Businessmirror october 27, 2016 by BusinessMirror

“I want to be friends to China. I do not need the arms, I do not want missiles established in my country, I do not need to have the airports to host the bombers.”—President Duterte, speaking in Japan, a country that hosts 50,000 US troops. He said he wants the Philippines to be free of foreign troops, possibly within two years. AP

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“It should be a lot of fun. I like playing against Rory, and I’ve never been to the Philippines.”—US Open champion Dustin Johnson, who, instead of ending his year in the Bahamas, is headed to the Philippines for an 18-hole match against Rory McIlroy geared toward raising money for charity. AP

“I don’t think any president has woken up and thought, and forgive me for saying it, ‘How do I screw Mexico?’”—Mexican President Enrique Peña Nieto, on how his administration has made mistakes, but that his efforts were in good faith. Peña Nieto has been battling low approval ratings since his controversial decision to meet with Republican candidate Donald Trump, who has suggested many Mexicans are criminals or rapists. AP

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Thursday, October 27, 2016 Vol. 12 No. 15

BPOs, private firms now on PNP’s drug-raid list 1.8M B By Rene Acosta

@reneacostaBM

usiness establishments where there is reported rampant use of illegal drugs, including businessprocess outsourcing (BPO) facilities, will be among the targets of the police in their refocused antidrug campaign.

This was disclosed on Wednesday by National Police (PNP) chief Director General Ronald M. dela Rosa, as the PNP targets other

inside

sectors that the anti-illegal-drugs drive Oplan Double Barrel has not covered yet. Among the business establishments that are now in the

The number of drug users and personalities targeted in the revised figures of the PNP

crosshairs of the planned operations are call-center offices and even terminals, where, reports said, employees are users of illegal drugs.Because call-center offices operate 24 hours a day, reports said, some call-center agents use methamphetamine Continued on A2

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OIL DECLINES AS U.S. SUPPLY SEEN RISING O

il dropped for a third, day after industry data showed US crude stockpiles expanded, as Russia reiterated it would prefer freezing output at current levels rather than cutting. Futures declined as much as 1.6 percent in New York, after closing below $50 a barrel on Tuesday for the first time in more than a week. US crude inventories increased by 4.75 million barrels last week, the American Petroleum Institute was said to report. Energy Information Administration data on Wednesday is forecast to show supplies rose. Output cuts are not an option for Russia, the nation’s envoy to Organization of Petroleum Exporting Countries (Opec) said, according to Interfax. Oil has fluctuated near $50 a barrel amid uncertainty about whether the Opec can implement the first output cuts in eight years and get producers outside the group to join in, notably Russia. An Opec committee will meet this week to try to resolve differences over how much individual members should pump, with Iraq saying it should be exempt because of conflict with Islamic militants. “Comments from Russia yesterday have added to the doubts in the oil market fueled by the comments earlier this week Continued on A2

NURTURE FARMACY: NURTURE THROUGH NATURE

Continued on A2

travel

‘THE GIRL ON THE TRAIN’: A BUMPY RIDE

DUTERTE MEETS ABE

President Duterte (left) is greeted by Japanese Prime Minister Shinzo Abe at the start of their meeting at Abe’s official residence in Tokyo, Japan, on Wednesday. Duterte said he wants the Philippines to be free of foreign troops, possibly within two years. Story on A4. Issei Kato/AP

show

Indians in game 1 STARTING pitcher Corey Kluber pitches for six scoreless innings and catcher Roberto Perez hammers two home runs. AP

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| Thursday, OCTOber 27, 2016 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao Asst. Editor: Joel Orellana

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INDIANS IN GAME 1 C

By Donald Blum The Associated Press

LEVELAND—Cleveland beat the Chicago Cubs, 6-0, in Tuesday’s opening game of the World Series, led by six scoreless innings from starting pitcher Corey Kluber and two home runs from an unexpected source in catcher Roberto Perez. In a match of teams with the majors’ longest championship droughts—Cleveland last won the World Series in 1948 and the Cubs way back in 1908—the Indians scored twice in the first inning off Cubs ace Jon Lester and were on their way. Chicago did threaten a comeback in the seventh inning. Trailing 3-0, the Cubs loaded the bases with no outs, but

Indians reliever Andrew Miller escaped the jam with a couple of strikeouts. Miller allowed another two base runners in the eighth, but again got out of strife to maintain the three-run buffer. In the bottom of the eighth, Perez hit a three-run homer to effectively seal the win. He became the first No. 9 hitter in a batting order to clear the fences twice in a World Series game. The Game One winner has taken the title in all of the past six World Series and 17 of 19. Francisco Lindor had three hits as the Indians improved to 8-1 in this postseason. Cleveland Manager Terry Francona is now 9-0 in World Series games, including sweeps by his Boston teams in 2004 and 2007. Trevor Bauer, trying to come back from a deep cut on

the little finger of his pitching hand, will start Game Two for the Indians on Wednesday against Chicago’s Jake Arrieta. Because the forecast called for an increased chance of rain later in the evening, Major League Baseball moved the start forward by an hour to 7:08 p.m. local time. Kluber struck out eight in the first three innings. He combined with relievers Miller and Cody Allen to fan 15. Lester, who had been 3-0 in three World Series, starts with a superb earned run average of 0.43, stumbled in the opening inning. Cleveland loaded the bases with two outs, Jose Ramirez had a run-scoring swinging bunt single and Brandon Guyer was hit by a pitch to make it 2-0. Perez, who had just three homers in 153 at-bats during the regular season, connected in the fourth for a 3-0 lead.

CLEVELAND STARTS FAST By Michael Silverman

Boston Herald

LEVELAND—Now the Cubs understand what the Red Sox and the Blue Jays already know too well. The 2016 Indians don’t take kindly to visitors, especially favorites, in postseason series openers. In Game One of the World Series last night, the Indians rather easily held back the top regular-season team in baseball, 6-0, to take the early lead in the battle of the droughtbusters—68 years for the Tribe, 108 for the Cubs. Roberto Perez, who had three homers all season, hit his second and third this postseason. Indians starter Corey Kluber dominated in six-plus scoreless innings, allowing four hits, walking none and striking out nine. Kluber was expected to be very good. So was Cubs starter Jon Lester, except he was not. Struggling with control, Lester surrendered three runs on six hits in 5 2/3 innings, walking three runs and striking out seven. Andrew Miller, the best reliever in baseball and the American League Championship Series Most Valuable Player, survived two innings of a tight-rope act, before Cody Allen closed out the win in the ninth. Manager Terry Francona, with two sweeps by the Red Sox on his résumé, is 9-0 in the World Series. Game Two takes place tonight, with the first pitch moved up one hour to 7:09 because of a forecast for showers. The Cubs will start Jake Arrieta, while the Indians will turn to Trevor Bauer. Kluber was brilliant, his eight strikeouts in the first three innings establishing a new World Series mark. He wasn’t perfect—Ben Zobrist led off the second with a double and Kyle Schwarber, added to the postseason roster earlier in the day, hit a long two-out double in the fourth—but he was close, confounding the Cubs with a mix of offspeed pitches and fastballs painted on the black. Francona finally lifted him in the seventh, after Zobrist led off with a single. Miller came in and created a mess for himself by allowing a walk and a single to load the bases. Then he cleaned it up. A flyout, followed by two strikeouts, preserved the 3-0 lead. Lester looked fine until the third batter he faced, Francisco Lindor. The short stop slapped a single to center, which seemed to rattle the normally tremor-proof lefty, who then issued two quick walks. Before that first walk, Lindor stole second base easily when catcher David Ross bobbled the ball. Jose Ramirez’s swinging bunt down the third base line drove in the first run and left the bases loaded. Lester bore down a little too hard, hitting Brandon Guyer with a pitch for the second Indians run. Guyer, who led all batters this season with 31 hit by pitches, did not flinch or attempt to get out of the way. Lester looked sharper in the second inning, but in the third, Lindor again singled. Everyone in baseball understands Lester is mentally incapable of throwing over to first base to keep a runner close. With one steal already, Lindor naturally took an enormous lead and then broke for second, as Lester stepped off the bag. Lindor stopped in his tracks. Most pitchers would toss the ball to first base for the easy pickoff, but Lester simply held onto the ball and stared Lindor back to the base. Lindor finally did attempt to steal and was caught on a strong throw by Ross and lightning-quick slap tag by second baseman Javier Baez. Lester did survive two more baserunners and struck out two. He even began the fourth inning with a strikeout before No. 9 hitter Perez smacked a laser shot just over the left field wall to put the Indians on top, 3-0. Perez, Red Sox fans will recall, began the three home-run barrage off of Rick Porcello in the third inning of Game One of the Division Series.

His drive in the eighth was his third homer this postseason. On a night of civic pride for Cleveland, the National Basketball Association’s Cavaliers received their championship rings next door prior to their season opener, and the city hosted a World Series opener for the first time. The Cubs had not played in the Series since 1945, five weeks after the end of World War II. Kluber improved to 3-1 in the postseason and lowered his ERA to a sparkling 0.74. He is on track to start Games Four and Seven in the manner of an old-style ace. He was pitching on six days’ rest this time, and his two-seam fastball was darting through the strike zone. He was helped by plate umpire Larry Vanover, whose generous calls on the low, outside corner contributed to 11 called

By Cai U. Ordinario

strikeouts, six against Cubs batters. Kluber struck out nine in six innings and walked none. He stranded Ben Zobrist after a leadoff double in the second and David Ross following a one-out single in the third. Chicago’s Kyle Schwarber, making a surprise return in his first big league game since tearing knee ligaments on April 7, doubled off the right-field wall in the fourth—a drive kept in by a stiff wind on a chilly night—but Javier Baez then flied out to end the threat. Miller, using his intimidating slider, struck out Addison Russell and David Ross to escape the bases-loaded jam in the seventh, then fanned Schwarber to strand runners at the corners in the eighth. Miller has thrown 20 scoreless innings in his career postseason play, including 13 2/3 innings with 24 strikeouts this year.

sports

Govt to exempt infra projects from local taxes in BOT law

@cuo_bm

he government plans to exempt infrastructure projects with “national significance” from paying local taxes, according to the National Economic and Development Authority (Neda). In a presentation in Japan, Socioeconomic Planning Secretary and Neda Director General Ernesto M.

PESO exchange rates n US 48.3170

Pernia said this is one of the amendments that are being proposed in the build-operate-transfer (BOT) law and its implementing rules and regulations (IRR). “After more than two decades since the enactment of the BOT program and law, which authorizes the financing, construction, operation and maintenance of infra projects by the private sector, the need to

PERNIA: “There are still gaps in maximizing the potential of PPP as a tool for promoting infra development and national progress.”

Continued on A2

n japan 0.4636 n UK 58.8984 n HK 6.2296 n CHINA 7.1270 n singapore 34.7729 n australia 36.9383 n EU 52.6172 n SAUDI arabia 12.8876

Source: BSP (26 October 2016 )

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A2 Thursday, October 27, 2016

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Start-ups require $4B in investments–study

By Catherine N. Pillas

@c_pillas29

he country’s start-up community needs $4 billion in investments from foreign and local sources in the next decade to allow the Philippine digital economy to hit $19 billion by 2025.

Reaching this potential, however, should be coupled with government regulatory reforms. T his was according to the collaborative study of Google and Temasek, titled “E-conomy SEA: Unlocking the $200-billion Opportunity in Southeast Asia,” the Philippine-specific findings of which were presented by Google

$28M

The amount of investments garnered by local start-ups in 2015

Philippines on Wednesday. “Out of the $200-billion digital opportunity in Southeast Asia by 2025, we see the Philippines’s share at $19 billion in a decade’s time. That’s more than 10 times the current value of $1.7 billion,” said Kenneth Lingan, Google Philippines country manager. The said study analyzed the potential digital ecosystem valuation of six Southeast Asian nations (Indonesia, Singapore, Malaysia, the Philippines, Thailand and Vietnam), studying three sectors of ecommerce, travel and media. According to the study, in terms of consumption, the trajectory of the digital economy will primarily be fueled by the e-commerce market in the Philippines and online travel expenditure. With 8 million Filipinos already shopping online, the e-commerce

market is specifically seen to grow at a compounded annual growth rate of 34 percent, to be valued at $9.5 billion in 2025, from an estimated worth of $ 5 billion last year. The online travel industry is seen to contribute $6 billion, with the remainder credit to media spending (online expenditures on ads and gaming). However, on the investment side, there is a need to infuse $4 billion in Philippine start-ups to drive the growth of the country’s digital economy. According to the study, investments of venture capitalists (VCs) have been “markedly muted” for the Philippines, with the deal flows amounting to only $28 million in 2015 out of the total $1.1 billion invested in Southeast Asia in 2015.

Of the total deal value, 88 percent were directed to Singapore and Indonesia. “Funding shouldn’t come only from foreign investors, local businesses should also look into funding these start-ups,” Lingan said. “A lot of the funding in terms of deal value in 2015—70 percent of them—are from the top 5 start-ups in Southeast Asia. So, there’s an opportunity to increase that funding for start-ups happening in the Philippines. We want to know how we can make the Philippines as an investment opportunity for these VCs,” he added. In terms of number of startups, the Philippines is also in the penultimate place, with only 400 start-ups compared to Indonesia, which has over 2,000 start-ups; Singapore, with 1,850; and Vietnam, with 1,541.

Minette Navarrete, president of Globe’s Kickstart Ventures Inc., said reforms in regulations are needed to help scale up Filipino start-ups, which are essentially micro and small enterprises, in the digital space. “We need to make a lot of policy changes,because if you look at our laws on taxation, and Securities and Exchange Commission regulations, all of those are organized around large, traditional corporations. The permit system in local government units is different per local government unit,” she said. Navarrete said that, while these laws are geared toward protecting consumers and establish the legitimacy of businesses, some of the policies are no longer in sync with the needs of start-ups in the digital economy.

BPOs, private firms now on PNP’s drug-raid list Continued from A1

hydrochloride, or shabu, to stay awake while at work. Aside from BPO offices, dela Rosa said the expanded Oplan Double Barrel Alpha would also cover factories and schools, and even the PNP organization itself. He said the Double Barrel Alpha was also implemented to sustain the momentum of the anti-illegal drive. “When the campaign reached 600,000 plus, it went into a plateau, and we encourage them [police commanders] to invigorate the campaign and it increased to 700, 000 plus, but it again slowed down,” dela Rosa said. “So in order that we could cover all [areas of concern], we decided to include other sectors of society. That way, we will reach our target of 1.8 million [individuals],” he added. Meanwhile, at least 54 celebrities, including well-known actors, are included on the latest list of personali-

ties allegedly involved in illegal drugs at the National Capital Region (NCR). NCR Police Office Acting Director Chief Supt. Oscar Albayalde said the names of the celebrities were included on the list that he submitted to dela Rosa. He said it would be up to dela Rosa whether he would submit the list to President Duterte, who may or may not decide to announce their names in public. “It’s up to the President. We just submit a list for his eyes also. It depends on him if he will make it public or not,” Albayalde said, adding that the list was based on the disclosures made by arrested personalities. “This came from those arrested who volunteered the information, so this has to be really validated thoroughly. If ever they are positive and validated, then we can file cases or file for search warrant,” Albayalde said. Among the personalities who have been arrested for drugs as of late were Mark Anthony Fernandez, Sabrina M and Krista Miller.

BEAUTIFUL FILIPINAS (From left) third runner-up Nova Christine de la Cruz; Solane Mother of the Year and Mrs. Philippines Globe Classic 2018 Annalyn Marie Gayatin; Mrs. Philippines Globe 2016 Fritzie Lexdy Noche; Mrs. Philippines Globe National Pageant Director Carla Cabrera-Quimpo; Mrs. Globe 2013 Sheryl Lynn Callister; Woman of Substance Timikko Santos; first runner-up Michelle Boyero; and second Runner Up Niezal Cayangan were all smiles during the coronation night of the Mrs. Philippines Global at the Samsung Hall of SM Aura on October 23. Stephanie Tumampos

Govt to exempt infra projects from local taxes in BOT law Continued from A1

improve the framework that governs PPP has surfaced,” Pernia said. “Amendments to the BOT law and its IRR are among the priority legislations intended to raise the efficacy of private-sector participation and to keep policies attuned to the changing business environment,” he added. Neda sources told the BusinessMirror that the proposed amendments, however, will still be presented and must be approved by the interagency Infrastructure Committee (Infracom). But if these are approved, it will exempt private companies undertaking PPPs from paying local taxes. Currently, local government units slap taxes on PPP projects. While the Constitution provides that “projects of national significance” be exempt from taxes, these have not been included in the BOT law and IRR. These are all part of the government’s

efforts, Pernia said, to improve PPP procurement. According to the Neda chief, other proposed amendments are the inclusion of new variants for contractual agreements, such as joint ventures, among others. “While the Philippine PPP program has received international recognition, there are still gaps in maximizing the potential of PPP as a tool for promoting infra development and national progress,” Pernia said. The country’s PPP Center was created in 2010 by the Aquino administration as an attached agency of the Neda. It is the main driver of the country’s PPP program and projects. As of October 2016, there are 14 PPP projects with awarded contracts, and three of these projects have been completed and are operational. Another four projects are currently under construction and seven projects are undergoing preconstruction.

