra Suresh (right), National Aeronautics and Space Administration astronaut Dr. Serena Aunon-Chancellor (second from left) and Space X engineer Kiko Dontchev during a visit to Carnegie Mellon University in Pittsburgh on Thursday for the White House Frontiers Conference. AP/Susan Walsh

built a space program almost overnight, and then beat them to the moon.” Urging a new aspiration for the nation, Obama has set a goal to send humans to Mars by the 2030s, and in Pittsburgh he got a look at the SpaceX Dragon Spacecraft, part of

ongoing research to develop vehicles that could transport astronauts to the red planet. Obama remarked at the white capsule’s petite size. “It’s like putting up with Sasha and Malia in the back of the car,” he said. “It’s a long car ride.” AP

oopetition,” not competition, will keep entrepreneurs afloat in the imminent Asean economic integration. This is the advice of Science Secretary Fortunato T. de la Peña to the country’s local micro, small and medium enterprises (MSMEs) to stay relevant in the industry. “Coopetition,” or the concept of cooperation between competing businesses, is a strategy of competing companies in creating new value-adding products and services at the fastest and economical way possible. De la Peña said the Asean integration will definitely affect local enterprises as products and services become liberally available across all Asean markets, thus, causing stronger competition. Speaking at the recent “Regional Workshop on Enhancing Innovation and Competitiveness of MSMEs” at the Diamond Hotel in Manila, the science chief observed that most local MSMEs do not have the capability to conduct research and development to introduce more innovations. T he work sho p, or g a n i z e d by the DOST’s Technology Application and Promotion Institute, in cooperation with the UN Economic and Social Commission for Asia and the Pacific-Asia and Pacific Centre for Technology Transfer. It aims to foster cooperation among technology experts in the Asia-Pacific region in diffusing relevant knowledge and capabilities through technology-transfer activities to spur further development. This year the regional workshop focused on innovation

and competitiveness in the agroenterprise sector. De la Peña encouraged the government to form farmers’ organizations to enable the sharing of knowledge and expertise to help develop other small-scale farmers at the shortest time possible. Reports say that in 2011, the Philippines had more than 11 million small farmers capable of producing small-scale production on a small piece of farmland. “You see, as time passes by without us being productive, the country gets left behind,” de la Peña said. De la Peña also shared the need for local farmers to gain other relevant skills to move their agricultural productions up to highervalue yields. In particular, he said they need to have entrepreneurial skills to complement their knowledge on farming. “Our farmers are doing a very good job in the farm,” he said, “but we also need to capacitate them in doing the business aspect of farming.” According to Tapi Director Edgar I. Garcia, the country’s service industry has moved up by 8.4 percent, while local manufacturing gained 6.9 percent in the past few years. However, the agricultural sector is on a decline of 2.9 percent, which is attributed to the adverse effects of climate change in the Philippines. In 2016 the Department of Agriculture estimated a P7.013 billion worth of damage in the agricultural sector for the months of January to May. Most of the commodities affected were rice, corn, coffee, cacao, rubber, banana and onion. S&T Media Service

Why potent greenhouse gases are meeting’s focus

OHANNESBURG—Greenhouse gases that are more powerful than carbon dioxide are the focus of a global gathering in Africa. Experts say cutting hydrofluorocarbons (HFCs) is the fastest way to reduce global warming. The United States is among the countries that want the world to quickly phase out the use of HFCs, and Secretary of State John Kerry is there to encourage a deal. Here’s a look at a potential global climate agreement that has been described by the Natural Resources Defense Council as “the world’s biggest climateprotection achievement in the year after Paris.” n It’s not about the ozone layer The ozone layer has been healing for a while, thanks to the global agreement known as the Montreal Protocol. In 1987 countries alarmed by the discovery of a huge hole in the ozone layer over Antarctica signed the treaty to eventually end the use of chlorofluorocarbons (CFCs), which at the time were used in refrigerators and aerosols like hair spray. HFCs were introduced to replace CFCs, and scientists realized only later that they have a strong effect on global warming. Although HFCs don’t harm the ozone layer, their ability to trap the heat radiating off the Earth is hundreds or thousands of times more potent than that of carbon dioxide. T he UN Env ironment Program says that reducing HFCs under the treaty could reduce global warming by .5-degree Celsius by the end of this century and environmental groups say the step is essential to meeting the goals of the Paris Agreement on climate change. n Where the US and China agree The United States and China have their difficult issues, but the

world’s two worst polluters have pushed to fight climate change. The two heavyweights agreed in 2013 to pursue a deal to phase out HFCs, which are used in air conditioners, refrigerators and insulating foams. The US and China are urging the countries gathered this week in Kigali, Rwanda, to extend the Montreal Protocol to include HFCs. They also want agreement on an “early freeze date” for when countries must cap their use of them. The US and India, the world’s third-worst polluter, also have agreed to try to use the treaty to phase out the chemical.

n A threat as urgent as extremists? HFCs have been called the world’s fastest-growing climate pollutants, though they are less plentiful than carbon dioxide. The growth comes as more people in developing countries make enough money to buy appliances. Last month Kerry said HFCs currently emit as much pollution as 300 coal-fired power plants. At an international climate meeting in July for state parties to the Montreal Protocol, Kerr y stressed the urgency of fighting climate change, saying it is as dangerous as the threat posed by the Islamic State and other extremist groups, if not more so. n African, island states in a hurry Small island states and other countries, including many in Africa, that say they face the biggest threat from climate change are urging action on HFCs, and soon. At the July meeting by states parties to the treaty, many countries favored capping the growth of HFCs in 2021. China was said to prefer later in the decade, with India aiming at the end of it or beyond. W hatever the timing, less-developed countries are seeking help from richer ones to help them implement the treaty. AP

