Businessmirror september 12, 2016

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Monday, September 12, 2016 Vol. 11 No. 338

Extension of rice-import quota unlikely–Pernia

T

By Cai U. Ordinario

@cuo_bm

he removal of the quantitative restriction (QR) on rice, which has allowed the Philippines to control the entry of rice imports, may be considered a “done deal,” according to the National Economic and Development Authority (Neda).

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June 30, 2017 The expiration date for the quantitative restriction on rice Socioeconomic Planning Secretary and Neda Director General Ernesto M. Pernia recently told reporters that Agriculture Secretary Emmanuel F. Piñol, who favors another extension of the QR, may be “overruled”.

In the core economic cluster of the Du-terte administration, Pernia said Finance Secretary Carlos G. Dominguez III Continued on A2

BMReports

Alcohol sector drinks in impact of ‘sin’ tax law

PPP Lead Alberto C. Agra

W

hat is this P4 Program for local government units(LGUs)?

What is the difference between P4 and P3, or public-private partnership?

What is the role of the Department of the Interior and Local Government (DILG) in the promotion of P3/P4 at the local government level?

■ DILG memorandum circular (MC) issued. Last Tuesday, September 6, Secretary Ismael D. Sueño signed an MC setting into motion the department’s LGU P4 initiative. P4 stands for PPP for the People. The Union of Local Authorities of the Philippines, privatesector umbrella organizations, PPP Center and the DILG family witnessed the issuance of this landmark regulation.

Continued on A14

e4

Questioning Claims That Are Too Good to Be True

‘The Woman Who Left’ wins top prize at Venice Film Festival

V

monday morning

e1

novak guns for 13th major crown This undated photo shows workers arranging cases of beer in a warehouse in Manila. A “sin” tax law applied three years ago has significantly affected the industry, as well as the government war chest. Nonie Reyes

By VG Cabuag @villygc

sports

c1

T

Part One

HE effect of the “sin” tax law has been more evident in alcoholic-beverage consumption as volumes dropped in the industry since 2013, the first year higher taxes were first implemented.

Unlike in the tobacco sector,

PESO exchange rates n US 46.8370

where players continue to claim the increase in tax rates result to illicit trade, alcoholic-beverage manufacturers admitt the hike in taxes affected them on the first year that Republic Act (RA) 9334 took effect.

Based on their financials, most firms manufacturing alcohol products and listed in the Philippine Stock Exchange have shown a

drop in sales, as prices went up as RA 9334 was applied. San Miguel Brewery Inc. reported a 9-percent drop in the volume of sales in 2013 to 204 million cases, from 225 million cases in 2012. Sales, meanwhile, fell 1 percent to P75.05 billion, from P75.58 billion in 2012, disclosures by the country’s largest beer manufacturer revealed.

ENICE, Italy— The black-andwhite revenge tale The Woman Who Left, by Filipino director Lav Diaz, won the Golden Lion prize for best picture on Saturday at the Venice Film Festival.

Andre Konchalovsky and Amat Escalante shared this year’s Silver Filipino filmmaker Lav Diaz holds the Golden Lion Lion for best direction award for his movie Ang Babaeng Humayo (The for their respective films: Woman Who Left) at the awards ceremony of the Paradise, from Russia and 73rd Venice International Film Festival in Venice, Germany; and The Un- Italy, on September 10. M. Angeles Salvador/ANSA via AP tamed, from Mexico.

Tom Ford’s noir thriller Nocturnal Animals, from the US won the grand jury prize.

Argentine actor Oscar Martinez of The Distinguished Citizen, and American actress Emma Stone of La La Land, were honored with the acting trophies.

Noah Oppenheimer won best screenplay for Jackie, which centers on Jackie Kennedy at the time of See “Film festival,” A16

Continued on A2

n japan 0.4570 n UK 62.2792 n HK 6.0384 n CHINA 7.0273 n singapore 34.6581 n australia 35.7835 n EU 52.7572 n SAUDI arabia 12.4905

Source: BSP (9 September 2016 )

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A2 Monday, September 12, 2016

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Alcohol sector drinks in impact of ‘sin’ tax law Continued from A1

Stiff competition

SAN Miguel claims to corner a commanding 90 percent of the beer market, with no other company coming close except for Lucio Tan’s Asia Brewery Inc., which continued the introduction of products into the market.

Ironically, Filipino consumers who have long-supported San Miguel have become the company’s stiff competitor. The changing drinking habits of these consumers eroded the already shrinking beer market to other products, such as the alcohol-laced pop drinks, the so-called “alcopop”, of Asia Brewery under the Tanduay Ice brand.

However, the industry-wide slump at the end of 2013 did not spare Asia Brewery.

“The beer and alcopop segments of the company’s portfolio experienced significant drops in volumes and revenues as the industry and market reacted to the severe increases in specific taxes imposed during the year,” the company said in its report on its 2013 performance.

While the company supplies the beer and alcopop segment of Tan’s business, it also sells other nonalcoholic products, such as water and energy drink.

Possible downshifting

FERMENTED liquor, such as beer, has a two-tier tax structure—one

for the lower-priced and another for the higher-priced segment.

Like in cigarette products, both tiers will be taxed at the same rate starting in 2017 in order to prevent possible downshifting to cheaper products.

Alcohol products priced P50.60 per liter and below were slapped P15 beginning 2013. Every year, the tax imposed on these products increased by P2. By next year, taxes on these products P2017 will only increase by P1.50 to reach P23.50.

For those priced above P50.60 per liter, the tax started at P20 per liter in 2013 and an additional P1 per year. By 2017 products at this price will be slapped with an additional P1.50 to reach P23.50, the same tax structure of the lowertiered products.

Distilled spirits

THE 2004 revision of an alcohol and tobacco tax law followed a threetier tax structure. The amount of tax started at P8.27 per liter to P16.33 per liter of alcohol products, like beer.

It is, however, another story for the distilled spirits sector, which also experienced industrywide decline.

Unlike in fermented liquor, distilled spirits, such as “hard” liquor, like gin, whiskey, brandy and rum, are taxed on a per-proof basis, or the amount of alcohol a beverage contains.

Many brands catering to the mid-market were able to launch products with lower alcohol content than regular products and then increased their prices, further widening margins. These products are those that have added the “light” tag beside the product name, such as Emperador Light and Fundador Light.

Despite the decline experienced by players in the distilledspirits sector, Andrew Tan’s Emperador Inc. still managed to post an increase despite fizzling of sector revenues.

Yolanda, quake

UNDER the new tax scheme, distilled spirits will be slapped a P20 per specific proof per liter, plus a 15-percent ad-valorem tax for 2013 through 2015. The rates were subsequently increased this year but will have a slight decrease by next year.

Emperador brandy, however, managed to increase its cases sold to 33.1 million in 2013, from 31.2 million cases in the previous year.

As a result, its revenues rose 26 percent to P 29.86 billion for 2013, from P23.59 billion in the previous year. The company admitted it increased the prices of its products to cushion the impact of the new excise-tax hike.

The increase, however, came at the expense of its competitor, mainly of Lucio Tan’s Tanduay Distillers Inc., which distills its iconic

rum products, sold primarily to the lower-income bracket.

The distiller said that, for 2013, its market share in terms of volume dropped to an average of 25 percent from 29 percent in 2012 “largely due to the penetration of brandy in the Visayas and Mindanao or VisMin region,” the company’s stronghold.

This was exacerbated by Supertyphoon Yolanda (international code name Haiyan) and a 7.2-magnitude earthquake that devastated parts of the Visayas.

Alcohol content

LIKE Tanduay, Ginebra San Miguel Inc., also caters to the lower market segment who is composed of consumers seen to prefer products with higher alcohol content.

The volume of Ginebra’s gin sales fell by 12 percent in 2013 to just 21 million cases from the 24 million cases the company sold the previous year. Still net sales actually grew 3 percent to P14.39 billion in 2013 from the previous year’s P14.02 billion.

Ginebra’s market have already shrunk over the years as its “white” liquor is seen as being ignored for the “red” liquor—rum and brandy—of the two Tans.

The company has been struggling to make a profit, as it has been reporting net losses since 2011.

Still small

MOST of the firms that experienced a decline in consumption

have since recovered from the initial fall in consumption, starting as early as 2014. These companies have implemented measures to increase profitability.

“To mitigate the effects of higher taxes arising from the ad valorem portion of the excise tax, we sought to further improve efficiencies in our operation,” Ginebra said in a report. “We worked to extract higher yield from distillery, driving alcohol costs down 3 percent from the previous year.”

Ginebra added that “vigilance in monitoring sources of used bottles was also key, allowing us to maintain container cost efficiencies.”

The company said it saw a slight increase in volume at 22.1 million cases in 2014.

Emperador, meanwhile, has acquired scotch whiskey maker Whyte and Mackay and a number of vineyards and wine and brandy companies in Spain, including its competitor that makes Fundador.

The firm, which now claims to be the world’s largest brandy firm by volume, said it would bring all those premium brands at home as the “taste” of Filipino consumers improves.

Bernard Marquez, Ginebra’s president, however, said there may be a “premiumization” of the market, or the selling of higher-end products. Marquez, nonetheless, said he does not see the latter grabbing a bigger share of the overall consumer market.

“The mass market right now is

90 percent of the total volume of liquor in the Philippines,” Marquez said. “The Philippines is still mass and economy brands.”

According to him, the premium segment is “still very small at the moment.”

Same path

GINEBRA is seen as taking the same path of Emperador on foreign acquisitions to further grow market share.

R a mon A ng , Sa n Mig uel ’s president and COO, said the company is in talks with three foreign hard-liquor producers for possible overseas acquisitions or investments, using Ginebra as the main vehicle.

“There are brokers handling the acquisition deals for hard liquor,” Ang said, adding that San Miguel is interested in pursuing every opportunity to expand its businesses.

Ang said, there is an element of luck in foreign acquisitions.

“If you notice we have a lot of acquisitions for the last eight years. We have a success rate of 80 percent,” Ang said. “I hope we will be lucky again with these planned acquisitions.”

Ginebra said both its flagship brand Ginebra gin and its other heritage brand, Vino Kulafu, already reclaimed its lost market share, which now stood at almost 30 percent last year, according to Nielsen’s annual Retail Audit.

To be continued

Extension of rice-import quota unlikely–Pernia Continued from A1

and Budget Secretary Benjamin E. Diokno, already agreed with his view on scrapping the QR. “Piñol will be overruled by the core

economic cluster. Diokno is also of the same view, so that’s three of us. I don’t know about Trade Secretary Ramon M. Lopez. Assuming that he’s with Piñol, so that’s three against two,” Pernia said.

However, Pernia said that, before

any decision is made on the rice-import quota, the Cabinet would still need to consult President Duterte.

The Neda chief said the core economic cluster must explain to the President why it is time for the Philippines to lift the

QR on rice.

For one, Pernia said extending the QR would entail the grant of concessions to member-countries of the World Trade Organization (WTO) that would agree to Manila’s request. If the

country extends the rice-import quota again, the Philippines may be forced to bring down the tariffs of other commodities, such as pork.

“The Philippines could be forced to bring down tariffs on other commodities, such as pork and milk, as a trade off. Negotiators need to bargain. Also, rice will become more expensive and farmers will continue to be complacent due to the absence of competition,” Pernia said.

In May former Socioeconomic Planning Secretary Emmanuel F. Esguerra said amending Republic Act (RA) 8178, which retained the QR on rice, must be a priority of the next administration.

The amendment of R A 8178 is deemed as necessary, since the QR on rice will expire on June 30, 2017.

The nontariff barrier has allowed the country to limit the volume of imported rice that will enter the Philippine rice market.

The Philippines, which acceded to the WTO in 1995, is bound to allow the free trade of goods and services, including rice. However, at the time of its accession to the WTO, the Philippines, along with other nations, like Japan and South Korea, sought an exemption for rice, which is the country’s staple.

Upon its accession to the WTO, the Philippines was allowed to impose the rice QR for 10 years. When it expired in 2004, Manila was able to get the nod of the WTO to extend it until 2012. The special treatment on rice was initially granted to countries where rice is a staple—Japan, Korea and the Philippines.

However, over time and with the exemption of the Philippines, other countries were no longer given preferential treatment, allowing rice imports to flow freely through these markets, provided the exporters of these goods will pay the corresponding tariffs and duties.

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www.businessmirror.com.ph

Monday, September 12, 2016 A3

Finance officials, legislators set to discuss tax-reform package 25% L

By Jovee Marie N. dela Cruz

@joveemarie

egislators and technocrats from the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) will meet on Tuesday to try to give flesh to the proposal to recalibrate the tax structure.

House Committee on Ways and Means Chairman Rep. Dakila Carlo E. Cua of the lone District ofQuirino said the reform proposals, which include measures lowering the individual and corporate taxes, is a committee priority measure.

“There is a scheduled organizational meeting on Tuesday. We expect to receive briefings from the BIR, DOF, BOC [Bureau of Customs] and the BTr [Bureau of the Treasury]. We also expect to receive a brief on the income-tax reform proposals from the DOF,” Cua told the BusinessMirror.

“[However] I am not sure if they will already bring their [tax reform] draft bill,” he added.

Earlier, the DOF said it will submit to Congress the agency’s version of the tax-reform measures this September.

Finance Secretary Carlos G. Dominguez III said to attract foreign direct investments, the government should reduce the corporate income-tax rate from the current 30 percent to 25 percent.

He said the individual incometax rate should also be lowered to 25 percent from the 32 percent.

The Cabinet-level Development

Budget and Coordination Committee previously proposed the elimination of certain exemptions from the value-added tax (VAT) and impose higher rates on sugar products, fatty foods and petroleum products, and the rationalization of fiscal incentives instead to make up for the estimated P173.8 billion foregone revenues from the proposed lowering of individual and corporate tax rates.

The DOF said P18 billion is expected from the imposition of higher tax on sugar products and fatty foods.

The government also intends to more than double the excise tax on petroleum products from the current P4.35 per liter to P10 per liter.

This was expected to bring additional revenues of P178 billion.

For the rationalization of fiscal incentives, the government will get P33.8 billion as additional revenues.

Meanwhile, the Congressional Policy and Budget Research Department (CPBRD), in a policy brief, said the government should study carefully the proposal increasing the excise tax on petroleum. It added a change in tax structure produces a change in consumer behavior.

The proposed individual income-tax rate

The emerging proposals to adjust excise tax on petroleum products are premised on the fact that most of the rates were set as early as 1996.

“Several considerations must be taken into account in the process of reforming the tax system.

One, the country’s excise tax must be comparable with those of Asean member-states. Two, increase in the price of basic commodities as a result of higher taxes could diminish the purchasing power of consumers,” it said. While diesel is excise-tax free in the Philippines, other Asean member-states impose specific tax or ad valorem tax rates on the same product.

In particular, the peso equivalent of the excise tax on diesel in Malaysia and Thailand are P31.97 and P3.19, respectively. Prior to the enactment of the Reformed VAT or

Republic Act 9337, diesel was taxed at P1.63 per liter.

“Three, petroleum products are essential inputs to the production, processing and movement of goods.

The transport sector uses up more than two-thirds of total petroleum products, followed by commercial and industry sectors. Four, importers and refiners of oil products are subject to VAT, in addition to excise tax. Being a price-based tax, the VAT automatically responds to inflationary changes, which the specific excise tax is not able to capture” such changes, the policy body said.

As reported by the Department of Energy, 68 percent of total oil consumption goes to the transport sector, 11 percent to commercial and 9.3 percent to industry.

Another important consideration is the impact of an excise-tax increase on goods and services, the CPBRD added. “[To address this], the government must design well-targeted social protection—preferably direct subsidy—to mitigate the impact of additional taxes on poor households,” it said.

The CPBRD also said incremental revenues from excise tax on

petroleum products may be used to boost infrastructure spending, upgrade mass-transport system and improve traffic management, among others.

“On the positive side, incremental revenues from higher tax rates will help the government to address the unmet needs of the Filipino people. Also, higher fuel price could result in more prudent use of petroleum products, longer service life for roads and bridges, traffic decongestion and lower carbon emission,” it said.

