BusinessMirror December 05, 2022

AmCham backs PEZA law revision

By Andrea E. San Juan

THE American Cham ber of Commerce of the Philippines (Am Cham) said it is pushing for the amendment of the Phil ippine Economic Zone Au thority (PEZA) law to allow PEZA-registered business enterprises (RBEs) to adopt a more permanent work-fromhome (WFH) arrangement.

A mCham Executive Direc tor Ebb Hinchliffe revealed to reporters at the sidelines of the Arangkada Forum press briefing on Thursday that the “usual suspects” in

terms of attracting foreign direct investments (FDIs) are high energy cost, labor cost, ease of doing business, and corruption.

However, Hinchliffe put the spotlight on the issue of paper transfer of registration from PEZA to BOI to adopt up to 100 percent WFH arrange ment, noting that all mem bers of the foreign chambers in the Philippines are dealing with this issue.

“ We’re a little concerned . . . I think all of our members are dealing with the current BOI versus PEZA issue be cause that’s a big one—the

WFH issue. We got to really ...one of my priorities is get the PEZA bill, [Corporate Recovery and Tax incentives for Enterprises] CREATE bill revised so that it allows WFH ..that’s a very top priority,” Hinchliffe stressed.

With this, he said the Am Cham is pushing for the amend ment of the PEZA law “absolute ly as fast, as hard as we can.”

“ That’s part of what I was saying about getting the budget down early, getting [Regional Comprehensive Economic Partnership] RCEP out of the way, we don’t have to miss that in January. In

January, we start revising the PEZA bill to allow WFH,” Hinchliffe said.

H e added that the cur rent PEZA law needs to be amended to put a stop to the “continued rift” on the workfrom-home arrangement.

“We’re trying to ...the current investors here... the [business process outsourcing] BPO in dustry in particular are say ing ‘ok that won’t affect the manufacturing, it only affects financial service companies and they want work from home and this bill won’t al low it.’”

See “AMCham,” A2

10-MO N.G. BORROWINGS SLIDE BY A FIFTH TO P2.05T

By Jasper Emmanuel Y. Arcalas @jearcalas

THE national government’s total gross borrowings from January to October declined by a fifth on an annual basis to P2.05 trillion, latest Bureau of the Treasury (BTr) data showed.

T he end-October total borrow ings was P698.683 billion lower than the P2.75 trillion recorded in the same period of last year.

T he 10-month gross borrowings is nearly 93.18 percent of the P2.2trillion total borrowing target set by the national government this year.

B Tr data showed that the bulk of the amount borrowed by the national government as of endOctober consisted of gross domes tic borrowings that reached P1.578 trillion.

T he amount was 29.22 percent lower than the P2.23 trillion re corded during the 10-month period of 2021.

T he lion’s share of gross domes tic borrowings during the refer ence period came from Fixed Rate Treasury Bonds at P1.038 trillion, followed by Retail Treasury Bonds at P878.248 billion.

T here was also a net debt redemp tion on Treasury Bills amounting to P338.439 billion, as more debts were repaid than borrowed.

D ata from the BTr also showed that gross foreign borrowings in the January-to-October pe riod declined 9.072 percent to P471.655 billion from P518.714 billion recorded in the same period of last year.

See “N.G. borrowings,” A2

By Ma. Stella F. Arnaldo @akosistellaBM Special to the BusinessMirror

CONCERNED Filipinos are adding their voices to economists and Phil ippine officials, who have ex pressed their opposition to the proposed legislation, creating a P250-billion sovereign wealth fund, now being rushed for ap proval in the House of Repre sentatives.

A petition on Change.org titled, “Hands off our SSS and GSIS contributions, NO

TO House Bill 6398!” already picked up 16,121 signatures as of press time, exceeding its initial target of 15,000. The petition is picking up steam as it tries to reach a new goal of 25,000 signatories.

T his developed as Bangko Sentral ng Pilipinas (BSP) Gov. Felipe Medalla was cool to the idea of creating the Ma harlika Wealth Fund (MWF), as proposed in House Bill 6398, warning of the dangers of another 1MDB scandal in the making.

By Cai U. Ordinario @caiordinario

HIGH inflation and weak external demand will cast a dark cloud over the coun try’s economic growth prospects un til the second quarter of next year, according to Oxford Economics.

T he dark spell of inflation will reduce domestic consumption, the primary driver of the Philippine economy. Weak external demand, meanwhile, which stemmed from tighter financial conditions being felt worldwide, will also negatively affect the economy.

2022 and H1 (first semester) 2023 as external demand weakens and domestic demand is constrained by relatively high inflation and tighter financial conditions,” Oxford Eco nomics said.

ford Economics, is that most Asia and the Pacific economies are still operating below capacity and that “inflation expectations have gen erally stayed well-anchored.”

I n its latest Asia Pacific: Macro Snapshot, Oxford Economics said the Philippine economy’s growth may have peaked in the third quar ter and is already expected to slide in the last quarter of this year.

In the Philippines, consumer spending unexpectedly surged— with the boost to incomes from re opening outweighing the impact of higher inflation. But we still expect growth momentum to slow across the board in Q4 (fourth quarter)

I n terms of commodity prices, Oxford Economics said the Philip pines along with Japan and Viet nam have been plagued by high food price inflation. Nonetheless, it said, pressures from energy prices, weakening currencies, and supplychain issues have already eased.

M onetary authorities in the Asia and the Pacific region have been raising policy rates and con tinued these actions through No vember. But the responses differ from those who chose to follow in the footsteps of the US Federal Reserve and those who chose to chart their own paths.

See “BSP chief,” A2 See “Inflation,” A2

But, a concern, according to Ox

PHL rice imports post fresh record-high volume in 11 mos

By Jasper Emmanuel Y. Arcalas @jearcalas

THE Philippines’s rice imports breached 3.4 million metric tons (MMT), surpassing market expectations and posting a fresh record-high volume for the world’s second-largest buyer of the staple.

L atest Bureau of Plant Industry (BPI) data showed the country’s total rice imports from January to November 24 has already reached 3.422 MMT.

T he volume was 23.5 percent higher than the 2.771 MMT total rice imported by the Philippines last year, based on BPI data.

T he United States Department of Agriculture (USDA) projected that the Philippines would be pur chasing 3.4 MMT of rice this year from the world market to boost its domestic supply and temper any possible increase in local prices of the staple.

BPI data showed 145  eligible rice

Filipinos...

The SWS said hunger is signifi cantly higher among Losers than among Gainers and Unchanged: in voluntary hunger was 15.7 percent (13.2 percent moderate, 2.5 percent severe) among Losers, compared to

importers and traders used 3,812 sanitary and phytosanitary import clearances to bring in rice products from China, India, Japan, Myan mar, Pakistan, Singapore, Spain, Thailand and Vietnam.

V ietnam remained as the coun try’s top source of imported rice; the Southeast Asian neighbor accounted for 83.57 percent of total import volume during the reference period. The Philippines imported 2.86 MMT of rice from Vietnam.

It was followed by Myanmar at 215,918.180 MT and Thailand at 167,825.375 MT. Pakistan led non-Asean coun

tries in terms of rice exports to the Philippines at 157,175.675 MT, followed by India at nearly 10,000 MT. The Philippines imported 9,328.385 MT of rice from China as well, based on BPI data.

BPI data showed that NAN Stu Agri Traders was the largest rice importer from January until No vember 24 with a total volume of 189,730.35 MT. It was followed by Lucky Buy and Sell at 159,823 MT and Manus Dei Resources Ent. Inc at 154,311.28 MT.

I n September, the Department of Agriculture (DA) said the coun try’s total palay production this year would settle at 19.5 MMT or about 12.754 MMT of rice.

T he DA was confident that the production forecast would be achieved despite “global challenges,” such as pricier fuel and fertilizer.

T he DA noted that the expected total rice import arrival from Janu ary to September would only be at 2.751 MMT.

While all of the remaining is sued import clearances by the Bu

hunger fell from 10.9 percent among the Unchanged. However, it stayed at 9.0 percent among Gainers and rose from 14.9 percent among Losers.

reau of Plant Industry will only be valid until the third quarter and imports are yet to be estimated on the last quarter of this year, based on historical trend, import arrivals start to decline by fourth quarter in time for the peak har vest from October to November,” it said.

T he country’s total palay produc tion from January to September slightly fell to 12.532 MMT from 12.552 MMT recorded volume in the same period of last year, based on Philippine Statistics Authority (PSA) data.

T he PSA earlier reported that the Philippines produced only 81.5 percent of its total rice supply last year, lower than the 85 percent rate recorded in 2020, despite a record-high domestic output. The Philippines posted a record palay output of 19.96 MMT  last year, based on PSA data. (Related sto ry: https:// businessmirror com.ph/2022/11/18/psa-phlproduced-only-81-5-of-its-totalrice-supply-in-2021/)

Poor), and 21 percent rating them selves as Hindi Mahirap or Not Poor.

N.G. borrowings...

O f the total gross foreign borrowings, program loans and multitranche dollar-denomi nated global bonds amounted to P136.6 billion and P234.259 billion, respectively.

T he remaining amount was borrowed through a project loan (P72.24 billion) and through the issuance of yen-denominated Sam urai bonds (P28.552 billion).

For October alone, the national government borrowed P182.429 billion, a quarter higher than the P145.782 billion recorded amount last year, driven by higher gross foreign borrowings, based on BTr data.

Gross domestic borrowings in October was slashed by more than half year-on-year to P56.733 bil lion while gross foreign borrowings surged by 943.20 percent on an an nual basis to P125.696 billion, BTr data showed.

BSP chief...

The fund’s creation has been supported by Finance Secretary Benjamin Diokno, a former central bank governor, who even backed the use of gross international re serves (GIR) and overseas Filipino worker remittances as seed money for said fund.

T he BTr earlier reported that the national government’s outstanding debt as of end-September reached a new record level of P13.52 trillion.

(Related story: https://business mirror .com.ph/2022/11/04/ end-september-phl-debt-hitsrecord-high-%e2%82%a713-52trillion/)

T he country’s outstanding ob ligation has overshot the national government’s projected debt stock level of P13.43 trillion by the end of this year.

T he Treasury said about twothirds of the national govern ment’s outstanding debt were domestic borrowings while the re maining obligations were sourced externally.

T he Treasury said that domes tic debt stood at P9.3 trillion, which was P357.27 billion or 4 percent higher than its end-Au gust level.

ippines, as seed capital for the MWF.

O ther co-authors of the contro versial bill include Reps. Jose “Man nix” Dalipe, Stella Luz A. Quimbo, Yedda Marie K. Romualdez, and Jude A. Acidre.

No to GIR use

9.8 percent (7.5 percent moderate, 2.3 percent severe) among the Un changed and 9.0 percent (7.4 per cent moderate, 1.6 percentr severe) among Gainers.

C ompared to June 2022, it said

T he SWS survey also found 49 percent of Filipino families rating themselves as Mahirap or Poor, 29 percent rating themselves as Bor derline (by placing themselves on a horizontal line dividing Poor and Not

T he Self-Rated Poor are those who belong to households whose heads rated their family as poor or mahi rap. This status is then adopted for all members of the household.

T he Net Gainers score has been historically lower among the Poor than among the Borderline Poor and Not Poor. This means the Poor have more Losers and fewer Gainers than the Borderline Poor and Not Poor.

Net Gainers was a fair -9 among the Poor, compared to the high +6 among the Borderline Poor and the very high +14 among the Not Poor.

C ompared to June 2022, the SWS said the Net Gainers score rose from mediocre to fair among the Poor, up slightly from -11 to -9. It stayed fair among the Borderline Poor, moving from +8 to +6, while it rose from high to very high among the Not Poor, up from +6 to +14. Jovee Marie N. Dela Cruz

Inflation...

T he Philippines is an example of those following the Federal Reserve. It hiked its interest rates by 75 basis points to 5 percent last November 17 (full story here: https://business mirror .com.ph/2022/11/18/ inflation-risks-spur-record-highrate-hike/).

T he Reserve Bank of Australia, however, chose to follow a different path by raising interest rates  by only 25 basis points. “Notwithstanding the idiosyncratic pace of tightening, the overall environment suggests a higher peak for policy interest rates early next year than we had expected in October,” Oxford Economics said.

T he think tank said of the six major Asian economies to announce third quarter GDP performance in November, both Malaysia and the Philippines reported much strongerthan-expected numbers, prompting upgrades for 2022 as a whole.

T hailand may be one exception where growth is stronger in 2023 than in 2022 on the back of its re bounding tourism industry.

E arlier, the National Economic and Development Authority (Neda) said the government is now within striking distance of its GDP growth target for 2022 after the Philip pine Statistics Authority (PSA) announced that the economy grew faster in the third quarter.

T he PSA reported that the econ omy expanded by 7.6 percent in the third quarter. This is faster than the 7.5 percent posted in the second quarter of the year and the 7 percent recorded in the same period last year.

T he latest GDP print brings the average growth in January to Sep tember to 7.7 percent. The govern ment’s GDP growth target for the year is 6.5 percent to 7.5 percent (Full story: https:// business mirror .com.ph/2022/11/11/ growth-goal-for-2022-withinreach-neda/).

O n Friday, 2nd district  Albay Rep. Joey Salceda, chair of the technical working group refining HB6398, released revised provi sions in the proposed legislation meant to allay concerns of the public, economists, and fellow lawmakers. Primarily pushed by House Speaker Rep. Martin Romualdez and Deputy Major ity Leader Sandro Marcos, HB 6398 proposes to use pension funds under the Social Security System (SSS) and Government Service Insurance System (GSIS), as well as funds of state-owned Land Bank of the Philippines and Development Bank of the Phil

AmCham...

Under Fiscal Incentives Review Board (FIRB) Resolution No. 02622, RBEs in the IT and Business Process Management (IT-BPM) sector that have remaining in centives under Section 311 of the National Internal Revenue Code (NIRC) of 1997, as amended by the CREATE Act, or those with ap proved incentives under the CRE ATE Act on or before September 14, 2022, may opt to transfer their registration to BOI to implement up to 100 percent WFH.

T he resolution said an RBE con templating transferring its regis tration to BOI must file a request with its concerned investment pro motion agency (IPA) on or before December 31,2022.

H owever, according to the Department of Trade and Indus try (DTI) Memorandum Circu lar (MC) No. 22-19, those who did not exercise the option to register with the BOI shall be covered by Section 309 of CRE ATE, which states: “A qualified registered project or activity under an Investment Promo tion Agency administering an economic zone or freeport shall be exclusively conducted or op erated within the geographical boundaries of the zone or free port being administered by the Investment Promotion Agency in which the project or activity is registered.”

S ection 309 of CREATE applies to RBEs registered with Peza. Meanwhile, the BOI is the only IPA not affected by the boundary constraints or zone limits.

T he AmCham official called the December 31 deadline for the paper transfer a “one-pager.”But, Hinchliffe said, “we’re looking at it. We’re encouraging our people to go ahead and sign it because it’s a mixture between PEZA and

IN an interview with Bloomberg TV, Medalla said, “To me, the ex perience of 1MDB of Malaysia is the biggest risk. Even if the cur rent guys are okay, will the guys five years from now still be okay? It’s a governance issue.” Under a revised  provision of HB6398, the President of the Philippines, now Ferdinand Marcos Jr., “shall sit as chairperson” of the Mahar lika Wealth Fund Corp., the fund’s administrator. Salceda said  in an interview with GMA’s 24 Oras , it was President Marcos who “or dered” the creation of the sover eign wealth fund.

BOI.”

W hile BOI is not affected by zone limits, Hinchliffe cited the advantages of being a PEZAregistered business enterprise.

“The best plus for PEZA is deal ing with the [local government units] LGUs. BOI does not deal with LGUs. PEZA does. And so that relationship is a must.”

The thing I’ve always been im pressed with PEZA is you can call up the Director General of PEZA at midnight and show up at the phone and watch your problem help you solve it. I’ve not had that luck with BOI,” Hinchliffe said.

PEZA earlier said it would retain the monitoring and reporting of the subject locators’ performance and for other compliance require ments. The paper transfer of regis tration will not involve physically relocating the operations of RBEs or giving up the incentives they currently enjoy.

S peaking at the 2022 Investors’ Recognition Day Peza officer-incharge Tereso O. Panga two weeks ago cited the need to amend the 27-year-old Peza law, particular ly to institutionalize the workfrom-home policy so that the BOI and PEZA are put on  equal foot ing, where both can avail of WFH with incentives.

I n September, IT and Business Process Association of the Phil ippines (IBPAP) President Jack Madrid also recognized PEZA as a “one-stop shop of suite of ser vices that they are able to provide their locators.”

T he head of IBPAP earlier stressed that this is a “big deal” because it “reduces a lot of admin istrative tasks and allows investors to do what they set out to do.” He added that this will remain “a very prominent feature” of remaining with Peza.

The Nation

Tougher consumer shield for Xmas shoppers urged

By Butch Fernandez @butchfBM

AMID an expected surge of frenzied Christmas and New Year shoppers, Sena tor Sherwin T. Gatch alian pressed for tougher protection for customers buying gifts for their love ones, among others.

Gatchalian reminded that as in the past, consumer spending ac celerates ahead of Christmas and New Year festivities, prompting his move to amend the Consumer Act of the Philippines (Republic Act 7394) to strengthen the rights of consumers and enhance mea sures designed to protect them.

In filing Senate Bill (SB) 942, to be known as the “Enhanced Con sumer Act” once enacted into law,

the senator said “it is important that consumers are empowered to make well-informed decisions as they choose products and servic es for themselves and their loved ones as this will also empower le gitimate enterprises to grow their businesses.”