OIL DECLINES AS U.S. SUPPLY SEEN RISING Continued from A1

from Iraq,” Jens Pedersen, an analyst at Danske Bank A/S said by e-mail. “That in turn has led the market to gradually price out the impact of a deal.” West Texas Intermediate for December delivery dropped as much as 80 cents to $49.16 a barrel on the New York Mercantile Exchange, and was at $49.21 at 10:02 a.m. in London. The contract fell 56 cents to $49.96 on Tuesday, the lowest close since October 17. Total volume traded was about 32 percent below the 100-day average. Brent for December settlement lost as much

as 77 cents, or 1.5 percent, to $50.02 a barrel on the London-based ICE Futures Europe exchange. Prices closed down 67 cents at $50.79 a barrel on Tuesday, the lowest settlement since September 30. The global benchmark traded at a 88-cent premium to WTI. Crude stockpiles at Cushing, Oklahoma, the delivery point for WTI and the biggest US oil-storage hub, dropped by 2.26 million barrels last week, the API said on Tuesday, according to people familiar with the figures. Nationwide crude inventories probably increased by 2 million barrels, according to the median estimate in a Bloomberg survey before the EIA report. Bloomberg News

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A4 Thursday, October 27, 2016

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Duterte wants foreign troops out in 2 yrs

resident Duterte, speaking in a country that is a staunch United States ally and hosts 50,000 American troops, said on Wednesday he wants his country to be free of foreign troops, possibly within two years. “I want to be friends to China,” he told an audience of businesspeople in Tokyo. “I do not need the arms. I do not want missiles established in my country. I do not need to have the airports to host the bombers.” He was referring to visiting US troops, whose presence in five Philippine military camps was established under a security deal signed under Duterte’s predecessor as a counterbalance to China’s growing military assertiveness in the region. Since taking office at the end of June, Duterte has reached out to Beijing while criticizing US foreign policy. His approach has caused consternation in both the US and Japan. Japanese Prime Minister Shinzo Abe is expected to ask Duterte about his foreign policy when they meet later on Wednesday. In his speech, the Philippine leader departed at the end of his prepared remarks on economic development and investment to address the topic that he said he knows is “what

We will survive without the assistance of America, maybe a lesser quality of life, but as I said, we will survive.” —Duterte is in everybody’s mind.” He said he is pursuing an independent foreign policy, and that he wants foreign troops to leave, maybe in the next two years. “I want them out,” he said. “ I m ay h ave r u f f le d t he feelings of some, but that is how it is,” he said. “We will survive

without the assistance of America, maybe a lesser quality of life, but as I said, we will survive.” Duterte is on a three-day visit to Japan. After meeting Abe, he is attending a banquet hosted by the Japanese leader. On Thursday he is set to meet Emperor Akihito. Senate Minority Leader Ralph G. Recto said the government must be ready to fill the logistical void in quick disaster response that is likely to ensue from the Duterte

administration’s decision to mothball the Philippines’s Enhanced Defense Cooperation Agreement (Edca) with the US. While the senator clarified he was not against Duterte ditching Edca, Recto said Philippine authorities should be prepared to “finance and fill whatever logistical void is left by visiting American troops, recalling their role as “first responders” in typhoons and calamities that hit the country.

Recto said, “The vacuum will be felt more in disaster-relief operations, because in many typhoons in the past, Americans have been the first responders, even sending entire carrier battle groups to help in rescue and reconstruction.” He asserted that in the era of climate change, with its powerful typhoons, “we need all the help we can get due to our lack of resources to airlift aid to damaged places.” Recto recalled that in the af-

termath of Supertyphoon Yolanda (international code name Haiyan) in November 2013, the US military sent the USS George Washington carrier strike group, dispatched 13,400 personnel, including Marines in two ships, deployed 66 aircraft and 12 other ships. He added that in June 2008, the USS Ronald Reagan carrier strike group also parked itself in the Visayan Sea to bring aid to victims of Typhoon Frank. AP, Butch Fernandez

PHL pledges rational policy as peso falls

inance Secretary Carlos G. Dominguez III brushed off concerns about a sliding currency and weakening investor sentiment, pledging the government will take rational action on the economy. The peso’s 2.4-percent decline against the dollar this year—the worst performance among Asian currencies after the yuan— doesn’t worry authorities as much as an “abrupt drop” in the exchange rate, he said in an interview in Tokyo on Wednesday. “What would concern me is an abrupt drop,” Dominguez said. “The rate of change is the most important. If it is orderly, if it is rational, it is OK.” Dominguez, who is accompanying President Duterte on a state visit, acknowledged that some investors, including those in the outsourcing industry, are nervous with the new administration and its ap-

DOMINGUEZ: “We will do rational things that are to...the benefit of everybody.”

proach to diplomacy. “Yes, we understand that and we will hold their hands through the process,” he said. “We will do rational things that are to their benefit. To the benefit of everybody.”

Philippine officials are stepping up the defense of the administration’s economic and foreign policies, seeking to assure investors rattled by Duterte’s fiery rhetoric that includes “separation” from the US. The American Chamber of Commerce of the Philippines on Wednesday said it has received a large volume of messages from investors asking for explanations and whether their investment and visits to the country are still welcome. Japan fits in the center of the administration’s foreign-policy rebalancing as a valued trade partner, Dominguez said. Japan’s aid to the Philippines, the nation’s largest donor, does not come with political strings attached, he said. “Other countries do that, and we think that’s offensive to our culture,” he said. Bloomberg News

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Chinese arrivals fell 20% in August on sea ruling By Ma. Stella F. Arnaldo

@Pulitika2010 Special to the BusinessMirror

HE Philippines smarted from a slowdown in visitor arrivals in August 2016, as tourists retreated from the country’s crappy monsoon weather.

Data from the Department of Tourism (DOT) showed total visitor arrivals eking just a 2.66-percent rise to 502,739 arrivals from 480,689 in August 2015. On a monthly basis, the August 2016 arrivals slipped by 10.4 percent from July’s 560,872.

502,739 The number of tourists that visited the country in August, up 2.66 percent

The largest hit were arrivals from China, which plunged by 20 percent to 61,766 from 81,45 arrivals in July 2016, as a result of the ruling by the Permanent Court of Arbitration (PCA) at The Hague on both countries’ dispute over the South China Sea. Even on an annual basis, Chinese arrivals in August 2016, were down by 5.6 percent, from the 65,403 who arrived in August. This was a marked turnaround from the 62.03-percent jump in Chinese arrivals in August 2015, from August 2014. Over P20 million in losses were posted by hotels in Cebu, Bohol and Boracay in August due to the cancellations by Chinese tourists and travel agents heeding their government’s informal ban on travel to the Philippines. Even chartered flights with major Philippine carriers, such as Philippine Airlines and AirAsia Philippines, coming from several points in China were canceled due to the PCA’s ruling. See “CAB confirms more f light cancellations from China,” in the BusinessMirror, July 27, 2016. DOT officials, however, expressed hope that Chinese arrivals would pick up now that the Beijing government lifted its ban on its citizens traveling to the Philippines. The lifting of the travel advisory was among several agreements reached during President Duterte’s meeting with his Chinese counterpart, Xi Jinping, at the Great Hall of the People on October 20. Overall, there was general downtrend in tourist arrivals in August 2016, with other major markets also recording drops in visitor arrivals from July 2015. The largest decreases were posted by India, down 28.33 percent to 6,595 arrivals; followed by the United States, down 26.5 percent to 55,080; Canada at 10,104 (-19.54 percent); the United Kingdom at 13,682 (-19.42 percent); Australia at 15,575 (-19.02 percent); and Hong Kong at 9,142 (-14.34 percent). Other countries that sent less tourists to the Philippines in August 2016 were Malaysia (-10.08 percent); Taiwan (-10.03 percent); and Singapore (-1.02 percent). Only Korea and Japan sent more tourists in August 2016 compared to July 2016; Japan up by 40 percent to 62,054 arrivals and Korea tourists 3.4 percent to 147,588. In a text message to the BusinessMirror, DOT Assistant Secretary Rolando Cañizal explained: “Historically, August is a lean period for arrivals of international tourists in the Philippines. Most of them are preparing for school openings, as in the United States. Climate is also a factor for deciding to travel.” But he stressed that “the single-digit growth [from August 2015 to August 2016] is manageable. We expect September arrivals to be in the single digits, as well.” From January to August 2016, total visitor arrivals increased by 12.5 percent to 4.04 million, still buoyed by higher arrivals from visitors in the earlier part of the year. Visitor receipts, or the amount earned by the local tourism industry from the spending by foreign tourists, increased by some 8 percent to P164.25 billion. For August alone, visitor receipts dropped by 28.6 percent to some P15.7 billion in August 2016, primarily due to the lower visitor arrivals for said month. The foreign visitors were estimated to have spent about P4,095.32 every day, with each visitor spending P39,519.79 during the entire length of their visit in August. The foreign visitors also stayed an average of 9.65 nights for that month. Visitor arrivals from mainland China, in particular, grew by 50.3 percent to 484,567, which was the highest growth rate registered among the Philippines’s source countries for tourists. In terms of total headcount, Taiwan was another highgrowth market, with arrivals increasing by some 30.6 percent to 157,517 in the eight-month period. India was the thirdlargest growth market, expanding by some 24 percent to 60,091 in visitor arrivals. On the other hand, several source markets posted dips in visitor arrivals, such as Singapore (down 1.4 percent), Malaysia (down 8.53 percent) and Hong Kong (down 2.8 percent). In absolute terms, however, South Korea still remained the top source of visitor arrivals, growing by 8.3 percent to 976,499 and accounting for 24.16 percent of the total arrivals from January to August 2016.

It was followed by the United States, which grew almost 10 percent to 584,149 visitor arrivals, representing 14.45 percent of total arrivals. In third spot was China, followed by Japan with 367,144 arrivals, up 9.63 percent from the same period last year. The latter accounted for 9.08 percent of total inbound traffic. Australia came in fifth place, with arrivals rising by 5.17 percent to 161,016, almost 4 percent of total market share. Others were Taiwan; then Singapore at 120,241 visitor arrivals; the United Kingdom at 117,535 (up 13.5 percent); Canada at 114,074 (up 11.52 percent); Malaysia at 95,129; Hong Kong at 81,332; and India. The DOT aims to attract some 6 million foreign visitors this year.

Asean A6

BusinessMirror www.businessmirror.com.ph

Thursday, October 27, 2016 • Editor: Max V. de Leon

Najib seeks election-funding overhaul after donations row

alaysian Prime Minister Najib Razak will consider a ban on foreign political donations that would potentially prevent a repeat of the funding scandal that has shadowed his administration for more than a year. Other proposed reforms include allowing unlimited donations from Malaysian citizens or companies, and mandatory identity disclosure for donations above 3,000 ringgit ($722) a year. The changes were recommended by a committee set up last year by Najib. “The laws that are in existence in governing political activities in the area of expenditure and financing are very lax,” said Committee Chairman Paul Low, who is also minister in charge of governance, integrity and human rights. Low added that if such rules were in place a few years earlier, it would have prevented the political furor surrounding past donations to Najib. “Straight away foreign funds are not allowed,” Low said in an interview last week in his office. Najib has said he received a “personal contribution” of $681 million from the Saudi Arabian royal family in his bank accounts before the 2013 general election. Cleared by Malaysian investigators earlier this year of any wrongdoing, Najib said he later returned $620 million. US investigators allege at least $700 million was siphoned from Malaysian state fund 1Malaysia Development Bhd. into accounts controlled by a top Malaysian official whose description fits Najib.

‘Quite pervasive’

The push to overhaul Malaysia’s campaign finance laws has gained momentum since 2008, when Najib’s Barisan Nasional coalition lost

The laws that are in existence in governing political activities in the area of expenditure and financing are very lax.” —Paul Low its two-thirds parliamentary majority for the first time after more than five decades of uninterrupted rule. Low had proposed a similar regulatory framework for donations when he was president of Transparency International Malaysia, and was appointed by Najib to the Senate, following the 2013 election. “Because it’s unregulated, money politics becomes quite pervasive, both in terms of election, as well as party politics and you hear of so many abuses,” Low said. “When money becomes the pervasive factor in determining who gets elected and who [does] not get elected, then you might not get the right candidate.” “The status of the report is very straightforward: it depends on whether the prime minister wants to do it or not,” said Wan Saiful Wan Jan, head of the Institute for Democracy and Economic Affairs, who also

Asean-EU Perspective

HENRY J. SCHUMACHER

NAJIB

sat on the committee that produced the report.

Misleading, hypocritical

A spokesman for Najib, who has consistently denied any wrongdoing over donations, said the premier first proposed detailed reforms of political funding in 2010, shortly after taking office, but those changes were blocked. “The opposition’s allegations on political funding are, therefore, misleading and hypocritical, as it was they who prevented reforms in the first place,” Najib’s press secretary Tengku Sariffuddin said in an e-mail. He said Najib had instructed the government to revisit the issue to ensure a regulatory framework is in place. “The committee’s recommendations will be presented to parliament for transparent cross-party debate.”

Depositing donations

Najib’s coalition spent more than 1.5 billion ringgit in the 2013 election, Malaysiakini reported in March, citing Idris Haron, chief minister of Malacca state. Malaysia has caps on how much individual candidates can spend contesting a seat, but there are no such limits on parties. Low said if the committee’s rec-

ommendations were accepted then government-linked corporations, and beneficiaries of government contracts, would be barred from making campaign contributions and politicians would be required to deposit all donations in a special account. Political parties and politicians would have to submit detailed expenditure reports to an independent controller. He said the framework would extend beyond campaign periods. He added that he expected a proposal to disclose the identity of those giving more than 3,000 ringgit would lead the opposition to say it could deter potential donors for fear of retribution from the government of the day. “I think there are some good elements, but there are also some major shortcomings,” opposition Democratic Action Party lawmaker Ong Kian Ming said, citing a proposal to allow unlimited donations as one area of concern. “Even in most developed countries like the US and other places they have a limit on how much one person or company can donate,” Ong said. “Obviously the party that’s in power would be able to attract much more donations compared to opposition parties,” Ong said, adding that it could be subject to abuse. Bloomberg News

Asia’s strongest currency adds to challenges facing Thailand

aced with a yearlong mourning period for King Bhumibol Adulyadej that’s set to curb spending, Thailand’s economy also confronts a new challenge: a resurgent currency that may hurt exports just as the industry is showing some signs of recovery. The prospect of an orderly royal succession has stoked a 1.6-percent appreciation in the baht against the dollar since the king’s death on October 13—the biggest climb in an Asian currency basket tracked by Bloomberg. The baht has strengthened 3 percent this year. Exports fell in all but six of the 24 months through August, customs data show, and probably declined again in September, according to a Bloomberg News survey. The export industry was in decline, even before the currency gains. Political upheaval, the rise of manufacturing rivals, such as Vietnam, and weak global demand put the brakes on a sector that makes up about 70 percent of GDP. The $395-billion economy, Southeast Asia’s second-largest, exports everything from electronics and cars to rice and rubber. “That the global economy remains sluggish is also a hurdle, which explains the struggle faced by many export-dependent economies,” said Gundy Cahyadi, an economist at DBS Group Holdings Ltd. in Singapore. “Beyond

1.6%

The percentage rise in the value of baht against the dollar since October 13

that, Thailand also needs to think about its competitive edge given the rise of the manufacturing sector in the likes of the Philippines and Vietnam.” The baht weakened 0.4 percent against the dollar to 35.024 as of 11:40 a.m. in Bangkok on Wednesday. Goods exports probably slid 1.3 percent in September from a year earlier, according to a Bloomberg News survey ahead of a report due on Wednesday. They unexpectedly climbed 6.5 percent in August, following a surge in vehicle shipments. Thailand’s ruling junta declared a year of mourning for Bhumibol, who was a symbol of unity in a country that saw 10 coups during his time on the throne, the last in May 2014. Junta leader Prayuth Chan-Ocha has said elections could happen again from late 2017.

Are all industry sectors ready to take advantage of Asean integration?

IN this October 22 photo, Thai mourners sing a special version of Thailand’s royal anthem in honor of King Bhumibol Adulyadej in front of Grand Palace in Bangkok, Thailand. King Bhumibol died on October 13 at the age of 88. AP

Bank of Thailand officials have said some industries relying on domestic consumption may be affected during the mourning period, but that overall, the economy’s fundamentals remain sound. The central bank has kept its benchmark interest rate unchanged since lowering it to 1.5 percent in April 2015, even with inflation close to zero and calls from the International Monetary Fund for looser policy to spur expansion. “We don’t expect a rate cut, despite calls for the Bank of Thailand to slow the pace of baht appreciation,” said Tim Leelahaphan, a Bangkok-based

economist at Maybank Kim Eng Securities Thailand Pcl. Central bank Governor Veerathai Santiprabhob said last week the economy is recovering, cushioned by a robust financial system, low unemployment and a healthy fiscal position. Annual GDP growth is running at just over 3 percent. That compares with a yearly average of 7.5 percent in a decadelong boom to 1996, according to the World Bank. A push to make innovation and technological creativity bigger engines of expansion, called Thailand 4.0, remains a work in progress. Bloomberg News

he name of the game is competitiveness. Philippine companies— as all firms operating in Asean—must find the means of enlarging their economic position, alone or in partnership with other regional or international firms. European Union companies, leading in technology, are ready to go into partnerships, as business opportunities arise in the Philippines and in Asean. Let’s look at some sectors: n Mining and quarrying. Asean member-states are mineral rich and mining is playing an increasingly important role in the Region’s economic growth. In Indonesia Southeast Asia’s largest economy, mining accounts for 12 percent of GDP. Asia’s locomotive economies continue to drive Asean’s fast developing mining sector—unfortunately not in the mineral-rich Philippines. It is still trusted that the Duterte administration will fully implement and enforce the provisions of the existing Mining Act, maintain an internationally competitive fiscal regime for mining, and ensure consistency of local ordinances with regulations, decisions and policies of the national government. n Transport. Southeast Asia, a region of around 600 million people, with a combined GDP of $2.1 trillion, is not only a vast and developing market, it is also bound by the dynamic economies of China, India, South Korea, Japan and Australia. Facilitation of trade is vital for all Asean countries, which occupy an area at the heart of these leading global manufacturers. Trade among member countries themselves is steadily increasing with intra-trading expected to increase to 30 percent of total trade. As a result, transport and logistics have become big business in Southeast Asia, with some 275 publicly listed companies involved in the sector. Their total combined revenues reached $140.8 billion. For the Philippines, this means to accelerate the implementation of transport public-private partnerships and overcome legal objections swiftly; the Philippine government has to address cost, quality and competitiveness issues in logistics. n Aviation. The aim of the Asean Single Aviation Market is to foster a competitive airline industry and propel the Region’s carriers into the global market. It is a strategy that seeks to increase market access, establish central authorities and industrial standards, for a sector that is undergoing unprecedented expansion. Open skies will yield a host of opportunities for Asean members by removing obstacles to growth, such as restrictive airspace and route constraints. In the Philippines the decision has to be made to expand Clark and modernize the Ninoy Aquino International Airport, provide night-landing equipment to 14 airports and improve civil-aviation regulation. n ICT. Sustained investment in information and communications technology (ICT) is proving to be one of the most potent drivers of development for emerging economies. The strong focus on ICT development is having a significant impact on the Asean region. There is a master plan to deliver ICT as an engine of growth for all memberstates and to establish the Region as a global communications hub. The Philippines telecoms and information-technology market is estimated to contribute more than 10 percent to the country’s GDP, boosted by the exponential development of mobile-data distribution. The Philippines is a leader in business-process management and will have to improve its telecoms infrastructure/broadband if it wishes to maintain that position. It is good news that finally the Department of Information and Communications Technology is created in the Philippines. n Health care. Health spending in Southeast Asia is expected to double in real terms over the next decade, outstripping GDP growth, as governments seek to improve standards and widen the scope of care available. There are wide variations in the Region. Several Asean members have passed laws to establish national health insurance systems and mandated universal coverage, including the Philippines. An integrated Asean market in health care consisting of harmonized standards, registration and evaluation, mutual recognition of qualifications and cross border cooperation greatly expand regional healthcare facilities, stimulating growth of a vital sector. The Philippines has to move fast to create a more decisive Department of Health and allow the Food and Drug Administration to play the professional role it needs to play in an expanding market. Asean integration offers challenges and opportunities. Let’s make sure we master both!

