BusinessMirror September 17, 2018

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Monday, September 17, 2018 Vol. 13 No. 338

Analysts split on impact of delaying tax reforms

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By Cai U. Ordinario

@cuo_bm

F the Tax Reform for Acceleration and Inclusion 2 (TRAIN 2) will be delayed, the government may be forced to increase its borrowings to finance its infrastructure needs, according to local economists.

This, after a number of senators expressed their misgivings about meeting the pre-Christmas timeline to approve what is known officially as Package 2 of the Comprehensive Tax Reform

Program, with the reduction of corporate-income tax and the rationalization of tax incentives as key features.

The Senate Ways and Means Committee will only start deliber-

ating on the bill on September 25, two weeks before the filing of certificates of candidacy for the May 2019 polls.

The senators interviewed by the

The primary effect would be to miss government revenue target and funds for the infrastructure program. This may necessitate government borrowing to meet infrastructure funding requirements, which can crowd out the private sector for funds and exert further upward pressure on interest rates.”—Terosa

See “Tax reforms,” A2

BSP okays currency risk protection scheme rules @BcuaresmaBM

A

WEEK after declaring the reactivation of the Currency Rate Risk Protection Program, the Bangko Sentral ng Pilipinas (BSP) confirmed over the weekend it had approved the enhanced CRPP guidelines, making it more effective at easing the demand pressures in the foreignexchange market.

The Central Bank last week announced that it is reopening the CRPP after the peso broke to trade into 12-year lows during the week.

On Wednesday it broke through the 54:$1 territory, closing at 54.13.

The last time it breached the 54 level was on December 2, 2005.

See “Currency,” A2

RESIDENTS of Barangay Bulusan in Calumpit, Bulacan, use boats on Sunday (September 16) to move around after rains spawned by Typhoon Ompong caused waist-deep floods in their area. NONIE REYES

PESO EXCHANGE RATES n US 54.0040

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P25.00 nationwide | 4 sections 24 pages | 7 DAYS A WEEK

Divestment of LGU property via unsolicited proposals Alberto C. Agra

ead

L AlbertoPPP C. Agra

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T can be done. Local government units (LGUs) can dispose of their assets in a public-private partnership arrangement, either as a distinct or component of another PPP modality, through unsolicited proposals (UPs). The rule under Circular No. 89-296 issued by the Commission on Audit (COA Circular) on January 27, 1989, requiring a public auction is not the only rule.

Continued on A11

Cagayan’s agriculture ‘totally devastated’; infra damage at ₧40M

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By Bianca Cuaresma

2016 EJAP JOURNALISM AWARDS

YPHOON Ompong, which exited the Philippines after leaving behind a trail of destruction—and killing at least 18 people—wrought billions in farm damage mostly in Northern Luzon, but Transportation Secretary Arthur P. Tugade said damage to transportation infrastructure appeared to be much less, initially at P40 million, for Cagayan.

Officials have begun assessing the overall effects of the typhoon, the strongest to hit the country this year.

Cagayan Gov. Manuel Mamba reported that Ompong, which hit land early Saturday morning, almost wiped out the province’s agriculture sector, with the damage initially placed at P8 billion, as estimated by local officials in affected towns and municipalities.

The governor said that, while the estimate still has to undergo official revalidation, it was obvi-

“While we have a zero casualty, our agriculture was totally devastated.

From the northern to the southern part of the province, Ompong really cut across Cagayan.’”

— Gov. Manuel Mamba

ous that Cagayan’s agriculture was flattened by Ompong’s heavy rains and howling winds, a devastation nowhere near the level of Typhoon Lawin, which also hit the province in 2015 and to which Ompong was earlier compared.

“While we have a zero casualty, our agriculture was totally devastated. From the northern to the southern part of the province, Ompong really cut across Cagayan,” Mamba said, hours after the typhoon left the country’s area of responsibility on Saturday night.

n JAPAN 0.4825 n UK 70.7938 n HK 6.8814 n CHINA 7.8996 n SINGAPORE 39.4190 n AUSTRALIA 38.8397 n EU 63.1415 n SAUDI ARABIA 14.3988

See “Damage,” A2

Source: BSP (14 September 2018 )

News

BusinessMirror

A2 Monday, September 17, 2018

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SSS leads backers of Package 2 of tax reforms

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By Rea Cu

@ReaCuBM

HE Social Security System (SSS) along with several other government agencies have expressed their support for the proposed reforms in the corporate tax system, saying it would attract investments and create more jobs in the private sector, especially among micro, small and medium enterprises (MSMEs).

At a hearing of the House Committee on Ways and Means on the proposed corporate income tax (CIT) reform package or Package Two of the Comprehensive Tax Reform Program (CTRP), SSS President and CEO Emmanuel F. Dooc said lowering the CIT rate spells additional disposable income for employers, which, in turn, would lead to business expansions and more jobs. In turn, this translates to more SSS members.

“Right now, our current count is...about close to 5 million voluntary members, and another close to 5 million self-employed members.

By giving incentives to the small businesses, we hope to see more robust, more vibrant business activities in this sector,” Dooc said.

The second package of the CTRP—which includes lowering the CIT and modernizing investment incentives—has been touted as bearing the potential to attract more investments in the country and spur more business activities for MSMEs. “I hope that this will be passed into law, so that the SSS can pro-

Tax reforms. . .

Continued from A1

BusinessMirror last Thursday cited three reasons for their doubts about the Senate’s being able to fulfill the wish of President Duterte to approve the measure by December: first, time constraint, considering lawmakers will be tackling the 2019 budget and several of them will be distracted by the October filings for COC. Second, some of Package 2’s provisions are complicated, especially on the tax incentives, which business groups fear could undermine the top export earners. The third factor is credibility. Sens. Francis G. Escudero and Emmanuel Joel J. Villanueva said the same people from the Cabinet economic cluster who sold TRAIN to the people are pitching TRAIN 2. Yet questions about how far the original TRAIN is fueling the high inflation rate remain unresolved.

Lower revenue

UNIVERSITY of Asia and the Pacific (UA&P) School of the Economics Dean Cid Terosa told BusinessMirror at the weekend that the delay in TRAIN 2 will lead to lower government revenues.

“The primary effect would be to miss government revenue target and funds for the infrastructure program. This may necessitate government borrowing to meet infrastructure funding requirements, which can crowd out the private sector for funds and exert further upward pressure on interest rates,” Terosa said.

NOTICE OF DEATH

vide better, universal and affordable social security benefits to our working class,” he added.

The House of Representatives approved on third and final reading on September 10 its version of the corporate tax-reform bill dubbed the Tax Reform for Attracting Better And High-quality Opportunities (Trabaho) Act. The Department of Health (DOH) also expressed optimism on the second package, pointing out that it “will create new jobs, bring development to resource-constrained areas, and attract investments to research and development, new technologies and even medical tourism.”

The National Council of Disability Affairs said it “generally supports the measure,” and expressed willingness to work with the Department of Finance (DOF) in providing safety nets to ensure that the welfare of marginalized sectors like persons with disabilities remain protected once this taxreform package is passed into law.

Filtering the tax perks

EARLIER,theDOFsaidithasidentified If, however, the government is unwilling to increase its borrowings, Terosa said, the government could temporarily halt its infrastructure program to keep up with its funds. This, however, will be disadvantageous to the Philippine economy in the long run and will make it more difficult to attain its development goals.

Credibility, not revenue

ACTION for Economic Reform (AER) Coordinator Filomeno Sta. Ana III said he was not that worried that the delay in the passage of TRAIN 2 or the Tax Reform for Attracting Better and High-Quality Opportunities (Trabaho) bill—as it is called in the version passed on third and final reading by the House of Representatives on September 10—will affect government revenues, since it is “revenue neutral.”

Nonetheless, Sta. Ana said the delay could still cost the economy in the long run, especially if investors will view this as a weakness of the President in instituting reforms.

“Although revenue-neutral, nonpassage of Trabaho can hurt the economy in the sense that failure to pass it indicates Duterte is weak in pursuing reforms. [It] will embolden vested interests to stall reforms in general. [It] will make investors wary of Duterte’s commitment to hard reforms,” Sta. Ana said.

Beneficial to households

MEANWHILE, other economists like Ateneo de Manila University Social Sciences Dean Fernando T. Aldaba believe delaying TRAIN 2 would be beneficial to households.

Aldaba said it may be better to delay the passage of TRAIN 2 until inflation normalizes so as to reduce any uncertainties that could be created by a new tax law. However, he said that if the economic team can assure the public that the benefits of the TRAIN 2 would lead to increased foreign direct investments, then the bill should be immediately passed into law.

“Wouldn’t it be better to delay it until inflation nor-

NOEL SIXTO VERGARA RODRIGUEZ Born 06 August 1962 Died 16 August 2018

43%

The percentage of firms registered with IPAs deemed by a DOF study as worthy of being granted incentives; 57 percent are receiving incentives that are already unnecessary or redundant a total of 645 registered enterprises that continue to receive tax incentives even after 15 years in the business, proving that investment perks given usually to big or multinational firms—many of them “inherently profitable”—have become redundant and unnecessary.

Finance Undersecretary Karl Kendrick T. Chua said data reported by investment promotion agencies (IPAs) as mandated under the Tax Incentives Management and Transparency Act (Timta) also show that for 2015 alone, the government gave away P86 billion worth of income-tax incentives to firms that paid out a total of P83 billion combined in dividends.

He explained that when the DOF did a cost-benefit analysis of the registered firms in IPAs receiving tax incentives, it came up with three main factors to determine if the perks the firms are getting are necessary or not, or if these are redundant or nonredundant.

These factors are: the length of availment of incentives, to find out whether a firm has been receiving incentives for more than 15 years; profitability, to verify whether the firm is inherently malizes? It will probably just add to the uncertainties in the economy,” Aldaba said. “But if they are able to give more generous incentives [on a] par with Vietnam, then by all means it should be passed immediately.”

‘Untimely’

FOR his part, economists such as Calixto V. Chikiamco believe the passage of the TRAIN 2 into law should be delayed to remove any uncertainties in the economy.

Chikiamco said passing the TRAIN 2 now is “untimely” especially with a widening current account and balance of trade (BOT) deficits, as well as weak exports.

He said TRAIN 2 could also drive away investors, particularly those in Philippine Economic Zone Authority (Peza) locations. These are the same sectors that have been among those complaining the loudest about the impact of the tax incentives’ removal. Delaying passage of the measure, Chikiamco said, “[will have] no effect [on the economy]. In fact, [it] removes uncertainty. Any new bill has to be refiled next Congress,” Chikiamco said.

Data released last week showed the country’s BOT in goods deficit widened to $22.49 billion in the January-to-July period this year.

This is nearly twice the $13.055billion trade deficit posted in the same period of last year.

The Philippine Statistics Authority (PSA) told the BusinessMirror that the highest cumulative deficit was in 2016 at $15.37 billion. Prior to that, the trade deficit was below $3 billion such as in 2010 at $2.8 billion.

The largest deficit this year was recorded in May at $3.69 billion followed by July at $3.55 billion.

PSA data showed that the lowest at $2.53 billion in March.

The PSA said the total exports receipt recorded by the country’s top 10 market destinations for July 2018 reached $4.8 billion, or an 82percent share of the total exports.

The country’s import bill from the top 10 countries, the data showed, amounted to $7.16 billion, or a share of 76.1 percent of the total imports in July 2018.

profitable or not, and whether it is already earning three times the median of the industry it belongs to; and the motivation to invest, to find out why they chose to relocate here.

Chua said the DOF study showed that 43 percent of the firms registered with IPAs are worthy of being granted incentives, while the remaining 57 percent are receiving incentives that are already unnecessary or redundant.

The government lost P178.56 billion in potential revenues in 2016 alone as a result of tax incentives given out to only 3,102 firms registered with various IPAs, according to the DOF. Based on data from the Bureaus of Internal Revenue and of Customs the government had forgone P74.53 billion in revenues from income-tax holidays, P46.66 billion from special income-tax rates and P57.38 billion in customs duties. The incentives from valueadded tax (VAT) and local taxes have yet to be computed.

Data collated by the DOF for 2016 do not yet include forgone revenues from the VAT exemptions on imports and local VAT that enterprises registered with IPAs also get to enjoy.

It also does not yet include the foregone local taxes and leakages that may arise as a result of abuse of transfer pricing.

Foregone revenues from investment incentives, excluding VAT and local tax privileges, grew 71.03 percent in 2016 from the previous year’s figure of P104.40 billion and were 52.52 percent higher from 2015 projections. These revenue losses are expected to increase to P196.02 billion, or by 9.77 percent in 2017.

Currency. . .

Continued from A1

The CRPP was first introduced as an aid to excessive foreign exchange swings during the 1997 Asian financial crisis.

In particular, it is a BSP-offered hedging facility through universal/commercial banks for clients who are seeking to hedge their borrowings denominated in foreign currency.

The CRPP operates through a nondeliverable peso-dollar forward (NDF) contract between the BSP and a universal/commercial bank. In an NDF contract, only the net difference between the contracted forward rate and the spot rate shall be settled in pesos upon maturity of the contract, thereby giving a layer of assurance for companies against fluctations in the foreign exchange market.

Under the enhanced guidelines, obligations eligible under the CRPP facility are the unhedged foreign currency obligations in amounts of not less than $50,000 that are current and outstanding as of the date of application.

These include the following: (a) BSPreported/registered short-term (ST ) trade-related loans from eligible banks; (b) medium or long-term trade-related FCDU (foreign currency deposit unit) or RBU (regular banking unit) loans with payments maturing within 90 days as of date of application; (c) ST trade-related borrowings of oil companies from offshore banking units (OBUs); and (d) US dollar trust receipts, among others.

The maximum tenor of the CRPP contract is 90 days with option to reavail.

The BSP also said it will provide various regulatory reliefs to facilitate the transactions under the CRPP facility.

“Exposures under the CRPP facility shall not be subject to NDF position limits. Moreover, reduced market risk capital charges shall be applied for net open positions for NDFs under this facility,” the BSP said. “Universal banks/commercial banks also do not need additional derivatives authority since transactions under the CRPP are considered generally authorized derivatives activities,” it added.

The peso ended the previous week’s trade at 53.97 to a dollar, slightly recovering from the 54.07 to a dollar the previous day. In September 2017 the peso averaged trade at 51.009 to a dollar, BSP data showed.

Post-Ompong: Army chief told to head NFA Continued from A12

Price freeze

Release funds

However, Tolentino said they are still awaiting moves of various local government units to declare their respective state of calamity pursuant to the Local Government Code.

“If state of calamity is declared in Cagayan and in Isabela—and the other regions comprising CAR and Region 1, the DTI [Department of Trade and Industry] will kick in the price freeze process,” he said.

The President added he made the “right decision” when he asked some of his Cabinet members to go to provinces along the path of typhoon.

During the situation briefing, Trade Secretary Ramon M. Lopez said there is enough supply of NFA rice and that the food items are being sold within the suggested retail price.

Lopez also informed the President of NFA’s plan to issue a regulation to all grains retailers to sell both regular and well-milled rice after they found out that some retailers only sell premium rice. Otherwise, he said, their licenses to sell will be canceled.

The Department of Trade and Industry will not renew the business permits of the violators of the regulation.

Agriculture Secretary Emmanuel F. Piñol said prices of rice have already gone down and are stabilizing because it’s the harvest season.

He also said the department is now ready to airlift vegetables, fruits and chicken if needed to typhoon-hit areas.

SEN. Grace Poe prodded Duterte administration officials over the weekend to fast-track the release of much-needed funding for Typhoon Ompong recovery and assistance in hard-hit areas, to be drawn from the P19.6-billion calamity fund in the 2018 national budget.

She also suggested that Palace officials could also tap available funding assistance from the Department of Agriculture, which, she said, has P1 billion in Quick Response Fund (QRF) and P500 million from the National Irrigation Administration that Poe said could be allocated for “replanting assistance and repair of irrigation.”

Apart from that, Poe proposed that the Department of Public Works and Highways tap its P1-billion available fund for immediate repair of damaged roads and bridges.

As for affected schoolbuildings.

Poe proposed the Department of Education can also draw funds from DepEd’s P2-billion QRF. She said other QRF recipients are DSWD-OSEC (P1.25 billion), DNDOCD (P500 million), DND-AFP (P750 million), DOH (P500 million) and NEA (P100 million).

The Duterte administration, she said, should “rush calamity funds to typhoon-damaged Cagayan Valley as the region, which ranks first in corn production and second in palay, is the cereal bowl that feeds the nation.”

Damage. . .

Continued from A1

Farm damage was especially huge in Baggao, where the typhoon made landfall. Buildings and houses were also damaged.

Mamba said that around the province, houses and buildings, including schools, had their rooftops torn off by the extremely powerful winds combined with Ompong’s strong rains that went on for 16 continuous hours.

The province is without power and would take at least one week to have it at least partially restored.

It is tending to the needs of more than 11, 000 families or at least 46,000 people in evacuation centers, though many have begun returning to their damaged homes. “We will declare a state of calamity,” Mamba said.

Ilocos Norte

IN Ilocos Norte, Gov. Imee Marcos said agriculture was also severely hit by the typhoon, which also damaged houses and buildings.

“We will have a complete picture as we barely began our province-wide assessment,” she said, adding roads and highways were also being cleared of toppled trees with the help of soldiers.

At least 11,000 individuals were evacuated due to the typhoon.

In Paoay town, a woman died while in the evacuation center after suffering a heart attack.

Ilocos Norte, like other northern provinces— Isabela, Ilocos Sur, Abra, Mountain Province and Quirino—was still without power.

In Baguio City, Benguet, Kalinga and Mountain Province, at least 17 people were reported to have been killed due to landslides, but Edward Posadas, spokesman of the National Disaster Risk Reduction and Management Council, said they were still validating the casualties.

According to reports from local disaster officials in the area, six died in a landslide in Baguio City; four in two landslides in Itogon and La Trinidad, both in Benguet; one in Tabuk, Kalinga ,and six in Mountain Province.

P40-M transport damage

TRANSPORT infrastructure damage in Cagayan due to the onslaught of Typhoon Ompong was estimated to have reached as much as P40 million, according to DOTr Secretary Tugade, who noted that rehabilitation works are under way.

Tugade said the total amount of damage — estimated between P35 million and P40 million— covers mostly the Tuguegarao Airport. During his inspection of the airport, Tugade found out that the baggage carousel area and other offices of the Civil Aviation Authority of the Philippines (Caap) were badly damaged by strong winds. He noted it will take “until Tuesday for the baggage x-ray scanner to be repaired or replaced.”

With Butch Fernandez

Tugade said the government plans to utilize the Lal-lo Airport and Cauayan Airport should repairs of the Tuguegarao Airport take longer than expected.

Premium point-to-point buses will be deployed in case this happens, he said.

Seaports spared

IN the case of seaports, the Philippine Ports Authority (PPA) reported that all gateways in the Northern Luzon area, such as Currimao, Aparri, Batanes, Salomage and Sual, were spared from damage and are now operational, after the nosail rule preventively imposed before Ompong was lifted.

Land transportation also immediately resumed, leaving all bus terminals with a few to none stranded passengers. Tugade was tasked

by President Duterte to oversee the planning, preparation and rehabilitation in Cagayan, the Cabinet official’s hometown.

Energy needs

ENERGY officials and power companies are also at work in areas hit by Typhoon Ompong.

Based on the Sunday noon report of the Department of Energy-led Task Force on Energy Resiliency (TFER), the National Grid Corp. of the Philippines (NGCP) said it restored 78 percent of affected transmission lines in Regions 1, 2 and CAR. There is ongoing restoration for the remaining 32 percent which services Abra, Apayao, Cagayan, Kalinga, Mountain Province and parts of Isabela.

The National Electrification Administration said a total of 23 electric cooperatives experienced line tripping and damaged distribution facilities across Luzon. Initial estimated cost of damage to electric cooperatives alone was at P100,600,000.

The National Power Corp. (NPC)-Small Power Utilities Group (SPUG) reported that the diesel power plant (DPP) in Sabtang Island in Batanes incurred no damage and was restored at 8:39 a.m. Sunday after line clearing of the Batanes Electric Cooperative (Batanelco).

NPC-SPUG also reported that there are no operations in the diesel power plants in these areas due to assessment, clearing and restoration activities: Cagayan and Apayao area (Calayan, Minabel and Balatubat, and Kabugao); Isabela and Aurora area (Palanan, Maconacon and Casiguran).

NPC’s dam update indicates that water-spilling operations were still ongoing at the Ambuklao Dam with water level at 751.25 meters above sea level (masl) against normal high water level (NHWL) of 752 masl; the Binga Dam with 574.83 masl versus NHWL of 575 masl; the Magat dam with 186.5 masl versus NHWL of 193 masl; the Maris dam with 103.22 masl versus NHWL of 107.75 masl; and the San Roque dam with 287.15 masl versus NHWL of 280 masl. Meanwhile, the Angat water reservoir has not opened its spill gates. Rene Acosta, Lenie Lectura and Lorenz Marasigan

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Editor: Vittorio V. Vitug • Monday, September 17, 2018 A3

Govt rejects foreign nun’s request for visa extension

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By Joel R. San Juan

@jrsanjuan1573

HE Bureau of Immigration (BI) announced on Sunday it denied the request of 72-yearold Australian missionary Sister Patricia Fox to extend her missionary visa in light of the deportation order the BI earlier issued against her.

Justice Secretary Menardo I. Guevarra immediately defended the decision of the BI, saying it was consistent with the agency’s deportation order against Fox, which the

latter has appealed before the Department of Justice (DOJ).

“The denial of Sister Fox’s request for extension of her missionary visa is consistent with the BI’s order of

deportation, which is on appeal at the DOJ,” Guevarra said. “I understand, though, that Sister Fox is given an opportunity to apply instead for a temporary visitor’s visa.”

“The BI already saw that Sister Fox violated the conditions of her stay and is considered undesirable, hence a deportation order was previously issued against her,” BI Spokesman Dana Krizia M. Sandoval said.

“Our legal team saw that approving the extension of her missionary visa will be inconsistent with the findings cited in her deportation order.”

The Superior of the Religieuse De Notre Dame De Sion Inc. filed the petition for the extension of Fox’s visa.

In its two-page order, the BI said Fox had already spent 27 years in the country as a missionary. How-

ever, under the memorandum of agreement between the BI and the Catholic Bishops’ Conference of the Philippines, foreign missionaries can stay in the country for only 10 years.

“She is required to apply for the downgrading of her visa within 15 days from receipt of the denial order,” Sandoval said.

Sandoval explained that downgrading will revert her status to a temporary visitor’s visa, with a 59day validity, starting from the date of the expiry of her missionary visa.

Earlier, Fox filed a petition before the DOJ seeking to reverse the final decision issued by the BI ordering her deportation for violating the terms and conditions of the missionary visa that the agency issued to her and including her name in the black-

list. Fox, through National Union of People’s Lawyers Secretary-General Edre U. Olalia, insisted the 72-yearold missionary did not commit illegal acts that would justify her deportation from the country.

Fox is being accused of violating the terms and conditions of her visa when she participated in rallies, press conferences and factfinding missions.

The BI has established that Fox violated “the limitations and conditions of Commonwealth Act 613, Section 9 [g] missionary visa and undesirable under Article 2711, Section 69 and order her deportation to Australia, subject to her submission of all appropriate clearance and the inclusion of her name in the BI’s blacklist, thus barring her re-

entry into the country.” The bureau cited as basis for its order several photographs showing that she engaged in several partisan political activities sometime in 2013, 2016, 2017 and 2018—including those where she reportedly demanded for the release of political prisoners, joined the rallies for land distribution in Hacienda Luisita and a workers’ rally in Davao City.

The agency also considered statements made by President Duterte that the Australian nun is an undesirable alien following her participation in protest rallies.

Fox, on the other hand, insisted that the activities she joined or supported were neither political not partisan but were part of her apostolate and missionary work.

A4 Monday, September 17, 2018 • Editor: Vittorio V. Vitug

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Govt eyes lower MFN rates for farm goods

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By Cai U. Ordinario

@cuo_bm

HE National Economic and Development Authority (Neda) clarified that the government is considering the possibility of reducing the most favored nation (MFN) tariff rates for some agricultural commodities traded among members of the World Trade Organization (WTO).

The clarification came on the heels of the Neda’s statement on Thursday that the Economic Development Cluster (EDC) is looking at “legislation for the tariffication similar to that of rice for sugar, fish, meat and vegetables.”

Neda Assistant Secretary Mercedita Sombilla told the BusinessMirror over the weekend that lowering tariffs on commodities like sugar, fish, meat and vegetables is being considered. However, the EDC has not decided on the matter.

“There are discussions to lower it to encourage the free flow of those products [which] will lower prices.

These are just possibilities but I don’t think we will do it. Yes, these are being considered,” Sombilla said.

To date, only rice has a quantitative restriction. Manila retained the quota on rice and converted the QRs of other agricultural products into tariffs after the Philippines joined the WTO in 1995.

Sombilla also noted that the farm commodities being considered by the EDC have “very low” tariffs. She cited, for instance, the MFN tariff rate for fish imports is only at 3 percent, while those from Asean countries can come in at zero tariffs.

The EDC said on Thursday that it has submitted a draft executive order (EO) that will remove administrative and nontariff barriers on the importation of food items to temper inflation to the office of

the President for implementation starting this month.

Recommended to the President before Tuesday’s Cabinet meeting, the EO will zero in on fish, rice, sugar, meat and vegetables—considering that the rise in prices of these items has been the major contributor to inflation for the past two months.

Fish and seafood, rice and meat, and vegetables accounted for 2.4 percentage points out of the 6.4 percent inflation rate in August.

To address inflation, the Freedom for Debt Coalition (FDC) said in a statement that the government should veer away from “band-aid solutions” and suspend the Tax Reform for Acceleration and Inclusion (TRAIN) 1.

FDC believes the TRAIN 1 is responsible for the nine-year high inflation of 6.4 percent in August.