Gatchalian noted that among the amendments provided in SB 942 include requiring English or Filipino translation of product la bels written in foreign characters or languages before they are al lowed to enter the country.

This, he added, would also enable authorities to deter mine whether the product has complied with all other labeling requirements and provide con sumers with proper guidance on the contents and origin of the product.

Basic rights

THE senator’s proposed remedial legislation would “expand author ity to close down establishments caught in flagrante delicto (in the act of committing a misdeed) sell ing substandard and hazardous products.”

The Gatchalian bill also seeks an expansion of regulation on pro tection from aggressive marketing promotions that significantly im pair the average consumer’s free dom of choice on the purchase of a product and service.

“Ang panukalang batas na ito ay naglalayon na lalo pang palakasin ang karapatan ng konsyumer sa bansa at isulong ang maayos na pamantayan ng kalakalan para sa buong ekonomiya,” the senator added. [This bill aims to further strengthen consumer rights in the

country and promote fair trade standards for the entire economy.]

As filed, the remedial legislation provides for the adoption of poli cies that would take into account the basic consumer rights namely the right to basic needs, right to choose, right to representation, right to redress, right to consumer education, right to safety, right to a healthy environment, and right to information.

In addition, the bill spells out responsibilities that consumers need to exercise, including “criti cal awareness, consumer action to assert and ensure that their rights are protected and not exploited, and social concern or becoming more aware of the impact of the consumption on other citizens, environmental awareness, and solidarity.”

DOH eyes 50% booster dose coverage

THE Department of Health-Center for Health Development (DOH-CHD) in Calabarzon (Cavite, Laguna, Batangas, Rizal, Quezon) aims to reach the 50-percent first booster dose coverage among pediat ric group and the first booster for 12 years and above.

Together with the World Health Organiza tion (WHO), Unicef Relief International, the Philippine Pediatric Society Southern Tagalog Chapter (PPS-STC) and the Philippine Foun dation for Vaccination, in partnership with different local government units across the region, the DOH-Calabarzon will engage in the national campaign dubbed as “Bakunah ang Bayan: Biyayang Proteksyon sa Paskong Pilipino,” which will be held from December 5 to December 7.

“Before the year ends, we are hoping that more people would want to come and avail the Covid-19 vaccines. In this cam paign, we are targeting the young ones aged 5-11 years and the first booster for 12 years old and above,” DOH Calabarzon Assistant Regional Director Leda M. Her nandez said.

The kick-off is set on December 5 at the Jose F. Diaz Memorial Stadium, Barangay Guitnang Bayang I, San Mateo, Rizal and will be spearheaded by DOH Undersecretary Dr. Enrique A. Tayag, Municipality of San Mateo Mayor Bartolome N. Rivera Jr. and other DOH LGU of San Mateo staff.

“Ito na ang magsisilbing pamasko natin sa kanila, gawing mas ligtas ang bawat isa sa darating na pasko,” Hernandez added. [This

will serve as our Christmas gift; to have a healthier Christmas for each one.]

Based on data from the Regional Vac cination Operations Center (RVOC), about 10,751,799 (91 percent) have completed their primary series of the Covid vaccine as of November 29. But only 3, 255,306 (28 percent) individuals have received their first booster shots.

Immunization for children

APART from the Covid-19 vaccination, DOHCalabarzon will, likewise, hold routine immunization in Areza Mall and Shopping Complex, in Pagsanjan, Laguna on Decem ber 6 dubbed as “Bakunahang Bayan 2: Biyayang Proteksyon sa Paskong PilipinoBatang Bakunado, ProtektoDOH” targeting

children ages 0-23 months.

The said campaign aims to increase the coverage for the country’s fully immunized children (FIC), recorded to have been criti cally low during the Covid-19 pandemic.

The FIC in the Calabarzon region is only 33.96 percent, lower than the data recorded last year at 56.17 percent. The original target for routine immunization for children was 95 percent, but according to the DOH it is unlikely to be achieved. Instead, they will only target to exceed the coverage this year.

The DOH urged parents to ensure that their children complete the required doses and schedule of routine immunization to protect them from vaccine-preventable diseases.

Senate set to scrutinize Maharlika Wealth Fund; House touts safeguards

Continued from A10

Earlier, Estrada backed Senate President Juan Miguel Zubiri’s posi tion to have the matter studied care fully by a select group of senators and provide the upper chamber feedback on the essence of the MWF.

Such study, he said, “will deter mine the pros and cons of MWF and if the Senate President assigns the senators concerned, maybe it’s good to set a timetable on when they can finish studying the MWF.”

Assurances

A S th e House is expected to conduct a public consultation on the pro posed Maharlika Wealth Fund Act, economist-lawmakers have assured the public that investments of four government financial institutions (GFIs) to set up the Fund   will not affect the benefits provided by these institutions.

House Committee on Appropria tions Senior Vice Chairperson Stella Luz Quimbo, principal author of the MWF bill, said the initial investment of the GFIs to start up the fund will not have any negative impact on the delivery of services or benefits to the stakeholders of these institutions.

“Their investible funds are sepa rate from the funds earmarked for benefit payments,” Quimbo said.

The House Committee on Banks and Financial Intermediaries is set to conduct a public consultation on Monday (December 5) on the proposed creation of MWF.

Under House Bill 6398, Gov ernment Service Insurance System (GSIS), Social Security System, Land Bank of the Philippines, the Develop ment Bank of the Philippines, and the national government are mandated to invest equity with a combined total

of P270 billion to start up the fund.

GSIS will provide an initial invest ment of P125 billion, P50 billion will come each from the Social Security Sys tem and Land Bank of the Philippines, P25 billion from the Development Bank of the Philippines and P25 billion from the Treasury of the Philippines.

GSIS President and General Man ager Jose Veloso, SSS President and CEO Michael Regino, and Land Bank of the Philippines President and CEO Cecilia Borromeo assured the public that they have enough investible funds to invest in the Fund.

Earlier, DBP President Emmanuel Herbosa also informed the committee that DBP supports the proposed MWF.

Speaker Martin Romualdez has explained that the creation of MWF will provide an “opportunity to ensure their respective funds’ optimal asset allocation as well as ensure that re sources are efficiently channeled to investments that will provide the most value not only to the participating GFIs but also to the country.”

Safeguards

F OR his p art, House Committee on Ways and Means Chairman Joey Sarte Salceda,  chairman of the TWG that hammered out provisions of the bill, said they introduced sufficient safe guards to ensure that the fund will be governed properly, and will yield returns to pension funds and govern ment banks.

Last week, Bangko Sentral ng Pili pinas (BSP) Governor Felipe Medalla and Senator Imee Marcos expressed concern on the creation of MWF—the Philippines’s version of 1Malaysia De velopment Berhad (1MDB).

“I introduced that provision in stead of the more maximalist initial provision that the BSP be required to infuse an equivalent of 10 percent of

foreign currency earnings from the BPO and OFW sectors every year. In vesting portions of the BSP’s bottom line also ensures that its operations are fully independent. The bottom line is also peso-denominated, so investing portions of it shouldn’t affect BSP’s F/X operations,” he said.

Under the bill, as a subsequent annual contribution to the fund, the BSP shall provide 50 percent of its annual dividends while Pagcor shall contribute at least 10 percent of gross gaming revenue streams created after the effectivity of this proposal.

“The TWG also ensured that the BSP’s operations, rule-making, and enforcement power was not, in any way, curtailed,” said Salceda.

“Regarding his concern about the continued willingness of GFIs to in vest, I introduced a withdrawal pro vision that allows them to pull-out after 2028 if they so desire, subject to board policies, which they also com pose anyway. So, that issue has also been settled,” he added.

As for the risk of a 1MDB repeat, Salceda said the BSP has more pow ers over this fund than Malaysia’s monetary authorities had over 1MDB.

“The BSP can sanction both the GFIs and the Fund itself, and even order the unwinding of the involved financial institutions themselves as the BSP’s Supervisory Enforcement Policy allows,” he added.

According to Salceda, the Malay sian central bank had warned the Central Government about the risks 1MDB was taking as early as 2014.

“It couldn’t do much on its own. In sharp contrast, the BSP does not need to warn the government. The BSP can conduct enforcement ac tion on its own. I am also open to an amendment that spells out that the Fund will remain a BSP-Supervised

Financial Institution (BSFI), just to ensure that BSP oversight will con tinue to apply,” he said.

On Senator Marcos’s concern about hhastily touching pension funds, Sal ceda said the bill will still go through deliberations in both Houses and the Senate.

“We can discuss the mix of assets that the fund will invest in, but some allocation for foreign securities is necessary. It diversifies the portfo lio and allows the Fund to take po sitions in potentially higher-return investments. A fund that grows faster due to some exposure to high-return foreign investments is better than a smaller and severely constrained Fund exclusively investing in domestic in vestments,” he said.

“That said, I would welcome a proposal to ensure that a certain percentage, at the minimum, of the Fund should be invested in domestic investments,” he added.

Under the bill, the Maharlika Wealth Fund, an independent fund, adheres to the principles of good gov ernance, transparency and account ability. The fund shall be sourced from the investible funds of the country’s top performing GFIs, the Treasury of the Philippines and Bangko Sentral ng Pilipinas.

The bill said the fund shall be used to invest on a strategic and commer cial basis in a manner designed to promote fiscal stability for economic development, and strengthen the top performing GFIs through additional investment platforms that will help attain the national government’s priority plan.

The establishment of the Mahar lika Wealth Fund was patterned after the sovereign wealth fund of other countries, to maximize the profitabil ity of investible government assets.

Permanent Health Secretary pressed

By Jovee Marie N. dela Cruz @joveemarie

THE minority leader of the House of Representatives on Sunday urged Malacañang to designate a permanent Secretary of Health who should be tasked to quickly modernize the country’s health care system and position the Philippines as a global medical hub just like Singapore.

In a statement, Minority Leader Mar celino C. Libanan said that the Philippines has all the assets needed, including highly trained physicians, nurses, medical tech nologists and pharmacists, to advance as an international medical center for foreign patients looking for world-class healthcare.

“In fact, Filipino healthcare profession als are also admired around the world as the most caring. We have to capitalize on this,” Libanan said.

“We should aspire to be like Singapore, which receives more than 160,000 foreign patients who undergo over 70 kinds of medical treatments or procedures every year,” said Libanan, who holds a degree in medical technology.

According to the lawmaker, a growing number of wealthy Filipinos are already flying to Singapore just to seek medical treatment.

“This is not just about medical tourism. This is also about providing every Filipino,

rich or poor, access to world-class medi cal treatment services through our public health system,” Libanan said. Since assuming office, President Fer dinand R. Marcos Jr. has not nominated a Secretary of Health. The Department of Health (DOH) is currently led by Undersec retary Maria Rosario Clarissa S. Vergeire as officer-in-charge.

A permanent DOH chief is needed to lead the country in the race for world-class healthcare, according to Libanan.

PPP

LIBANAN called for effective public-private partnerships (PPP) to put the Philippines at the forefront of medical developments.

“We must also develop complimentary medical research and education capaci ties through international collaborations,” Libanan said. “If necessary, Congress should provide tax incentives to lure new interna tional medical schools and research facili ties to operate here.”

The lawmaker also pressed for a multiyear program to simultaneously modernize the UP-Philippine General Hospital, Phil ippine Heart Center, National Kidney and Transplant Institute and the Lung Center of the Philippines, among others.

“The DOH should further develop our specialty hospitals as global centers of ex cellence in healthcare,” Libanan said.

Groups eye SC protection vs. impact of GMO crops

L. Mayuga

VARIOUS groups are pinning their hopes on the Supreme Court against alleged irreversible adverse environ mental impact of the massive cultivation of Golden Rice and pest-resistant Bt-eggplant.

The move is seen as a last-ditch effort by anti-GMO groups and individuals in stop ping the commercialization of the contro versial Golden Rice, a variety genetically engineered to contain beta-carotene and touted as solution to vitamin-A deficiency that is prevalent among Filipino children, and Bt-eggplant, a variety injected with a soil bacterium that repels fruit-and-shoot borer, a pesky insect that can devastate eggplant plantations, the groups said.

In a statement, the groups led by the Magsasaka at Siyemtipiko sa Pag-unlad ng Agrikultura (Masipag) said a petition for the issuance of a Writ of Kalikasan and a continuing mandamus with prayer for the issuance of a “temporary environmental protection order,” or “Tepo,” has been filed before the Supreme Court against propo nents of crops that have been tagged as Genetically modified organisms, or GMOs.

Masipag is one of six organizations that signed as petitioners. Seven individuals led by former Senator Orlando “Orly” S. Mercado asked the High Tribunal to prevent various risks posed by the cultivation of the GMO crops for various health, environment and biosafety reasons.

Crop protection

NAMED respondents in the petition were the secretaries of the Agriculture (DA), En vironment and Natural Resources (DENR), Health (DOH) departments and the direc tor of the Bureau of Plant Industry (BPI), the Philippine Rice Research Institute (PhilRice) and the University of the Phil ippines Los Banos.

The commercial propagation of Golden Rice (transformation event name: GR2E) was approved in July last year while the Bacillus thuringiensis Eggplant or Bt-Egg plant (transformation event name: EE-1 Eggplant) got its permit just last October.

Masipag National Coordinator Alfie Pulumbarit said the issuance of a Writ of Kalikasan and Continuing Mandamus will protect the country’s staple crops, heirloom rice, and landraces, and the traditional, resistant eggplants, the country’s biodi versity, the environment, and the Filipinos’ adjunct rights to balanced and healthful ecology and health.

Pulumbarit argued, among others, that the DA approved the biosafety permit for commercial propagation of Golden Rice and biosafety permit for direct use as food and

feed or for processing of Bt-eggplant, de spite the risks of adverse, irreversible, and nationwide damage to the environment, rice and eggplant biodiversity, and people’s health, setting aside the strict requirements of a new rule that govern biosafety permits and activities at the time of their issuances and other environmental laws.

Another field trial

THE petitioners lamented that the petition for review questioning the issuance of the said biosafety permits was dismissed by the DA, while its attached bureau, the BPI, ap proved the application for seed registration of Golden Rice.

On the other hand, according to farmer Lauro Diego, UPLB recently filed an appli cation for commercial propagation of Bt Eggplant without even conducting another field trial under the new and stricter stan dards of JDC 1-2016. Diego said the permits for commercial propagation of Golden Rice and for direct use as food or feed for BtEggplant have a causal link or reasonable connection to environmental damage of nature and magnitude under the rules of Writ of Kalikasan.

Moreover, the petitioners said the re spondent BPI should be mandated to revoke the biosafety permits for the two GM crops in question for failure to comply with the requirements of JDC 1-2016, the regulation at the time of permit issuance, and other environmental laws.

In allowing the commercial propagation of Golden Rice, the proponents allegedly violated 1st requisite of Writ of Kalikasan which pertains to actual or threatened vio lation of the constitutional right to a bal anced and healthful ecology. Section 15 of Article II of the 1987 Constitution provides that “(t)he State shall protect and promote the right to health of the people and instill health consciousness among them.”

Risk of damage

T EODORO M ENDO z A and D onna Ria JosueCanacan who are both scientists with several years of experience in studying agricultural crops including GMOs, stated that GMOs, such as Golden Rice and Bt Eggplant, are characterized by uncertainties that pose biosafety, biodiversity and agronomic risks that will cause irreversible environmental damage through contamination, crosspollination, accidents, and other means when released to the environment.

According to Mendoza, seed mixing of Golden Rice seeds and Bt Eggplant seeds with non-GMO counterparts causes contamina tion, and it is dangerous because Golden Rice and Bt Eggplant are not proven to be safe for the environment and human consumption.

Jonathan

‘VAT-refund process biggest challenge to ecozone firms’

By Andrea San Juan

THE value-added tax (VAT) refund process is one ofthe “biggest challenge” confronting ecozone locators, according to a top official of the American Chamber of Commerce of the Philippines (AmCham).

AmCham Executive Director

Ebb Hinchliffe told reporters in a recent interview that it takes a while for the Philippine Eco nomic Zone Authority (PEZA) to refund VAT.

“The big problem on the VAT is the refund: It is taking for ever. It’s the biggest problem,” Hinchliffe said.

The AmCham executive noted that it takes years for locators to get their refund.

“This is not just because of the pandemic. All had the same issues getting refunds on VAT,” he said.

PEZA officials said last month there’s a need to resolve issues of locators related to the rules

of the b ur eau of Internal r e venue ( b I r ) on the zero-VAT rating in centive.

PEZA o f ficer-in-Charge Tereso o. Panga said his office has been meeting with the b I r regarding the concerns of locators under the Cor porate r e covery and Tax Incentives for Enterprises (Create) l aw ( r e pub lic Act 11534).

“We have been meeting with the b I r and we raised with them the loca tors’ issues with [revenue memoran dum circulars] on Create concerns,” Panga told the b u sinessMirror last Thursday.

Simple guidelines

THE PEZA chief said some locators want the government to have uni form, simple and transparent guide lines for the conduct, particularly on tax assessment.

“[The] b I r can be more proactive in assisting the locators in terms of compliance with documentary/au dit requirements. This is where the government can enhance the regula tory relief mechanism so locators can

bring up their concerns with higher authorities other than the b I r and the CTA [Court of Tax Appeals],” Panga said.

l o cal business groups including the Philippine Chamber of Commerce and Industry had called on the gov ernment to simplify the availment of the VAT refund, one of perks that PEZA offers to locators.

In o c tober, PEZA reported that the Philippines attracted nearly P40 billion in investments for 148 new and expansion projects in January to September.

