Caraga InFocus - January 14-20, 2017

14 - 20 January 2017

REGIONAL NEWS

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Caraga RPOC chair underscores synergy of stakeholders to pursue peace, development

Volume 1, No. 42

contents

PROVINCIAL NEWS

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Barangays practicing good governance, recognized

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DOH Caraga warns public to take extra care during flood, heavy rains

HEALTH NEWS

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Variety of foods for a healthy life

DTI funds P236M to 267 BuB projects

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COVER

16 Caraga’s abaca 17 industry on the 18 rise 19 20 22

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AgSur IPs learn financial literacy

24 MINDANAO NEWS

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Mindanao’s top official briefs Japan’s PM team on regional investments

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AgSur ARBs participate in training for competitiveness AgSur contingent wins in Kahimunan Festival’s street dancing competition 125 DAR-assisted ARBOs undergo assessment BuB women recipients embrace entrepreneurial mindset TD Auring inflicts P60M irrigation projects damage in SurSur

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NATIONAL NEWS

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PRRD’s Micro-fund program to pilot-run this month, says DTI Tax reform to fund infra buildup, spur growth above 6 percent

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News Briefs As per DOTr Caraga’s record, as of Jan. 13, 2017, a total of 36,642 drivers’ license plastic cards are still pending at the Butuan City District Office.

The municipality of Jabonga in the province of Agusan del Norte was declared under State of Calamity at 1:00PM of January 20, 2017 as per Municipal Resolution No. 17-02-2017.

The releasing of doves & community singing led by government officials culminated the short program of 118th anniversary celebration of the formal & official hoisting of the Philippine Flag in Mindanao held at Guingona Park, Butuan City.

The Presidential Communications Office (PCO) holds the ASEAN-PCOO Roadshow as part of its Information Education Communication Campaign on the country’s chairmanship of the 2017 Association of Southeast Asian Nations (ASEAN) and other related matters, including media security and Freedom of Information (FOI).

Cover Story

Caraga’s abaca industry on the rise By: Fretcher D. Magatao

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UTUAN CITY – Abaca fiber in the region, particularly in the province of Agusan del Norte, will soon be saturating the local and foreign market as the Department of Agriculture-Caraga recently leads the groundbreaking ceremony for the establishment of a P15M abaca fiber warehouse with drying area at Santiago, Agusan del Norte.

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The San Isidro Upland Farmers Multi-Purpose Cooperative (SIUFMULCO) gained funding support from the DA’s Philippine Rural Development Project (PRDP) for its abaca fiber production and trading enhancement project with a total approved project cost of P31M, P16M of which is for the enterprise development component.

“Our membership has increased in the cluster areas since we started working for the realization of this project. Surely, many abaca farmers can benefit with this project,” said Leonora Mila, general manager of SIUFMULCO.

SIUFMULCO has five clusters in selected municipalities all over Agusan del Norte with a total membership of at least 600 abaca farmers. These clusters are operating in the municipalities of Santiago, Nasipit, RTR, Kitcharao and Cabadbaran City.

Farmers in the areas often encounter challenges with drying and stripping since the weather is unpredictable and the machine they have is old and at times the unavailability of an authorized person to do the stripping. All these concerns will be met because of the interventions provided by the project.

Planting materials, organic fertilizer, nursery and stripping machines

will be equally distributed to the cluster areas as part of the provision of the project package. “With this project, farmers will be more inspired and idler lands will be planted with abaca,” Mila added.

Post-harvest facilities such as baling machine, forklift, wood pallets and push carts to enhance production of quality fiber were also included in the package. Two hauling trucks, moisture meter, and weighing scales would also support the efficient marketing and trading activities.

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Cover Story

“This is the kind of project we need in the province. Our goal is not just to help, but also to encourage and influence other farmers to do more,” said Agusan del Norte provincial board member Victor Carmona.

The said facility will then serve as the standard grading and baling center accredited by the Philippine Fiber Development Authority (PhilFIDA).

With this, SIUFMULCO is expecting more abaca traders coming from other provinces in Caraga including neighboring regions from Davao and Northern Mindanao because of the expansion of the abaca project.

Abaca is a great demand in the world market today since its material is

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being used for making security papers, paper money, ropes, insulators and other handicraft items.

The Department of Agriculture under the leadership of Secretary Manny Piñol, has been keen on reviving the Abaca Industry considering its potential in the local and global market.