For his part, Deputy Speaker Rep. Romero S. Quimbo of the Second District of Marikina City, former chairman of the House Committee on Ways and Means, said the government and Congress should carefully study the sector they want to tax.“I’m not in total agreement with excise tax. I think we need to be very careful and be very precise in targeting the sector we want to tax. Remember that this measure is being pursued as a compensating measure for revenue loses resulting from income tax lowering. That’s the only justification I can see to support it,” Quimbo said in a text message to the BusinessMirror.

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Monday, September 12, 2016 A5

Thailand’s 2016 export growth likely at 0.3%

A

top official says full-year exports may eke out marginal growth of 0.3 percent, boosted by recovering shipments to traditional markets.

According to Commerce Minister Apiradi Tantraporn, a recent joint meeting of Thai trade ministers and commercial counselors found agreement that this year’s exports are unlikely to slip into contraction as feared.

Shipments to key markets, such as China, the US, Australia and the Middle East, are expected to fare better in the second half.

Trade officials have set exportgrowth targets of 1 percent for China, 1 percent for the US, 5 percent for Australia and 2.4 percent for the Middle East.

Export value in 2015 totaled $214 billion, a third straight yearly decline.

Shipments fell by 0.3 percent in 2013 and 0.4 percent in 2014, against rises of 2.9 percent in 2012, 15.2 percent in 2011 and 26.8 percent in 2010.

$214B The value of Thailand’s exports in 2015

Imports totaled $203 billion in 2015, down 11 percent, giving Thailand a trade surplus of $11.7 billion.

For the first seven months of this year, customs-cleared exports fell by 2.3 percent to $122.18 billion.

Apiradi said exports are expected to grow by 3 percent next year, as the global economy recovers.

The Commerce Ministry forecasts export growth for key markets in 2017, such as Asean (2.5 percent); East Asia, including China (3 percent); the US (3 percent); Japan (1

Shipping containers stand at the port at Laem Chabang, Thailand. Dario Pignatelli/Bloomberg

Asia-Pacific developing nations’ wind power capacity seen to double in 10 years

J

EJU ISL AND, South Korea—Annual power capacity from wind is expected to more than double by 2025 in the Asia-Pacific region, as more developing countries, including the Philippines, tend to adopt such power resource.

Dr. Susilo Bambang Yudhoyono, president of the Assembly and chairman of the Council of Global Green Growth Institute (GGGI), noted that most of this growth would take place in Japan, Australia and India.

“The challenge is how to make renewable-energy sources spread out more evenly across regions and within regions,” he said during the Asian Regional Policy Dialogue.

The dialogue was one of the major events at the Global Green Growth Week 2016, which was organized by the GGGI from September 5 to 9 here.

Yudhoyono said the world was seeing greater production of renewables, noting there were more new plants for renewable-electricity capacity than new plants for fossil fuels.

“There are structural factors that will sustain this trend. If we keep this up, there is likelihood that by

percent); the European Union (1 percent); Hong Kong (2 percent); and the Russian Commonwealth (12.4 percent).

Apiradi said the ministry is committed next year to ramping up shipments of innovative and high-tech products while promoting services, such as Thai restaurants.

Construction, health and beauty services, digital content and animation, as well as film shoots, are other areas of next year’s focus.

More strategic partnerships with trading partners will be underlined to boost trade and investment, while online shopping will be promoted, particularly via the ministry’s online marketplace at Thaitrade.com.

Developed f ive years ago, Thaitrade.com was the country’s first official business-to-business e-marketplace. The web site features more than 200,000 products.

Late last month the Commerce Ministry launched Thaitrade.com Sook (small order OK), a business-toconsumer extension from Thaitrade. com, which is a business-to-business online platform.

The ministry also plans to push for promoting innovation-based and creativity-based start-ups, Apiradi said. TNS

2030, new capacity from renewables will be 400 percent more than fossil fuels,” he said.

Yudhoyono attributed the trend to the significant decline of the costs of renewables.

“New innovations have sprung up and they have become more accessible to more business, including in the developing countries. As a result, almost across the board, the costs of renewables have dropped— solar, hydro, wind, biomass. The most significant drop is, perhaps, solar,” he said.

Yudhoyono also highlighted the “much more” investments in renewables, which are in line with the rising trend of sustainable investing.

In 2015 investments globally for renewables reached almost $200 billion, with investments in renewable energy in developing countries were greater than those in developed countries, he added.

Moreover, Yud hoyono said more jobs are being produced by emerging renewing industries.

Globally, about 8 million people are now employed in renewableenergy sector.

“Indeed, worldwide trends suggest that we are on the right track toward greener energy,” he said.

“We are looking at a bright future in renewables. We are seeing more production, more variety, more innovation, more competitiveness, more investment, more cooperation, more market and cheaper costs,” Yudhoyono said.

In order to sustain or accelerate the shift to renewables, Yudhoyono underscored the need to adopt policies to boost renewable energy.

“Policies to promote renewable energy must come from the top leadership, because in many instances, the shift will need sensitive adjustments—bureaucratic, budgetary, economic —that will require political cover,” he said.

Yudhoyono, likewise, pushed for the public-private partnership (PPP) model, which he considered the “right business model” to attract the abundant private capital.

He added that countries also need to implement policies that can stimulate more research and development (R&D) in renewables.

Citing an estimate, Yudhoyono said R&D on oil-and-gas production spent by top 2,000 companies was around $ 15 billion, while R&D for “alternative energy” received only $1 billion. PNA

MalaysianAirintalkstooff-load A380s to Chinese operators

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alaysia Airlines Bhd. is in talks with carriers in China and other Association of Southeast Asian Nations countries about off-loading its six Airbus Group SE A380 jets because the giant double-deckers are no longer needed in the fleet, according to CEO Peter Bellew.

The company is also negotiating with Airbus to add 90 more seats to each of the 494-berth superjumbos to make them more attractive to second-hand users, while retaining the ability to operate the aircraft in a two- or three-class configuration, Bellew, who took over on July 1, said in an interview on Friday.

Malaysian Air stands to become the first A380, customer to cease flying the model, which first entered service with Singapore Airlines Ltd. in 2007. While that might be bad news for a plane that’s already struggling for sales, establishing a used superjumbo market would soften the blow for Airbus, especially should the jet secure a new Chinese operator.

Malaysian Air no longer wants the A380, as it focuses more on Asian flights and prepares to take delivery of six smaller Airbus A350s, which will replace the giant aircraft on routes, such as Kuala Lumpur-London. If direct buyers aren’t found, it’s prepared to offer the jets for lease with access to its A380 simulator, or complete with pilots and cabin

crew, Bellew said, adding that there are a number of airlines in the region “keen to dip their toe in the water.”

More A330s

The Irishman, who spent nine years working under Ryanair Holdings Plc. CEO Michael O’Leary before joining Malaysian as chief operating officer in 2015, said the carrier is looking at beefing up its fleet with three of four used Airbus A330s with engines from Pratt & Whitney, like the 18 already in operation.

Airbus’s A321 model, which former CEO Christoph Mueller had said the carrier might buy, is now less likely to join the fleet, Bellew said. Malaysian placed an order for 25 737 Max 8 jets in July for delivery from 2019 and has options, including the Max 9 model, that could perform longer flights.

Bellew said the airline is in talks about 15 new routes to China, Japan and South Korea, as he carries forward Mueller’s Asia-focused strategy. Of those, the most attractive three to six are likely to go ahead, with an announcement due as early as next month. Malaysia is a “natural destination” for tourists from China, because its own large ethnically Chinese population means they can speak their own language and eat their own food while on vacation, he said.

Improving perceptions

Passenger confidence in Malaysian Air, now fully owned by sovereign wealth fund Khazanah Nasional Bhd., collapsed two years ago, after Flight MH370 bound for Beijing vanished on March 8, 2014, and another of its planes was shot down over Ukraine four months later.

Bellew said perceptions of the company have now greatly improved both in Malaysia and China, which is again one of its strongest markets. Demand from Australia and New Zealand is less stable because of overcapacity, he said.

Malaysian Air said earlier cost cuts initiated

by Mueller should help deliver a reduced loss this year 15 percent to 20 percent better than previously anticipated, and that it remains on track to post a profit in 2018. First-half figures were buoyed by reduced procurement costs and the legacy of 6,000 job cuts and a trimmed route network in the wake of the crashes.

Bellew said the airline needs to do more to boost revenue. Malaysian’s pricing structure will be revamped with fewer bargain-basement tickets available and less of a range between the highest and lowest prices, and the company has begun a major marketing offensive that consciously makes greater play of its brand, cabin crew and standards of in-flight service.

“There’s really an atmosphere of positivity around the airline again,” he said. “We want to show the world that we’re back in business.”

Bloomberg News

Thais jilting iPhone holiday snaps spur surge in Big Camera T hailand’s Big Camera Corp.

Pcl. is predicting a record profit in 2016, as a growing number of holidaymakers buy new models offering higher quality pictures than smartphones to capture the perfect vacation snap.

Earnings at the country’s biggest camera-store chain will grow at a faster pace in the second half, compared with January through June, taking annual net income to the highest in the company’s history, Managing Director Thanasit Thienkanjanawong said in an interview.

“Younger generations consider a newer camera as a necessary gadget,” Thanasit, 34, said. “They’re willing to pay more for better cameras to capture photos of their memorable trips with better quality than smartphones.”

The revival in demand for standalone cameras is a break from the past few years, a period when consumers turned to Apple Inc. and Samsung Electronics Co. smartphones packing ever more megapixels to take

Barry Lewis/Corbis via Getty Images/Bloomberg

pictures. The incipient shift has spurred a surge of 252 percent in Big Camera’s shares in the past year, the second-best performance in Thailand’s 574-member SET Index. The stock fell 3.9 percent to 3.96 baht as of 10:42 a.m. in Bangkok, poised for a third day of losses and the lowest close since July 12.

Camera sales have rebounded since 2015 after a years-long decline caused by increased smartphone ownership, Thanasit said in the interview in Bangkok, where the company is based.

Net income in the first six months was 419.9 million baht ($12 million), compared with a loss of 5.7 million baht in the same period a year earlier.

Big Camera has about 225 stores in Southeast Asia’s second-largest economy, spread across shopping malls and hypermarkets. Thanasit said his target is to open at least 10 outlets every year. The stock trades at 14.3 times estimated 12-month earnings, compared with 15 for the past five years and 25.9 for the SET

Commerce Index of retailers, which includes Big Camera, data compiled

by Bloomberg show.

Camera sales rebounded in late 2015 and are continuing to grow strongly, despite expectations that the spurt would be short-lived, said Sunthorn Thongthip, an analyst at Krungsri Securities Pcl. who has a buy rating on the shares. Risks include the possibility of consumers delaying purchases of new models and increased competition as other companies try to tap the revival, he said.

For now, Big Camera is benefiting as more Thais travel overseas for holidays, after carriers, including Thai Airways International Pcl., cut fares. The number going abroad in the first seven months of 2016 jumped 16 percent from a year earlier to 6.12 million, Immigration Bureau data show.

Thanasit said Big Camera is considering regional expansion, too, and that the first overseas store will probably open in Vietnam to capitalize on the nation’s large population. Bloomberg News

A6

The World BusinessMirror

Monday, September 12, 2016 • Editor: Lyn Resurreccion

China graft probe snares Tianjin mayor, an ex-Xi pal

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he highest-ranking Chinese Communist Party official investigated in more than a year is a former subordinate of President Xi Jinping’s.

Huang Xingguo—mayor and acting party chief of northern port city Tianjin—is being probed for “serious disciplinary violations,” China’s top antigraft agency said on Saturday, using an official euphemism for graft.

The Central Commission for Discipline Inspection statement provided no details about the nature of the allegations.

H u a n g ’s u n u s u a l l y l o n g 20-month stint as interim Tianjin leader took in the massive warehouse fire and chemical explosions in August last year that killed at least 165 people and caused almost $1 billion in economic losses.

He retained his posts, even as scores of local government officials and port executives were punished for allowing the large

165 The number of people killed in the massive warehouse fire and chemical explosions in Tianjin in August last year, which also caused almost $1 billion in economic losses

stockpile of hazardous chemicals so close to a residential area, in violation of safety rules.

Before being sent to Tianjin in

2003, Huang, 61, spent more than three decades in the eastern province of Zhejiang, a stepping stone in Xi’s own rise and a lasting base of the president’s power.

Huang led the key port city of Ningbo, overlapping with part of Xi’s five-year stint in the Zhejiang leadership, where he was firstly governor and then party secretary.

“Huang didn’t lose his title in the aftermath of the Tianjin explosion, which showed there was some sort of ‘protective umbrella’ covering him,” said Zhang Lifan, a Beijing-based historian and political commentator.

“It’s hard to say at this moment whether his case was too severe to paper over, or whether X i wanted to use it to show that he’s ready to punish his own people if justice demands it.”

Party officials have usually been detained when disciplinary investigations are announced and Huang couldn’t be reached for comment.

Huang is the highest-ranking former Xi subordinate to fall from grace since the president took power in 2012 and launched an unprecedented crackdown on official corruption. The investi-

gation adds intrigue to a wave of provincial-level promotions ahead of next month’s planned Cent ra l Comm it tee meet ing , which is ex pected to lay the groundwork for a twice-a-decade leadership reshuffle in 2017.

Had Huang formally assumed the top job in Tianjin—China’s fourth-largest city—he would’ve been expected to secure a seat on the party’s elite 25-member Politburo. Instead, he become the 10th Central Committee member investigated under Xi and the most senior official probed since ex-Hebei provincial party secretary Zhou Benshun was detained in July 2015.

Huang last appeared in public on Friday, when he visited a school and met with a delegation from Taiwan’s Kuomintang opposition, according to the official Tianjin Daily.

The city now lacks a party secretary, mayor and public security chief, with the last occupant of the latter position detained in July 2014. So far, Xi’s antigraft drive has ensnared three top Tianjin officials, including a deputy mayor placed under investigation last month. Bloomberg News

15 yrs after, 9/11 responders might be sick and not know it

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HICAGO—Making the decision to help 15 years ago might end Garrett Goodwin’s life early. Goodwin, 39, was one of tens of thousands of people at the World Trade Center (WTC) right after the September 11, 2001, attacks. A trained medic, he traveled from Tampa, Florida, to New York to volunteer.

Now, his lungs are failing him, and doctors say that will lead to his death.

Goodwin is one of many volunteers who spent long hours toiling in the World Trade Center ruins, where toxic fumes made many sick or dead.

Most of the September 11 responders were from the New York area. But about 9,500 came from elsewhere across the country, according to the National Institute for Occupational Safety and Health (NIOSH).

“People really did come from all over,” said Dr. Michael Crane, medical director of the World Trade Center (WTC) Health Program at Manhattan’s Mount Sinai hospital. Some of them might not be aware that cancer or a cough, diagnosed by a doctor in Ohio or California, could be connected to that work 15 years ago.

Crane estimates that 90,000 people helped in the area after the attacks. Right now, about 65,000 responders are in the WTC Health Program, run by NIOSH to track and treat them.

“There’s still a good chunk of folks out there who responded to the event and most likely have not been seen by anybody yet,” Crane said. Federal officials hope to reach them.

A continuing public awareness campaign includes a May video with comedian Jon Stewart and a nationwide provider network to connect responders to help wherever they might be.

Their message? Sign up for the program, which provides medical care and monitoring through the James Zadroga 9/11 Health and Compensation Act, named for a detective who became terminally ill after working at the WTC site.

In December President Barack Obama signed a law extending funding through 2090.

More than 5,000 people in the program have September 11-related cancer, Crane said. About

In this September 11, 2015, photo, Suzi Balco of Saint Joseph, Michigan, places a flag at the name of Todd Beamer at the Wall of Names after a Service of Remembrance at the Flight 93 National Memorial in Shanksville, Pennsylvania. AP/Gene J. Puskar

40 percent have a respiratory or gastrointestinal problem. Studies are regularly released monitoring September 11-related health issues.

Goodwin remembers frantically trying to find anyone alive in the smoldering ruins.