However, data from the PEZA showed that the amount of invest ments greenlighted by the invest ment promotion agency (IPA) was 22.6 percent lower than the P51.202 billion it approved last year. The number of projects was also lower this year compared to the 189 re corded in 2021.

Meanwhile, the PEZA chief said there are 13 pending economic zones as of o c tober which are expected to bring in investments amounting to more than P17 billion.

Support to informal workers pushed

By Jovee Marie N. dela Cruz @joveemarie

THE chairman of the House Committee on l a bor and Employment vows to come up with and pass a measure that would protect and uphold the welfare of 17 million “informal workers.” r iz al 4th District r e p. Juan Fidel Felipe F. Nograles said last Sunday that his committee has started last week its delib

erations on 11 separate bills proposing the Magna Carta of Workers in the Informal Econo my (Macwie).

“We see the need for the Magna Carta for informal work ers, who are growing in number as a result of the pandemic,” added Nograles.

The Macwie covers vari ous issues such as basic labor rights, proper working condi tions and benefits, access to re sources like credit facilities and

capacity-building trainings, and decent wages, among others.

Data from the Department of l a bor and Employment shows that 36.2 percent of the total 47 million employed Filipinos, or 17 million workers, are from the in formal sector.

These include self-employed workers such as ambulant ven dors, small transport workers, construction workers, unpaid fam ily members who assist in micro businesses of their families, and

farmers.

Nograles said that since there is still no law that recognizes their rights, many informal workers fall prey to violence and abuse in their workplaces.

“Since they do not have formal documents to prove that they are employees, informal workers do not receive any benefits, and it is also difficult for them to ask for help from the government if they are abused,” said the law maker.

Opening of Calax’s Silang part ‘feasible’

THE Department of Pub lic Works and Highways (DPWH) believes that opening the Silang (Aguinaldo)

section of the Cavite- l a guna Expressway (Calax) by the first quarter of 2023 is still “fea sible.”

Public Works Director for Pub lic-Private Partnership (PPP) Alex G. b o te said the delivery of right of way ( ro W ) for the said section was “slightly” affected by legal matters.

b o te noted, however, that the assistance of the local government units ( l GUs) may hasten the set tlement of the legal tussles.

“Slightly, we’re affected by r o W iss ues at Trial Courts, es pecially at Silang. b ut th ere’s a meeting at the site with the l GU that will assist us to settle such,” he said.

l a st week, Silang Mayor Kevin A. Anarna said the local govern ment unit is going to meet with the Department of Public Works and Highways (DPWH) and private landowners to “speed up the com pletion of the project that is crucial to its development and achieve ment of cityhood status by 2025.”

Currently, the Silang (Aguinal do) Interchange subsection of the Calax is at 64 percent completion rate. o n e critical portion of the expressway lacks a parcel of land roughly 450 meters long which prevents the company from open ing another section of the Calax.

This fifth of the eight segments of the 45-kilometer expressway spans at 3.9-km, with 2x2 lane ex pressway from Silang East Inter change to Aguinaldo Highway in Cavite. Upon completion, this will serve more motorists, including the 298,000 residents of Silang,

given the reduced traffic situa tion.

This has caused the company to commit to opening the said seg ment by the first quarter of 2023, a quarter delayed from the recent December 2022 commitment.

Despite the ro W p roblems, b o te is optimistic that the Calax will be completed within the first three months of 2023.

“Still, the target of completion up to Aguinaldo is feasible by first quarter next year,” he said.

Current average daily traffic is 33,000 from Mamplasan to Silang East interchange. This is expected to increase to 40,000 when the Silang (Aguinaldo) Interchange fi nally opens, thus, easing the usual bottleneck along the 41-km Agui naldo Highway—the busiest main thoroughfare in Cavite—as well as Governor’s Drive and Sta. r o saTagaytay r oa d.

To date, Calax’s operational segment spans 14.24-kilometer with interchanges at GreenfieldMamplasan, l a guna Technopark, l a guna b o ulevard, Santa r o saTagaytay, and Silang East. o th er interchanges of Calax, namely, o p en Canal, Governor’s Drive, and Kawit, are targeted to be completed by 2023. Upon comple tion of the entire public-private partnership (PPP) project of the DPWH and MHI, it will connect to the Manila-Cavite Expressway (Cavitex) in Kawit, Cavite.

Lorenz S. Marasigan

‘Rightsizing’ to displace 739 Duty Free workers

By Samuel P. Medenilla @sam_medenilla

Al A b or group urged President Ferdinand r Marcos Jr. to stop the “rightsizing” in the Duty Free Philippines Corp. (DFPC), which is expect ed to displace over 700 workers by next month.

The Federation of Free Workers (FFW) made the appeal on behalf of the United Workers of Duty Free Philippines (UWD FP) in a letter it submit ted to Marcos last No vember 27.

“We are respectfully requesting this admin istration to stop or hold in abeyance the right sizing plan for the DFPC as more than half of the workforce will be out of jobs on the first day of 2023,” FFW President Jose G. Matula said in the 2-page letter.

l ik ewise, it also urged for the proposed right sizing to be done with consultation with the UWDFP.

FFW said the reorgani zation is expected to af fect almost all of the 739 employees of the DFPC, an agency attached to the Department of Tourism (D o T ).

It noted only some of the displaced workers will be able to apply anew for the 345 approved plantilla position of the DFPC.

Matula said the plan, which was announced in a flag-raising cere mony last November 7, surprised the UWDFP members since the DFPC decided on it without conducting a “significant or meaningful consulta

tion or discussion” with its workers.

“The Union had com municated to the GCG [Governance Commission for Government-owned and controlled corpora tions], CSC [Civil Service Commission] and D o T on the workers objec tions to the retrench ment plan for DFPC but no action has been taken by them except to ac knowledge receipt of the union communication,” Matula said.

As of press time, Malacañang has yet to issue a statement on the matter.

l a st year, DFPC’s rev enue fell to $35 million (P1.93 billion) as pan demic travel restrictions continued to keep tour ists away from the coun try. Minus expenses, the government firm’s loss widened by 47 percent to P558 million, accord ing to a report by the Commission on Audit. In 2019, the government firm recorded sales of P11.86 billion, netting a profit of P470.36 mil lion after expenses. (See “Duty Free Fiesta Mall to be closed, relocated as restric tions against Covid-19 widen losses,” 24 July 2022, Busi nessMirror)

The financial health of DFPC is important as under r e public Act 9593 (Tourism Act of 2009), at least 50 percent of its an nual profits are supposed to be remitted to the o f f ice of the D o T S ecretary to fund tourism pro grams and projects. o f the remitted amount, 70 percent shall be given to the Tourism Promotions b oard, the marketing arm of the D o T

LRT Line 1 to resume ops after integration

By Lorenz S. Marasigan @lorenzmarasigan

THE commercial opera tions of r o osevelt Sta tion of the l i ght r ail Transit ( lr T ) l in e 1 resume today, Monday, after l i ght r ail M anila Corp. ( lr MC) successfully integrated the said station into its new Al stom signaling system.

lr MC C o o r o lando J. Paulino III said the company has completed “all the nec essary readiness tests, trial runs, station maintenance works, and operational exer cises” for r o osevelt Station, which was closed last Sep tember 5 to accommodate the government’s construc tion of the Common Station.

“We are happy to an nounce that our team has completed all the necessary works to ensure that lr T-1 is safe to be operated with the reintegration of r o os evelt Station. We at lr MC consider this a great mile stone because we know how important this station is for many commuters especially those residing in the north. The whole exercise of reinte

grating r o osevelt was like wise a great display of team work and cooperation among our lr T-1 employees and ex ternal partners,” he said.

To recall, lr MC t empo rarily suspended the opera tions of r o osevelt Station, as the turnback facility for the Common Station had to be relocated at r o osevelt Station.

Paulino explained that due to the pandemic restric tion and adjustments in the timelines for the construc tion of the Common Station, the reopening of lr T 1’s r o osevelt Station had to be “put on hold” temporarily.

With the reopening of the station, lr MC w ill imple ment a new train service schedule for lr T 1 t oday, Monday.

The last trip leaving b a claran Station is at 10:00 p.m., while the last train leaves r o osevelt Station at 10:15 p.m. during weekdays.

o n w eekends and holidays, the last train is scheduled to depart from b a claran and r o osevelt stations at 9:30 p.m. and 9:45 p.m., respec tively.

Russia rejects $60-a-barrel price cap, warns of cutoffs

By Jamey Keaten The Associated Press

KYIV, Ukraine — Russian authorities rejected a price cap on the coun try’s oil set by Ukraine’s West ern supporters and threatened Saturday to stop supplying the nations that endorsed it.

Australia, Britain, Canada, Japan, the United States and the 27-nation European Union agreed Friday to cap what they would pay for Russian oil at $60-per-barrel. The limit is set to take effect Monday, along with an EU embargo on Rus sian oil shipped by sea.

Kremlin spokesman Dmi try Peskov said Russia needed to analyze the situation be fore deciding on a specific re sponse but that it would not accept the price ceiling. Rus sia’s permanent representative to international organizations in Vienna, Mikhail Ulyanov, warned that the cap’s European backers would come to rue their decision.

“From this year, Europe will live without Russian oil,” Uly anov tweeted. “Moscow has al ready made it clear that it will not supply oil to those countries that support anti-market price caps. Wait, very soon the EU will accuse Russia of using oil as a weapon.”

The office of Ukrainian President Volodymyr Zelen skyy, meanwhile, called Satur day for a lower price cap, say ing the one adopted by the EU and the Group of Seven leading economies didn’t go far enough.

“It would be necessary to lower it to $30 in order to de stroy the enemy’s economy faster,” Andriy Yermak, the head of Zelenskyy’s office, wrote on Telegram, staking out a position also favored by Po land — a leading critic of Rus sian President Vladimir Putin’s war in Ukraine.

Under Friday’s agreements, insurance companies and other firms needed to ship oil would only be able to deal with Rus sian crude if the oil is priced at or below the cap. Most insurers are located in the EU and the United Kingdom and could be required to observe the ceiling.

Russia’s crude has already been selling for around $60 a barrel, a deep discount from in ternational benchmark Brent, which closed Friday at $85.42 per barrel.

The Russian Embassy in Washington insisted that Rus sian oil “will continue to be in demand” and criticized the price limit as “reshaping the basic principles of the function ing of free markets.” A post on the embassy’s Telegram chan nel predicted the per-barrel cap would lead to “a widespread increase in uncertainty and higher costs for consumers of raw materials.”

“What happens in China will help shape whether the price cap has any teeth,” said Jim Burkhard, an oil markets analyst with IHS Markit. He said dampened demand from China means most Russian crude exports are already sell ing below $60.

The price cap aims to put an economic squeeze on Rus sia and further crimp its abil ity to finance a war that has killed an untold number of civilians and fighters, driven millions of Ukrainians from their homes and weighed on the world economy for more than nine months.

The General Staff of the Ukrainian Armed Forces re ported that since Friday Rus sia’s forces had fired five mis siles, carried out 27 airstrikes and launched 44 shelling at

tacks against Ukraine’s mili tary positions and civilian in frastructure.

Kyrylo Tymoshenko, the deputy head of the president’s office, said the attacks killed one civilian and wounded four others in eastern Ukraine’s Donetsk region. According to the UK Defense Ministry, Russian forces “continue to invest a large element of their overall military effort and firepower” around the small Donestsk city of Bakhmut, which they have spent weeks trying to capture.

In southern Ukraine’s Kher son province, whose capital city of the same name was liber ated by Ukrainian forces three weeks ago following a Russian retreat, Gov. Yaroslav Yanush kevich said evacuations of civil ians stuck in Russian-held ter ritory across the Dnieper River would resume temporarily.

Russian forces pulled back to the river’s eastern bank last month. Yanushkevich said a ban on crossing the waterway would be lifted during daylight hours for three days for Ukrai nian citizens who “did not have time to leave the temporarily occupied territory.” His an nouncement cited a “possible intensification of hostilities in this area.”

Kherson is one of four re gions that Putin illegally an nexed in September and vowed to defend as Russian territory. From their new positions, Russian troops have regularly shelled Kherson city and nearby infrastructure in recent days, leaving many residents with out power. Running water re mained unavailable in much of the city—and one resident was seen scooping up water from a dirty puddle.

The city continued to suffer heavy shelling Saturday that left many residents disorient ed, toppled power lines and dumped torn-off tree branches on the roads.

“When we start to repair (electricity networks), the shelling starts immediately,” said Oleksandr Kravchenko, who is in charge of high-volt age networks in Kherson. “We just repair electric lines and on the next day we have to repair lines again.”

Ukrainian authorities also reported intense fighting in Luhansk and Russian shell ing of northeastern Ukraine’s Kharkiv region, which Russia’s soldiers mostly withdrew from in September.

The mayor of the city of Kharkiv, which remained under Ukrainian control during Rus sia’s occupation of other parts of the region, said some 500 apartment buildings were dam aged beyond repair, and nearly 220 schools and kindergartens were damaged or destroyed. He estimated the cost of the dam age at $9 billion.

Russian Defense Minister Sergei Shoigu met Saturday in Minsk with the president and defense minister of Belarus, which hosts Russian troops and artillery. Belarus has said its own forces are not taking part in the war, but Ukrainian offi cials have frequently expressed concern that they could be in duced to cross the border into northern Ukraine.

Belarusian President Alex ander Lukashenko said at the meeting that his troops and Russian forces train in coordi nation. “We ready ourselves as one grouping, one army. Every one knows it. We were not hid ing it,” he was quoted as saying by the news agency Interfax.

Inna Varenytsia in Kherson, Ukraine, and Frank Bajak in Boston contributed to this report.

G-7, Australia join EU in adopting $60-per-barrel cap on Russian oil

By Raf Casert, Fatima Hussein & David Mchugh The Associated Press

WASHING TON—The Group of Seven nations and Australia joined the European Union on Friday in adopting a $60-per-barrel price cap on Russian oil, a key step as Western sanctions aim to reor der the global oil mar ket to prevent price spikes and starve President Vladimir Putin of funding for his war in Ukraine.

Europe needed to set the discounted price that other nations will pay by Mon day, when an EU embargo on Russian oil shipped by sea and a ban on insurance for those supplies take effect. The price cap, which was led by the G-7 wealthy democ racies, aims to prevent a sudden loss of Russian oil to the world that could lead to a new surge in energy prices and further fuel inflation.

US Treasury Secretary Janet Yellen said in a statement that the agreement will help restrict Putin’s “primary source of revenue for his illegal war in Ukraine while simultaneously preserving the sta bility of global energy supplies.”

The agreement comes after a lastminute flurry of negotiations. Poland long held up an EU agreement, seeking to set the cap as low as possible. Follow ing more than 24 hours of deliberations, when other EU nations had signaled they would back the deal, Warsaw finally re lented late Friday.

A joint G-7 coalition statement re leased Friday states that the group is “pre pared to review and adjust the maximum price as appropriate,” taking into account market developments and potential im pacts on coalition members and low and middle-income countries.

“Crippling Russia’s energy revenues is at the core of stopping Russia’s war machine,” Estonian Prime Minister Kaja Kallas said, adding that she was happy the cap was pushed down a few extra dollars from earlier proposals. She said every dol lar the cap was reduced amounted to $2 billion less for Russia’s war chest.

“It is no secret that we wanted the price to be lower,” Kallas added, highlighting the differences within the EU. “A price between 30-40 dollars is what would sub stantially hurt Russia. However, this is the best compromise we could get.”

The $60 figure sets the cap near the current price of Russia’s crude, which re cently fell below $60 a barrel. Some criti cize that as not low enough to cut into one of Russia’s main sources of income. It is still a big discount to international benchmark Brent, which slid to $85.48 a barrel Friday, but could be high enough for Moscow to keep selling even while rejecting the idea of a cap.

There is a big risk to the global oil mar ket of losing large amounts of crude from the world’s No. 2 producer. It could drive up gasoline prices for drivers worldwide, which has stirred political turmoil for US President Joe Biden and leaders in other nations. Europe is already mired in an energy crisis, with governments facing protests over the soaring cost of living, while developing nations are even more vulnerable to shifts in energy costs.

But the West has faced increasing pressure to target one of Russia’s main moneymakers—oil—to slash the funds flowing into Putin’s war chest and hurt

Russia’s economy as the war in Ukraine drags into a ninth month. The costs of oil and natural gas spiked after de mand rebounded from the pandemic and then the invasion of Ukraine un settled energy markets, feeding Rus sia’s coffers.

US National Security Council spokesman John Kirby told report ers Friday that “the cap itself will have the desired effect on limiting Mr. Putin’s ability to profit off of oil sales and limit his ability to con tinue to use that money to fund his war machine.”

More uncertainty is ahead, how ever. Covid-19 restrictions in China and a slowing global economy could mean less thirst for oil. That is what Opec and allied oil-producing coun tries, including Russia, pointed to in cutting back supplies to the world in

October. The Opec+ alliance is sched uled to meet again Sunday.

That competes with the EU em bargo that could take more oil sup plies off the market, raising fears of a supply squeeze and higher prices. Russia exports roughly 5 million bar rels of oil a day.

Putin has said he would not sell oil under a price cap and would retaliate against nations that implement the measure. However, Russia has already rerouted much of its supply to India, China and other Asian countries at discounted prices because Western customers have avoided it even before the EU embargo.

Most insurers are located in the EU or the United Kingdom and could be required to participate in the price cap.

Russia also could sell oil off the books by using “dark fleet” tankers

with obscure ownership. Oil could be transferred from one ship to another and mixed with oil of similar quality to disguise its origin.