Kerry: US, Vietnam committed to rule of law in South China Sea

ecretary of State John Kerry says the United States and Vietnam share a commitment to rule of law in the disputed South China Sea. Kerry was speaking ahead of talks on Tuesday with a top figure in Vietnam’s ruling communist party, Executive Secretary Dinh The Huynh (din tay hwin). Vietnam is among governments claiming territory in the South China Sea, where China’s assertive

behavior and land reclamation has stirred tension. The meeting comes five months after President Barack Obama visited Vietnam and lifted restrictions on arms sales to the former US enemy. It also takes place as longstanding US ally in Southeast Asia, the Philippines, is strengthening its ties with China. Kerry said he and Huynh will also discuss human rights—still a sore point in US-Vietnam relations. AP

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UN chief says including women in peace negotiations pays off

NITED NATIONS —Making sure women are a key part of negotiations to end conflicts pays off in longerlasting peace deals, Secretary-General Ban Ki-moon said on Tuesday. The UN chief cited one finding among many: “Peace accords are 35 percent more likely to last at least 15 years if women are at the table.” Ban told the UN Security Council that “more women than ever before are making decisions for peace and security in the halls of governments and international organizations”, citing the Colombia peace talks. However, the secretary-general expressed anger at the meeting on Women, Peace and Security that women continue to be excluded and ignored in many peace processes, humanitarian programs and peacebuilding plans. “Look at the pic tures of peace negotiations on Syria or Yemen,” Ban said.

“There may be one woman at the table or in the delegation. This is fully representative of the general picture.” The secretar y- general urged the Security Council to put women and girls at the center of UN peace operations, and to consider ways to make peace negotiations more diverse. “After more than five years of advocacy, this has not happened,” he said. “Clearly, new ideas and stronger action are needed.” Phumzile Mlambo-Ngcuka, the head of UN Women, told the council that on the plus side, the percentage of peace agreements containing provisions on gender equality has increased from 22 percent to 70 percent in the last five years. But she said that in Mali, there was only one woman out of 62 members of the committee in charge of monitoring and implementing the West African nation’s peace agreement. AP

Thursday, October 27, 2016

Belgium stretches talks on EU-Canada trade deal

RUSSELS—Belgium is stretching talks to convince its region of Wallonia to give the necessary backing to a trade deal between the European Union (EU) and Canada into the eve of a summit to sign the landmark agreement.

The diplomatic cliffhanger deciding whether Canadian Prime Minister Justin Trudeau will be coming to Brussels for a celebratory summit now depends on last-ditch talks resuming early on Wednesday. Belgian Foreign Minister Didier Reynders said after discussions that stretched late into Tuesday evening that the national and regional governments “worked very well” to get closer to a compromise. Both sides hoped to find enough common goodwill to be able to put a new text to the 27 other EU nations that would succeed in pushing through

a deal seven years in the making, Reynders said. The trans-Atlantic trade deal needs unanimity among all 28 EU nations, but Belgium is withholding its signature because it also needs all of its regions to back it. Wallonia so far has resolutely refused to do so. With Thursday’s EU-Canada summit drawing close, the pressure on Wallonia is increasing by the day. The region’s leader, Paul Magnette, has refused to cave in to ultimatums. So far, three deadlines for Wallonia to sign on to the deal have come and gone over the past 10 days. AP

Thursday, October 27, 2016 • Editor: Lyn Resurreccion

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Intel chief: Getting N. Korea to give up nukes a ‘lost cause’

Andras Muranyi (center), editor in chief of the Hungarian oppositional political daily newspaper Nepszabadsag and workers stand together as they are trying to get into the headquarters of Nepszabadsag in Budapest, Hungary, on October 9. AP

Publisher of suspended leftist newspaper sold

UDAPEST, Hungary—A company linked to an ally of Hungary’s prime minister said on Tuesday it had acquired the publisher of the main opposition newspaper, which suspended publication two-and-a-half weeks ago.

T he Opimus Group said it bought 100 percent of the shares of Mediaworks Hungary through its fully owned Opimus Press subsidiary at an undisclosed price. Mediaworks was owned by Vienna Capital Partners, belonging to Austrian businessman Heinrich Pecina. Opimus has been linked to Lorinc Meszaros, a former gas fitter whose businesses greatly expanded with the help of large state contracts. He has attributed his success partly to his friendship with Prime Minister Viktor Orban. The deal, announced on the web site of the Budapest Stock Exchange, seemed to confirm concerns that the sale of Mediaworks, publisher of the leftist Nepszabadsag and many other newspapers and magazines, would further diminish

press diversity and increase the influence of Orban’s government over Hungarian media. “A huge media company has just gotten closer to [Orban’s] Fidesz party,” said Gabor Polyak, a lawyer who leads the Hungarian watchdog group Mertek Media Monitor. Poly a k noted t h at t he 12 county papers in the Mediaworks portfolio, which also includes sports daily Nemzeti Sport and business daily Vilag gazdasag, reached an audience that does not usually rely on independent, online news sources. “With the local newspapers, they are acquiring a very important group of readers,” Polyak said. Nepszabadsag is unlikely to be revived, even as a right-leaning paper as some observers have as-

sumed, since two other pro-government daily newspapers already are on the market, Polyak said.

Strong state influence

IN the last few years, several other publications and radio and television stations have been set up by Orban’s inner circle or have come under its control, and now show an unquestioning, pro-government bent. Vienna Capital Partners said the permanent closure of Nepszabadsag “was at no time an option” and that it sold Mediaworks to Opimus because “it declared an interest and preparedness to seriously review the relaunch, as always planned by us, of the temporarily suspended Nepszabadsag.” “We hope that the new owner will be successful...in solving the current issues at Nepszabadsag,” VCP said in a statement on its web site. The last issue of Nepszabadsag for now appeared on October 8, when Mediaworks surprisingly suspended publication because of the paper’s falling readership and losses of over 5 billion forints ($17.6 million) since 2007. US-based media watchdog Freedom House, whose 2016 report categorizes media in Hungary as “partly free,” said the deal reflected

the government’s growing influence over media matters. “Hungary’s government uses ownership as a political tool to silence critical coverage,” said Robert Herman, Freedom House’s vice president for international programs. “The EU [European Union] and the United States should forcefully condemn this attack on the press.” Egyutt (Together), a small opposition party, said that as a result of the purchase of Mediaworks, Hungary’s “freedom of the press is being eliminated at a [Vladimir] Putin- and [Recep Tayyip] Erdogan-like tempo,” in reference to the presidents of Russia and Turkey. Since returning to power in 2010, Orban has exerted strong state influence over practically all aspects of Hungarian life. The government has extended its business activities, from textbook publishing to energy supplies, and state media, always under political control to some degree, has been turned wholeheartedly into a government propaganda machine. In the midst of the migrant crisis, Orban has also taken to emphasizing the Christian values of Hungary and Europe in contrast with the many Muslims reaching the continent. AP

Oregon weighs whether all kids should get outdoor education

OUNT HOOD NATIONAL FOREST, Oregon—Each year, thousands of Oregon parents hug their kids goodbye and send them tramping into the wilderness for up to a week to learn about their state’s natural wonders. The Outdoor School program was groundbreaking when it started more than a half-century ago. Since then, more than 1 million children have enjoyed— or endured—this rite of passage at campsites scattered from Oregon’s stormy coast to its towering evergreen forests to its rugged high desert. At the program’s heyday, 90 percent of sixth-graders spent the week testing water samples, studying fungi and digging through topsoil. Today, just half of Oregon’s 11- and 12-year-olds take part, mostly through a patchwork of grants, fund-raising, parent fees and charitable donations. Caps on property taxes, plus the recent recession, have forced many school districts to scrap the program or whittle it down to just a few days. Now, backers of a statewide ballot measure want to use a slice of lottery proceeds to guarantee a week of Outdoor School for all

children. If it passes, the measure would make Oregon the only state with dedicated funding for outdoor education, including students in charter, private and home schools, said Sarah Bodor, policy director for the North American Association for Environmental Education.

Deep cuts

OPPONENTS, however, say its passage would mean deep cuts to a state agency tasked with economic development by siphoning away millions in lottery money critical to expanding Oregon business. And at least one outspoken state lawmaker worries Measure 99 would impose liberal Portland’s values on children in rural Oregon where farming, mining, logging and fishing are a way of life. The push to fund Outdoor School dovetails with a national trend toward outdoor learning, Bodor said. More than two dozen states have developed environmental literacy plans as educators realize the importance of outdoor time for developing critical thinking and leadership skills, she said. “But these are really unfunded mandates and...the outdoor component is the piece

that very often gets left behind,” Bodor said. Measure 99 would cover that unfunded cost by taking up to $22 million—or 4 percent a quarter—from the state lottery’s economic development fund to send 50,000 fifth- or sixth-graders to Outdoor School each year. The Oregon State University Extension Service would dole out the money to school districts using a process that will be determined if the measure passes. Applying for the lottery funds would be voluntary, and schools, educational districts and nonprofits that already run Outdoor Schools around the state could continue to do so.

Not mandate

TO get the state funding, programs would have to meet certain criteria, including a curriculum that includes the study of plants, animals, soil and water; discussion of the role of natural resources in the state economy; and lessons on the relationship bet ween economic growth, natural resources and conservation. “This is not a mandate—it’s an offer. And we wanted to make sure it was a real one,

which means providing sufficient funding to cover the cost of a good, high-quality program,” said Rex Burkholder, chairman of the Measure 99 campaign committee. With two weeks to go before the election, Measure 99 has no organized opposition, and polls indicate it will pass—but not everyone is buying it. State Sen. Betsy Johnson, a Democrat who represents a rural district northwest of Portland, says lottery proceeds are for economic development, not camp. She worries Oregonians who remember their own Outdoor School experience will vote for the measure out of nostalgia without understanding it could hurt other programs.

So feel-good

ECONOMIC Development for Central Oregon, a nonprofit that promotes job growth, says the money for Outdoor School would be equivalent to 70 percent of the budget for the state’s economic development agency, which relies on lottery money. Efforts to bring television productions, like “Grimm,” ‘‘Leverage” and “Portlandia,” to Oregon could suffer as a result, it said. AP

A SHINGTON—National Intelligence Director James Clapper said on Tuesday the US goal of persuading North Korea to abandon its nuclear weapons is probably a “lost cause” and the best hope is to cap its capability. Clapper’s comments come amid mounting concern that the North is moving closer toward having a nuclear-tipped missile that could reach the American mainland. It has conducted two atomic test explosions this year and more than 20 ballistic missile tests. The US has long insisted that it will not accept North Korea as a nuclear armed state, and the State Department said on Tuesday there had been no change in policy. US administrations have demanded that North Korea agree to denuclearization, although aidfor-disarmament negotiations have been stalled for years and sanctions have failed to stop the North’s weapons’ programs. Clapper said that while North Korea has yet to test its KN-08 intercontinental ballistic missile, the US already operates on the assumption that Pyongyang potentially has the capability to launch a missile that could reach parts of the United States, particularly Alaska and Hawaii. “I think the notion of getting the North Koreans to denuclearize is probably a lost cause,” Clapper said at the Council on Foreign Relations in New York. He added that the best the US could probably get is some kind of a cap on North Korea’s nuclear capabilities. “They are under siege and they are very paranoid, so the notion of giving up their nuclear capability, whatever it is, is a nonstarter with them,” he said.

Tighter sanctions

STATE Department Spokesman John Kirby said he had not seen Clapper’s comments but said the US still aims for a resumption of sixnation aid-for-disarmament negotiations that have been stalled since

the North pulled out of the talks in 2009—three years after conducting its first nuclear test. “We want to continue to see a verifiable, denuclearization of the peninsula. We want to see a return to the six-party talk process, and that means we need to see the North show a willingness and an ability to return to that process which they haven’t done yet,” Kirby told reporters in Washington. In the meantime, the Obama administration says it is intent on tightening sanctions on the government of young leader Kim Jong Un, who has doubled down on increasing the North’s nuclear arsenal. In addition to its nuclear and missile tests this year, North Korea is also believed to producing more fissile material for bombs. US experts estimate that North Korea has 13 to 21 nuclear weapons, and could have as many as 100 by 2020. Separately on Tuesday, Scott Busby, a senior State Department official for human rights, criticized China’s implementation of UN sanctions against North Korea that are intended to starve it of revenue for its development of weapons of mass destruction. Busby, who was speaking at a Washington think tank, said China’s use of a loophole in the sanctions to purchase huge amounts of North Korean coal is “unacceptable.” He said coal sales are probably the North’s main source of foreign currency. He said the No. 2 US diplomat, Antony Blinken, will raise that issue when he meets this week with Chinese officials in Beijing. The US wants China to agree to tighter UN sanctions on North Korea in response to a September 9 nuclear test explosion and enforce restrictions already in place. Busby credited China with a “slight improvement” in its treatment of North Korean asylum-seekers who escape across the northern border into China. But he added that China is still repatriating significant numbers of them back to the North. AP

Ontario nurse charged in deaths of eight nursing-home residents

ORONTO—A nurse has been charged with the murders of eight elderly people under her care at nursing homes in southwestern Ontario over a seven-year the period, the police said on Tuesday. Woodstock Police Chief William Renton said Elizabeth Tracey Mae Wettlaufer, 49, was charged with first-degree murder in the killings that took place between 2007 and 2014. “The victims were administered a drug. We’re not in a position at this time to comment further on the specifics of the drug as it forms part of the evidence that is now before the courts,” Ontario Provincial Police detective Dave Truax said. Truax would only say a number of drugs were stored and accessible in the nursing homes where the suspect worked. The police said they were first alerted to the deaths on September 29 and arrested Wettlaufer on Monday. They said she appeared in court on Tuesday morning and was remanded into custody until November 2. A lawyer for Wettlaufer could not immediately be reached. The investigation is ongoing and officials said more charges could be brought in the future. The police would not speak to a possible motive. “This is an extremely distressing and tragic...thing for all of the families involved,” Ontario Premier Kathleen Wynne said. “The police have made it clear there’s no threat to safety and we now need to let the police do their job.”

No suspicions

WETTLAUFER, of Woodstock, was employed by Caressant Care Nursing and Retirement Homes, which operates 15 facilities in small Ontario towns. The police said seven of the victims died at a Caressant nursing home in Woodstock, a community of 37,000 people about halfway between London and Hamilton, Ontario.

The victims were identified as James Silcox, 84; Maurice Granat, 84; Gladys Millard, 87; Helen Matheson, 95; Mary Zurawinski, 96; Helen Young, 90; Maureen Pickering, 79; and Arpad Horvath, 75. Wettlaufer was also employed at the Meadow Park facility in London, where Horvath died. His daughter, Susan Horvath, said she felt something was amiss before her father died. “I’d seen my dad and the condition he was in and he had a lot of fear...and just things about him and everything I noticed on his body and stuff, I just had a feeling and I told mom,” Horvath told radio station AM980 in London, Ontario, on Tuesday. “And then when he passed on—and how he passed on—that’s when I knew: This is not right.” Daniel Silcox, of Pontypool Ontario, said he found out about his father being among the alleged victims while listening to the radio on Tuesday morning. “We’re living my father’s death right now,” Silcox said. “It’s horrific.” His father didn’t like living at the home, had broken his hip at the facility, but the family otherwise had no suspicions that his death might have been a murder, Silcox said.