The increase in inflation cannot be addressed by a cut in tariffs for

imported food items and the tariffication of rice.

“They resort to band-aid measures which have been proven to only exacerbate our vulnerability to supply shocks and exchange-rate fluctuations—leading to a systemic cycle that we can expect to rear its ugly head once more in another decade or so,” FDC President Rene Ofreneo said.

“These counter-inflationary policy directions—such as the urgent passage of the rice tariffication law and an overall cut in tariffs for imported food items—reveal that our economic managers and legislators continue to treat inflation as a shortterm problem with emergency palliatives,” he added.

Earlier, local economists believe more expensive commodities could make it more difficult for the government to meet its target of reducing poverty to 14 percent by 2022, from

the 21.6 percent recorded in 2015.

University of the Philippines School of Statistics Dean Dennis Mapa said urban and rural poor households, as well as near-poor households, are negatively affected because food inflation rates are high for Metro Manila at an eightmonth average of 6.7 percent and areas outside the National Capital Region with 5.9 percent.

This is consistent with the findings of a 2008 study of Asian Development Bank (ADB) economist Hyun Son, which stated that a 10-percent increase in prices of food could lead to 2.3 million poor Filipinos while the same increase in nonfood prices could lead to an addition of 1.7 million to poverty.

Son also said that if there is a 10-percent increase in rice and fuel, prices will result in an additional 660,000 and 160,000 poor people in the Philippines, respectively.

ADB okays $484.3 million in loans, grants for PHL LAWMAKER PUSHES

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HE Asian Development Bank (ADB) said it has approved a total of $484.3 million in loans and grants for the Philippines as of August this year.

Data provided in the ADB web site showed that the amount covered four Philippine-specific projects, the largest of which is the Expanding Private Participation in Infrastructure Program, Subprogram 2 approved on August 17.

The project will be financed by a $300-million loan from

the ADB’s Ordinary Capital Resources and a $179-million loan from the L’Agence Francaise de Développement, or French Development Agency.

“Subprogram 2 now focuses on consolidating PPP [public-private partnership] reforms to stimulate and facilitate the development of the Philippines’s PPP market and to ensure the earlier reforms are successfully implemented,” the ADB said.

The project, which is not yet considered “active” by the

ADB, aims to strengthen government financial support to PPPs; expand and efficiently implement the pipeline of PPP projects; and strengthen the legal and regulatory frameworks for PPPs. The ADB also approved technical assistance financing worth $2 million each for the Railway Project Implementation Support and Institutional Strengthening and the Philippine National Oil Co. (PNOC) Batangas Liquefied Natural Gas Project.

The $2-million technical assistance financing for the Railway Project Implementation Support and Institutional Strengthening project will be obtained from the Japan Fund for Poverty Reduction, which is administered by the ADB. The project is not yet considered active or ongoing by ADB since it was only approved on August 22.

“The project will support the construction of the 51-kilometer [km] section of a new railway line connecting Metro Manila and the regional center in Clark and the Clark International Airport, located in the Central Luzon region, around 100 kms north of Manila,” the ADB said.

The $2-million technical assistance for the PNOC Batangas, Liquefied Natural Gas Project will come from the ADB’s Technical Assistance Special Fund (TASF).

The project, which intends to develop a liquefied natural gas (LNG) hub (the Project) at San Pascual, Batangas, to increase the energy security of the country, was approved on May 11 and is considered “active” or ongoing by the ADB. The ADB said the project will act as a hub and will have the ability to receive imported LNG, to break larger LNG cargoes into smaller cargoes for supply to neighboring islands, regasify LNG and generate electricity from the regasified LNG. It added that all domestic gas currently comes from the Malampaya gas field in Palawan. The Malampaya gas field, which is the sole supplier of gas for 2,700 megawatts of gas-fired power in Luzon, is set to deplete creating uncertainty in the market.

“The project will help secure long-term gas supply for the power plants, enhancing the energy security of the country. It is also expected to stimulate incremental demand for natural gas in Luzon and the surrounding islands,” the ADB said.

The smallest financing received by the Philippines from the ADB was the $1.3 million allocated for the Integrated Flood Risk Management Sector Project.

The cost is composed of a technical assistance of $1 million from the TASF and $300,000 from the Cooperation Fund for Project Preparation in the Greater Mekong Subregion and in Other Specific Asian Countries.

The project, which was approved on June 21, is now considered “active” or ongoing by the ADB. It aims to assist the government reduce flood risks in six river basins—Apayao-Abulog and Abra in Luzon, Jalaur in Visayas, and Agus, Buayan-Malungon, and Tagum-Libuganon in Mindanao.

“The transaction technical assistance [TRTA] will help the government to prepare the ensuing project, as well as develop a preliminary road map and a long-term investment program for flood risk management [FRM]. The TRTA will directly complement the technical assistance loan for IPIF [Infrastructure Preparation and Innovation Facility],” the ADB said.

In October last year, the ADB extended a $100-million loan to help the Philippine government finance its project preparation requirements for the “Build, Build, Build” infrastructure program.

The ADB said the loan will be used for the IPIF which will finance project feasibility studies, procurement of consultants, detailed engineering and preparing bid documents, among others.

The total cost of the facility is $164.06 million, with the Philippine government contributing $64.06 million.

The project is expected to be completed in the second quarter of 2021. Cai U. Ordinario

FOR CREATION OF AGENCY IN CHARGE OF INVESTORS

By Elijah Felice E. Rosales

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@alyasjah

NOTHER government agency in charge of investors? A lawmaker believes this is necessary to further improve the country’s investment portfolio.

In a st atement on Su nd ay, Rep. Lu is Raymund F. Villafuerte of the Second District of Camarines Sur said it will benefit the economy if a department mandated to service investors is institutionalized. He claimed it is also in line with this administration’s commitment to sustain inclusive growth momentum by boosting foreign direct investment (FDI) inf lows and generating employment in the process.

“Investors are bullish on the country’s economic prospects, as shown by the steady climb in both committed and actual FDI inflows.

We can be assured of this continuous rise in FDIs once we fully implement soon enough the EODB [ease of doing business] law,” Villafuerte argued.

He explained a new department in charge of investors will complement the EODB law. As a result, it will sharpen the country’s competitiveness as an investment destination in the region, Villafuerte said.

President Duterte reportedly revealed plans to put up a new agency that will deal with concerns of investors during his visits to Israel and Jordan. Villafuerte was a member of the President’s official delegation in his recent overseas trips.

The legislator also called on the Department of Trade and Industry (DTI) to expedite the crafting the implementing rules and regulation (IRR) of the EODB law.

He branded it a “shame” if the “perceived undue delay in its implementation” tempers investor confidence. “The EODB law will go a long way in boosting investor confidence and hauling in fresh FDI inflows that would spur greater economic activity and create more jobs,” Villafuerte said.

T he countr y is bank ing on the EODB law to boost its rank ing in the World Bank Doing Business repor t. In the 2018 c ycle, the Philippines dropped 14 notches to 113th among 190 economies, and lag ged behind Southeast A sian neighbors Singapore (second); Ma l aysi a (24t h); T ha i l a nd (26t h); Brunei Darussalam (56th); Vietnam (68th); and Indonesia (72nd).

For Villafuerte, the EODB law is “crucial ” in keeping investor confidence in the face of “politica l noise.” He added it w il l assist this administration in its objective of sustaining high grow th momentum, cutting pover t y incidence and tur ning the countr y into an upper midd le-income economy by 2022.

In an earlier statement, Trade Secretary Ramon M. Lopez insisted the DTI is on track to completing the IRR for the EODB law. He added his agency is still consulting with national and local government units on the provisions of the IRR, particularly in defining “simple transactions,” “complex transactions” and “highly technical transactions.”

www.businessmirror.com.ph

Banking&Finance BusinessMirror

NG’s July borrowings rise 212% to ₧44.4 billion

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By Rea Cu

@ReaCuBM

HE national government’s borrowings for the month of July amounted to P44.396 billion, higher by 212.45 percent compared to the P14.209 billion recorded in the same month last year, Bureau of the Treasury (BTr) data showed.

Based on the latest data from the BTr, the government’s total gross borrowings for July amounted to P44.396 billion, with gross external borrowings accounting

for P23.072 billion of the total for the month and domestic borrowings, P21.324.

Gross borrowings from offshore lenders for the month rose 1,853.6

percent compared to the P1.181 billion recorded in the July 2017, while gross borrowings from local lenders posted a 63.68-percent expansion compared to the previous year’s P13.028 billion.

External borrowings in the form of project loans amounted to P1.681 billion for the month, while program loans accounted for P21.391 billion of the total.

Borrowings in the form of Treasury bills formed the bulk of the gross domestic borrowings of the NG for the month with P21.324 billion.

This pushed the government’s total gross borrowings for the seven-month period to P505.256 billion, contracting by 2.83 percent coming from P519.969 billion in the same period for 2017.

From January to July this

year, gross external borrowings increased to 27.43 percent amounting to P178.896 billion coming from P140.39 billion, while domestic gross borrowings contracted by 14.02 percent, reaching P326.361 billion, from P379.579 billion in the same period the previous year.

In July this year, the Development Budget Coordination Committee reported that, to ensure efficient borrowing, this year’s goal of sourcing 65 percent of loans from the domestic market and 35 percent from external sources will be modified.

As a result of that change, the government will now target the proportion of domestic borrowing to increase to 75 percent, which will reduce the percentage of external financing in the mix to 25 percent in 2019.

Customs seen to draw P13M from Sept. 17 and 21 auctions

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HE Bureau of Customs (BOC) is expected to earn more than P13 million in additional revenue with the sale of 12 lots of different items in a public auction at the Port of Manila (POM) next week.

According to POM Auction and Cargo Disposal Division, the sale of various units, such as equipment and plywood among others, will be held on

Monday, September 17 at 2 p.m. and September 21 at 10 a.m. at the third floor Collector’s Conference Room, POM Building, Port Area, Manila.

More than P13.57 million are expected to be earned as the BOC will bid out a total of 12 lots—five lots on Monday and seven lots on Friday.

On September 17 at least 23 40foot containers of insulation flat

panel with a total floor price of P5.361 million are up for bidders, along with a brand-new XGMA payloader and a brand-new XGMA forklift pegged at P1.346 million.

Also up for bidding are six 40-foot containers of plywood with a floor price of P1.205 million.

Other goods include a 1x40 container with approximately 900 pack-

ages of Westinghouse rice cookers valued at P284,394.50, and three brand-new units of steel cabin for construction equipment worth P186,760.

On September 21 POM will bid out seven lots of various goods, including the P2.520 million worth of two units used international 10-wheeler tractor heads, and P1.253 million worth of one unit used excavator. PNA

Monday, September 17, 2018

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Perspectives Your business probably is not as smart as it needs to be

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UCCESSFUL companies are investing in smart technologies to grow their business, add value, engage consumers, improve performance—and compete with platform businesses.

Futurist Ray Kurzweil says humanity is entering an age of accelerated returns. We have reached a point, he argues, where information technology is progressing exponentially, not linearly. “Thirty linear steps gets you to 30,” he told the Financial Times. “With exponential growth, it’s one, two, four, eight. Step 30, you’re at a billion.”

Although technologies such as artificial intelligence (AI), robotics, augmented reality (AR) and virtual reality (VR) are relatively immature, they are already making an exponential difference in the world’s consumer goods industry.

In the Philippines rice farmers can now dial a chatbot. After analyzing information about the time of year, land and weather, it tells them which fertilizer will most improve their yield. For the Womenswear FW 2018 fashion show, Prada—in collaboration with the mysterious cyber model Lil Miquela—took over Milan in the real and digital world, covering the city with #PradaFW18 billboards and posters and social platforms with #PradaGifs made especially for the occasion. In California, a robot with the rather literal name of Flippy will soon start flipping burgers at 50 stores in the CaliBurger chain. In China on the most recent Singles’ Day, Alibaba enjoyed record sales of $25 billion—with 90 percent of those transactions made on smartphones.

These examples illustrate the pace of technological innovation at leading consumer-facing companies, yet they only convey part of the exponential change Kurzweil predicted. The findings of the 2018 Top of Mind Survey suggest that some companies are being much more ambitious.

Platform businesses, for example, already invest 13 percent of their revenue in technology—compared to less than 5 percent for the industry as a whole.

They are also significantly more likely to have already invested in AI, AR, VR, predictive analytics, open source platforms, wearables and chatbots.

Successful companies are using smart technologies to fulfill a greater vision—and may even drive innovation in that area. By adopting the appropriate technologies, they are looking to accelerate growth and make more profit.

As part of that process, these organizations are abandoning cumbersome legacy systems and embracing cloud-based open platforms. The aim is to accelerate innovation, support advanced digital solutions and extract greater value for the business—possibly by streamlining operations, reducing time to market or offering their customers a much better service.

Yet, even this does not quite capture the scale of the transformation businesses are facing. As Dr. Thomas Erwin, global head of KPMG Lighthouse Center of Excellence for Intelligent Automation and Data & Analytics, says: “By 2020 AI technologies will be managing more complex processes compared to single tasks. We are probably only about 10 years away from a world where AI is really navigating a portfolio of processes, and effectively acting as the engine of a company, making operational decisions.”

Getting to that point will require experimentation, cultural change—and a willingness to fail. The introduction of new technologies can broadly be said to follow a familiar pattern. The thrill of innovation gives way to disappointment and doubt before the technology matures and, with expectations tempered by reality, is finally accepted by the market.

You only have to look at the technologies we still describe as “emerging” to understand how unpredictable this process can be. Manufacturers and retailers are now using AR to enhance the consumer experience—earlier this year, Nike used this technology to virtually launch its Deerupt sneaker—morethan25yearssinceLouisRosenberg created the first system at a US Air Force research lab. Even the idea of a voice-operated chatbot can be traced back to 1966 when two AI-programs, Eliza and Parry, offered what one researcher called “an eerie semblance of human conversation.”

The excerpt was taken from the publication entitled No Normal is the New Normal.

2018 R.G. Manabat & Co., a Philippine partnership and a member-firm of the KPMG network of independent member-firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the Philippines. For more information on KPMG in the Philippines, you may visit www.kpmg.com.ph.

A6

The Regions

Monday, September 17, 2018 • Editor: Dennis D. Estopace

BusinessMirror

BSP orders PDIC to take over Lanao del Norte rural bank

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HE Bangko Sentral ng Pilipinas (BSP) has issued a circular letter prohibiting the Rural Bank of Maigo (Lanao del Norte) Inc. from doing business in the country.

The BSP also ordered the Philippine Deposit Insurance Corp. (PDIC) to take over the bank’s operations.

“Notice is hereby given that the MB [Monetary Board], in its resolution 1484.A dated September 13, 2018, decided to prohibit the Rural Bank of Maigo [Lanao del Norte] Inc., from doing business in the Philippines pursuant to Section 30 of Republic Act 7653,” the BSP said in its Circular Letter 2018-065.

The MB also directed the PDIC as receiver to proceed with the liquidation of the bank and to take over its operations on September 14.

The Rural Bank of Maigo is a single-unit rural bank in Poblacion, Maigo, Lanao del Norte.

As of June 30, the bank had 2,150 deposit accounts with total deposit liabilities of P73.25 million and total insured deposits amounting to P64.06 million, equivalent to 87.4 percent of total deposits.

The PDIC has assured depositors that all valid deposits and claims shall be paid up to the maximum deposit insurance coverage

of P500,000.

The BSP said it asks all depositors and borrowers of the bank to attend the Depositors-Borrowers’ Forum, which will be held in a venue near the premises of the bank on September 24.

The MB exercises the functions of the BSP, including the supervision of the financial system, among others. The BSP governor sits as its chairman, with five members from the private sector and one member from the Cabinet. Rea Cu

DENR Western Visayas requires P3.4B to build sanitary landfills T HE Department of Environment and Natural Resources (DENR) in Region 6 is proposing the construction of 17 sanitary landfills, one each for every congressional district, costing a total of P3.4 billion, to address the growing garbage menace in Western Visayas.

The proposal excludes Iloilo City, which already has its own sanitary landfill in Calajuran in Mandumao District.

DENR Regional VI Director Jim

O. Sampulna told the BusinessMirror in an interview that he’s “already written a letter proposing for the construction of sanitary landfill facilities in Western Visayas; one for each congressional district.”

“Recog nizing the need for LGUs [local government units] to construct sanitar y landfill facilities in compliance with RA [Republic Act] 9003, this region would like to submit a proposal for the construction of such facili-

ties,” Sampulna said in his letter, dated April 6, 2018, addressed to the DENR Policy and Planning Services director.

Sampulna also wrote a letter to Sen. Loren B. Legarda appealing to the lady lawmaker to help Region 6 find funding to address what he described as a looming garbage crisis in Western Visayas.

T he proposa l for t he construction of such facilities aims to address the concern of bur-

geoning volume of solid waste due to an increase of population and consumption patterns, Sampulna said.

Western Visayas is a biodiversity-rich region with huge ecotourism potential. But because of the increasing population, including tourist arrival, garbage generation is also up.

“As far as the problem is concerned, our primary concern right now is our garbage,” Sampulna said.

In Boracay alone, an island

compr ised of t hree barang ay s pro du c e s 10 0 t on s of garbage every day.

Sampulna’s budget proposal is broken down as follows: P200 million for Aklan province, P200 million for Antique, P400 million for Capiz’s two congressional districts, P1 billion for Iloilo’s five congressional districts, P200 million for Guimaras and P1.4 billion for Negros Occidental’s tot a l of seven cong ressiona l districts. Jonathan L. Mayuga

www.businessmirror.com.ph

Except for Loakan, airports in N. Luzon running–Caap

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HE Civil Aviation Authority of the Philippines (Caap) reported on Sunday that except for Loakan Airport in Baguio, government-run airports in Northern Luzon remain operational. Loakan was partly covered by landslide and others with minor damages and varying degrees of readiness.

The Caap said it dispatched some of the air-traffic controllers in Manila on Friday to replace the duty controllers in Tuguegarao, Cauayan and Laoag airports.

“The Caap’s ‘Oplan Ompong’ has been monitoring the situation as early as Friday morning,” the Caap said in a statement. “Air-traffic personnel from Manila were dispatched to Northen Luzon airports.”

It added that engineers from Manila were instructed to be part of the contingency to assess the damage to airports and to repair those aerodromes that had been affected.

“Additional security details were sent to affected airports to assist. Food and water were also provided to Caap employees and volunteers manning the affected airports.”

The Caap said communication lines at Loakan airport, Baguio, are open and operational via VHF/HF (very high frequency radio), and phone and mobile lines. Also, navigational aids and meteorological equipment are operational, while passenger terminals and other vertical structures are intact.

“Runway 27 was affected by landslide in the area and covered by mud,” the Caap said. “Notam [Notice to Airmen] shall be issued to limit Baguio operations to helicopter utilization only.”

The Caap noted that the airport in San Fernando, La Union, is operational. Recto Mercene

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The World BusinessMirror

Nasa satellite to measure Earth’s ice changes

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ANDENBERG AIR FORCE BASE, California—A National Aeronautics and Space Administration (Nasa) satellite designed to precisely measure changes in Earth’s ice sheets, glaciers, sea ice and vegetation was launched into polar orbit from California early Saturday.

A Delta II rocket carrying ICESat-2 lifted off from Vandenberg Air Force Base at 6:02 a.m. and headed over the Pacific Ocean.

Nasa Earth Science Division Director Michael Freilich says that the mission in particular will advance knowledge of how the ice sheets of Greenland and Antarctica contribute to sea-level rise.

The melt from those ice sheets alone has raised global sea level by more than 1 millimeter (0.04 inch) a year recently, according to Nasa.

The mission is a successor to the original Ice, Cloud and Land Elevation Satellite that operated from 2003 to 2009. Measurements continued since then with airborne instruments in Nasa’s Operation IceBridge.

Built by Northrop Grumman, ICESat-2 carries a single instrument, a laser altimeter that measures height by determining how long it takes photons to travel from the spacecraft to Earth and back. According to Nasa, it will collect more than 250 times as many measurements as the first ICESat. The laser is designed to fire 10,000 times per second, divided into six beams of hundreds of trillions of photons. The round trip is timed to a billionth of a second.

In addition to ice, the satellite’s other measurements, such as the tops of trees, snow and river heights, may help with research

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Report: Trump going ahead with new tariffs

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ASHINGTON—President Donald J. Trump is going ahead with plans to impose new tariffs on about $200 billion of Chinese imports, The Wall Street Journal reported on Saturday.

THE United Launch Alliance Delta II rocket with the Nasa Ice, Cloud and Land Elevation Satellite-2 onboard is seen shortly after the mobile service tower at SLC-2 was rolled back on September 15, at Vandenberg Air Force Base, California. The ICESat-2 mission will measure the changing height of Earth’s ice. BILL INGALLS/NASA VIA AP

into the amount of carbon stored in forests, flood and drought planning and wildfire behavior, among other uses. The launch was the last for a Delta II rocket, United Launch Alliance said.

The first Delta II lifted off on

February 14, 1989, and since then it has been the launch vehicle for Global Positioning System orbiters, Earth observing and commercial satellites and interplanetary missions including the twin Mars rovers Spirit and Opportunity. AP

Historic Kim Jong Un summit may make or break Moon’s presidency

OON JAE-IN has more than world peace riding on a successful summit with North Korean leader Kim Jong Un this week: His domestic agenda is also at stake.

Moon’s trip to North Korea’s capital—the first such visit by a South Korean leader in 11 years— will again test his ability to bridge the gap between two volatile leaders, Kim and US President Donald J. Trump. It may also help South Koreans forget about soaring home prices and unemployment that have brought his sky-high approval ratings down to earth.

South Koreans see Moon’s dovish North Korea policy as a success, beginning with the landmark rapprochement forged with Kim at an April summit at the countries’ border. That was followed by other initiatives, including a new inter-Korea liaison office and reunions of families separated by the Korean War. But the goodwill generated from his historic North Korea meetings has been eroded by an economic slump. Home prices are becoming out of reach for Seoul’s middle class, and unemployment in August rose to its highest level in more than eight years.

This is Moon’s “first political crisis,” said Lee Eun-young, head of the Korea Public Opinion Lab. “Depending on what the government’s goal from the summit is, it could make or break his presidency,” she said, adding that it’s not clear whether Moon wants a declaration to end the war or continued meetings with Kim to find common ground.

Moon is bringing some of South Korea’s top business titans with him to Pyongyang. His 200-member delegation will include Samsung Electronics Co. Vice Chairman Jay Y. Lee, Hyundai Motor Co. Vice Chairman Kim Yong-hwan, SK Hynix Inc. Chairman Chey Tae-won and LG Corp. Chairman Koo Kwang-mo.

“We believe with this summit, we can expect to move forward with ‘New Economic Map of the Korean

Editor: Angel R. Calso • Monday, September 17, 2018 A7

Peninsula’ that our government has been pushing for,” Im Jong-seok, Moon’s chief of staff, told reporters on Sunday.

Frustration with the economy has led South Koreans to draw unfavorable comparisons between Moon’s policies and the struggles of his mentor and former boss, the late President Roh Moo-hyun. He led the country from 2003 to 2008 and was the last South Korean leader to visit Pyongyang.

‘Disappointment’

MOON has often cited Roh as the inspiration behind his own bid for the presidency, and served as his chief of staff. He has said he wouldn’t repeat the economic mistakes that plagued Roh’s presidency, notably a failure to control skyrocketing housing prices that jumped almost 60 percent, or to reform powerful family-owned conglomerates known as chaebol.

But now similar domestic troubles are hitting Moon. The median price of a Seoul apartment jumped to 779 million won ($700,000) as of August, 20 percent higher than a year earlier, according to KB Kookmin Bank. Seoul’s younger families are once again being forced out of the market, lamenting their inability to buy apartments as prices outpace what they can save. “There is a disappointment from people who have believed Moon’s administration would improve the economy,” said Kim Jin-pyo, a lawmaker in the ruling party who served as a finance minister under Roh. “Rather than seeing an improvement, life for small business owners and lowincome people got worse.”

Sliding popularity

SO far, Moon’s administration hasn’t had success stemming the real-estate surge in greater Seoul, home to about half of the country’s population, despite having announced measures intended to cool the property market eight times since taking office in May 2017.

In August 2017 he tried to curb speculative housing investment with a plan drafted by an aide who had been behind Roh’s attempt to cool the real-estate market. But Moon’s attempts have been impeded, in part by near-record low-interest rates that have fueled speculation in the country’s housing markets.

Moon’s approval rating slid below 50 percent in a Gallup Korea poll for this first time on September 7—down from 83 percent after his first summit with Kim five months ago. It climbed 1 percentage point, to 50 percent, on September 14— the same day the landmark interKorean office opened in the North Korean city of Gaeseong, allowing 24-hour per day communication between the two sides.

Success at the summit this week could continue to “push up” that support, said Kim, the South Korean parliamentarian and former finance minister. Moon “will have to find a breakthrough in the impasse in the US-North Korea talks.”

Asked about the slipping poll numbers, Moon’s office on Friday referred to past comments by a spokesman saying they would listen to the voice of the people more closely and review the latest realestate regulations.

‘Somewhat unusual’

IN Pyongyang, things won’t be easy for Moon. He will look to salvage faltering negotiations between Trump and Kim over nuclear weapons, while working to further the prospects of a peace deal between them by the end of this year. Moon and the US president will meet next week in the US—with Moon potentially delivering a message from Kim. During the summit, Moon will try to persuade the North Korean leader “to come up with somewhat unusual, bold and imaginative” steps toward denuclearization, according to Moon Chung-in, a professor at Yonsei University who serves as a special presidential adviser on foreign affairs and national security. Bloomberg News

Both sides were preparing to hold new talks on their tariff dispute. Last week Trump told reporters such a move could come “very soon.”

The Journal cited unnamed people familiar with the matter who said the tariff level will likely be set at about 10 percent, below the 25 percent announced earlier this year.

The two governments have already imposed 25-percent tariffs on $50 billion of each other’s goods.