“With the cooperation of local government units (LGUs) and farmer groups, we will continue to propose for more projects for the strengthening and development of viable agri-fishery enterprises through efficient value chains of key agriculture and fishery products,” said I-REAP component Head Lynn Pareñas. (RPCO-13)

Photo Gallery Agusan River Ocular Inspection 19 January 2017

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REGIONAL NEWS

Caraga RPOC chair underscores synergy of stakeholders to pursue peace, development By: Venus L. Garcia

BUTUAN CITY – In her term as the new Caraga Regional Peace and Order Council (RPOC) chairperson, Agusan del Norte Governor Ma. Rosedell Amante-Matba made emphasis on encouraging each council member and stakeholder to perform their tasks appropriately in order to attain the goal of improving the lives and economy through a violence and insurgency-free region during the recently concluded 1st Quarter Meeting for CY 2017 held in this city.

“It is vital to keep active involvement, to be present during the meetings and to do what is mandated to us. We should aim for excellence in doing our work because the level of commitment will spell a difference on the efforts in solving the many

problems encountered within community,” said Matba.

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For 2017, the implementation of Mamamayang Ayaw Sa Anomalya, Mamamayang Ayaw sa Ilegal na Droga or ‘MASA MASID,’ a program

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Regional News which aims to encourage communities to take a proactive stance in the government’s fight against corruption, illegal drugs, and criminality, 911 Program and Task Force Agila will be given focus as part of the peace and order and public safety programs of the Department of Interior and Local Government (DILG) Caraga.

On resource-based conflicts, the RPOC Caraga will be working on the decrease of environmental degradation, sustainable utilization and management of natural resources. While on insurgency, it will be on the increase participation of government approach, access to basic services such as the ‘Payapa at Masaganang Pamayanan’ or the PAMANA, Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services (Kalahi-CIDSS), Alternative Learning System (ALS) and Salin Tubig programs.

“We can be a great precursor in the implementation of these programs.

This body should employ combined efforts and concentration on areas that require necessary actions,” added Matba.

Also, the council is putting attention on the decrease of drug affectation in association to the endeavor of eliminating criminality.

Issues affecting the indigenous people are still counted as a concern that has to be dealt with.

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Meanwhile, Philippine National Police (PNP) Caraga regional director and RPOC vice chair CSupt. Rolando Felix assured that continuity of their operations is being done. He added that the PNP officers are doing their best in order to achieve and sustain the anti-illegal drugs campaign and operations.

“A whole-of-nation approach in addressing the concern for surrenderers such as the rehabilitation and alternative livelihood program, and internal cleansing in private and government sectors are still a challenge that we have to work out,” stated Felix.

As an update, the Department of Health Caraga through Dr. Ernesto Pareja disclosed that they are set to hold a conference with the anti-drug abuse stakeholders to address different issues and concerns pertaining to the establishment of Community-Based Treatment (CBTx) in the communities.

The department also readies for giving support to local government units in the conduct of basic training of physicians on diagnosis and management of drug dependence.

Status of undertakings and accomplishments of RPOC for the previous calendar year were likewise tackled in the said meeting. “In joint action, perseverance and dedication, peace and development in Caraga region is viable,” said Matba. (VLG/PIA-Caraga)

Regional News

DOH Caraga warns public to take extra care during flood, heavy rains By: Nora C. Lanuza Molde

BUTUAN CITY – The Department of Health (DOH) Caraga warns public to take extra precaution during flood and heavy rains.

In an advisory released by the department, DOH Caraga regional director Jose R. Llacuna, Jr. suggested to take safety tips by making sure that the drinking water is from a safe water source, in the case of doubt, boil the water for two minutes or longer to make it safe.

Llacuna also said that the food to be eaten is well cooked; leftovers should be covered and kept away from household pests. Proper disposal of food waste should also be maintained.

During the flood and heavy rains period, personal hygiene by always washing hand before and after eating should be observed. Wearing

comfortable clothing, bringing umbrellas, rain coats, and boots to protect from water-borne and vectorborne diseases like leptospirosis, hepatitis A and dengue should be practiced during those periods.

Also, director Llacuna warns parents not to allow their children to wade in floodwaters to avoid diseases; clean up possible mosquito breeding sites, such as vases and old tires. Stay away from hanging wires and unstable structures all the time.

For situation updates, Llacuna further said that everyone should listen to radios and/or televisions; and to stay inside a house or building during the heavy rains. (NCLM/PIA-Caraga)

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Regional News

DTI funds P236M to 267 BuB projects By: Jennifer P. Gaitano

BUTUAN CITY – The Department of Trade and Industry (DTI) Caraga has funded a total of P236 million for the 267 projects in the region under the Bottom-Up Budgeting (BuB).