“You charge hard, and you don’t quit,” he said. “You try to cover as many voids and spaces and move as much debris and get as deep as you can to try and save people.”

But now, years later, his lungs aren’t working properly.

He said doctors explained to him in September that because of heart and lung issues, they estimate, he has one to seven years to live.

“I’m not even 40 yet,” he said.

John Feal, founder of the Fe-

alGood Foundation, which advocates for responders like himself, said he knows many affected in various states, but that many with symptoms don’t even realize there’s a link.

“Take into effect people from Illinois or other parts of the country that went to ground zero in the early weeks or months and went home and got sick,” he said. “Nobody knew why they got sick.”

About 1,500 registry members live in Florida, where New York police and firefighters often retire.

Doctors have connected illnesses, like asthma and debilitating cancers, to the WTC catastrophe.

The most common ailments include respiration issues and cancers, such as lymphoma and thyroid cancer.

Arthur Noonan got cancer.

He and fellow Chicago firefighters flew to New York days after the attacks. In Manhattan they joined the line of workers clearing dust and debris on “the pile.”

He remembers the smell of fuel.

And the dust.

“It was all pulverized,” he said.

“It was like a powder you were digging through, and it would clog the face pieces up almost immediately.”

He has since been diagnosed with leukemia. In remission, he’s thankful for extra years others did not get and the time to enjoy his eight grandchildren and his children’s weddings.

“It’s like living with a hand grenade under your belt,” he said.

Noonan, like many responders, does not want attention for his illness. He and Goodwin spoke about their experiences in hopes it would prompt other responders to see a doctor.

Even among those who are healthy, cancer is a constant fear.

Menta l issues a re a lso a n enormous, enduring obstacle.

Some who were there still have nightmares or anxiety near a city skyline. Terrorism headlines also are triggers.

According to registry statistics, one in five responders suffer from post-traumatic stress disorder.

“These guys were really, really exposed to some horrifying sights,” Crane said, adding that depression rates are similar to those of young war veterans. “It left an impact.”

Doctors continue to prepare for what lies ahead.

Part of that means trying to make it easier to monitor farflung patients. Crane is thinking of responders who retire elsewhere; video checkups would be less burdensome than a trip to New York for care, for instance.

And some illnesses may occur years from now.

For example, dust contained asbestos, which can create lung problems and, in some cases, cancer as many as 40 years later, Crane said.

Hence, the importance of monitoring as many people as possible.

Some research will come too late. More than 50 New York police officers have died from 9/11- re l ated i l l nesses, more than twice the number (23) who died on September 11. TNS

www.businessmirror.com.ph

Trump tries to capitalize as Clinton regrets ‘deplorables’ comment

H

illary Clinton said on Saturday she regrets describing half of Donald Trump’s supporters as a “ basket of deplorables” in a speech at a fund-raiser, as Trump’s campaign tried to capitalize on what it considered a major gaffe by the Democrat.

Trump’s running mate, Indiana Gov. Mike Pence, lambasted Clinton in a midday speech at a gathering of conservative voters, and campaign officials instructed surrogates to highlight Clinton’s remarks in their public appearances. “ H i l l a r y C l i n t o n ’s l o w opinion of t he people who support this campaign shou ld be denou nced in t he st rongest possible ter ms,” Pence said at the annual Va lues Voter Su mm it in Washing ton. “ T hey ’re ha rdworki n g A m e r i c a n s . Fa r m e r s .

Coa l m iners. Teac hers. Vetera ns. Members of ou r l awenforcement commu nit y.

“Hillary, they are not a basket of anything. They are Americans and they deserve your respect,” he said, drawing cheers from the crowd.

Pence’s response was the most forceful effort by Trump’s campaign to seize on Clinton’s remark and try to ensure maximum damage was inflicted on her campaign. Her lead in national and battleground state polls has narrowed in recent weeks, giving fresh hope to Trump’s supporters.

Trump campaign officials, however, decided not to change plans to keep the Republican’s s u r ro g at e s of f of Su nd ay morning news talk shows out of respect for the 15th anniversary of the 9/11 attacks.

T he campaign is confident that controversy over Clinton’s remark won’t dissipate, the officials said, requesting anonymity to discuss internal campaign deliberations.

Clinton told an audience of gay-rights supporters at a fundraiser in New York City Friday night: “You know, to just be grossly generalistic, you could put half of Trump’s supporters into what I call the basket of deplorables. Right? The racist, sexist, homophobic, xenophobic, Islamaphobic—you name it.”

The remark drew laughs from her audience, and she later said that other Trump supporters are “people who feel that the government has let them down, the economy has let them down, nobody cares about them, nobody worries about what happens to their lives and their futures and they’re just desperate for change.”

But C l i nton’s c a mpa ig n found itself explaining the remark after her speech and even some of Trump’s Republican critics said it could cost Clinton votes among independent voters still trying to make up their minds, in part by undercutting her message that she is a unifying leader, while Trump is divisive. On Saturday she issued a statement that began with an expression of regret, but ended with an excoriation of proposals, remarks and actions

by Trump that Clinton said indicated a campaign built “largely on prejudice and paranoia.”

“Last night I was ‘grossly generalistic,’ and that’s never a good idea. I regret saying ‘ half ’—that was wrong,” Clinton said, before turning to a criticism of Trump. W hat is “ deplorable,” she said, is that Trump “ hired a major advocate for t he so - ca l led alt-right movement to run his campaign and that Dav id Du ke and ot her white supremacists see him as a champion of their values.

She was referring to Trump’s campaign chairman, Steve Bannon, who is also the executive chairman of Breitbart News, a conservative web site. Jim Manley, Democratic strategist, said it was not unreasonable for Clinton to highlight bigotry among some Trump supporters, though he said she was also right to walk back her remarks.

“I don’t know what the exact percentage is, but there’s no doubt Donald Trump is drawing out the worst impulses of his supporters, ranging from r ac i s m to t he out r a ge ou s chants of ‘lock her up,’” Manley said. “There’s an awful lot of hate involved when it comes to his political rallies.”

Tr ump used his Tw itter megaphone to rebuke Clinton; his campaig n manager Kel lyanne Conway ca l led for C l i nt o n t o a p ol o g i z e ; a nd Pe nce d re w comp a r i sons w ith President Barack Obama’s 2008 remarks about some r u ra l A mer ic a n voters. Obama said at the time that “ it’s not surprising then t h at t he y get bit ter, t he y c l i n g t o g u n s or re l i g ion or antipathy to people who aren’t like them or anti-immigrant sentiment or antitrade sentiment as a way to ex plain their fr ustrations.”

The remark drew fierce criticism from Republicans.

Trump said Clinton’s statement on her remarks compounded the error.

“Isn’t it disgraceful that Hil lar y Clinton ma kes the worst mistake of the political season and, instead of owning up to this grotesque attack on American voters, she tries to turn it around with a pathetic rehash of the words and insults used in her failing campaign?” Trump said in an e-mail from Conway.

Democratic strategists said the damage to Clinton’s campaign from her remark would depend on the Republican and media response in coming days.

When Republican Mitt Romney infamously declared at a secretly filmed fundraiser in 2012 that he wasn’t concerned about “47 percent” of voters he considered to be dependent on government services who wouldn’t vote for him, his remark was relentlessly highlighted by Democrats as an insult to working-class voters.

When the Trump campaign sent morning talking points to its surrogates at 7 a.m. on Saturday, the document said nothing about Clinton’s “deplorables” remark, other than to repeat the statement that a spokesman had released shortly after midnight. But in a noon conference call, Trump aides told the surrogates to focus on three issues: Clinton’s “deplorables” comment, Trump’s friendliness toward Russian President V ladimir Putin and the latest polling, according to two people who were on the call and asked not to be identified discussing it.

Friday night was a rare night when C l i nton’s com ment s overshadowed Trump’s own.

In Florida he had suggested Clinton was so above the law she could shoot someone and get away with it, and said if Iranian sailors made inappropriate gestures at US ships during his presidency, they’d be “shot out of the water.”

Republicans saw Clinton’s comment as a chance to try to put the usually cautious Democratic nominee on the defensive, with just two months left in the campaign and some key swing state polls tightening.

Bloomberg News

The World BusinessMirror

www.businessmirror.com.ph

Monday, September 12, 2016

A7

France leads call for spending in south to aid EU post-Brexit

European Union retail consumers Bloomberg News

T

he European Union’s (EU) Mediterranean countries ganged up to ask for less austerity and more money for southern economies that suffer the most from the influx of immigrants, high unemployment and brain drain.

$353B

The current investment plan for European Union’s southern nations, which they want doubled

Greek Prime Minister Alexis Tsipras hosted fellow leaders from nations that are the worst-hit by a wave of refugees from Syria and Northern Africa.

France’s François Hollande, Italy’s Matteo Renzi, Portugal’s Antonio Costa, Malta’s Joseph Muscat, Nicos Anastasiades of Cyprus.

Spain’s Mariano Rajoy, who’s had a prickly relationship with Tsipras, sent a deputy minister in his place.

The fight is on for what shape the European Union will take in light of Brexit, with economies great and small jockeying for a say.

A f t e r G e r m a n y ’s A n g e l a Merkel made a diplomatic push to solicit ideas last month, the seven southern nations are trying to increase their leverage at next week ’s key summit in Bratislava that will chart a road map for the 27-nation alliance minus its second-biggest economy.

Their common demand is for a doubling of an investment plan that at the moment stands at €315 billion ($353 billion) over a space of three years and “more ambitious initiatives” for jobs for young people. They also want an external border force set up by the end of the year, and more intelligence sharing on terrorism.

Southern flank

“Southern countries have had several difficulties to tackle, notably on migration and refugees and so we have decided that we w il l br ing our ow n thoughts and conclusions to Bratislava on this,” Hollande told a joint news conference after the summit in the Zappeion Hall, where the ceremony marking Greece’s entry in the European Community was held in 1979.

In an allusion to the EU’s tight budgetary corset, Renzi stressed that “we are in a phase in which Europe cannot keep being just rules, technicalities, finance and austerity.”

The leaders said they would meet again Portugal, with a view to further sharpening a shared vision on migration, security and economic growth. They also showed an eagerness to move on from the UK vote, urging Britain to trigger exit talks “as soon as possible.”

Merkel’s tour

As head of Europe’s biggest economy, it’s been Merkel who has been setting the tone and the agenda for the first summit without the UK in more than four decades. She embarked on a whirlwind tour of the bloc’s capitals to canvass opinion, from the east come calls for tighter barriers against migration and from the south an appeal for laxer budget rules.

For starters, her government has signaled that the UK’s negotiations to leave will be “very difficult” and that Prime Minister Theresa May won’t be allowed to “cherry pick.”

Brexit has triggered a realization that the EU needs to refocus on policies of greater relevance to its 500 million inhabitants.

Among the plans up for discussion are closer military cooperation, sharing terrorism intelligence and the introduction of systematic checks and electronic registration of people entering and leaving at airports and other border points. Bloomberg News

Tusweca Mendoza, 10, of Arlington, Virginia, originally from Pine Ridge, San Diego, holds up a sign outside US District Court in Washington on September 6 as members of the Standing Rock Sioux Tribe have asked a federal judge to temporarily stop work on parts of the Dakota Access Pipeline to prevent the destruction of sacred and culturally significant sites near Lake Oahe. AP/Pablo Martinez Monsivais

Federal action on oil-pipeline project unprecedented–expert

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ISMARCK, North Dakota—The Standing Rock Sioux’s effort to block a four-state oil pipeline got a lifeline when the federal government temporarily stopped the project, a move some say likely may forever change the way all energy infrastructure projects are reviewed in the future.

Just minutes after US District Judge James Boasberg denied the Standing Rock Sioux tribe’s attempt to halt the construction of the Dakota Access oil pipeline that skirts the reservation in southern North Dakota, three federal agencies appealed to the pipeline company to “voluntarily pause” work on a segment that tribal officials say holds sacred sites and artifacts.

Tribal officials challenged the Army Corps of Engineers’ decision to grant permits for Dallasbased Energy Transfer Partners’ $3.8-billion pipeline that is intended to carry oil from North Dakota to Illinois.

Friday’s ruling by Boasberg, who was appointed by President Barack Obama, came amid growing protests over the pipeline, which would cross the Missouri River less than a mile upstream of the reservation.

The statement by the Departments of Justice, Army and Interior said it would “reconsider

$1.4B

The amount the company would lose in the first year if the oil-pipeline project is stopped

any of its previous decisions” on land that borders or is under Lake Oahe, one of six reservoirs on the Missouri River and the drinking water source for the tribal members on the Standing Rock Sioux Reservation.

The statement from the federal departments also said the case “highlighted the need for a serious discussion” about nationwide reforms “with respect to considering tribes’ views on these types of infrastructure projects.”

Troy Eid, a former US attorney

in Colorado who now specializes in Indian law, said the action was unprecedented and a “significant setback” for the pipeline’s builders.

“Everywhere in Indian Country, people are talking about this,” said Eid, who spoke by phone on Saturday while on horseback during a parade at the Navajo Nation Fair in Window Rock, Arizona.

He said the lack of tribal consultation on the Dakota Access pipeline “is a textbook example of how not to do a project.”

Historically, tribes only have been consulted on energy infrastructure projects, with the federal government making the actual decisions, said Eid, a Republican.

The Obama administration’s action on Friday likely changed that, he said.

“Tribes want to be able to influence the outcome in a substantive way,” Eid said.

Industry consultant Brigham McCown, a former acting administrator for the federal Pipeline and Hazardous Materials Safety Administration, said the Obama administration’s involvement has “changed the lay of the land forever” for infrastructure projects.

“This could bog down or delay every single infrastructure project moving forward,” he said. “I don’t think they even realize the can of worms they’ve opened.”

As a regulator during the George W. Bush administration, McCown said he oversaw safety for 1 million daily shipments of hazardous goods throughout the United States

by air, rail, sea, land and pipeline.

“We were very apolitical in the decisions we made,” he said.

“Things are very different now, whether from the right wing or left wing, politics of all kinds are being injected into this.”

The company plans to have the pipeline completed this year. In court papers, it said stopping the project would cost it $1.4 billion the first year, mostly due to lost revenue in hauling crude.

The federal government’s action in trumping the federal judge’s ruling, however temporary, was a major victory for Native Americans in a “cultural and historical context,” said Monte Mills, an assistant professor and codirector of the Margery Hunter Brown Indian Law Clinic at the University of Montana in Missoula.

“The way Indian Country came together to support Standing Rock has really been powerful,” he said.

“There is no question it will be much more difficult and costly for these projects to move forward in the future,” said Brian Jorde, an Omaha, Nebraska, lawyer who is working with opponents of the Keystone XL oil pipeline designed to move crude from Canada to the Gulf Coast.

“The reality is [Dakota Access] likely will move forward—not that I believe it should move forward— but all the pieces are in place for it to go forward,” Jorde said. “There is too much money involved and too much influence in Washington to just give up.” AP

Miami business owners anxious for Zika warnings to end M

IAMI—Business owners are anxious for federal health officials to lift a travel advisory warning pregnant women and their partners to avoid parts of Miami and South Beach that have been identified as zones of active transmission of the Zika virus.

The US Centers for Disease Control and Prevention has said it could lift its advisory for a 1-square-mile zone encompassing Miami’s Wynwood neighborhood on September 19 if no new locally contracted cases are confirmed, The Miami Herald reports.

Business owners and analysts say if Zika infections persist in Miami and a 1.5-square-mile portion of Miami Beach, visitors who have been waiting to make reservations in Miami-Dade County may turn elsewhere. The Wynwood Business Improvement District has asked the city of Miami for money to compensate for Zika’s impact.

Cancellations since the first local Zika infection was confirmed in Wynwood in late July have forced Felipe Correa to lay off one employee from his company running tours in Miami, Key West and the Everglades.

“My Miami tour basically collapsed...all of my pre-arrival reservations canceled,” Correa said.

Connecticut resident Coco Lewis decided to move her annual birthday party from South Beach to Las Vegas next month because of Zika.