Beijing has issued a list of another $60 billion of American products for retaliation if Trump’s next tariff hike goes ahead. White House Spokesman Lindsay Walters declined comment on the timing of a possible announcement, but said: “The President has been clear that he and his administration will continue to take action to address China’s unfair trade practices. We encourage China to address the long-standing concerns raised by the United States.”

The Chinese foreign ministry said on Thursday that it was invited

to hold new talks. Envoys from the two countries last met August 22 in Washington but reported no progress.

Beijing has rejected pressure from the United States to roll back plans for state-led development of Chinese global champions in robotics, artificial intelligence and other fields.

Washington, Europe and other trading partners say those plans violate China’s market-opening commitments. American officials also worry they might erode US industrial leadership.

Forecasters have warned that the worsening conflict between the world’s two biggest traders could cut up to 0.5 percentage point off global economic growth through 2020 if all threatened tariff hikes go ahead.

China has tried without success to recruit Germany, France, South Korea and other governments as allies against Washington. Some of them have criticized Trump’s tactics but many echo US complaints about Chinese market barriers and industrial strategy. AP

IN this September 12 file photo, President Donald J. Trump arrives to speak at a Congressional Medal of Honor Society reception in the East Room of the White House in Washington. Trump is going ahead with plans to announce new tariffs on about $200 billion of Chinese imports, The Wall Street Journal reported on September 15. AP

Green Monday BusinessMirror

A8 Monday, September 17, 2018

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

Fund needed for timely response against oil spill

SC: ₧0.10 levy vs oil tankers constitutional

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By Joel R. San Juan

@jrsanjuan1573

HE Supreme Court (SC) has unanimously declared constitutional a provision in Republic Act (RA) 9483 that compels operators of petroleum tankers and barges to pay a 10-centavo levy per liter for every delivery and transshipments of oil from storage facility to its point of destination. It would cover damage to property, containment, cleanup and rehabilitation in case of oil spills.

In a 35-page decision, penned by now-retired Associate Justice Presbitero J. Velasco Jr., the Court en banc reversed and set aside the decision issued by the Regional Trial Court (RTC) in Quezon City on February 22, 2017, which declared as unconstitutiona l Section 22 of R A 9483, as well as Section 1, Rule X of its implementing rules and regulations (IRR).

The law imposes a 10-centavo levy per liter for every delivery and transshipment of oil, which will go to the Oil Pollution Management Fund (OPMF), which will be used for the immediate containment, removal and cleanup operations of the Philippine Coast Guard (PCG) in all pollution cases.

The fund will also be used in the research, enforcement and moni-

U.N. chief: World must prevent runaway climate change by 2020

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NITED NATIONS—United Nations (UN) Secretar y-General Antonio Guterres warned last Monday that the world is facing “a direct existential threat” and must rapidly shift from dependence on fossil fuels by 2020 to prevent “runaway climate change.”

The UN chief called the crisis urgent and decried the lack of global leadership to address global warming.

“Climate change is moving faster than we are,” Guterres said. “We need to put the brake on deadly greenhouse-gas emissions and drive climate action.” He said people ever ywhere are experiencing recordbreaking temperatures—and extreme heatwaves, wildfires, storms and floods “are leaving a trail of death and devastation.”

As examples, Guterres pointed to Kerala, India’s worst monsoon flooding in recent history, almost 3,000 deaths from Hurricane Maria in Puerto Rico last year, disappearing Arctic sea ice, some wildfires so big that they send ash around the world, oceans becoming more acidic threatening food chains, and high carbon-dioxide levels in the atmosphere threatening food security for billions of people.

Guterres said scientists have been warning about global warming for decades, but “far too many leaders have refused to listen—far too few have acted with the vision the science demands.”

When some 190 nations signed the 2015 Paris agreement on climate change they agreed to limit the global temperature increase by 2100 to less than 2 degrees Celsius (3.6 degrees Fahrenheit) and as close as possible to 1.5 degrees.

“These targets were the bare minimum to avoid the worst impacts of climate change,” Guterres said. “But scientists tell us that we are far off track.”

“According to a UN study, the commitments made so far by parties to the Paris agreement represent just one-third of what is needed,” the secretary-general said.

Guterres said the mountain that needs to be climbed is very high—but not insurmountable.

“We need to rapidly shift away from our dependence on fossil fuels,” he said. “We need to replace them with clean energy from water, wind and sun. We must halt deforestation, restore degraded forests and change the way we farm.”

He appealed for leadership—”from politicians and leaders, from business and scientists, and from the public everywhere”— to break what he called the current “paralysis” and act now.

“If we do not change course by 2020, we risk missing the point where we can avoid runaway climate change, with disastrous

United Nations Secretary-General Antonio Guterres Wikimedia Commons

consequences for people and all the natural systems that sustain us,” Guterres warned.

The alternative to moving to green energy, he said, “is a dark and dangerous future.”

Guterres said that when he addresses world leaders at their annual General Assembly gathering in two weeks, he will tell them “that climate change is the great challenge of our time” and what is missing is leadership and a sense of urgency to respond.

He said an international meeting in Bangkok that ended last Sunday made some progress on negotiations to help reach an agreement in December in Poland on guidelines for implementing the 2015 Paris accord—”but far from enough.”

“Nothing less than our future and the fate of humankind depends on how we rise to the climate challenge,” Guterres said.

“Keeping our planet’s warming to well below 2 degrees [Celsius] is essential for global prosperity, people’s well-being and the security of nations.”

He said that is why he will convoke a climate summit for world leaders in September 2019 “to bring climate action to the top of the international agenda.”

Guterres said technology is on the side of those seeking to tackle climate change.

He cited the rising use of renewable energy, saying “today, it is competitive with—and even cheaper—than coal and oil, especially if one factors in the cost of pollution.”

He singled out innovative programs in China, Sweden, Morocco, Scotland and Thailand.

Guterres also pointed to other signs of hope including oil-rich Saudi Arabia investing heavily in renewable energy and oil-rich Norway’s sovereign wealth fund—the largest in the world—moving away from investments in coal as well as in palm and pulp paper companies because of the forests they destroy. AP

toring activities of relevant agencies, such as the PCG, Maritime Industry Authority and Philippine Ports Authority, and other ports authority of the Department of Transportation (DOTr), Environmental Management Bureau of the Department of Environment and Natural Resources and the Department of Energy.

The case before the QC RTC was filed by petroleum marine and transport companies namely the Philippine Petroleum Sea Transport Association, Herma Shipping and Transport Corp., Isl a s Ta n kers Sea Tra nspor t Cor p., M I S M a r it i me Cor p., Petrolift Inc., Golden Albatross S h ip pi ng Cor p., V i a M a r i ne Corp. and Cargomarine Corp.

The QC RTC gave weight to their arguments that the obliga-

tion to contribute to the OPMF solely imposed on the owners and operators of oil/petroleum tankers and barges violates their right to equal protection of the law.

It added that the 10-centavo levy is confiscatory, thus, violates their right to due process.

In reversing the lower court’s decision, the SC agreed with the contention of the petitioners— PCG, Marina and the DOTr— that public interest in protecting the marine wealth of the country warrants the imposition of the 10-centavo levy.

“Indeed, by employing preventive and/or immediate containment measures or response techniques, the State is but affording protection to persons or all stakeholders who stand to suffer from oi l - p ol lut ion i nc ide nt s — t he

By employing preventive and/or immediate containment measures or response techniques, the State is but affording protection to persons or all stakeholders who stand to suffer from oil-pollution incidents.”—Court

main thrust of the conventions that is now effectively translated and implemented in Section 22 [a] of R A 9483 and its IRR,” the Court ruled.

“In other words, by creating the OPMF, Congress sought to ensure that our enforcement agencies are capable of protecting our marine wealth and preventing harm from being caused to the people and their livelihood by reason of these unfortunate events. Time is of the essence when it comes to oil-spill response,” it added.

Likewise, the Court dismissed the claim of petroleum marine and transport companies that the assailed provisions violate the equal protection guarantee in singling out “owners and operators of oil or petroleum tankers and barges.”

T he respondent companies claimed that since all vessels plying the Philippine waters are susceptible to accidents, which may cause oil spills, all should be made to contribute to the OPMF. But the SC pointed out that while all vessels, channels and storage facilities that carr y or store oil are capable of causing oil pollution, this does not make them “similarly situated

within the context of the equalprotection clause.”

Besides the difference in the purposes behind their existence and navigation, the SC noted that it is internationally well recognized that oil tankers pose a greater risk to the environment and to people.

“In the instant case, we agree with petitioners that separating ‘tankers and barges hauling oil and for petroleum products in Philippine waterways and coastwise shipping routes’ from other sea-borne vessels does not violate the equal-protection clause,” the SC explained.

Furthermore, the SC ruled that the imposition of the 10-centavo impost does not violate the constitutional provision against deprivation of property without due process.

The High Court said the respondents merely provided computations of their losses to prove that their businesses would suffer due to the imposition of a 10-centavo levy.

“It would be improper to declare an imposition as unlawful or unconstitutional on the basis of purely hypothetical and unsubstantiated computations,” the Court said.

Climate change becoming a reality check for the North

W

AGENINGEN, the Net herl a nd s —“ T h i s season, the month of May was particularly hot and dry,” said Leo de Jong, a commercial farmer in Zeewolde, in Flevopolder, the Netherlands.

Flevopolder is in the province of Flevoland, the largest site of land reclamation in the world.

Here a hectare of land costs up to €100,000. “At the moment, we are spending between €20,000 and €25,000 per week on irrigation.”

While most reports point to developing nations as being the most vulnerable to the effects of climate change, it is slowly emerging that farmers in the North who generally have more resources are feeling the heat, too.

Fr o m i n c e s s a nt w i l d f i r e s and powerful hurricanes in the United States and the Caribbean, to record-breaking high temperatures and droughts in Europe and Asia, the scientific community is unanimously in agreement that climate change is the more likely cause of these extremes in weather.

And it is causing severe disruptions to agricultural production systems, the environment and biodiversity.

This is troubling as, according to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change, a rise in temperature of more than 2 degrees Celsius could exacerbate the existing food deficit and prevent the majority of African countries from attaining their Sustainable Development Goals on poverty and hunger.

While de Jong can afford spending thousands of euros on irrigation each week, he knows it is no longer sustainable for his farming business. He currently grows potatoes, onions and wheat, among other crops, on 170 hectares of reclaimed land.

Soil health emerges as key

With 18 million inhabitants, the Netherlands is densely populated.

Half of the Netherlands is below sea level, but part of the sea was reclaimed for agricultural purposes.

After a f lood in 1916, the Dutch government decided that the Zuiderzee, an inland sea within the Netherlands, would be enclosed and reclaimed. Later,

the Afsluitdijk was completed—a 32-kilometer dyke which closed off the sea completely.

Between 1940 and 1968, part of this enclosed inland sea was converted into land and in 1986 it became the newest province of the Netherlands—Flevoland.

Sitting about 4 meters below sea level, soil health in the Flevopolder, Flevoland, is of particular importance. De Jong sees it as a hallmark for every farmer in this era of climate change, regardless of their location.

He believes the answer to the climate challenge lies in farmers’ ability to “balance between ecology and economy.”

This, he told Inter Press Service (IPS), can be achieved through various ways such as improved and efficient irrigation technology, research and innovation, as well as farmer-to-farmer knowledge exchanges like the one to which he belongs—the Skylark Foundation. At the foundation he exchanges knowledge with a group of colleagues, mainly focusing on soil health.

“I have a feeling that the climate is getting extreme but consistent usage of manure, cover crops and other efficient sustainable practices guarantees good soil health, and soil health is the hallmark on which sustainable crop production is built.”

Similarly, Peter Appelman, who specializes in farming broccoli and cabbage, agrees with the soil-health argument.

Appelman said that farmers should not be preoccupied with the various systems (conventional and organic farming) currently being propagated by researchers.

He said farmers should rather adopt systems that work for them depending on the type of soils on their farms.

“We have stopped feeding the crop but the soil,” he told IPS, pointing at a pile of composite manure. “I am not an organic farmer but I try to be sustainable in whatever way because this comes back to you. You can’t grow a good product in bad soil.”

Market access for sustainability

In addressing the production cost side of the business, Appelman points to consumer satisfaction

broccoli on 170 hectares and red and white cabbage on 60 hectares.

Research and innovation

Leo De Jong in his potato field, in the Netherlands Friday Phiri/IPS

and predictable markets as key enablers to farmers’ sustainability in this era of climate stress.

As consumer preferences become more obvious, Appelman said farmers should not expend their energies complaining about market access and growing consumer demands but should rather work hard to satisfy them.

“I think my fellow farmers complain too much, which is not the best practice for the business,” he said. “As farmers, we should exert this energy in looking for customers, and work to satisfy them—I believe better farmer-tocustomer relations should be the way forward.”

According to Appelman, production should be determined by consumer/market preferences.

“I travel around the world looking for markets, and through these interactions, I learn and do my work according to the needs of my customers. Look for customers first and then proceed to produce for them, because it is tough in the production stage,” said Appelman, whose farm has an annual turnover of about €2 million.

The Appelman family grow

According to Prof. L ou ise Fresco, president of the research executive board of Wageningen University in the Netherlands, the answer to the global food challenge lies in ensuring that the contribution of agriculture to climate change is positive rather than negative.

This, she said, is only possible through investment in research and innovation in order to achieve maximum efficiency for food production and to minimise waste.

“The agriculture sector, therefore, needs to do more than produce food—but produce efficiently,” she said in her opening address to the 2018 International Federation of Agricultural Journalists congress held in the Netherlands in July. “Food has to be produced not as a chain, but in a circular way. Water and energy use are highlights.”

Under the theme: Dutch roots— small country, big solutions, the congress highlighted what lies at the center of the Netherlands’s agricultural prowess.

“Productivity through innovation and efficiency is the answer to why the Netherlands, a small country, is the second-largest agr icu ltura l ex porter [in the world],” said Wiebe Draijer, chief executive officer and chairman of Rabobank.

Draijer said Rabobank, which was founded as a cooperative, was happy to be associated with the Dutch agricultural prowess, which is anchored in sustainable and innovative practices.

“In response to the global food challenge, we keep refining our lending modalities to support environmental sustainability. For example, we track farmers that we give loans to to monitor their environmental sustainability practices, and there is an incentive in the form of a discount on their loans.”

Susta inabi l it y is t he bu zz word globally. However, it seems there is much more to be done for farmers to achieve it, especially now that negative effects of climate change are similarly being felt in both the north and the global south. IPS

Biodiversity Monday BusinessMirror

Asean Champions of Biodiversity Media Category 2014

Monday, September 17, 2018

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

A9

Unclos expands to cover marine biodiversity

C

By Palitha Kohona | Inter Press Service

OLOMBO, Sri Lanka— Responding to a persistent demand by developing countries, the conservation community and science, the United Nations General Assembly (UNGA) has commenced a process for bringing the areas beyond national jurisdiction in the oceans under a global legally binding regulatory framework.

Approximately two-thirds of the oceans exist beyond national jurisdiction. The United Nations Convention on the Law of the Sea (Unclos), concluded in 1982, currently provides the broad legal and policy framework for all activities relating to the seas and oceans— including, to some extent, for the conservation and sustainable use of marine biological diversity beyond areas of national jurisdiction (BBNJ).

However, despite the comprehensive nature of Unclos, many feel that BBNJ is not adequately covered under it as detailed knowledge of BBNJ was not available, even to the scientific community, at the time.

Advancements in science and tec hnolog y h ave brought vast amounts of knowledge to our attention in the years following the conclusion of Unclos.

Today, human knowledge about the oceans, including its deepest parts, which were inaccessible previously, is much more comprehensive and new information continues to flood in due to significant scientific and technical advances.

Unclos, referred to as the “Constitution for the Oceans” by the former Singaporean Ambassador Tommy Koh, came into force in 1994, and will necessarily be further elaborated as human knowledge of the oceans increases and human activities multiply.

It is already complemented by two specific implementing agreements, namely the agreement relating to Part XI of Unclos, which addresses matters related to the area as defined in the Unclos—the sea bed beyond national jurisdiction—and the agreement for the Implementation of the Provisions of Unclos relating to the Conservation and Management of Straddling Fish Stocks and Highly Migratory Fish Stocks.

The proposed treaty on BBNJ will be the third implementing agreement under the Unclos.

The seas and oceans, which have acquired unprecedented commercial value and have become a major source of global nutrition, have also been the subject of considerable international rule making,

most of it piecemeal.

An estimated 200 million people world wide make a living from fishing and related activities—mostly in poor developing countries.

Fish provide at least 20 of the animal protein intake of over 2.6 billion people. A treaty on BBNJ, as envisaged, while filling a gap in the existing global regulatory framework, will also result in significant areas of the oceans being set aside as marine-protected areas to prov ide protection to marine biological diversity, its critical habitat, including spawning areas, as well as ensuring the equitable division of the benefits resulting from the scientific exploitation of such resources, especially through the development of new products.

Under the umbrella of Unclos, and carefully accommodated within it and its implementing agreements, a number of international instruments (and regimes) at the global and regional levels relevant to the conservation and sustainable use of marine BBNJ, have been put in place already.

At the global level, these include, inter alia, the regulations adopted by the International Seabed Authority for the protection and preservation of the marine environment in the area; the Convention on Biological Diversity; instruments adopted by the Food and Agriculture Organization of the United Nations; measures adopted by the International Maritime Organization; measures relating to intellectual property in the context of the World Trade Organization and the World Intellectual Property Organization.

At the regional level, the releva nt mea su res i nc lude t hose adopted by reg ion a l f i sher ies management organizations and arrangements by regional seas organizations having competence beyond areas of national jurisdiction.

A range of nonbinding instruments/mechanisms also provide policy guidance of relevance to the conservation and exploitation of marine biodiversity, including beyond areas of national jurisdiction.

These include the resolutions

Coral reef ecosystem at Palmyra Atoll National Wildlife Refuge Jim Maragos/US Fish and Wildlife Service

of the UNGA on oceans and the law of the sea and on sustainable fisheries, as well as the R io Declaration and Chapter 17 of Agenda 21 adopted at the 1992 United Nations Conference on Environment and Development, the Johannesburg Plan of Implementation adopted in 2002 at the World Summit on Sustainable Development, the outcome document of the 2012 United Nations Conference on Sustainable Development, i.e.

The future we want, and the 2030 Agenda for Sustainable Development, in particular Sustainable Development Goal 14 (Conservation and sustainable use of the oceans, seas and marine resources for sustainable development).

However, despite the existence of the above regimes, the need for a legally binding multilateral instrument to govern the protection, sustainable utilization and benefit sharing of BBNJ has been advocated by a range of interest groups for some time. A champion of this process has been Argentina.

Negotiation process: Smooth sailing or rough seas ahead?

The UN ad-hoc working group (WG) on BBNJ, established by the UNGA in 2004, in response to the demands of a majority of the international community, took over 10 years to finalize its recommendations in February 2015. Initially, the WG made little progress and was running the risk of being terminated.

Since 2010 it was cochaired by Sri Lanka (Ambassador Dr. Palitha Kohona) and the Netherlands (Dr. Liesbeth Lijnzard).

While the subject was not easy, and many delegations were only beginning to grasp its complexities, curious coalitions began to form. The Group of 77 (G-77) and the European Union (EU) formed a common and a powerful front for different reasons.

Many strategic negotiating approaches were discussed behind the

scenes and effectively deployed by these two unlikely allies resulting in a successful outcome to the work of the WG. Basically, the G-77 wanted the future exploitation of BBNJ regulated globally so that the anticipated benefits would be distributed more equitably, and marine technology transferred consistent with the commitments made under the Unclos.

Already significant numbers of patents based on biological specimens, including microorganisms (12,998 genetic sequences), retrieved from the oceans, many from hydrothermal vents, have been registered. Eleven percent of all patent sequences are from specimens recovered f rom the ocean, while 98 percent of patents ba sed on m a r ine spec ies were ow ned by institutions in 10 countries.

The German pharmaceutical giant, BASF, alone has registered 47 percent of the patented sequences.

The financial bonanza that was expected from the commercialization of these patents was hugely tempting. It is estimated that by 2025, the global market for marine biotechnological products will exceed $6.4 billion and was likely to grow further.

The EU, for its part, wanted to reserve large areas of the oceans for marine protected areas for conservation purposes. Conservation in this manner would result in providing space for genetic material to replenish itself naturally. The goals of the two groups were not necessarily contradictory.

The reservations on the need for a global legally binding regulatory mechanism for BBNJ were expressed mainly by the US, Japan, Norway and the Republic of Korea.

Their interest was in preserving the unhindered freedom of private corporations to exploit biological specimens to conduct research and produce new materials, including

Protecting the habitats of nature’s lamplighters

By Dr. Michael A. Bengwayan Special to the BusinessMirror

Conclusion

Eating habits

Firefly larvae also differ greatly in their eating habits. Since fireflies spend most of their lives in this stage of development, understanding the larvae’s eating habits is helpful to understand their relationship to the larger environment.

The wormy creatures feed in one of two ways—by eating decomposing bodies or by hunting live prey.

The Luciola anceyi Olivier, Luciola cerata Olivier and Luciola gorhami Ritsema, for example, consume the carcasses of arthropods and mollusks. As scavengers, they are nature’s recyclers, transforming spent bodies into new

life. Other firefly species are less content to eat what they find, preferring instead to pick their dinner from among the living.

Species such as Pyrocoelia praetexta Olivier, Luciola ficta Olivier and Lamprigera yunnana Fairmaire, for example, attack ants, earthworms, shellfish, snails and other small arthropods by injecting them with a sort of digestive liquid that anesthetizes victims.

Once the prey is immobile,the firefly larvae go to work with their jawbones until the carcass is consumed.

By the time a firefly reaches adulthood, it leaves behind these carnivorous eating habits. In fact, the illuminating fliers consume a few droplets of dew or nibble on the pollen of flowers. Since they have lost their taste for flesh by adulthood, fireflies are commonly perceived as “human friendly.”

Humans threaten firefly habitats

While fireflies might be friendly to humans, however, humans are encroaching on the habitats of the insects with harmful results.

The environmental conditions for fireflies, especially aquatic species, are deteriorating.

The development of waterways, the draining of wetlands and the shrinking of terraced farms have left fireflies with few places to lay their eggs.

The aquatic species are, in fact, easier to cultivate in conservation projects, and it is quite possible to create the proper environments for breeding. Farmers might be encouraged to include fireflies in their eco-recreational farms, which are increasingly common in the Philippines.

In general, humans are threatening the firefly’s habitat. River pollution (often

caused by factory waste), the use of pesticides and the development of oncewild lands have resulted in fewer fireflies.

Repelled by artificial light

Perhaps the most curious point of conflict between humans and fireflies is light. While people are often enchanted by the illuminated insects, the bugs are repelled by the artificial light created by humans. As cities and towns grow, therefore, fireflies move farther away to avoid the ambient light.

Scholars are still looking into the reasons for this curious phenomenon and trying to better understand the firefly’s world.

No one is doing academic research on the firefly in the Philippines.

Although the search for new species and the investigation into the firefly’s realm goes on like “looking for a lantern in the dark,” the

drugs, biofuels and chemicals for commercial purposes.

T hese cor p or at ion s ne e de d the assurance that the bi l lions that they were ex pend ing on research would produce financially attractive resu lts.

The difficulties involved in identifying the sources from where the specimens were recovered—whether beyond national jurisdiction or within—the costs usually associated with a discovery and bringing a commercially viable product into the market place, the actual need for a legally binding instrument in the current circumstances, the possibility of achieving the same goals through a nonbinding instrument, etc., were some of the concerns articulated.

These concerns are expected to be raised during the treaty negotiations, as well. The US—which held out to the bitter end preventing consensus at the WG—is not even a party to the Unclos.

A Preparatory Committee established by the UNGA to make recommendations on the elements of a draft of an international legally binding instrument on the conservation and sustainable use of marine BBNJ under Unclos, prior to holding an international conference met in four sessions in 2016 and 2017.

Treaty negotiations began in September 2018 following the organizational session (in April 2018) and the conclusion of the fourth and concluding session of the Preparatory Committee.

It could be expected that the US and the like-minded group, ref lecting a recognizable private enterprise oriented policy bias, would continue to raise objections affecting the smooth progress of the negotiations.

T he Tr u mp ad m in ist rat ion, which has made it a habit of distancing itself from compacts to which the US had solemnly subscribed, cannot be expected to be more sympathetic

discovery of unidentified species, as well as the wonder of these light-emitting creatures make it all worthwhile.

Protecting the habitats

There is a need to protect the habitats of the firefly. There is the suggestion for the adoption of ecological engineering methods for public works projects, such as channeling rivers and clearing mountain trails.

Fireflies help draw people to the Philippines’ primitive forests and stimulate interest in the outdoors in general.

Indeed, some feel that the survival of the firefly is a good litmus test for overall environmental conditions. If we can successfully save fireflies, that means we have protected the living environment of mankind, as well.

But if we fail to protect our environment, thus causing the gradual extinction of some creatures such as fireflies, we may eventually suffer the same fate.

to the BBNJ aspirations of the G-77 and the EU any more than the Obama administration.

(Editor’s note: The Philippines won against China in an Unclosrelated case, when the Permanent Court of Arbitration affirmed as having no basis in international law China’s claimed “ historical maritime rights” over contested areas in the West Philippine Sea/ South China Sea. Beijing claims it owns the territories contained within the “nine-dash line” that encircles as much as 90 percent of the contested waters as far as 2,000 kilometers from Mainland China to within a few hundred k i lometers of t he Phi l ippines, Malaysia and Vietnam.

(The Philippines argued that the nine-dash line exceeds the limits of maritime entitlements permitted under Unclos, which provides that a nation has sovereignty over waters extending 12 nautical miles from its land and exclusive control over economic act iv it ies w it hin 20 0 naut ica l miles. The Hague-based court also ruled that China’s construction projects in the Spratly Islands, harassment and prevention of Filipinos from conducting fish i ng ac t iv it ies i n S c a r b orou g h Shoal, and interference with oil and gas exploration at the Reed Bank blatantly violated Philippine sovereign rights.)