Even under those circumstances, the cap would make it “more costly, time-consuming and cumbersome” for Russia to sell oil around the restric tions, said Maria Shagina, a sanctions expert at the International Institute for Strategic Studies in Berlin. Robin Brooks, chief economist at the Institute of International Fi nance in Washington, said the price cap should have been implemented when oil was hovering around $120 per barrel this summer.

“Since then, obviously oil prices have fallen and global recession is a real thing,” he said. “The reality is that it is unlikely to be binding given where oil prices are now.”

An oil tanker is moored at the Sheskharis complex, part of Chernomortransneft JSC, a subsidiary of Transneft PJSC, in novo rossiysk, Russia on Oct. 11, 2022, one of the largest facilities for oil and petroleum products in southern Russia. The European Union reached a deal Friday for a $60-per-barrel price cap on Russian oil, a key step as Western sanctions aim to reorder the global oil market to prevent price spikes and starve President Vladimir Putin of funding for his war in Ukraine. AP Photo

Austin warns China on Asia-Pacific: America will keep war-fighting edge

By Tony Capaccio

Secretary of Defense Lloyd austin said the US is building a more lethal force posture in the Indo-Pacific as part of efforts to make sure china doesn’t dominate the region the way it intends to.

China is “the only country with both the will and, increas ingly, the power to reshape its region and the international or der to suit its authoritarian pref erences,” Austin told the Reagan National Defense Forum on Sat urday. “So let me be clear—we’re not going to let that happen.”

Austin said the US would “sus tain and sharpen our war-fight ing advantages” and bolster its force presence “to build a more lethal, mobile and distributed force posture.”

He cited the B21 stealth bomb er, unveiled on Friday, as a key el

ement of its deterrence strategy, and said the US is charting the best way forward for Australia to get a nuclear-powered subma rine as soon as possible—a deal announced early in the Biden administration.

The speech amounts to a new warning shot to President Xi Jinping even as the US looks to establish what it calls guardrails and keep tension with China from spiraling out of control.

In its latest report on China’s military strength, released late last month, the US government said China is still intent on gain

ing the capability to invade by 2027 and become the world’s most powerful military by 2049.

As it looks to counter that push, Austin outlined other mea sures, saying the Pentagon had sharpened its focus on the IndoPacific as the primary theater of operations, including by pushing to be able to mobilize troops more quickly and investing in military construction and logistics.

A senior Pentagon official last month said the US expects China to keep up the more aggressive behavior toward Taiwan it began during a visit by House Speaker Nancy Pelosi.

China has conducted more na val operations and invasive air

cretary

Us is

Austin

in Washington

during a

nov. 16,

US debuts new stealth bomber, the B-21 Raider

activity around the self-governed island in an apparent effort to in timidate and wear down Taiwan’s leaders, according to the official, who spoke to reporters on cus tomary condition of anonymity. That activity includes crossing what’s known unofficially as the centerline of the Taiwan Strait between the island and China’s mainland.

The US sees no sign of an im minent attack but still believes that China wants to have the capability, at least, to launch an invasion of the island by 2027, part of a broader push to make it the world’s most powerful mili tary by 2049, the official said. Bloomberg News

By TARA COPP The Associated Press

PALMDALE , California—

America’s newest nuclear stealth bomber made its de but Friday after years of secret de velopment and as part of the Pen tagon’s answer to rising concerns over a future conflict with China.

The B-21 Raider is the first new American bomber aircraft in more than 30 years. Almost every aspect of the program is classified.

and use of new propulsion tech nologies, several defense ana lysts said.

“It is incredibly low observabil ity,” Warden said. “You’ll hear it, but you really won’t see it.”

Six Raiders are in production.

By Zen Soo

HONG KONG—China on Sunday reported two ad ditional deaths from Co vid-19 as some cities move cau tiously to ease anti-pandemic restrictions amid increasingly vocal public frustration over the measures.

The National Health Commis sion said one death was reported each in the provinces of Shandong and Sichuan. No information was given about the ages of the victims or whether they had been fully vaccinated.

China, where the virus first was detected in late 2019 in the central city of Wuhan, is the last major country trying to stop transmission completely through quarantines, lockdowns and mass testing. Concerns over vaccina tion rates are believed to figure prominently in the ruling Com munist Party’s determination to stick to its hardline strategy.

While nine in 10 Chinese have been vaccinated, only 66% of people over 80 have gotten one shot, while 40% have received a booster, according to the commis sion. It said 86% of people over 60 are vaccinated.

Given those figures and the fact that relatively few Chinese have been built up antibodies by being exposed to the virus, some fear millions could die if restric tions were lifted entirely.

Yet, an outpouring of public anger appears to have prompted authorities to lift some of the more onerous restrictions, even

as they say the “zero-Covid” strat egy—which aims to isolate every infected person—is still in place.

Beijing and some other Chinese cities have announced that rid ers can board buses and subways without a virus test for the first time in months.

The slight relaxation of test ing requirements comes even as daily virus infections reach nearrecord highs, and follows weekend protests across the country by residents frustrated by the rigid enforcement of anti-virus restric tions that are now entering their fourth year, even as the rest of the world has opened up.

The southern technological manufacturing center of Shen zhen said Saturday that com muters no longer need to show a negative Covid-19 test result to use public transport or when entering pharmacies, parks and tourist attractions.

Meanwhile, the capital Beijing said Friday that negative test re sults are also no longer required for public transport from Mon day. However, a negative result obtained within the past 48 hours is still required to enter venues like shopping malls, which have gradually reopened with many restaurants and eateries provid ing takeout services.

The requirement has led to complaints from some Beijing res idents that even though the city has shut many testing stations, most public venues still require Covid-19 tests.

On Sunday, China announced another 35,775 cases from the

past 24 hours, 31,607 of which were asymptomatic, bringing its total to 336,165 with 5,235 deaths.

While many have questioned the accuracy of the Chinese fig ures, they remain relatively low compared to the US and other nations that are now relaxing controls and trying to live with the virus that has killed at least 6.6 million people worldwide and sickened almost 650 million.

On Saturday, Beijing authori ties said that because the current round of Covid-19 was spreading fast, it is necessary to “unswerv ingly continue to implement nor malized social prevention and control measures.”

As the rest of the world has learned to live with the virus, China remains the only major nation still sticking to a “zeroCovid” strategy. The policy, which has been in place since the pan demic started, led to snap lock downs and mass testing across the country.

China still imposes mandatory quarantine for incoming travelers even as its infection numbers are low compared to its 1.4 billion population.

The recent demonstrations, the largest and most widely spread in decades, erupted Nov. 25 after a fire in an apartment building in the northwestern city of Urumqi killed at least 10 people.

That set off angry questions online about whether firefighters or victims trying to escape were blocked by locked doors or other anti-virus controls. Authorities

denied that, but the deaths be came a focus of public frustration.

The country saw several days of protests across cities including Shanghai and Beijing, with pro testers demanding an easing of Covid-19 curbs. Some demanded Chinese President Xi Jinping step down, an extraordinary show of public dissent in a society over which the ruling Communist Party exercises near total control.

Xi’s government has promised to reduce the cost and disruption of controls but says it will stick with “zero Covid.” Health experts and economists expect it to stay in place at least until mid-2023 and possibly into 2024 while millions of older people are vac cinated in preparation for lifting controls that keep most visitors out of China.

While the government has conceded some mistakes, blamed mainly on overzealous officials, public figures, business people, ordinary citizens and even ath letes have been punished for criticizing government policies. Former NBA star Jeremy Lin, who plays for a Chinese team, was re cently fined 10,000 yuan ($1,400) for criticizing conditions in team quarantine facilities, according to local media reports.

On Friday, World Health Or ganization emergencies director Dr. Michael Ryan said that the UN agency was “pleased” to see China loosening some of its coronavirus restrictions, saying “it’s really im portant that governments listen to their people when the people are in pain.” AP

China reports 2 Covid deaths as some cities ease restrictions World Bank: Air pollution costs Bangladesh up to 4.4% of GDP

By Arun Devnath

BANGLADESH S e conomic losses from ambient air pollution are estimated to be as much as 4.4% of the coun try’s gross domestic product, the World Bank said.

Air pollution was estimated to have caused between 78,145 and 88,229 deaths, and between 1 bil lion and 1.1 billion days lived with illness in Bangladesh in 2019, ac cording to the report published Sunday. It assessed the short-term impact on physical and mental

health due to exposure to outdoor air pollution using data from 12,250 individuals in Dhaka and Sylhet.

Bangladesh was ranked as the most polluted country in the world, and Dhaka as the second most polluted city each year be tween 2018 and 2021. Air pollu tion was deemed the second larg est risk factor leading to deaths and disability in Bangladesh in 2019, with four out of the top five causes of total deaths being direct ly associated with its exposure.

“Ambient air pollution puts ev eryone at risk, from a child to an

elderly,” said Dandan Chen, acting World Bank country director for Bangladesh. “Addressing air pol lution is critical for the country’s sustainable and green growth and development.”

The report finds that the sites with major construction and per sistent traffic in Dhaka city have the highest level of air pollution. At these sites, the fine particulate matter, or PM2.5, considered most hazardous to health, is on average 150% above the World Health Or ganization air quality guidelines, which is equivalent to smoking

about 1.7 cigarettes per day.

The second highest concen tration of PM2.5 levels is found near brick kilns in Greater Dhaka, which is 136% above the WHO guidelines—equivalent to smok ing 1.6 cigarettes per day.

The report also showed the prevalence of depression across the study sites. Depression is most reported in locations with persistent traffic and major con struction areas at 13.7%, while rates reported among those living near brick kilns were at 11.2%.

As evening fell over the Air Force’s Plant 42 in Palmdale, the public got its first glimpse of the Raider in a tightly controlled cer emony. It started with a flyover of the three bombers still in service: the B-52 Stratofortress, the B-1 Lancer and the B-2 Spirit. Then the hangar doors slowly opened and the B-21 was towed partially out of the building.

“This isn’t just another air plane,” Defense Secretary Lloyd Austin said. “It’s the embodiment of America’s determination to de fend the republic that we all love.”

The B-21 is part of the Penta gon’s efforts to modernize all three legs of its nuclear triad, which includes silo-launched nuclear ballistic missiles and submarinelaunched warheads, as it shifts from the counterterrorism cam paigns of recent decades to meet China’s rapid military modern ization.

China is on track to have 1,500 nuclear weapons by 2035, and its gains in hypersonics, cyber war fare and space capabilities pres ent “the most consequential and systemic challenge to US national security and the free and open in ternational system,” the Pentagon said this week in its annual China report.

“We needed a new bomber for the 21st Century that would allow us to take on much more compli cated threats, like the threats that we fear we would one day face from China, Russia,” said Deborah Lee James, the Air Force secretary when the Raider contract was an nounced in 2015.

While the Raider may resemble the B-2, once you get inside, the similarities stop, said Kathy War den, chief executive of Northrop Grumman Corp., which is build ing the bomber.

“The way it operates internally is extremely advanced compared to the B-2, because the technology has evolved so much in terms of the computing capability that we can now embed in the software of the B-21,” Warden said.

Other changes include ad vanced materials used in coat ings to make the bomber harder to detect, Austin said.

“Fifty years of advances in lowobservable technology have gone into this aircraft,” Austin said. “Even the most sophisticated air defense systems will struggle to detect a B-21 in the sky.”

Other advances likely include new ways to control electronic emissions, so the bomber could spoof adversary radars and dis guise itself as another object,

The Air Force plans to build 100 that can deploy either nuclear weapons or conventional bombs and can be used with or without a human crew. Both the Air Force and Northrop also point to the Raider’s relatively quick devel opment: The bomber went from contract award to debut in seven years. Other new fighter and ship programs have taken decades.

The cost of the bombers is unknown. The Air Force previ ously put the price at an average cost of $550 million each in 2010 dollars—roughly $753 million to day—but it’s unclear how much is actually being spent. The total will depend on how many bomb ers the Pentagon buys.

“We will soon fly this aircraft, test it, and then move it into pro duction. And we will build the bomber force in numbers suited to the strategic environment ahead,” Austin said.

The undisclosed cost troubles government watchdogs.

“It might be a big challenge for us to do our normal analysis of a major program like this,” said Dan Grazier, a senior defense policy fellow at the Project on Govern ment Oversight. “It’s easy to say that the B-21 is still on schedule before it actually flies. Because it’s only when one of these pro grams goes into the actual test ing phase when real problems are discovered.” That, he said, is when schedules start to slip and costs rise.

The B-2 was also envisioned to be a fleet of more than 100 aircraft, but the Air Force built only 21, due to cost overruns and a changed security environment after the Soviet Union fell. Fewer than that are ready to fly on any given day due to the significant maintenance needs of the aging bomber.

The B-21 Raider, which takes its name from the 1942 Doolittle Raid over Tokyo, will be slightly smaller than the B-2 to increase its range, Warden said. It won’t make its first flight until 2023.

However, Warden said Northrop Grumman has used advanced computing to test the bomber’s performance using a digital twin, a virtual replica of the one un veiled Friday.

Ellsworth Air Force Base in South Dakota will house the bomber’s first training pro gram and squadron, though the bombers are also expected to be stationed at bases in Texas and Missouri.

US Sen. Mike Rounds, a Re publican of South Dakota, led the state’s bid to host the bomber pro gram. In a statement, he called it “the most advanced weapon sys tem ever developed by our country to defend ourselves and our allies.”

Northrop Grumman has also incorporated maintenance lessons learned from the B-2, Warden said.

Defense s e

Lloyd

speaks

briefing at the Pentagon

on

2022. The

at a pivotal point with China and will need military strength to ensure that American values, not Beijing’s, set global norms in the 21st century, Defense s e cretary Lloyd Austin said s aturday, Dec. 3, 2022. Austin’s speech at the Reagan national Defense forum capped a week where the Pentagon was squarely focused on China’s rise and what that might mean for America’s position in the world.

AP Photo/SuSA n WA l Sh

The B-21 Raider stealth bomber is unveiled at northrop Grumman friday, Dec. 2, 2022, in Palmdale, Calif. America’s newest nuclear stealth bomber made its debut friday after years of secret development and as part of the Pentagon’s answer to rising concerns over a future conflict with China. The B-21 Raider is the first new American bomber aircraft in more than 30 years. Almost every aspect of the program is classi fied. AP Photo/M A r cio Jo Se S An chez

Agriculture/Commodities

Typhoons cut PHL’s 10-mo abaca production

By Jasper Emmanuel Y. Arcalas @jearcalas

The country’s abaca output in January to October declined by an annualized rate of 5.3 percent, as typhoons hampered farmers’ efforts to harvest the crop.

Local abaca production dur ing the period reached 54,049.37 metric tons (MT), 3,008.43 MT lower than the 57,057.8 MT re corded a year ago, the latest Phil ippine Fiber Industry Develop ment Authority (PhilFida) data showed.

“The year 2022 bombarded the country with 19 typhoons so far, but not all of them made landfall. Still, (the storms) affected produc

tion in fiber-producing provinces, most especially abaca,” PhilFida Executive Director Kennedy T. Costales said.

Abaca production in the Bicol region, the country’s top producer of the natural fiber, declined by nearly 10 percent to 15,689.66 MT from last year’s 17,401.68 MT.

Catanduanes’ abaca output, the biggest producer of the fiber, fell by 13 percent to 12,636.28

MT from 14,518.87 MT, based on PhilFida data.

Costales have earlier warned that malpractices would spell the

demise of the abaca industry in the Bicol region.

In January, Costales said the downward trend in the Bicol re

gion’s abaca production is “very alarming.” He even said abaca production in the region could disappear in six to seven years if this continues.

Costales said farmers in the Bicol region practice “bacbac” or “umbak” and “pojada” harvesting, which have led to the spread of diseases and the decline in their abaca output.

PhilFida data showed that aside from the Bicol region, seven other abaca-producing regions posted declines in their output during the 10-month period. Only four regions posted increments in their production on a year-onyear basis.

Davao region’s abaca produc tion, the second biggest produc er of the fiber, declined by 4.3 percent to 11,269.44 MT from 11,781.21 MT last year.

Abaca output in Northern

Lawmaker pushes bill expanding scope of govt store project

By Jovee Marie N. dela Cruz @joveemarie

ALA w MAKER i s pushing for the immediate passage of a bill institutionalizing the Kadiwa as the government arm that will buy directly from agricultural workers.

In filing House Bill 5601, Bataan Rep. Geraldine Roman said expanding the scope of the Kadiwa store project will be good for farmers and consumers.

“In order for them to earn com petitively, there should be less in termediation. Institutionalizing the Kadiwa will ensure a rate of return that would allow farm ers to live comfortably and still have wherewithal to engage in a revitalized agriculture chain,” Roman said.

The lawmaker said the Kadiwa system enables the public to buy

goods at cheaper rates and the farmers would make it possible to earn from their harvests without passing the burden of high costs to buyers.

w h at we experienced during the pandemic should be a lesson learned in terms of logistics and supply chain planning,” Roman said as she pushes for the swift passage of House Bill 5601 or the Magna Carta for Agricultural wo rkers and Revitalized Agricul ture Value Chain of 2022.

“The value chain addresses supply chain gaps within the agri culture industry and develops an alternative market for domesti cally produced agricultural goods completely dedicated to maxi mizing the economic benefit of both producers and consumers.”

The legislator from Bataan said the proposed bill sets up an infrastructure map by provid

ing resilience in case the supply chain is compromised by natural or man-made calamities.

“ we n eed to transform agricul ture into a sustainable and diver sified sector to ensure economic recovery, reduction of poverty, and food security,” Roman said, adding that “without agriculture, there is no food. Agriculture is both production and price.”