Terrifying to know

RECORDS from the College of Nurses of Ontario show Wettlaufer was first registered as a nurse in August 1995, but resigned on September 30. She is no longer entitled to practice as a registered nurse. Caressant, a private nursing home chain, said it is cooperating with the police and remains in contact with the Ontario Ministry of Health and Long-Term Care regarding the matter. Caressant said in a statement its highest priority is to continue providing for the “physical, social and spiritual needs” of its residents as the investigation unfolds. AP

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Thursday, October 27, 2016 A9

A PARADIGM SHIFT MOVING MEDICAL DOCUMENTS FROM PRINT TO DIGITAL Business solutions provider Canon Marketing Philippines, Inc. (CMPI) partners with Davao Doctors Hospital (DDH), the leading privately-owned health institution in Mindanao in digitizing key health services

EALTHCARE organizations commonly face challenges with administration of information via physical records and documents management, leading to counterproductive results such as excessive manpower resources and longer response time.

DDH reportedly has medical records of over a thousand within the last 15 years.

The Therefore™ system is one of the world’s leading end-to-end business solutions that provides all necessary equipment such as multi-purpose devices, and manpower services like operational training and engineering.

In the Philippines, there is an increasing number of health institutions integrating digital systems into their document management processes to uphold best quality health service and maintain their competitiveness in the industry. Davao Doctors Hospital (DDH) continues to be at the forefront of offering quality health services to patients in the city that promise the highest level of quality and efficiency. DDH, celebrating its 47th anniversary this year, has been catering to mostly locals of Davao City and other neighboring areas with stateof-the-art diagnostic, therapeutic and intensive care facilities. With its vision of becoming “The Unparalleled Health Institution Beyond Borders,” the hospital found it most appropriate to partner with Canon Business Imaging Solutions in working towards the full digitization of its operation beginning with the implementation of a “paperless” records and documentation management. Such is to address the institutions’ need for a more efficient system of managing its rapidly growing patient archive. The partnership serves as the stepping stone to the creation of a “doctors’ portal” – an online database of patient records that is always on and accessible for doctors anywhere around the world. Technology of this kind remains to be uncommon in the local practice of medicine, and have only been utilized by select institutions in developed countries such as the United States and Australia. Canon has offered the Therefore™ solution to DDH – one of the world’s most renowned endto-end software solutions that is specifically created to improve storage, management, and processing of information from input management, to document management and workflow, to output management. Therefore™ enables organizations around the world like DDH to work smarter and become more competitive in their

respective industries. “We have been using Therefore™ for the scanning of our records for the past two years. The access and use of records are evidently faster now, and the solution allows us to save a significant amount of time in comparison to the manual process. The best thing about the system is that it is a complete and integrated business solution, from the technology to the manpower services and training needed for its use,” shared Jan Rhea Ruiz, Head of the Medical Records Department at DDH. “Once we have achieved scanning and storing of all records, we will be able to fully implement a ‘doctors’ portal’ for DDH to have easier and more secured health care processes, particularly diagnoses and feedback on necessary documents for patients. With this, we can truly achieve health care services that go beyond borders; there will no longer be a need for additional resources like time and transportation from doctors and patients, alike to hold a medical consultation or approval of documents,” shares Ruiz. “We are proud to be partners with an institution like Davao Doctors’ Hospital that truly define and set standards in their industry,” shares Arnold Endaya, Assistant Director of Business Solutions at Canon Marketing Philippines Inc. (CMPI). “It is with these cases that we feel that our hard work at Canon truly impacts the community in which we operate through providing solutions for not only better organizations or companies, but also and most importantly, a better society,” adds Endaya. Canon offers a suite of business solutions that help companies or organizations save on operational costs, optimize business processes, and provide utmost quality customer service. To learn more about their products, services and other clients, kindly visit http://canon. com.ph/solutions.

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A10 Thursday, October 27, 2016

JUVENILE C WAITING FOR THAT

Theft, physical injury and rape top 3 crimes committed by children in 2015

By Joel R. San Juan @jrsanjuan1573 & Jonathan L. Mayuga @jonlmayuga

OVERTY as a person could be languishing in jail in perpetuity: It has been blamed for many social ills. One such ills is why many children commit crimes. However, the real challenge, according to advocates and pundits, lies in the failure of the State to properly deal with the so-called children in conflict with the law (CICL). Such failure, it has been said, deprives children of the opportunity to better their lives or, at the least, enjoy their childhood. Based on data provided by the Juvenile Justice Welfare Council (JJWC), there were at least 11,000 CICL in 2009. The government’s media agency has reported that, prior to the enactment of the Juvenile Justice and Welfare Act of 2006, “more than 52,000 Filipino children are in detention or under custodial setting.” “They suffer from all kinds of abuses, and some were meted out with capital punishment,” the Philippine Information Agency (PIA) said in a report on the 10th anniversary of the JJWC in May. The prevalence of juvenile delinquency is primarily due to poverty, according to the Philippine National Police (PNP) considering that theft is the common offense committed by children.

Crimes

ABOUT 60 percent of juvenile crimes fall under crimes against property. These include theft, robbery, malicious mischief and estafa, statistics by the PNP from 2012 to 2015 revealed. On the other hand, crimes against persons—which include rape, attempted rape, acts of lasciviousness, physical injuries, murder, attempted murder, seduction, grave threats, abduction and homicide— constitute 36 percent of the crimes committed by children covering the same period. In addition, 4 percent of the juvenile crimes from 2012 to 2015 involved violations against special laws, such as Republic Act (RA) 9165 (prohibited drugs), Presidential Decree 1866 (illegal possession of firearms) and Presidential Decree 1602 (illegal gambling).

Last year theft, physical injury and rape were the top 3 crimes committed by children. Theft cases recorded last year reached 3,715, while physical-injury cases totaled 1,859. Rape cases involving child perpetrators reached 642. The total number of theft cases from 2012 to 2015 reached 13,680. Staggering, too, is the total number of physical-injury cases (6,062), robbery (2,446 cases), rape (1,973 cases reported) and cases involving prohibited drugs (818). What is shocking is the number of murder cases involving children: 217. The latter means there were at least 4.5 murder cases reported every month in the past 48 months ending 2015 that involved children.

What the law says

IN 2006 the Philippines enacted RA 9344, or the JJW Act of 2006, aimed at addressing the plight of CICL. Justice Assistant Secretary Aimee T. Neri said the enactment of the said law is the State’s adherence to the UN Convention on the Rights of the Child (UNCRC), the UN Standard Minimum Rules for the Administration of Juvenile Justice, the UN Guidelines for the Prevention of Juvenile Delinquency and the UN Rules for the Protection of Juveniles Deprived of Liberty. The JJW Act of 2006 was later on amended by RA 10630, which took effect on November 7, 2013. R A 9344 was amended, according to the JJWC, to further strengthen the Juvenile Justice and Welfare System and to ensure that the law is effectively and fully implemented. The amendment focused on requiring local government units to adapt, implement and manage intervention and support centers called the Bagong Pag-asa. The amended law also provides for juvenile-delinquency prevention and intervention programs, as well as diversion programs. The law also

Unicef facts on children in conflict with the law n Over 50,000 children in the Philippines have been arrested and

detained since 1995. n Roughly 28 children get arrested every day, or more than one

child for every hour. n Eight out of 10 children in conflict with the law will commit only

one offense in their lifetime. They are called “first-time offenders.” n A “first-time offender” who is kept out of adult jails is eight times

more likely to change and become productive than a detained juvenile offender. Source: Unicef Philippines

seeks to strengthen the rehabilitation, reintegration and aftercare programs focused on CICL. RA 10630 also mandates the transfer of the administrative supervision over JJWC from the Department of Justice to the Department of Social Welfare and Development (DSWD). The JJW Act, as amended, covers children at risk and CICL. The law provides that a person under the age of 18 is considered a child. It also sets the minimum age of criminal responsibility at 15 years,

which means that a child of that age is exempt from criminal liability. The law also provides that a child that is above 15 years but below 18, who acted without discernment at the time of the commission of the offense, is also exempt from criminal responsibility. However, children exempt from criminal responsibility are not exempt from civil liability.

Bahay Pag-asa

THE minimum age for children who can be committed in youth-care facil-

ity, or Bahay Pag-asa, is 12 years old. Bahay Pag-asa is a 24-hour childcaring institution established, funded and managed by local government units and licensed and/ or accredited non-governmental groups. The center provides shortterm residential care for children in conflict with the law who are above 15 but below 18 years of age who are awaiting court disposition of their cases or transfer to other agencies or jurisdiction. The government has allocated the amount of P 400 million for

the establishment of Bahay Pagasa in provinces and highly urbanized cities. In a report by the PIA, some 34 Bahay Pag-asa have been constructed nationwide for the rehabilitation of CICL as of May. Recently opened in early October was a center by the municipal local government of Cuyapo in Nueva Ecija. According to the PIA report, this Bahay Pag-asa Rehabilitation Center was built using the P3-million incentive fund from the Department of the Interior and

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www.businessmirror.com.ph | Thursday, October 27, 2016

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CRIMINALS: T SECOND CHANCE Local Government. The one-story rehabilitation center is the first of its kind in Central Luzon, and can house 10 to 20 children in conflict with the law.

Poor implementation of the law

WHEN asked to describe the state of juvenile criminals in the country, Neri cited the recent study made by the UN International Crime and Justice Research Institute, which revealed that “poverty caused the majority of child crimes across the Philippines during the mid-1990s.” Neri, who is a member of the JJWC, said the UN observed in the study that there was poor implementation of the provisions and supposed protections being pushed for youth offenders under RA 9344, as amended by RA 10630. Some of these observations include the lack of compliance by local government units of the provisions of the law, the continued detention of children pending trial and the need for more public support. Even the JJWC acknowledged some difficulties in addressing the plight of CICL in the country. Neri said as of 2012, there are only 20 youth detention facilities all over the country. Even so, as of February 2012, there were 440 children who are detained in adult prisons because of the lack of institutions that would provide and implement the intervention programs for them.

Molave center

NOT all cities or municipalities have their own special facility for youth offenders. Quezon City, which is one of the most progressive cities in the Philippines, has its Molave Youth Home for youth offenders. The facility is located at the Social Services Development Department (SSDD) building behind the City Hall. Molave provides temporary custody and care to youth offenders between 9 and 17 while undergoing trial. A 2005 Gawad Galing Pook awards for pioneering work in the rehabilitation of youth offenders, as well as their reintegration to society, Molave is being run and managed by the city’s SSDD. At Molave, youth offenders get the chance to make the most of their life while waiting for the judge’s verdict.

Failure of the law

IN the Philippines it is not the first time that a teenager has committed heinous crimes. Youth offenders are getting younger and bolder. From petty street crimes, they are now figuring in heinous crimes that would send them to jail for life, or worse, join the death row; the implementation of which is now also being considered by some lawmakers to deter the commission of drug-related heinous crimes. But children at risk or children in conflict with the law are more vulnerable to human-rights abuse. Hence, they need effective intervention to correct their behavior. The law, however, seemed to fail in curbing the number of children getting involved in crimes. Worse, those involved in petty

and even serious crimes are getting younger and younger, some committing crimes like robbery-holdup, murder, illegal drug use and peddling, prompting some lawmaker to think about lowering the age of criminal responsibility. The proposal triggered howls of protest from child-welfare group Akap Bata and humanrights watchdog Karapatan, apparently as they see no need for such amendment in the current juvenile justice law. Instead, they said there is a need to enhance measures that would address juvenile delinquency without subjecting youth offenders to consequences of incarceration.

Human-rights abuse

THE leftist group Karapatan said children in conflict with the law are prone to human-rights abuse. In fact, even before a court of law finds them guilty of a crime, they already end up in juvenile facilities or, worse, detention where they suffer psychological and emotional trauma, like adult criminal offenders do while in detention. Karapatan Secretary-General Cristina Palabay said the country’s juvenile justice system is weak and remain wanting. She underscored the need for more child-friendly facility for rehabilitation of youth offenders in preparation for social reintegration. Illegal arrest and detention of children in conflict with the law are also happening, Palabay said, citing a case documented by Karapatan in 2014. The police, she said, arrested and detained for more than two weeks three to five minors during a demolition of illegal settlers in Barangay San Roque, Quezon City, that turned violent. The minors, she said, were arrested during the chaos that ensued as a result of the violent demolition and dispersal of protesting residents who defended their homes against the demolition crew. The process of releasing the children to their legitimate guardians, their parents, took more than two weeks, according to Palabay. Palabay claims that volunteer workers of Karapatan had had a difficult time coordinating with the police and DSWD to facilitate the release of the minors. “We have seen their conditions in the facility for juveniles in Quezon City, and it is no different from ordinary detention for adult criminal offenders,” she said. According to her, it surprised them that it took the police that long to turn the “suspects” over to the custody of the DSWD.

Weak justice system

ONE weakness of the existing law to protect children in conflict with the law is the rehabilitative and reformative aspects, which remain wanting, Palabay said. “Not all rehabilitative and reformative aspect of the juvenile justice law are implemented,” she said, citing that those in the custody of the DSWD do not get adequate therapy and psychosocial support. DSWD facilities for children in conflict with the law, she added, need to be established while existing ones need improvement.

Children in conflict with the law, she said, often end up behind bars like common criminals even inside facilities run by the DSWD or LGUs. Under the watch of Social Welfare Secretary Judy Taguiwalo, Karapatan is confident that CICL would soon received enhanced protection by the agency, with social workers following her marching orders. Even minors arrested for petty crimes, she said, should be protected against the consequence of incarceration, including the social stigma of being, once in their life, put behind bars alongside adult criminals, as mandated by law. “The ultimate problem, especially CICL, is poverty,” Palabay told the BusinessMirror. “If they belong to poor families, they would resort to antisocial activities, turn to drugs or commit petty crimes, because they are not in school where they belong.”

Recommendations

Integration programs lacking

WHILE saying the juvenile justice system is weak, Karapatan is not jumping the gun in recommending a review of the existing juvenile justice law. “Lowering the age of criminal liability is very controversial as some quarters are pushing,” she said. “We believe it would only subject children in conflict with the law to criminal liability.” However, Palabay said Karapatan saw the need to revisit and revise the law’s implementing rules and regulation, and ensure that the law is implemented according to its intents and purposes. The DSWD and LGUs, she added, should work together to ensure that the law is protecting children in conflict with the law, through measures that would give them a second chance. Karapatan, she said, would be closely coordinating with the DSWD to make things better.

EARLY this year, former Interior Secretary Mel Senen Sarmiento issued a call to LGUs to develop their juvenile integration programs. The call was made just as the JJWC released the guidelines for LGUs on how to develop a Comprehensive Local Juvenile Intervention Program (CLJIP). It was only during that time that the Department of the Interior and Local Government (DILG) began to build the National Juvenile Justice Information Management System to ensure proper recording and management of all data related to children at risk and CICL. A member of the JJWC, the DILG is part of the Technical Working Group that formulated the guidelines. Under Section 18 of Republic Act 9344, as amended by RA 10630, LGUs are mandated from the level of villages (barangay) up

to the provincial level to institute the CLJIP. The guidelines include budget allocation, implementation, monitoring and evaluation of the CLJIP. The document contains an order to come up with an effective three- to five-year CLJIP.

Vow to continue

AS a member-agency of the JJWC, the DILG commits to harmonizing efforts for juvenile justice and welfare, and has been advocating for Child-Sensitive and Child-Friendly Society through a mandatory audit system called the Child-Friendly Local Governance Audit. From this year forward, the JJWC is moving toward a more efficient, effective and better implementation of the law by continuing the strong coordination with all the duty-bearers and capacitating them to properly perform their roles, the former DILG chief said.