According to DTI Caraga regional director Brielgo Pagaran, in partnership with the local government units, a total of 267 projects were implemented since year 2014.

“The projects funded are those under the department’s menu such as the One Town One Product (OTOP) Store, Yaman Pinoy, Shared Service Facility, Rural Micro Enterprise Promotion, Industry Cluster and other business development activities,” disclosed Pagaran.

Pagaran further said that in Caraga, projects funded are on processed food, arts and crafts, manufacturing, trading and services.

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“As of December 2016, DTI-BuB in the region has generated 2,650 jobs and developed/assisted 2,300 enterprises,” added Pagaran.

The BuB is a national governments initiative that aims to contribute to poverty reduction and inclusive growth by making governance responsive to local needs and public resource allocation more efficient through the participation of grassroots in the budgeting process.

DTI is one of the implementing agencies for projects on the development of Micro, Small and Medium Enterprises (MSMEs). (JPG/PIACaraga)

Photo Gallery 118th Anniversary Celebration of the Formal and Official Hoisting of Philippine Flag in Mindanao Guingona Park, Butuan City 17 January 2017

AGUSAN DEL NORTE

Barangays practicing good governance, recognized By: Nora C. Lanuza Molde

CABADBARAN CITY, Agusan del Norte – The city government here spearheaded a ceremony aimed to honor the barangays that are espousing the principles of good governance in the city.

The ceremony dubbed as “Gawad Galing sa Katangi-tangi at Tapat (GGKaT) na Pamamalakad” provided incentives to the winning barangays with barangay

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development projects.

They also received a marker that symbolizes excellence in barangay governance.

Provincial News

To become an awardee, a barangay must receive a rating for its 2015 performance results of more than 80 percent based on the standards set by the Department of Interior and Local Government (DILG) and the city government.

The barangays who got a performance rating results of 90 percent to 100 percent (Gold Passer Awardees) were: Katugasan with 100 percent; Mabini - 100 percent; Poblacion 3 - 99 percent; Calamba - 96 percent; Poblacion 4 - 95.5 percent; Poblacion 5 - 94 percent; Poblacion 8 - 94 percent; Kauswagan - 93 percent; Tolosa - 93 percent; Poblacion 7 - 92 percent; Comagascas - 92 percent; Puting Bato - 91 percent; Poblacion 2 90.25 percent; and Del Pilar with 90 percent rating.

For those barangays with below 90 percent but not below 80 percent performance rating results, they belong to the Silver Passers, were: Antonio Luna - 87.75 percent; Soriano - 87 percent; Poblacion 11 - 83 percent; Cabinet - 82 percent; Poblacion 1 - 80.75 percent; and Poblacion 12 with 80 percent.

During the ceremony, special awards were also given to some

barangays.

An Excellence in Participatory Governance was given to the barangays of Poblacion 5; Cabinet; Katugasan; Mabini; and Soriano.

And award for the Excellence in Accountable Governance was also given to the barangays of Poblacion 3; Poblacion 4; Poblacion 7; Calamba; Comagascas; Kauswagan; Katugasan; Mabini; Puting Bato; and Tolosa.

Barangays Poblacion 3; Poblacion 5; Poblacion 8; Poblacion 11; Antonio Luna; Cabinet; Del Pilar; Katugasan; Mabini; and Soriano also received the Excellence in Responsive Governance awards.

For the Excellence in Transparent Governance Awards, the following barangays were awarded: Poblacion 3; Del Pilar; Katugasan; Mabini; and Mahaba.

The awards were handed over by city mayor Katrina Marie O. Mortola, 2nd district representative Erlpe John “Ping” M. Amante, and city councilors Alvin Balinos, Andy Ceniza, Jerich Cuasito, Leo Jongko, and Phillip Ramirez. (NCLM with a report from LGU Cabadbaran City/PIA-Agusan del Norte)

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AGUSAN DEL SUR

AgSur IPs learn financial literacy By: Jennifer P. Gaitano

BUTUAN CITY – Some 26 Indigenous Peoples (IPs) of the Manpahanao Clan of Esperanza, Agusan del Sur were recently trained on how to manage their financial resources.

This was thru the initiative of the Department of Trade and Industry (DTI) of the province.

DTI-Agusan del Sur provincial director Brenda Corvera stressed that the seminar on Financial Literacy was introduced to IPs so they will know better how to handle and manage their resources, as well as in their initiated project so they will be able to make sure that it will have enough funds to provide for their family’s daily needs.

“The seminar, which is one of the components of the 2016 BottomUp Budgeting (BuB) project dubbed ‘Yamang Pinoy on Handicraft Making’ was facilitated by the local government unit of Esperanza and our office. We will provide more trainings

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to the IP sector in the province that will give them better opportunities,” Corvera highlighted.