Green Monday BusinessMirror

BusinessMirror

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

Monday, October 17, 2016 A13

Climate change adaptation key to reaching zero hunger in LatAm

Two farmers in Cobquecura in central Chile show visitors changes made in their subsistence crops to withstand the effects of global warming, with the support of public policies to strengthen food security in times of climate change. Claudio Riquelme/IPS

ANTIAGO, Chile—Climate change is leading to major modifications in agricultural production in Latin America and the Caribbean, and if mitigation and adaptation measures of the productive system are not urgently adopted, threats to food security will be exacerbated.

2.2% The average percentage impact from climate change on the GDP by 2030

This could reverse the significant progress made in the region by means of plans to achieve the Zero Hunger goal, the experts told Inter Press Service (IPS). For example, to maintain coffee yields, crops had to be moved from 1,000 to between 1,200 and 2,000 meters above sea level, while many Chilean vineyards had to be moved south, to get more sun and rain. Large companies can afford to buy other land, but many family farmers find their livelihood at risk and wonder if the time has come to change crops or even to leave their land and move to a city, in order to survive. “Climate change puts us in a situation of insecurity. If in the past we were able to more or less estimate average temperatures or humidity for a particular area, now we have lost the capacity to make forecasts based on a certain degree of probability,” Jorge Meza, an Ecuadorian expert in the United Nations Food and Agriculture Organization (FAO) regional office, told IPS. “Considering that the effects could be either positive or negative, it has been estimated that by 2030 the impacts from climate change on the regional economy could reach an average of 2.2 percent of GDP in damage,” he said. “Some of the effects could be beneficial, like an increase in rainfall that would mean more water for crops,” said Meza, the senior forestry officer in the Santiago office. But in general terms, he said, if the losses amount to 2.2 percent of GDP, “there will be countries with zero economic growth, and beyond the economic factor, there will be a strong social impact, of 4 percent to 5 percent.” FAO’s aim is to underscore the links between climate change mitigation and adaptation and food security, with the slogan “Climate is changing. Food and agriculture must too,” for this year’s World Food Day, celebrated on October 16. One example to be considered is the Economic Commission for Latin America and the Caribbean (Eclac) forecast for Central America. If the necessary climate-change mitigation and adaptation measures are not taken, production of basic grains could be reduced 25 percent by 2050, the regional UN agency estimates.

“This is alarming for two reasons: first, because it means a shortage of food and, second, because the remaining food—that 75 percent—will become more expensive. Both phenomena will have an impact on the poor: with less food available and more costly food, there will be reduced possibilities of access to basic grains,” Meza said. Viviana Espinosa, a 60-year-old Chilean woman, grows a variety of crops for family consumption. At her home in the Cajón del Maipo region, in the foothills of the Andes mountains, about 17 km from Santiago, Espinosa plants food that she puts on her table and also distributes among her children and grandchildren. “Food is increasingly expensive. For example, the cost of a kilo of tomatoes soared to 2,500 pesos [$3.7] in September. If I plant at home, I not only save that expense, but in addition, I get a natural, organic product, free of pesticides,” she told IPS. Apart from tomatoes, this married mother of three grows beets, lettuce, carrots and onions. “My goal now is for everything that I plant to be organic, and I hope the weather will be favorable. In November 2015 heavy rains destroyed everything we planted,” she said. Climate change is seen in Latin America in some 70 annual weather events, including hurricanes, drought, fires, landslides and mainly floods, which affect an average of 5 million people. Meanwhile, one-third of the 625 million people in Latin America live in high-risk areas, exposed to climate events that pose a threat to their livelihood. At the same time, climate change has more long-term effects, such as declining productivity in agriculture and a greater need to shift crop production areas. “They say that if you don’t move and continue planting in the same area, you will probably have lower yields, and that could require more inputs or technologies and more resistant seeds,” Costa Rican economist Adrián Rodríguez, head of the Agricultural Development Unit in the Eclac regional office, told IPS. “From the point of view of family farming or the production of crops that play an important role in food security, an increase in food prices could affect farmers and consumers,” he said. He added that there is another effect that has already been seen: the need for relocalization of productive activities. “If the climate is no longer suitable for production, you have to move to other areas where the agroecological and climate conditions are adequate. For large companies, this is not a big problem, but it is for small-scale producers with less technology, lower levels of investment and a more reduced capacity for stockpiling,” he said. In 2015 Latin America became the first region in the world to reach the two global antihunger goals: the prevalence of malnutrition fell to 5.5 percent and the total number of malnourished people dropped to 34.3 million. IPS

The coral nursery units deployed with coral fragments allow divers to experience the coral reproduction technology. Cabuan Community Village Coastal Tour Association