In the bill’s explanatory note, Roman said the country’s work force can be classified into three major groupings: Services, Indus try and Agriculture.

“But agriculture provides our country’s needs and our secu rity. Agriculture constitutes 25 percent of the total labor force which is mostly at the threshold of poverty. Industry stands at 1 percent and Services contribute 57 percent to the labor force of the country,” the lawmaker said.

“The Philippines was an ag ricultural country which had its growth years in the late 60s to early 70s. The last time we were able to attain an agricultural surplus was in 1993. By then, the Philippines joined the wo rld Trade Organization ( w T O). The promises were agriculture will flourish and about 500,000 new jobs per year will be generated.”

Roman said the country’s w T O membership had led to economic decline and caused the country to incur trade defi cits and to become dependent on imports.

In addition, the solon said lo cally, the share of agriculture to GDP shrank plus the failure to adapt to diversity in agriculture, forestry, and fishery production limited the country’s chances to compete.

Agriculture contributed 10

percent to the country’s GDP in the first quarter, behind Indus try’s 28 percent and Services’ 61 percent.

“Agriculture is very important to the domestic economy. Hence, agricultural workers should be given all the rights beneficial to them and their families from the production and selling of their produce. Agriculture workers should be treated equally as all other workers as a minimum con dition to work and employment,” Roman said.

Under the revitalized agricul ture value chain, the production of agricultural products will be the responsibility of the Depart ment of Agriculture (DA) while processing, packaging, market ing, and trading will be done by the Department of Trade and Industry, specifically through Kadiwa markets and outlets.

Mindanao fell by 22.9 percent to 5,302.72 MT from 6,877.08 MT, based on PhilFida data.

The four regions that posted increments in output were Caraga, Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), Central Luzon and Southern Ta galog, according to PhilFida.

Caraga region’s abaca output rose by 21.7 percent year-on-year to 9,854.4 MT while BARMM’s production went up by 1.2 percent on to 3,005.48 MT.

PhilFida had projected that the country’s total abaca out put this year would return to the 70,000-MT level. The target this year is 3.72 percent higher than the 67,488.11 MT recorded last year.

The Philippines produces 85 percent of the world’s abaca fiber supply, and 1.5 million Filipinos depend on it for their livelihood.

mining firms planting bamboo must get tax incentives’

THE pr ivate sector has urged the government to grant tax incentives to miners who will invest in large-scale bamboo plantations as these projects will help boost watershed conserva tion, reduce the risk of natural disasters and generate as much as $3 billion in long-term revenue.

Bamboo propagation and min ing sector advocates from the Junction Ridge Resources Devel opment Corp.(JRRDC) and the Kilusang 5K (Kawayan:Kalikasan, Kabuhayan, Kaunlaran, Kinabu kasan) said bamboo planting will be “the best antidote” to criticisms against mining activities.

Banker and mining leader Isidro C. Alcantara Jr. of JRRDC said bamboo plantations in min ing areas can generate huge rev enues that can approximate earn ings from gold, copper, and nickel.

THE wo rld’s ability to nour ish its burgeoning popula tion is under threat and without broader socioeconomic and environmental change, sus tainable agrifood systems will be impossible to achieve, according to a new report by the Food and Agriculture Organization of the United Nations (FAO).

The report, which was released last Friday, urged decision mak ers to think beyond short-term needs, warning that a lack of vi sion, piecemeal approaches and “quick fixes” will come at a high cost for everyone.

FAO noted that by 2050, there will be 10 billion people in the world to feed and this will be an unprecedented challenge if sig nificant attempts are not made to reverse current trends.

“A new mindset that prioritizes long-term objectives, sustain ability and resilience is urgently needed,” the report read.

It identified key “triggers” for agrifood systems transforma tion that can help achieve food security, nutrition, natural re source preservation, ecosystems restoration and climate change mitigation.

Trends, such as increasing pop ulation and urbanization, macro economic instability, poverty and inequalities, geopolitical tensions and conflicts, fiercer competition over natural resources, and cli mate change are reaping havoc in socio-economic systems and dam

aging environmental systems, the report says.

“Many of the SDGs [Sustain able Development Goals] are not on track and will only be achieved if agrifood systems are trans formed properly to withstand on going global adversity that under mines food security and nutrition due to growing structural inequal ities and also regional inequali ties,” FAO Director-General Qu Dongyu said at the launch event.

Agrifood systems

T HE r eport identifies 18 inter connected socio-economic and environmental forces, called drivers, and analyses how they interact and shape the various activities occurring within ag rifood systems, including farm ing, food processing, and food consumption.

Poverty and inequalities, geo political instability, scarcity and the degradation of resources, and climate change are some of the key drivers and how they are managed will determine what the future of food looks like.

If agrifood systems remain on their current paths, the evidence points to a future characterized by persistent food insecurity, de grading resources and unsustain able economic growth, the report cautions.

The report also illustrated four future scenarios for agrifood sys tems that bring diverse outcomes in terms of food security, nutri

tion and overall sustainability: “More of the same,” that envisages continuing muddling through by reacting to events and crises; “Ad justed future,” where some moves towards sustainable agrifood sys tems occur at a slow, uncertain pace; “Race to the bottom,” that portrays a world in disarray in the worst version of itself; and “Trading off for sustainability,” where short-term GDP growth is traded off for inclusiveness, resilience and sustainability of agrifood, socioeconomic and en vironmental systems.

“Strategic foresight helps us all, and governments in particu lar, by analyzing short-term and long-term trends and seeing pos sible alternative future scenarios. By considering worst-case sce narios, we can anticipate possible negative paths and take measures to avoid them,” Qu said.

Triggers for transformation T O increase the chances of creat ing a more sustainable and resil ient future for agrifood systems, the report underscores the urgent need to change course. To achieve this, it proposes four key “triggers of transformation”—improved governance, critical and informed consumers, better income and wealth distribution and innova tive technologies and approaches.

“Very few low- and middleincome countries, perhaps none, will have the possibility of achieving hegemonic power and

the status of empires that many high-income countries made use of to benefit their well-being and welfare. Future global de velopment patterns depend on the resolution of key questions: institutions providing solutions for sharing the ‘global commons’; the distribution of political power and wealth; and the resolution of the extensive inequalities pres ent in today’s economies,” the report read.

In a scenario where the world opts for a more sustainable future, the report said global challenges will be tackled by “a more effective participatory and novel, multi level governance”, where govern ments, consumers, businesses and academia interact with different functions but overall converging objectives.

“To ensure access to sufficient and nutritious food, decent jobs, income opportunities, and envi ronmental services, among oth ers, requires us to be smarter in identifying the triggers needed to accelerate transformative pro cesses,” Qu said.

Role of consumers

C ON SUMERS w ill need to be more responsible actors since they “hold the power to trigger transforma tive processes by shifting demand towards more environmentally and socially responsible, and nu tritious products.”

For better income and wealth distribution, the report urged

greater investment in social outcomes and increase social capital, to get people out of pov erty—not just out of hunger. It also recommends that wealthier countries be willing to shoulder more of the costs of this trans formation.

Transformation will also be aided by the further development of innovative technologies and approaches for which the authors of the report propose prioritizing scientific research and develop ment and that these advances must be accessible to the most vulnerable groups.

This kind of comprehensive transformation, however, will come at a cost and there will be trade-offs that governments, policy makers and consumers will have to address and balance, while tackling resistance to the paradigm shift.

Countries and social groups that can shoulder the costs in volved in the necessary trans formations have to provide relief to those already affected by the negative effects of unsustainable development.

“Choices will have to be made to trade off contrasting objectives, s uch as increasing immediate con sumption and well-being versus investing to ensure a better future for current and next generations, or deciding how to charge the costs of unsustainable development to wealthier societies to the advan tage of poorer ones,” Qu said.

The Philippine Statistics Au thority (PSA) reported in Novem ber 2020 that the mining and quar rying sector generated revenues of P189.9 billion ($3.45 billion).

“To understand why we should concentrate on bamboo, it can generate $3 billion or 10 percent of China’s (bamboo revenue). It can equal the mining industry’s output of gold, copper, and nickel,” said Isidro during the 5K Founda tion Inc.’s forum dubbed “Usapang Kawayan.”

Isidro was chairman of Mar cventures Holdings Inc. (Mar cventures Mining parent firm) prior to his retirement. Its mining operation in Surigao del Sur has so far grown 30,875 bamboo plants in the area, pioneering the effort in the industry.

“This is doable. we h ave so much land where we can set up large-scale bamboo plantations,” said Isidro.

Kilusang 5K Foundation Chair man Deogracias Victor B. Savel lano also said during the forum that bamboo is one of the best crops for land restoration.

Bamboo plants are the best tools for fighting climate change as it releases 35 percent more oxy gen than other trees. It sequesters 12 metric tons of carbon per hect are annually, he said.

“Bamboo is one of the best crops for land restoration especially in mined-out areas,” said Savellano.

“Bamboo planting in mining areas has been required by DENR since 2020 to plant bamboo to 20 percent of their declared mining area.”

This BusinessMirror file photo shows the process of grading abaca fiber.

‘Local

‘Global food crises likely to increase sans wider systemic change’

editorial

‘Maharlika Investment Fund’: Good idea or not?

AsovereIGn wealth fund (sWF) is an investment fund, a state-owned pool of money, with funding coming from surplus reserves from state-owned enterprises, reserves from budgeting excesses, foreign currency operations, and money from privatizations that is invested in various financial assets.

The US state of Texas was the first in 1854 to establish a program like this to fund its public schools. The Permanent School Fund was given state owned public lands for its seed capital. The first national sovereign wealth fund was the Kuwait Investment Authority in 1953 to invest its excess oil revenues.

The basic concept is that a government takes excess capital from whatever sources, including state-owned business, and uses those as fuel for investments that will generate a higher return than idle cash or underutilized assets.

House Bill 6398 will establish the “Maharlika Investment Fund” (MIF), the purpose of which is to “generate consistent and stable investment returns with appropriate risk limits to preserve and enhance long term value of the Fund, obtain the best absolute return and achievable financial gains on its investments, and to satisfy the requirements of liquidity, safety/security, and yield in order to ensure profitability.”

The initial P250 billion funding will come from the Government Service Insurance System, Social Security System, Land Bank of the Philippines, and the Development Bank of the Philippines. The bill provides for funding from “other sources, which include special assessments on natural resources, and public borrowing, among others.”

The fund can invest its money in just about any domestic or global financial asset as well as “joint ventures or co-investments and commercial real estate and infrastructure projects.” In addition, “other investments as may be approved by the Board.”

We have some concerns about funding coming from “public borrowing, among others” and “other investments.”

In the greater scheme of things, a SWF with initial capital of approximately $5 billion is relatively insignificant. The largest SWF is the Norway Government Pension Fund Global with about $1.5 trillion “Assets Under Management.” The MIF will rank globally next to Angola and Botswana, but ahead of Mongolia.

In principle, the MIF is a valid concept. So was the Nauru Phosphate Royalties Trust. In 1970, the newly independent Nauru government bought its phosphate mines from colonial ruler Australia for A$21 million. The mines kicked off about A$80 million net profit a year. The Trust invested globally including owning the tallest in the Philippines, the Pacific Star in Makati. The phosphate deposits were virtually exhausted by 2000. The Trust was A$240 million debt and the government was totally bankrupt.

For all the benefits, a SWF is not a guaranteed cash cow.

South Korea’s sovereign fund, the Korea Investment Corporation with $117 billion worth of global assets, posted $28.4 billion loss in the first eight months of 2022. The fund’s return on investment went negative to minus 13.9 percent as global stock and bond markets suffered turmoil.

Norway’s sovereign wealth fund had a loss of $174 billion in the first half of 2022, also as stock markets went down. The fund returned a negative 14.4 percent for the period including a 4.4 loss in the 2022 third quarter. “Equity investments are down with as much as 17 percent. Technology stocks have done particularly poorly with a return of negative 28 percent, the CEO of Norges Bank Investment Management, Nicolai Tangen, said in a press release.”

On the other hand, the Investment Corporation of Dubai (ICD) posted the best-ever revenues and net profit in the first half of 2022 by investing in Emirates National Oil Company, which contributed 26 percent of total revenue. Its investments in Emirates Airline, Flydubai, and Dubai Aerospace Enterprise have historically brought in 43 percent of revenues.

The success of any SWF like the “Maharlika Investment Fund” simply comes down to the success of its investments, the way the funding is obtained, and how the money is handled. Good idea? Only time will tell as with every investment scheme.

What we all should do this month

RISING SUN

PrIces of basic commodities are still high and while christmas cheer is definitely in the air, more people are complaining about tighter budgets this month. In the Us, there is talk of a looming recession in 2023, which basically spells widespread unemployment and stock market decline. Locally, the inflation rate for november is going to be released by the Philippine statistics Authority on Tuesday, but the Bangko sentral ng Pilipinas has given a november inflation forecast within the range of 7.4 percent to 8.2 percent. At the risk of putting a damper on the holiday celebrations, I believe we all should spend some time this December on financial planning for 2023. It can save us from possible financial kinks in the future.

Use some of that December bonus to build an existing emergency fund or savings account, or to start one if you don’t have it yet. Finance experts say we should have enough to cover three to six months’ worth of expens-

es. Avoid spending this money even if there are expenses to be covered unless it is an emergency situation. Another way to prepare financially is to hold on to cash by putting off unnecessary purchases. For example,

Use some of that December bonus to build an existing emergency fund or savings account, or to start one if you don’t have it yet. Finance experts say we should have enough to cover three to six months’ worth of expenses. Avoid spending this money even if there are expenses to be covered unless it is an emergency situation.

if something is broken you can have it fixed instead of buying a new one. That is, of course, if the cost of repair is cheaper than the cost of acquiring a replacement. Simplifying celebrations is another opportunity to save. This could mean giving away less expensive but more thoughtful gifts, planning the holiday menu more carefully, and celebrating at home instead of booking a hotel room or resort.

Next, see where you can further cut spending. Unnecessary subscriptions and apps, foregoing leisure trips

and activities, saving on water and power consumption, and planning your grocery list better—these are just some examples that can go a long way. Stock up on certain supplies to avoid future price hikes and save a little on bulk purchases. Grow a backyard garden of herbs and vegetables that are easy to manage. Finally, paying off high-interest debts is another wise move, according to financial planners. It goes without saying that people should generally avoid getting into more debt, if possible.

It may be a challenge to implement some of these measures or to stick to one’s financial plan while we’re in the midst of the Christmas season where the temptation (and requirement) to spend seems to happen at every turn. But it would help to have a reasonable holiday budget and stick to it. Don’t spend frivolously to keep costs down. December is an important time to really look at our financial standing, create new financial goals, and make adjustments for a successful transition into the New Year.

Biden sees economy avoiding recession, but risks remain

By Josh Boak & Aamer Madhani | The Associated Press

WAsHInGTon President Joe Biden assured Americans on Friday that the Us economy is chugging along in the holiday season, but the very strength of a new jobs report showed that high inflation remains a recession threat.

At the White House, the president signed an emergency bill to avert a rail strike that he said could have caused 765,000 job losses in two weeks and plunged the country into a painful downturn. But many voters and economists still fear that a recession is nigh and the price of reducing high prices will be layoffs.

Biden pointed to the addition of 263,000 jobs in November—with the unemployment rate holding steady at 3.7 percent—as proof that his policies have bulked up the economy. He suggested that the major recession risk was the freight rail strike, a problem the country avoided by having Congress impose an agreement that raises pay but fails to provide the additional paid sick leave that workers demanded.

“Things are moving—they’re moving in the right direction,” Biden said. “As we go into the holiday season, here’s what this all means: The Americans are working, the economy is growing.”

White House officials do see reason for optimism. Gasoline prices are averaging $3.45 a gallon, down sharply from a June peak, according

to AAA. The economy is expanding after shrinking in size during the first half of the year. And since July, workers’ average hourly earnings have been rising faster than consumer prices.

But inflation can be a game of whack-a-mole, and Friday’s employment report suggested that wage growth actually could be part of the problem.

Inflation has been something of a moving target during Biden’s presidency. Supply chain challenges and shortages pushed up prices as the country started to recover from the pandemic in 2021. Higher oil and food costs drove up inflation after Russia invaded Ukraine in February. And the jobs report showed that wage growth accelerated sharply, which could fuel inflation going forward.

The Federal Reserve is attempting to reduce inflation by raising its benchmark interest rates. That action reduces economic activity in order to bring down prices.

On Wednesday, Fed Chair Jerome Powell suggested the US central bank might not have to raise rates as aggressively to return inflation to the

White House officials do see reason for optimism. Gasoline prices are averaging $3.45 a gallon, down sharply from a June peak, according to AAA. The economy is expanding after shrinking in size during the first half of the year. And since July, workers’ average hourly earnings have been rising faster than consumer prices.

2 percent annual target. That comment caused the stock market to rise, only for the optimism to fizzle out on Friday as the new and revised wage data indicated the Fed might need to do more to cool the economy.

“With these revisions, the pace of wage growth is more consistent with 5 percent inflation than with 2 percent inflation,” said Harvard University professor Jason Furman, formerly the top economist in the Obama White House. “In this sense it may take a larger adjustment in labor markets than previously hoped to bring inflation down.”

The president’s key message is that his policies have helped to avoid catastrophes such as a recession caused by a rail strike. The bill he signed Friday binds rail companies and workers to a proposed settlement that was reached between the railroads and union leaders in September but rejected by the workers of some unions.