Meanwhile, Julieto Engag, chairman of the Manpahanao Clan in Esperanza also expressed his gratitude to the organizers of said seminar. “We are thankful as the knowledge shared by DTI helps us a lot in developing our capacity to handle our financial resources and do family budgeting. It has also awakened us on how important it is to build savings and emergency fund,” he shared.

(JPG with a report from DTI-AgSur/PIAAgusan del Sur)

Provincial News

AgSur ARBs participate in training for competitiveness By: Jennifer P. Gaitano

BUTUAN CITY – The Department of Trade and Industry (DTI) Agusan del Sur together with the Department of Agrarian Reform (DAR) has recently trained some 21 agrarian reform beneficiaries (ARBs) to improve their ways in producing quality goods.

DTI-Agusan del Sur provincial director Brenda Corvera bared that these ARBs are members of the Kaagap Development Multi-Purpose Cooperative (KAAGAPMUCO) of Hubang in the municipality of San Francisco and RAM Agrarian Reform Beneficiaries Multi-Purpose Cooperative (RARBEMPCO) in Rosario.

“The trainings include Good Manufacturing Practice (GMP), Hazard Analysis and Critical Control Point (HACCP), as well as entrepreneurial seminars,” disclosed Corvera.

Corvera added that the HACCP

is a tool to strengthen food handlers, introduced the beneficiaries to a more systematic approach that will ensure food safety through preventive measures which will reduce hazards.

(JPG with a report from DTI-AgSur/PIAAgusan del Sur)

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Provincial News

AgSur contingent wins in Kahimunan Festival’s street dancing competition

By: Jennifer P. Gaitano

The combined contingents from Barangay Sta. Irene, Prosperidad and San Francisco, all in Agusan del Sur grabbed the second place during said competition and received the cash prize amounting to P175,000.00.

The third place was also awarded to the Father Saturnino Urios College of Bayugan Incorporated of Bayugan City, Agusan del Sur and received the cash prize amounting to P140,000.00.

Also, the Festival Queen award was given to Libertad Central Elementary School, which also received the consolation prize amounting to P60,000.00.

Meanwhile, the following contingents received special awards: Best in Street Dancing - Sta. Irene, Prosperidad and San Francisco, Agusan del Sur; Best in Costume - Lamingan

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BUTUAN CITY – The Lamingan National High School of San Luis, Agusan del Sur grabbed the championship during the Street Dancing Competition of the 2017 Kahimunan Festival held at Libertad Sports Complex here.

They received the cash prize amounting to P200,000.00.

National High School of San Luis, Agusan del Sur; Best in Musicality - Sta. Irene, Prosperidad and San Francisco, Agusan del Sur.

Agusan del Sur 1st District Representative Ma. Valentina Plaza graced the event and extended full support to all the contingents from the province.

The Kahimunan Festival is an annual festivity at Barangay Libertad, this city. Held every third Sunday of January, Kahimuan is the city’s version of the Sinulog of Cebu. It is the gathering of locals and tourist in celebration of the Sto. Nino (holy child).

The Kahimunan Festival got its name from a local dialect of the Manobo tribe which means ‘gathering.’ Thus, it is a gathering to give thanks in honor of the child Jesus. (JPG/PIA-Caraga)

SURIGAO DEL NORTE

125 DAR-assisted ARBOs undergo assessment By: Daryll M. Tumbaga

SURIGAO CITY, Surigao del Norte - A total of 125 agrarian reform beneficiaries organizations (ARBOs) in both the provinces of Surigao del Norte and Dinagat Islands subjected themselves to an Information Technology-enabled Maturity Assessment (ITeMA) conducted by the provincial lead enumerators (PLEs) of the provincial office of the Department of Agrarian Reform in Surigao del Norte (DAR-SDN) on November 7 to December 8, 2016.

Four ITeMA PLEs of DAR-SDN were trained and tasked to spearhead the said assessment to the DAR-assisted ARBOs of which 56 were from Surigao del Norte and 69 from the Dinagat Islands.

The said assessment covered the organizations’ operations and activities from January to December 2015.

The ARBOs were assessed under five major indicators namely, 1) organizational management, 2) business enterprises and social

services, 3) resource and financial management, 4) alliance building, and 5) social and environment responsibility.

According to Ms. Vergenia N. Canada, manager of Mary Sampaguita Auto-Savings Agra Multipurpose Cooperative of San Jose, Dinagat Islands, “the ITEMA is very useful for us because it identified our strengths but most importantly spotted our weaknesses that would definitely help us in improving our organizational operations and activities”.