Deposit with the UN secretary-general

The UN secretary-general is the depositary of over 550 multilateral treaties, mostly negotiated under the auspices of the United Nations.

The Unclos and its two implementing agreements are examples. These are customarily deposited with the SG due to the recognition that he enjoys in the international community as a high-level independent global authority.

The proposed treaty on BBNJ would in all likelihood, be deposited with the UN SG, when concluded.

The day-to-day management of activity relating to these multilateral treaties is the responsibility of the Treaty Section of the UN Office of Legal Affairs, a function which dates back to the early days of the creation of the UN. Exceptionally, a major multilateral treaty may be deposited elsewhere. For example, the Nuclear Nonproliferation Treaty is deposited with the governments of the US, the UK and Russia.

Under Article 102 of the UN Charter all treaties, both multilateral and bilateral are required to be registered with the UN. The UN is the custodian of over 55,000 bilateral treaties so registered, currently available online.

Dr. Palitha Kohona is former ambassador and permanent representative of Sri Lanka to the United Nations and former cochair of the UN Adhoc Working Group on Biological Diversity Beyond Areas of National Jurisdiction.

Education campaign

Education is key to the success of conserving nature. By launching educational campaigns, we hope to inform the public of the necessity of environmental protection and how they can contribute.

Fireflies have always had a way of casting a spell on humans, in part because they appear in the early evening just after the dinner, when the day fades into night. They float like night spirits amid the darkness, rekindling a sense of wonder.

Hopefully, the fireflies will always illuminate our evening skies with their enchanting beauty.

Bengwayan has a masters degree and PhD in Development Studies and Environmental Resource Management from University College Dublin, Ireland, as a European Union fellow. He writes for the British Gemini News Service, New York’s Earth Times and the Environmental News Service. He is currently a fellow of Echoing Green Foundation in New York.

A10 Monday, September 17, 2018 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

PHL is so rich

T

he 1997 Asian financial crisis is much easier to explain than most people think. Thailand encouraged foreign currency-denominated borrowing at lower interest rates to “boom” economic growth. In return, the government “guaranteed” to hold the baht/US dollar exchange rate at a stable and constant level.

After spending 25 percent of its foreign currency reserves doing that, the peg broke and local companies defaulted on their debts.

South Korea saw its banks’ nonperforming loans explode as its large corporate conglomerates—Chaebols—borrowed money for government-encouraged aggressive expansion. The South Korean government quietly bailed out the loans by borrowing in the international markets.

The government debt-to-GDP ratio went from 13 percent to 30 percent and foreign lenders demanded higher and higher interest on the loans.

Eventually, the Korean won fell from 800 to 1,700 against the US dollar.

The economic collapse of South Korea and its inability to pay its existing foreign debt forced the government to borrow $57 billion from the International Monetary Fund. In the wake of the currency collapse, by the third quarter of 1998, the Korean economy was shrinking at an annual rate of about 7.5 percent.

During the first week of January 1998, a nationwide campaign led by large business groups including Daewoo, Samsung and Hyundai (some of the companies that were major players in the crash) was launched to have ordinary citizens donate personal gold holdings to help pay the nation’s foreign debts.

From Forbes.com: “At the time, it was estimated that South Korean households held roughly $20 billion in gold. Nearly 3.5 million people, almost a quarter of the entire population, voluntarily participated in the campaign. In as little as two months, 226 metric tons, valued at $2.2 billion, were collected, every last scrap of which was melted into ingots and promptly delivered to the IMF.” History is repeating itself. Malaysian Prime Minister Mahathir Mohamad launched the Tabung Harapan Malaysia on May 30, 2018. The purpose of the fund is a platform for the people to help the country and to receive the people’s donations to strengthen the government’s finances. As of August 30, 2018, the fund has earned nearly RM180 million ($44 million).

The point is that, along with complaining and criticizing government actions, the people can step up to help their country.

The Indonesian government is raising tariffs on more than 1,000 items of mostly consumer goods to discourage Indonesians from buying foreign-produced goods. Their inflation rate will soon skyrocket.

But do we need the government to do that or can we take personal responsibility for our economy? What does your own kitchen cabinet and pantry hold? Are you buying canned tomatoes from Spain and spaghetti noodles from Italy? Have you checked the label on the canned “Spam” luncheon meat? It is made from Chinese pigs in factories employing Chinese workers and a licensing fee is paid to an American company.

A colleague stopped at a local convenience store to buy a bottle of water. In the cooler was a brand name she had not seen before. The price was the same as all the other brands. The label said it was “Bottled at the source” but also in French. And where is the source of this “trusted, fresh mineral water”? Also on the label was, “Source: Pasuruan, East Java Province, Indonesia.”

We strongly support free enterprise and are cautious about protectionist trade policies. But are we “rich” enough as a nation and as individuals to buy a P15 bottle of water from Indonesia?

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RISING SUN

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he shine of the Bitcoin has faded as the cryptocurrency market hit a slump early this year. Ever on the lookout for opportunities to multiply returns, many traders shifted their sights on crypto futures and derivative trading platforms after the cryptocurrency drop.

A future, also called a futures contract, “is an agreement to buy or sell a certain product on a fixed date.” A lot of people look at futures as the cryptocurrency market’s way into the traditional financial institutions, mainly because it offers more legitimacy and security. It is more secure because owning a future does not mean you need to own an actual coin, which gets rid of the risk of hacking and theft.

Futures exist within a well-defined legal and operational framework, as it offers transparent reference prices and increased liquidity.

Those who were careful to trade crypto assets before because the

market was essentially unregulated, have now found a safer space for their investments.

But many financial experts are not eager to jump into the bandwagon, and are still encouraging traders and investors to tread carefully. Specific regulations, they say, are still not firmly in place. This means greater risks and the possibility of eventual market chaos and huge losses.

There is always risk when you trade in a lightly regulated market because the environment is not as secure as traditional markets where investors enjoy protection through fixed regulation and policies. In a conventional futures market, for

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example, brokerages (not exchanges) are required to ensure their clients have sufficient margin deposits and that proper risk management and documentation are in place.

When the Chicago Board Options Exchange (CBOE) launched futures trading late last year, its rival Chicago Mercantile Exchange (CME) soon followed, which led to an increase in prices of both Bitcoin derivatives and the coin itself. Yet after the initial increase, Bitcoin prices went downhill.

Today, other crypto derivative exchanges like BitMEX, Bitfinex and EMX, among others, have started getting creative about their offerings. Not only that, many of them have come up with strategies to avoid control by authorities.

In China, for example, where authorities have stepped up monitoring by blocking access to offshore crypto exchanges that provide trading services to domestic investors, mainland investors are trying different strategies that make it impossible for authorities to shut down trading.

As a result, cryptocurrency trading is still popular as a number of China exchanges have registered themselves under different domain

Filipina women–the ultimate disrupters Atty. Lorna Patajo-Kapunan

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

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The future of crypto futures

legally speaking

T

he Filipina Women’s Network (FWN) is a San Franciscobased nonprofit, nonpartisan international advocacy organization that seeks to increase the power and influence of Filipina women as leaders and policy-makers at all levels in corporate and government institutions to achieve economic and social justice and women’s rights.

Since its founding 15 years ago, FWN has conducted a worldwide search for Filipina women who are accomplishing great work leaving a lasting Filipino global imprint through their work in communities, organizations and in their professional and industry sectors. To date, over 1,000 Filipina women who exemplify innovation, mentorship, professionalism, gender empowerment and leadership have been awarded the Global FWN Award.

I am honored to have received the

award in 2016. The awardees come from 30 countries: Australia, Austria, Bangladesh, Belgium, Brazil, Canada, People’s Republic of China (Hong Kong), Czech Republic, Denmark, Hungary, Ireland, Israel, Italy, Japan, Jordan, Mozambique, the Netherlands, Norway, the Philippines, Poland, Qatar, Singapore, South Korea, Sweden, Switzerland, Taiwan, Thailand, United Arab Emirates, United Kingdom and the United States of America.

Filipina women, especially

overseas Filipina workers and Filipina women in the diaspora, are the ultimate disrupters. They disrupted their personal and professional lives and their organizations as they become achievers in their professional fields and broke “glass ceilings.” Filipina women disrupted the business landscape when they innovated products, improved or created services that improved the lives of women and the citizenry.

They disrupted their communities, as they become strong advocates for social issues that affected their families and children.

Filipina women across the world have engaged in culture-spanning and have overcome increased complexity in their work. Filipino women do not back down—once they make up their minds that they will get behind a cause or an issue that will change how we live or aim for that promotion or leadership position—they don’t stop. They’re tenacious. They’re firm. They’re forceful.

And they don’t give up.

This week FWN is in London, UK, which is celebrating 100 years of votes for women. In 1918 The

names, moved their servers abroad and registered their companies offshore.

Investment experts and authorities are concerned that risk management measures to prevent problems are not firmly in place. Additionally, all entities dealing in Bitcoin futures are required to be licensed for Type 2 regulated activity (which means they are dealing in futures contracts) under the Securities and Futures Ordinance. These are applicable for all businesses that target the Hong Kong public.

Only in July, an incident at Hong Kong-based OKEx led to a shortfall that ended up hurting the traders who had to give up 18 percent of their profits to cover the losses. OKEx has declared it would look into changing its “margin system and liquidation procedures so that clawbacks become less frequent.” (Socialized clawback mechanism happens when portion of the profit is taken from other traders, in equal percentage, to cover shortfalls.)

Look back on this story when you find yourself considering investing in crypto futures. There is nothing wrong with exploring new markets, but always do it with wisdom and foresight.

Representation of the People Act and the Parliament (Qualification of Women) Act marked a crucial milestone in the struggle of women in the UK for the right to vote. These two 1918 Acts were not the culmination of women’s struggles, for it would be another 10 years before women’s voting rights were made equal to men’s. It took four decades before women were able to become members of the House of Lords; and, although in the last 20 years many more women have been elected to the Commons, they still make up only a third of the House.

Like in the UK, much more remains to be done in the Philippines.

Although recent surveys indicate that the Filipina women are the most empowered in Asia, we continue to struggle to get as many women as there are men in elective and appointive positions in the government.

There remains more “glass ceilings” to break in the corporate world and in the private sector.

But, the Filipina women are the ultimate disrupters. Nothing for them is impossible—it just takes a bit longer!

www.businessmirror.com.ph

Opinion

A perfect storm

Divestment of LGU property via unsolicited proposals

BusinessMirror

By Alberto Agra

Anthony Alden S. Aguilar

PPP LEAD

DEBIT CREDIT Conclusion

Continued from A1

HE Tax Reform for Acceleration and Inclusion (TRAIN) law, as everyone knows, reduced income-tax rates for individuals, even as it increased the rates imposed under the excise-tax system and rationalized the value-added tax (VAT) rules by expanding its coverage, evidently hoping to offset the revenue losses from one with the additional revenues from the other.

IVESTMENT defined and scoped. Under the COA Circular, a PPP regulation, divestment shall refer to the manner or scheme of taking away, depriving, withdrawing of an authority, power or title of property and other assets of LGUs. For purposes of PPPs, whereby an LGU partners with a private sector proponent (PSP), the property must be held by the LGU under its patrimonial capacity.

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Sadly, the framers of the TRAIN law evidently didn’t take several facts into consideration. The first is that the reduced income-tax rates benefit only a small sector of the population; minimum-wage earners, who make up the lion’s share of employees and workers across the economic spectrum, have nothing to gain from these lower incometax rates, precisely because they don’t pay income taxes at all and their wages won’t increase unless the government says so—and it doesn’t sound like any such increase is in the offing.

But because they’re consumers just like everyone else, they have to contend with escalating retail prices brought about by the new excise tax and VAT rates. I don’t think I’ve ever come across a more contentious situation. It is one thing to increase the rates for one particular type of indirect tax. But to increase the rates for two types of indirect taxes—VAT and excise taxes—which are imposed on so many goods and services, including many basic commodities is, to my mind, tempting the Fates.

All this just goes to show not only what a delicate balancing act the calibration of tax rates really is but that, perhaps, it is time that public finance policies took into account not just the figures generated by increasingly complicated equations and models but also the experiences of the working public, for whom the daily business of survival becomes more challenging with each passing day. Because the uncomfortable truth is that no economic model—no matter how complex—can truly predict the highs and lows of everyday life, and the consumption habits that go with it.

Technical expertise has its value, but the hard-earned wisdom of daily life is something that no one should ignore, underestimate or discount, especially in making decisions that will have a tremendous impact on millions of lives.

Before I sat down to type this column, I had a chat with a friend of mine from my hometown, who told me that his wife was becoming increasingly disturbed at the

The rains of the monsoon may have gone on hiatus for now, but I fear that when the next phase of the TRAIN law— a.k.a. Trabaho—trundles out of the government’s station, its cargo may not be the elements for economic development, but the ingredients for a perfect storm of a different kind. prices she was seeing on almost everything in the local grocery store, from ground beef to fruit juices to laundry soap. She couldn’t shake the feeling, he said, that the worst was yet to come, and I have to admit that I can see where she’s coming from. But my friend and his wife, at least, have the consolation of jobs that pay well enough for them to be able to put food on the table three times a day, with the occasional snacks and gastronomical indulgences in between.

But what about the street sweeper, the taxi driver, the sales person and all those who work in jobs that pay no more than what the minimum wage law decrees?

The rains of the monsoon may have gone on hiatus for now, but I fear that when the next phase of the TRAIN law—a.k.a. Trabaho—trundles out of the government’s station, its cargo may not be the elements for economic development, but the ingredients for a perfect storm of a different kind.

Let’s hope the stationmasters realize this, before we all get caught up like sodden ducks in an economic tempest that not even Gene Kelly warbling “I’m Singin’ In The Rain” can get us through.

Anthony Alden Aguilar is on study leave from The Tax Offices of Romero Aguilar & Associates.

He is a member of the Management Association of the Philippines National Issues Committee and MAP Task Force for Taxation.

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.

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COA Circular requires public auction. Public auction or bidding or solicitation is the preferred procedure under the COA Circular.

There must be adequate publicity, confidentiality of sealed envelopes,

fair evaluation of tenders and posting of proposal guarantees. In case of failure, the LGU can enter into a negotiated sale with the PSP. Under said Circular, this is the only instance where an LGU can

By Paul Sullivan

T

HIS week is the 10th anniversary of the collapse of Lehman Bros., a flashpoint in the financial crisis.

The economy has rebounded since then and the stock market has risen to record highs, but a feeling of caution looms over many investors.

One of them is Dan Rasmussen, a contrarian investor who has marshaled data and historical returns to argue that three of the most popular asset classes for high-net-worth investors are not as desirable as they seem.

Rasmussen, founding partner of Verdad Capital in Boston, has written an article and two reports that make a case against investments in private equity, venture capital and private real estate, and he has piles of data to back up his argument.

“I want to give the advisers the intellectual ammunition to allow them to say, ‘No, I’m not going to put money into these strategies,’” he said.

But some advisers challenge this point of view, saying it is almost akin to market timing. “You could look at

any asset class at any point in time and position it in a way and understand why it’s outperformed or underperformed,” said Scott Stackman, managing director of private wealth at UBS Wealth Management.

Here is Rasmussen’s argument for caution in three areas:

A model past its prime

DURING the financial crisis, Rasmussen worked at Bain Capital, a leading name in private equity. One of his jobs was to collect data on deals by Bain and its competitors to determine why some had done well and others had not.

The more profitable deals were the least expensive ones, he found. The cheapest 25 percent of deals accounted for 60 percent of the funds’ profits. The top 50 percent accounted for just 7 percent of profits. The difference was the price paid for the company. This was not solely for the obvious reason that paying less is better, but because private equity funds typically borrow 60 percent of the purchase price, which affects a company’s profitability.

Rasmussen said he admired the success Bain had in the 1980s and 1990s,

negotiate with a PSP. Divestment as a component of four PPP modes. There are PPP modalities that include divestment of disposition of assets. Under the build-operate-transfer law, the PSP can own the asset under two variants—build-own-operate and rehabilitate-own-operate. In BOO, the PSP is authorized to finance, construct, own, operate and maintain an infrastructure or development facility. In ROO, an existing facility is turned over to the PSP to refurbish and operate, with no time limitation imposed on ownership.

Under the template PPP ordinance attached to Circular 120-2016 issued by the Department of the Interior and Local Government, an LGU can enter into a joint venture or a lease contract with a PSP whereby the latter can own the asset. The difference lies in the timing. In a JV, the transfer of ownership can happen anytime, while in a lease,

Culture eats strategy for breakfast Siegfred Bueno Mison, Esq.

THE PATRIOT

O

RGANIZATIONAL culture reflects why people do things in the company. Culture, which is the soul of any organization, is more felt than seen. Strategy, on the other hand, dictates how people should do things. Taken together, culture and strategy complement each other to achieve the vision of the organization. It is important for any organization to revisit its vision and realign its strategies from time to time to validate their relevance due to the ever-changing environment where we live in.

On the other hand, since companies are built around a culture, culture hardly changes over time unless for compelling reasons. The catchy title, as attributed to management guru Peter Drucker, behooves us to believe that culture is far more important than strategy as manifested by the successful stories of companies like Southwest Airlines, Starbucks, and Nordstrom. But one company, whose culture is so unlike any other commercial enterprise, stands out.

In its 1980 certificate of registration, Coca‑Cola Bottling Co. Consolidated, “CCBCC” for short, distributes, markets and manufactures nonalcoholic Coke, as well as Dr. Pepper, Sundrop and Monster Energy beverages in specific territories in the United States. In the same corporate document, the purpose of CCBCC is to “honor God, to serve others, to pursue excellence and to grow profitably.” David Katz, CCBCC’s erstwhile CFO, who was recently appointed as its president and CEO, said that, among all these

corporate purposes, the most important is that they all “strive to honor God in everything we do.” Their core values include atypical norms of conduct, such as humility, morality, optimism and conviction as CCBCC seeks to develop servant leaders.

Armed with these core values, the corporate culture in this company allows and encourages its employees to voluntarily participate in various “feel-good” activities, seemingly unrelated to the distribution business, such as programs in homeless shelters, prisons, food banks, community beautification programs and work with nongovernment organizations such as Habitat for Humanity.

In direct alignment to its purpose of honoring God, CCBCC supports an organization whose focus is to provide indigenous pastors called Mobile Messengers with the means of transportation so that they may evangelize others in the ministry of Jesus. When asked in an interview whether these activities are welcome in a secular organization like CCBCC, David Katz said that these voluntary

3 investments that may have hit their peak New York Times News Service

Monday, September 17, 2018 A11

but began to question whether the private equity model it had helped pioneer was still sustainable.

When early private equity firms bought relatively small companies at a discount and loaded them up with debt, the amount of leverage on the company was still about four times the company’s earnings before interest, taxes, depreciation and amortization, a measure of profitability known as Ebitda.

Private equity firms continued to apply this strategy, but they were paying more for the companies, and consequently the amount of debt was rising to more than six or seven times Ebitda.

With leverage at 10 times Ebitda, Rasmussen found, a company’s free cash was almost all going toward debt service, and it was nearly impossible to be profitable.

A recent example is Toys “R” Us, which Bain, KKR and Vornado Realty Trust acquired for $6.6 billion in 2005. When it filed for bankruptcy in 2017, the toy company said it had $5.3 billion in debt, and was paying $400 million in annual debt service payments.

Rasmussen said the sector would look worse if not for a few high-performing

funds that pulled up overall returns.

“It’s probably the worst time ever to invest in private equity,” he said. “And now, it’s being packaged for wealth management firms and registered investment advisers.”

According to PitchBook Benchmarks, which gathers data on private equity investments, only 25 percent of funds have been outperforming the market, and have done so by a smaller amount.

Stackman of UBS said he was still putting money into private equity and hedge funds for certain clients, and reducing their investments in public equities or fixed income.

“I don’t know if I’d term it as a true shift,” he said. “This is our belief in how the high-net-worth clients could and should be invested.”

Rasmussen said the funds that still provided high returns equal with the risk were generally smaller ones that acted more like the owners of the companies they bought and didn’t just add debt to increase returns.

At his own firm, Rasmussen said, he modeled the strategy on what private equity funds were doing in the 1980s

the purchase option is at the end of the lease period.

In these cases, divestment as a feature of these four modalities can be part of a PPP award obtained through solicitation or UPs. Straight divestment. What is not popularly known is a decision of the COA rendered in 2009 (No. 200964), promulgated 20 years after the issuance of the COA Circular, whereby the government audit agency did not interpose any objection and thus permitted the sale of government property via a Swiss or competitive challenge. Here, divestment is independent of any PPP modality.

For as long as the competitive challenge process approximates the nature and requirements of a public bidding, which are essentially transparency and competitiveness, and COA approval is secured pursuant to Section 380 of the Local Government Code of 1991, then straight divestment through UPs can be done.

activities are offered not to promote a certain religion. These activities allow employees to be more aware that their company is more about faith-based discipleship in a sense that, whenever they serve others and honor God, the company can be profitable in the process. Hence, most if not all of CCBCC employees participate in such events, willingly and happily. And such activities are reflective of the pervading culture of CCBCC. Whatever its strategies, goals, objectives, or income targets set ever year, the culture of this company has mandated that each day will never be business as usual. It comes to no surprise that CCBCC is now the largest independent Coca‑Cola bottler in the United States. In recognition for such corporate culture, Shining Light, an awards organization, said: “Coca-Cola Bottling Company Consolidated is helping to change lives—both in their communities and for eternity.”

In the Bible, Proverbs 16:3 tells us, “Commit to the Lord whatever you do, and He will establish your plans.”

Founded, created and operated by less than a handful of millennials in California, Shareably is a Facebook page with more than 3 million followers. It began as a gateway for controversial news discussed over traditional media but soon evolved as a page where uplifting stories are shared on a daily basis. I do not know why its creators decided to change its course and opted to only publish inspiring stories. Today, topics include animal welfare, student experience, daily parking lot or supermarket encounters, environmental issues and some of the simplest yet thought, provoking real-life stories collected from open sources and edited by Inno Asuncion. A business graduate of the

University of California in Berkeley, Inno started his professional career working for a reputable consulting firm in New York. Likely enticed by the opportunity to work in California and be a major player/contributor in an upstart venture, Inno joined Shareably and contributed as many heartwarming stories as he could.

With much success of Shareably in recent years, Inno now does more of the editing of the stories written by the many part-time writers dedicated to promote optimism around the world!

Shareably’s culture has allowed its creators to stay true to their vision of sharing positive stories online while earning money. Incidentally, Inno is my nephew, whose good nature and cool demeanor can be likened to his favorite tennis player, Roger Federer.

I am not sure whether CCBCC and Shareably conduct a strategic planning session annually. And if they do, I am not sure whether these entities change their cultures to address the dynamic environment they operate within. From my perspective, these organizations do not suffer from any identity crisis. They know their reasons for existence and the purpose of their actions. Seeing that their core values are anchored on God, these organizations will likely be prosperous regardless of their business strategies. For it is written in Proverbs 16:9, “In their hearts humans plan their course, but the Lord establishes their steps.”

So what does “culture eats strategy” mean? For me, it means that a strategic plan can be accomplished as long as the culture supports the strategy. Likened to a ship, if the leadership is its steering wheel and the strategy is its compass, then culture is its anchor. Anyone can only go as far as its anchor allows it to.

and 1990s: buying smaller companies at cheap prices and putting a reasonable amount of debt on them. In Verdad’s case, Rasmussen focused on buying publicly traded companies with a small market capitalization.

Verdad’s main leveraged company fund lagged its small-cap benchmark in the first two quarters of this year but kept pace with a broader global benchmark.

Over the past three years, the strategy has beaten both the small-cap and global benchmarks by 6 percentage points.

difficult it is to find those funds that are going to consistently make the big winning investments.

An inconsistent pattern

THE argument against venture capital is less nuanced. Top private equity funds are still delivering high returns, but venture capital funds have largely functioned as what Rasmussen calls “a rich man’s lottery.”

The venture capital firm Benchmark, for example, invested $6.7 million in eBay in 1997. That investment grew to $5 billion in two years, outshining other investments.

Any venture capitalist will argue that the big winners make up for all the bets that did not pay off. Rasmussen does not dispute that; he emphasizes how

Higher fees mean lower returns

RASMUSSEN draws a distinction between real-estate owned by private equity firms and real estate investment trusts. And for him, the difference in returns comes down to fees. A REIT typically charges a management fee of less than 1 percent. A fund that owns real estate will charge a typical private equity fee, which can be as high as 2 percent to manage the money and 20 percent of the profits. “By and large, it’s a pretty efficient asset class, since rental income is a fixed contract,” he said. So fees play a big role in the difference in returns.

Another view

EXCLUDING entire asset classes can be a tough sell, some financial advisers say. Investors should be asking instead whether an asset class is performing as it should.

“You could put together a low-volatility portfolio of hedge funds, and they will get very consistent return,” Stackman of UBS said.

2nd Front Page BusinessMirror

A12 Monday, September 17, 2018

www.businessmirror.com.ph

Post-Ompong: Army chief told to head NFA

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By Bernadette D. Nicolas

@BNicolasBM

RESIDENT Duterte has asked the Philippine Army chief to be the next head of the National Food Authority (NFA) and rationalize its “idiotic” structure.

Lt. Gen. Rolando Joselito D. Bautista, commanding general of the Philippine Army and former commander of the Philippine Secu-

rity Group, is set to take the helm from Jason Y. Aquino, the former administrator of NFA. A ccord i ng to P resident i a l

Spokesman Harry L. Roque Jr., Bautista’s appointment as NFA administrator should be effective on his retirement on October 15.

“Rolly is kind. In the meantime that I cannot place you in Central Bank, maybe you can serve in NFA, to rationalize the idiotic…. So that it will be planned. Make it structural,” he told Bautista, who attended the situation briefing in Cagayan on the aftermath of Typhoon Ompong.