Perspective BusinessMirror

A12 Thursday, October 27, 2016

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Kashmir: A problem awaiting solution

uman-rightS violations anywhere in the world get ample coverage in the local print and electronic media. However, the region that gets little or scant coverage despite serious human-rights violations is the Indian Occupied Kashmir (IOK). Some newspapers in the Philippines avoid covering events in Kashmir as a matter of policy, as they do not want to indulge in disputed issues. I respect their policy, however, I believe that such an attitude would rather encourage the perpetrators of such heinous crimes against humanity and would further exacerbate the situation in regions so affected. In other words, it amounts to conniving with or rewarding the oppressor. However, it is a matter of great satisfaction that such a policy is not followed by all the newspapers, and some dailies in the Philippines have the guts and the courage to call a spade a spade. I express my thanks to this and all other newspapers, which do not subscribe to such an ambivalent approach. In the following paragraphs I would like to dilate upon the situation in the IOK and the sufferings the people in Kashmir are exposed to. Just for the information of the readers, in the last three months more than 115 Kashmiris have been martyred, over 15,000 were injured, with scores in critical

Saadia Altaf counselor embassy of pakistan condition and several hundred blinded due to use of pellet guns, including children and women. The curfew imposed by Indian occupation forces has led to severe shortage of food, medicines, water and other basic amenities, and has added to the Kashmiris’ plight. The recent wave of killings started when Indian security forces killed young Kashmiri leader Burhan Wani. His death was protested by the local people, who braved the curfew to attend his funeral. As per estimates, about 200,000 attended his funeral. Indian security forces claim that Wani was a militant leader, however,

the fact that his death led to widescale protests throughout Kashmir proves that he enjoyed overwhelming support of the local people. To recapitulate, the Kashmir problem has its basis in the partition of India and Pakistan in August 1947. It was agreed that the Muslim majority area would form Pakistan, and Hindu majority area would form India. As regards princely states, the rulers were asked to seek the views of their subjects in case of a dispute. Kashmir was a Muslim majority area ruled by a Hindu ruler who, under Indian pressure, decided to accede to India against the wishes of his subjects. This led to uprising against the ruler, who invited Indian forces. Talking about the reasons for uprising, Josef Korbel, in his book Danger in Kashmir, writes that to subdue Muslim’s voice, the state’s forces were combing out the supporters of Kashmir’s accession to Pakistan. Muslim personnel of the State military and the police were dismissed, and hundreds of political workers were lodged behind the bars. There were innumerable looting of the houses of political workers. Several people were shot dead on the mere suspicion for having pro-Pakistan views. Even the lives and honor of Hindus who wanted the question of state’s accession in a democratic manner were not safe. The Hindus and Sikh refugees in the state were armed by the Kashmir government, and were encouraged to kill Muslims and others whose loyalty was considered to be dubious. As a result, around 100,000 Muslim refugees fled to Pakistan, carrying

A Christian adjusts a candle next to wording “Peace” drawn with rose petals during a candlelight vigil for the victims of an overnight attack on the Quetta Police Training Academy in Islamabad, Pakistan, on Tuesday. Militants wearing suicide vests stormed a Pakistani police academy in the southwestern city of Quetta overnight, killing dozens of people, mostly police cadets and recruits, and waging a ferocious gun battle with troops that lasted into early hours on Tuesday. AP

their stories of the tragic happenings in their homeland. All these evoked strong reactions from the tribal groups in Pakistan, who attacked Kashmir to extend help to the Muslims. Faced with this onslaught, the ruler of Kashmir requested India for military assistance. Interestingly, the news about the invasion of the tribesmen reached Delhi on October 27, and by October a large contingent of Indian army landed in Kashmir. There are strong evidence to prove that the planning to take over Kashmir was made much in advance, as it is not possible for India to send fully armed army contingent in such a short time. Anyway, the Indian forces were able to thwart the advance of tribal forces. October 27 has since been marked as “Black Day,” and observed world over both by Kashmiris and Pakistanis. Incidentally, today is the Black Day. Here it would be pertinent to mention that Indian leadership resorted to all tactics to ensure the accession of princely states to India and even resorted to force to take over control of these states. For instance, when the Muslim ruler of Junagarh—a Hindu majority state—acceded to Pakistan, India refused to accept the accession, sent its armed forces and forcefully occupied the state. Similar action was taken against the Muslim ruler of Hyderabad—a Hindu majority state—who wanted to accede to Pakistan. Likewise in Tripura state, the Muslims formed the largest group of the population. The ruler, who was a Hindu, acceded to India, despite the fact that the state was surrounded on three sides by Pakistan, and all its communications were through Pakistan. Kashmir, as is evident, was meted out that the same treatment. Thereafter, India took the issue to the United Nations Security Council. Several resolutions passed by the UN Security Council from 1948 onward, inter alia, called for holding plebiscite in Kashmir to ascertain the views of the Kashmiri people. Though India took the Kashmir problem to the Security Council, it resorted to all sorts of subterfuges to avoid holding the plebiscite. Since then, the Kashmiris had been deprived their right of self-determination. To suppress Kashmiris’ demand for right of self-determination, India had resorted to excessive use of force against innocent civilians. In its report on July 2, 2015, the Amnesty International has highlighted killings of innocent persons at the hands of Indian security forces in the Indian-held Kashmir. The report points out, “…the Armed Forces Special Powers Act allows troops to shoot to kill suspected militants or arrest them without a warrant… not a single member of the armed forces has been tried in a civilian court for violating human rights in Kashmir.… India has martyred 100,000 people. More than 8,000 disappeared [while] in the custody

of army and state police.” India has been justifying these atrocities by equating Kashmiris’ struggle with terrorism and blames Pakistan of fomenting militancy. It also claims that Kashmir is part and parcel of India, and whatever is happening in Kashmir, is its internal affairs. India is wrong on both counts. First of all, Kashmir is not, and had never been, part of India. Its status as a disputed territory stands affirmed by the numerous UN Security Council resolutions. In addition, the disputed status of Kashmir is also supported by the Indian leadership in the past. Prime Minister Jawaharlal Nehru of India in his statement on All India Radio on November 3, 1947, said: “We have declared that the fate of Kashmir is ultimately to be decided by the people. The pledge we have given not only to the people of Kashmir, but to the world. We will not and cannot back out of it.” Later, while addressing the Indian Parliament on August 7, 1952, he said, “I want to stress that it is only the people of Kashmir who can decide the future of Kashmir.…” There are plenty of statements by Indian leadership and the UN to the effect that Kashmir is a disputed territory, and its future is to be decided by seeking the wishes of the Kashmiris through a plebiscite under the auspices of the UN. India’s portrayal of Kashmiris’ struggle as terrorism is another farce, which, unfortunately, has been taken at face value by the international community. Most probably, such a stand is driven by economic/commercial and other similar interests in total disregard to the moral principles contained in their constitutions, UN Charter, etc. In fact, it is such an ambivalent attitude adopted by the international community that emboldened India to refuse to grant the Kashmiris their right of self-determination and claim that Kashmir is an integral part of India. The day is not far when India will take away the special status Kashmir enjoys by amending its constitution. It is worth mentioning that India has maintained that United Nations Military Observer Group in India and Pakistan (UNmogip) has outlived its utility and is irrelevant after the Simla Agreement pact in 1972, under which the two countries agreed to resolve all disputes, including Kashmir bilaterally. UNmogip was set up in 1949 to supervise the cease-fire in the divided region. It has even asked UNmogip to hand over the Delhi premises from where it was running a liaison office for more than four decades. Interestingly, during bilateral talks, it refuses to discuss Kashmir problem, claiming that it is an integral part of India, hence, nonnegotiable. Instead, it demands Pakistan to hand over the part of Kashmir held by Pakistan. This brings us to another interesting point. The part held by Pakistan is free of any

violence, people are living peacefully. There is no demand to leave Pakistan and join India. Such a preposterous demand by India hardly makes any sense. It is an area open to everyone and is frequented by foreign tourists and members of the diplomatic community in Pakistan, including representatives of the UN. In fact, the Office of the High Commissioner for Human Rights (OHCHR) has been denied access by India to Indian-occupied Jammu and Kashmir, whereas Pakistan has never prevented UN officials from traveling to Azad Jammu and Kashmir. The situation in the IOK is far from satisfactory. To strengthen its reign of terror, India has stationed more than 600,000 army men. None seems to have asked India as to what necessitates deployment of such a large force in the region with a population of 10 million, i.e., one soldier for every 16.6 natives. And why such a huge deployment, despite its repressive policies, has been unable to check the freedom struggle despite numerous killings. Moreover, it is a fact that every year on the Indian Independence Day on August 15, Kashmiris on both sides of the Line of Control and the world over observe it as Black Day to convey the message to the international community that India continues to usurp its inalienable right to self-determination. On the contrary to express solidarity with Pakistan, Pakistani flags are hoisted by the Kashmiris on August 14—Pakistan Independence Day. All this is a clear manifestation that the struggle is predominantly indigenous, and equating it with terrorism is nothing but a gross injustice on the part of India. Kashmir is a universally recognized dispute with numerous UN Security Council resolutions outstanding for almost seven decades. Wars have not succeeded in resolving the issue of Kashmir. Dialogue is the best option to amicably resolve all issues between India and Pakistan, including the dispute of Kashmir. Pakistan remains ready for dialogue. The international community should rise to the occasion, and tell India that the treatment being meted out to the Kashmiris is simply unacceptable. India should stop its human-rights violations, and fulfill its commitments under the UN Security Council resolutions to resolve the Kashmir dispute in a peaceful manner. President Duterte had very aptly said that a human-rights violation, whether committed by Moses or Abraham, is still a violation of human rights. The killings in Kashmir are not an ancient phenomenon. These are very much current and are being committed despite international community’s so-called commitments to human rights. The people in the Philippines have shown their sensitivities to such violations, even if they happened in the last century. I am sure they cannot remain insensitive to the killings presently going on in Indian-occupied Kashmir.

The World BusinessMirror

www.businessmirror.com.ph

Thursday, October 27, 2016 A13

Tourism overtakes dairy as NZ’s overseas earner

ELLINGTON, New Zealand—In New Zealand there are twice as many cows as people, but it’s the hobbits that are really making hay.

According to figures released on Wednesday, tourism has overtaken dairy as the nation’s top earner of overseas dollars. And tourism officials say the success of the fantasy movie trilogy The Hobbit has helped. The dairy industry is struggling to recover from a slump in prices, while a record 3.4 million visitors arrived in New Zealand in the year ending September. The Pacific nation is particularly popular among tourists from Australia, China and the US. Spend ing by inter nationa l tourists was up by 20 percent in the year ending March when compared with the previous year, according to Statistics New Zealand. That follows a 17-percent rise the year before. Kevin Bowler, the chief executive of Tourism New Zealand, said people were drawn to New Zealand by its spectacular landscapes and its outdoor lifestyle. The hobbit movies showcased some of that scenery and were heavily marketed overseas. “The result was a heck of a lot of interest in New Zealand,” he said.

Surprised, delighted

ONE survey showed 16 percent of tourists cited the movies as influential in their initial interest in New Zealand. Directed by Peter Jackson, The Hobbit trilogy built on the success

of his earlier, critically acclaimed trilogy, The Lord of the Rings. The six movies earned a total of nearly $6 billion at the box office. Bowler said planned increases in f lights from the US and growing economies in Asia boded well for the future. The challenge, he said, would be providing enough accommodation and ensuring tourists can savor their individual experiences. The industry got another boost this week when “Lonely Planet” named the relatively unknown Taranaki region as a place to visit in 2017. The travel guide noted an offbeat gallery there dedicated to the late artist Len Lye. John Matthews, who chairs the Len Lye Foundation, said he was “surprised and delighted” with the inclusion. But while tourism is booming, income from dairy products has fallen by 22 percent over the past two years, Statistics New Zealand says.

Cashing in

DAIRY farmer Jessie Chan-Dorman, who runs 950 cows on her farm near Christchurch, said most dairy farmers have been losing money in recent years as prices for milk powder have hit record lows. That’s due to softening demand in China for premium infant formula coupled with a glut in the worldwide supply. Prices have begun rising again but Chan-Dorman

In this December 31, 2015 photo, tourists take photos during a tour of the Hobbit movie set near Matamata, New Zealand. According to figures released on October 26, tourism has overtaken dairy as the nation’s top earner of overseas dollars. And tourism officials say the success of the fantasy movie trilogy The Hobbit has helped. AP

said she remains cautious about whether that will last. It will take several years for most farmers to recover their losses, but she said she hopes many built more resilient businesses as a result. Some farmers are cashing in on the tourism boom by offering

home stays or hunting trips. New Zealanders have long been outnumbered by their farm animals.

With a population of 4.7 million people, the nation is also home to 29 million sheep and

10 million cows. And zero hobbits, of course, unless you count those on the big screen. AP

a14 Thursday, October 27, 2016 • Editor: Lyn Resurreccion

The World BusinessMirror

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accused in hospital Trump, GOP look at ‘Obamacare’ Man hack wages hunger strike report for fresh political ammo B

ORAL, Florida—Suddenly armed with fresh political ammunition, Donald Trump and anxious Republicans across the nation seized on spiking health-care costs on Tuesday in a final-days effort to spark election momentum.

The Republican presidential nominee, trekking across must-win Florida, insisted “Obamacare is just blowing up” after the government projected sharp cost increases for President Barack Obama’s signature health-care law. Democrat Hillary Clinton, fighting to block Trump in the same battleground state, has vowed to preserve insurance for the millions of Americans covered under the law, but her team described the cost surge as a “big concern.” Trump closed out the day by casting the government’s projections about the health-care law in personal terms. “It’s killing our businesses. It’s killing our small businesses. And it’s killing individuals,” Trump told supporters at an evening rally in Tallahassee, without presenting evidence to back up his assertions. While the health-care law has provided coverage to millions previously uninsured, it has also increased costs and regulatory burdens for businesses, particularly medium-sized to large companies. But small businesses are exempt from its requirement to cover fulltime employees or face fines.

Wrongdoing denied

THE renewed emphasis on health care gave battered Republican

House and Senate candidates a brief respite from months of painful questions about their presidential nominee, who has questioned the integrity of the US election system while facing personal allegations of sexual misconduct. Trump has denied any wrongdoing. “My first day in office I’m going to ask Congress to put a bill on my desk getting rid of this disastrous law,” a fiery Trump told thousands of voters gathered at an airport along the Interstate 4 corridor. Blessed with an unexpected political gift, however, it’s unclear whether Trump will be able to capitalize. “He could make this race for the last two weeks a referendum on Obamacare. But, of course, he won’t do that,” former Ted Cruz strategist Chris Wilson said. “It’s just a matter of him swatting at flies, instead of having a coherent and consistent message.” Indeed, Trump has struggled to stay focused on the traditional issues throughout his outsider candidacy. He opened on Tuesday by promoting one of his Florida golf resorts, highlighting the extraordinary intersection between his business and political interests. Trump is also scheduled to attend Wednesday’s opening of his new

Washington hotel. “We’re at Trump National Doral. And it’s one of the great places on earth,” Trump said during a visit to his golf club. He encouraged his employees to praise him at the microphone and said many of them are having “tremendous problems with Obamacare.” The Doral general manager later clarified that 95 percent of the club’s employees are on companyprovided insurance.

Go up sharply

THE Department of Health and Human Services reported late on Monday that premiums will go up sharply next year under the federal health-care program, and many consumers will have just one choice for their insurer. Before federal subsidies, premiums for a midlevel benchmark plan will increase an average of 25 percent across the 39 states served by the federally run online market. Some states will see much bigger jumps, others less. Republicans have been fighting the president’s health-care law since 2010 with little political success. Yet, in a campaign dominated by Trump’s controversies, vulnerable Republicans across the nation are eager to latch onto a familiar conservative cause. Several Republicans in difficult races leaped at Tuesday’s rate hike, including Sens. Kelly Ayotte in New Hampshire and Roy Blunt in Missouri. Fighting a challenge from New Hampshire Gov. Maggie Hassan, Ayotte’s campaign asked, “Will Hassan continue to stand in lock-step with Hillary Clinton and her party in support of the failing law?” Clinton did not address the cost surges during an afternoon rally on the Broward College campus in

Coconut Creek. Noting that her crowd was diverse, she said, “I bet some of you or maybe your parents or grandparents came from places where none of that was true.” She said Trump was “attacking everything that has set our country apart for 240 years.”

Running even

ALSO on Tuesday, Clinton picked up the endorsement of former Secretary of State Colin Powell, a Republican who announced his intention to vote for her during an appearance in New York. On Obamacare, Clinton Spokesman Jennifer Palmieri conceded that “cost controls are a big concern for Hillary Clinton.” She said the Democratic presidential nominee has a plan to lower insurance costs, “both through the public option and a Medicare buy-in.” She warned that Trump’s plan would strip insurance from roughly 20 million Americans who now benefit. Trump, who must win the battleground state to have any chance at the 270 electoral votes needed to win the presidency, appeared at three campaign events on Tuesday, his third straight day in the state. Clinton, who can win the presidency with or without Florida, made one appearance on the first day of a two-day swing. While the candidates sparred, hundreds of thousands of Floridians were voting. Tuesday marked the second day of early in-person voting. Early voting by mail began two weeks ago. Traditionally, Republicans have run up a large advantage in mailin-ballots, while Democrats rely on early voting to boost their turnout numbers. This year the parties are running nearly even. AP

Lawsuit challenges Denver’s sweeps of the homeless

E N V E R — W h e n Je r r y Burton’s sleeping bag and tent were removed by city workers from his campsite near a rapidly developing area close to downtown Denver, he was able to start over again with backup gear he keeps hidden for emergencies— whether his or someone else’s. Now he’s one of nine homeless people suing in federal court to try to stop the city’s sweeps of homeless encampments and, as he sees it, restore the dignity and respect of people who can’t find a home of their own in a growing city. Burton, a former Marine who has had trouble finding housing despite veterans’ rental assistance, compared the city’s seizures of the homeless’ property with someone walking into a home and taking a television. “It’s going to continue to go on until the court stands up,” he said of the sweeps after the first hearing in the lawsuit that drew dozens of homeless people and their advocates even though the October 12 session was mainly to discuss scheduling. The case is the latest to challenge homeless sweeps around the country.

County liability

LAST month a federal judge in Washington state found that Clark County was liable for clearing out homeless encampments and seizing the residents’ belongings, including tents, stoves, medication and documents, leading the county to settle the case for $250,000. Earlier this year, Los Angeles agreed to pay $822,000 to settle a lawsuit by homeless people who said that the city had seized and destroyed their possessions. Honolulu also settled a lawsuit filed by the American Civil Liberties Union claiming that the city

OSTON—T he ma n who acknowledges he attacked the computer network at world-renowned Boston children’s hospital two years ago, costing it hundreds of thousands of dollars, is unapologetic and now waging a hunger strike in prison as he awaits trial. Martin Gottesfeld claims the hospital hacking was to protest the treatment of a teenage patient caught up in a custody fight between Massachusetts and her parents. He said his three-week-old hunger strike is to bring attention to two more causes: the treatment of troubled youth in institutions and “political prosecutions” by prosecutors he considers overzealous, including US Attorney Carmen Ortiz in Massachusetts. Gottesfeld wants the presidential candidates to pledge to protect children who’ve been sent to residential treatment centers, psychiatric hospitals and other institutions. He also said people shouldn’t be prosecuted for crimes he considers harmless, citing the case of Aaron Swartz, who was accused of using MIT’s computer network to download millions of articles from a scholarly archive with the intent of making them freely available on the internet. Swartz took his own life in 2013 while awaiting trial.