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Provincial News

On the other hand, Sabina C. Honor, chairperson of Pagao Farmers Association of Sitio Pagao, Brgy.

Campo in Bacuag, Surigao del Norte was happy that their association was able to undergo the assessment. “The ITEMA made us open our eyes that there are lots of work to be done in order for our organization to stand on its own feet basing on the assessed criteria. Especially that we have plans of making this association into a cooperative the soonest. The ITEMA has given us tips on how to become a good performing organization in the

next years to come,” said Honor.

The ITeMA for ARBOs seeks to come up with comprehensive and realistic results of assessing the levels of maturity of the DAR-assisted ARBOs, to bring to fore the development gaps or the interventions yet to be provided, and to create a database of DARassisted ARBOs from which updated and comprehensive ARBO profiles can be readily generated. (Daryll M. Tumbaga, DAR-SDN/PIA-Surigao del Norte)

BuB women recipients embrace entrepreneurial mindset By: Susil D. Ragas

SURIGAO CITY, Surigao del Norte – The Sta. Fe Women Association in Barangay Sta. Fe, General Luna of Siargao Island embraced an entrepreneurial mindset through Cocosugar Production under the Start Your Own Micro Enterprise Project which was funded by the Department of Trade and Industry (DTI).

Sta. Fe Women Association is composed of 30 active women members and is a recipient of 2014 Bottom-Up-Budgeting (BuB) Program implemented by the local government unit of General Luna and funded by DTI in the amount of P500,000.

According to Trade and Industry Development Specialist Ninebeth A. Romo-Balighot BuB is a poverty reduction program of the government

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that aims to improve and uplift the quality of life of every beneficiary by stimulating economic activities that would generate additional household income.

She said that through the said program, the association was given an opportunity to start a business venture that would discover their potential of being entrepreneurs.

“They already participated at

Provincial News

the DTI Negosyo Konsyumer ATBP Event on November 7-10, 2016 held at the Almont Inland Resort and Robinsons Place in Butuan City and attended trainings and seminars which provide them additional knowledge beneficial to their business,” Balighot said.

Balighot said the members of the association also undergo a packaging and labeling training for the packaging design of their product in preparation for their full operation on the first quarter of 2017.

Balighot further said that cocosugar business is identified as viable project by the association considering the raw material for the production is abundant in their area and the

availability of the ready markets in the locality especially the existence of resorts owned and operated by locals and foreigners is also a big factor considered for the establishment of the said project.

“The whole island of Siargao is the initial target market of their cocosugar product, particularly the muninicipality of General Luna. As an island being internationally famous and known to be the Surfing Capital of the Philippines, increasing arrivals of both local and foreign tourists is expected. So, it’s an advantage since the increasing number of buyers would mean greater opportunity to promote their products,” Balighot added. (DTI-SDN/PIA-Surigao del Norte)

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SURIGAO DEL SUR

TD Auring inflicts P60M irrigation projects damage in SurSur By: Nida Grace P. Barcena

TANDAG CITY, Surigao del Sur – The Surigao del Sur Irrigation Management Office bared that around P60M worth of damage on irrigation projects was noted due to floods brought about by the tropical depression Auring over the weekend, here.

Based on the assessment report received from the National Irrigation Administration-Surigao del Sur Irrigation Management Office headed

by Engr. Ferdinand Amon, some of their facilities and infrastructures were reportedly damaged and some were washed out due to flooding.

A total of 5,177 farmers were affected from the cities of Bislig and Tandag and municipalities of Madrid, Cantilan, Tago, San Miguel, San communal irrigation system (CIS) and Agustin, Lanuza, Marihatag, Cagwait, national irrigation system (NIS).

Lianga, Barobo, Hinatuan and Lingig.

Accordingly, the assessment revealed that the infrastructures that were reportedly damaged include Sta Felomina Dam in Tandag City, Hubo Dam in San Agustin, irrigation projects in San Miguel town and other

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It can be recalled that during that time the province of Surigao del Sur was on a storm signal number 1 it and was forecasted that TD Auring will make landfall to Surigao del Sur but had later shifted to the other area.

(PIA-Surigao del Sur)

Photo Gallery Department of Transportation (DOTr) Caraga Press Conference Regional Office, Butuan City 17 January 2017

HEALTH NEWS

Variety of foods for a healthy life By: Jund Rian A. Doringo

Did you know that no single food of energy giving foods such as rice, can provide all the nutrients the body bread, and root crops, foods that needs? promote growth development such as meat, milk, and legumes, and

Nutrients provides cells and foods that maintain body processes organs the necessary food to maintain such as vegetables and fruits. the body’s functions that support life.