“We don’t want to chance it,” said Lewis, 23. “It’s just too risky.”

South Florida’s luxury realestate market, already slumping because of weak foreign currencies, is reporting cancellations by potential buyers from New York and Europe. “Zika is a deal-breaker for clients who plan to have

children,” said Senada Adzem of brokerage Douglas Elliman. The European Centre for Disease Control and Prevention has classified all Miami-Dade County as an area of “widespread transmission.”

The United Kingdom has advised pregnant women to avoid t he cou nt y for nonessent i a l travel and consider postponing nonessential travel in the rest of Florida.

In August leisure airfare prices fell 17 percent year-over-year at Miami International Airport and Fort Lauderdale-Hollywood International Airport, according

to an analysis by Harrell Associates. Hotel bookings in greater downtown Miami fell by nearly 3 percent in the first three weeks of August compared to last year, according to data collected by analytics firm Smith Travel Report.

It’s not clear how much of that decline is attributable to Zika.

Zika infection can cause severe brain-related birth defects, including a dangerously small head, if women are infected during pregnancy. The mosquito-borne virus also can be sexually transmitted.

Of Florida’s 56 nontravel-related

Zika cases, 11 have been traced to Miami Beach and 29 to Wynwood.

The rest are being considered isolated cases and have not prompted authorities to issue warnings of local transmission.

Miami-Dade County officials expect to spend an extra $10 million fighting Zika through the summer. The city of Miami approved $247,000 for special events meant to draw customers back to Wynwood. The Florida Department of Economic Opportunity is surveying local businesses about economic damage related to Zika. AP

The W

A8 Monday, September 12, 2016 • Editor: Lyn Resurreccion

Syria: 45 killed after US-Russia pact

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EIRUT—A day of intense air strikes on Saturday on and around the northern city of Aleppo killed at least 45 people, according to opposition activists.

The Aleppo Media Center, an activist collective, said 45 people were killed on Saturday, just hours after the new US-Russian agreement was reached to try and end the violence in Syria. The Britain-based Syrian Observatory for Human Rights said 30 people were killed in Aleppo province and another 39 were killed by air strikes in neighboring Idlib province.

Contrasting casualty figures are common in the aftermath of large attacks in Syria. The United States and Russia announced a deal on Saturday that would establish a nationwide cease-fire starting on Monday, followed a week later by a new military partnership targeting Islamic State (IS) and al-Qaeda militants, as well as the establishment of new limits on the forces of Syrian President Bashar al-Assad forces.

Previous Syrian cease-fires or limited truces have also been preceded by spikes in violence as both government and rebel forces seek to consolidate positions or gain

2,200 The estimated number of people killed in Aleppo, the center of violence in Syria, since July

new ground in the final remaining hours of warfare.

State news agency Sana said the Syrian government accepts the agreement, adding that hostilities will stop in the northern city of Aleppo, the country’s largest, for “humanitarian reasons.”

It did not say when the violence will stop, adding that the US-Russia agreement “was reached with the knowledge and approval of the Syrian government.”

Saturday’s violence shows that it might be difficult to implement the US-Russia agreement, as both

countries enjoy limited influence on the government and insurgent groups to cease the bombardment.

A cease-fire reached by the two world powers earlier this year and put into effect in late February failed shortly afterward and was followed by months of violence that killed thousands.

Russia is a main backer of Assad’s government, while the US has been supporting rebel groups trying to remove him from power. Syria’s conflict, now in its sixth year, has continued despite several rounds of peace talks and international attempts to try end the violence. At least a quarter million people have been killed and half the country’s prewar population displaced.

Saturday’s air raids were mostly in the northern provinces of Idlib and Aleppo. Aleppo has been the center of violence in Syria in recent months, where some 2,200 people, including some 700 civilians, have been killed since July, according to the Observatory, which tracks violence in Syria through a network of activists on the ground.

The Observatory and the Local Coordination Committees (LCC) also reported an air strike in the Damascus suburb of Douma where the dead included four children.

The Observatory said the deadliest air strike occurred in the northwestern city of Idlib and struck near the main market. The LCC said the

airs trikes were carried out by Russian warplanes, adding that they left a number of civilians dead or wounded.

An amateur video posted online showed wounded people being rushed away as debris filled a street and fire blazed in some shops and apartment buildings. The video appeared genuine and corresponded to other Associated Press reporting of the events.

St ate T V s a id i n s u r ge nt s shelled government-held neighborhoods in Aleppo, killing one and wounding others. The channel also reported shelling by the Islamic State group on government-held neighborhood in the eastern city of Deir el-Zour, saying it killed nine and wounded 26.

The agreement comes at a time when Assad is in a much stronger position than where he was a few months ago. Rebel-held parts of Aleppo are under full siege and two major suburbs of Damascus have been taken out of rebel control after an agreement was reached with the government.

A senior member of the main Syrian opposition umbrella group said on Saturday it hopes a new US-Russian agreement will be enforced in order to ease the suffering of civilians while an official with al-Qaeda’s affiliate in Syria vowed to retaliate throughout the world if the Americans and Russians target them. AP

Business Australia to extend terrorism controls to 14-yr-old suspects

A

ustralia a nnou nced plans to strengthen antiterrorism laws and extend monitoring by authorities to suspects as young as 14 on Sunday, after the country’s fourth terrorism incident in two years.

Proposed legislation would enable courts to impose postsentence detention for high-risk terrorist offenders, Attorney General George Brandis told reporters in Brisbane.

The government also believed the scope of control orders, which can require suspects to submit to a curfew and restrict their contacts with others, needed to be widened, he said.

“Sadly, we have seen terrorism events perpetrated in Australia by people as young as 14 years old,” Brandis said. “We will be extending the lower-age threshold of control orders to 14 and making other important reforms.”

A gunman who pledged allegiance to Islamic State died along with two hostages after taking a group of staff and customers captive in a central Sydney café in December 2014. Australian authorities have disrupted about 10 planned terrorism incidents since September of that year, Brandis said.

The police said a 59-year-old man suffered serious injuries in a stabbing on Saturday in suburban Sydney carried out by a suspect alleged to have been inspired by

the terrorist group. The police charged a 22-year-old man with committing a terrorist act and attempted murder.

The victim was stabbed several times while walking through a reserve in Minto, 50 kilometers southwest of central Sydney, the Australian Federal Police and New South Wales Police said in a statement on Sunday. He remained in the hospital in serious condition, although he was no longer critical, New South Wales Deputy Police Commissioner Catherine Burn told reporters.

“We can clearly say that this is inspired by Isis [Islamic State in Iraq and Syria]—we know that,” Burn said, referring to the terror group.

T he a l le ge d at t ac k e r w a s known to police, although not regarded as having been connected to known terrorist groups or known extremists, she said.

An attempt was also made to stab a police officer during efforts to make an arrest in nearby Macquarie Fields, the police said in the statement. A counterterrorism team is investigating the incident alongside local police officers, and a large knife had been seized for forensic examination.

The alleged attacker was scheduled to appear later on Sunday before Parramatta Bail Court, the police said. The proposed legislative changes aren’t linked to Saturday’s attack, Brandis said. Bloomberg News

World

sMirror

www.businessmirror.com.ph | Monday, September 12, 2016

Muslim pilgrims begin hajj W M

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Reagan’s would-be assassin leaves DC mental hospital

ECCA, Saudi Arabia—Close to 2 million people from around the world began performing the first rites of the Islamic hajj pilgrimage on Saturday, which calls for entering into a state of physical and spiritual purity and circling the cube-shaped Kaaba with their palms facing upward in supplication and prayer.

Notably absent this year are Iranian pilgrims. Last year some 64,000 Iranians took part in the hajj, but disputes with the Saudi government prompted Tehran to bar its citizens from taking part this year.

Saudi Arabia has blamed Iranian officials for the decision and suggests it was politically motivated to publicly pressure the kingdom. Iran says Saudi “ incompetence” caused a crush and stampede during last year’s hajj that killed more than 460 of its citizens.

On Fr id ay t housa nds of Iran i a n s m a rc he d t h rou g h t he

2 million

The estimated number of Islamic hajj pilgrims in Mecca, Saudi Arabia

st reets of Tehra n a nd ot her Ira ni a n c it ies to protest Saud i A r a bi a , c h a nt i ng pr ayers aga inst t he k ingdom’s Su nni r u lers a f ter m idd ay prayers.

The hajj is one of the world’s largest pilgrimages. It draws the faithful to the holy city of Mecca and areas around it for five intense

Muslim pilgrims prepare themselves for Friday prayers in front of the Kaaba, Islam’s holiest shrine, at the Grand Mosque in the Muslim holy city of Mecca, Saudi Arabia, on September 9. Muslim pilgrims have begun arriving at the holiest sites in Islam ahead of the annual hajj pilgrimage in Saudi Arabia. AP/Nariman El-Mofty

days of rituals and prayers aimed at erasing past sins and drawing Muslims closer to God. The pilgrimage is required of all Muslims to perform once in their lifetime.

To begin the hajj, hundreds of thousands of pilgrims circle the Kaaba in Mecca’s Grand Mosque.

In a sign of humility and equality before God, the pilgrims shed symbols of materialism, entering a state of ihram. Women forgo makeup and perfume and wear loose-fitting clothing and a head

covering, while men dress in seamless, white terry cloth garments.

Since arriving in Mecca over the past several weeks, hundreds of thousands have chanted, “Labayk Allahuma Labayk,” or “Here I am, God, answering your call.

Here I am.”

W hi le fol low ing a route the Prophet Muhammad once walked, the rites of hajj are believed to ultimately trace the footsteps of the prophets Ibrahim and Ismail, or Abraham and

Ishmael as they are named in the Bible. The Interior Ministry says more than 1.3 million people from 160 different countries have arrived to the kingdom to perform the hajj this year.

Most pilgrims will spend the evening outside Mecca in a valley called Mina that houses more than 160,000 tents. They will head to an area called Arafat on Sunday for the pinnacle of the pilgrimage, an emotional day of repentance and supplication.

For the first time in more than three decades, Saudi Arabia’s top cleric will not be delivering this year’s prestigious hajj sermon on Sunday.

Al-Riyadh newspaper reported on Saturday that Grand Mufti Sheikh Abdulaziz Al Sheikh, who has delivered the sermon since 1981, will be replaced by Sheikh Saleh bin Hamid.

Hamid previously served as chairman of the top consultative Shura Council and was appointed to the Supreme Judicial Council before serving as a royal adviser.

The newspaper did not give a reason for the change.

The mufti sparked controversy this week when, in response to the Iranian criticisms, he was quoted as saying that Iran’s Shiite leaders “are not Muslims.” AP

ASHINGTON— The man who tried to assassinate President Ronald Reagan has been released from a Washington mental hospital for good, more than 35 years after the shooting. A spokesman for the District of Columbia’s Department of Mental Health said early on Saturday all patients scheduled to leave Saint Elizabeths Hospital had been discharged. John Hinckley Jr. was among those scheduled for discharge.

An Associated Press reporter saw a hired car pull into the driveway of the Hinckley home about 2:30 p.m. Officers from the Kingsmill Police Department chased reporters away.

A federal judge ruled in late July that the 61-year-old Hinckley is not a danger to himself or the public and can live full-time at his mother’s home in Williamsburg. Hinckley had already been visiting Williamsburg for long stretches at a time and preparing for the full-time transition.

He’ll have to follow a lot of rules while in Williamsburg, but his longtime lawyer Barry Levine says he thinks Hinckley will be a “citizen about whom we can all be proud.” AP

Tourism&Entertainment A10

BusinessMirror

Monday, September 12, 2016

Editor: Carla Mortel-Baricaua

Leading the way in earth-friendly lodging Story by Bernard Supetran | Photos by El Nido Resorts

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oday’s breed of quality travelers has become so environmentally conscious that they want to make the least impact of their tourist activities in the destinations they are visiting.

They look for resorts and hotels which utilize earth-friendly energy and water systems, and has made caring for Mother Earth a part of their management philosophy and socialresponsibility programs. They also prefer restaurants which offer the “farm-to-table” dining experience, serve organically grown food and adopt zero-waste practices.

An emerging philosophy in the tourism industry is the ecolodge, which is described by the International Ecotourism Society as the design, development and operations of future lodges that uphold the social and ecological integrity of their given environments.

This type of tourist facility allows for sustained benefits from ecotourism without causing damage to the environment and the very natural resources on which they depend.

This movement has reached Philippine shores and this green building technology will be the focus of the Ecolodge Design and Planning Workshop featuring multiawarded eco-architect and natural landscape artist Hitesh Mehta, acknowledged as the world’s ecolodge guru.

Set from September 19 to 23 at the International School of Sustainable Tourism (ISST) in Subic Bay Freeport Zone, the training course and workshop will provide participants with eco-friendly siteplanning techniques to enable them implement ecolodge guidelines and certification standards.

Metah will also lecture on the top-

ics Ecotourism and Ecolodges, Site Analysis and Planning Ecoutourism Facilities, Architectural Aspects of Ecotourism Facilities, and Creative Design, Technology and Construction Trends in Ecolodges.

Recognized by the United Nations as an exponent of ecolodge, he has done projects in more than 55 countries on housing, community centers, national parks and nature reserve, tourism accommodations, malls, and religious and cultural centers.

A collaboration with the United Architects of the Philippines and the Philippine Association of Landscape Architects, the course is designed for landscape architects, land developers, professors and students on design and architecture, eco-tour operators, government policy-makers and companies who wish to invest in eco-friendly tourism structures.

Presentations include Impact of Tourism on Indigenous Flora and Fauna in the Philippines by Philippine Native Plants Conservation Society president Anthony Arbias, and Sustainability Initiatives in Tourism

by Palawan Council for Sustainable Development Executive Director Nelson Devanadera.

There will also be an input on contextual Filipino architecture, which will take into account the availability of indigenous materials, topography and local design, based on the Philippine way of life.

According to ISST President Mina T. Gabor, the five-­day course

El Nido Resorts Apulit Island has 50 water cottages.

In Bacuit Bay sits El Nido Resorts Miniloc Island.

Ecolodge guru Hitesh Mehta

EL Nido Lagen Island Resort is an exotic beach getaway.

Pangulusian Island Resort is also known as “Island of the Sun”

will enable participants incorporate renewable energy and efficient waste and water management systems into design and construction, and reduce building footprints by integrating infrastructure with the natural landscape.

She said participants will also conduct an onsite metaphysical and physical analysis of the Dinalupihan Nature Park in Bataan, and present

conceptual ecolodge site plans for the plenary workshop.

Gabor said the workshop is in line with the country’s hosting of the first Asia Pacific Natural Landscape Conference and Exhibition in April 2017.

She noted that there are only very few ecolodges, as they must conform to stringent ecotourism standards and criteria of an authentic ecolodge

and expressed hope that it will be a norm among tourist facilities worldwide.

In the Philippines only El Nido Resorts in Palawan qualify as authentic ecolodges because of the hotel chain’s environmentally sustainable management policies.

Comprised of the Island Resorts of Pangulasian, Miniloc, and Lagen in El Nido town, and Apulit in Taytay,

Makati Diamond Residences: A gem in Makati cbd

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t the heart of Makati Central Business District, where well-known corporate establishments, iconic landmarks, shopping and dining destinations are easily accessible, a sanctuary where business feels like leisure can be found—Makati Diamond Residences.

Committed to provide the highest standard of luxury-serviced living through seamless service and top-of-the-line amenities, Makati Diamond Residences has 415 spacious and well-appointed guest rooms each outfitted with European furnishings from luxury brands, including Calligaris and Bo Concept, while homegrown brand, Las Palmas, inserts a touch of Filipino craftsmanship. Catering to long staying business travelers and family getaways, guest rooms are equipped with a fully functional kitchenette, washer and dryer, 55-inch LED television, in-room safe, a large shower and bath, complimentary Wi-Fi, access to Press Reader, complimentary Toby’s Estate coffee and TWG Tea. Elevate your stay at the privacy of the Club Lounge, at the 27th floor and accessible to guests staying at larger suites. Guests enjoy the luxuries of early check-in and late checkout, complimentary all-day refreshments, including local beers, coffee, tea, sodas and chilled juices, evening snack at 5 p.m. paired with select cocktails and wine, a dedicated team at your service and access to the property’s private cinema.