Coral-reef restoration provides tourism prospects to Camiguin

hile Camiguin Island is popular for its sweet lanzones, the province has something more to boast of. T he island is blessed w ith natural attractions, such as cool refreshing waters and waterfalls, panoramic view of the ocean and potential dive sites. One of such dive sites is in Barangay Cabuan, Guinsiliban, in Camiguin. Aware of such po tentia l, the Cabuan Community Village Coastal Tour Association (CCVCTA) collaborated with the Department of Science and Technology and the Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development ( D O S T- P C A A R R D), S a n g k a likasan Producers Cooperative (SPC) and the provincial government of Camiguin in addressing coral degradation on the island through the government’s rollout of Coral Reef Restoration (asexual) Program. The CCVCTA, an organization registered with the Department of Labor and Employment (DOLE), is composed of 61 members. Its main objective is to monitor and strengthen the protection and conservation of coastal and marine resources in the barangay. The association embodies the people of Cabuan’s strong connection with the sea, spirit of

volunteerism, desire to adopt progress that is environmentally sound, and reclaim their identity as a people of the sea, hence its desire to adopt the Coral Reef Restoration Program. Having started in 2014, the Coral Reef Restoration Program rolled out a coral-transplantation technology using asexually reproduced corals to improve the productivity of coral resources for sustainable fisheries. C a m ig u i n, Bohol , Pa nga s inan, Sarangani, Bataan, Zambales, Palawan, Zamboanga del Norte and Ilocos Norte were chosen as restoration sites. The sites were selected based on their suitability for restoration; availability of sufficient amount of coral fragments for transplanting; and their location within the marine protected area. Dislodged live coral fragments or “corals of opportunity [COP]” are gathered and attached to coral nursery units (CNUs) so they can quickly recover and regenerate. Each CNU can hold 500 COPs per batch and can be used several times a year. Ingenious as it is, the technology uses marine epoxy clay, nails and cable ties. Louisa Smith Lao, a member

Members of the Cabuan Community Coastal Tour Association at the barangay’s coastal center. Sangkalikasan Producers Cooperative

and 3,000 COPs, respectively. This has helped in improving not only the coral reefs, but also the marine ecosystem, as evidenced by the increase in fish density and marine biodiversity. Aside from what have been restored, the program has also institutionalized certain mechanism toward a sustainable underwater tourism. For one it has initiated the Eco Dive Tourism Education and Briefing, DOSTPCA ARRD’s coral propagation main tool. It has also provided divers with the opportunity to experience coral restoration as an added feature of the dive. With the success of the technology in Cabuan, Louisa said, “Today, we are no longer just divers. We have the power to bring back life to the sea.” Ricardo R. Argana/S&T

of SPC, presented the organization’s accomplishment as a program collaborator during the Sixth General Assembly and Convention of the Philippine-Korea Rural Development Administration Alumni Association (PhilKoRAA) on September 29 and 30 at the DOST-PCAARRD Innovation and Technology Center (DPITC), in Los Baños, Laguna. Adopting the theme Technology Transmission to Community Transformation, the event highlighted the outcomes or impacts of technology-transfer initiatives in transforming communities. Lao’ said that with the DOSTPCAARRD program on coral restoration, 10 CNUs were designed through the DOST-funded Filipinnovation program and two SPC-designed CNUs have been deployed underwater with 5,000

Media Service

the activity, 200 seedlings of native tree species will be grown and later transferred to an RWM-adopted arboretum. These initiatives are part of RWM’s League of Volunteer Employees Program

designed to create a culture of volunteerism aligned with the company’s corporate social responsibility thrusts of promoting Philippine Tourism and the Arts, Social Development and Environmental Sustainability.

Living, loving green at Resorts World Manila

e s o r t s World Manila’s (RWM) employees are walking the environmental talk through the company’s Live and Love Green program. The program has already helped recover over 11 tons of recyclable materials for 2016. Now on its third year, RWM has collected over 65 tons of recyclables, such as cartons, used papers, aluminum cans, PET bottles, tarpaulins and old tires. The collec ted rec yclables, which would otherwise have just been discarded in a landfill, are donated to the Tzu Chi Foundation Philippines. There, the materials are processed and made into useful items— such as shirts and blankets—to be used in disaster-relief drives. “RWM is an environmentally sustainable organization that values the importance of conserving resources, preserving nature for the next generations, and reaching out to

victims of calamities,” said Owen Cammayo, RWM director for Corporate Communications. “We recognize that true corporate environmental advocacy can only be achieved with an interested and involved work force. Through programs like Live and Love Green, we are able to help instill genuine advocac y in our employees by encouraging them to be eco-aware both at work and at home.” Apart from its recycling efforts, RWM also recently participated in eco-awareness activities at the La Mesa Nature Reserve in Quezon City in cooperation with ABS-CBN Lingkod Kapamilya Foundation Inc.’s Bantay Kalikasan Program. Volunteer employees were given a crash course on environmental appreciation and conservation through a watershed trek, a lecture on local environmental efforts, and hands-on germinant planting. Through

A14 Monday, October 17, 2016 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

OBOR: China can’t be ignored

RESIDENT Duterte is making a historic visit to China. The Philippines will also be represented by a large number of local businesspeople from virtually all sectors of our economy.