The first recommendation of the

Eating a variety of foods 2012 Nutritional Guidelines for Filipinos everyday from all the food groups (NGF) is to eat a variety of foods provides the needed nutrients by everyday to get the nutrients needed the body, with consideration on by the body. the amount and balance. It can also help in having an attentive Eat a variety of foods to mind. These food groups comprise guarantee a healthy body free of

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Health News macro- and micronutrient deficiency Department of Science and diseases and health-threatening Technology, Bicutan, Taguig City; conditions. trunkline: 837 2071 local 2296 or 2287; telephone/fax no.: 837 3164, email:

For more information on food mvc@fnri.dost.gov.ph or mar_v_c@ and nutrition, contact: Dr. Mario yahoo.com; website: http://www.fnri.

V. Capanzana, Director, Food dost.gov.ph. (FNRI-DOST S&T Media and Nutrition Research Institute, Service/PIA-Caraga)

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MINDANAO NEWS

Mindanao’s top official briefs Japan’s PM team on regional investments

DAVAO CITY – A top government official from the southern island of Mindanao briefed the delegation of Japan’s Prime Minister Shinzō Abe on the region’s investment potentials at a business forum held recently at the Waterfront Insular Hotel here in the city.

The forum, attended by Philippine President Rodrigo Duterte and Prime Minister Abe is organized by the Department of Trade and Industry in partnership with the Davao City Investment Promotion Center.

economy in recent years,” said Secretary Datu Abul Khayr Alonto, chairman of the Mindanao Development Authority (MinDA).

He added the island-region’s Gross Regional Domestic Product

“Mindanao has been experiencing growth posted a 7.5 percent increase unprecedented improvements and in 2014 which surpassed the national significant developments in our average of 6.2 percent.

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Mindanao News

More than 200 key Japanese government officials, private sector representatives and businesspersons from Mindanao participated in the Philippines-Japan Business Forum, which showcased Mindanao as the next investment destination in the Philippines.

Prime Minister Abe earlier pledged $8.7 billion worth of business opportunities and private investments for the country, upon his arrival on Thursday.

soils, and rich biodiversity which makes it suitable for food production and agribusiness development.

As of 2014, Mindanao’s agricultural land area represents 36 percent of the Philippines’ total farm area but yields 43 percent of the country’s total farm produce.

The island-region accounts for 89 percent of the country’s pineapple production, 82 percent of the bananas, and 74 percent of coffee. The country’s 99 percent production of rubber also

“Today’s forum is timely, since comes from Mindanao. we will be able to update the Japanese delegation on the ongoing As for the country’s livestock development initiatives in Mindanao industry, Mindanao contributes 39 and its prevailing business climate,” percent of the country’s production of Secretary Alonto said. goats and 44 percent of its cattle.

Mindanao’s annual investment from 2001 to 2010 only averaged US$125 million, but it leaped to US$1.2 billion average annual investment between 2011 to 2015.

Just days ahead of Abe’s arrival, a group of Japanese investors from Ernst & Young LLC already met with MinDA officials to explore possible partnerships on infrastructure, industrial park and renewable energy projects in

Secretary Alonto said the ten- Mindanao. fold increase in the last four years was buoyed by a capital investments in the “Clearly, there are numerous energy sector with US$3.5 billion from opportunities and business prospects 2011 to 2014. in Mindanao that we can seize and take advantage of under the current

“Mindanao has bountiful natural administration,” said Alonto while wealth as it is touted as the “Food adding “the future of Mindanao looks Basket of the Philippines,” he said while exciting that makes the region as the adding, “it is blessed with favorable country’s next investment destination.” agro-climatic conditions, with fertile (MinDA/PIA-Caraga)

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NATIONAL NEWS

PRRD’s Micro-fund program to pilot-run this month, says DTI

MAKATI - Following President Rodrigo Duterte’s directive to replace the “5-6” money lending system and provide an affordable microfinancing for the country’s micro, small and medium enterprises (MSMEs), the government’s Pondo sa Pagbabago at Pag-asenso (P3) program pilots this month in Mindoro, Sarangani and Leyte, among the top 30 poorest provinces, to represent Luzon, Visayas and Mindanao, the country’s trade chief said.

“The P3 is designed to bring down the interest rate at which micro-finance is made available to micro enterprises,” said Department of Trade and Industry (DTI) Secretary Ramon Lopez.