To address the demands of business travelers, the Business Center offers three private spaces easily accommodating eight persons for quick meetings, interviews and the like.

Other services offered include incoming and outgoing facsimile, photocopying, printing and scanning services and more. Mastering the business of luxury, Makati Diamond Residences offers over 1,500 square meters of space for larger business meetings or social events. The Legaspi Ballroom is the perfect canvas for any occasion, with a high ceiling, fancy chandeliers and a spacious foyer. The space exudes luxury and abundance, easily

they will be included in the next edition of Mehta’s book, Authentic Ecolodges in the World.

The Ecolodge Design and Planning Workshop is supported by Philippine Airlines, the Department of Environment and Natural Resources, the Department of Tourism, Subic Lighthouse Marina Resort, and the Tourism Infrastructure and Enterprise Zone Authority.

Manila FAME welcomes exhibitors and international buyers to a bigger show

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he Philippines’s premier design and lifestyle event is expanding the show for October 2016—with more venues, extended exhibit hours, more SME exporters and more special showcases for new artisans, designers and products.

Four venues to accommodate more exhibitors

Alfred restaurant offers exciting Asian and Continental cuisines .

accommodating up to 350 guests. Let us be part of your milestone moments with different packages tailor fit to suit your affair.

Complementing your stay, Makati Diamond Residences has created an environment that truly cultivates healthy living. Enjoy a leisurely swim come rain or shine at the indoor lap pool, spanning 25 meters, for an active way to start your day. Take your workout with you to our 24-hour gym, equip with traditional cardio machines, such as treadmills, motion trainers and Keiser spinning bikes.

A wide range of free weights and nontraditional rowing and climbing equipment can be expected to complete your training routine.

Fitness instructors are ready to assist you with your exercises from 9 a.m. to 11 p.m.

Alternately, early risers get the privilege to enjoy a workout targeting to improve core strength with daily one-hour TRX classes starting at 7 a.m.

Alfred, the property’s Asian and Conti-

nental restaurant named after an iconic fictional character, reliably serves exceptional dishes to compete with the amazing location 24 hours a day. Dining guests may expect a quiet respite and a relaxing atmosphere, amid the city’s busy streets. Adjacent to the restaurant is Baked, housing our famous Ube Ensaymada, Baked Cheesecake, Supermoist Chocolate Cake and its specialty ice-cream counterparts. Food and beverage items from our partners are made fresh daily, including pastries from Eric Kayser and beverages from Toby’s Estate and TWG Tea. When staying at Makati Diamond Residences, take advantage of having the best dining destinations at your fingertips. Longstaying guests and corporate account are entitled to the Dining Card, an innovative solution to long queues and endless breakfast options, giving guests the flexibility of taking their complimentary breakfast at 19 partner restaurants in the area any time of day.

The 64th edition of Asia Pacific’s second-longest running trade exhibition, Manila FAME, will be held in four large venues to accommodate the growing number of participating SME exporters and the deluge of international trade buyers joining every edition to source unique products of Philippine artisans. The upcoming show from October 20 to 22 will be held at the World Trade Center (WTC) Main Hall, which will house the holiday and home exporters, and the WTC Tent, which will feature fashion, textile and apparel brands. The Philippine Trade Training Center (PTTC) will exhibit arts and crafts, and start-up and retail companies, while HallONE will be the venue for the Design Week Philippines’s (DWP) Creative Marketplace.

DWP, held concurrently with Manila FAME, is a multifaceted fête of the arts and design aimed at fostering creativity and spurring innovations. It is highlighted with activities that speak of Filipino ingenuity and design breakthroughs that strengthen the Philippines’s position as Asia’s design capital. In addition to the special DWP events to be held at HallONE, more activities initiated by the Design Center of the Philippines will take place in Manila’s historic center, Intramuros.

Extended exhibit hours to let in more trade buyers and visitors

Manila FAME October 2016 edition will extend its operating hours, from the original 9 a.m. to 6 p.m. to 9 a.m. to 7 p.m. The change was made in response to trade buyers’ request for longer business hours that would allow them to meet with all their target suppliers in Manila FAME, examine new products at the show and maximize their visit in Asia, which will have other trade events scattered across the region.

New special showcases and daily events to update trade buyers and visitors on what’s hot

Exciting showcases to look forward to in the October

Manila FAME features finely selected furniture and home furnishings, holiday gifts and décor, and fashion accessories, designed and crafted in the country for the global market.

show include New Generation Weaves; Bamboo and Coconut Special Setting; Lamps, Lighting and Icon Setting: Peacock Redux. Lively daily events to update trade buyers on on-trend designs and products, as well as inspiring and creative workshops and business fora, will be staged for a multi-sensory, comprehensive, and diverse trade show experience. Furthermore, the 64th Manila FAME will be made even more momentous with the celebration of the Asean Master Craft Design Festival and the participation of the Asean Master Craftsmen, who will present their creations in a special pavilion, called Asean Crafts to the World.

The first group of the Asean Master Craftsmen, coming from the countries Indonesia, Malaysia, the Philippines, Thailand and Vietnam, will unveil new designs and progressive applications of native materials and traditional techniques in home furnishings, gifts and housewares, garden accessories and fashion apparels.

“Citem is continuously shaping Manila FAME, not just to meet the demands of the changing industry with its new generation of buyers, entrepreneurs, consumers, designers and artisans, but to exceed expectations, bring new ideas to the table and, most of all, to showcase what the Philippine SMEs can do with training and assistance,” CITEM Executive Director Rosvi C. Gaetos said.

Tourism&Entertainment BusinessMirror

news@businessmirror.com.ph

Monday, September 12, 2016 A11

Travel Memories in Watercolor Story by Marky Ramone Go | Artworks by Regine Garcia

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lmost nobody travel nowadays without a camera in this era of social media. The desire to instantly share memories on the road through posting of photographs online has become a popular practice of every wanderer.

And yet, there are still a few who would rather document scenes on the road through an unconventional medium: watercolors on paper.

Regine Garcia, traveler and watercolorist

I first met Regine Garcia during a trip to the province of Capiz, where I first saw firsthand her flair in sketching the many fascinating images of her jaunts. Since then, I have been closely following her work through Facebook in a much fervent manner, more than I would with a renowned travel photographer. Fascinated with her method of documenting her journeys, I asked her a few questions about her passion.

How did you get started with watercolor sketching?

As a break from the day’s workload, I tried to play with my unused 2-year-old watercolor set as a form of stress-relief. I was an avid user of acrylic paint and oil pastels when I was a little girl, and the concept of trying out watercolor intrigued me. When I painted for the first time using the medium, I was extremely disappointed with my artwork. I have never felt that way before, because I thought it

Incomplete (watercolor, 8”x11” paper)—in San Joaquin, Iloilo, loom weaver’s husband in a pensive mood

would be easy. I was wrong. After that, I challenged myself to work with watercolor—to understand the medium, to learn the techniques and to develop my skills.

I was determined to study as much as I could with the watercolor medium. I constantly looked for inspiration from photos and magazines, and tried to do my own rendered version using water and paint. My progress was carefully documented since the last quarter of 2014. I was attaching little postit notes on every artwork with some of my own critique, whether or not to use pencil, ink, or even coffee for underpainting.

It took me several weeks to get everything right through stressful trial and error: the right water-andpaint ratio, the right paper, the right kind of paint, the right brush types and the right atmosphere.

A few months of experimenting with the unpredictable medium, I decided to do my watercolor practices constantly, whether in the

Hampang sa Baybay/Play at the Beach (watercolor, 8”x11” paper)— popular children’s game during summer in Cauayan, Negros Island Region

Pag-Bulad Sang Isda/The Process of Drying Fish (watercolor, 8”x11” paper)— sun-drying fish in coastal areas of Malalison Island in Culasi, Antique

Terracotta (watercolor, 8”x11” paper—well-preserved art of pottery and brick-making in Tibiao, Antique

Subsistence (watercolor, 8”x11” paper)—locals from Danjugan Island in Cauayan, Negros Occidental, transport freshwater, food and necessities from the mainland.

studio or on-the-spot. Watercolor sketching came about as I progressed into those random daily to religious weekly exercises, where it was necessary to bring the medium everywhere I go. Sketching and painting quickly then turned into a habit when traveling.

How important is traveling in inspiring you to draw?

Traveling gives depth to my artworks. The people who I meet and interact with, the cultures that I have observed and experienced, and the environment that I am in, these are very subjects that inspire me to paint.

Everything that surrounds me when I travel gives me a clearer view of reality. Inspiration comes from all the elements that are within me and around me. To draw and paint is not just to capture what is there in front of me, it is to tell a story, convey the emotions and set the mood of the piece.

Being in different places defines

the artwork. It never requires words to tell you where it is, because the subjects, the foreground and the background will show you.

Traveling opens my eyes to the lines, colors, textures, form and shapes of the real world—the very foundation of conceiving a concept for an artpiece.

What do you look for in an interesting subject to draw?

Since I grew up in the city, I had less exposure to the life in the countryside. That might be the reason I am inclined to paint scenes in the rural areas across the archipelago.

I like painting the locals in particular, the old folk, laboring men and women, and playing children. I like to capture a fun and happy life in the village, as well as the struggles and drama in the province.

When creating an artwork, I generally look for stories that illustrate the life in the rural areas.

I have been focusing more on the people as my subjects rather than

No place like home–Teo reminds Fil-Ams F

ILIPINOS in the United States, now numbering nearly 3.5 million, must make time to visit and rediscover their home country, Tourism Secretary Wanda Corazon T. Teo said. Overwhelmed by the staggering number of Filipino-Americans, Teo made the call recently during her four-day speaking engagements at various Filipino community events in New Jersey and San Francisco.

The US is the second top source market for the Philippines, accounting for 15 percent of total visitor arrivals in 2015.

Teo said US visitors are expected to grow significantly in the coming years, as the Department of Tourism (DOT) works with the travel and tour operators to entice FilAms, as well as the mainstream Americans, to visit the country.

Some 337,000 Fil-Ams reside in the New York and New Jersey areas, where the DOT official was invited to fiesta-like gatherings, which also featured Philippine entertainment celebrities. From the East Coast, Teo flew westward to San Francisco and joined over 15,000 people, mostly Fil-Ams, at the Pistahan Parade and Festival 2016 at Yerba Buena Gardens, San Francisco.

“Undeniably many of our fellow Filipinos experience homesickness and longing to visit our home country, reunite with relatives and friends,” Teo said.

In New Jersey she told 500 Fil-Ams at the People Ball, “It’ll be great if you invite your American friends and Facebook friends to come see our world-class tourist destinations

Tourism Secretary Wanda Teo (sixth from left) with San Francisco PH DOT San Francisco Attache Purificacion Molintas (right) and representatives from the Fil-Am communities in San Francisco

Teo with some of the Filipino-Americans at the Pistahan Festival in San Francisco

and experience genuine Filipino hospitality.

Remember, there’s no place like home.”

Teo welcomed the offer of partnership with the Advancement for Rural Kids (A R K ) Fo u n d at i o n , a n o rg a n i z at i o n that supports a feeding program for grade-school kids, and provides new

income oppor tunities for the rural communities. ARK Foundation volunteers are mostly young professionals and nextgeneration Fil-Ams. “To be able to give back to the community, particularly the marginalized sector, is, in fact, the bottom line of our inclusive tourism program,”

she stressed. “It is important that those visiting our home country personally witness the change that is unfolding under the Duterte administration,” the DOT chief added. In an interview with Fiesta in America President Fernando Mendez and Asian Journal publisher Roger Oriel, Teo said the next generation of Filipinos must be encouraged to come to the Philippines and trace their roots.

She also welcomed the support of airline and travel and tourism executives, citing the vital role of flag-carrier Philippine Airlines.

During her meetings, Teo reaffirmed the plan for Manila’s hosting of the Miss Universe pageant next January at no expense on the part of the government as to its production costs.

The DOT chief discussed partnership with the Tourism Infrastructure and Enterprise Zone Authority to support local communities through infrastructure and product development to harness their unique attractions as tourism destinations.

She also talked about her advocacy for the “One Town, One Product” concept and the Tourism Promotions Board’s (TPB) funding support to US-based marketing and promotions of medical and Filipino cultural and culinary tourism.

Teo also said the DOT will give priority to “underdeveloped destinations” in the Philippines and unravel best-kept secrets, such as those in Davao, Siargao and Cagayan de Oro areas. IZL

just the landscapes or seascapes.

The people inspire me in a way that has significantly changed my perception about work and life. I continuously observe them, interact with them, share moments with them, and eventually paint them.

I find immense joy when I get to spend a lot of time with my subjects.

Whether I hang out with fishermen’s children or talk to women about the process of sun-drying fish, I love hearing what they have to say and telling their stories through the works that I create.

My artworks show the slow paced, simple life, without the technological distractions; new gadgets, computers and headphones that we usually see being sported in the city. I like to show something different, authentic, genuine and real.

Tell us about a particular travel experience where you discovered unique scenes for your art?

I had the opportunity to volunteer

in so many medical and surgical missions that were conducted in remote places. Those travel experiences exposed me to interesting subjects and breathtaking backgrounds that I could use to portray genuine and authentic stories in my artwork.

Given that these trips last for a week, I made use of my free time by sketching and creating studies on my sketchbook. My growing love for creating artworks that depict those kinds of scenes are reinforced by one opportunity to another.

One of the best experiences that I had is sharing watercolor painting to others, most especially to children who are eager to learn. Traveling connected me to young talented kids and interesting people; all the more that inspires me to continue what I am actively doing.

Regine Garcia also writes about her travels at http://betweencoordinates.com and showcases her art at http://reginegarcia.com.

Five world-class nights a week with Duo Golovin at Resorts World Manila

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nstage this September at Resort World Manila’s entertainment hub Bar 360 are the country’s hottest local and international performers, plus dazzling variety shows ready to thrill audiences after workhours.

Th i s m o nt h h u s b a n d - a n d - w i fe gymnast tandem Liudmyla and Ivan Golovin, otherwise known as Duo Golovin, joins the roster of Bar 360’s world-class performers. To date, the couple has taken their jaw-dropping act all over the world, including their native Ukraine, Russia, Germany, England, China, the United Arab Emirates and Japan.

Having designed a fluid yet intense aerial choreography, D uo G olovin challenges strength and poise using a suspended bamboo, wherein they per form incredible stunts that are graceful in every execution.

The balancing act of Amazonian Duo’s Anja and Sasha complement Duo Golowin in The Suave and Sexy Show as they are joined by handsome Filipino vocal trio Primo and RWM’s talented international dancers also perform in the sultry Dare to Burlesque with the gorgeous ladies of Singing Sensations

Gymnasts Liudmyla and Ivan Golovin

every Monday, Thurday and Saturday.

Shows start at 8:45 p.m.

With Bar 360’s signature circular stage complemented by its kaleidoscope-like canopy, audiences are sure to witness one-of-a-kind performances to which nothing compares.

Science Monday

A12 Monday, September 12, 2016

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

More superbug cases reported

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EW YORK—A fourth United States person has been diagnosed with bacteria resistant to a last-resort antibiotic, but researchers are expressing relief that, so far, these superbug precursors have not spread to others.

The latest case is a 2-year-old Connecticut girl who was diagnosed earlier this year, the Centers for Disease Control and Prevention (CDC) reported on Friday.

She and three other Americans have been found to have E. coli bacteria that were resistant to an important medicine called colistin.

Colistin is an old, powerful drug with significant side effects that is reserved for germs that already resist other important antibiotics.

Health officials have worried that the colistin-resistant bacteria will spread their special trait to bacteria already resistant to other medicines, setting the stage for true superbug infections that are impervious to all known antibiotics. For example, researchers reported last week a worrisome case of a 76-year-old man treated in 2014 at a New Jersey hospital.

In follow-up testing this year, he was found to have been infected by a germ that was resistant to both colistin and another class of antibiotics called carbapenems that are also reserved to treat, especially tough bugs.