As the trip begins, critics have lashed out at this move as they prefer closer relationships with other countries, as the Philippines expands its foreign and economic relations beyond the United States and Europe. The sentiments and fears of reducing dependency on Washington and increasing partnerships with nontraditional allies have been labeled as a “pivot to China”. Ordinary Filipinos are also suspicious about a closer relationship with China, particularly in regard to potentially weakening our claims in the West Philippine Sea. The President himself has said he will not insist on touching the Panatag Shoal issue during this trip. The main focus of President Duterte’s visit will be in areas of trade and investments. The Philippine government is hoping to seize the opportunity to score business deals and funding, especially in the areas of infrastructure and energy. Since the Philippines is in dire need of modern and efficient infrastructure, building closer ties with China may be the most sensible thing to do. China has made serious and vast commitments to investment in public infrastructure, both at home and overseas. While the United States is still considered as a “superpower,” China has spent more for infrastructure than the US and Western Europe combined. Reports said China is looking to spend $724 billion in the next three years. China’s boldest move in public infrastructure in the global arena is the “One Belt, One Road” (OBOR) initiative. China is connecting major countries along the ancient Silk Road route across Europe and Asia with modern railways, highways and ports. The ancient Silk Road was an important land route established 2,500 years ago that facilitated trade between the Roman Empire and East Asian empires until the 15th century. Its modern incarnation will provide a faster and cheaper way to move goods. Already, taking the full sea and land routes of OBOR, some $3 trillion of China trade since June 2013 has flowed over the route, more than a quarter of China’s total trade volume. Currently, goods between Europe and Asia are moved through the so-called Eurasia Land Bridge, which traverses through the current Russian Trans-Siberian Railway. While three weeks faster than maritime shipping, it is also 25-percent more expensive. Once completed, travel will be via high-speed rail between Xi’an, China and Germany with other side routes. Power plants, electricitytransmission facilities and oil-and-gas pipelines, covering 19 countries along the “Belt and Road” in 40 energy projects have begun. To date, China has also invested more than $51 billion in the countries along the OBOR route through the “Silk Road Fund” and the Asian Infrastructure Investment Bank. As of this writing, China has signed memoranda of understanding with 56 countries and regional organizations regarding OBOR. While the Philippines cannot be a direct part, our goods might someday flow to the rest of Asia and Europe using OBOR. Like it our not, China cannot be ignored. To be short-sighted and narrow minded about the “Red Dragon” will be a mistake. Since 2005

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OGETHER with a delegation of around 400 businessmen from the Philippines, President Duterte will be visiting China from October 18 to 21. This trip aims to strengthen the country’s trade relations with China, the Philippines’s secondlargest trade partner.

Aside from the Philippines’s biggest tycoons from various industries, President Duterte will also be traveling with Trade Secretary Ramon M. Lopez. Heads from various businesses from the Philippines, including those being led by families with ancestral roots in China, are joining the trip. The San Miguel group, Metro Pacific and PLDT Inc., the Lucio Tan group, SM group, the Oishi group, Zest-O group, Robinsons Land Corp. and the Sterling Group of Cos. are among those who will join the state visit to China. More than a hundred officers and members of the Federation of FilipinoChinese Chambers of Commerce and Industry will also be part of

this China trip. From this visit, the President expects to come back with billions of dollars in investments and loans, including opportunities in the trade sector. The conservative estimate is over $3 billion in funding commitments from China-based institutions and corporations. This figure could still go higher, according to Secretary Lopez, if other sectors, like infrastructure, transportation, communications and agriculture, are also considered. Chinese President Xi Jinping is ready to welcome President Duterte and his delegation next week. Geng Shuang, the Chinese foreign ministry spokesman, said the Chinese president and Premier

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Li Keqiang will be meeting with President Duterte to talk about ways to improve ties between the two countries. The improvement of our relations with China, amid the tension in the South China Sea, is a welcome reprieve not only for the economic sector but also for the entire Philippines. It is like hitting two birds with one stone, as the visit aims to promote peace and cooperation, as well as to renew and strengthen our trade relations with our Chinese neighbors. n n n THE National Economic and Development Authority (Neda) just released a report on the country’s total merchandise trade for the month of August. We enjoyed a 4.7-percent growth, with trade growing from $11.4 billion in July to $11.8 billion in August this year. Based on information from the Philippine Statistics Authority, this is being attributed to a “double-digit increase” in imports, which was at 12.2 percent. This was due to a good increase in consumer goods imports, as well as capital goods imports. Neda Officer in Charge and Deputy Director General Rosemarie G. Edillon urged the admin-

istration to diversify its export markets by exploring new markets, like Russia and Kazakhstan, which are showing some promise as potential consumers of our agriculture and industrial products. Emerging markets, like Kuwait, Mongolia and Malaysia, should also be considered. These suggestions may, indeed, be a good follow-up effort after President Duterte’s China state visit. The Neda further reports that the manufacturing sector also posted positive performance for the month of August. This is something to celebrate because the global economy has been generally weak, yet, the production of capital goods, as well as the growth in volume of export-oriented products continued to grow for the Philippines. Edillon said the local firms are expected to remain in expansion mode throughout the coming months. nnn

I would like to extend my warm birthday greetings to the General Manager of Philippine Charity Sweepstakes Office (PCSO) Gen. Alexander F. Balutan, who is celebrating his birthday today, October 17. Have a happy birthday and more days filled with happiness and success!