Orchestrated attack

IN a telephone interview with The Associated Press, Gottesfeld said he will not eat again until these demands are met. However, he acknowledges that he occasionally has consumed chicken broth, Gatorade and soft drinks. Still, he said his weight has dropped from 204 pounds to 182. “I love my life and I love my wife, and I want to get back to both of them very badly, but this cause is more important than any one individual. And the suffering of these children must stop, and the persecution of these advocates also must stop,” he said from the Donald W. Wyatt Detention Facility in Central Falls, Rhode Island, where he is being held before trial. Gottesfeld is scheduled to be arraigned in US District Court on charges of conspiracy and intentionally causing damage to protected computers. He said he orchestrated the attack on Children’s and a related attack on the Wayside Youth & Family Support Network, a Framingham residential treatment facility, to protest

the treatment of Justina Pelletier, a Connecticut teenager who was at the center of a custody dispute following conflicting medical diagnoses.

Bitter dispute

TUFTS Medical Center in Boston had treated Justina for mitochondrial disease, a disorder that affects cellular-energy production. Boston Children’s Hospital later diagnosed her problems as psychiatric. After the girl’s parents rejected that diagnosis and tried to take her back to Tufts, the Massachusetts Department of Children and Families took custody of her, touching off a bitter dispute. A judge ruled the parents failed “to provide for Justina’s necessary and proper physical, mental and emotional development.” The case drew national media attention, and various groups cited it as an example of governmental interference with parental rights. Gottesfeld, 32, of Somerville, was arrested in February after he and his wife were rescued in their motorboat off the coast of Cuba by a Disney cruise ship. Prosecutors said Gottesfeld was attempting to flee the country. Prosecutors allege he posted a YouTube video on behalf of the hacking group Anonymous that included a computer-generated voice stating, “To the Boston Children’s Hospital—why do you employ people that clearly do not put patients first?” The video called for the firing of a physician who treated Pelletier and said, “Test us, and you shall fail.”

Disabled portal

THE indictment alleges the attack knocked the hospital’s web site out of service and disabled its fundraising portal. The hospital said it spent more than $300,000 addressing the hacking and lost another $300,000 in donations. G o t t e s f e l d a c k no w l e d g e d launching the attack, but said he did it to defend Pelletier. “I haven’t hurt anybody. There’s no allegation that any patients were harmed by anything that I did,” Gottesfeld said. “Boston Children’s denies any allegations of maltreatment,” said hospital spokesman Rob Graham, who declined additional comment due to patient privacy laws and the criminal case. A spokesman for Wayside, where Justina was transferred after leaving the hospital, declined to comment. AP

Gambia says it is leaving International Criminal Court

In this October 12 photograph, an unidentified man drags his belongings to join a brief rally before entering the federal courthouse for a hearing in a class action lawsuit challenging the homeless sweeps in the Mile High City last spring in Denver. The lawsuit is the latest in a string of cases opposing crackdowns on people camping in public around the country. AP

$822K The amount Los Angeles agreed to pay to settle a lawsuit by homeless people who said the city had seized and destroyed their possessions

had deprived homeless people of food and other belongings during raids. It paid $48,500 to 21 homeless people, but the deal allows the city to continue enforcing its policy of clearing sidewalks as long as it gives more notice. It also can only throw away items that

pose a serious public health hazard and agreed to make it easier for homeless people to retrieve their belongings. Maria Foscarinis, the executive director of the National Law Center on Homelessness & Poverty, said she thinks such lawsuits have been bolstered by the US Justice Department’s decision to file a brief opposing punishing homeless people for violating public camping bans when there is no room in shelters, in a lawsuit challenging Boise, Idaho’s enforcement of its ban, a case her organization is involved in.

More crackdowns

MARK Silverstein, legal director of the ACLU of Colorado, which has

been critical of Denver’s sweeps, said she thinks there have been more lawsuits because there have been more crackdowns. The Denver lawsuit says the city, as part of an effort to clear the homeless from areas being gentrified, is violating their constitutional rights to be protected from unreasonable searches and seizures and to be treated equally under the law. At the October 12 court hearing, the judge overseeing the case, Craig Shaffer, allowed people without identification to pass through security as long as they were vouched for by attorneys in the case. Some were forced to stand in the aisle of the crowded courtroom. One man clutched blankets in front of him as he listened. AP

AKAR, Senegal—A third African country, Gambia, says it will leave the International Criminal Court as fears grow of a mass pullout from the body that pursues some of the world’s worst atrocities. Gambia announced the decision on television on Tuesday night, accusing the court of unfairly targeting Africa and calling it the “International Caucasian Court [ICC].” The move comes after South Africa, once a strong ICC supporter under former President Nelson Mandela, notified the United Nations secretary-general it would leave the court. Early last week, Burundi’s president signed legislation to leave the court, as well. O n ly A f r ic a n s h ave b e e n charged in the six ICC cases that are ongoing or about to begin, though preliminary ICC investigations have opened elsewhere. Gambia’s decision is also striking because the ICC’s chief prosecutor, Fatou Bensouda, is Gambian. The information minister of the tiny West African country,

Sheriff Baba Bojang, said in the statement late Tuesday that the court is involved in “the persecution of Africans, and especially their leaders.” He accused “at least 30” Western countries of having committed war crimes against their citizens since the ICC was founded more than a decade ago and said none has been targeted by the court. The minister said Gambia has begun the process of withdrawing from the ICC, which involves notifying the UN secretary-general and takes effect a year after the notification is received. Rights groups often accuse Gambian President Yahya Jammeh, one of Africa’s longest-serving leaders, of abuses including a clampdown on political opponents. The next presidential election is in December. Officials with other top African critics of the court, including Uganda and Kenya, have said in recent days they have not yet decided whether to leave the ICC as well. Uganda said it will be a “hot topic” at an African Union meeting in January. AP

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Thursday, October 27, 2016 A15

Tax-reform package to protect vulnerable sectors from excise-tax adjustments–DOF

By Rea Cu

@ReaCuBM

he Department of Finance (DOF) said it is still finetuning the social-protection measures to be adopted under the agency’s proposed Tax Reform for Acceleration and Inclusion Act.

Under the tax-reform proposal, indigent senior citizens and persons with disabilities (PWDs), together with low-income electricity consumers and small entrepreneurs, will be protected through direct and indirect social protection measures. Finance Undersecretary Karl Kendrick T. Chua said the DOF is looking at lifeline subsidies for low-income electricity consumers to protect them from the impact of the proposed increase in the

excise tax on petroleum products, which is included under the taxreform package. “The protection really comes from the increase in their VAT [valued-added tax] threshold to P3 million, so that the micro and small enterprises, with gross sales of at most P3 million, will not be affected by the broadening of the VAT base. They will, of course, still pay their percentage tax,” said Chua, who is also the DOF’s chief economist.

To use the tax system to protect the poor and low-income earners risks massive leakages as is currently happening.”—Chua

Chua explained that changing the form of benefits for the country’s vulnerable sectors from outright exemptions, which favors both rich and poor, to targeted social-protection measures would help plug the massive leakages in the VAT system. “We very much respect and would like to help the poor and vulnerable people who would be affected, but we think that a better system to do it is through the expenditures side, not the tax side. This way, we can avoid the leakages and, in fact, transfer the leakages that we [plug] to provide better services. To use the tax system to protect the poor and low-income earners risks massive leakages as is currently happening,” Chua said. Chua added that indigent senior citizens will also be protected by providing them with higher social pensions, while PWDs will get expanded health-insurance coverage and other benefits under the social-protection package of the DOF-proposed tax plan. “We propose to do a highly targeted subsidy reform program, wherein the poorest 50 percent of households will be fully protected through a highly targeted unconditional cash transfer in the initial year, and that means around P200 to P500 per month or up to P6,000

a year per household, and this is calibrated based on the possible increase in inflation and the impact of the higher oil [tax increase] price on their lives,” he added. The chief economist said the poorest 50 percent of households earning P5,000 or less a month will each get unconditional cash transfers of up to P6,000 a year in the initial phase of the DOF’s taxreform program. These are just some of the expanded benefits that the DOF is now fine-tuning with other government agencies to cushion on the country’s vulnerable sectors from the impact of the proposed fuel excise-tax adjustments and removal of certain VAT exemptions, which form part of Package 1 of the DOF-proposed tax-reform program. C hu a sa id m in i mu m-wage earners and other members of the working class identified as those earning more than P5,000 but not over P12,000 a month, would be protected from the effects of the excise-tax adjustments on petroleum products, by providing operators of public-utility vehicles with cash cards, similar to the Pantawid Pasada Program, to ensure that their pass-through costs would only be around 50 centavos. “Also, if we address the other problems of traffic, of improving

Ayala Land earns Asian CSR award Ayala Land Inc., the country’s leading developer of sustainable estates, was recently honored with the Asian CSR award for Environmental Excellence at the 14th Asian CSR Awards and annual Asian Forum on Corporate Social Responsibility (AFCSR) held on September 21 in Yangon, Myanmar. It won for “Native Landscapes for Site Resilience and Urban Biodiversity,” a program that established the use of native trees and plants in its developments. In the photo are Art Corpuz (center), group head of Ayala Land’s Urban and Regional Planning Division and Central Land Acquisition Unit; (from left) Dr. Jikyeong Kang, president and dean of Asian Institute of Management (AIM); Dr. Anjan Ghosh, corporate affairs director for the Greater Asia Region of Intel Corp.; Dato Timothy Ong, chairman of AIM RVR Center and the 15th AFCSR; and Oscar J. Hilado, vice chairman of the AIM RVR Center. their engines to make these more efficient; if we address the corruption on the streets, which we hear some authorities collect bribes from jeepney drivers, [then we probably do not need to see any increase],” he

explained. He added that even the middle class would still be protected because they can use the savings they get from paying lower personal income taxes to offset the effect of the fuel excise-tax adjustment.

A16 Thursday, October 27, 2016

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DepEd Secretary Leonor M. Briones on Fortune Life Insurance’s Advocacies

DEPARTMENT of Education (DepEd) Secretary Leonor M. Briones at Fortune Life Insurance Company’s Values Advocacy Program Launch Year 6 held on October 18, 2016 at the DepEd Central Office, Pasig City.

ood afternoon, magandang hapon sa inyong lahat, maupay na hapon sa inyong tanan!

First of all, I would like to acknowledge Mrs. Bienvenida A. Cabangon, the loving spouse of the Ambassador and the beloved mother of Arnold who I’m sure, as a teacher, is responsible for supporting her husband and her children in the various activities in their lives. Second, I would like to acknowledge Arnold who has continued the good work of his father; Evelyn, the executive vice president of Fortune Life; and Linda Legaspi who has the most stunning terno I’ve ever seen in 76 years. Also, I’d like to pay tribute to the artists who presented, in just a matter of minutes, the entire life of Ambassador Cabangon Chua. Congratulations to all of you, very great libretto, wonderful singing, great acting and much creativity. Perhaps, this presentation can be transformed into a video by Fortune Life, which can be distributed, and perhaps you might even think of a Filipino version using Filipino songs that will inspire us as a nation of succeeding in spite of suffering, of going on in spite of it all. I’ve always believed that theater is perhaps one of the most effective ways of teaching not only children and learners but also adults, as it is a source of life. Of course, the name of Luna Inocian rings a wonderful bell because of Junix Inocian who graduated from Siliman University of which I used to be the Chair. Thank you very much. Of course, we are grateful to Fortune Life for this initiative. I, myself, am a child of a couple teacher. I come from dynasties of teachers. Have you not noticed that you don’t only have one teacher in the family, you have clans of teachers? And have you not noticed that the most successful, the most admired, the greatest leaders that we have are products of teachers? Like Arnold has a teacher of his mother, the President has a teacher of his mother, and if you try to recall, many of you, somewhere in

your family, have a teacher who has thought you many lessons in life. So, thank you very much to Fortune Life Insurance as well as to Linda who has partnered with Fortune Life Insurance in augmenting this project. Since I assumed my duties as Secretary of Education, the standard answer whenever we receive an invitation is “no.” It’s because we are, right now, very involved in our project and programs. Also, we are nearing already the end of the year wherein we have to make some reforms and changes. But when my assistant said that the invitation is from the family of Ambassador Cabangon Chua, I immediately said “Yes! I’m going”. My assistant said, “But you have three appointments today located in different places.” One at University of the Philippines, the other at Congress, where you have the most e xciting conversations, and then this one—a ll sorts of meetings. But I already said yes, I will not refuse the family of Ambassador Cabangon Chua because in one of my many lives at the age of 76, I was a humble columnist for BusinessMirror. It was a very happy experience, which I had to discontinue while I engaged in other activities. Hindi pwedeng magsabing “no” because I know Business Mirror very well. The issues it has brought up and how it has always presented both sides, if not, all sides, of burning national issues, which we debate about. We are very, very happy and grateful. We are supposed to be the third party of this partnership but we are actually the recipients, the beneficiaries of this partnership, and we are grateful that our teachers are recognized. One reason why I also need to be with you this afternoon is because of the theme, the value of discipline and hard work. These days, young people

get the idea that, to be successful, you go on the easiest and fastest way. Wherever, whatever that method is. To give importance to discipline and hard work is to bring up the very values that had made us as a nation and as a people. So thank you for that. As for the Department of Education, it has never been done before since the days of the dictatorship. The department has been receiving very generous donations from a gambling corporation every year for the building of school houses. School houses marked with the name of the corporation and announced in television and media. I am the only secretary of education who has returned the money. The decision of DepEd was supported by the President himself when I explained that gambling and all its related implications to young people is not consistent with the values of hard work and discipline. We teach our children to save; we teach our children to work hard. They cannot do it in the atmosphere which also a product of get rich schemes. In so far as online gambling is concerned, because it is recognized by the policy and that it is perhaps helpful to local governments, I’ve also suggested that the outlets selling these tickets should not be located near schools. You can see those long lines of learners and teachers hoping to get rich overnight, spending hard earned money and many years of waiting and hoping and dreaming of the lucky number which will change their fortune forever. Values of discipline and hard work are very old fashioned values. Sabi ng iba, “Sa mga shonda lang ’yun, sa mga matatanda, sa mga dinosaurs.” Young people are all in a hurry to be successful and sometimes get the notion that any way, any method, any strategy, any sacrifice, is worth whatever material success you are reaching for. Teaching the values of discipline and hard work is very challenging at present because of so many competitors. You see it on TV, how to do things, how to be successful, how to get rich quick. The other day, we had a session with the Bangko Sentral ng Pilipinas, which does something also very similar to what

you are doing. They encourage our children to save; to save in advance. I said, “You have a lot of work to do because consumerism is already deeply engraved in the Philippines. You see those ads, and those places where you are encouraged not only to buy and to spend your money, but to also go into debt.” Children and young people have their own credit cards and means of spending. I said, “You have a lot of competition and therefore you have a lot of work to do. You have to mobilize as many institutions as you can. It’s not enough to be having seminars, distributing all the little math books to the children, with little coins.” How much worth will children realize if perhaps they win overnight? It’s very important to the mind of learners. Again and again and again, if you want to survive as a nation, you have to sustain all these values of hard work and discipline. The story of Ambassador Cabangon Chua was beautifully related to us by a theater group. Let me also share with you parts of my own story. Many are already aware that I learned how to read and write through banana leaves, which have lines, and sharpened bamboo sticks as pencils at the age of 3, during the war years, because my mother was a teacher. And she had to think of ways of distracting the children around the mountain areas from where we were from the sound of airplanes fighting each other, from the stories of arrests, women eviscerated, children bayoneted. We have to be distracted and in the mean time, we learned how to read and to write. I am the child of teachers, we have never been rich. And as a teacher now, I am not rich. So when I went to school, I was immediately accelerated after the war because the district supervisor was surprised that a 4-year old could already read and write from banana leaves. This time, you have all the gadgets. You have computers, papers, pencils, televisions etc. and if all learners still don’t know how to read and write. If all learners still do not know values of citizenship then perhaps we have to go back to banana leaves. I finish high school at the age of 13 years old. In my home town, my

father who was a teacher, made me sell newspapers at the bus station. I was very small then. I clamber up and try to sell newspaper at the age of 8. I went to Siliman University on a scholarship. Of course, scholarships are never enough. This is something scholarship donors should bear in mind, it’s not enough. You should also pay for the child’s fare, for the child’s food, for the child’s uniform, for the child’s books. If you only give scholarships, you can’t have as many takers as you want. So at the age of 15, since I was enrolled in Business Administration in Accounting, I worked as a book keeper in one of the bookstores which is of course a very happy institution. To work in the bookstore is perhaps the best place to be in for a 15-year old. We have worked our way up and I don’t know if teachers tell the children that they have privilege. Or if the teachers tell their children that by the age of 21 they have to be congressmen and later on be a President. But as far as I know, teachers teach their own children and their own learners to be honest, to be just, to be fair to their fellowmen and to love their country and we should continue that. Now what are we trying to do in the Department of Education? You already know that we have added 2 more years to high school. This is because we have a lot of catching up to do with the rest of the world. We were, at the time, one of three countries which only had 10 years of basic education. And even if our graduates who go abroad may not admit it, whenever they go abroad, whether it is our neighboring country, or Europe, or even in Africa or to the United States, the number of years of their basic education will always be counted and they will not get the kind of job that they expect to get. So you will have supervising nurses starting as nursing aides. You will have doctors who will start as medical aides and so on. You have engineers, you have marine graduates, this is because you lack, we lack, at that time, 2 more years. It is, truly, a worthwhile investment. But what is important, and perhaps quite challenging, which Fortune Life, the Cabangon Chua

family, and all those who are interested in education, is the pace with which knowledge is changing. I just came from Peru, from a meeting of education administers in preparation for APEC. One thing that the President of Peru said was, “We should not just teach our learners facts”. Right now you will teach them days, facts, stories, formula, etc. By the time a learner or student graduates, whatever they learn is already irrelevant. Because technology, knowledge, creativity has already over taken them. What we have to teach our students and our learners is how to accept and to live with change. We have to teach them to be creative. To be innovative, but at the same time, we should not forget the values which they call by another name. We say values, discipline, hard work; they call them soft skills, which are very, very important. They are equally, if not more important, than the hard skills because the hard skills are changing right now at this very minute. I think you have realized, when you yourselves graduated that what you were taught in the university could not necessarily be applied in work. And the change is even much faster now. And this is where you might consider, scholarship programs that will contribute to the positive building of our teachers. We, teachers, cannot teach new things or ways of being creative, of confronting solutions, of living with change because it is so difficult to accept change. As a 76 year old, I have that kind of difficulty. I look at the skirts of girls and I have difficulty. All the explicit scenes in the movie, I have difficulty. But this is very very important, we are living in a world which is fast changing. We are living in a world which will be competing with us right in our own country. You have known this already because of the freedom, and the agreements we have with many other countries. Graduates of other countries are competing with us here and if we don’t catch up, and we don’t live with that, we don’t accept that, competition is here and if you don’t teach our students that, even if we add many more years in basic education, we will still be left behind. This is a task, this is a challenge, which is not only that of the Department of Education. I have said publicly, repeatedly, that the business of education, the responsibility for education is not only that of the department. It’s the most important value that we have in our culture. A peasant will sell his last carabao, a jeepney driver will mortgage his jeep to send his child to school. That’s how important our education is to us as a people and as part of our cultural tradition. It is our joint responsibility. We cannot do it alone. Fortune Life Insurance Company, the Cabangon Chuas, and Linda have shown that it is possible for us to work together. To capacitate our teachers, to inspire them, to encourage them; because we don’t learn everything in a university or in a teacher’s college. You have to study on your own and you have to keep up. Wherever you are, whether in Tacloban or Negros or right here in Manila. I am very glad that Arnold said that we are thinking of upgrading and expanding the program. I like it because it is focused on the theme of hardwork and on discipline. If others in the private sector, in civil society, in faith based institutions, which are very important players in education. Perhaps, if more and more of you are infected with the idea that we have a responsibility to our learners, then the burden will not be so heavy for Fortune Life Insurance Company. Again thank you very much. I am glad to finally meet Ambassador’s family. I am glad to meet Mrs. Bienvenida Chua whose name means “a good arrival.” Welcome to the Philippines, again. Welcome to all of us. Thank you very much.