It was the first time this kind of double-resistance was reported in the US, though several other cases have been reported elsewhere in the world. All the US cases have been treatable by other antibiotics.

And, importantly, researchers report that the bacteria do not seem to have infected other people. When bacteria spread, they encounter other bacteria and can exchange genetic traits, creating more opportunity for a superbug to emerge. The Connecticut girl developed diarrhea during a June trip to the Caribbean. It turns out another bug caused her symptoms,

A microbiologist works with tubes of bacteria samples in an antimicrobial resistance and characterization lab within the Infectious Disease Laboratory at the Centers for Disease Control and Prevention (CDC) in Atlanta. According to a report released by the CDC on Friday, a fourth US case has been identified of a person infected with E. coli bacteria resistant to an antibiotic used as a last-resort treatment. But the good news is none of these cases seems to be spreading to others. AP/David Goldman

one that she probably picked up from something she ate. But lab testing revealed she also was carrying E. coli that carried colistin resistance, said Maroya Walters, a CDC epidemiologist who investigated the case.

She recovered, Walters said. Six family members were tested and none tested positive for bacteria carrying the colistin-resistance gene, called mcr-1 by scientists.

The CDC on Friday also updated an investigation into one of the four other colistin-resistant cases,

a Pennsylvania woman whose case was first reported in May. Investigators were not able to determine where she picked up her infection, but they tested more than 100 people, but found no evidence it had spread to anyone else.

Based on what researchers seen so far, “We’re hopeful that the risk of transmission to otherwise healthy people is relatively low,” said Dr. Alexander Kallen, a CDC epidemiologist who worked on the case. AP

Searca names outstanding alumni

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he Southeast Asian Regional Center for Graduate Study and Research in Agriculture (Searca) has named the 11 recipients of the Outstanding Searca Scholarship Alumni (OSSA) award. Five of whom are from the Philippines, two each from Indonesia and Thailand, and one each from Malaysia and Vietnam.

The Filipino OSSA awardees are Dr. Naomi Tangonan (teaching), Dr. Lucrecio L. Rebugio and Dr. Generoso G. Octavio (advocacy); and Dr. Delfin J. Ganapin Jr. and Dr. Segfredo R. Serrano (public policy and governance). The other awardees are Dr. Klanarong Sriroth of Thailand, Prof. Dr. Mahiran Basri of Malaysia and Dr. Phan Hieu Hien of Vietnam (research); Prof.

Dr. Ir. Mochammad Maksum of Indonesia (advocacy); and Prof. Dr. Musliar Kasim of Indonesia and Dr. Chya Suthiwanith of Thailand (public policy and governance).

The awardees were honored for having personified Searca’s values and philosophy, their professional achievements and the impacts they have created in the fields of teaching, research, public policy and governance, and advocacy in agricultural and rural development in Southeast Asia.

The awardees were selected from among the 1,370 alumni of the Searca Graduate Scholarship Program in a rigorous search throughout the Southeast Asian region. This is the first time that

Searca will confer such accolade on its alumni. Besides the 11 O S S A aw a rde e s, t wo S e a rc a alumni will also be presented the Emerging Leaders in Transition Economies (Elite) award.

They are Dr. Seng Mom of Cambodia and Ag ustinho Da Costa X imenes of Timor-Leste.

Wit h t h is spec i a l c it at ion, Searca recognizes its scholarship alumni who are actively contributing to the rebuilding of their nation through their transformative leadership.

Searca Director Dr. Gil C. Saguiguit Jr. said the remarkable achievements of the Searca scholarship alumni affirm that the agency has been successful in carrying out its mandate to assist Southeast Asian countries in producing highly trained human resources in agriculture and related fields to accelerate agricultural and rural development in the region.

The awarding ceremonies will be held on November 24 at Searca headquarters in University of the Philippines Los Baños, Laguna, Philippines. It will coincide with Searca’s celebration of its 50th founding anniversary. The Philippine-based Searca is mandated to build capacities of institutions working in agriculture and rural development in the region through its programs on graduate education and institutional development, research and development, and knowledge management.

Lost heritage: Quake deals blow to Italy’s art treasures R

OME—Within hours of the recent devastating earthquake in central Italy, members of the national police squad of art experts were already exploring the mounds of rubble in several medieval hill towns.

They have photographed hundreds of centuries-old churches with missing roofs, torn-away frescoes or gaping holes where stained glass once filtered sunlight. The quake and several powerful aftershocks dealt the latest blow to Italy’s long-deteriorating abundance of art and architecture. Even without nature’s fury, monumental fountains, churches and ancient Roman ruins were already vulnerable to car exhaust fumes, vandalism and other human-inflicted damage.

Ita ly’s most urgent pr ior ities are to ensure shelter for those needing a safe roof after on Wednesday’s temblor and to keep digging for any more victims’ bodies. But the stricken region’s cultural heritage of medieval paintings, sculptures, bell towers and other monuments is vitally entwined with inhabitants’ daily lives and intrinsic to Italy’s international reputation as a treasure trove of art.

No artworks with the cachet of a Leonardo, Michelangelo or Giotto are among those lost in the quake. But art historians stress that local art of whatever pedigree helps to explain the cultural and artistic contexts that inspired the great masters. And just as importantly, local pride over this artistic heritage in churches or piazzas binds these centuries-old towns to their past.

“The icons of these towns are dear to the hearts of the locals,” said Cristiana Collu, who trained as a medieval art historian and was recently named director of the National Gallery of Modern Art in Rome. “Life is precious, but it’s also precious because of these memories” of the artistic past, Collu said in an interview with The Associated Press.

Q u ic k ly a nd met hod ic a l ly documenting the damage helps c u lt u r e o f f i c i a l s d e t e r m i n e which basilicas or bell towers are beyond repair and must be razed for safety’s sake, and which are

The ruins of Basilica di San Francesco in Amatrice, central Italy, where a 6.1-magnitude earthquake struck. Italian Carabinieri via AP

candidates for Italy’s internationally recognized trailblazers in art restoration.

Hardest hit was the medieval town of Amatrice, where collapsing houses claimed 229 of the nearly 300 lives taken in the quake.

At the town’s Saint Francis Basilica, a round window is now a hole. Heavy painting frames have crashed to the floor. The fate of the paintings cannot be determined until debris is cleared, which could take weeks or months. Amatrice’s medieval

bell tower has resisted collapse, although its huge bell dropped a few meters from its hook. With the clock’s hands stopped at 3:36 a.m.—the precise time of the quake—the tower instantly became a symbol of Amatrice’s will to be reborn.

Italy has a long experience in repairing the artistic destruction wrought by natural disasters.

When a 1997 quake sent Giotto’s frescoes raining down in tiny fragments from the vaulted ceiling of the Saint Francis Basilica in Assisi, restorers painstakingly

pieced together much of the masterpiece. In 1966 a corps of global volunteers, dubbed the “angels of the mud,” rescued countless Florence artworks from Arno River floods.

The medieval hill towns that dot the countryside help to make Italy a magnet for tourists. Even the tiniest hamlet is home to priceless artwork—perhaps a 600-year-old crucifix in one, religious-themed frescoes in another.

Art historian Alia Englen spent the better part of three years studying every monument and church in Amatrice, aided by the retired director of the town’s museum who perished in the quake.

In an interview with La Stampa daily, Englen said Amatrice’s 115 churches contained around 3,500 artistically significant pieces.

Museum director Collu said not rebuilding the towns would be a “cancellation, a removal of the past.”

Italy chronically underspends on caring for its immense array of artworks, medieval, Renaissance and Baroque palazzi and ancient Roman ruins and often turns to corporate sponsors to help fund restorations. But these sponsors, ranging from Italian fashion houses to Japanese textile companies, typically favor associations with the most internationally prestigious monuments, such as Rome’s Colosseum or Trevi Fountain.

Fol low i ng t he qu a ke, It aly’s culture minister announced t hat a l l revenue f rom tic ket sales at national museums and galleries on Sunday would be earmarked for reconstruction projects. Visitors w ith ex perience of post-quake recover y elsewhere say Ita ly needs to mobilize global donations.

Jane Stafford, a New Zealander visiting a Rome art gallery, recalled how effective public appeals overseas helped the New Zealand city of Christchurch get back in order following its 2011 quake. “ T he whole world helped,” she said, suggesting that Italy should launch a social mediadriven donation drive.

“The villages could maybe appeal to the world. I could be sitting at my computer in Auckland and sending money,” Stafford said. AP

Green Monday BusinessMirror

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

BusinessMirror

Monday, September 12, 2016 A13

Man’s ‘closest cousin’ is one step away from extinction

Eastern gorilla now critically endangered

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ONOLULU, Hawaii—Man’s closest cousin in the animal world, the eastern gorilla, is sliding toward extinction because of illegal hunting, the International Union for Conservation of Nature (IUCN) announced last week in the latest update of its Red List of Threatened Species.

“Today is a sad day as the Red List shows we are wiping out our closest relative,” Inger Andersen, director general of IUCN, told a news conference in Honolulu, where the IUCN is holding its World Conservation Congress.

The eastern gorilla, the largest living primate found in the rainforests of Rwanda, Uganda and the Democratic Republic of Congo, was moved from Endangered into the Critically Endangered category— one step away from extinction.

The eastern gorilla, made up of two subspecies, has suffered a devastating population decline of more than 70 percent in two years and is now estimated to number fewer than 5,000, IUCN said.

Its greatest threat is illegal hunting. Four out of six great ape species are now listed as Critically Endangered. The other two— chimpanzees and bonobo—are listed as Endangered.

The IUCN Red List, updated twice a year, now covers some 82,954 species on our planet, of which 23,928 are threatened with extinction. The target is to increase that coverage to 160,000 species by 2020. The list is seen as a “barometer of life” and is the world’s most

5,000 The estimated current population of eastern gorilla

comprehensive source of information on the global conservation status of plants, animal and fungi species. The list plays a major role in influencing government and civil society on conservation goals and policies.

“We are losing species at a faster pace than ever,” Andersen said.

The latest findings made it imperative for governments, scientists and society at large to reverse the trend, she said.

The latest update did reveal some progress, however, particularly in China, thanks to the Chinese government’s efforts to stop illegal hunting and the degradation of habitats. The giant panda, perhaps the conservation movement’s most iconic animal and the logo of World Wide Fund for Nature, was moved down one cat-

Four out of six great ape species are now listed as Critically Endangered. IUCN/IPS

egory to the status of Vulnerable from Endangered. The Tibetan Antelope, its hide prized in the international luxury shawl market, was classified as Near Threatened rather than Endangered.

IUCN said the giant panda population had grown due to effective forest protection and reforestation and a successful linking up of previously separated panda populations. Hunting was also reduced.

However, IUCN warned that some scientific models predicted that climate change would eliminate more than 35 percent of the panda’s bamboo habitat over the next 80 years, reversing the gains made over the last two decades. “ The Chinese government’s plan to expand existing conservation policy for the species is a positive step and must be strongly

supported to ensure its effective implementation,” IUCN said.

De ve loped cou nt r ies w it h g reater f unding had a stronger record of protec t i ng spec ies a nd it w a s note wor t hy t h at t he C h inese gover nment a nd people were h av i ng success, commented Simon St u ar t, c ha ir ma n of t he IUCN spec ies su r v iva l comm ission.

Joseph Walston of the Wildlife Conservation Society, which was involved with efforts to protect the Tibetan antelope, noted that its population—which collapsed from around 1 million to some 70,000 in the 1980s and 1990s— had been threatened because of demand for its products in luxury markets outside China.

“China did something about it.

This is an important precursor,” he said.

He expressed the hope that China would now play a positive role in saving species of other countries that were threatened because of demand inside China.

Just one notable example is the pangolin—an ant-eating creature whose meat is prized on the dinner table and its scales in medicine.

“China is a net consumer of the world ’s wildlife at the moment,” Walston told Inter Press Service. “We all did it,” he added, noting how Britain and the United States had been huge destroyers of species during their period of industrialisation and rapid economic growth.

He said the emergence of middle classes and a consciousness about the importance of nature and environment had been a critical factor in the west.

“This process is starting in China, but too slowly,” he commented. Carlo Rondinini, a biologist at Rome’s La Sapienza University working for the IUCN Red List, warned that the trend for mammals was still downward.

“We are the only species of great ape not threatened with extinction,” he said.

The latest update showed that the once abundant plains zebra, hunted for its meat and hide, had been reduced by about a quarter over the past 14 years to just over 500,000 animals. IUCN moved it to Near Threatened from Least Concern. Three species of antelope in Africa were also added to Near Threatened.

One other success story in the animal world was Australia’s greater stick-nest rat, a unique nestbuilding rodent whose resin is so strong that it can last for 1,000 years if not exposed to water.

A successful species-recovery plan, involving reintroductions and some movements to predator-free areas, took the species from Vulnerable to Near Threatened.

The bridled nailtail wallaby also moved down a category, from Endangered to Vulnerable, after a successful, but expensive, translocation conservation programme.

IUCN experts noted that such programs involved considerable funding and effort, underscoring the need for the world to put more financing into conservation.

Hawaii, which is hosting the congress, held every four years, is seeing a rapid loss of its biodiversity, especially in plant life because of the introduction of invasive species. The Red List update assessed 38 of Hawaii’s endemic plant species as extinct, with four others listed as Extinct in the Wild, meaning they only occur in cultivation. IPS

Vote set to urge countries to close ivory markets

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ONOLULU—Members of an international environmental group were considering a proposal on Friday to urge leaders in every country to close domestic ivory markets that threaten elephants.

Ivory trading is banned internationally, but domestic trade within countries is legal nearly everywhere.

The International Union for Conservation of Nature (IUCN) plans to vote on the plan at the World Conservation Congress in Honolulu. Some members of the global group of government and nonprofit representatives don’t want a ban, and the vote was delayed when they filed a complaint, saying their concerns had not been heard.

“Some governments just don’t see the reality of the crisis that the countries of central and East Africa are facing right now,” said Susan Lieberman, vice president for international conservation at the Wildlife

Conservation Society. “This is about saying to all governments, ‘Make it, so people can’t buy ivory, because that’s the only thing that’s going to stop the organized criminals who are causing the poaching of elephants.’”

If the group passes the proposal, it won’t have the power to enforce it. Each country would have to enact laws individually, but the group’s policy experts could help countries craft laws. “ Wh i l e t h e re s o l u t i o n s a re n o t international law, in many cases, they are the genesis of international agreements,” said Enrique Lahmann, global director of IUCN. The number of savanna elephants in Africa is rapidly declining and the animals are in danger of being wiped out because of the ivory trade, according to a recent study, which said the population plummeted by about 30 percent from 2007 to 2014 and is declining at about 8 percent a year.

Microsoft Cofounder and philanthropist Paul Allen funded the aerial survey that covered 18 countries using dozens of airplanes and involved 90 scientists.

The United States announced a neartotal ban on the domestic sale of African elephant ivor y in June. “We’re talking about the extinction of elephants,” said Joseph Moravec, law student at Pace University and voting member of the conser vation congress. “Ivor y markets are going to close one way or the other, whether it’s us closing them when the elephant is still alive, or they’re going to close in a few years when these species are still extinct and there’s no more ivor y left.”

Statistical analysis of the census findings showed that savanna elephant populations in 15 countries had declined by an average of 30 percent—equal to some 144,000 elephants—between

2007 and 2014. The rate of decline accelerated in that period and is currently running at an annual 8 percent “primarily due to poaching.” Those figures indicate poachers are slaughtering some 27,000 elephants a year The aerial sur vey, carried out by spotters in low-flying planes, spanned n e a r l y 3 5 0 , 0 0 0 s q u a re m i l e s i n 1 8 countries. The data, after statistical analysis, came up with a count of 352,271 elephants. Comparative data only existed for 15 countries. The spotters also counted carcasses that helped compile estimates on the percentage of illegally killed elephants. Forest elephants, more difficult to spot by air, are to have a separate census.