Using plebiscites to strengthen PPPs. Really?! By Alberto Agra

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State visit to China to bring investments to PHL

PPP LEAD Continued from A1 During the stakeholders’ meeting on P4 (PPP for the People) organized by the Department of the Interior and Local Government on October 7, this columnist raised the matter of holding a plebiscite as one way to strengthen and confirm PPP policies, contracts and projects. The unspoken reaction was: “Really?!” One of the challenges of farreaching policies and strategies, and long-term contracts, such as PPPs and P4, is the social risk. Civil-society organizations (CSOs) and ordinary citizens may assail the validity of the PPP arrangement or question the propriety of tariff adjustments. This happens if the parties to a PPP contract— the government and the private sector—do not involve CSOs as early as project identification, in

the selection process up to project implementation, including regulation and tariff setting. Reorientation is, therefore, needed. Communities, end-users, consumers, taxpayers and CSOs must be treated as clients, principals and stakeholders. They are indispensable partners in government projects. They are, or they should be, cochampions, copromoters and codefenders of PPPs. They must cocreate, coauthor and coown PPP contracts and projects. Aside from being cosignatories or witnesses to a PPP contract, being consulted in a public hearing for a PPP project or being voting members of the PPP-Selection Committee, we can, in a plebiscite supervised by the Commission on Elections, stamp our imprimatur. Under Republic Act 6735 (1989) and the 1991 Local Government

One of the challenges of far-reaching policies and strategies, and long-term contracts, such as PPPs and P4, is the social risk. Civilsociety organizations (CSOs) and ordinary citizens may assail the validity of the PPP arrangement or question the propriety of tariff adjustments. This happens if the parties to a PPP contract—the government and the private sector—do not involve CSOs as early as project identification, in the selection process up to project implementation, including regulation and tariff setting.

Code, a plebiscite is an electoral process whereby registered voters participate in an initiative or referendum. Initiative is the power to propose, enact, or amend, while a referendum is to approve, amend or reject a law or ordinance.

If a PPP law or ordinance, or ordinance approving a PPP contract is confirmed in a plebiscite, there are multifarious benefits. First, the people’s vote could be seen as the ultimate buy-in. Second, protester’s risk and lawsuits may be minimized. Third, in the case of local governments, any ordinance approved through the system of initiative and referendum shall not be repealed, modified or amended by the Sanggunian concerned within six months from the date of the approval thereof, and may be amended, modified or repealed by the Sanggunian within three years thereafter by a vote of threefourths of all its members. Fourth, in a plebiscite, the voice of the people will be heard and recorded. Fifth, the pros and cons of a PPP law and project will be ventilated during the campaign. But, regardless of the manner by which CSOs and ordinary citizens engage government in the PPP life cycle, the people must be part of the learning ecology. Without knowledge, there can be no meaningful constructive engagement on the part of the people. Let us all codetermine P4.

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The limitations of Jose’s rights

Expectations and realities in audit Conchita L. Manabat

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Atty. Lorna Patajo-Kapunan

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OSE and Maria fell in love and begot a child named Elvis. Jose meant to marry Maria but one day, but when the child was 3 years old, it became apparent that the couple could no longer repair their withered relationship. Jose and Maria’s breakup was acrimonious and there was no discourse on the arrangements with respect to Elvis. It is safe to say that Jose no longer loves Maria. However, he longs for his son. Jose has not seen Elvis since he was forced to leave the mother and child. He has since tried to reach out to Maria to discuss the rearing and custody of Elvis, but his efforts were met with sheer disappointment. Jose is determined to bring this matter to court for its disposal. It has to be clear to Jose, though, that since Elvis is an illegitimate child, parental authority over his person is vested with Maria. Article 176 of the Family Code is clear that illegitimate children shall be under the parental authority of their mother. Under Article 209 of the said Code, parental authority and responsibility shall include the caring for and rearing the child for civic consciousness and efficiency and the development of the child’s moral, mental and physical character and well-being. Given these responsibilities, custody over the child is given to whoever has parental authority over the child— Maria, in our example. However, this right is not absolute in view of the primary consideration given by the law to the well-being and best interest of the child. The custody over the child can be wrested from the mother if compelling reasons are shown that would render her seriously incapable of taking care of the child and attending to the child’s needs, such as neglect, abandonment, unemployment and immorality, habitual drunkenness, drug addiction, maltreatment of the child, insanity,

and affliction of communicable illness (Perez v Court of Appeals). Only when parental authority and custody is taken from Maria can Jose take her place. This is because in default of the mother, the custody of the child must be granted to the father, pursuant to the hierarchy provided by the law: “Article 216. In default of parents or a judicially appointed guardian, the following person shall exercise substitute parental authority over the child in the order indicated: (1) The surviving grandparent, as provided in Article 214; (2) The oldest brother or sister, over twenty-one years of age, unless unfit or disqualified; and (3) The child’s actual custodian, over twenty-one years of age, unless unfit or disqualified. Whenever the appointment or a judicial guardian over the property of the child becomes necessary, the same order of preference shall be observed.” While it may be argued that the grandparents should take the place of the mother of the illegitimate child, it must be noted that the law requires that it must first be in default of “parents”. It certainly does not distinguish as to the legitimacy or illegitimacy of the child. Absent such compelling reasons to deprive Maria of parental authority and custody over Elvis, Jose’s rights over Elvis is limited to visitorial rights. Should Maria deprive Jose access to Elvis, Jose may bring the matter to court to compel Maria to grant access to Elvis.