This was after Labor Secretary Silvestre H. Bello III lamented during the briefing the implication of having no NFA administrator at the time that the country was hit

by Ompong.

The President said in his televised interview last week with Chief Presidential Legal Counsel Salvador S. Panelo that it was Aquino who asked to be relieved from the post.

Duterte said Aquino is “tired” and can’t keep up with how things are going with the NFA, adding that he and Aquino also had “disagreements” all the time.

During his interview with Panelo, the President already hinted about his preference for the new NFA administrator when he said that he was just waiting for someone to retire.

Previously, Aquino has been facing resignation calls for the agency’s

Will EO lifting nontariff barriers bust inflation? Analysts split

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S the government moves to arrest inflation, which surged to a nineyear high in August, analysts are split on their views on the possible executive order to be issued by the President.

The draft executive order submitted last week by the Economic Development Cluster (EDC) to the President dealt with removal of the administrative constraints and nontariff barriers on food items, such as fish, rice, sugar, meat and vegetables, which were considered as major contributors to inflation in the past two months.

The executive order (EO) is expected to address supply issues driving inflation and quicken implementation of immediate and short-term measures proposed

by EDC. Without the nontariff and administrative barriers, the entry of imported items in the country is expected to speed up.

Economist Calixto V. Chikiamco said the government is on the right track with its recent move to curb inflation.

“It’s the right move because more supply from abroad can help meet demand at home, tempering inflation. Inflation should moderate in the coming months,” Chikiamco told the BusinessMirror.

However, he pointed out that the government should focus more on the

growing current account deficit, which has hit $3 billion in the first semester, breaching the Central Bank’s annual target in six months.

“Growing current account deficit portends sharp falls in peso vis-à-vis US dollar and vulnerability to speculative attacks on the peso,” he added.

The local currency also weakened to a 12-year low at 54 to $1 last week.

The trade deficit for the first seven months of the year was also the highest recorded in history for all the sevenmonth trade deficits, according to the Philippine Statistics Authority.

The country’s trade deficit from January to July jumped to a record $22.49 billion. A trade deficit happens when the total value of country’s imports exceeds its exports.

De La Salle University Economics Professor Maria Ella C. Oplas backed the government’s plan, saying that removal of free-trade barriers is “consistent to our move towards free trade.”However, she said the government and local industry should make sure that the local industry is up to it and is willing to undergo innovation.

“Free trade will always be good because it spurs competition which will force local industries to wake up, straight-

SOUTHWEST MONSOON AFFECTING SOUTHERN LUZON AND VISAYAS as of 5:00 am - September 16, 2018

en up and compete,” she told the BusinessMirror. “ The job of our government is no longer limited to protecting our local industries but making sure that there is healthy competition, that is why we have the Philippine Competition Commission.”

Price ceilings BUT for Jose Enrique A. Africa, executive director of IBON Foundation, imposing price ceilings is a more appropriate move for the government if its wants to curb inflation, since it would not just bring immediate relief to consumers but also preempt profit-seeking of cartels and exploitative businesses.

“Imposing a well-studied price ceiling sends a strong signal that the government believes that accelerating inflation is a problem and that it is willing to take decisive measures to arrest this,” Africa told the BusinessM irror in a message.

But, he said, the Duterte administration is not keen on doing this. “The Duterte administration does not want to set price ceilings likely because, somewhat callously, it does not really think that the inflation situation is all that bad.

The economic team is also ideologically averse to market interventions despite this being necessary not just in crisis

situations but also for long-term agricultural and industrial development,” he said.

Asked to comment on imposing price ceilings, a move that is also supported by some senators, particularly on rice, Chikiamco said: “Price ceilings will drive away supply, worsening inflation.”

Despite the government’s apparent non-imposition of price ceilings, Africa is not ruling out the possibility that the current proposed measures may or may not temporarily moderate inflation.

Long-term consequences will be food insufficiency, worsening dependence on imported food,and greater rural poverty, Africa said.

He also warned that the draft EO— based on news reports—gives the impression of the permanent removal of administrative constraints and nontariff barriers.

“The draft food EO is consistent with these decades of agricultural liberalization if it will remove remaining protections in the form of administrative constraints and nontariff barriers. The steady flow of imports will displace domestic agriculture kept uncompetitive by long-standing poor government support—for instance, chronically being given less than 4-5 percent of the national budget,” he said.

Importation should only be a shortterm emergency measure if it is established that domestic supply in specific commodities is not enough, Africa said.

He also reiterated the call to suspend the Tax Reform for Acceleration and Inclusion (TRAIN) law, which was blamed by some sectors for the increase in prices of goods.

“The administration has to be more forthright about the causes of inflation, especially those that are within its immediate control. The TRAIN law should be suspended at the very least to remove the inflationary effect of the first tranche of higher consumption taxes in January 2018 and avert further inflationary surges upon the next tranches in January 2019 and January 2020,” he said.

He also urged the administration to provide substantial support for domestic agriculture and real efforts to improve the efficiency and effectiveness of government interventions, noting that, over the last four decades, the “market-based approach” of the government has been to liberalize agriculture but without the requisite government support to lower costs and improve supply.

He also stressed that vital government mechanisms like the National Food Authority “have not just been diminished but allowed to fall into corruption and inefficiency.” “ The long-term solution, is of course, to not just give lip service to agricultural development for the administration to put its money where its mouth is,” he said.

“Neighboring countries, including our most important sources of rice, Thailand and Vietnam, have long been doing this rather than be fixated on outdated, impractical and ineffective liberalization policies.”

The country’s year-to-date inflation is already at 4.8 percent, with August inflation at 6.4 percent, which went beyond government expectations. Development Budget Coordination Committee Chairman and Budget Secretary Benjamin E. Diokno earlier said the Committee may also meet this month to revise its inflation forecast and GDP target for the year to reflect recent developments, including the country’s first-half growth rate at an average of 6.3 percent. Bernadette D. Nicolas

alleged incompetence in handling the rice situation and for the delays in rice importation.

Aerial inspection

PRIOR to the situation briefing, the President also conducted an aerial inspection of Ompong-stricken areas in Cagayan.

Presidential Adviser on Political Affairs Francis N. Tolentino, who was appointed by the President as his conduit during Typhoon Ompong, also reported no casualties so far in Isabela, Quirino and Aurora. However, there were at least a total of 24 casualties in other areas, including Nueva Vizcaya, Ilocos Sur, Kalinga

and in Cordillera Administrative Region (CAR) because of landslides and soil saturation because of rainfall.

After hearing this report, the President said: “I share the grief of those who have lost their loved ones.” Despite this, the President said he is pleased with the turnout of government’s preparedness at the time of disaster.

“This is not really to minimize or maybe downgrade the damage but compared with what I have seen in the past, we thank God that this is what just happened to us,” he said. “It was not so severe as we expected it be.”

Continued on A2

OWWA has ₧100M for typhoon-hit OFW kin; DFA helps the stranded

By Samuel P. Medenilla sam_medenilla

& Recto Mercene

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@rectomercene

HEOverseasWorkersWelfare Administration (OWWA) has allocated P100 million to provide cash aid to overseas Filipino workers (OFWs) and their families affected by Typhoon Ompong (international code name Mangkhut).

In a phone interview, OWWA Administrator Hans J. Cacdac said they are now coordinating with the National Disaster Risk Reduction and Management Council (NDRRMC) for the implementation of their Welfare Assistance Program (WAP) in typhoon-hit areas.

WAP was launched in 2016 to give financial support to the families of OFWs in case they suffer from disability, medical emergency or calamities.

“Once we have a complete list of the worst-hit areas [from the NDRRMC], we will provide calamity assistance to the OFW families,” Cacdac said.

Since its implementation, Cacdac said WAP has already benefited 250,000 OFW families affected by various calamities, including typhoons Lawin and Nina.

The program always has a P100million fund, which is regularly replenished by the OWWA Board of Trustees. Besides cash aid, Cacdac said OFWs whose flights were delayed because of the typhoon could also ask for help by calling OWWA’s hot line 1348.

For its part, the Department of Labor and Employment will extend its cash-for-work assistance for workers and farmers displaced by Typhoon Ompong.

Typhoon Ompong entered the Philippine Area of Responsibility (PAR) last week and swept through Norther n Luzon. A s of Sunday morning, authorities reported it killed at least five people and affected over 250,000 others.

OFWs in HK warned

AS it exited the PAR, Ompong went barreling toward Hong Kong, where the Department of Foreign Affairs (DFA) asked the Filipino community to take precautions.

The Philippine Consulate General in Hong Kong has called on the 227,000 Filipinos in the Special Administrative Region to stay indoors and defer any planned travels or outdoor activities, according to the DFA in Manila.

Consul General Antonio Morales further advised Filipinos to monitor weather bulletins and heed instructions by local authorities. He also said that in the event of T8 or T10 being hoisted, the Consulate will be closed, and all passport appointments and other transactions scheduled on

227,000

The number of Filipinos in the Special Administrative Region who were advised by the Philippine Consulate General in Hong Kong to stay indoors and defer any planned travels or outdoor activities, as Mangkhut barreled its way to HK Monday will be accommodated anytime during the Consulate’s business hours.

Other activities and events scheduled on Monday will also be canceled and rescheduled should the alert level be raised. The Consulate will monitor the typhoon situation and coordinate with Hong Kong authorities as necessary, and stands ready to provide assistance if needed. In case of emergency, Filipinos in Hong Kong were advised to call 999 or the Consulate hot line at +852-9155-4023.

DFA cash aid

MEANWHILE, the DFA has also informed OFWs affected by flight cancellations owing to Ompong that they could avail themselves of P5,000 in cash assistance if they personally appear at the DFA Assistance Desks at the Ninoy Aquino International A ir port (Naia) and the Clark International Airport.

OFWs may personally claim the DFA cash assistance at its desks at Terminals 1, 2 and 3 of the Naia and the Departure Terminal at the Clark International Airport until 10 p.m. on Monday, September 17, after which they could file their claims at the Office of Migrant Workers Affairs at the DFA Main Office in Pasay City and in DFA Consular Offices nationwide until September 30.

To claim the cash assistance, affected OFWs must submit their passport, airline ticket showing their original date of departure; reissued ticket showing new date of departure; Employment Contract; and Overseas Employment Certificate.

As of September 15, the DFA has distributed cash assistance to 43 OFWs. More are expected to file claims with the cancellation of flights to Hong Kong on Sunday.

The DFA teams will remain in the airport terminals until September 17 (Monday) from 10 a.m. to 10 p.m to cater to the needs of stranded OFWs. Other stranded OFWs may claim their cash assistance from the DFA Office of Migrant Workers’ Affairs in Pasay City and all DFA Consular Offices around the country from 8 a.m. to 4 p.m., from September 17 to 21.

Editor: Efleda P. Campos

Companies BusinessMirror

Monday, September 17, 2018

B1

DOE certifies 2 more power projects as ‘nationally significant’

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By Lenie Lectura

@llectura

HE Department of Energy (DOE) has certified two more power projects as “Project of National Significance” under Executive Order (EO) 30.

On September 11 the agency approved the application of Atimonan One Energy Inc., a wholly owned subsidiary of Meralco PowerGen Corp.

(MGen), the power generation arm of Meralco.

Atimonan is putting up the country’s first ultra-supercritical coal power plant in Atimonan, Quezon.

The facility’s capacity is 2 x 600 megawatts (MW).

The Atimonan project, MGen President Rogelio Singson, said is shovel-ready to start construction.

The DOE also declared the 151.2-

MW Talim wind-power project of Island Wind Energy Corp. as “a project of national significance.”

The project, still in its predevelopment stage, was certified under EO 30 on August 30. It is located in Talim Island, Binangonan and Cardona, Rizal. The target commercial operations date of the first 80-MW plant is in June 2020 and the 70-MW plant in June 2021.

The DOE earlier declared the Kalinga geothermal-power project of Aragorn Power and Energy Corp. , the power unit of Sy-led APC Group

Inc., as an energy project of national significance.

The DOE approved Aragorn’s application on August 14.

The project is in its predevelopment stage, involving the development of steam fields that can generate anywhere between 100 MW and 200 MW. In May the DOE certified the Visayas-Mindanao Interconnection Project (VMIP) as the first power project under EO 30.

The VMIP involves the interconnection of the Visayas and Mindanao via Cebu and Zamboanga. The project is estimated to be completed in 46 months with an estimated cost of P52 billion.

The Visayas-Mindanao interconnection project is meant to interconnect the major grids into a single national grid expected to help improve the overall power-supply security in the country as sharing of reserves will already become possible.

EO 30 states that concerned government agencies shall act upon applications for permits involving Energy Projects of National Significance (EPNS) not exceeding a 30-day period. If no decision is made within the specified processing time frame, the application is deemed approved by the concerned agency.

This effectively reduced the time to process the permits needed for power projects to take off.

In order for an energy project to be considered among the EPNS, power generation and transmission projects must have a capital investment of at least P3.5 billion, significant contribution to the country’s economic development, significant consequential economic impact, significant potential contribution to the country’s balance of payments, significant impact on the environment, complex technical processes and engineering designs, and significant infrastructure requirements.

ABS-CBN studio experience store seen boosting company earnings

By Lorenz S. Marasigan @lorenzmarasigan

T

HE newly opened studio experience store— similar to a small and enclosed theme park attraction—of ABS-CBN Corp. is expected to boost the company’s revenues amid thinner ad earnings, a company official said.

Maria Rosario S. Bartolome, who sits as president at ABS-CBN Themed Experiences Inc., led the opening of the ABS-CBN Studio Experience

or Studio XP, an indoor amusement park that boasts of 15 attractions akin to its television shows and movies.

The first Studio XP is situated in a 1,400-squaremeter area inside the Trinoma Mall, Quezon City.

Bartolome said the investment for the said store is “significantly lower” than that of ABS-CBN’s initial capital for Kidzania.

She noted her group hopes the new business— the last vertical for a network, as she claimed— would be one of the main drivers of the consumer-

business revenues of the multimedia company.

“We hope it to become one of the key drivers for the business,” Bartolome said.

The company is currently beefing up its consumer business verticals given that ad revenues were thinner this year, when compared to last year.

Advertisers are limiting their ads due to slower consumer sales, as prices of goods and services continue to soar with inflation and the tax-reform law introduced this year.

Studio XP is divided into three studios: Fantasy,

Reality and Retail. Guests can play games, sing songs and talk to celebrities on the phone or via augmented reality through the various attractions inside the park.

Bartolome added this will be a test case for the prospect of opening an outdoor park, similar to Universal Studios and Disneyland. ”It’s a bit early in the game. While we’re thinking about it, there are no concretes plans yet because we want to see how this one works before we start the plans for the expansion,” she said.

Rockwell sells half of ₧6.2-B Aruga Mactan, Cebu, residential project

By VG Cabuag

@villygc

R

OCKWELL Land Corp., the property development arm of the Lopez Group, said it has already sold half its residential units in Aruga Resort and Residences in Mactan, Cebu, where most of the country’s top resort developers are clustering to create a destination.

Christopher Gecha, the company’s assistant vice president and Cebu project development head, said its P6.2-billion project generated a lot of interest among the buyers just a month after its launch in August.

The project has 200 upscale residential units and 250 hotel rooms, which also include units for sale.

Rockwell’s first residential-resort development is located on a 4.7-hectare property along Punta Engaño.

“With its unique property layout and design and an expansive 200-meter beachfront, the project is set to elevate the Mactan leisure and lifestyle experience,” the company said.

Gecha said the residential component of the project consists of one-bedroom units with a total area of 67 square meters (sq m), two-bedroom units with 101 sq m each and three-bedroom units with 161 sq m each.

He said most of their buyers are Cebuanos, although buyers from Metro Manila are catching up and now comprise almost half of those who have reserved units.

The Lopez property is among those with larger frontage facing the ocean, alongside with the development of Andrew Tan, the Gokongweis and the Gotianun groups and also Dennis Uy’s resort and casino development. Most of the area, however, have no beach, so developers are creating an artificial beach, by importing sand from somewhere else and piling this within their respective property.

Gecha said they have also sold 45 percent of the fourth tower of their first foray in Cebu, the P4-billion property at 32 Sanson by Rockwell in Lahug.

In 2014 the low-density, midrise project 32 Sanson launched its first two towers, Gmelina and Raffia.

With the market’s positive reception of the Rockwell brand in Cebu, these two towers, which have sold out and been turned over in 2016, have residents and investors comprising Rockwell’s first growing community in Cebu.

The company recently launched its third tower, called Buri, with a few units remaining, and will be turned over to its owners by 2019.

Last year it launched the fourth tower, named Solihiya, and is still receiving positive feedback, it said.

Gecha said the company will launch its fifth building, the last in the complex, within the next two years.

He said Rockwell is scouting for sizable properties to develop in Cebu as they continue to be bullish about the prospects of the local economy.

Fullerton Health local units acquire $40-M loan from IFC to improve health care in PHL

F

OUR months after Fullerton Healthcare Corp. Ltd. (Fullerton Health) entered the domestic market, its local subsidiaries Fullerton Health Philippines Holdings Corp. and Fullerton Health Philippines Pte. Ltd. have secured a long-term loan worth $40 million from the International Finance Corp. (IFC) to develop more of its vertically integrated managed care strategy in the country.

This investment from a member of the World Bank Group will help these business units to enhance their provision of affordable yet quality health care and

improve efficiencies in the health maintenance organization (HMO) market. “Garnering the support of IFC as a long-term financing partner is a strong testament of what we have achieved, thus, far in the health-care sector across Asia Pacific, and validates our strategic partnership with the Intellicare Group to deliver a holistic approach to managed health care in the Philippines,” said Tam Chee Chong, CFO of Fullerton Health.

The credit facility will bankroll the expansion of one of the leading HMOs in the country, significantly increasing its reach. Roderick L. Abad

AboitizPower in discussion with 2 firms interested to buy 8.8 MW of power from Aseagas

A

BOITIZ Power Corp.

(AboitizPower) is hoping to sell its 8.8-megawatt (MW) biomass-power plant operated by its wholly owned subsidiary Aseagas Corp. (Aseagas) this year.

AboitizPower Chief Operating Officer Emmanuel Rubio said last week the company is in talks with two interested firms.

“We are talking to two interested parties—one local and one foreign entity—that would probably look into a partnership with a local firm,” Rubio said. The proposals sent by the interested firms are being evaluated. “One is doing due diligence. We’re making them go into a race. If they are interested, it will happen,” the company official said.

The target date to close the transaction could be within the year, Rubio said. It is also possible, he added, that Abotiiz could partner with any of the interested firms to operate the facility once more.

“We’re not closing ourselves with an option, which is the joint venture. But if we can sell it and if we can close it within the year, we can do that. If not, we’ll look on operating it again.

We’ll see. We’re not closing that option,” Rubio said.

The plant in Lian, Batangas, ceased operations on November 24, 2017, due to the unavailability of the supply of organic effluent wastewater from Absolut Distillers Inc. AboitizPower said Aseagas has prepaid its outstanding loan with the Development Bank of the Philippines in the amount of P2.368 billion.

On top of it, the company also invested equity of around P950 million for the biomass plant and has around P460 million in outstanding liabilities.

Thus, the total value affected as a result of the closure is estimated to be at P3.7 billion, which represents Aseagas invested equity of P3.45 billion and the company’s estimated remaining obligations of around P250 million.

Aseagas is a subsidiary of AboitizPower, through Aboitiz Renewables Inc., its holding company for its investments in renewable energy.

AboitizPower is the holding company for the Aboitiz Group’s investments in power generation, distribution and retail electricity ser vices.

Lenie Lectura

Companies

B2 Monday, September 17, 2018

www.businessmirror.com.ph

Kuya J launches franchise program

By Roderick L. Abad

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Contributor

@rodrik_28

O further expand its footprint nationwide, casual-dining bistro Kuya J Restaurant has launched its franchise program, giving potential franchisees a chance to own an outlet of this homegrown brand at a minimal cost.

Per this offering, Kuya J Group Holdings Inc. (KJGHI), owner of the restaurant chain, could shoulder up to 70 percent of the capital requirement through an in-house financing program.

Also, it covers business-development support, service-training pro-

grams, management systems and marketing programs.

The loan term is for five years, with an interest rate of 8 percent annually.

A franchisee can pay the balance of 30 percent using the store’s operating revenues.

The total investment ranges from

P10 million to P15 million, depending on the area, location and format of the store. It includes a franchise fee of P1.2 million and a service fee of P300,000.

Kuya J’s franchise term is for 10 years, which is renewable upon management’s approval with applicable fees.

“I’d like to believe that we’ve not only created a restaurant that serves the best-tasting dishes; we’ve also made a home for one big happy family that shares the same values,” KJGHI President Winglip K. Chang said during the franchise program’s official launch held at the SMX Convention Center, SM Aura Premier in Bonifacio Global City last week.

“We open our home to welcome more members, partners and entrepreneurs like you into our growing family. Much like how we grew this

home to more than 100 stores in less than three years, truly a great accomplishment by Kuya J,” he added.

The group currently owns and operates 104 Kuya J restaurants nationwide, 44 of which are located in Metro Manila; 24 in South Luzon; 15 in North Luzon; 11 in the Visayas; and 10 in Mindanao.

It is w idely patronized for Filipino dishes like its best-selling crispy pata, kare kare, caldereta and halo-halo.

KJGHI also owns and operates concept stores, such as Isla Sugbu Seafood City, Tsay Cheng Chinese Cuisine, Majestic and the heritage Grand Convention Center of Cebu, among others.

Just recently added in its portfolio of brands is United Statesbased Popeyes, one of the leading chicken quick- service restaurants in the world.

DOJ okays filing of estafa charges vs Indonesian bizmen

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HE Department of Justice (DOJ) has approved the filing of syndicated estafa charges against Indonesian businessmen headed by Shadik Wahono and four others for allegedly duping their former partner San Miguel Holdings Corp. (SMHC) in the amount of P32.6 million.

In a 21-page resolution approved by Acting Prosecutor General Richard Fadullon, the DOJ found probable cause to indict three Indonesians Wahono, Dodik Marseno Catur Utomo and Sahra Mayor, along with two Filipino respondents Alvin Bugtas and Joel Rayos, before the Mandaluyong Regional Trial Court.

The DOJ recommended no bail

against the accused for the crime of syndicated estafa.

The case stemmed from the complaint filed by Citra Central Expressway Cor p. (CCEC) and SMHC in connection w it h t he St age 3 Met ro Manila Sky way Project, which is intended to be an elevated roadway f rom Buend ia Avenue in Makati City to Balintawak in Quezon City whose main purpose is to connect the North Luzon Expressway to the South Luzon Expressway.

CCEC was incorporated on November 16, 2012. Its incorporators and directors included Utomo, Mayor and Bugtas.

Its incorporation was estab-

STOCK-MARKET OUTLOOK LAST WEEK

SHARE prices continued its plunge last week, with the main index losing more than 2 percent, as investors take profits.

The benchmark Philippine Stock Exchange index fell 185.49 points to close at 7,413.15 points.

The main index was down almost all week long except on Thursday, when it gained 68.17 points, but lost all of those gains by the end of the week as the country prepares for the havoc of Typhoon Ompong in Luzon.

Except for Monday, when value of trade reached P7.4 billion, trading was lackluster all week, only averaging at P5.88 billion, while foreign investors were net sellers at P3.53 billion.

Except for the Mining and Oil index that gained 123.61 to 9,717.24, all other subindices ended on the red, led by the All Shares index that fell 101.12 points to 4,555.3.

The Financial index dropped 49.12 to 1,667.29; the Industrial index declined 294.47 to 10,948.94; the Holding Firms index plunged 263.79 to 7,251.91; the Property index was down 57.83 to 3,694.4; and the Services index gave up 8.23 to 1,517.51.

Losers edged gainers 176 to 55, and 17 shares were unchanged.

Top gainers were IRC Properties Inc., Liberty Flour Mills Inc., Vulcan Industrial and Mining Corp., Manila Jockey Club Inc., PXP Energy Corp. and Melco Resorts and Entertainment (Philippines) Corp.

Top losers were Berjaya Philippines Inc., Harbor Star Shipping Services Inc., Easycall Communications Philippines Inc., STI Education Systems Holdings Inc. and Centro Escolar University.

THIS WEEK

SHARE prices are seen to consolidate this week after two successive weeks of steep decline, with the main index dropping at its resistance level of 7,500 points.

“We’ll need to keep safe, watch out for and assess the typhoon damage last weekend. September’s inflation figure could be adversely affected if the damage to rice harvests is significant enough,” said Gio Perez, trader at Papa Securities Corp.

Meanwhile, broker 2TradeAsia said the latest softness in prices “presents good windows for seasoned investors who believe on the Philippines’s historical ability to overcome sentiment troughs.”

“While gauges go on ‘stabilization mode,’ it would be good to focus on sectors whose top line expansion is unperturbed, despite macro headwinds,” it said.

“There are other major industry news to look forward to, among which includes the third telco player bid, on top of major infra tickets that are starting to gain traction, such as Bulacan/Davao, Panglao airports and Naia Consortium’s original proponent status,” it said.

Immediate support for the main index is seen at 7,230-7,350 and resistance at 7,500-7,550.

STOCK PICKS

BROKER Regina Capital and Development Corp. recommended to buy the shares of Ayala Corp. when its support price of P890 per share holds.

“The stock has been trading below both short- and long-term moving for five trading days now. Indicators mostly show bearish signals,” it said.

It placed a weekly price target for the conglomerate at P900 per share.

Shares of Ayala closed at P898 per share on Friday.

Meanwhile, it gave the same recommendation for the stock of Bank of the Philippine Islands, whose shares have trading downwards for two weeks now.

“As it approaches its support at P85, hence, the stock price has plateaued in the past two days,” the broker said.

It placed a weekly target price and support of the stock at P85 per share.