The sharpest declines were seen in Tanzania and nor thern Mozambique, while some areas showed slight increases or a stable population, including South

A Zimbabwe National Parks official inspects the stock during a tour of the country’s ivory stockpile at the Zimbabwe National Parks Headquarters in Harare. The results of a new survey show a rapid decline in Africa’s savanna elephants as international and domestic ivory trades continue to drive poaching across the continent. AP/Tsvangirayi Mukwazhi

Africa and parts of Zambia, Zimbabwe, Malawi and Kenya. Relatively high carcass ratios in Uganda and the W-Arli-Pendjari conservation complex spanning Benin, Niger and Burkina Faso suggested that numbers there had been swelled by

elephants moving in from surrounding areas. Mike Chase, founder of Elephants without B orders, was the principal investigator for the census, which was funded at a cost of $7 million and by Vulcan Inc., created by Allen. AP and IPS

A14 Monday, September 12, 2016 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

Pursuing an independent foreign policy

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resident Duterte made headlines once again during the Association of Southeast Asian Nations Asean Summit in Lao PDR, where he made remarks laced with expletives allegedly against US President Barack Obama. Mr. Duterte’s tirades highlighted the double standards of the US government’s criticism of the current administration’s human-rights record while ignoring and obscuring the United States’s human-rights record in the Philippines and elsewhere.

At the Asean conference, he was specifically referring to the First Battle of Bud Dajo, also known as the Bud Dajo Massacre, where over 600 Tausugs were massacred by the United States Army in Jolo, Sulu. The President showed a picture of the massacre to leaders and diplomats during the conference. And this drew silence from the audience.

The President’s recent actions and tirades against the United States drew flak from critics concerned over the possible souring and, perhaps, downgrading of relations between the two countries.

Even during the election campaign, President Duterte has promised to pursue an independent foreign policy and not merely rely on our longtime ally and partner—the United States. This was reiterated at the Asean Summit, where he stated: “In our relations to the world, the Philippines will pursue an independent foreign policy. We will observe and must insist on the time-honored principle of sovereignty, sovereign equality, noninterference and the commitment of peaceful settlements of dispute that will serve our people and protect the interests of our country”.

The 1987 Constitution clearly states that the Philippines must pursue an independent policy that will benefit the interests of national sovereignty and in the interests of the Filipino people. However, our foreign policy since independence has always tilted in favor of a former colonizer—the United States.

In a speech delivered during the University of the Philippines commencement exercises in 1951, then-Sen. Claro M. Recto criticized our foreign relations with the United States. Titled “Our Mendicant Foreign Policy”, his speech outlines how nations only look out for their own economic and security interests.

In the same speech, he further states that this stems from the belief that Filipino and American interests are one and the same and that, while Americans may disagree with American foreign policy, it has no “better supporters” than the Filipino people.

True enough, in a 2015 survey conducted by the Pew Research Center on American favorability among countries, the Philippines scored 92 percent, which is the highest among 39 countries. Despite being the highest recipient of US military aid, Israel scored 11 percent lower at 81-percent approval rating, while 85 percent of Egyptians do not find the United States favorable, despite receiving $1 billion a year in military aid, the second-highest recipient after Israel. In contrast to the two examples, all the Philippines gets is a paltry amount, often in the form of hand me downs whose shipping costs we shoulder.

Aside from our inherent colonial mentality, this stems from the belief that the United States will always protect us. But in a multipolar world, where we contend with several powers, we must have a realistic and independent foreign policy where we benefit the most from our relations.

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RISING SUN

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he economy continues to look up for our country, as it posted a 7.0-percent growth in real GDP in the second quarter of this year, a little higher than the first quarter’s 6.8 percent. This figure is also significantly higher than last year’s 5.9 percent in the same quarter.

This growth makes the country the fastest-growing among Asia’s emerging economies in the second quarter of this year. When India’s data comes in, the Philippines may be bumped off to second place, but it’s still a very good place to be in.

China’s economy grew by 6.7 percent, Vietnam by 5.6 percent, Indonesia by 5.2 percent Malaysia by 4.0 percent and Thailand by 3.5 percent.

The previous administration left us with a strong economy and this is serving as a great start for the new government. Despite the election season, wherein growth would usually be expected to go down by about 1.5 to 2.0 percentage points, the rise proved that the transition to the new government was smooth, economic policies remain consistent, and that business and consumer confidence continue to stay strong.

According to the National Economic and Development Au-

thority (Neda), the biggest push came from investments, which gave a contribution of 5.7 percentage points. There was a 42.8-percent increase in investments in durable equipment. Private-sector investments, on the other hand, grew from 8.1 percent to 8.3 percent in the second quarter. The Neda attributes the growth to strong business confidence, low interest rates and the strength of the construction business.

Public construction grew by 27.8 percent and government consumption by 13.5 percent. These contributed to the continued strength in public spending. Similarly, the low inflation and interest rates, improved labor-market conditions and strong consumer confidence favored the increase in private consumption. In summary, the growth in domestic demand picked up from 12.0 percent in the first quarter to

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According to the Neda, the biggest push came from investments, which gave a contribution of 5.7 percentage points. There was a 42.8-percent increase in investments in durable equipment. Private-sector investments, on the other hand, grew from 8.1 percent to 8.3 percent in the second quarter. The Neda attributes the growth to strong business confidence, low interest rates and the strength of the construction business.

12.3 percent in the second quarter of 2016.

The export sector continued to weaken, however. Exports of goods and services were down to 6.6 percent. On the other hand, increased purchases of capital goods and durables boosted the growth of imports toward 22.9 percent.

Services imports finished strong at 13.3 percent, which was higher than the 10.3-percent growth in the first quarter.

As far as supply is concerned, the industry sector—supported by manufacturing, construction and utilities—posted a 6.9-percent growth, compared to 6.1 percent last year. The services sector recorded

an 8.4-percent increase, which was fueled by successes in the trade, transport communication, public administration and real estate, renting and business activities.

Our agriculture sector continues to suffer because of the effects of El Niño. Its growth was only at 2.1 percent in the second quarter.

This means that the new government will have to work extra hard to strengthen the agriculture sector by way of laying down sound policies to promote development, and to also come up with plans to prepare for disasters.

Overall, the 7.0-percent growth was still within the market projection of 6.1 percent to 7.2 percent for the second quarter. Because of the good figures from the first half of the year, we remain hopeful that the economy will reach its full-year 2016 growth projection of 6 percent to 7 percent.

Moving forward, the Neda highlighted the areas wherein serious reforms need to happen to be able to support the steady growth of the Philippine economy: comprehensive tax reform, sustained investment in infrastructure, easing of restrictions on foreign investments, reduction of cost of doing business and the strengthening of agro-industrial linkages.

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Atty. Rojas is vice vchairman and general manager of the Philippine Charity Sweepstakes Office.

Hop on the LGU P4 DILG bandwagon

By Alberto Agra

PPP Lead

Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Efleda P. Campos Ruben M. Cruz Jr. Angel R. Calso

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Philippine GDP grows by 7% in Q2

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—

Continued from A1 Clear message telegraphed.

The messages are clear. The DILG wants to shift the focus of PPPs, from being pure transactions and project-based to being transformational and focused on the public good. PPPs must be advanced to serve the people, hence, the fourth P. And the “people” should not be confined to people in Metro Manila, urban centers and Luzon. Secretary Sueño underscored the need to have more projects in Mindanao and the Visayas.

People as beneficiary and coparticipant. The people are more than just beneficiaries or recipients. They must participate in the whole process. Social accountability mechanisms must be in place to create venues for civil-society organizations to par-

ticipate in this change strategy.

T he sug gested ord i n a nce, consistent with 1991 Local Government Code, institutionalizes people participation.

PPP redefined under the MC. PPP must be viewed as both a strategy and a project-level undertaking. At the policy level, LGU P4 is a developmental, innovative, change and partnership strategy aimed at promoting the general welfare, inclusive growth and better quality of life of Filipinos.

At the project level, LGU P4 is a contractual arrangement between the LGU and the project proponent to deliver public infrastructure and/or public services where each party assumes specified functions, bears certain risks, provides contribution, performs particular obligations, and

The messages are clear.

The DILG wants to shift the focus of PPPs from being pure transactions and project-based to being transformational and focused on the public good. PPPs must be advanced to serve the people, hence, the fourth P. And the “people” should not be confined to people in Metro Manila, urban centers and Luzon. Secretary Sueño underscored the need to have more projects in Mindanao and the Visayas.

earns benefits and revenues.

Template P4 ordinance made public. Attached to the MC is a template PPP ordinance developed by this columnist. The sample ordinance contains 24 PPP modalities and urges LGUs to develop additional schemes.

Three selection procedures are spelled out—competitive selection or bidding, competitive challenge or unsolicited proposals and

competitive negotiations.

Close to 100 projects. There are close to 100 projects listed in the model ordinance. The list ranges from big-ticket to small-ticket projects, and may be classified either as “hard” or infrastructurerelated, or “soft” or social servicesrelated projects. LGUs can undertake monorail, reclamation, road, bridge, water, septage and power projects. LGUs are also encouraged to improve existing public markets and expand the services to include an integrated transport terminal, abattoir, commercial spaces and restaurants. This is an example of a “bundled-type” project.

Broad learning ecology. For P4 to be advanced as strategic and tactical strategy, local officials must be capacitated. During the launch, the Local Government Academy presented an overview of its ladderized capacity-development program. To complement this initiative, the PPP Center has, likewise, developed its set of training modules.

Let us build development at the local level. The bottom-up approach should not remain an empty rhetoric.

Opinion BusinessMirror

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US-Russian Syria deal lacks a key element: Trust

Audit requirements and compliance for micro and small enterprises

By Leonid Bershidsky

Marco Fernando L. Ng

Bloomberg View

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his time is different, or so US Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov would have us believe. A new Russian-US agreement to ensure a cessation of hostilities in Syria, indeed, goes further than previous efforts, but the lack of mutual trust between the negotiators has the potential to turn the deal into a clone of the less-than-successful Minsk cease-fire agreements for Ukraine.

The agreements, five separate documents, won’t be published, ostensibly to prevent Islamist groups from disrupting the humanitarian effort that should follow the deal. That in itself is a good sign: It means the sides are really going to try to implement it, rather than argue publicly about who’s to blame for renewed violence. But it also means only the general outlines of the deal are available.

The US supposedly has a promise from the moderate Syrian opposition—whichever of the hundreds of warring groups now represent it—and Russia has a promise from the Bashar al-Assad regime that they will stop fighting in Aleppo; withdraw from Castello Road, the ravaged city’s main supply artery; and allow humanitarian cargoes to come in.

Apart from that, the Assad regime is to stop bombing opposition-held areas, even if they are controlled by the group formerly known as al-Nusra, the Syrian alQaeda affiliate. (It now calls itself Jabhat Fateh al-Sham, but Kerry and Lavrov only refer to it by the old name). Then, if these terms are met for a week, the US and Russia will set up a Joint Implementation Center (JIC), which will serve as a conduit for information sharing and as a coordination venue for strikes against Nusra and the Islamic State (IS).

This is an agreement whereby neither side loses face. The US gets Russia and the Assad regime to stop hitting opposition fighters indiscriminately, while claiming they are all terrorists.

Once the JIC is up and running, presumably, there w ill be no strikes without US coordination.

Russia gets a commitment from the US to fight Nusra—something it suspected the Americans weren’t planning to do because, as Lavrov said at his joint news conference with Kerry early on Saturday, they were “ just keeping Nusra as Plan B for overthrowing of the regime.”

The Syrian parties get something out of the deal, too—but it appears weighted toward Assad.

Both his and moderate opposition forces are exhausted and depleted, and they need the pause.

Assad ’s troops had the upper hand in recent days, having restored the siege of Aleppo after a brief setback, so theoretically, they should be less happy about the cease-fire. But Nusra has recently been the strongest, most combat-ready rebel force in the Aleppo area, and if the US agrees to fight it, Assad is OK with standing back and letting the big boys unleash hell on his most dangerous enemies.

He knows eventually he will have to negotiate with the USbacked opposition: He was never going to wipe it out completely, and the US will force it to be reasonable at the negotiating table.

It’s Nusra and IS that Assad is really worried about. They are implacable, and they won’t stop fighting until defeated.

The US is in a weak position in Syria because the forces it backs sometimes fight against each other. When Turkey recently sent troops across the Syrian border to clear it of IS fighters, it also pushed against the US-backed and Kurdish-led Syrian Democratic Forces, which denounced the attack as an “occupation.” Other

In the worst-case scenario, the truce won’t even hold because some obscure rebel group decides to take a village, Assad’s forces retaliate, and Russia claims that the US is backing terrorists again. But even if everyone maintains the cease-fire as agreed, there are numerous pitfalls.

To name just two, the US-Russian coordination may fail because of irreconcilable differences, and Assad may fight on with quiet Russian backing while Lavrov shrugs, claiming a lack of decisive influence on the Syrian regime.

US - suppor ted g roups fought alongside the Turkish forces.

Apa r t f rom st reng t hening Russian President Vladimir Putin’s negotiating position, this US weakness is also a threat to the deal. There’s lots of room for disagreement on whom to bomb as dangerous radicals. The lines between groups and affiliations are often blurry. Besides, Turkey’s interests are not entirely aligned with those of the US, and by rights, it should have been a party to the talks.

“No one is building this based on trust,” Kerry said at the press conference. That, too, is a problem. When there is no trust, agreements have to be extremely specific and complex, strictly specifying areas in which Russia and the US will fight together and others that are off limits to them and their allies. That’s much harder than drawing such lines in eastern Ukraine: It’s often unclear which group really controls an area and where these group’s affiliations lie in the constantly changing patchwork that is Syria after five years of war.

In the worst-case scenario, the truce won’t even hold because some obscure rebel group decides to take a village, Assad’s forces retaliate, and Russia claims that the US is backing terrorists again.

But even if everyone maintains the cease-fire as agreed, there are numerous pitfalls. To name just two, the US-Russian coordination may fail because of irreconcilable differences, and Assad may fight on with quiet Russian backing while Lavrov shrugs, claiming a lack of decisive influence on the Syrian regime.

The biggest problem, however, is that there is no inkling of how political issues will be addressed after a putative US-Russian victory over Nusra and IS. Unless the two big players agree on a joint solution to push for, there will be too much uncertainty for local players and too many reasons to keep fighting. The Minsk agreements actually included a political deal, but it didn’t fully suit either side and so they chose to ignore it, creating a semi-frozen conflict.

In Syria, even that outcome now looks too good to be true.

The US and Russia appear to be determined to take baby steps to build the trust necessary for a more permanent solution. The optimism, at least, should be commended.

Monday, September 12, 2016 A15

DEBIT CREDIT

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hile mainstream media and social-networking sites are bursting with news on government and nongovernmental personalities lobbying for lowering of taxes in the Philippines, one portion of the tax updates that is not tackled by these personalities is the requirements for submission of audited financial statements of micro and small enterprises (MSEs).

Based on the figures provided by the Philippines Statistics Authority, the number of micro enterprises in the Philippines is at 851,756 and small enterprises is at 87,283, which means that 939,039 out of the total registered businesses in the Philippines of 946,988 (which include 4,063 large enterprises) are considered MSEs. With these figures, shouldn’t we also consider MSEs reporting requirements in the updates of the tax laws.

With the sheer number of these MSEs, how many of them would be required to have their financial statements audited by independent Certified Public Accountants (CPAs)? First let’s find out who requires this type of report. Currently there are four main regulatory bodies that require audited financial statements (AFS), namely, the Bureau of Internal Revenue (BIR), the Securities and Exchange Commission (SEC), the Insurance Commission and the Bangko Sentral ng Pilipinas.

Of the four regulatory bodies, two of them have a huge impact in terms of submission of the AFS by MSEs, namely, the BIR and SEC. Un-

der the National Internal Revenue Code of the Philippines, Section 232 (A) provides that “Corporations, companies, partnerships or persons, whose gross quarterly sales, earnings, receipts or output exceed one hundred fifty thousand pesos (P150,000), shall have their books of accounts audited and examined yearly by Independent Certified Public Accountants”; (B) “The term ‘Independent Certified Public Accountant,’ as used in the preceding paragraph, means an accountant who possesses the independence as defined in the rules and regulations of the Board of Accountancy promulgated pursuant to Presidential Decree 692, otherwise known as the Revised Accountancy Law”.