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Women also face gender woes in trade

or women who face disadvantages in climbing the corporate ladder, entrepreneurship is a potential way for them to meet their potential. But even then, women still face gender-related constraints when starting a business, according to a study by the Asia-Pacific Economic Cooperation (Apec). Laws that restrict women’s access to financing are one key barrier for female owners of small and medium enterprises, according to the study. “Restrictive inheritance laws are a good example of this type of barrier. The practical effect is that these laws prevent women from using land as collateral when applying for loans,” said Carlos Kuriyama, senior analyst at Apec’s policy support unit and a coauthor of the study. “In some economies, women are unable to apply for credit without authorization from their husbands.” “Because of this, women small business owners tend to turn to nonbank institutions, such as microfinance organizations, to gain capital,” Kuriyama said. “With this insight into the financing challenges, Apec can highlight the laws that restrict equal access to capital and hopefully encourage reform.” Another issue facing female entrepreneurs is cultural and social norms, which result in women having less time to devote to business because of the need to engage in household tasks, like childcare. Having access to affordable formal childcare would enable mothers to spend more time on paid work, including their own businesses, according to the study. Bloomberg News

Thursday, October 27, 2016 A17

Palscon, business groups unite to end contractualization, ‘endo’ practices

he Philippine Association of Legitimate Service Contractors (Palscon) linked up with other groups with the hopes of sending a united voice to end the illegal-employment practice of “contractualization” or “end of contract,” more popularly known in the country as endo and “5-5-5.”

During its recent general membership meeting, Palscon invited various employers’ groups and other associations, such as the Employers Confederation of the Philippines (Ecop), Makati Business Club, Semiconductor and Electronics Industries of the Philippines Inc. and the Philippine Chamber of Commerce and Industry (PCCI), to name a few, for a dialogue on the issue. The objective of the historic dialogue between Palscon and the associations was to unite and find winnable solutions to end endo and 5-5-5. Many from the government and labor groups are clamoring for an end to these “illegal” labor practices that they see as detrimental to

the economy and the growth of the Filipino labor force. In light of this important meeting, Palscon already came up with a draft manifesto and provided it to all the groups that promised to look and review it. As soon as all issues are thoroughly discussed, Palscon and the groups will issue a joint statement regarding the result of their discussion. Ecop President Donald Dee said they welcomed the invitation of Palscon to the dialogue on the issue. “We are glad that Palscon invited us to sit down with them, together with other concerned groups and, hopefully, we can resolve this together very soon.” George Barcelon, president of

The Board of Trustees of the Philippine Association of Legitimate Service Contractors (Palscon) are shown in the photo along with Employers Confederation of the Philippines President Donald Dee (sixth from left) and Palscon National President Rhoda Caliwara (fifth from right). Also in the photo are (from left) Jojo Jabines, Palscon treasurer; Henry Nuqui, vice president; Sarah Deloraya, past president; Fermin Cunanan, past president; Lea Soriano, auditor; Butch Guerrero, past president, and Armand Gutierrez Jr. and Agnes Escalona, directors.

PCCI, for his part, said they fully support Palscon and the call to end endo and 5-5-5, once and for all. Both acknowledged that Palscon’s draft manifesto is a good step to have the voice of the service contractors be heard, and promised that they will both study its contents. “Time and again, Palcson is at the forefront of combating illegallabor practices. Service contracting is already a globally accepted labor

trend. Our objective is to help educate the public and our Filipino workers and, of course, the government regarding service contracting and, hopefully, we will reach our objective together with our partners here today,” said Rhoda Caliwara, president of Palscon. Caliwara said service contracting cannot be banned, since it is already an accepted labor practice with many benefits among major countries,

such as the United States, China, Japan and in many countries in Europe, and that most workers are satisfied under an “agency” setup. “Agency work is the first to adjust to major market fluctuations and, most of all provides flexibility to corporations,” Caliwara added. She said in the Philippines, service contracting is allowed under Articles 106 to 109 of the Labor Code. In 2011 the Department of Labor and Employment (DOLE) passed Department Order (DO) 18-A, which raised the standards of service contracting to include higher capitalization to prevent “labor-only” contracting. The DOLE pegged a minimum capitalization requirement of P3 million for agencies, a registration fee of from a measly P100 to P25,000, and a minimum administrative fee of 10 percent to prevent cutthroat competition in the industry. DO 18-A’s stringent requirements, according to Caliwara, also helped Palscon police its ranks and reduced the number of service contractors from more than 16,000 to only more than 5,000 in 2015 to eliminate the so-called fly-by-night contractors. “We hope the government should inspect first these flyby-night agencies rather than the registered contractors who are the ones complying with the law,” he said.

A18 Thursday, October 27, 2016 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

‘We love you, Mr. President’

‘A

ll of a sudden, Filipinos matter” is an opinion piece recently published by the South China Morning Post. The title sounds derogatory for us, but the author, Alex Lo, was just trying to explain something impressive about President Duterte. His words: “The Philippine President is making everyone sit up and take notice, and that includes Hong Kong.”

Lo wrote that many people in Hong Kong look down on Filipinos, particularly the quarter of a million Pinays working as domestic help in this autonomous territory. A radio commentator who shares this offending attitude, Chip Tsao, once had to publicly apologize for calling the Philippines a “nation of servants”. After Beijing rolled out the red carpet for Duterte during his recent state visit, Lo believes that Hong Kong would see which way the wind is blowing in its treatment of Filipino workers. Definitely, the Duterte administration is getting things done for overseas Filipino workers (OFWs) in Hong Kong. Specifically, Duterte has forced a new condition in the contracts of Filipino helpers that bars them from having to clean the exterior of windows. This came after several domestic help fell to their deaths while cleaning windows. The senseless deaths of Filipino domestic help from falls could have been prevented. But they have been happening again and again for years, because the Aquino administration did nothing to protect our workers. With Duterte’s order to stop the practice, Hong Kong employers’ groups are worried Filipino domestic help would now refuse to clean windows. They have lobbied with Hong Kong’s Labor and Welfare Bureau, which convinced the Philippine consulate to suspend the ban for 30 days as they work out contract details. For our 15 million overseas workers, Duterte is seen as someone fighting for the dignity of the country and its people. They believe that the goal of the Duterte administration is to improve the economy to make overseas employment no longer a necessity. Just recently, Duterte promised to provide assistance to 129 overseas Filipino workers who lost their jobs in Saudi Arabia and have not received salaries from their employers. “Give me time to fix the economy, and you will have the opportunity to work here,” the President said, as he welcomed them at the Ninoy Aquino International Airport. Our OFWs just love the President. In his state visits in Brunei, China and Japan, thousands of OFWs met him with cheers, as some of them carry placards saying, “We love you, President Duterte.” To them, “President Duterte has accomplished a lot in his 100 days in office, and is the right leader to serve and protect the integrity of all Filipinos.” A Cebuano said: “I think it’s good that he is addressing issues like crime, drugs and corruption. I used to worry about getting robbed downtown, but it’s much safer now to walk around.” And these are the words of an obvious fan: “He is a man of and for the people. Yes, he is vulgar, foul-mouthed, and says what he thinks without a filter. But he is also sincere, honest and hardworking, and he loves the poor and the weak. And he has a sense of humor to boot. Despite his rough rhetoric and unpolished behavior, he is intelligent and clever, and he thinks and plans strategically.” Yes, Virginia, say what you will about Duterte, but our President is, indeed, making everyone sit up and take notice. Since 2005

BusinessMirror A broader look at today’s business

Another ‘historical perspective’ rant John Mangun

OUTSIDE THE BOX

talian philosopher and novelist George Santayana: “Those who cannot remember the past are condemned to repeat it.” English writer Aldous Huxley: “That men do not learn very much from the lessons of history is the most important of all the lessons of history.” American political journalist and world peace advocate Norman Cousins: “History is a vast early warning system.”

All these wise men—obviously, they are wise since we still quote them—agree that what happened yesterday is important for our thinking today. Of course, French Emperor Napoleon Bonaparte had a slightly different view: “History is the version of past events that people have decided to agree upon.” American civil-rights leader Martin Luther King wrote, “We are not makers of history. We are made by history.” That idea was totally discarded by Winston Churchill who said,

“History will be kind to me for I intend to write it.” Probably Churchill is the closest to the truth about history. You have to give the Chinese government credit for “writing” a 500-year history to substantiate their claim to the South China Sea. In fact, it is surprising that a clay tablet from the site of the 2000year old “Terracotta Army” sculptures was not included. It would have probably read something like, “Just got back from Scarborough… uh…Panatag…I mean…Huangyan

Due process rolls on estafa suit vs ICTSI

✝ Ambassador Antonio L. Cabangon Chua

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Dao Shoal. Great fishing.” Maybe the real blame for the territorial disputes probably should go the 16th-century Portuguese sailors and traders that called this ocean area the China Sea (Mar da China). If only some romantic sea captain had named it after his mother or girlfriend—Mar da Matilde or Oceano da Catarina. Even in most recent times, the “history” of the area is clouded. The Spratly Islands are thought to have been named by 19th-century British sea captain Richard Spratly. Except there was also a Henry Spratly sailing in the area who supposedly “discovered” Mischief or Panganiban Reef. The reef was named by Henry after one of his crew, a German sailor named Heribert Mischief. Why Captain Spratly did not name the reef after his wife or girlfriend has been lost to history. At least the recent history of the area is less clouded. A 1995 agreement about the Spratlys between the Philippines and China with the efforts of the Association of Southeast Asian Nations (Asean) was immediately violated by both China and

Part one

he Manila Prosecutors Office is now in the thick of ferreting out the truth behind the claim of Makiling Farms Inc. (MFI) that its 5-percent holdings in E. Razon Inc. (ERI) was illegally transferred to the International Container Terminal Services Inc. (ICTSI) to the detriment of MFI.

ERI was the former corporate name of ICTSI. Documents obtained by BusinessWise reveal new evidence presented by MFI to bolster its claim; and it now claims collusion between ICTSI and the Presidential Commission on Good Government (PCGG) to deny it of its rightful claim. Also in an e-mail sent to BusinessWise, MFI’s Francis de Borja said his company has obtained a copy of the agreement between the PCGG and Enrique Razon Sr.: “This agreement, which Razon Jr. had steadfastly refused to produce, was used by the Razons to justify the transfer,” and that “the agreement was never notarized nor submitted, as provided for by law, to the Sandigayan for approval.” De Borja furnished BusinessWise with

the document. He said that, at worst, the document proves that “Mr. Razon Jr. acquired control of ICTSI fraudulently in collusion with the PCGG. They document how corrupt previous PCGG managements [were] as demonstrated by their actions and, yes, inaction, depending on what course was beneficial to the Razons and the PCGG managements over the years.” To refresh, the PCGG in 1986 or about six weeks after the Edsa revolution, sequestered ERI and its assets. The PCGG claimed that the ERI “was a crony-company [of the late] Ferdinand E. Marcos. In July 1987 the PCGG filed an ongoing case [#0010] in the Sandiganbayan against 49 individuals, including Enrique Razon Sr., in his personal capacity, with a

claim of P51 billion for the recovery of ill-gotten wealth.” ERI was majority-owned by the family of Enrique Razon Jr. while MFI was ERI’s minority shareholder owning 5 percent of the company (basis of dilution from original 10-percent shareholding still under investigation by MFI). MFI is a small, family-owned company whose patriarch was involved with ERI from 1964. Between1965 and1988 ERI was the government-franchised original arrastre operator of Manila South Harbor. On December 24, 1987, ICTSI was incorporated with ERI as controlling shareholder with 28,049,600 out of 60,000,000 (47.5-percent) shares. In early 1988, the government bid out the arrastre contract as the Manila International Container Terminal (MICT). In May 1988 ICTSI won the contract for MICT in lieu of ERI, which did not participate in the bidding and, therefore, ceased its business activity of arrastre operations from the mid-1960s. In 1989 and 1990 shortly after all the ERI shares in ICTSI were transferred to Enrique Razon Jr., Enrique Razon Sr. and two Razon-controlled companies. MFI claims that “clearly, only the Razon family benefited from the ICTSI success story and the minority was left with a shell company.” On March 28, 2000, the Security Exchange Commission revoked the Certificate of Registration of ERI

our good neighbor Malaysia, which both built structures on the reefs. About that time, I was an occasional guest on a Radio Veritas roundtable program. On one instance, this was the topic of discussion and another guest was the “attaché for who knows what” from the US embassy. I asked him, “Why hasn’t the US done something substantial to help the Philippines as these countries invade the economic zone?” His reply: “The Philippines exclusive economic zone does not fall under the Mutual Defense Treaty.” “Why hasn’t the US taken this issue to the United Nations?” The attaché answered, “The United States does not involve itself in bilateral disputes.” The wise men are right. History does provide an early warning and we are condemned to repeat it because we do not learn from the past. E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stockmarket information and technical analysis tools provided by the COL Financial Group Inc.

for failure to submit mandatory financial reports and General Information Sheets over a number of years. Strangely enough, ERI did not appear in the proceeding nor contest ERI’s closure. Up to September 2016, 16 years later, ERI has not been liquidated and its assets distributed to its shareholders, including MFI. In March 2016, or 12 years “of protracted, but fruitless, negotiations between Razon Jr. and his representatives,” MFI wrote Razon a final demand letter with a threat to file the Estafa suit. Razon Jr.’s representatives then offered a settlement of P10 million, which MFI declined. On July 17, 2016, Makiling filed a criminal complaint of Estafa against Enrique Razon Jr. with the City Prosecutor of Manila. All the 50,038,674 ICTSI shares (now 418,872,928 after stock dividends with market value of P33.5 billion at P80 per share) owned by ERI, where Makiling is a stockholder, were transferred to Razon-related interests. (All four deeds were signed by Razon Jr. and Razon Sr. representing the assignee and/or the assignor. The transfers were made without any cash payments and offset against alleged existing advances or alleged future advances). To be continued For comments and suggestions, e-mail me at mvala.v@gmail.com

opinion@businessmirror.com.ph

Opinion

Holistic consumerism

The gracious and merciful Lord

BusinessMirror

the weak and the needy, those who are burdened in this world and who on their own are falling.

Ariel F. Nepomuceno

Msgr. Sabino A. Vengco Jr.

DECISION TIME

Alálaong Bagá

ealth is wealth. And by all economic indications, it is just rightly so. I intend to write on this crucial topic amid the nerveracking politics nowadays. Hopefully, to help remind us of one of the most important things that we should always care for. Besides, businesses must be aware of the encouraging numbers when it comes to health as an industry.

less the Lord, for He is merciful and good to all; He raises up those who are bowed down (Psalm 145:1-2, 8-9, 10-11, 13-14). God’s gentle and loving compassion seeks out the lost and makes them welcome and gives them joy (Luke 19:1-10).

The Preamble to the Constitution of the World Health Organization has defined health as “state of complete physical, mental and social wellbeing and not merely the absence of disease or infirmity.” The definition has not been amended since 1948. Fast-forward to now, man’s quest for health and wellness have been pursued without letup by both public and private sectors. Not surprisingly, since health and wellness are integral to a progressive and sustainable future. As Winston Churchill puts it, “Healthy citizens are the greatest asset any country can have.” Health and wellness have their own fads. For 2016, Alicia Bhagat of the Huffington Post named five health-and-wellness trends that resonate most to people of various demographics. These include: New minimalism “whereby consumers take more time to purchase fewer goods of a higher quality and [stay] more organized overall”; back to basic food whereby “more and more consumers simply want to make healthier food choices in the long term”; clean labeling whereby “consumers are much more aware of ‘negative’ or perceived harmful chemicals and additives in products”; thriving microbiome whereby “more people are now aware of the importance of bacteria that lives on and within the human body… much of the bacteria within us is linked to healthy, functional systems”; and holistic consumerism whereby “consumers want products that make them feel good mind, body and soul.” Holistic consumerism. This is one of the major shifts that have been noted in the health and wellness category. Aside from simple exercise and nutrition, mental health is also thrown into the mix, which accounts for positivity, mindfulness, relaxation and self-care.