“The bill I’m about to sign ends a difficult rail dispute and helps our nation avoid what without a doubt would have been an economic catastrophe at a very bad time in the calendar,” said Biden. He said his team helped negotiate a “good product, but we still have more work to do in my view.”

Members of four of the 12 unions involved had rejected the proposed contract as lacking sufficient paid sick leave, setting up the possibility of a strike beginning December 9. Biden acknowledged the shortcoming and said he would continue to push for that benefit for every US worker.

“I’ve supported paid sick leave for a long time,” said the president, a staunch labor union supporter. “I’m going to continue that fight until we succeed.”

He said that Republican lawmakers blocked the inclusion of seven days of paid sick leave in the agreement, and it’s unclear how he would get backing for expanding family leave to all workers with the GOP winning the House majority in November’s elections.

Republican leaders have tapped into deep doubts about the US economy with party officials noting that higher prices have caused Americans’ savings rate to hit the lowest level in 17 years. About three-quarters of voters last month called economic conditions “poor” or “not so good,” See “Biden,” A9

Atty. Jose Ferdinand M. Rojas II

A meaningful celebration

Joel L. Tan-Torres

DEBIT CREDIT

Part One

THE Philippine accountancy profession will become a centenarian in a few months, or by early 2023. On March 17, 1923, Act No. 3105 was approved by Congress. This law, among others, established the Board of Accountancy that paved the way for the recognition and professionalization of the accountancy profession and public practice.

Presidential Proclamation 1333, signed by President Rodrigo Duterte, declared March 18, 2022 until March 17, 2023, as the “Centenary Year of the Accountancy Profession in the Philippines.” The Professional Regulatory Board of Accountancy (BOA) spearheads this year-long celebration. The launch of the celebration was held at the Manila Hotel on March 17, 2022. The commemoration centers on the theme “Celebrating the Past, Transforming the Present, Shaping the Future.” The four sectors in the profession, consisting of public practice, commerce and industry, education, and government, and their respective national associations, are participating in this meaningful celebration.

I observe the more notable events organized for the celebration that had been done to date. These include the unveiling of the logo for the centenary celebration (https:// www.facebook.com/ACPACI/videos/3843501489061863), the preparation for the publication of a book to chronicle the milestones in the accountancy profession, and the ongoing search for the 100 Certified Public Accountants who will be given the Accountancy Centenary Award of Excellence.

I am sure that more can be done to have a more meaningful celebration. When I was the Chairman of the BOA, I initiated several activities to celebrate the 95th year or silver anniversary of the accountancy profession in 2018. These included such events as:

a. Publication of newsletter and special supplements in newspapers.

b. Conduct of anniversary song competition.

c. Creation of the Facebook page “Accountancy95Years” (https://www. facebook.com/Accountancy95years).

d. Dissemination of Philippine accountancy trivia and history.

e. Marketing of anniversary novelty items.

f. Search for Outstanding CPA alumni of accountancy schools.

g. Promotion of applications for the Asean Mutual Recognition Arrangement for Accountancy Services.

h. Arranging for the release of Malacañang Proclamation 464 declaring the celebration of the 95th year anniversary of the Philippine accountancy profession.

i. Release of the silver anniversary logo.

j. S election of several female

Presidential Proclamation No. 1333, signed by President Rodrigo Duterte, declared March 18, 2022 until March 17, 2023, as the “Centenary Year of the Accountancy Profession in the Philippines.” The Professional Regulatory Board of Accountancy spearheads this year-long celebration. The launch of the celebration was held at the Manila Hotel on March 17, 2022. The commemoration centers on the theme “Celebrating the Past, Transforming the Present, Shaping the Future.”

CPAs for the Miss Diamond CPA Ambassadresses.

k. Conduct of conferences and other learning events.

l. Issuance of a commemorative postal stamp.

m. Working for the approval of the Accountancy Law amendments.

n. Implementation of the eQuality Assurance Review program.

o. Encouraging the national sectoral accounting sectoral associations to participate in the dissemination and celebration of the silver anniversary activities.

There was a conscious effort on the part of BOA to involve accounting students and CPAs in the various activities. With more of these stakeholders volunteering to participate in the anniversary events, there would be more meaning for them of the significance of the milestone being celebrated. I was replaced as BOA chairman in August 2018 so I was not able to lead the completion of some of the projects by the silver anniversary date in 2019.

The members of the accountancy profession are expecting that this centenary commemoration will have more meaning and impact.

To be continued.

Joel L. Tan-Torres was the former Dean of the University of the Philippines Virata School of Business. Previously, he was the Commissioner of the Bureau of Internal Revenue, the chairman of the Professional Regulatory Board of Accountancy, and partner of Reyes Tacandong & Co. and the SyCip Gorres and Velayo & Co. He is a Certified Public Accountant who garnered No. 1 in the CPA Board Examination of May 1979. He is now back to his tax practice and can be contacted at joeltantorress@ yahoo.com

can be averted, said Daniel Zhao, lead economist at Glassdoor, an employment web site.

A different kind of cancer statistics

Siegfred Bueno Mison, Esq.

THE PATRIOT

IN 2022, cancer remains as the second most common cause of death in the US, after heart disease. In the same year, 21 percent of cancer deaths in the US come from lung and bronchus, 9 percent from colon and rectum, 8 percent from pancreas, 7 percent from breast, while 55 percent comes from all others. According to a US study, pancreatic cancer is the least survivable and quickest killing cancer while breast cancer and prostate cancer are supposedly the most curable.

In the Philippines, cancers in the lung, breast, colon, rectum, and prostate are the common cancers according to a 2021 World Health Organization Report. One of the important legislative measures to combat cancer is the 2019 Philippine National Integrated Cancer Control Act (NICCA). It includes provisions covering the development of cancer centers, educational initiatives for both professionals and laymen, and psychosocial, supportive, and palliative services, among others.

When it comes to palliative care, I consciously rendered one to TJ, a very dear friend of mine, who found out that she had cancer quite belatedly and succumbed to it within a year from discovery. Despite being diagnosed with peritoneal cancer, one of the rare and deadlier kinds, TJ remained upbeat and sought divine grace for a miracle. Unfortunately,

no amount of financial resources and prayers could prevent TJ from joining Our Creator at an early age of 53. Her family “celebrated” her first year death anniversary a few weeks ago.

With so much research time and resources spent, I wonder why mankind has yet to find a cure for such menacing disease.

Statistically speaking, one study that included 119 organizations reported that $6 billion went to cancer research. Among all cancer research recipients, breast cancer received the largest donation in the amount of $460 million in 2019. Rightly so, since experientially speaking, among all my relatives who have or had cancer, all but one had breast cancer. One can seem to wonder why spend more money on breast cancer which has a high survival rate as opposed to lung cancer which has a very low survival rate. According to Dr. Mona

Khanna, a triple board-certified practicing physician and an Emmy Award-winning journalist, the likely reason for such funding disparity is more about marketing. She says that some cancer-specific donors are turned off by some “unworthy kinds” such as lung cancer, which are often associated with smoking. Either way, a lot of fund support has been given and used to find a cure.

While cancer ends one’s physical life, it also resurrects one’s spiritual life. I remember how my friend TJ went from shock to denial to resistance and, finally, to acceptance in her cancer journey. It was in this stage of acceptance that TJ physically suffered so much pain yet endured as she spiritually matured and embraced God’s will. She got killed by cancer but got resurrected by it as well as she spent whatever energy she had left to help her loved ones.

Kindness prevailed over her suffering as she looked to help others first before herself, despite the frequent episodes of stomach pain.

Our human years are numbered yet we don’t know the exact number. For some, fear of the great beyond makes them tremble. For others, like TJ, she sought refuge in the biblical promise in Isaiah 41:10 “ fear not, for I am with you; be not dismayed, for I am your God; I will strengthen you, I will help you, I will uphold you with my righteous right hand.” I used to be terrified of getting hurt and dying, while I was in the Army. Over time, I realized that God had already written all the days of my life in his book. He has already numbered the days of my

life as well as everyone else’s. With that spiritual mindset, I fear less of whatever happens around me. Such fearlessness makes me invulnerable knowing that I don’t have control of anything, except my free will of choosing faith over fear.

In the Bible, Psalms 90:12 tells us, “teach us to number our days, that we may gain a heart of wisdom.”

Cancer gives us a slow death. Those stricken by it are offered a rare chance to reflect and contemplate on the more important things in life. Whether it’s cancer or any debilitating illness, let’s choose to remain in faith rather than live in fear for the Bible tells us in John 16:33, “I have told you these things, so that in me you may have peace. In this world you will have trouble. But take heart! I have overcome the world.” For those who have loved ones suffering or have suffered a “slow death” by way of cancer, let’s have a Christ-like approach of accepting with confidence that our Savior has and will overcome whatever challenges we have to go through in life and in death.

A former infantry and intelligence officer in the Army, Siegfred Mison showcased his servant leadership philosophy in organizations such as the Integrated Bar of the Philippines, Malcolm Law Offices, Infogix Inc., University of the East, Bureau of Immigration, and Philippine Airlines. He is a graduate of West Point in New York, Ateneo Law School, and University of Southern California. A corporate lawyer by profession, he is an inspirational teacher and a Spirit-filled writer with a mission.

For questions and comments, please e-mail me at sbmison@gmail.com.

Turkish strikes on US Kurd allies resonate in Ukraine war

By Ellen Knickmeyer | The Associated Press

BUCHAREST, Romania—Biden administration officials are toughening their language toward Nato ally Turkey as they try to talk Turkish President Recep Erdogan out of launching a bloody and destabilizing ground offensive against American-allied Kurdish forces in neighboring Syria.

Since November 20, after six people died in an Istanbul bombing a week before that Turkey blamed, without evidence, on the US and its Kurdish allies in Syria, Turkey has launched cross-border airstrikes, rockets and shells into US- and Kurdish-patrolled areas of Syria, leaving Kurdish funeral corteges burying scores of dead.

Some criticized the initial muted US response to the near-daily Turkish bombardment—a broad call for “de-escalation”—as a US green light for more. With Erdogan not backing down on his threat to escalate, the US began speaking more forcefully.

US Defense Secretary Lloyd Austin called his Turkish counterpart on Wednesday to express “strong opposition” to Turkey launching a new military operation in northern Syria.

And National Security Council spokesman John Kirby on Friday made one of the administration’s first specific mentions of the impact of the Turkish strikes on the Kurdish militia, known as the Syrian Democratic Forces, that works with the United States against Islamic State militants bottled up in northern Syria.

Kurds concentrate on defending themselves from the Turkish air and artillery attacks and a possible ground invasion.

Since 2015, the Syrian Kurdish forces have worked with the few hundred forces the US has on the ground there, winning back territory from the Islamic State and then detaining thousands of Islamic State fighters and their families and battling remnant Islamic State fighters. On Saturday, the US and Kurds resumed limited patrols at one of the detention camps.

“ISIS is the forgotten story for the world and the United States, because of the focus on Ukraine,” said Omer Taspinar, an expert on Turkey and European security at the Brookings Institution and the National War College. ISIS is one widely used acronym for the Islamic State.

“Tragically, what would revive Western support for the Kurds... would be another ISIS terrorist attack, God forbid, in Europe or in the United States that will remind people that we actually have not defeated ISIS,” Taspinar said.

“The Kurds were integral in helping us defeat ISIS—and too many lost their lives. Now, President Trump has abandoned them. It’s shameful,” Biden tweeted at the time.

The measured US response now— even after some Turkish strikes hit near sites that host US forces—reflects the significant strategic role that Turkey, as a Nato member, plays in the alliance’s efforts to counter Russia in Europe. The State Department and USAID did not immediately answer questions about whether the Turkish strikes had hindered aid workers and operations that partner with the United States.

Turkey, with strong ties to both Russia and the United States, has contributed to its Nato allies’ efforts against Russia in key ways during the Ukraine conflict. That includes supplying armed drones to Ukraine, and helping mediate between Russia and the United States and others.

But Turkey is also seeking to exert leverage within the alliance by blocking Finland and Sweden from joining Nato. Turkey is demanding that Sweden surrender Kurdish exiles that it says are affiliated with the PKK Kurdish insurgents.

Turkey’s state-run news agency reported that Sweden extradited a member of the PKK and he was arrested Saturday upon arrival in Istanbul.

Experts say the Biden administration has plenty of leverage to wield privately in urging Erdogan to relent in the threatened escalated attack on Syrian Kurds. That includes US F-16 fighter sales that Turkey wants but have been opposed by Senate Foreign Relations Committee Chairman Robert Menendez and others in Congress.

There’s a third big security risk in the US handling of Turkey’s invasion threat, along with the possible impact on the Ukraine conflict and on efforts to contain the Islamic State.

That’s the risk to Kurds, a stateless people and frequent US ally often abandoned by the US and the West in past conflicts over the past century.

If the US stands by while Turkey escalates attacks on the Syrian Kurds who were instrumental in quelling the Islamic State, “especially in the aftermath of Afghanistan, what message are we sending to the Middle East?” asked Henri J. Barkey, an expert on Kurds and Turkey at the Council on Foreign Relations and at Lehigh University.

“And to all allies in general?” Barkey asked.

An ethnic group of millions at the intersection of Turkey, Iraq, Iran and Syria, Kurds lost out on a state of their own as the US and other powers carved up the remnants of the Turkish Ottoman Empire after World War I.

according to AP VoteCast.

Texas Rep. Kevin Brady, the ranking Republican on the House Ways and Means Committee, called the jobs report a “nightmare before Christmas.”

“The White House is absolutely clueless about the very real labor shortage still hurting Main Street businesses and driving prices higher,” Brady said. “And for many workers, they are struggling with real wage losses and real pay cuts, making sticker shock a big part of this year’s holiday gift shopping experience.”

Although Biden has said the economy is heading in the right direction, the employment report indicates that it’s on a “more muddled path” in which it’s unclear whether a downturn and eventual job losses

The mixed signals come in part because the employment report comes from two surveys. The survey of employer payrolls shows how many jobs were added, while a separate survey of households determines the unemployment rate.

The two surveys have diverged with the household numbers indicating the economy has actually lost jobs over the past two months, contradicting the gains seen in the establishments survey.

Zhao said the economy doesn’t look as though it is about to tip into recession, but the risk is that when job figures are revised next year policymakers could learn in hindsight that the US was shedding jobs as the Fed continued to raise rates.

“These surveys are out of sync at a critical turning point in the economy,” he said.

How successfully the United States manages Erdogan’s threat to send troops in against America’s Kurdish partners over the coming weeks will affect global security concerns from that isolated corner of Syria.

That’s especially true for the Ukraine conflict. The Biden administration is eager for Erdogan’s cooperation with other Nato partners in countering Russia, particularly when it comes to persuading Turkey to drop its objections to Finland and Sweden joining Nato.

But giving Turkey free rein in attacks on the Syrian Kurds in hopes of securing Erdogan’s cooperation within Nato would have big security implications of its own.

US forces on Friday stopped joint military patrols with the Kurdish forces in northern Syria to counter Islamic State extremists, as the

Turkey says the Syrian Kurds are allied to a nearly four-decade PKK Kurdish insurgency in southeast Turkey that has resulted in the deaths of tens of thousands of people on both sides. The United States’ Syrian Kurdish allies deny any attacks in Turkey.

US Central Command, and many in Congress, praise the Syrian Kurds as brave comrades in arms. In July, Central Command angered Turkey by tweeting condolences for a Syrian Kurdish deputy commander and two other female fighters killed by a drone strike blamed on Turkey.

In 2019, a public outcry by his fellow Republicans and many others killed a plan by President Donald Trump, which he announced after a call with Erdogan, to clear US troops out of the way of an expected Turkish attack on the Kurdish allies in Syria.

Then-presidential contender Joe Biden was among those expressing outrage.

Turkey is one of only two of the 30 Nato members not to have signed off yet on the Nordic countries’ Nato memberships. Hungary, the other, is expected to do so.

At a gathering of Nato foreign ministers in Bucharest, Romania, this past week, Nato diplomats refrained from publicly confronting Turkey, avoiding giving offense that might further set back the cause of Finland’s and Sweden’s Nato membership.

Turkey’s foreign minister made clear to his European counterparts that Turkey had yet to be appeased, when it came to Finland or Sweden hosting Kurdish exiles there.

“We reminded that in the end, it’s the Turkish people and the Turkish parliament that need to be convinced,” Turkish Foreign Minister Mevlut Cavusoglu told reporters on the sidelines.

US Secretary of State Antony Blinken is expected to talk Thursday with Finland’s and Sweden’s foreign ministers on dealing with Turkey’s objections to their Nato accession.

Saddam Hussein and other regional leaders used poison gas, airstrikes and other tools of mass slaughter over the decades to suppress the Kurds. As under US President George H.W. Bush in 1991 after the Gulf War, the United States at times encouraged popular uprisings but stood by as Kurds died in the resulting massacres.

On November 28, hundreds of Syrian Kurds gathered for the victims of one of the Turkish airstrikes—five guards killed securing the al-Hol camp, which holds thousands of family members of Islamic State fighters.

Relatives of one of the Kurdish guards, Saifuddin Mohammed, placed his photo on his grave.

“Of course, we are proud,” said his brother, Abbas Mohammed. “He defended his land and his honor against the Turkish invading forces.” Abby Sewell and Bassem Mroue in Beirut, Lorne Cook in Bucharest, Aamer Madhani, Matthew Lee and Lolita C. Baldor in Washington and Hogir al Abdo in Qamishli, Syria, contributed to this report.

THIRTY percent of Filipinos said their quality of life improved since last year, a first Social Weather Stations (SWS) survey under the Marcos administration showed.