The SEC requires that the AFS will be submitted to the SEC in the following instances: If a domestic corporation that is a stock corporation with paid-up capital of P50,000 or more; and nonstock corporations with annual gross receipts of P100,000 or more, or total assets of P50 million or more; If a foreign corporation that is branch office of a stock foreign corporation with total assets of

P500,000 or more; branch office of a nonstock foreign corporation with total assets of P500,000 or more; a representative office of a foreign corporation with total assets of P500,000 or more; regional operating headquarters of multinational companies with assigned capital of P50,000 or more; and regional headquarters of multinational companies with total assets of P50,000 or more.

For a CPA to issue an unqualified opinion for entities that will require AFS, the financial statements should be in compliance with the Philippine Financial Reporting Standards for Small and Medium Enterprises (PFRS for SMEs). Since the proposed framework for Micro Enterprises are yet to be released, Micro Enterprises must also adhere to the PFRS for SMEs in preparing their respective financial statements.

An audit/examination of the financial statements submitted by the MSEs would entail auditors to spend time and resources to ensure that the financial statements taken as a whole would be in compliance with PFRS for SMEs. Such execution of the audit of the CPA would be costly to business that are earning at least P600,000 in gross receipts per annum. But in an event that the MSEs fails to have its books audited by a CPA, the BIR may fine the MSEs starting from P3,000 to P25,000 (depending on the gross receipts per year). The SEC may also fine MSEs in an amount that ranges from P10,000 to P30,000.

With these rules, it seems that majority, if not all, the MSEs would be required to submit AFS to both BIR and SEC. Between the two regulatory bodies, the BIR would have a more broader reach for MSEs since these are individual businesses that

are subject to the BIR jurisdiction.

Thus, any update on the tax scales should include updates on the reporting requirements of MSEs that will ensure that those businesses may not have any difficulties in complying with current reporting requirements of the BIR. Such measures as increasing the minimum gross receipts for businesses that would be required to have their books be audited by a CPA would be a great relief to all MSEs. Not only are we rationalizing the submission of reporting requirements for MSEs, but we are also protecting the quality of audit work that the CPA should conduct (just imagine how much time the auditor would need to ensure to finish the audit of FS for MSEs). If legislators and the government officials really care for the welfare of the country, they should include this measure that will relieve the MSEs in an update or revision of the tax laws or measures. The MSEs contribute a lot of jobs and could provide enough tax to the coffers of the government provided that tax measures and compliance would be streamlined and made easy for them to follow.

If we don’t act now, we may lose the growth of these MSEs in our country.

Marco Fernando L. Ng is currently the Managing Partner of M. Ng & T. Lopez partnership firm. He specializes in fraud investigation, dispute and assurance services, handling corporate accounts and publicly listed companies.

This column accepts contributions from accountants, especially articles that are of interest to the accountancy profession, in particular, and to the business community, in general. These can be e-mailed to boa.secretariat.@gmail.com

Wells Fargo opened a couple million fake accounts

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By Matt Levine | Bloomberg View

wo basic principles of management, and regulation, and life, are: You get what you measure.

The thing that you measure will get gamed. Really that’s just one principle: You get what you measure, but only exactly what you measure. There’s no guarantee that you’ll get the more general good thing that you thought you were approximately measuring. If you want hard workers and measure hours worked, you’ll get a lot of workers surfing the Internet until midnight. If you want low banking bonuses and measure bonus-to-base-salary ratios, you’ll get high base salaries. Measurement is sort of an evil genie: It grants your wishes, but it takes them just a bit too literally.

Anyway, Wells Fargo on Thursday was fined $185 million by various regulators for opening customer accounts without the customers’ permission, and that is bad, but there is also something almost heroic about it. There’s a standard story in most bank scandals, in which small groups of highly paid traders gleefully and ungrammatically conspire to rip-off customers and make a lot of money for themselves and their bank. This isn’t that.

This looks more like a vast uprising of low-paid and ill-treated Wells Fargo employees against their bosses. The Consumer Financial Protection Bureau (CFPB), which fined Wells Fargo $100 million, reports that about 5,300 employees have been fired for signing customers up for fake accounts since 2011. Five thousand three hundred employees! You’d have a tough time organizing 5,300 people into a conspiracy, which makes me think that this was less a conspiracy and more a spontaneous revolt. The Los Angeles City Attorney, which got $50 million (the Office of the Comptroller of the Currency got the other $35 million), explained the employees’ grievances in a complaint last year: Wells Fargo has strict quotas regulating the number of daily “solutions” that its bankers must reach; these “solutions” include the opening of all new banking and credit-card accounts. Managers constantly hound, berate, demean and threaten employees to meet these unreachable quotas. Managers often tell employees to do whatever it takes to reach their quotas. Employees who do not reach their quotas are often required to work hours beyond their typical work schedule without being compensated for that extra work time, and/or are threatened with termination.

The quotas imposed by Wells Fargo on its employees are often not attainable because there simply are not enough customers who enter a

branch on a daily basis for employees to meet their quotas through traditional means.

So they resorted to nontraditional means. Like: In the practice known at Wells Fargo as “pinning,” a Wells Fargo banker obtains a debit-card number, and personally sets the PIN, often to 0000, without customer authorization. “Pinning” permits a banker to enroll a customer in online banking, for which the banker would receive a solution (sales credit). To bypass computer prompts requiring customer contact information, bankers impersonate the customer online, and input false generic e-mail addresses, such as 1234@wellsfargo.com, noname@ wellsfargo.com, or none@wellsfargo.com to ensure that the transaction is completed, and that the customer remains unaware of the unauthorized activity.

Is it not weird that all the fake email addresses were Wells Fargo addresses? I mean “noname” is obviously a weird e-mail address, but maybe the customer was Norbert O’Name.

But surely all the “@wellsfargo.com” accounts were a tip-off that the requests were coming from inside the building.

Anyway, it’s all pretty much as dumb as that, but on a scale that is magnificently, hilariously dumb. From the CFPB’s consent order: Respondent’s analysis concluded that its employees opened 1,534,280 deposit accounts that may not have been authorized and that may have been funded through simulated funding, or transferring funds from consumers’ existing accounts without their knowledge or consent. That analysis determined that roughly 85,000 of those accounts incurred about $2 million in fees, which Respondent is in the process of refunding.

And: Respondent’s analysis concluded that its employees submitted applications for 565,443 credit-card accounts

that may not have been authorized by using consumers’ information without their knowledge or consent. That analysis determined that roughly 14,000 of those accounts incurred $403,145 in fees, which Respondent is in the process of refunding.

So that’s about 2.1 million fake deposit and credit-card accounts, of which about 100,000—fewer than 5 percent— brought in any fee income to Wells Fargo. The total fee income was $2.4 million, or about $1.14 per fake account. And that overstates the profitability: Wells Fargo also enrolled people for debit cards and online banking, but the CFPB doesn’t bother to count those incidents, or suggest that any of them led to any fees. W hich makes sense: You’d expect online banking and debit cards to be free, if you never use them or even know about them. Meanwhile, all this dumb stuff seems to have occupied huge amounts of employee time that could have been spent on more productive activities. If you divide the $2.4 million among the 5,300 employees fired for setting up fake accounts, you get about $450 per employee. Presumably it cost Wells Fargo way more than that just to replace them.

In the abstract, you can see why Wells Fargo would emphasize crossselling of multiple “solutions” to customers. It is a good sales practice; it both indicates and encourages customer loyalty. If your customers have a checking account, and a savings account, and a credit card and online banking, all in one place, then they’ll probably use each of those products more than if they had only one. And when they want a new, lucrative product—a mortgage, say, or investment advice—they’re more likely to turn to the bank where they keep the rest of their financial life.

But obviously no one in senior management wanted this. Signing customers up for online banking without telling them about it doesn’t help Wells Fargo at all. No one feels extra loyalty because they have a banking product that they don’t use or know about. Even signing them up for a credit card without telling them about it generally doesn’t help Wells Fargo, because people don’t use credit cards that they don’t know about.

Cards with an annual fee are a different story—at least you can charge them the fee!—but it seems like customers weren’t signed up for many of those. This isn’t a case of management pushing for something profitable and getting what they asked for, albeit in

a regrettable and illegal way. This is a case of management pushing for something profitable, but difficult, and the workers pushing back with something worthless, but easy.

Not that the workers were happy: These tactics seem to have been less a fun way to put one over on the bosses, and more a desperate attempt to stop the pain. Some of them still sound pretty traumatized by all the berating: “When I worked at Wells Fargo, I faced the threat of being fired if I didn’t meet their unreasonable sales quotes every day, and it’s high time that Wells Fargo pays for preying on consumers’ financial livelihoods,” Khalid Taha, a former employee, said in a statement.

And, of course, the customers were unhappy. Actually, it seems like a majority of them were unharmed and oblivious, but that’s a majority of a very large number. Thousands were charged fees, or had their credit damaged, or were generally creeped out by, you know, strangers using their personal information to open bank accounts on the Internet. Even ignoring all the eventual fines, no one was made better off by this system. Wells Fargo’s customers were harmed, its employees were miserable, and it didn’t even really make any money doing it.

Eventually we will all stop reading and writing articles about Why No Senior Executives at Big Banks Went to Prison for the Financial Crisis, but that time isn’t quite yet. There are basically two views about the answer. One is that senior bankers knowingly countenanced fraud, but were good at covering it up, and prosecutors couldn’t quite find the smoking gun. The other is that fraud is sometimes an emergent property of complex institutions, and that there can be widespread misbehavior at a bank without senior management approving it, or knowing about it, or wanting it. This case is, I think, useful evidence for the latter view.

“Wells Fargo knew, or in the exercise of reasonable care should have known, that its employees open unauthorized accounts,” said the L A City Attorney last year, but it’s hard to believe that any actual human in senior management wanted that to happen.

They wanted employees to open lots of real accounts, and designed a system that they hoped would encourage that. But they designed it badly, and ended up instead encouraging employees to open a lot of fake accounts.

That’s not what anyone wanted, but it happened anyway.

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www.businessmirror.com.ph

DTI won’t tweak CARS rules to accommodate participants

T

he Comprehensive Automotive Resurgence Strategy (CARS) Program will be implemented as planned and the Department of Trade and Industry (DTI) won’t change the rules just to entice new players to participate in the manufacturing stimulus program.

“We won’t change the rules in the middle of the game. We’re not considering setting different requirements for the third slot.

There are others who can vie for it,” Trade Secretary Ramon M. Lopez told the BusinessMirror.

The DTI is spearheading CARS, the automotive manufacturingstimulus program that comes with P27 billion worth of the government support. The program requires the manufacture of three models of a four-wheeled vehicle with a budget of P9 billion each.

Toyota Motors Philippines Corp. and Mitsubishi Motors Philippines Corp. have been duly registered as participating carmakers (PCM) in the CARS Program.

To y o t a a n d M i t s u b i s h i were deemed as the two eligible

₧27B The amount of government support to the Comprehensive Automotive Resurgence Strategy Program, which is being spearheaded by the Department of Trade and Industry

candidates to the CARS, considering the program’s “high standards,” including the required 200,000 units to be produced in six years under the program.

Isuzu Philippines and other carmakers have expressed interest for the third Comprehensive Automotive Resurgence Strategy slot, but they were appealing for “flexibilities,” which means changing the rules.

With the ambitious requirements, other carmakers were discouraged from joining the program, because they have not reached the economies of scale needed to meet the production hurdle.

Former DTI chiefs Adrian S. Cristobal Jr. and Gregory L. Domingo earlier said they were only

entertaining “serious” players that could meet the program’s standards.

As such, the question of a third model still hangs.

Volkswagen, one of the world’s largest automakers, also expressed interest in investing in the Philippines last year to join CARS. But it was discouraged by the stiff

production volume requirements.

As Volkswagen has no local assembly plant in the country and will be starting production from the ground, company officials said the production requirement is impossible to meet, especially for a new entrant. The German car firm withdrew its bid last year,

and along with it, $200 million in potential investments.

In a separate text message, Trade Undersecretary Ceferino S. Rodolfo said Toyota and Mitsubishi have not stepped up to apply for the third slot, and there has been no other carmaker that has submitted an application. Catherine N. Pillas

Duterte, other SE Asian leaders adopt master plan on connectivity

By Catherine N. Pillas @c_pillas29

T

he Philippines and other Asean member-countries have agreed to adopt measures that will allow them to achieve greater economic integration, according to the chief of the Department of Trade and Industry (DTI).

Notwithstanding the diplomatic stir created by President Duterte’s comments, the 28th and 29th Asean Summits had allowed the Philippines to take part in efforts to achieve Asean’s economic integration goals. “[Leaders] signed agreements on furthering connectivity for lower cost movement of goods and people, on disaster management, and support to completing the Regional Comprehensive Economic Partnership [RCEP],” DTI chief Ramon M. Lopez said on Friday.

Lopez was referring to the Master Plan on Asean Connectivity 2025 (MPAC 2025), which was said to be adopted by the Asean leaders according to the Vientiane Declaration on Promoting Infrastructure Development Cooperation in East Asia statement, which was issued after the summits.

The MPAC 2025 focuses on five

Film festival. . .

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John F. Kennedy’s assassination.

A jury led by British director Sam Mendes chose winners from among 20 movies competing at the 73rd annual festival.

The world’s oldest film festival wrapped up on Saturday after 11 days that brought stars, including Natalie Portman, Chris Pratt and Denzel Washington, to the

$110B The amount needed by Asean for infrastructure development yearly

key areas that will guide Asean’s infrastructure development: sustainable infrastructure, digital innovation, seamless logistics, regulatory excellence and people mobility.

According to another Asean statement, the region needs some $110 billion for infrastructure development yearly to support their growth.

Connectivity, as defined by the previous Asean Connectivity Master Plan, refers to physical, institutional and people-to-people linkages.

On the RCEP, a similar statement from Asean leaders were issued, which stated that the 10-member bloc is eyeing a “swift conclusion” to negotiations and, further, call upon its ministers to“intensify negotiations”.

The RCEP is a proposed expansive free-trade agreement (FTA) between the 10 Asean memberstates and six other countries, with canal-crossed Italian city.

The complete list of winners: —Golden Lion: Lav Diaz, The Woman Who Left; Philippines.

—Silver Lion director (tie): Andre Konchalovsky, Paradise; Russia, Germany.

—Silver Lion director (tie): Amat Escalante, The Untamed; Mexico.

—Jury grand prize: Nocturnal Animals, Tom Ford; US —Special jury prize: The Bad

which it already has an FTA—Australia, China, India, Japan, Republic of Korea and New Zealand.

The combined output of the 16 participating countries amounted to $22.4 trillion, or 30.6 percent of world output in 2015.

The total trade among these same countries amounted to $11.9 trillion in 2015, while total foreign direct investment inflows to these countries reached $329.6 billion.

Some points of resistance with the RCEP include, among other issues, a proposed three-tier system of tariff relaxation and disparity in the scope of movement of workers.

According to earlier reports, India put forward the three-tier system to cut or eliminate taxes on goods—essentially offering differentiated duty elimination coverage for Asean countries, with Japan and South Korea, and with those it does not have any FTAs with, such as China, Australia and New Zealand.

The next round of negotiations is slated for December, with the view to wrap up the agreement by mid-2017.

For the Philippines part, Lopez said the hurdles may be ironed out sooner. “I think we can do it, and we’ll certainly try [to meet the deadline],” he said.

Batch, Ana Lily Amirpour; US — A c tor : Osc a r M a r t i nez , T h e D i s t in g u i s h e d C it i z e n ; Argentina, Spain.

—Actress: Emma Stone, La La Land; US —Screenplay: Noah Oppenheim, Jackie; US —Marcello Mastroianni Price for Young Performer: Paula Beer, Frantz; France.

—Luigi de Laurentiis Lion of the Future: The Last of Us, Ala Eddine Slim; Tunisia. AP