Is the Fed’s next decision on rates all about politics? By Adam Shell | TNS

HEN t he Federa l R e serve (the Fed) meets next month, the question of will they or won’t they hike interest rates will be clouded by the fog of presidential politics. The US central bank’s November 2 meeting is rife with juicy storylines, as the key question of whether they will boost borrowing costs for the first time in 2016 comes amid claims from Republican presidential nominee Donald Trump that the Janet Yellen-led Fed is playing politics with policy by keeping rates low to make President Obama look good and help rival Hillary Clinton win the election. Trump has said he will replace Yellen if he is elected. Yellen has defended the central bank’s independence, saying the Fed doesn’t talk about politics at its meetings nor do politics play a role in its policy decisions. Yellen also fended off criticism from a Republican lawmaker that Fed Governor Lael Brainard’s $2,700 contribution to Clinton’s campaign represented a conflict of interest. Amid this backdrop, investors still have to handicap what the Fed will do. Paul Hickey, cofounder at Bespoke Investment Group, recently went through a “theoretical exercise” in which he argued that a Fed rate increase at its November meeting—just six days before the November 8 presidential election—would help blunt criticism that the Fed is making policy with politics in mind. A November hike, Hickey theorized, would show “independence” and “reinforce [the

Fed’s] apolitical framework.” But poltiics and appearances aside, a November hike is unlikely. Futures markets are now pricing in just a 10-percent chance of a rate increase next month. Most of Wall Street bets are placed on December, when the odds of a rate hike jump to roughly 60 percent, according to CME Group. Boris Rjavinski, senior fixed income strategist at Wells Fargo Securities, says its extremely unlikely that the Fed would push rates higher simply to demonstrate its independence, adding that the next Fed rate increase will be more about the data and nothing to do with politics. “I don’t think they would hike purely for political reasons,” Rjavinski told USA Today. “To move in November they will need to see much stronger-than-expected data between now and the November 2 meeting. They would also need to prepare the markets for a November hike, as the market is not prepared for one, and the Fed does not like to surprise the market with its moves.” In an interview on Friday with CNBC Boston Fed President Eric Rosengren reiterated that interest rates should rise “slowly and gradually,” adding that the Fed has tended to change policy at meetings in which Yellen holds a press conference to explain the Fed’s thinking. The next Fed meeting when Yellen faces off with reporters is December. Rosengren says he is comfortable with the market’s current two-in-three odds of hike at the Fed’s final meeting of the year on December 14, warning that if the Fed waits too long to hike it “may mean a faster pace of increases down the road.”

Monday, October 17, 2016 A15

Numbers are axiomatic in terms of decision-making. Unless you have the right numbers you can’t be sure that you have evaluated your policy options correctly, and you can’t accurately report on the outcome of your decisions and, therefore, can’t be held accountable. —Fayez Choudhury International Federation of Accountants, as told to Public Finance International

HE major financial debacles in the United States in the past brought about significant reforms in the regulation of the accounting/auditing profession. The Enron and World Com incidents, among others, paved the way to Sarbanes-Oxley Act of 2002 that created the Public Company Accounting Oversight Board (PCAOB) to oversee the auditing profession. It ended the profession’s framework of self-regulation. Section 101 of the said Act sets the mission of the PCAOB, “…to oversee the audit of [public] companies…in order to protect the interests of investors and further the public interest in the preparation of informative, accurate and independent audit reports.” On August 31 Michael Rapoport of The Wall Street Journal reported that the PCAOB com-

pleted its annual inspections of 2015 audits by two of the Big 4 accounting firms. After probing on 55 audits per accounting firm, the US audit regulator found deficiencies in 13 audits (24 percent) by one firm, and 12 audits (22 percent) by the other. The other two Big 4 accounting firms will also be inspected by PCAOB. Rapoport explained that to

PCAOB, “a deficient audit indicates that the audit firm hasn’t obtained sufficient evidence to support its opinions blessing a company’s financial statements and internal controls. It doesn’t mean that the financial statements are inaccurate or that any problems found by the inspections weren’t subsequently addressed.” The article further said, “At both firms, accounting for revenue was one of the areas in which the PCAOB inspectors found the greatest number of deficiencies, according to the inspection reports.” According to the article, the inspectors further found deficiencies in accounting for inventory and long-lived assets in one accounting firm, while in the other, they found deficiencies in accounting for business combinations and for goodwill and other intangible assets. By any measure, more than 20 percent level of deficiencies is significant or material. As expected, one inspected accounting firm’s pronouncement after the release of the results said, “performing high-quality audits as its top priority and that it has ongoing investments to yield significant enhancements.” The other commented that it “remain[s] committed to advancing audit quality through our con-

tinued investments in technology, enhancements in processes and in the development of our people.” After sharing the foregoing with a colleague, he said, “Very revealing that quality of audit even in the US is spotty. I suppose the Philippine situation is not too different [maybe even worse]...” The comment is well founded for the major players in the auditing profession in the country represent the Big 4 and mid-tier international accounting firms. While the US has the PCAOB, the Philippines has yet to have a similar regulator, which can only happen by legislation since the accounting practice is governed by a specific law. It may still be a long way to go. Dr. Conchita L. Manabat is the president of the Development Center for Finance and a trustee of the Finex Development & Research Foundation. A past chairman of the International Association of Financial Executives Institutes , she now serves as the chairman of the Advisory Council of the said organization. She can be reached at clm@clmanabat.com 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

Libertarianism’s time has come and gone By Noah Smith BloombergView

TANFORD historian Ian Morris is fond of saying that “each age gets the thought it needs.” According to this maxim, ideas like the Enlightenment, communism or even Christianity are a product of the economic and political circumstances of their times.