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The 2017 General Appropriations Act has included an initial funding of P1 billion for financial assistance, a part of the planned P19 billion financing initiative for micro and small businesses in the next five years.

National News

Helping the poorest

for start-ups to P300,000.00, with maximum interest rate of 26% per annum with no collateral requirement.

This rate is significantly below the 20% per day/ week/ month charged by “5-6” lenders. It is also lower than what is charged by most MFIs.

The program’s fund will be lent out in the business centers of the poorest provinces (based on poverty incidence), where the participating microfinance institutions (MFIs) and the Small Business Corporation (SB Corp.) can operate.

MFIs may opt for portfolio guarantee cover of up to 15% of their

An attached agency of DTI, SB P3 loan portfolio from SB Corp at a Corp. shall administer the P3 Program, guarantee fee of 0.4%. The guarantee including the creation of a Program feature is seen to help MFIs address Management Office (PMO), which the P3 Program’s inherent risk. The will open a separate back account guarantee fund will be sourced from for the P3 Program, to oversee the the P3 fund. management and monitoring of fund.

P3 allocates PhP 100 million for

“Fund delivery to microenterprises direct lending by SB Corp. Target loan shall be carried out in either by beneficiaries are the small enterprises wholesale lending to non-bank in priority and emerging industries, financial institutions like MFI-NGOs, start-up businesses and technology and cooperatives which shall on-lend innovators. the fund to beneficiaries or by direct lending by SB Corp,” Sec. Lopez said.

Minimum loan amount will be Php 300,000.00 with interest rate Beneficiaries capped at 10% p.a., with or without collateral cover.

Priority beneficiaries include microenterprises and entrepreneurs “This alternative funding that do not have easy access to credit, dedicated for micro and small or are accessing credit at very high enterprises is meant to discourage cost, such as, micro-entrepreneurs, the 5-6 money lending system in our market vendors, agri-businessmen and country,” said Sec. Lopez, adding members of cooperatives, industry that through the established MFIs, associations and co-operators. the government will reach even the smallest of entrepreneurs in the

Loanable amount per end- country. (DTI) borrower can range from P5,000.00

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National News

Tax reform to fund infra buildup, spur growth above 6 percent MANILA - The Philippines would be hard put in the years ahead to keep Gross Domestic Product (GDP) growth above 6 percent and maintain its status as one of Asia’s fastest-growing economies without a massive infrastructure buildup funded mainly via tax reform, the Department of Finance (DOF) said.

Finance Secretary Carlos Dominguez III said funding the Duterte administration’s ambitious infrastructure program by raising sufficient revenues for tax reform, rather than relying primarily on borrowings, is necessary to keep the budget deficit within the manageable level of 3 percent of GDP beginning 2017.

The incremental revenues estimated to be collected from the first package of the Department of Finance-proposed Comprehensive Tax

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Reform Program (CTRP), amounting to some P163 billion in 2018, is consistent with the planned increase in the budget deficit from 2.7 percent of GDP in 2016 to 3 percent of GDP from 2017 till the remainder of the Duterte presidency.

He said that without tax reform, the deficit of 3 percent of GDP will be breached, leaving the country susceptible to an unsustainable fiscal position, which could lead to a credit rating downgrade that is below investment grade.

National News

“The non-passage of the tax reform package now pending in the Congress will have dire consequences not only on our hard-earned gains in improving our macroeconomic fundamentals but also on the lives of our poor and vulnerable fellow Filipinos,” Dominguez said.

He pointed out that accelerating spending on infrastructure would not only fill the massive backlog left behind by the previous administrations, but would also create more jobs, which would further spur economic growth and help free some six million Filipinos from extreme poverty over the next five years.

“This means there will be no letup in the Duterte administration’s commitment to spending big on urban and rural infrastructure as a growth driver, to guarantee sustained high, inclusive growth,” the finance chief said.

Dominguez explained that the economy’s growth trajectory is already approaching close to our potential growth, and higher growth will only be possible if the country has better infrastructure to support stronger demand and a burgeoning population.

He said the timely approval of the CTRP is crucial to the financial viability of the Duterte administration’s higher public spending policy because it aims

to correct our tax system’s “inherent flaws, such as non-indexation to inflation of rates and large scope of exemptions and special treatments that complicates tax administration” that have for long prevented the BIR and BOC from consistently meeting, much less surpassing, their annual revenue targets.

“Without the tax reform and the higher infrastructure investment, economic growth will be slower in the coming years, and we will be hard pressed to grow above 6 percent,” he said.

“This can cost the government around P30 billion more in debt servicing.