A n SWS survey conducted from September 29 to Octo ber 2, using face-to-face inter views of 1,500 adults nation wide, found that 30 percent of adult Filipinos deem their quality of life better than 12 months before (termed by SWS as “Gainers”); 29 percent said it got worse (“Losers”); and 41 percent said it was the same (“Unchanged”), compared to a year ago.

S WS described those who said their lives got better as “Gainers,” those who said their lives wors ened as “Losers,” and the rest as “Unchanged.”

T he net gainers score of zero is regarded by SWS as “fair” (-9 to zero).

T he SWS said Net Gainer score is slightly up from the fair -2 in June and April 2022.

However, it added that such is still 18 points below the prepandemic level of very high +18 in December 2019.

A ccording to the SWS, the survey question on the respon dents’ assessment of their change in quality of life in the past 12 months has been fielded 146 times since April 1983.

The Net Gainer score was gen

QUALITY

erally negative until 2015 when it rose to positive numbers until the drastic deterioration begin ning with the Covid-19 pandemic lockdowns. It has since trended back upwards but still has not reached the positive range,” said the SWS.

T he SWS added that the 2-point rise in the national Net Gainer score between June 2022 and October 2022 was due to increases of 4 points in the Visayas and 3 points in Metro Manila and Balance Luzon, com bined with a 4-point decrease in Mindanao.

Compared to June 2022, the pollster said the Net Gainers stayed mediocre in the Visayas, although up by 4 points from -17 to -13.

It stayed high in Metro Manila, up by 3 points from +6 to +9.

It also stayed high in Balance Luzon, up by 3 points from +5 to +8.

However, it fell from fair to me diocre in Mindanao, down by 4 points from -7 to -11.

Hunger and poverty

THE October 2022 survey also found that 11.3 percent of Fili pino families, or an estimated 2.9 million, experienced invol untary hunger—being hungry and not having anything to eat—at least once in the past three months.

See “Filipinos,” A2

Senate set to scrutinize Maharlika Wealth Fund; House touts safeguards

By Jovee Marie N. dela Cruz @joveemarie & Butch Fernandez @butchfBM

SENATORS were expected to mount an inquiry into the proposed use and safeguards for the P275-billion Maharlika Wealth Fund bill, which their coun terparts in the House of Represen tatives are rushing, amid mounting concern over the use of workers’ pension funds to seed the facility.

A t the weekend, Sen. Jinggoy Estrada joined the chorus of cau tious reminders from his peers, and stressed the need for the coun try’s first sovereign wealth fund to be “scrutinized and debated extensively.”

E arlier calls for more thorough deliberations of the proposal, championed by Speaker Martin G. Romualdez reportedly at the instance of President Ferdinand R. Marcos Jr. himself, were aired last week by Minority senators Koko Pimentel and Risa Hontiveros, and even by the President’s sister, Sen. Imee Marcos, who noted Malaysia’s tragic experience with its sover eign wealth fund, and who wants caution in using pension funds. A former Malaysian prime minister and his wife are in jail for the mis use of nearly $1 billion from that country’s sovereign wealth fund.

E strada affirmed the law makers’ duty to protect public funds, underscoring the need to “iron out kinks and hold public de bates on the proposed P275-billion sovereign wealth fund.”

E strada clarified at the outset he is not against approval of the proposed Maharlika Wealth Fund (MWF), but added,  “we still have to see the need for it.”

E strada wondered “why are pro ponents rushing the approval of the proposed P275-billion sovereign wealth fund when senators have yet to iron out kinks and hold public debates to discuss the matter?”

T he senator also clarified in a separate interview that while he is “not against” approval of the MWF that will draw resources primarily from contributions from state pen sion funds and state-owned lend ers, “we still have to see the need for it.”

Moreover, Estrada added: “We have to scrutinize it. We have to de bate it extensively, and I personally, I have many   questions regarding that  MWF.”

E strada expects “a lot of ques tions” can be raised. “First of all, where will they get the money? Sec ond, is it safe or is it risky? If they’re going to get it from GSIS, SSS, are we going to risk the pensions of our pensioners? Why are we rush ing to approve this before we go on vacation [Christmas break], when we still have lots of questions on that Maharlika Wealth Fund,” he added, partly in Filipino.

T he lawmaker urged colleagues to “exercise caution given the case of Malaysia when its state-owned investment fund 1MDB, which was supposed to promote development, was channeled into the personal bank account of former Prime Min ister Najib Razak.”

E strada, however, clarified that “I am not saying that the same thing will happen in the Philip pines. But maybe we should put in place additional safety nets or safeguards if we are to approve this MWF,” he added.

A t the same time, he reminded that “with only two weeks left be fore Congress goes on Christmas break and numerous questions that have to be answered,”  he was not optimistic the bill can be approved by the Senate.

Include hybrid cars in zero duty EV imports–foreign biz

By Andrea E. San Juan

free, zero import duty on EVs five years,” Wittig said.

A part from the push to im pose five-year zero tariff rate on hybrid EVs, Hinchliffe said the planned zero tariff rate on importation should be extended to “all countries” and not just to the “special trading partners” of the Philippines.

Two weeks ago, at a press confer ence in Malacañang, Socioeconom ic Planning Secretary Arsenio M. Balisacan announced the National Economic and Development Au thority (Neda) Board has endorsed a new Executive Order to President Ferdinand R. Marcos Jr. to imple ment the new tariff modification.

A t the press conference for the 11th Arangkada Philippines Fo rum, business groups including the American Chamber of Com merce of the Philippines, and Korean Chamber of Commerce, backed the European Chamber of Commerce of the Philippines (ECCP) in urging the government to include hybrid vehicles in the planned zero tariff rate on im ported electric vehicles (EVs).

First of all we applaud the gov ernment for this initiative as it is the first country in Asean to al low zero import-duty on electric vehicles. But the reason why we bring it up is we would also like to include hybrid, gas and not only from within Asia or Asean but also from Europe,” ECCP President Lars Wittig said on Thursday.

E bb Hinchliffe, AmCham Ex ecutive Director, said the business

group fully supports the state ment that ECCP issued last week on the planned executive order on EV importation.

If we have the ability to manu facture vehicles in the country, then for sure we should be able to have zero import duty on all vehicles coming in and I just with…hybrid,” Hinchliffe said.

Meanwhile, the ECCP president said they expect the President to sign the amendments on the five years of import duty-free privilege on EVs.

“ We are prodding the govern ment. We have earlier this week had a meeting with the Depart ment of Trade and Industry [DTI] and we expect this month, this De cember before Christmas, that the government…the President will pass and sign the amendments to ensure five years of import duty-

K orean Chamber of Commerce Philippines Executive Director Hyun Chong Um also supported the zero-tariff importation privi lege, saying such will level up the Philippines’s automotive industry.

I think some other countries, before they start, they even have a government subsidy to lower the cost of the price but for the Philip pines, even just removing tariffs, that will greatly benefit not only the environment but [prepare] for the next stage of the automotive industry,” the Korean Chamber official noted.

Hyun Chong Um also thinks that hybrid vehicles should be included, “I think so because EV should come with infrastructure like charging stations and everything. You can not only drive in Makati and Metro Manila so I think hybrid and all this combination will be a good start with changing from a combustion engine to electric cars.”

The EO will temporarily reduce the most-favored nation [MFN] tariff rates to zero percent for five years and completely built-up or CBU units of certain EVs, except for hybrid-type EVs,” Balisacan said.

C urrently, Balisacan said the tariff for e-vehicles range from 5 percent to 30 percent.

T he zero-tariff policy will cover EVs such as passenger cars, buses, mini buses, vans, trucks, motorcy cles, tricycles, scooters and bicycles among others.

It will also reduce the tariff for certain component parts of EVs from 5 percent to 1 percent for five years.

However, the pending EO will exclude hybrid vehicles, which makes use of an electric motor and a traditional combustion engine, for the meantime.

“ We will review the performance of this reform after one year to see if there is a need to also include the hybrid,” Balisacan said.

Global central banks brace for

climate change amid volatile energy prices

By Siegfrid Alegado and Anup Roy Bloomberg

“We only have two weeks to go and this entails a lot of funds, this amounts to P275 billion. It took us three weeks to go over the national budget,  what more this P275 bil lion?,” he said, adding, “I think that can wait.”

CLIMATE change and the en ergy transition are becoming top of mind for central bank policymakers as they grapple with volatile energy prices and the ef fects of more frequent extreme weather events.

T he shift to green energy may be “inflationary and even slightly stagflationary,” Bank of France Governor Francois Villeroy de Gal

hau said Friday, speaking virtually on a panel at a central bank confer ence in Bangkok. “I stress might, we don’t know yet.”

“ Looking through” green transi tion-induced inflation “would be a seductive monetary policy but it’s probably the risky one,” he said Fri day. “So we will have to react, but not to overreact.”

C limate-related shocks—either on the demand or supply-side— may also stoke inflation, the World Bank’s M. Ayhan Kose said on the

same panel.

C entral banks might have to “reassess” monetary policy frameworks, inflation targets or both.

P olicymakers are exploring avenues to manage risks asso ciated with climate change and the price impacts of a transition to greener energy. Earlier this year, European Central Bank Executive Board member Isabel Schnabel said inflation forecasts may need to be revised upward as

EU countries try to reduce CO2 emissions.

T he risks to emerging-market economies are greater, Kose said on Friday, highlighting the need to provide resources to lower-income nations.

“ There is tension between emerging markets and developed markets on climate finance,” he said.

“ We need to be honest about the essence of the challenge we face, and that is financing.”

FOREIGN business groups in the country made a pitch for hybrid cars to be included in the government’s planned zero duty on the importation of electric vehicles (EVs).

‘greenflation,’

PASAY FOUNDING DAY Senior citizens of Pasay City dressed in Santa Claus costumes participated in the street dance during the celebration of the city’s 159th Foundation Anniversary over the weekend with the theme: “Moving Towards One Eco City.” NONIE REYES

Semirara chief paints bleak outlook for energy supply

By Lenie Lectura @llectura

emirara mining & Power Corp. (SmPC) Chairman isidro Consunji said the country’s power situation next year is going to be “more challenging than before” because of tight supply amid an improvement in the country’s economy.

“2023 is the most challenging, more than 2024. The government will have to prop up the economy so that means increase in demand, and there’s almost a 1:1 correlation in GDP growth and energy demand,” said Consunji.

He also noted that electricity prices are higher during June and

July than higher in the hot dry season, when demand as its peak. a c tually, we monitor the prices. The highest price is (recorded) not in a pril to May but in June and July. These are the months when hydro is almost used up and when most of the power plants would conduct their maintenance shutdown since

they are prohibited to shut down during summer,” said Consunji.

Earlier, the Department of Energy (DOE) said it expects 17 yellow and three red alert warnings in May and June next year, mainly on account of thin power reserves in the Luzon grid.

Based on the DOE’s Luzon power outlook for 2023, with forced outage scenario and exclusion of Ilijan power plant, the agency’s simulation showed the occurrence of 17 yellow alerts and three red alerts in 2023. The red alerts are seen to occur in May and June, as capacity will fall below the operational margin given lack of reserves in the grid.

“This usually falls in May and June because hydro plants in Luzon are unable to deliver at this particular point. So, these are the ones we are attending to with sense of urgency and which is to plan for

how to bridge this particular gap,” said DOE Secretary Raphael Lotilla.

“There is the hope that some natural gas facilities can come on stream before this, but even without this we have to plan for other contingency.”

The country’s committed power projects total 8,864.29 MW as of July this year. Coal accounts for the highest at 4,488 MW (50.6 percent) followed by natural gas at 3,500 MW (39.5 percent). Renewablebased committed power projects total 834 MW (9.4 percent).

For Luzon, committed power projects total 8,081.56 MW. On a per power project basis, coal (3,948.40 MW or 48.9 percent) and natural gas (3,500 MW or 43.3 percent) aggregately combine for 92.2 percent (7,448.40 MW) of the total committed capacity. Meanwhile, renewable energy-based power projects total 622.12 MW.

SMC offers power from Ilijan plant

San Miguel Global Power (SMGP) is offering the full 1,200 megawatts (MW) capacity of its Ilijan natural gas plant to supply the power requirements of the Manila Electric Co. (Meralco) for just a fraction of its capital cost.

The power arm of conglomerate San Miguel Corp. (SMC) said the move is meant to help keep electricity prices as low as possible for consumers, while ensuring steady supply of electricity in the coming months.

It can be recalled that the Department of Energy (DOE) had said that it expects a “massive” power supply deficit in Luzon, unless the Ilijan power plant is reactivated as part of the energy mix.

Ilijan, which accounts for 10 per-

cent to 12 percent of Luzon’s net dependable capacity, will only cost Meralco a minimal P1.00/kwh in capital recovery fee, or half of its capital cost on the facility.

SMC President Ramon S. a ng said there had been initial discussions between SMGP unit, South Premiere Power Corp. (SPPC), and Meralco on Ilijan’s offer.

a s we have said in the past, we will continue to look for ways to help make sure consumers will still have some protection from the effects of skyrocketing global fuel prices. This is one of the best and most direct ways we can show solidarity with our people in this time of crisis,” said a ng.

Essentially, this will mean that the incremental power supply costs

from such capacity for households may be cut down significantly compared to prevailing costs from coal power generation.

“Because of unforeseen global events such as the Russia-Ukraine war, fuel prices are at unprecedented highs, and supply is tight. We are in a crisis and this is a shared burden by all Filipinos—power consumers, the power sector, government. By immediately foregoing returns, we continue to carry our share of the burden, while getting just enough to make sure plant operations continue and remain sustainable,” a ng added.

In order to help address fuel constraints, the company is also offering to help source the fuel for the Ilijan facility—whether from its own al-

location of Malampaya gas or liquid fuel—which Meralco will pay for. a ng said SMGP is also willing to work with Meralco in using its 70 PJ banked gas at a cost much lower than the prevailing cost of coal power generation. This, he said, would give Meralco the flexibility to manage its overall power generation costs, and ensure adequate power supply.

He said the company also expects the completion of a liquefied natural gas terminal facility it has tolled by March 2023, according to most recent construction updates. The company contracted the facility to receive, store, and re-gassify commercial LnG, but pandemic restrictions and the Russia-Ukraine war delayed the project. Lenie Lectura

Stock market gamblers let it ride again in brutal year

LIKE stuck card players trying to win it all back in one hand, equity bulls are dialing up risk appetites at the tail-end of a brutal year.

active stock managers are adding to positions. Option markets show a trend toward hedging, a sign professional traders are dipping back into equities. Beyond institutional circles, demand for meme stocks springs eternal, with chat-room favorites like a MC Entertainment posting big days.

Fueling the momentum, as usual, is speculation about a policy shift at the Federal Reserve—hopes that took lumps Friday when hiring and wage growth in the United States rose past forecasts. While changes in market leadership may portend a sturdier future for a rally that has lifted the S&P 500 14 percent since October, it remains hard to distinguish the latest bull run from those that fell apart earlier this year.

“You’ve just got a tough market in terms of folks hoping for signs of some reprieve, but realizing that conditions are still relatively tough,” said Lisa Erickson, senior vice president and head of public markets group at US Bank Wealth Management. “We are more skeptical that this rally is durable regardless of which sector or which style like value or growth is leading it.”

The problem for bulls is that the

latest revival of risk appetites is a near-perfect rerun of the situation in early august, when active managers and hedge funds dialed up exposure and meme stocks in some cases doubled and tripled. That episode ended in disaster for bulls, with the S&P 500 plummeting more than 15 percent over eight weeks. Plenty of pundits see the potential for the same fate this time.

In the latest go-round, equity faithful have been quick to latch on to Fed Chair Jerome Powell’s comments on a possible downshift in the pace of tightening at next month’s meeting, driving the S&P 500 to a 3 percent rally on Wednesday. That session overwhelmed losses in each

of the other four days and kept stocks in green for a second straight week.

More than $10 trillion has been added to equity values as stocks bounced from their bear-market lows in October. a long the way, familiar signs surfaced showing money managers who previously cut equity holdings to the bone are warming up to the market.

In a poll by the national a ssociation of active Investment Managers (naa IM), equity exposure fell in September to the lowest level since the 2020 pandemic crash. It has since jumped and now hovers near a fourmonth high.

In options, demand for hedging is back—seen as a bullish signal

PAVI Green expects to complete solar projects next year

PaV I Green Renewable Energy Inc. (PaV I Green) will complete the development of its 20megawatt (MW) solar power project in Bataan by early next year and possibly two more by the end of 2023.

“The completion rate is at 90 percent already. We are targetting early 2023 the commissioning of the PaV I Green Bataan in Orion,” said PaV I Green Renewable Energy Inc. Chief Operating Officer Robert Marlon Pereja.

The output of solar project was already contracted by Kratos RES Inc., the retail electricity supplier (RES) of PaV I Green. a RES is an entity that provides energy in market segments where consumers are enabled to source power from sources other

than the existing distribution utility in their area.

“It’s already fully subscribed .The offtaker is our own RES, Kratos,” he added.

The two other projects are the 26-MW scalable to 36-MW project in Camarines norte, and a 50-MW scalable to 75-MW project in naga City. If completed these projects would add up 106 MW DC.

“We are aspiring to commission it by December 2023,” said Pereja.

a l l three form part of the country’s goal of putting up 1,000 megawatts of renewable energy projects worth roughly P40 billion. The planned investments will help the company become one of the leaders in the fast-growing clean energy industry. Lenie Lectura

Delta, pilots reach 4-year deal with 31% in pay hikes

considering nobody needed protection when they barely owned any stock. a f ter dipping to a nine-year low in november, S&P 500 skew— which gauges demand for insurance by comparing the relative cost of three-month puts versus calls—has climbed in three of the past four weeks, data compiled by Bloomberg show.