It’s easy to believe that libertarianism might have been a good fit for the late 20th century. Coming out of World War II, governments were huge, bureaucratic and militaristic. The Soviet Union and Mao’s China were implementing particularly destructive forms of top-down economic management. It made sense to fight these forces with a philosophy that emphasized individual liberty and limited government. L i b e r t a r i a n i s m — at le a s t , the kind that most economists know—takes a stark, simple view of human relations. Individuals are atomistic entities, acting in voluntary contractual relationships. The government has a monopoly on all forms of violence, so only the government can compel people to do things not of their own free will. Any government intervention beyond the prohibition of violence, the protection of property, and the defense of the nation—sometimes called the night watchman state—is, in principle, an unacceptable infringement on personal liberty. This is an idealized version of the libertarianism preached by economist Milton Friedman and philosopher Robert Nozick. Plenty of people criticize libertarian values. For example, this perfect free-market utopia could lead to horrendous poverty. But most economists I talk to accept the basic framework. There’s only the government and the individual. The idea that there might be intermediate levels of power and violence between those two poles doesn’t often come up, or tends to be dismissed. But for people in the real world, t he idea of non- gover nment power is all too real. Organized crime dishes out plenty of violent coercion—just look at Mexico’s drug wars. Sports teams and fraternities haze their members. Plenty of assaults go unpunished by the cops. Nor is power always exercised through violence. Your church

might ostracize you from your community, forcing you to choose between moving away or enduring the condemnation of your neighbors. Your boss can force you to do menial tasks if he doesn’t like your haircut. Those are forms of power too. With multiple levels of power—what I once called local bullies—the neat and tidy universe of classic libertarianism breaks down. What if the government can intervene and stop a local bully from bullying? Would that make people more free, or less? This clearly came up in the civilrights struggle, where government forced businesses to cater to and to hire people of any race. Though a few libertarians decried the move, the vast majority of society believed that government enforcement of civil rights was leading to more individual freedom, not less.

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Economists have been slow to catch on to this idea, but there is some progress. Typical of this day and age, it usually comes not in the form of a flowery literary argument, but in a formal, mathematical model. A great example is a recent paper by top economists Edward Glaeser, Giacomo Ponzetto and Andrei Shleifer. The paper, titled “Securing Property Rights,” makes a very simple assumption: government isn’t all-powerful. No matter how much libertarians would like, it can’t perfectly secure property rights for everyone. Government enforcement is patchy, and rich people can often spend money to buy politicians and officials. Glaeser et al. use the simple, classic example of a mine owner who pollutes his land, leading to big losses for a nearby farmer. When government can’t perfectly enforce property rights, it needs to use regulation as a cudgel. Instead of forcing a mine owner to pay a farmer for the damages caused by the pollution, the government can make the economy better off by stopping the miner from polluting. So the weakness of government

in some areas makes a case for doing more intervention in other areas. Glaeser et al. show that it’s the failure of the night-watchman state that makes it necessary for the government to go beyond that simple role. Of course, this kind of formal model-based argument is likely to carry more weight with academic economists than with libertarians outside the profession. But it illustrates a basic flaw in the classic, 1960s-vintage libertarianism. Because the government is imperfect and flawed, it’s physically incapable of creating the idealized free-market utopia libertarians often imagine—and that makes the case for more government intervention than Friedman or Nozick might have liked. I think that libertarianism yielded many benefits in the 20th century. But in the 21st, people are starting to realize the limitations of the concept. We’re beginning to look for new political philosophies that preserve some of the character of the old ideas but accept a bigger role for government. Let’s hope this age will also, as Ian Morris says, get the thought it needs.

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Monday, October 17, 2016

House to pass ₧3.35-T natl budget on Oct. 19 By Jovee Marie N. dela Cruz

@joveemarie

RESIDENT Duterte recently certified as urgent the 2017 proposed General Appropriations Act (GAA), a leader of the House of Representatives said on Sunday. After the Palace’s certification, Majority Leader and PDPLaban Rep. Rodolfo C. Fariñas of Ilocos Norte said the P3.35trillion national budget will be passed on third and final read i ng on Wed nesd ay or before Congress goes on Halloween break. “The President has certified as urgent the 2017 proposed GAA. We will approve on third and final reading the 2017 General Appropriations bill on Wednesday before Congress adjourns,” Fariñas said in a text message. “Thus, it will be transmitted to the Senate during our break and ready for its consideration when we resume session on November 7,” the majority leader said. The proposed 2017 “budget for real change” was supposedly scheduled for approval when

₧2.48T The expected total revenue to be generated next year, equivalent to 15.6 percent of GDP

session resumes on November 7. House Committee on Appropriations Chairman and National Unity Party Rep. Karlo Alexi Nograles of Davao City said there is no major change in the National Expenditure Program, or the proposed 2017 national budget, submitted by Malacañang to Congress. Of the P3.35 trillion, 40.14 percent, or P1.34 trillion, will be for empowering human resources through education, health care, social welfare and

other social services. The 27.6 percent, or P923 billion, is for economic services to fix broken infrastructure network, boost agriculture and the rural sector, and generate more jobs and livelihood. The government will allocate 22 percent, or P729 billion, of its total budget ftor general public services and defense. The 2017 budget is higher by 11.6 percent than the current year’s budget of P3.002 trillion. As a percentage of GDP, the 2017 budget represents 20.4 percent compared to this year’s 20.1 percent of GDP. The total revenue next year is expected to reach P2.48 trillion, or around 10 percent more than the government target to collect this year. It is equivalent to 15.6 percent of GDP. The national government budget deficit next year is expected at 3 percent of GDP, or P478.1 billion. This shortfall is funded through borrowings. The total borrowings in 2017 will reach P631.3 billion. The GDP is expected to grow by 6.5 percent to 7.5 percent in 2017 through the sustained e x pa n sion of t he ser v ices and industry sectors, and the ex pected rebound of the agriculture sector. By department and special purpose allocations, the Top 10 allocations are for the Department of Education (DepEd),