BPI’s shares closed last week at P86 apiece. VG Cabuag

lished pursuant to the agreement between the Philippine National Construction Corp. and PT Citra Lamtoro Gung Persada to implement the Skyway Stage 3 Project.

On June 9, 2014, Utomo, acting as chairman of CCEC’s board of directors, called a meeting and ex-

MUTUAL FUNDS

plained the need for the corporation to enter into a project management with a consortium composed of Renardet SA Design Science Inc. a nd Destra Ma nagement a nd Consultancy Services Inc. for the construction of Skyway 3 Project.

Joel R. San Juan September 14, 2018

NAV ONE YEAR THREE YEAR FIVE YEAR Y-T-D

PER SHARE RETURN* RETURN STOCK FUNDS ALFM GROWTH FUND, INC * 254.86 -8.45% 0.81% 2.24% -13.08% ATRAM ALPHA OPPORTUNITY FUND, INC.* 1.437 -12.55% 5.4% 2.6% -10.01% ATRAM PHILIPPINE EQUITY OPPORTUNITY FUND, INC.* 3.9666 -9.44% 2.22% 0.86% -13.63% CLIMBS SHARE CAPITAL EQUITY INVESTMENT FUND CORP.* 0.9005 -10.51% N.A. N.A. -11.46% FIRST METRO CONSUMER FUND ON MSCI PHILS. IMI, INC. * ********* 0.8365 N.A. N.A. N.A. N.A. FIRST METRO SAVE AND LEARN EQUITY FUND,INC.* 5.2743 -6.86% 0.53% 1.32% -12.29% MBG EQUITY INVESTMENT FUND, INC. * ****** 115.2 N.A. N.A. N.A. N.A. ONE WEALTHY NATION FUND, INC.* 0.8412 -13.05% N.A. N.A. -15.26% PAMI EQUITY INDEX FUND, INC.* 49.7184 -6.79% 2.04% N.A. -11.83% PHILAM STRATEGIC GROWTH FUND, INC.* 516.13 -7.98% 0.54% 0.62% -12.29% PHILEQUITY DIVIDEND YIELD FUND, INC.* 1.2658 -5.07% 2.47% N.A. -9.86% PHILEQUITY FUND, INC.* 36.911 -4.28% 2.91% 3.9% -10.18% PHILEQUITY PSE INDEX FUND INC.* 5.004 -6.11% 2.81% 4.06% -11.81% PHILIPPINE STOCK INDEX FUND CORP.* 835.19 -6.61% 2.56% 3.77% -11.69% SOLDIVO STRATEGIC GROWTH FUND, INC. * 0.8601 -6.77% -0.14% N.A. -11.06% SUN LIFE PROSPERITY PHILIPPINE EQUITY FUND, INC.* 4.1047 -5.51% 2.33% 2.61% -10.38% SUN LIFE PROSPERITY PHILIPPINE STOCK INDEX FUND, INC.* 0.9636 -6.54% 2.65% N.A. -11.86% UNITED FUND, INC.* 3.5191 -3.15% 3.64% 2.29% -9.63% EXCHANGE TRADED FUND FIRST METRO PHIL. EQUITY EXCHANGE TRADED FUND, INC.* *** 111.6063 -5.7% 3.8% N.A. -11.39% ATRAM ASIAPLUS EQUITY FUND, INC.** $0.9927 -6.32% 4.37% 0.85% -10.43% SUN LIFE PROSPERITY WORLD VOYAGER FUND, INC.* $1.2876 7.22% N.A. N.A. 1.77% BALANCED FUNDS PRIMARILY INVESTED IN PESO SECURITIES ATRAM DYNAMIC ALLOCATION FUND, INC.* 1.6659 -7.56% -2.37% -1.28% -10.6% ATRAM PHILIPPINE BALANCED FUND, INC.* 2.2313 -6.85% 0.95% 0.86% -9.19% FIRST METRO SAVE AND LEARN BALANCED FUND INC.* 2.5369 -5.26% -1.68% -1.8% -8.41% GREPALIFE BALANCED FUND CORPORATION* **** 1.3267 -6.27% N.A. N.A. -8.81% NCM MUTUAL FUND OF THE PHILS., INC* 1.8477 -3.68% 1.04% 0.79% -7.27% PAMI HORIZON FUND, INC.* 3.5467 -6.78% -0.48% -0.24% -9.48% PHILAM FUND, INC.* 15.8697 -7.25% -0.59% -0.23% -9.61% SOLIDARITAS FUND, INC.* ******** 2.0685 -4.83% 1.07% 2.6% -7.74% SUN LIFE OF CANADA PROSPERITY BALANCED FUND, INC.* 3.6822 -4.38% 0.58% 1.15% -7.86% SUN LIFE PROSPERITY DYNAMIC FUND, INC.* 0.94 -4.49% 0.34% N.A. -7.87% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES COCOLIFE DOLLAR FUND BUILDER, INC.* $0.03506 -3.07% -0.27% 2.8% -2.88% PAMI ASIA BALANCED FUND, INC.* $0.96 -5.74% 3.28% -0.69% -8.31% SUN LIFE PROSPERITY DOLLAR ADVANTAGE FUND, INC.* $3.652 3.67% 5.73% 3.75% -0.01% SUN LIFE PROSPERITY DOLLAR WELLSPRING FUND, INC.* $1.0885 -0.74% N.A. N.A. -2.13% BOND FUNDS PRIMARILY INVESTED IN PESO SECURITIES ALFM PESO BOND FUND, INC.* 341.03 1.5% 1.74% 1.65% 1.16% ATRAM CORPORATE BOND FUND, INC.* ******* 1.8599 -2.44% -1.18% -0.23% -1.71% COCOLIFE FIXED INCOME FUND, INC.* 2.9276 5.39% 5.35% 5.33% 3.74% EKKLESIA MUTUAL FUND INC.* 2.1219 0.22% 1.1% 1.1% 0.94% FIRST METRO SAVE AND LEARN FIXED INCOME FUND,INC.* 2.2179 0% 0% 0.22% 0.08% GREPALIFE FIXED INCOME FUND CORP.* P 1.5796 -1.61% -1.5% -1.48% -1.86% PHILAM BOND FUND, INC.* 3.9007 -4.84% -1.38% -0.65% -3.69% PHILEQUITY PESO BOND FUND, INC.* 3.4683 -0.52% -0.53% 0.01% -1.04% SOLDIVO BOND FUND, INC. * 0.8937 -4.25% -1.74% N.A. -3.2% SUN LIFE OF CANADA PROSPERITY BOND FUND, INC.* 2.7646 0.07% 0.13% 0.38% -0.45% SUN LIFE PROSPERITY GS FUND, INC.*

1.5345 -0.62% -0.28% -0.25% -0.98% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES ALFM DOLLAR BOND FUND, INC. * $444.9 0.04% 2.31% 3.27% -0.23% ALFM EURO BOND FUND, INC. * Є213.22 0.44% 1.33% 1.74% -0.23% ATRAM TOTAL RETURN DOLLAR BOND FUND, INC.** $1.1196 -1.24% 1.11% 2.1% -1.28% FIRST METRO SAVE AND LEARN DOLLAR BOND FUND, INC.* $0.0248 -1.2% 0.68% N.A. -0.8% GREPALIFE DOLLAR BOND FUND CORP.* $1.7028 -4.95% -0.13% 1.82% -3.88% MAA PRIVILEGE DOLLAR FIXED INCOME FUND, INC. N.S. N.S. N.S. N.S. N.S. MAA PRIVILEGE EURO FIXED INCOME FUND, INC. ЄN.S. N.S. N.S. N.S. N.S. PAMI GLOBAL BOND FUND, INC* $1.0325 -4.92% -1.13% -2.12% -3.82% PHILAM DOLLAR BOND FUND, INC.* $2.1634 -3.97% 0.86% 3.1% -3.89% PHILEQUITY DOLLAR INCOME FUND INC.* $0.0568371 -1.03% 0.96% 2.18% -0.63% SUN LIFE PROSPERITY DOLLAR ABUNDANCE FUND, INC.* $2.8982 -4.61% 0.83% 2.34% -3.8% MONEY MARKET FUNDS PRIMARILY INVESTED IN PESO SECURITIES ALFM MONEY MARKET FUND, INC.* 119.7 2.25% 1.64% 1.43% 1.78% PHILAM MANAGED INCOME FUND, INC.* 1.1724 1.67% 0.34% 0.35% 1.3% SUN LIFE PROSPERITY MONEY MARKET FUND, INC.* 1.2066 2.34% 2.11% 1.36% 1.78% PRIMARILY INVESTED IN FOREIGN CURRENCY SECURITIES SUN LIFE PROSPERITY DOLLAR STARTER FUND, INC.* ***** $1.0099 N.A. N.A. N.A. 1.12%

* - NAVPS AS OF THE PREVIOUS BANKING DAY ** - NAVPS AS OF TWO BANKING DAYS AGO *** - LISTED IN THE PSE.

**** - RE-CLASSIFIED INTO A BALANCED FUND STARTING JANUARY 1, 2017 (FORMERLY GREPALIFE BOND FUND CORP.).

***** - LAUNCH DATE IS NOVEMBER 6, 2017 ****** - LAUNCH DATE IS JANUARY 08, 2018 ******** - RENAMING OF THE FUND WAS APPROVED BY THE SEC LAST APRIL 13, 2018. ********* - BECAME A MEMBER SINCE APRIL 20, 2018. ******* - ADJUSTED DUE TO CASH DIVIDEND ISSUANCE LAST JANUARY 29, 2018

Agriculture/Commodities BusinessMirror

www.businessmirror.com.ph

PHL to import more refined sugar–Piñol

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By Jasper Emmanuel Y. Arcalas

@jearcalas

HE government would allow the importation of at least 300,000 metric tons (MT) of refined sugar to augment the country’s supply and ease the high retail price of the sweetener.

Agriculture Secretary Emmanuel F. Piñol on Sunday announced that sugar planters had proposed the opening of another round of importation to cut retail prices.

This time, Piñol said the imports would all be channeled to the retail market and not to industrial users.

“Yes, because the importation will be solely for the consumer market,” Piñol told the BusinessMirror when asked if he expects the additional volume of imports to pull down sugar retail prices. “That was the condition set by the sugar stakeholders.”

The decision to import was discussed during a dialogue with sugar planters, millers, Sugar Regulatory Administration (SRA) Board and Sen. Juan Miguel F. Zubiri last week, according to Piñol.

Citing sugar planters, Piñol said “they will not ask for royalty payments unlike in previous importations” wherein interested traders must purchase import rights from them.

Sugar industry stakeholders said the 200,000 MT approved by the government in June was unable to make a dent in retail prices as the bulk went to industrial users, such as beverage makers.

The purchase of import rights was also a factor as it increased the cost of the imported sugar bought by traders.

United Sugar Producers Federation of the Philippines President Manuel Lamata confirmed to the BusinessMirror that it was the sugar planters who proposed the importation. Lamata said planters agreed to the move to support efforts of the government to ease inflation.

“It is about time to help the President. He helped us in our fight against Coca-Cola where he backed us up [by] putting up [a higher] excise tax on high fructose corn syrup,” Lamata said.

Under the planters’ proposal, the imported sugar must arrive by October. Of the 300,000 MT, the 200,000

MT will be channeled to the retail market immediately. The rest would serve as buffer stock and would be classified as “reserved” and will only be released in case prices remain high.

Lamata also said the country’s sugar output may not be sufficient to fill up the country’s total demand for crop year 2018-2019 as industrial users are purchasing more sugar.

Philippine Sugar Millers Association Inc. Executive Director Francisco D. Varua told the BusinessMirror that the industry is also anticipating higher demand for sugar during the holiday season.

“We want to anticipate increased demand due to the Yuletide season and at the same time, milling has been delayed a little bit due to unfavorable weather conditions,” Varua said.

He said only SRA-accredited traders, who participated in the previous importation program, would be allowed to import sugar this time to ensure the expeditious arrival of shipments.

Lamata and Varua are in agreement that the “reasonable” price of raw sugar is around P1,500 to P1,600 per 50-kilogram bag. Raw sugar is currently priced between P1,800 to P1,900 per LKg. SRA board member Emilio Bernardino L. Yulo, who represents the planters sector, said they agreed to the importation on the condition that the SRA “will be on top of the situation.”

Editor: Jennifer A. Ng • Monday, September 17, 2018

B3

Senate wants to scrap NFA’s licensing power

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HE Senate is inching closer to approving its own version of rice tariffication bill, which seeks to remove the licensing power of the National Food Authority (NFA) once the quantitative restriction (QR) on the staple is scrapped.

The Senate Committee on Agriculture and Food issued last week its committee report which was submitted to President Duterte. The report informed Duterte that the committee has approved Senate Bill (SB) 1998, which substitutes all the pending bills at the Senate to convert the rice QR into tariffs.

The committee report was signed by the chairs of the Committees on Finance, Ways and Means and Agriculture and Food.

Under SB 1998, the NFA’s regulatory powers, which include accreditation and licensing of rice traders and importers, would be removed.

“The NFA shall no longer establish rules and regulations governing the importation of rice and issue import licenses or permits for the private sector,” the report read.

“Likewise, the power of the NFA to first certify the existence of a shortage before importation is allowed is hereby removed,” it added.

The bill is seeking to mandate all importers to secure sanitary and phytosanitary import clearance from the Bureau of Plant Industry in lieu of import permits.

“All importers of rice are required to secure a sanitary and phytosanitary import clearance from the Bureau of Plant Industry prior to importation in accordance with existing

laws, rules and regulations,” it read.

However, the bill does not remove the buffer stocking role and market intervention powers of the NFA. Under the bill, the NFA would maintain a rice stockpile equivalent to the country’s national consumption requirement computed by an interagency committee constituted by the NFA Council (NFAC).

“This reserve requirement shall be maintained at any given time to address calamities and emergency situations, and for price stabilization during the traditional lean months,” the bill read.

However, the NFA would be only allowed to undertake direct rice importation when the local production is not sufficient “for the purpose of maintaining the required buffer stock to ensure rice security.”

The bill also empowers the President to bring down the tariffs further for a specific import volume in times of “impending rice shortages.”

However, the rice shortage situation shall be determined first by an interagency technical committee and confirmed by the NFAC. The President’s power to bring down tariffs, through an executive order, could be exercised even when Congress is in session, the bill stipulated.

Under the bill, rice imports coming from Asean member-countries would be levied with a 35-percent tariff regardless of quota.

The most favored nation rates for in-quota rice imports would be at 50

percent, or the tariff equivalent calculated under existing World Trade Organization agreements, whichever is higher.

Furthermore, the bill would remove the export restriction on rice but subject to rules and regulations and guidelines formulated by the NFA and approved by the NFA Council.

“The NFA shall determine fees and charges of rice exports which shall, likewise, be approved by the NFA Council and shall collect taxes and charges from such exports,” the bill read.

The bill calls for a special safeguard duty on rice to protect farmers the local industry from “sudden or extreme price fluctuations.”

Like its counterpart that was recently approved by the House of Representatives, SB 1998 seeks the set up of a rice competitiveness enhancement fund (RCEF) that would earmark all tariff revenues from imports to rice farmers.

An initial P10 billion funding would be shelled out by the government to kick-start the RCEF and the programs mandated by the bill. Jasper Emmanuel Y. Arcalas

B4 Monday, September 17, 2018

‘OUR PASSION, YOUR SUCCESS!’ IS OMNI’S MANTRA

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MNI Channel Marketing Consultancy Inc. is the new face of sales and marketing consultancy in the Philippines that caters traditional and digital marketing, information and communications technology (ICT), franchising, leasing, activation and events. The company celebrated its grand launch with the theme “Allin-One Marketing Services” on August 28 at Crowne Plaza Manila Galleria.

The event focused on honoring partners that they have been together since the beginning; welcoming and acknowledging new business partners; and presenting the company’s capabilities to deliver outstanding services.

“Partnering with Omni Marketing means partnering with 25-year experts in the field,” Omni Marketing executives said.

Ceitex, one of the leading consumer electronics- and information-technology expo in the country, entrusted their sales and marketing activities to Omni Marketing.

They team up to form an experiential event in promoting technological advancement and multiple concepts. It will

run from November 2 to 4.

The company helps businesses to diversify ICT, including sales and marketing activation for brand awareness, franchise and lease-sales management for growth, sustainability and profitability, and reputation management to monitor and maintain negative reviews of blogs.

OmniMarketingoffersanall-in-onesalesandmarketing services, and delivers a well-thought strategy. It also ensures that businesses are consistent across all platforms in maintaining its traditional and digital brands, sales and marketing. The company provides an effective plan with clear and concise measures.

“One of our expertises is partnering with franchising businesses and sell their franchise brand,” Omni Marketing’s executives added.“We will not only serve as their marketing arm, but also cover everything that concerns business.”

From an extensive market research, Omni Channel Marketing is introducing a unique franchising business that willbreakstereotypeintheindustry.PresentingtheGadFetcher (gadget fetcher), a popup mobile phone, accessory and repair services that serve honesty and integrity onhandlingcustomers’electronicdevices.

When the business is reviewed, Omniwouldrecommendwhatisneeded.

“We want to give clients the right advice forthemtoresolvetheissuesfirst,ifthere are any, and then we will offer what is the best for that business.”

Envisaging the new company’s performance in the market, “We have vast networks and connections of trimedia and key players’ expertise. We deal with the heart of the business and merge both worlds to one.”

SUN LIFE ASSET MANAGEMENT BEEFS UP BILLS PAYMENT WITH NEW BANK PARTNERS

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OMMITTED to make investing an even more delightful experience for its clients, Sun Life Asset Management Co. Inc. (Slamci) has partnered with Banco De Oro (BDO), Bank of the Philippine Islands (BPI), and Metrobank for its bills payment program.

The bills payment program enables clients to make additional investments in peso-denominated Sun Life Prosperity Funds via a bank partner’s various payment channels: Online banking, mobile banking, automated teller machine or over the counter (OTC).

“We’d like to offer clients comfort and convenience in their investing experience, knowing just how demanding their daily lives can be,” Slamci President Valerie Pama said. “By enhancing the bills payment program and with the help of our bank partners, our clients can effectively integrate investing in their lifestyle and be on

their way to prosperity.”

For online-banking payments, Sun Life Prosperity Fund investors who are BDO, BPI or Metrobank accountholders can make additional investments by enrolling the intended Sun Life Prosperity Fund/s as a biller in the banks’ respective online platforms, then proceeding with payment. This functionality can also be enjoyed using the banks’ respective mobile applications.

Meanwhile, for OTC payments, investors simply need to drop by any BDO, BPI or Metrobank branch, fill out a payment slip and hand the payment to the teller.

According to Pama, Slamci is set to partner with more banks in the coming months. “[In] this way, our investors can easily stay on track in their journey toward their financial goals,” she said.

ALASKA KICKS OFF SCHOOL MILK PROGRAM

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CCORDING to the 2015 update on the nutritional status of Filipinos developed by the Food and Nutrition Research Institute of the Philippines (FNRI), one out of every three children in the Philippines aged 5 to 10 is suffering from stunted growth. Similarly, one out of every three children aged 5 to 10 is underweight.

The World Health Organization (WHO) defines stunted growth as “the failure to reach one’s full potential for growth.”

Poor nutrition is just one of the many causes. This can also result to being underweight, or when a child weighs less than the average for their age and height.

Stunted growth, as well as being underweight, are problems that should not be ignored. If not addressed early, stunted growth may lead to lost productivity and opportunities, and to nutrition-related diseases later in life.

Fully aware of these facts, Alaska Milk Corp., dedicated in providing proper and affordable nutrition to Filipinos for over four decades, will hold a series of events with activities to promote the importance of proper nutrition all throughout a child’s development years, in order to reach the right height and weight for their age.

Taking the lead in this campaign is the Alaska Fortified powdered milk drink, which is loaded with 2.5 times more Vitamin D and also high in calcium and iron, and has a good source of protein. Milk has always been essential for growing children to have enough and consistent nutrient intake to ensure maximum growth potential. That is why the Alaska Fortified powdered milk drink, combined with proper nutrition and an active lifestyle, will help children reach the right height and weight for their age.

This event, dubbed Batang Alaska school milk program, also marks the first public appearance with three-term Sen. Loren Legarda, Alaska Fortified’s new nutrition advocate, who has authored legislations focused on improving the lives of Filipinos, and promoting inclusive, sustainable and resilient development.

Renowned actress, singer, TV host and one of the Philippines’s favorite “momshie” Jolina Magdangal-Escueta has also been introduced as Alaska’s new mom ambassador.

“I am so happy to be here with the kids. Tulad ng mga momshies, mahalaga sa aking masiguradong tama ang growth at development ng aking mga anak. Kaya naman I make sure I give them proper nutrition. At siyempre, painumin sila ng gatas every day, at ’di lamang po bastabastang gatas. Ang gatas na dapat inumin ay ’yung puno sa sustansiyang kailangan para tulungan maabot ang tamang tangkad at bigat para sa kanilang edad. Kaya [naman], I am glad nandito na po ang Alaska Fortified,” said the actress who is a mother to two children.

At the event children were brought to the Alaska Tamang Tangkad and Tamang Bigat Station to know if they have the right height and weight for their age. Alaska also provided everyone with samples of the Alaska Fortified powdered milk drink which, when combined with a balance diet, is able to help children obtain their age’s proper height and weight.

“Alaska Milk’s mission and vision is to promote affordable nutrition in the Philippines, because through this the Filipino youth will be able to achieve their full protential and grow up competitive in life. To support our goal, we have launched the new Alaska Fortified powdered milk [drink]. It has essential nutrients that will help every Filipino child achieve the right height and weight for their age. We encourage everyone to drink milk everyday and to also partner it with an active lifestyle. Dahil wala pa rin pong tatalo sa batang may tamang tangkad at bigat—wala pa rin tatalo sa Alaska,” said Isabel Ruiz, Alaska Milk Corp. marketing manager, right after the ceremonial milk toast.

One of Alaska’s key trade partners, Puregold joined the event to support this campaign, and announce a special and exclusive promo that will make buying a pack of Alaska Fortified truly of superior value for consumers. Reward prizes were also given by Alaska’s distribution partner OTO-GMA to Santolan Elementary School for being the winner of the Batang Alaska label generation activity for the school year 2017-2018.

For more information about the new Alaska Fortified powdered milk drink, visit www.alaskamilk.com.

BusinessMirror

www.businessmirror.com.ph

Monday, September 17, 2018 C1

How to talk to a grieving customer

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By Megan Devine

By Marcel Corstjens & Rajiv Lal

HEN Matt drowned in a fast-moving river, it fell to me to cancel his credit cards, close out the utilities at his apartment and manage his cell-phone account.

With one notable exception, the person on the other end of the phone gave the same reply: “Ma’am, we need to speak to the account holder. We aren’t authorized to give any information.”

People die every day, but companies often have no policies in place for dealing with death. And ineffective and insensitive responses from customer service reps don’t just affect those making the calls. They have real-world effects on your business. Surely we can treat each other better than this.

One exchange I had stands out in my mind. Shortly before he died, Matt had been hiking in the Rocky Mountains.

He called from a ridge overlooking the valleys below. His voicemail message said, “Hey—it’s me. Calling from 9,000 feet above you. It’s so beautiful here, and I wanted to say hi. I love you.”

I called customer service, and the rep asked how they could help. I told them the story, how I couldn’t bear to have Matt’s last message erased. The rep’s voice softened. “I’m so sorry,” he said. “What an impossible thing to live through.”

He paused, then continued, “Messages do get erased after 60 days. There isn’t anything I can do to change that. I know that isn’t the answer you wanted.” The rep remained calm and kind as I started to cry. He offered suggestions for how I might record the voice message, thereby preserving it before it was erased from the server. He told me again how sorry he was for my loss, wished me well, and we ended the call.

I felt like I’d spoken to a real human, one who genuinely cared. And I told everyone about it. Kindness and acknowledgment was all it took to make me a lifelong customer.

I have a few ideas about how leaders can start the discussion with their customer-facing employees.

First, your company needs to clearly articulate what its response should be when a request to close or transfer accounts has been made in the event of someone’s death. Map out all the possible circumstances that could precede such a request and come up with different response paths.

Second, educate your reps on the key words a caller or

T

writer might use to indicate they’re in emotional pain. Then, give reps an appropriate script for the situation.

Finally, seek out grief experts on answers to questions you may have.

How to get high-potential employees interested in leadership development programs

By Krishna Savani & Xi Zou

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OW can leaders and human resources departments motivate professionals to enroll in leadership development programs?

Given how political and business leaders are celebrated in modern society, many HR managers might assume that highlighting the possibility of becoming a leader would motivate employees to engage in leadership development. We tested this idea in our current research.

We presented employees with a description of a leadership course. However, there were two versions. Participants who saw a course description focusing on “becoming a leader” thought that the course would be more challenging and difficult, compared to those who saw a description focusing on “learning leadership skills.” And they were less interested in signing up for it.

This finding suggests that how you frame leadership education can affect people’s in-

WHY U.S. GROCERY CHAINS NEED MORE (AND BETTER) STORE BRAND PRODUCTS

terest in pursuing it. Although we did not ask people to explain their responses, we believe that a course focused on “becoming a leader” can discourage people from taking it, because it’s not clear how this would be achieved. On the other hand, “learning leadership skills” seems both reasonable and doable.

To motivate people to engage in leadership education, particularly those who have never had any previous leadership training, organizations should consider reframing the goal of the course as a chance to learn. Doing so may also help students better grasp and retain the material.

Krishna Savani is an associate professor and co-director of the Cultural Science Institute at Nanyang Business School, Nanyang Technological University, Singapore. Xi Zou is an associate professor and co-director of the Cultural Science Institute at Nanyang Business School.

© 2018 Harvard Business School Publishing Corp. (Distributed by The New York Times Syndicate)

Losing a loved one is so painful and isolating. Your customers may forget a lot as their lives move forward from their loss, but they’ll always remember how your company treated them. All it takes is

one kind response to change everything.