Global wellness industry

Because of humanity’s ever-increasing propensity to consume that which will make people holistically well, the global wellness industry is said to be a $3.4-trillion market, or 3.4 times larger than the worldwide pharmaceutical industry. This is according to a research done by SRI International, an American research institute. The study was commissioned by the Global Wellness Institute, a nonprofit organization whose mission is to empower wellness worldwide by educating the public and private sectors about preventative health and wellness. The January 2016 study named the following 10 key sectors that comprise the global wellness economy: Beauty & Antiaging ($1.026 trillion); Healthy Eating/Nutrition/Weight Loss ($574 billion); Wellness Tourism ($494 billion); Fitness & Mind/Body ($446.4 billion); Preventative/Personalized Health ($433 billion); Complementary/A lternative Medicine ($187 billion); Wellness Lifestyle Real Estate ($100 billion); Spa Industry ($94 billion); Thermal/ Mineral Springs ($50 billion); and Workplace Wellness ($41 billion). It also noted that the figures may not add up due to overlap in some of the identified sectors. At the center of this multitrilliondollar economy still rests humanity’s primeval quest to be well.

Healthy attributes Filipino consumers look for

Nielsen’s recently released Global Health and Wellness Survey has

shown the Filipino consumers’ psyche when it comes to products that they prefer, consume, or patronize. Filipino respondents basically consider beneficial ingredients as important. By beneficial ingredients, they mean foods that are vitamin fortified (64 percent); calcium fortified (60 percent); minerals fortified (60 percent); and micronutrient fortified (53 percent). Aside from beneficial ingredients, they also value functional foods or those that provide benefits that can either reduce their risk of disease and/or promote good health. These include foods that are fiber-rich (63 percent), proteinrich (52 percent) and whole grain (45 percent). Interestingly, Filipino consumers are also going back to the basics when it comes to their food choice. Sixty-four percent of respondents said they prefer foods that are made from vegetables/fruits; 60 percent said they like foods that are all natural; 45 percent preferred foods without genetically modified organisms; 49 percent approved of foods without artificial colors; and 48 percent manifested that flavors are important to them. When it comes to environmental and socioeconomic factors that affect their purchase decision, 42 percent said local herbs/ingredients are very desirable and 36 percent thought ingredients must be sustainably sourced.

Locally grown natural products

The Philippines is a treasure trove of organically grown plants and herbs that can make a dent in the global wellness market. One of these is our malunggay, or known worldwide as moringa oliefera. While malunggay is a common backyard tree for us, elsewhere around the globe, it is scientifically touted as one of the most generous and versatile plants. Almost all of its parts may be turned into a number of valuable products for a variety of purposes. Aside from its high-nutritional value, it can also be used for industrial, cosmetic, therapeutic and nutritional products. Locally, for example, out in the drugstores today is the Life Oil food supplement. The first and only pure malunggay oil extract in a capsule, it conveniently captures in a gel the natural nutrients of malunggay, such as vitamins, minerals, essential amino acids, phytochemicals, and living chlorophyll. Each soft gel is equivalent to half a kilo of fresh malunggay leaves! Thus, it essentially delivers what health-and-wellness consumers are looking for. Even doctors are surprisingly recommending this to their patients who look for a natural health ally against sickness. I have always been a firm believer and advocate of locally grown natural products. Methinks, it goes with our cultural grain as Filipinos to honor what the land yields for us. Whether for food, healing, or wellness, nature still nurtures us best. To me, this pretty sums up what holistic consumerism is all about, as well. Where the consumer goes, the market goes. With the renewed fondness of buyers for locally grown, beneficial and functional natural products, I look forward to the day when ingenious Filipino products get to breakthrough and capture the fancy of the global wellness market. For comments and suggestions arielnepo.businessmirror@gmail.com

Thursday, October 27, 2016 A19

The Lord is gracious and merciful Psalm 145, used in six Sunday Eucharistic celebrations in the cycle, is a hymn of praise of the greatness of God. Opening with an acclamation acknowledging the name of God as revealed to Moses at the reestablishment of God’s covenant with the chosen people (Exodus 34:6), the psalmist commits himself to extol and bless and praise God every day and forever and ever. The reasons given are the manifest characteristics of God, not only in His covenant dealing with Israel, but comprehensively in all His works regarding all of creation and all nations: God is gracious (hannum), compassionate

and merciful (rahum), loving and kind (hesed). That is why all of God’s works should give Him thanks, and all His faithful ones bound to Him in covenant are summoned to bless and honor Him in awe. God is here portrayed like a monarch ruling over a kingdom, all-encompassing and eternal, whose glory (kabod) is of such magnitude and splendor it is the talk of everyone. And His covenanted faithful ones are called to proclaim to all humankind the glory of God’s rule so that all may participate in it. The final lines extol God’s faithfulness and holiness in all His works, and focus on the divine mercy and care, especially for

To all who are open to grace

A man of obvious disrepute and a big sinner in the public eye, Zacchaeus displays certain good qualities. His interest to see Jesus overrides any shame and embarrassment in climbing a tree. His openness to grace bears fruit in his immediate response of hospitality to Jesus who is so suddenly personally available and calling him. He accepts that he is a sinner, and the sincerity of his conversion is demonstrated by his generous restitution, not merely the return of the amount extorted plus the required 20 percent, but fourfold of whatever he may owe anyone. His care for the poor is now concretized by his donation of 50 percent of his possessions. Zacchaeus wants to see Jesus. Now Jesus takes the initiative and seeks him. Jesus singles the man out from the crowd and calls him. He invites himself to his house; he even expresses the urgency of his mission to enter his house and his life. Jesus must come to Zacchaeus so that today God’s saving love for His people may be extended to him.

Hurrying down as commanded, Zacchaeus happily welcomes Jesus into his life. Accepting the man’s hospitality, Jesus eats at his table and shares his life. To his critics, Jesus insists that only those who are admittedly lost can be found, just as only those who see that they are perishing can be saved. Implied is that the selfrighteous people miss opportunities for their own salvation. Alálaong bagá, inviting himself to Zacchaeus’ home, Jesus becomes the host and shares His life with the man. Jesus’ unrestricted love and offer of friendship moves the man to repentance and radically transforms him. Entering into the sinner’s home, Jesus gives him entrance into God’s kingdom and participation in the community of God’s children. The gentle compassion and presence of Jesus is a catalyst of conversion, bringing reconciliation and healing to one who is bowed down in sin. With the psalmist, we thank God and bless His holy name because of His gracious mercy in seeking and saving what was lost. Join me in meditating on the Word of God every Sunday, 5 to 6 a.m. on dwIZ 882, or by audio-streaming on www.dwiz882.com.

Imagine jailing the central bankers who saved the world

By Mark Gilbert | Bloomberg View

he United Kingdom may be on the verge of an unprecedented experiment in public accountability. The courts may soon be invited to consider the following question: Should government officials face prosecution if the actions they took to support the financial system during the credit crisis stink in hindsight? In late 2007 and early 2008, with markets in a meltdown and the health of British banks under relentless scrutiny, the Bank of England (BOE) belatedly pumped money into the financial system. With money markets seized up and liquidity hard to find, banks were invited to trade assets for central bank cash. At issue is whether officials nudged, steered or ordered—take your pick—financial firms to act in unison, ensuring that no single bank looked more desperate for assistance than its peers. In other words, were these transactions rigged? Sir Paul Tucker, the former deputy governor of the BOE, was interviewed this year as part of an investigation by the Serious Fraud Office (SFO), the Financial Times reported this week. The department, which opened the probe in March 2015, will decide whether to pursue any charges by the end of the year, Bloomberg News reported at the start of August. The central bank has already conducted its own probe, handing its results to the SFO in November 2014. The concerns that might have prompted BOE executives to micromanage the deals were outlined by former Governor Mervyn King in testimony to lawmakers in December 2007: A key lesson that central bankers around the world have taken from the recent turmoil is that in stressed

conditions, any bank that is seen to come to the central bank to borrow, whether in regular standing facilities against high-quality collateral, or against wider collateral in a discount window or support operation, can become stigmatized in the market. If officials were, indeed, guilty of effectively dictating how much money banks should ask for in an effort to stop the needy from being besmirched, should they face trial? Kit Juckes, the global strategist at Societe Generale in London, doesn’t think so. “Let things the battlefield surgeons did to keep the army alive remain unspoken,” he said in an exchange on Twitter with me this week. “Alternative too dreadful to think about.” Dan Davies, a senior research adviser at Frontline Analysts, agrees. “It’s a disproportionate amount of effort to put into a ‘crime’ that was not only victimless, but socially useful,” he said in the same Twitter exchange. Imagining the counterfactual— the economic fallout had central bankers not acted—is a powerful argument. I would contend, however, that the key issue isn’t whether officials manipulated the liquidity process; it’s the secrecy surrounding that injection. Rather than faking an open auction for cash, the central bank could simply have allocated identical amounts to each institution,

regardless of their size, but ensuring that the amount of support was sufficient to bolster even the weakest institution, with the other recipients enjoying a harmless excess of funding. No secret deals, no under-the-table instructions, and no stigma. The BOE, unfortunately, has something of a track record on trying to avoid transparency. When mortgage lender Northern Rock got into terminal trouble in September 2007, the central bank’s knee-jerk reaction was to attempt a secret bailout. “The Bank of England might have dealt with the situation by acting covertly as lender of last resort, without publishing it until the process had finished,” King later told lawmakers investigating the first run on a UK bank in more than a century. “That would have been my preferred course.” Lawyers, though, had advised King that a backdoor rescue would break European law. Moreover, as the threat to the global financial system worsened, King found a way to secretly funnel £62 billion ($76 billion) to Royal Bank of Scotland Group and HBOS in October 2008. Those covert loans were kept quiet for more than a month, and weren’t even revealed at the time they were made to members of the central bank’s monetary-policy committee, former policy-maker Danny Blanchflower revealed in a New Statesman magazine article in December 2009. Then, there’s the not-inconsequential issue of whether Tucker instructed Barclays to lowball its money-market Libor submissions in 2008. Tucker denies it; former CEO Bob Diamond says it happened. But a recording or

transcript of the key telephone call has never turned up. And there are former Barclays traders doing jail time for their parts in rigging Libor who might otherwise be free. Tucker’s SFO interview wasn’t under caution, meaning he isn’t a suspect. The SFO may well decide that it isn’t in the public interest to pursue the matter. But if its investigations show that there is a case to be made, there should be no limit to how high up the UK financial-management pyramid the investigation goes. I have a lot of sympathy for any government official who was fighting fires during the financial crisis. At at the peak, the government’s support for the banking system meant taxpayers were on the hook for £1.3 trillion ($1.6 trillion), equal to about half of an entire year of UK economic output. Royal Bank of Scotland remains a ward of the state, owned by UK taxpayers. So it seems to me right and proper that officials should have their day in court to defend their actions publicly if they’re charged. In Other People’s Money—and How Bankers Use It, American litigator Louis Brandeis explained why: Publicity is justly commended as a remedy for social and industrial diseases. Sunlight is said to be the best of disinfectants; electric light the most efficient policeman. All too often in public life, it’s not the bad decision that trips people up, it’s the cover-up that follows. The circumstances under which public money was used to prop up private banks almost a decade ago need to be brought out into the daylight—if only to ensure that the next crisis isn’t resolved in the shadows.

Tobacco taxes work, but only if they’re high

hen smoking costs more, more people quit. That’s why higher cigarette taxes are almost always good policy, for smokers and the public health, too. There’s a catch, though—and it’s one that voters in four states should keep in mind as they consider ballot initiatives next month to raise cigarette taxes: Sin taxes work only if they’re high enough. Voters in California, Colorado and North Dakota are being asked to raise state taxes to well over $2 a pack. Then there’s Missouri, where voters will choose from two increases so meager that they make a mockery of the very idea of sin taxes. Properly calibrated, tobacco excise taxes can be a powerful weapon against smoking and the

disease and death it brings. Raising taxes enough to boost the price per pack by 10 percent lowers adult consumption by 3 percent to 5 percent. Among teenagers, consumption falls 6 percent to 7 percent. This effect is especially pronounced among lower-income smokers—the upside of imposing such a regressive tax. And it’s made even stronger if some of the tax money is invested in public-health efforts to help people quit, as the California initiative (which is supported by Michael R. Bloomberg) would do. Substantial cigarette taxes also generate revenue, of course, but this is a secondary benefit. It’s never enough to cover the high costs that states incur from tobacco use, in the

form of Medicaid expenditures, for example, and lost productivity. Ideally, in fact, as more smokers quit, revenue from a cigarette tax should gradually diminish. The World Health Organization says taxes should amount to 70 percent of the price of a pack of cigarettes. No taxes in the US are that high, though in some cities they come close. In Chicago the various taxes on each pack—federal, state, county and city—amount to about 60 percent of the $12 price, and public health officials say this has helped lower the smoking rate. If California’s ballot measure passes, the state tax per pack will rise to $2.87, from 87 cents. In Colorado it will go to $2.59, up from 84 cents, and in North Dakota to $2.20,

from 44 cents. There are a couple of drawbacks: Revenue from the North Dakota tax would not be used to fund any efforts to help people quit smoking. In Colorado electronic cigarettes would be exempt. But in all three states the increases are big enough to be worthwhile. Missouri’s two proposals are not. And neither—one would raise the state tax to 40 cents, from 17; the other to 77 cents—would be used to fund antismoking efforts. So it’s not surprising tobacco companies support both proposals, and publichealth organizations oppose them. They seem designed not to lower Missouri’s smoking rates, but to discourage the state from everraising taxes high enough to make a difference.

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A20 Thursday, October 27, 2016

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PO FAMILY-LED ARTHALAND BULLISH ON THE VISMIN MARKET, LAUNCHES CEBU EXCHANGE

By Rizal Raoul Reyes

be finished in 2022.

FTER developing an exclusive niche presence in the Metro Manila market, ArthaLand Corporation of the Po family carries its bullish mode by expanding in the Visayas region. “With the continuing market optimism on Visayas and Mindanao, ArthaLand sees robust opportunities, especially in the information technology and business process management sector. This is why we are aiming to launch Cebu Exchange,” said Angie de Villa-Lacson, the company’s president and CEO. Lacson said ArthaLand plans to be present in major cities in the country. “Cebu has displayed fantastic growth potential and the local government has built worldclass infrastructure for business and tourism,” she explained. A joint venture project, ArthaLand will have a 60 percent stake while Hong Kong-based Arch Capital will have a 40 percent equity. She said the P8 billion Grade-A

office development is designed to address the information technology and business process (IT-BPM) outsourcing industry’s growing demand for bigger and better quality space. The project will rise at the property that ArthaLand recently acquired along Salinas Drive, at the Cebu IT Park area. Recently, Leechiu Property Consultants (LCP) chief executive officer David Leechiu said the country’s IT-BPM industry will continue to grow in the next six years by doubling its current workforce from 1.3 million to 2.6 million. Furthermore, Department of Trade and Industry Secretary Ramon Lopez mentioned that IT-BPM industry is going be $250 billion by 2022. In its 2011-2016 roadmap, the IT-BPM aims to generate revenues

up to $25 billion and employment of 1.3 million by year's end. To be built on more than 8,000 square meter prime property, Cebu Exchange will be the largest and the tallest IT-BPM business ecosystem at the Cebu IT Park area. The 38-storey office building will house four floors of complementary retail outlets and 30 large-cut flexible office floors. Moreover, the office units are also suitable for knowledge process outsourcing (KPOs) and other allied services. Cebu Exchange will have 27 retail offices and 316 office spaces. Total retail space is 3,900 square meters and 83,100 square meters. Construction of the first tower will start on first half of 2017. Delivery of the first phase is scheduled on 2020 while the second phase is expected to

Truly green

LACSON said Cebu Exchange will be VisMin’s first and only office development to be on target to achieve dual green building certification under the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) program and the Philippine Green Building Council’s Building for Ecologically Responsive Design Excellence (BERDE) certification programs. To ensure resource efficiency for the building’s locators, Lacson stressed Cebu Exchange will feature green elements such as efficient building envelope, water efficient plumbing system, low-energy consuming air-conditioning system,

efficient lighting system, use of lowemitting materials, and allocation for Low-Emitting & Fuel Efficient Vehicle (LEFEV) parking. With its strategic location and strong connectivity to the community, the project is going to contribute a lot in lessening the carbon footprint because this will require lesser use of motorized vehicles. Lacson stressed Cebu Exchange is future-proofed to accommodate future technological advances.

Enhancing business

ACCORDING to experts and property analysts, certified green buildings are preferred by multinational players as required by their home offices. “ArthaLand is the only Philippine developer that puts sustainability

at the core of all its projects. This is why we know that the expertise that we bring to Cebu and the rest of Visayas and Mindanao will further boost the region’s business viability,” de Villa - Lacson underscored. “Cebu Exchange will change VisMin’s real estate landscape. Cebu Exchange will be the Future of Business in the region,” she emphasized. Just like Arya Residences and the ArthaLand Century Pacific Tower, Cebu Exchange will carry the green DNA of the company that is essentially world-class, boutique and sustainable. These three will always be at the core of all projects, in whatever business segment that we serve,” she added.

ArthaLand is the only Philippine developer that puts sustainability at the core of all its projects. This is why we know that the expertise we bring to Cebu, and the rest of Visayas and Mindanao will further boost the region’s business viability.” —De Villa-Lacson, arthaland president & ceo