P567.7 billion; the Department of Public Works and Highways, P458.6 billion; the Department of the Interior and Local Government, P150 billion; the Department of National Defense, P134 billion; the Department of Social Welfare and Development, P129.9 billion; the Department of Health, P94 billion; state universities and colleges, P58.8 billion; the Department of Transportation, P55.4 billion; the Department of Agriculture, P45.2 billion; and the Autonomous Region in Muslim Mindanao, P41.7 billion. The Department of Budget and Management said the allocation for each department, agency and sector was based on each government body’s needs. Earlier, Budget Secretar y Benjamin E. Diokno said the “ budget for real change” focuses on programs and projects that will help achieve the country’s 10-point socioeconomic development agenda. Diokno added that the Philippine economy is “deficient in all types of infrastructure.” He said the Duterte administration is committed to hike infrastructure spending from a low 5 percent to a high 6 percent to 7 percent of GDP next year. The government also wants to lift 10 million Filipinos out of poverty and transform the Philippines into an upper-middleincome country by 2022.

CASINOS REJECTED BY OUTLYING TAIWAN ISLANDS IN REFERENDUM

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esidents of Taiwan’s Penghu County voted against having casinos on the islands to attract tourists, dampening sentiment around legislation proposed to attract overseas investments to the area. It’s the second time since 2009 the outlying islands have rejected the construction of gambling developments. In a ballot asking whether to allow “recreational complexes” featuring casinos, 26,598 people voted “no”, compared with 6,210 who voted “yes”, the Penghu government said in an e-mail. President Tsai Ing-wen said this week her Democratic Progressive Party, which also controls the legislature, remains opposed to gambling developments and Penghu should look to develop tourism in other ways, government-backed Central News Agency reported on October 13. Meanwhile, lawmakers have yet to pass new implementing regulations, even after residents of Matsu voted in favor of gambling establishments in 2012. A Taiwan gambling ban on the outlying islands was repealed in 2009. Taiwan’s gross domestic product is forecast to grow 1 percent this year, according to economists surveyed by Bloomberg. That would be the slowest pace among the economies once known as the “Asian Tigers”, including Hong Kong, Singapore and South Korea. Tourism from China, Taiwan’s largest trade partner and historical political foe, has dropped since May, when Tsai took office. The Taiwan leader doesn’t accept Beijing’s one-China principle, which it considers to be a condition for normal relations. “People of Penghu have shown their collective will,” the ruling DPP said in an e-mailed statement on Saturday. “The government will work to help Penghu develop tourism with its own characteristics.” Billionaire Sheldon Adelson, who leads Las Vegas Sands Corp., and Francis Lui, deputy chairman of Hong Kong’s Galaxy Entertainment Group Ltd., had previously expressed interest in Taiwan if gaming were allowed. Bloomberg News

‘Ban on land conversion to harm PHL agriculture’ Continued from A1

Socioeconomic Planning Secretary Ernesto M. Pernia, Finance Secretary Carlos G. Dominguez III, Budget Secretary Benjamin E. Diokno, Trade Secretary Ramon M. Lopez and Robredo made this pronouncement in a position paper against the land-conversion ban. “Paradoxically, agriculture sector revitalization may suffer under this proposed policy,” the paper read. With the ban on land-use conversion, the government officials warned that land requirements may not be met for agriculture-based processing and manufacturing activities, which can help make food affordable, increase farmers’ incomes and generate export revenues. Pernia said the joint position paper against the landconversion ban has been transmitted to the Office of the President last week. The National Economic and Development Authority (Neda) said President Duterte approved the Department of Agrarian Reform’s (DAR) proposal for a two-year moratorium on land conversion, which disallows the conversion of agricultural land to nonagricultural uses. This was intended to support the country’s food-security program. “While we are one with DAR in finding ways to address the country’s food-security concern, food security has to be met through some other means,” Pernia said in his letter to the Office of the President. However, Robredo and the economic managers said they support the DAR proposal to create a task force that will assess the status of land-use conversion in the country and seek the necessary support of other implementing agencies. Instead of imposing a two-year ban, the position paper called for the implementation of national land-use regulation and the enactment of a National Land Use Law.

“In the immediate term, government must strictly implement existing laws, which already cover nonconversion of prime agricultural lands, lands subject to land reform, irrigated lands, protected areas and other areas nonnegotiable for conversion,” the position paper read. “In the medium-term, the legislature should enact a National Land Use Code that shall cover not only land-use conversion but also effective land administration. Further, a National Land Use Code will help reduce congestion in Metro Manila and other emerging metropolitan cities like Cebu and Cagayan de Oro,” it added. The position paper noted that the ban on land-use conversion will introduce more delays in reducing the government’s housing backlog, which the Housing and Urban Development Coordinating Council projects to reach more than 5.5 million units this year. The ban will also impede the development of resettlement and evacuation areas in disaster-stricken areas, which are mostly agricultural. “Simply put, this will delay improving the living conditions of millions of Filipinos with the increase in cost of land for housing. In short, the ban is antipoor,” it added. Earlier, militant party-list groups criticized Robredo and the economic managers for opposing the planned moratorium. Party-list Rep. Ariel Casilao of Anakpawis said the position of economic managers runs counter to the policy direction of the DAR, which was approved by President Duterte last month. “The Neda is actually contradicting the progressive direction of the Duterte administration. The opposition on the two-year land ban is a spoiler and is a slap in the faces of poor, landless farmers, especially in areas threatened by various land-conversion projects,” Casilao said.