Megan Devine is the author of It’s OK That You’re Not OK: Meeting Grief & Loss in a Culture that Doesn’t Understand.

Understanding why we overreact at work

By Manfred F. R. Kets de Vries & Katharina Balazs

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IRK was puzzled about what just happened. To the best of his knowledge, he had only asked Jerome, a recently hired senior executive, to deal more proactively with some of the company’s clients. But Jerome had suddenly become angry, defensive and stalked out of his office.

Jerome, for his part, was also confused. Why had he reacted like that?

After calming down, Jerome realized that Dirk reminded him of his overbearing father. His overreaction was almost exactly what he had done in fights with his father, too: getting angry and storming away.

This “erroneous” interpersonal

connection was first described by Sigmund Freud in his famous Dora case under the name of “transference.” Trying to understand this unsuccessful therapeutic intervention with his patient, he came to realize that its reason lay in his failure to recognize the transfer of emotions held by Dora for a person from her past onto Freud himself.

If you have ever had an emotional reaction to someone which was clearly too intense for the situation, you have most likely experienced a transference reaction. As transference reactions are essentially a reliving of the past, the reaction they trigger is often inappropriate, and even bizarre, in the context of the present.

Reflect on patterns of behavior that have gotten you into trouble, and where you feel that your judg-

ment has repeatedly been poor. To help you in analyzing what has happened, ask yourself the following questions: What kinds of people make me feel anxious, angry, sad or happy? What do I like or dislike about them? And who in my past do these people remind me off? How are they similar or different? Discovering the ghosts of past is the first step toward not letting them interfere with life in the present.

Manfred F. R. Kets de Vries is an executive coach, psychoanalyst, and management scholar. He is the Distinguished Clinical Professor of Leadership Development and Organizational Change at Insead in France, Singapore and Abu Dhabi. Katharina Balazs is an executive coach and an associate professor at the European School of Management (ESCP) in Paris.

HE US grocery industry has reached an interesting and uncertain crossroads.

In 2017 German discount grocery retailers Aldi and Lidl announced plans to open hundreds of new stores across the United States.

One does not have to look very far to recognize the threat posed to competitors like Wal-mart, Target, Costco and Kroger by the German hard discounters. The UK grocery market shows what could happen: Aldi and Lidl have 13.1 percent market share in the UK today, having grown more than 50 percent over the last five years.

Will US grocers fare any better?

The answer may lie in whether they learn from the experience of the French grocers. In France hard discounters have a 12-percent share of the grocery market, almost as much as they do in the UK. However, in the UK, the market share of Aldi and Lidl is expected to continue to grow, whereas in France, it’s already declining.

How did smaller French retailers fight them off? Through the savvy use of private-label products (also called white-label goods or storebrand products).

Private-label products are essential to the profit margins of hard discounters. The advantages are threefold: cheap products, good quality and customer convenience; a shopper can get what they need in under 30 minutes. The downside is that there is less choice, little customer service to speak of and less-attractive stores and displays. Hard discounters win by only stocking products with a very high rotation.

To fight back against the hard discounters, French grocers realized they would have to improve their use of private-label products. This meant that they had to cut prices while improving quality—not an easy task. Yet by offering affordable goods of reasonable quality, French supermarkets have been able to regain market share.

US retailers are far behind in terms of their private-label product offerings, which will be a huge challenge in the fight against Aldi and Lidl. To catch up, US grocers will have to quickly make up for lost time.

Supermarkets will have to change the way they display, promote and merchandise private-label goods.

They will also have to commit to this private-label strategy in an increasingly uncertain food retail business.

The experience of French grocers shows that it’s not impossible to beat hard discounters at their own game. But it also is noteworthy that France’s experience is the exception, not the rule.

Marcel Corstjens is a professor of marketing at Insead. Rajiv Lal is a professor of retailing at Harvard Business School.

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Business

Monday, September 17, 2018

SIMON YATES: I’ve made it! AP

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ANTUARIO DE CANOLICH, Andorra— English rider Simon Yates is poised to win his first Grand Tour title after he successfully defended his lead in the Spanish Vuelta through Saturday’s 20th stage.

Yates will take his advantage of one minute and 46 seconds, over Enric Mas into the final stage, when race custom dictates the riders don’t attack the race leaders on the traditional arrival to Madrid.

“I’ve made it! It’s still sinking in,” said Yates, who rides for Mitchelton-Scott.

“I’m incredibly proud. I’m also incredibly proud of the team. They’ve carried me for these entire three weeks. It’s the first Grand Tour for the team. It’s just unbelievable.”

Mas moved into second place overall with the stage victory. The Spaniard edged Miguel Angel Lopez of Colombia at the finish of the short but incredibly demanding 97-kilometer

Yates poised to win Spanish Vuelta

(60-mile) route in the tiny nation of Andorra tucked in the Pyrenees Mountains. Riders faced a constant up-and-down route over six categorized climbs, including a finish atop the beyondcategory Coll de la Gallina.

Andorra is where Yates and his twin brother Adam Yates are based. Adam helped Simon withstand the fast pace set by Lopez’s Astana team midway through the stage, then Simon attacked on the fifth climb to ensure he kept the red jersey.

Alejandro Valverde entered the stage in second place, but he withered under Yates’s attack and the pursuit by the other top riders.

The 38-year-old veteran fell to fifth place in the overall standings.

“It felt like it would never end,” Valverde said.

“I was completely spent by the end and could only focus on finishing.”

Yates was third to cross the finish line, around 20 seconds behind Mas and Lopez, who completed the

brutal test in just under three hours.

“Sometimes attack is the best defense. In the last climb I was OK. I was at my limit,” Yates said.

“Mas and Lopez were riding incredible. I just tried to make my own rhythm. I gave everything I had and, thankfully, it was enough.”

Yates led the three-week race on Stages 9 to 11, and then won Stage 14 in the northwestern Picos de Europa mountains to reclaim the red jersey for good.

The biggest win of Yates’s career compensates for his near miss in the Giro d’Italia in May. He led the Giro for 13 stages before ceding the lead with two days left to eventual winner Chris Froome.

Yates’s win of the Vuelta will also complete a sweep by British riders of the season’s three Grand Tours. Geraint Thomas won the Tour de France in July.

Yates first made his mark on the track,

winning the Madison at the junior worlds in 2010.

Three years later at the senior worlds, he won the points race. He made his Grand Tour in the 2014 Tour de France. On last year’s Tour, he emulated his brother’s achievement in winning the young rider’s classification, finishing seventh overall.

Mas has been the revelation of this Vuelta. The Quick-Step rider, who had only one career stage win at the Tour of the Basque Country in April, impressed with his strong form in the mountains.

“I’m a young 23-year-old kid enjoying myself,” Mas said. “I’ve been dreaming of this for years.”

Lopez moved into third place in the general classification.

Valverde’s Movistar teammate and fellow former winner, Nairo Quintana, fell to eighth place.

Sunday’s 21st stage is a flat 101-km ride from Alcorcon to the center of the Spanish capital. AP

ALVAREZ NEW CHAMP L

AS VEGAS—Canelo Alvarez and Gennady Golovkin fought 24 rounds in the space of a year, with little to pick between them.

When the scorecards were totaled on Saturday night, though, the judges crowned a new middleweight champion of the world—but just barely.

Alvarez won the 160-pound titles held by Golovkin by the narrowest of margins, taking a majority decision to hand the longtime champion his first loss as a pro in a spirited fight that had a sold out crowd roaring.

Two judges gave Alvarez the final round, allowing him to pull out the win.

A year after the two fought to a draw, the second fight was almost as close. There were no knockdowns, but the action was spirited

throughout as the two battled to the final bell before a frenzied crowd at the T-Mobile Arena.

Two judges favored Alvarez, 115-113, while a third had it 114-114. The Associated Press scored it 114-114.

“He’s a great fighter, but I’m a great fighter and I showed it tonight,” Alvarez said.

The two fighters switched roles from their first fight, with Triple G trying to counter Alvarez and the Mexican fighter coming forward much of the fight.

Both landed well to the head and Golovkin (38-1-1) controlled some rounds with his jab though neither were ever in any trouble of going down.

The fight was a rematch of a draw last September that left neither fighter satisfied.

This time it was Golovkin who was upset, and he stormed out of the ring without talking.

“I’m not going to say who won tonight

because the victory belongs to Canelo according to the judges,” Golovkin said later from his dressing room. “I thought it was a very good fight for the fans and very exciting. I thought I fought better than he did.”

Ringside punch stats showed a close fight, though they favored Golovkin by a small margin.

Golovkin was credited with landing 234 of 879 punches while Alvarez (50-1-2) landed 203 of 622.

“We had a great fight, the one we expected the first time around,” said Abel Sanchez, Golovkin’s trainer. “I had it close going into the 12th round.

We had good judges who saw it from different angles—I can’t complain about the decision, but it’s close enough to warrant a third fight.”

Almost immediately there was talk of a third fight between two middleweights who now know each other well.

“If the people want us to do it again, let’s do it again,” Alvarez said. “For now, I’m going to enjoy it with my family.”

“Under the right conditions, yes,” Golovkin said of a rematch.

Alvarez seemed to take control of the fight in the middle rounds, using sharp punches to batter Golovkin, who seemed to slow down from his pace earlier in the fight.

“We’re losing the fight!” Sanchez told Golovkin after the eighth round.

But Triple G came on strong in the final few rounds to make it as close as it could be. Golovkin landed several big punches to start the 12th round but still lost it on the two scorecards that ended up favoring Alvarez.

Both fighters were cut with Alvarez having one over his left eye and Golovkin cut over the right eye.

TWO judges give Canelo Alvarez the final round, allowing him to pull out the win. AP

It was the first loss in 40 fights for Golovkin, the fearsome puncher from Kazakhstan who held portions of the middleweight title for seven years and hadn’t lost since the 2005 amateur world championships.

And it came at the hands of the red-headed Alvarez, a Mexican star whose positive test for clenbuterol forced the rematch to be postponed from May. They put on another show before a roaring crowd of 21,965, who crowded into the arena on the Las Vegas Strip with high anticipation in the biggest fight of the year.

Most of the crowd on Mexican Independence Day weekend favored Alvarez, who seemed to control much of the pace of the fight even while taking some sharp shots to the head. Though

Golovkin has a reputation as a knockout artist, he never seemed to hurt Alvarez, who credited his fight plan with the win.

“I showed my victory with facts,” Alvarez said.

“He was the one who was backing up. It was a clear victory.”

Alvarez said in the days leading to the fight that he went to bed every night visualizing a knockout. He seemed to want to follow up on his prediction, stalking Triple G at times, but never seemed to really hurt him.

Alvarez was guaranteed $5 million to $4 million for Golovkin, though both fighters were expected to make many millions more from the biggest pay-perview in boxing so far this year. AP

orts

sMirror

Monday, September 17, 2018

BATANG PINOY NATIONALS ON

PRINGLE, AGUILAR SUIT UP FOR PHL 5

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HE Batang Pinoy National Finals kicks off two days after Typhoon Ompong battered much of Northern Luzon on Monday, with host Baguio City relentlessly rolling out the red carpet for more than 2,700 athletes from 88 local government units (LGUs) vying in one of the flagship programs of the Philippine Sports Commission (PSC).

The games were supposed to start last Saturday, but both PSC Chairman William Ramirez and Baguio City Mayor Atty. Mauricio Domogan opted to move the opening of hostilities.

A total of 23 sports will be played in various venues in Baguio City, with the Athletic Bowl as the main hub and in La Trinidad and the rest of Benguet Province.

Ten sports will hold their national championships in the games where the top performers in the Luzon, the Visayas and Mindanao qualifiers are showcasing their potential act.

These are cycling (mountain bike and road), futsal, gymnastics, judo, muay thai, triathlon, duathlon, weightlifting, wrestling and wushu.

Also on the competition program are archery, arnis, athletics, baseball, basketball (boys and girls), boxing, chess, dancesports, karatedo, pencak silat, sepak takraw, softball, swimming, table tennis, taekwondo, tennis, volleyball (boys and girls) and beach volleyball Luzon has the most number participating LGUs with 36 composed of 1,127 athletes, followed by Mindanao with 26 LGUs and 572 athletes and the Visayas also with 26 LGUs with 516 athletes.

Age-group tennis tilt goes to Tubod

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NEW mix of future stars take center stage in the next three weeks in the Lanao del Norte, each aiming for honors and ranking points in the Palawan Pawnshop-Palawan Express Pera Padala (PPS-PEPP) age group tennis circuit, which got under way before the weekend in Tubod.

Rovie Baulete and Steven Sonsona lead the chase in the premier girls’ and boys’ 18-under divisions, respectively, with Faye Lim and Lex Estillore bannering the 16-under cast and Kristine Bandolis and Nash Agustines gaining the top seeding in their respective sides in the 14-under play of the Group 2 tournament presented by Dunlop.

Close to 200 entries are vying for titles in nine age-group divisions in singles play, while five more are up for grabs in the doubles category of the weeklong event hosted by Stanley Noval at the Tubod-Laneco-Baroy tennis courts.

Ma. Judy Anne Padilla, meanwhile, looms as the player to beat in the girls’ 12-under side with Aslan Carbonilla facing a tough set of rivals in the full-packed 32-player draw, while Garlandson Ardiente, Janus Rosales, Wyn Sanchez and Pete Bandala are tipped to dispute the 10-under unisex crown in the tournament serving as the first of three legs making up the Lanao del Norte swing of the circuit put up by Palawan Pawnshop headed by President and CEO Bobby Castro.

The year-round nationwide circuit, sanctioned by the Unified Tennis Philippines, made up of PPS-PEPP, Cebuana Lhuillier, Wilson, Toby’s, Dunlop, Slazenger and B-MEG, is coming off a successful three-leg tour in Zamboanga del Norte.

FILIPINO PADDLERS WREST FOUR GOLDS IN GEORGIA WORLDS T HE Philippines claimed two more gold medals in the 2018 International Canoe Federation World Dragon Boat Championships by winning the 10-seater and 20-seater senior mixed 200-meter races held at the Lake Lanier Olympic Park in Gainesville, Georgia.

Led by veterans Hermie Macaranas and Mark Jhon Frias, the Filipinos unleashed a sudden burst of speed in the final 50 meters for a 50.46-second clocking in the small boat that drew admiration from their world-class rivals.

France settled for the silver in 53.056 seconds and towed third-placer Hungary (53.158), host United States (53.463), Italy (53.9) and Germany (54.437).

“On a shorter course such as the 200m, you need produce faster and powerful strokes to become successful,’’ said Coach Diomedes Manalo after the Philippine Canoe Kayak Dragonboat Federation paddlers surpassed their medal tally in 2016 Moscow, Russia.

The Filipinos followed exactly the game plan in capturing their fourth gold in the big boat, clocking 43.481 seconds to subdue Czech Republic (46.082) and United States (46.146).

Hungary placed fourth (46.791) followed by Germany (48.040) and Canada (50.242).

Besides the four gold medals, the national team supported by the Philippine Sports Commission and Go For Gold has also pocketed two silvers in the

small boat senior men’s 500 meters and big boat senior mixed 2,000-meter race, respectively.

“Congratulations to our dragon boat athletes for improving on their medal tally from their last world championship,’’ Go For Gold top honcho Jeremy Go said.

“Despite all the struggle and adversity, our team has come out on top and continues to impress.’’

They defended the 20-seater senior mixed 500-meter title with aplomb after kicking off their world championship campaign with a convincing win in the 10-seater senior mixed 500-meter event.

The Pinoy paddlers remain on track to secure another gold medal in the 10-seater senior men 200 meters on Sunday (Monday in Manila).

Jordan de Guia, John Paul Selencio, Lee Robin Santos, Jonathan Ruz, Daniel Ortega, Reymart Nevado, John Lester de los Santos will join hands with Christine Mae Talledo, Sharmaine Mangilit, Apple Jane Abitona, Raquel Almencion and Lealyn Baligasa in the big boat senior mixed 200m.

Maribeth Caranto has been designated steersman and Patricia Ann Bustamante as drummer.

During their world championship campaign two years ago, the Filipinos brought home three gold medals, one silver and a pair of bronzes.

In the master division, the Philippines pocketed a pair of bronze medals in the small boat men’s and mixed 200-meter races.

THE Philippine dragon boat teams rule the 10-seater and 20-seater senior mixed 200-meter races.

Manu is the Man RICK OLIVARES bleachersbrew@gmail.com

BLEACHERS’ BREW I REMEMBER that day so well. That was the day after my birthday—November 12, 2003. A friend of mine was able to get me courtside seats to the New Jersey Nets-San Antonio Spurs game. There were three things that made that day special. I was able to get tickets to a New York Giants game and, well, I got a jersey from the Spurs’ Manu Ginobili.

I got to the then Continental Airlines Arena early in East Rutherford. At that time, I was staying in Jersey City, and the drive to the venue wasn’t too far. I was rooting for the Nets to be honest, but I was also a fan of Ginobili. I had been one since his days at Virtus Bologna in Italy.

During an early shoot-around, it was just Manu on the floor. The ball went my way once, and I tossed it back to him. Second time around, it went my way and I tossed it back. The third time I got up and flicked it back to him. A nice bounce pass (that I thought Jason Kidd would be proud of).

He came over and asked if I was a Spurs fan.

I told him I rooted for the Nets but was also a fan of his. He asked how so. I mentioned his stint in

C3

Italy and how I’d follow him on the Internet. I mustered the urge and the nerve to ask if I can have a photo with him and how it would make a nice birthday gift, since it was my birthday the day before. He said let’s do this after the game and went back inside. He later rejoined his team for the official shootaround.

The Spurs won that rematch of last year’s National Basketball Association finalists. I don’t recall the score. I do remember it was a close one. I have to admit though that I didn’t care at that moment because I wanted a picture with Manu. With all the post-game stuff going on and security rushing to the floor, I thought, “Well, that’s that” as the Spurs made their way to the locker room. I turned around to leave.

About three steps later, there was a hand on my shoulder. It was Manu. “Hey, I didn’t forget.”We got that picture on an instamatic disposable Kodak camera of mine. Then much to my surprise, he took off his sweaty jersey and handed it to me, “Happy Birthday!” he said, after which he took off.

I was floored. Literally. I sat on the nearest

seat. “I never even got to thank him,” I said aloud to no one in particular. One of the security people said, “No need, fella. He saw the look on your face, and that is good enough.”

I wasn’t sure if I was going to wash that jersey when I got home. I did and wore it the next day while walking the streets of Manhattan.

No one cursed me. I did get quite a few compliments, and I was walking on clouds.

Fifteen years after that day, I still have the jersey. It’s well-worn, and I have used it playing hoops and even sleeping in it. And that jersey remains one of my most prized possessions.

I may have not been a Spurs fan, but I have appreciated their game. And of course, Manu for what he brought to the team.

When he announced his retirement from the National Basketball Association after 16 long years (23 overall), I watched his farewell video. I brought out that old jersey—no I didn’t put it on for fear of ripping it as I have put on weight since then—and reminisced. It was a light-hearted one and, well, different. Awkward was a word he used. It was also the way he played—awkward and unorthodox.

And that made him very difficult to guard. And what a player he turned out to be.

As a kid, he watched that tape of Michael Jordan’s “Come Fly With Me” until it would no longer play. Fortunately, he too has made his own highlight tape. And what a story too Manu Ginobili should make the Hall of Fame. Of that I am certain.

Thanks for the big games, Manu. And I got a nice memory of it too.

By Rick Olivares

A

FTER two consecutive losses—the first the result of the now infamous brawl with Australia and, most recently, an 81-73 loss to Iran—in the Asian Qualifiers for the 2019 Fiba World Cup, the Philippines hopes to get a boost with two familiar faces.

Forward-center Japeth Aguilar and point guard Stanley Pringle will be back in harness for Coach Yeng Guiao when the Philippines takes on Qatar on Monday.

Aguilar is back in a national team jersey after having served a one-game ban for his role in the fracas with Australia during the last Fiba window, while Pringle will get the nod as the team’s naturalized player in lieu of Christian Standhardinger.

Aguilar will provide a veteran presence underneath the boards and Pringle will help push the pace against a tall Qatar team that will be coached by a familiar face—Briton Tim Lewis.

To many Filipino basketball fans, Lewis, who had a stint with the Toronto Raptors organization in the National Basketball Association, was the head coach of Thailand in the last Southeast Asian Games. He also served briefly as a consultant to Gilas in the next Fiba window as well as for Talk ‘N Text in the Philippine Basketball Association.

Unfortunately for Lewis and Qatar, all his main men are out with injuries. Abdulrahman

Saad, Erfan Saeed, Mansour El Hadary and Clinton Johnson are all out with various ailments.

“I am even fielding students,” Lewis told the BusinessMirror.

Pringle made his debut in a national jersey for five-on-five basketball during the last Asian Games where he averaged 10.8 points, 4.0 rebounds and 3.2 assists in the Philippines’s fifthplace finish.

The Philippines is currently at third place of Group F with a 4-3 record, while Qatar, blown out

by Australia, 95-43, in their last match is at the bottom with a 2-5 record.

The top 3 teams of Groups E and F along with the best fourth place will advance to the 2019 Fiba World Cup in August of 2019 in China.

Also on the team, according to Samahang Basketbol ng Pilipinas President Al Panlilio, are Beau Belga, Alex Cabagnot, Paul Lee (Dalistan), Paul Erram, Marcio Lassiter, Gabe Norwood, Ian Sanggalang, Scottie Thompson and Matthew Wright.

The game at the Smart Araneta Coliseum will be played behind closed doors and only SBP officials and accredited media will be accommodated.

The Philippines is currently at third place in Group F with a 4-3 won-lost record while Qatar, blown out by Australia, 95-43, in their last match is at the bottom with a 2-5 record.

The top 3 teams of Groups E and F, along with the best fourth place, will advance to the 2019 Fiba World Cup in August of 2019 in China.

JAPETH AGUILAR will provide a veteran presence underneath the boards, and Stanley Pringle will help push the pace against a tall Qatar team.

Perspective BusinessMirror

www.businessmirror.com.ph

Monday, September 17, 2018 C4

MAKSYM YEMELYANOV | DREAMSTIME.COM

PODCASTING AIMS FOR A WHOLE NEW LEVEL, AND A TV DRAMA MAESTRO JOINS IN

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By Brooks Barnes

New York Times News Service

OS ANGELES—Fifty-six percent of Americans have never listened to a podcast. One of Hollywood’s most aggressive companies wants to change that, and it has enlisted Dick Wolf, the king of broadcast television, as part of its campaign.

Endeavor, the entertainment and sports conglomerate led by Ari Emanuel, introduced a new division Thursday dedicated to developing, financing, producing, distributing and marketing podcasts.

Endeavor Audio, as the entity is called, will also sell podcast ads and sponsorships. Initial partners include Wolf, the producing force behind the “Law & Order” and “Chicago” franchises on NBC, and Magical Elves, a production company known for reality shows like “Top Chef” and “Project Runway.”

“We see an opportunity to take podcasts mainstream and open up a lot more revenue,” Moses Soyoola, general manager of Endeavor Audio, said in an interview.

The WME talent agency, which is owned by Endeavor and counts Wolf as a client, represents podcast creators like Malcolm Gladwell (“Revisionist History”) and Crooked Media (“Pod Save America”). But Endeavor is ambitious about growth, to put it mildly, and listening experiences represent a promising area. Podcast ad sales in the United States totaled $314 million last year and will grow to $659 million by 2020, according to a recent report by PwC and the Interactive Advertising Bureau.

If successful, Endeavor Audio podcasts could generate major spinoff revenue in the form of television adaptations.

“Right now, there’s a lot of the same content aimed at the same audience—investigative journalism, amateur chat,” said Soyoola, who joined Endeavor from Panoply Media, a podcasting network. “We

want to help creators of all kinds develop audio entertainment that reaches new audiences.”

Wolf, whose credits also include the unscripted “Cold Justice” cable franchise, spoke excitedly in a separate interview about an idea for a podcast involving death row prisoners in the hours leading up to execution. “You have to understand: I don’t know what I’m really talking about yet—we’re just getting started,” Wolf said. “But I know this is the future. It’s already here. And I want to be there. I want more than anything to continue to be relevant.”

Wolf will develop one dramatized podcast series with Magical Elves and work on others independently. He may also serve as a “curator” of additional crime podcasts.

“I don’t know if I would call the appetite for crime storytelling insatiable, but there is definitely a large segment of the population that is addicted, and there is only so much beachfront real estate on network television,” Wolf said, referring to prime time. Wolf Entertainment will have eight shows on the air this season, including the new “FBI” on CBS. Endeavor Audio also plans to finance and codevelop up to 10 podcasts with Mass Appeal, a media company that counts the rapper Nas as an investor and focuses on what it calls urban culture.

Additional clients include “Limetown,” a fictional podcast (season 2 starts October 31) about the disappearance of 300 people from a neuroscience research facility; and

DICK WOLF at his home in Montecito, California, May 9, 2016. Wolf, who is known for creating the “Law & Order” franchise, is now developing podcasts. CHRISTOPHER PATEY/THE NEW YORK TIMES

Parcast, a startup that specializes in lurid podcasts like “Cults” and “Female Criminals” that gives Endeavor Audio an immediate network of some 9 million downloads a month.

Efforts to turn podcasts into hit television shows—the bigger gold mine, by far — have been disappointing.

The television rights for “Serial” were sold three years ago, but a series never emerged. In May, ABC abandoned “Alex, Inc.,” a comedy adapted from a Gimlet Media podcast, after a handful of low-rated episodes. On a brighter note, HBO recently ordered more comedy specials built around the “2 Dope Queens” podcast and Amazon has found a modicum of success with “Lore,” based on a horror podcast of the same name.

But television executives— now three years into “peak TV” and increasingly desperate for ideas—are looking harder at podcasts. Amazon has high hopes for “Homecoming,” a drama starring Julia Roberts and based on another Gimlet podcast. (Gimlet is represented by Creative Artists Agency, which also has a growing podcast business.) The Los Angeles Times’ scam-artist podcast, “Dirty John,” may spawn two shows: In deals brokered by WME, a scripted “Dirty John” drama is coming to Bravo, and Oxygen is working on a spinoff.