It can also leave the government more vulnerable to fiscal risk as increasing liabilities, such as pensions of uniformed personnel, will be left without funding sources,” Dominguez said.

Infrastructure spending, according to the National Economic and Development Authority, should be increased from 5.4 percent of GDP in 2017 to 7 percent of the GDP in the following years to achieve the country’s vision of reducing poverty and becoming an upper middle income economy by 2022 and close to becoming a high-income one by 2040.

“This means there will be no letup in the Duterte administration’s commitment to spending on urban and

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rural infrastructure as a growth driver, to guarantee sustained high and inclusive growth,” Dominguez said.

Dominguez traced the country’s infrastructure backlog—a deficiency that has blunted the Philippines’ competitiveness in the region as an investment destination—to the sad reality that while the Philippine government has been spending on average just 2.7 percent of our gross domestic product (GDP), our Southeast Asian peers have devoted at least 5 percent of their respective GDPs to infrastructure investments.

He said reforms in tax policy, which require prior congressional approval, will raise additional revenues of P163 billion in 2018 to help bankroll the government’s ambitious infra program.

He noted that the economy’s strong showing in the third quarter with GDP growth at 7.1 percent, is its best in three years. The country’s growth was faster than China’s 6.7 percent, Vietnam’s 6.4 percent, Indonesia’s 5 percent and Malaysia’s 4.3 percent.

Dominguez said the highly optimistic outlook on the Philippines by credit raters and international institutions is premised on the delivery of President Duterte’s commitment to accelerate spending on infrastructure, which can only be accomplished though tax reform.

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Package One the CTRP was submitted by the DOF to the Congress last Sept. 26.

Dominguez said the DOF welcomes the recent statement of Rep. Dakila Carlo Cua, who chairs the House ways and means committee tackling tax reform, that his panel will approve CTRP’s first package this January, while the House will likely act on it in plenary in the middle of this year.

This will let the government keep its target of implementing the tax reforms beginning 2018, he said.

In the medium-term, tax reform is expected to help reduce the poverty rate from 21.6 percent in 2015 to 14 percent in 2022, lifting some six million Filipinos out of poverty, and helping the country achieve upper middle income country status where per capita gross national income increases from $3,550 in 2015 to at least $4,900 by 2022, close to where Thailand is today.

If this momentum is sustained, the country would be well on its way to becoming a high-income economy by 2040 with a per capita gross national income of a least $11,000, which is where Malaysia is right now, he added.

Package One proposes to lower personal income tax rates, broaden the Value Added Tax (VAT) base, and increase the excise taxes on oil products and automobiles.

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The lowering of personal income tax rates, a promise that President Duterte made during the 2016 poll campaign, will increase the takehome pay of workers and make our tax rates more competitive, according to Finance Undersecretary Karl Kendrick Chua said.

A broader VAT base will level the playing field and reduce massive leakages, while higher excise taxes on oil products and automobiles will improve the progressivity of the tax system as richer households consume far more of these products, he said.

“Meanwhile, to protect the poor and vulnerable sectors, highly targeted transfers and subsidies will be provided as part of the ramp up of social spending from 37.3 percent of the 2016 budget to 40.1 percent of the 2017 budget,” he said.

According to a report quoting BMI Research, sustaining the country’s high growth path is dependent on the Duterte administration’s ability to roll out big-ticket infrastructure projects.

“Economic growth performance will largely depend on the Duterte administration’s ability to cut through red tape and get infrastructure and investment projects going, as well as to reassure investors of the government’s commitment to maintain and improve the public-private partnership

program,” read the report of BMI Research published in the January edition of its Asia Monitor.

Also, the Oxford Business Group has cited a November report of ratings agency Standard & Poor’s that said the Philippines was a top performer in Southeast Asia in 2016 partly because of an expansionary fiscal policy that emphasizes public infrastructure.

Other institutions have also said the Philippines can sustain its high growth of above 6 percent and its status as one of Asia’s fastest growing economies, provided that the Duterte administration delivers on its commitment to accelerate spending on infrastructure.

These private and multilateral institutions include the IMF, World Bank, ADB, Fitch Ratings, S&P Global Ratings, Nomura, First Metro Investment Corp. (FMIC), Colliers International, Nordic Business Council of the Philippines (NBCP), Philippine Chamber of Commerce and Industry (PCCI), Employers’ Confederation of the Philippines (ECOP), Goldman Sachs, Bank of the Philippine Islands (BPI), Standard Chartered Bank, Hong Kong and Shanghai Banking Corp. (HSBC), Sun Life Asset Management Co., AB Capital Securities, Lamudi PHL and the Management Association of the Philippines. (DOF)

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