Endeavor has been working to grow by any means possible since 2013, when Emanuel pulled off a $2.3-billion deal to buy IMG, which negotiates media rights for sports leagues and handles licensing for more than 200 colleges, among other vast operations. To add to its bulk, Endeavor has invested in or purchased at least 16 additional companies since then, including UFC, the mixed martial arts organization, and Miss Universe, which runs a variety of pageants.

Endeavor has also asserted itself as a financier and seller of movies and TV shows, creating a new entity last year called Endeavor Content that has supplied hits like “Killing Eve” to BBC America and “Book Club” to Paramount Pictures.

Queenship of the Blessed Virgin Mary

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EAR God, the Queenship of the Blessed Virgin Mary is a great honor for the Mother of Your Son, Jesus Christ. May we in many ways follow her obedience, humility and love for You. May her example of holiness bring us to be joyful in our encounter with others and give us grace to be fitting in Your Kingdom when You call us. Amen.

GIVE US THIS DAY SHARED BY LUISA LACSON, HFL Word&Life Publications • teacherlouie1965@yahoo.com

Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com

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Life

ALL ACCESS: GWEN ZAMORA COMES OUT OF HER COCOON D3

BusinessMirror

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Monday, September 17, 2018

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Tadashi Shoji: ‘Dreamlike desire’ TOTA PULCHRA

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floral paillette embroidered tulle and crepe halter gown

MISS CHARLIZE

@misscharlize

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SILVER metallic pintuck jersey and paillette encrusted floorlength gown

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BLACK cursive paillette embroidered tulle and chiffon sleeveless floorlength gown

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CERULEAN/ nude cursive paillette embroidered tulle longsleeved dress

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VIOLET/ nude draped chiffon and lace floor-length gown with sheer illusion detail

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LAKE gradient diamanté embellished jersey floorlength sleeveless gown

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EARING a multicolored gingham suit of his own design, Tadashi Shoji excitedly welcomed guests to his first shop in the Philippines, at the second level of Rustan’s Makati.

The boutique is 80 square meters of stark white space enlivened by his colorful eveningwear, cocktail dresses, shapewear and children’s clothes.

“I don’t know about if this is the perfect time or not to open a shop here, but it’s been too late for me because 24 years we have been selling at Rustan’s,” the Japanese-American designer smiled. So next year will be the brand’s silver anniversary in the country. “We have no plans for any events yet. We just did a show as part of the Rustan’s 65th celebrations last year.”

Tadashi has a strong following in the beauty pageant world for his elegant eveningwear, having been a sponsor at Miss Universe, and at awards shows for his all-embracing silhouettes, having dressed Mo’Nique (Precious, 2009) and Octavia Spencer (The Help, 2011) when they received their Oscars for Best Supporting Actress.

“I don’t always attend fittings [of celerity clients]. But if I’m not there, a staff will be there, like a patternmaker,” he explained.

“Everybody asks me for a wish list of who I would like to dress up. I don’t have that.

Anyone who comes in and who wants to wear my dress, I’m so blessed.”

Tadashi has also had the good fortune of having great opportunities during his early struggling years of making it as a designer in America. When still a student at Los Angeles Trade Technical School (he had to enroll to get a student visa because his tourist visa was expiring), he was offered an assistant position with Bill Whitten.

Whitten was designing costumes for rock legends such as Neil Diamond, Lionel Richie and Elton John. He was the one who created the Moonwalk look of Michael Jackson—the single rhinestone glove, ankle-high black pants and white socks with loafers.

Tadashi also worked with the dreaded fashion designer-turned-critic Richard Blackwell, a.k.a. Mr. Blackwell. He was notorious for his annual “Ten Worst-Dressed” lists, with jabs at Cher (“a million beads and one overexposed derriere”) and Martha Stewart (“dull, dowdy and devastatingly dreary”), to name a few.

These enviable, hands-on experiences with fashion and celebrity have forged Tadashi’s brand DNA of “beauty, ease and enchantment.” The Tadashi Woman, his lookbook says, is a “minimalist in boredom and a maximalist in the joy of living.” She is also “ever bold and unapologetic,” and “her confidence is the source of her beauty.”

Tadashi satisfies a woman’s “dreamlike desire” for dresses.

The boutique at Rustan’s carries the Fall/Winter 2018 collection shown at New York Fashion Week in February (as shown in the photographs in this space, I didn’t stay for the social hobnobbing later that evening where our models wore the same clothes at a fashion show).

“We do two runway shows in New York— for Spring/Summer and Fall/Winter. But we do four photoshoots, for the two seasons plus the Resort and Cruise collections,” Tadashi said, showing off the dresses on display made of jersey sequins, stretch sequins, embroidery, lace, some fringe. There are also clutches, which are favored by Anjelica Huston and Laverne Cox. The dresses on display are for svelte women, much like Miss Universe 2007 Riyo Mori from Japan, the last winner that wore Tadashi. But the brand offers democratic dressing for women such as Octavia Spencer. This must be something that Tadashi imbibed from Blackwell, who dressed full-figured women such as Jayne Mansfield and Jane Russell.

Paris Jackson wears Tadashi. “She is young and petite,” the designer emphasized.

“We dress all different sizes, all ages, all nationalities. I don’t categorize myself as a young girl’s designer or an old lady’s designer.

That, I think, is better for me.”

That philosophy works for the brand, as it sees an expanding presence in Southeast Asia, South America and South Africa. “[Also] in Europe—not in Italy or France—but in Spain, Germany, Scandinavia. We are in 40 countries,” Tadashi beamed.

“We have an agreement in Rustan’s. If they want to open another store, it’s merrier,” he smiled. What makes you loyal to Rustan’s?

“Because for 24 years, they’ve been loyal to us, so I am loyal to them. This is a give-andtake business relationship.”

Tadashi Shoji can’t define what is Japanese about his style.

“People ask me that because I’m Japanese, do I have Japanese-ness to my designs?

More I think in work ethic and how to make dresses. I don’t want to cheat people,” he explained, saying his dresses are priced fairly, at P20,000 to P40,000, more affordable than those of Filipino designers’. “When they see a $500 dress, when they wear it, they feel comfortable, they look good and beautiful. It makes them happy. So that’s a real bargain.

That’s the kind of value I give. That’s the Japanese-ness, the value for money. That’s more than style.” ■

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Style

BusinessMirror

Monday, September 17, 2018

www.businessmirror.com.ph

z

Today’s Horoscope

By Eugenia Last

CELEBRITIES BORN ON THIS DAY: Danielle Brooks, 29; Jimmie Johnson, 43; Doug E. Fresh, 52; Kyle Chandler, 53.

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HAPPY BIRTHDAY: Don’t take anything for granted this year. Live in the moment and plan your actions with precision. Invest more in yourself and what you need to do to get ahead or to gain peace of mind. Take part in events and activities that will broaden your awareness and help you gain perspective regarding what you can do to improve your life. Your lucky numbers are 5, 11, 21, 23, 26, 38, 42.

a ❷

❶ FEU

volleyball player Carly Hernandez plays it feminine with a pinafore dress and floral patterns.

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MASTER the art of cool dressing with actor and TV host Joaquin Manansala

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MODEL and entrepreneur Patricia Henson gets on the chic list

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LAYERED pieces from Forever 21 on model Yanna Cowper

ARIES (March 21-April 19): Keep busy, don’t leave anything unfinished and most of all, try not to get into an emotional discussion with someone who doesn’t share your opinions. Make positive changes that will boost your morale and raise your confidence. ★★

b

TAURUS (April 20-May 20): Bring it on, make things happen and do your own thing.

Plenty is within reach, so don’t waste your time getting annoyed. Spend more time following your dreams. Personal gains, romance and positive actions should be your priorities. ★★★★★

Get an A+ for style I

T’S time for a wardrobe upgrade as American retail giant Forever 21 brings style-seekers its latest collection.

Fuss-free fashion statements are back in session with 1950s-inspired prints, retrocollegiate stripes and pinafore dresses. Get ready with A+ style with casual-cool classics like rugby tops and sweet skirts that range from mini to midi.

Get educated on easy-to-layer pieces: sheers and knits, solids and stripes, cover-ups and camis. Add in a cabbie hat or a sassy beret for additional style points Forever 21 (www.facebook.com/Forever21PH) recently launched its latest collection with its local #WeAreForever21 brand ambassadors that include model Yanna Cowper, actor and

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GEMINI (May 21-June 20): Don’t take anything or anyone for granted. A money matter won’t turn out as expected. Stay on top of what others do and how your money is spent. Youngsters or someone who wants something from you will try to manipulate you. ★★★

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CANCER (June 21-July 22): Do things differently for a change. Let routine slip and try something new. You will enrich your life.

Your imagination will take you on a journey that leads to adventure and a greater appreciation for life, love and longevity. ★★★

e

TV host Joaquin Manansala, and model and entrepreneur Patricia Henson, along with UAAP volleyball players Carly Hernandez of the Far Eastern University and Katrina Tolentino of the Ateneo de Manila University.

These ambassadors not only represent the Filipino youth through their style but also through the passions they pursue.

Forever 21 shoppers can also get up to 70-percent off from a wide selection of fab fashion finds at Forever 21’s Megasale from September 28 to 30. This will be held at SM Megamall’s Megatrade Hall 2. ■

LEO (July 23-Aug. 22): Follow your heart and make a point to engage in something that will fire you up and bring out the passion that will help you bring about change. Be who you are, not what someone else wants you to be. ★★★★★

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VIRGO (Aug. 23-Sept. 22): Take a trip down memory lane and you’ll discover something wonderful about the life you live.

Don’t be fooled by those trying to make you feel flawed or those using emotional tactics to manipulate you. ★★

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LIBRA (Sept. 23-Oct. 22): You’ll gain strength through doing things for yourself.

Don’t wait for someone to push you or use sarcasm to goad you into doing what you signed up for.

A change will do you good. ★★

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SCORPIO (Oct. 23-Nov. 21): Strength is an attribute you have in spades. Take hold of whatever situation you face and use your skills and experience to bring about positive change. Helping others will in turn bring you good fortune and well-deserved opportunities. ★★★★

Celebs turn out to help Rihanna’s Diamond Ball shine bright SINGER Rihanna attends the fourth annual Diamond Ball at Cipriani Wall Street on September 13. AP

BY MESFIN FEKADU The Associated Press

event for Rihanna’s organization, which promotes education and arts globally and assists emergency response programs.

The 30-year-old singer started the foundation in 2012 and named it after her grandparents, Clara and Lionel Braithwaite.

“In the past I’ve wanted to support so many causes and you go to one foundation for this and one foundation for that. And I don’t think it’s fair to turn your back on someone else who needs help just because it doesn’t fit into the bracket of your mold.

And I don’t think charities should be molded like that—not for me anyways,” she said in an interview with The Associated Press.

The Clara Lionel Foundation, which has supported those affected by Hurricanes Harvey and Maria, has set a goal to raise $25 million for an emergency response fund by next year’s Diamond Ball. The organization also has a scholarship fund as well as an oncology and nuclear medicine center in Barbados, where Rihanna was born and raised.

Hugh Evans, the CEO of Global Citizen, received the 2018 Diamond Ball Award.

NEW YORK—Rihanna’s Diamond Ball shined in its fourth year and continued to make a name as one of the industry’s white-hot and must-attend parties—all the while raising nearly $6 million for charity.

The pop star, fashionista and makeup mogul held the black-tie gala for her Clara Lionel Foundation on Thursday in New York City, where Childish Gambino performed and Tiffany Haddish bid $75,000 on earrings.

The Girls Trip superstar, per usual, was in an electrifying mood at Cipriani Wall Street.

When the Chopard earrings were being auctioned, the recent Emmy winner told her competition: “Let me have something in this world.” The earrings were valued at $112,000.

Issa Rae, the Emmy and Golden Globe-nominated creator of HBO’s Insecure, hosted the event and happily told the audience: “Rihanna knows my name y’all!”

Trevor Noah, Odell Beckham Jr., Brian Tyree Henry, Paris Hilton, Normani, Meek Mill and A$AP Rocky were among the famous faces who attended the

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SAGITTARIUS (Nov. 22-Dec. 21): Take a look around before you make a move.

Someone will feed you false information or try to charm you into something you should probably walk away from. ★★★

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CAPRICORN (Dec. 22-Jan. 19): Focus on positive changes, improvements at home and at work and doing whatever you can to simplify your life. Don’t let anger consume you or cause you to make a mistake that can end in physical or emotional injury. ★★★

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AQUARIUS (Jan. 20-Feb. 18): Protect against insult, injury or poor choices. Don’t be a follower. Be brave enough to set your own path and to say no to those trying to coerce you into something that can set you back physically, financially or emotionally. ★★★

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PISCES (Feb. 19-March 20): You’ve got all the right moves, so what’s the holdup?

Trust and believe in what you are capable of doing. Set your standards high and live up to your expectations. ★★★★ BIRTHDAY BABY: You are intelligent, practical and courageous.

You are adaptable and popular.

‘all’s well’ BY TIMOTHY E. PARKER The Universal Crossword/Edited by Timothy E. Parker

ACROSS 1 Place in a schedule 5 Bog fuels 10 Ball of dirt 14 Deceiver 15 Throat infection type 16 Primitive cross 17 What’s unnaturally bright?

20 Giggle sound 21 AKA names 22 Refuse destination 25 Work scissors 26 Pay-___-view 29 Be a challenger 31 Group of three 35 Historical chapter 36 Place for a big fight 38 Julia Roberts played her 39 Completely locked in 43 Plot of the Good Book?

44 Tongue-lash 45 Masterful serve 46 Withstand, as temptation 49 Quite factual

50 Cartoon Flanders 51 Hospital fluids 53 School undertaking 55 Barren 58 Say in a nutshell 62 Babe Ruth’s 22 65 “Yikes!” kin 66 Slicing beam 67 Mr. Kringle 68 Paves a road 69 Make a rude face 70 Road stone DOWN 1 Barrel part 2 Money of old Italy 3 Courtroom swearing-in 4 Didn’t just watch 5 Air pressure meas.

6 “And things like that” 7 Coloratura’s solo 8 Some ducks 9 Support for a fracture 10 More freshly deep-fried 11 Fancy theater level

12 13 18 19 23 24 26 27 28 30 32 33 34 37 40 41 42 47 48 52 54 55 56 57

Sounds of amazement Banned bug spray Like some serfs and lords Home for some predators Loose earthy deposit Emulates a hungry tiger Beatrix Potter character Gradually chip away Four Seasons info Legislate U-turn from rural Female in the family Finished up Canaveral cancel Liqueur flavorings Turn sharply about a mast Ukrainian city Croat neighbor Courtroom dramas Singer David ___ Coe Wild boar’s weapons Long account Prerevolution leader Questioning word with “who”

59 60 61 62 63 64

Greedy person’s cry Any condo Secretive “Look here” Common Vegas action Visualize Cause an unearned run

Solution to Friday’s puzzle:

Show BusinessMirror

www.businessmirror.com.ph

Monday, September 17, 2018

Gwen Zamora comes out of her cocoon

LIAM NEESON and Viola Davis in 20th Century Fox’s Widows

ALL ACCESS RICKY GALLARDO

rickygallardoTFI@gmail.com

ALL-WOMEN CREW GOT BALLS IN INTENSE HEIST ACTION-THRILLER ‘WIDOWS’ LATEST TRAILER

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NE doesn’t go to see Goyo: Ang Batang Heneral expecting the fire and bullheadedness of the title character in the first of Jerrold Tarog’s hero trilogy, Heneral Luna.

Goyo is more observant, ruminative, contemplative. The film has lesser battle scenes than Heneral Luna, although the last act at Tirad Pass will make you hold your breath. It also isn’t lacking in panoramic vistas, a massive set that recreates a whole town, and scenes that will make you pause and take stock of what truly ails a nation and its citizenry.

Another ace up Goyo’s sleeve is an array of powerful performances from some of the industry’s best actors working today in roles big and small.

Award-winning actor Art Acuna is chilling in that scene where he taunts Gregorio del Pilar (Paulo Avelino). Mon Confiado nails the part of Emilio Aguinaldo effortlessly, lending it an air of ambiguity, also the kind of vibe that a flawed historical figure like Aguinaldo gives off.

Thespians Ronnie Lazaro and Roeder Camañag make the most of their short roles. Carlo Aquino as the more conscientious of Goyo’s allies is also fine. Carlo Cruz holds his own and clearly shows his presence as an actor that we need to watch out for. Paulo Avelino captures the fears and arrogance of a young man who seems to not fully understand what he has gotten himself into. As Apolinario Mabini, Epy Quizon provides some of the film’s most arresting messages.

But the biggest revelation in Goyo is the seemingly reluctant actress Gwen Zamora. Zamora plays the young general’s last love, Remedios Nable. Zamora’s face exudes a certain inscrutability which aids her performance greatly. Unlike most townswomen in the late-1800s who throw themselves at the charismatic young general, Zamora’s Remedios is reserved. Zamora conveys the play of emotions inside her without mouthing long lines of dialogue. With the most minute reactions to Goyo’s advances, she makes you feel the little wars raging beneath the calm surface. Has she fallen for Goyo, as well? What are her fears? What are her heart’s dreams?

There is a truly beautiful scene in the movie where Avelino and Zamora conduct a dance while the photographer’s assistant, tasked to look after Goyo’s bag, skims through the many letters from Goyo’s past inamoratas. By the time Zamora as Remedios reads the letter she gave Avelino’s Goyo as send-off memento when the young man goes off to war, which says in part, “Nais ko ng lalaking mayayakap ko, hindi isang bayaning nakatuntong sa mga ulap,” one realizes the turmoil of a love that blossoms in wartime.

ACADEMY Award-winning filmmaker Steve McQueen and writer Gillian Flynn (author of Gone Girl) team up to give the audience a gripping intense action-thriller in Widows, starring a heavyweight cast: Viola Davis, Michelle Rodriguez, Elizabeth Debicki, Cynthia Erivo, Liam Neeson, Colin Farrell, Robert Duvall, Jon Bernthal, Daniel Kaluuya and Brian Tyree Henry.

20th Century Fox has just released its official trailer in the studio’s YouTube and Facebook pages.

The movie opens in December.

Four women take matters into their own hands when their husbands unexpectedly perished with unfinished criminal activities in Widows. Hunted by their late husbands’ client who pressed on the responsibility of paying the debt their husbands left, the characters of Davis, Rodriguez, Debicki and Erivo join forces to outwit the crime lords preying on them and move on with their lives on their own terms.

Buckle up for a stirring brain and brawn thriller in cinemas when Widows opens on December 5 in Philippine theaters nationwide.

Gwen Zamora’s beautiful performance in Goyo proves that her Urian-nominated performance as the third wheel between Sid Lucero and Annicka Dolonius in Mario Cornejo’s Apocalypse Child a few film seasons back is not a fluke.

But Zamora is as difficult to scrutinize onscreen as she is in real life. At the grand media launch of Goyo, she came dressed simply, as though deliberately courting attention by not calling attention to herself.

She answered a few nosy questions about her relationship with a Marquez guy and shared what she had been doing while in hibernation. Take note that she took a sabbatical without bothering to explain why. Zamora finished a culinary arts course at Endurun Colleges and shared that she’s a few pounds away from her ideal cinematic weight. She vows to be more active in the months to come.

And yet you half-expect her to not honor her word and perhaps hie off to another adventure, away from the klieg lights. Will she ever be comfortable with the frills of show business? She could one day soon be surfing one moment in Baler, shades of her character in Apocalypse Child, or be whisked off to some far-off country as chef. Or we might just see her hosting a cooking show soon. We will never know for sure.

But for now, Gwen Zamora can rest assured that she has blessed her secret admirers with one memorable performance to talk about while she tries to make up her mind about which path she would like to tread with more certainty. She has indeed come out of her cocoon and will continue to show her beautiful colors as an artist. ■

MARICRIS GARCIA HOLDS FIRST MAJOR SOLO CONCERT ON SEPTEMBER 28 AS she celebrates 11 years in the industry, GMA Artist Center’s powerhouse diva Maricris Garcia will hold her first major solo concert, titled MAR1CR1S, on September 28 at Teatrino in Greenhills.

The concert promises a grand ensemble of music, entertainment and nostalgia as the GMA diva looks back on her journey in the industry. Maricris personally conceptualized the concert, which is being brought to life by director Marc Lopez.

“The show is going to be more of a storytelling type. I want to share my journey since I started my career up to the present, as well as my personal life, my music influences and more,” said Maricris.

She will be joined by the industry’s best singers, including Nar Cabico, Mark Bautista and best-selling multimedia artist Regine Velasquez-Alcasid.

She’s also celebrating her birthday this month, and the concert is both a treat to herself and her fans. She excitedly shared her process in producing her own concert: “During the first few months of planning, everything was easy. But as the days go by, I’m starting to feel the pressure and the stress. Good thing I have the support of GMA Artist Center and a few people who offered their help in making this concert possible.”

The GMA star feels grateful that she has the opportunity to live out her passion: “I want to let them

MARICRIS GARCIA

know that I’m still here and I will always be here... singing.” She is also set to release her new music early next year in time for the Valentine season.

Tickets for MAR1CR1S are priced at P1,800 for VIP, P1,300 for Orchestra and P800 for Balcony.

For inquiries, contact 0917-8508747 or 02-7412949, local 116.

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Style

D4 Monday, September 17, 2018

www.businessmirror.com.ph

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MOVE With Options’s Ole Eugenio (center) and Krishna Yalong Penson with brand ambassador Daphne Osena Paez

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EUGENIO says roll-ups, which you need to do five times a day, help stretch the spine.

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THIS machine is called the Cadillac.

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Pilates’ mindbody-spirit connection AND THEN SOME DINNA CHAN VASQUEZ @dinnachanvasquez luckydinna@gmail.com

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OST of the accounts I follow on Instagram are those of my friends, relatives, beauty enthusiasts, brands and beauty influencers.

I follow very few people who are into fitness. Offhand, I can only think of influencers Jackie Go, Angela Nepomuceno and Kaycee Enerva, whose approach to fitness is not preachy and righteous. I know Jackie, Angela and Kaycee, and I have seen them eat and drink, and I appreciate that they don’t starve themselves to stay thin.

I don’t go to the gym but I believe that those who have regular and consistent fitness routines are on the right path not only toward wellness but also beauty.

Exercise helps your circulation and makes you sweat, which helps your body eliminate toxins.

I recently interviewed Krishna Yalong Penson, owner and managing partner at Move With Options and owner of Options Studio Timog, which are both Pilates studios. Krishna has the most amazing body and skin, thanks to an active lifestyle. Prior to Pilates, she did yoga and tennis.

Krishna and her friends first tried Pilates under master trainer Ole Eugenio, who founded Pilates in the Philippines, and she realized how fun and challenging it was. Krishna loved how Pilates was a mind-and-body workout that can be done by anyone.

“More important, Pilates is very private. I don’t feel conscious when I’m working out,” said Krishna.

Options Studio Timog, a partnership between Krishna and Ole, opened in 2015. Krishna’s dad offered her space in a new building being built by the GMA Network cooperative, and she thought it would be a perfect space for a Pilates studio. Celebrities like Janine Gutierrez, Lovi Poe and Max Collins work out there.

Last year Krishna and Ole decided to open a Classical Pilates studio at The Power Plant Mall.

Move With Options is a small studio with a more intimate and organic vibe to complement its Classical Pilates offering. Move With Options recently hosted a #WellnessWednesday session cosponsored by La Mer for members of the press.

In 2010 Ole, who is the first Filipino to be fully certified by a contemporary Pilates method, revisited his Classical Pilates roots.

“I wanted to seek and understand the full system

about the art of control, or Contrology—the original name for Pilates.”

Classical Pilates is all about the person and movements with the machine needed only to give the desired results.

“After mastering both Contemporary and Classical Pilates, I understand that you need Connection, Engagement and Commitment,” said Ole. Unlike other forms of exercise, which can be intimidating for beginners, Pilates is more inclusive.

Move With Options at R3 Level, New Wing, of The Power Plant Mall has clients as young as seven and eight years old and as senior as 80.

“Pilates is for everyone. We have women who want to tone, lengthen, look leaner and have a stronger core.

We also offer prenatal exercise, which we learned also helps women conceive. We have gentle exercises for balance and coordination for more mature clients, or anyone with injuries or special conditions. Even male athletes go to us for a stronger core and back,” said Krishna.

During the interview, Ole demonstrated how to use the reformer machine, which was invented by Pilates founder Joseph Pilates. The bed-like frame has a flat platform, which rolls back and forth on wheels within the frame. This platform, or carriage, is attached to one end of the reformer by a set of springs, which provide choices of different levels of resistance as the carriage is pushed or pulled. If the reformer looks like a hospital bed, it is because it was inspired by one.

“The reformer was used to help rehabilitate injured soldiers,” said Ole. The reformer has a higher level of difficulty so those who are younger and older than the average Move With Options client use the classic reformer machine. The reformer helps improve overall strength, flexibility, coordination and balance. It also offers relief from back pain and imbalances.

Krishna used to have mild scoliosis and had to go to a chiropractor at least once a month for alignment and pain management.

“A few months into doing Pilates, my back pain disappeared and there was no longer any need for me to go back to my chiropractor.”

Move With Options’s slimming, toning, healing and rehabilitating exercises and programs are centered on Classical Pilates practices, including Core Barre, Core Suspend and Core Reform. These three systems are known as the tripod of Smart Movement, a unique approach that aims to motivate movement and bring about a transformation in whole mind-body health.

The health benefits of Pilates include increased flexibility and strength without bulk, improved core strength and posture, added energy and weight loss.

For more information, contact Move With Options at 216-6607 and 752-2080. You can connect with them on Facebook (www.facebook.com/movewithoptions) and Instagram (@movewithoptions). ■