“This may reflect increased hedging activity,” Christopher Jacobson, a strategist at Susquehanna Financial Group, wrote in a note this week. “It could be a constructive sign, suggesting that more investors are adding to positions and as a result incrementally ramping up the demand.”

The battered retail crowd appeared to be awakening—again—at least when it comes to meme stocks. a MC Entertainment climbed 9 percent over the week, while Bed Bath & Beyond Inc. snapped an 11-week streak of losses, jumping more than 10 percent.

Similar enthusiasm isn’t evident among the pundit class. Citing everything from a looming earnings contraction to persistent Fed tightening, strategist at firms from Morgan Stanley to JPMorgan Chase & Co. warned the S&P 500 is likely to test its 2022 lows next year. In the worst-case scenario, the team at Morgan Stanley sees the index reaching 3,000, or a 26-percent drop from Friday’s close. Bloomberg News

DELTa a i r Lines Inc. pilots would receive at least 31 percent in pay hikes over the four-year term of an agreement in principle reached with the carrier.

The tentative accord—with $7.8 billion in total increased value— would also provide a one-time payment to pilots, the a i r Line Pilots a s sociation told members in an email Friday. The agreement, reached after more than three years of talks, must be approved by union leadership before going to pilots for a vote.

If approved, terms of the agreement are expected to set minimum standards for contracts being negotiated with pilots at a merican a i rlines Group Inc., United a i rlines Holdings Inc. and Southwest a i rlines Co. Talks across the industry have been particularly tense as unions seek increases in compensation and more flexible work schedules, and pilots have frequently picketed outside of airports and sites of company investor meetings.

The agreement “recognizes the contributions of our pilots to Delta’s success,” the airline said in an email.

It provides for an 18-percent pay increase effective when the final contract is signed, followed by a 5-percent hike after one year and then 4 percent after each of the next two years. The agreement also includes a provision to ensure Delta pay exceeds that in any contract for a merican or United pilots by at least 1 percent for its term.

The accord could be the first new pilots contract approved at major US airline since before the start of the pandemic. Pay raises could exceed the 31 percent total because of specific increases designed to

align rates for pilots flying some a i rbus SE and Boeing Co. aircraft, the union said. More than 25 percent of the agreement’s value comes from “quality-of-life” changes like work scheduling improvements.

The agreement also provides for a one-time payment after ratification equal to 4 percent of a pilot’s eligible earnings for 2020, 4 percent for 2021 and 14 percent for 2022.

Leaders of a merican’s union last month rejected a proposed contract that would have raised pay 19 percent over two years and United pilots overwhelmingly voted down a new labor agreement, saying it fell short of the “industry-leading contract” they deserved.

“Without question bargaining progress by one airline will stimulate other ongoing labor negotiations in our industry,” leaders of the a l lied Pilots a s sociation at a merican told pilots in a message Saturday. “This development represents a significant event in our own negotiations.”

Labor costs vie with fuel as airlines’ two largest expenses, and most US carriers are already facing higher operating costs coming out of the pandemic. Pilots want to be compensated for working through the pandemic and flying record amounts of overtime when demand returned at a surprisingly rapid pace.

Delta’s existing pilot contract took effect in 2016 and became eligible for updates at the end of 2019. a i rline labor agreements don’t expire, but become amendable at the end of specified terms. Talks were suspended during the pandemic, and a member of the national Mediation Board joined talks in January to help reach an agreement.

Banking&Finance

Crypto exchange Bybit to cut 30% of workforce

CRYPTOCURReNCY exchange

Bybit is planning to cut its workforce by 30 percent amid a continued bear market in the asset class, co-founder and Chief executive Officer Ben Zhou said.

The moves are part of an ongoing reorganization aimed at refocusing efforts, and reductions will be across the board, Zhou said Sunday, adding the priority is to ensure business operations are unaffected and client assets remain safe.

He cited crypto prices trending lower and the struggles of companies such as bankrupt crypto lender BlockFi and embattled crypto brokerage Genesis as signals “to tell us that we are entering into an even colder winter than we had anticipated from both industry and market perspectives.”

Bybit, which is ranked in the top 10 crypto exchanges by both CoinMarketCap and CoinGecko using measures including volume and con-

fidence in the reported volumes, is the latest in a string of exchanges to announce job cuts. Peers like Crypto. com and Kraken have also reduced their workforce as the industry contends with depressed prices and lower volumes.

“It’s important to ensure Bybit has the right structure and resources in place to navigate the market slowdown and is nimble enough to seize the many opportunities ahead,” Zhou said. “Tough times demand tough decisions.”

In a blog post dated Thursday, Zhou had said that “Bybit is here for the long run,” and noted the exchange secured the largest-ever crypto sponsorship with the Formula One 2021 and 2022 world champions, Oracle Red Bull Racing.

“We ended the season on a high, with the first blue-chip NFT on a F1 race car,” and launched a $100 million institution support fund, he added.

Bloomberg News

After brutal year, bonds show power of high rates

WALL Street is finding a reason to keep plowing into the bond market, even with a Federal Reserve that’s still far from declaring victory in its war against inflation.

The selloff that hit investors with record-setting losses during the first 10 months of the year also brought a stark end to an era of rock-bottom interest payments on Treasuries by driving yields to the highest in over a decade.

Those coupon payments, now over 4 percent on recently issued 2-year and 10-year notes, have become large enough to lure in buyers and are seen as providing a buffer against future price declines. The resilience of the economy is also strengthening the case: If the Fed needs to tighten monetary policy so much that it sets off a recession, Treasuries will likely rally as investors seek somewhere to hide.

“The coupon is becoming a more meaningful source of return now,” said Jack McIntyre, a portfolio manager at Brandywine Global Investment Management. “The bond math is turning into a tailwind.”

The bond market gained support Wednesday when Fed Chair Jerome Powell indicated that the central bank its likely to slow the pace of its rate hikes at the December 13 to

December 14 meeting.

The comments added fuel to a rally that began earlier in November after the rate of consumerprice inflation slowed. That sent a Bloomberg index of Treasuries to a more-than 2-percent gain for the month, the first advance since July and the biggest since March 2020, when the start of the Covid pandemic in the US spurred a rush into the safest assets.

Powell’s tempering of his hawkish tone boosted demand from investors seeking to lock in current yield levels or close out short bets against bonds.

The continued buying drove twoyear Treasury yields from as high as 4.55 percent on Wednesday to as low as 4.18 percent early Friday, before yields edged up after a strongerthan-expected November jobs report. Further out the curve, 5- and 10-year yields continued to dip and are holding at the lowest levels since September.

McIntyre cautioned that the market’s volatile ride may not be over, saying signs of persistently high inflation could limit the scale of future rallies or push yields back up.

“While inflation is coming down, it’s got a long way to go,” he said. “We don’t know when and whether we need a meaningful recession to achieve that.” Bloomberg News

Perspectives

‘Maharlika Fund’ pilloried; wealth tax seen better bet

By Cai U. Ordinario @caiordinario, Samuel P. Medenilla @sam_medenilla & Jonathan L. Mayuga @jonlmayuga

Ibon executive Director Jose enr ique A. Africa said it is better for government to consider the proposal of civil society organizations to impose a wealth tax than create the sovereign wealth fund (SWF).

Africa’s statement comes as other groups also criticized the proposal (House Bill 6398).

His organization, for one, sees the SWF only paving the way to “concentrate wealth and power in the hands of a few and make the country even more undemocratic.”

“If the government is really serious about raising revenues, a billionaire wealth tax or windfall real estate land value tax on just the few thousand richest Filipinos and few hundred largest firms are much more logical alternatives,” Africa said.

“The ‘misprioritization’ of public resources, poor social and development returns, and strong possibility of misuse and abuse are more than enough reasons to reject the Maharlika fund proposal being pushed by the biggest and certainly the most powerful political dynasty in the country today,” he added.

Ibon’s proposal is echoed by the Nagkaisa labor coalition who also proposes imposing a tax on the “unused assets of the wealthiest in the country.”

“Now that the Philippines is gradually recovering, potential revenues from wealth tax can now be used to fund ideas such as SWF without risking workers’ funds,” the coalition said.

Annual infusions

IBON expressed its reservations about the fund saying the proposed law seeks exemptions from the GOCC Governance Act, Government Pro-

The Future of IT Dynamic Investment

By Gilbert T. Trinchera

THe need for businesses to rapidly innovate and pivot in response to ever-changing market conditions, trends, and business needs has never been greater. Agile, market-speed organizations pursuing modern digital capabilities, services, and customer experiences are recognizing that amid the “need for speed” in the digital economy, the information technology (IT) function itself needs to develop the ability to rapidly reprioritize and re-allocate resources to deliver the most value as business opportunities emerge.

For cost transparency and costoptimization to be fully exploited amid today’s typical resource, staffing, and budget challenges, dynamic investment should deliver new capabilities to prioritize technology spending based on improved transparency and on the business value that innovation can deliver. This helps to meet evolving customer, marketplace, and technology needs. Rather than prioritizing innovation investment at the beginning of an annual review process and shuffling

resources as required, prioritization should be continuous and based on both past and expected future value produced.

Bringing IT and finance teams together

ORGANIZATIONS on the wrong side of the digital divide are finding it increasingly difficult to compete and this widening gap is creating conditions for a “winner-take-all” market. As we stress to clients, in the race to innovate and transform, dynamic investment is essentially about funding innovation at scale. Success in today’s fast-moving and hypercompetitive environment requires a modern culture of innovation, speed, and agility—with each “experimental” technology initiative repeatedly and routinely tested against a clear articulation of its value and viability.

Prioritizing technology investment and innovation in ways that enhance and sustain agility, growth, and business value have become indispensable. Unfortunately, many organizations continue to pursue a quantitative approach that tends to prioritize return on investment over

all other measures of value during IT funding reviews.

Turning to a balanced scorecard

COMBINING quantitative considerations with qualitative data and metrics delivers crucial insights into key areas such as market trends, customer satisfaction and experience, brand awareness and reputation, operational improvements, risk mitigation, and compliance and skills needs. Success with this approach implies new levels of collaboration and agreement among business leaders within the tech and finance functions on emerging data insights and the investment needed for a timely, agile response to business and marketplace conditions.

Replace project budgeting with product funding

TODAY’S business leaders ultimately need to understand and be accountable in new ways for the efficient allocation of resources, the cost implications of every technology-funding decision, and the value being delivered to the business.

Unfortunately, IT governance often remains misaligned in balancing

curement Reform Act and Competition Law—all of which are laws for protecting the public interest.

These exemptions, Ibon said, could create conditions for the commission of corruption. This is worrisome, Ibon said, as there is so much money involved.

The fund, Ibon said, will start with P275 billion from government financial institutions. This is composed of P125 billion from the Government Service Insurance System (GSIS) and P50 billion from the Social Security System (SSS).

It would also draw P50 billion from Land Bank of the Philippines (LBP), P25 billion from Development Bank of the Philippines (DBP) and another P25 billion from the national government budget.

Ibon said this is just the initial amount as annual infusions are planned from the national budget, Bangko Sentral ng Pilipinas (BSP), Philippine Amusement and Gaming Corp. (Pagcor), and other as yet unidentified sources.

Safeguards ‘dubious’

IBON said in the following year, as provided in the law, the 10-percent foreign currency equivalent of remittances might be at least P175 billion and 10 percent of business process outsourcing (BPO) revenues (around P165 billion); 10 percent of Pagcor revenues is P3.3 billion. These are based on Ibon’s interpretation of Article III, Section 9.

“The P275 billion on start-up, possibly growing to at least P618.3 billion in the second year, [is a] huge sum of public money. Full disclosure, transparency and accountability need to be paramount—yet these are precisely what the law creating

the fund specifically discards,” Africa said.

Ibon said the safeguards put in place are also “dubious” and should not exempt the fund from safeguards under existing laws and, if anything, should have even strengthened or added to these.

Africa said if the government had excess fiscal and foreign exchange resources, these are much better spent on more urgent ayuda, wage subsidies, small business support, and public schools and hospitals.

He added that these lead to more concrete and immediate social benefit than an explicitly profit- and return-seeking investment fund. These returns are actually even uncertain especially amid current domestic and global economic conditions.

Pension funds

ACCORDING to an analysis paper by Ibon, removing regulatory restrictions on pension funds exposes the GSIS and SSS to “unnecessary peril.” While the argument is that this potentially increases returns and profitability, it makes these pension funds subject to volatility and even losses, the paper read.

It said the list of allowable investments includes, for instance, risky unlisted equities and financial derivatives aside from the ambiguous “other investments as may be approved” (Article IV, Section 11).

“Most of the country’s millions of Filipino pensioners do not come from well-off families. Their wellbeing should be protected and not be made subject to the vagaries of financial adventurism seeking ‘the best absolute return,’ as the MIF’s objectives explicitly state [Article II, Section 6],” Africa said.

The use of public pension funds for the proposed MIF is rejected by Nagkaisa.

In a statement issued last Saturday, Nagkaisa said using funds from the SSS and the GSIS may put the sustainability of the operations of both institutions at risk.

“There is a reason both SSS and GSIS are very careful in their investment decisions and that is because that is how they secure future generations of Filipinos,” Nagkaisa said.

“[The] GSIS should know the risks involved especially in foreign money market, after all, their exposure to

the 2007-2008 Global Financial Crisis may have cost the pension fund some of its resources,” it added.

SWFs worldwide

THeR e are currently more than a hundred SWFs worldwide of around 65 governments worth some $10 trillion. By number and by value, most of these are financed from natural resource earnings—especially of energy commodities like oil, coal and natural gas but also minerals—followed by pension funds.

Five Southeast Asian countries have six SWFs. The two biggest are from Singapore, which accumulated massive foreign exchange reserves from being a major financial and commercial center.

Brunei, Timor-Leste, Indonesia and Vietnam also have SWFs. If it pushes through, the MIF will be the sixth-biggest SWF, possibly becoming the fifth biggest if our estimates of additional contributions in the second year are correct, according to Africa.

‘Wealth scam’

THe nongovernment organization Anakpawis also registered its opposition to the MIF as citing the SWF as “dubious, prone to corruption and abuse.”

A statement expressed alarm on “where the hundreds of billions of dollars will go in the guise of generating additional income for the country.”

Another group, the Pamalakaya, said while the government is now looking to spend for the Maharlika Fund, basic social services like education, health, public infrastructure and support to the poor remain wanting.

The group cited their call that government provide a subsidy of P15,000 ($269.13 at current exchange rates) so each fisherman can address the skyrocketing cost of production.

“It is clear for us—the marginalized sectors like farmers, fishermen and workers—that the objective and orientation of the Maharlika Funds is not for the poor,” the group’s statement read.

“Unless the proponents have concrete plans about protecting the SWF from turning into a ‘Maharlika Wealth Scam,’ HB 6398 cannot just be allowed to pass,” Nagkaisa said.

risk and technology performance. A single governance model focused on predictability and accountability has traditionally been viewed as suitable for all IT spending. However, a single monolithic governance model—and the lack of transparency regarding both IT spending and business value—often produces IT investment decisions that are poorly informed and inefficient.

The focus should shift from tracking and predictability to enabling the flow of value. The dynamic investment governance model replaces traditional project budgeting with product funding, addressing key considerations such as decision-making policies, roles, and rights among leadership regarding technology investment.

To maximize the agility of the business and its growth opportunities, technology stakeholders who are closest to the products and value streams need to acquire a new voice in the process and its prioritization decisions. Done right, a new approach allows for faster technology advancement that will likely enhance growth and prosperity for the business.

Reforming the Philippine digital landscape

THe “2020 Philippines Digital economy Report” released by the World Bank, stated that “Increasing digital adoption is hampered by expensive and unreliable internet connectivity, low use of digital payments, and difficult logistics.”

“As part of transitioning to a post-pandemic world, we need to increase digital adoption, whether in the government or private sector, through digital reforms that support technology investments. Prioritizing policies and regulatory frameworks to address internet and other infrastructure challenges will help enable a more digitally friendly business environment.”

On the other hand, the private sector could contribute by supporting the government with technology solutions and projects that will help mitigate digital gaps in our country such as digital payment platforms, telecommunications infrastructure upgrades, or improved logistics services, to name a few, and could also maximize public-private-partnerships (PPP) arrangements.

In conclusion, today’s business

leaders need to ask themselves if their business is truly generating appropriate value from its technology spending and innovation. In today’s fast-evolving reality, where the pace of change continues to accelerate, businesses also need to consider the ultimate “cost” to the business of not innovating and transforming in ways that can support future growth and competitiveness. Digital leaders are showing the way and there is no time to lose in the race to innovate and adapt at the speed of the market.

The excerpt was taken from the KPMG Thought Leadership publication: https://assets.kpmg/ content/dam/kpmg/xx/pdf/2021/06/future-ofit-dynamic-investment.pdf

Gilbert T. Trinchera is the technology consulting partner of KPMG R.G. Manabat & Co. (RGM&Co.), the Philippine member-firm of KPMG International. Trinchera could be reached via ph-kpmgmla@kpmg.com and/or www.home. kpmg/ph. This article is for general information purposes only and should not be considered professional advice to a specific issue or entity. The views and opinions expressed herein are those of the author and do not necessarily represent KPMG International or KPMG in the Philippines and the BusinessMirror.

Editor: Dennis D. Estopace

IF the government is looking for a way to raise much-needed revenues, Ibon Foundation Inc. said creating the Maharlika Investment Fund (MIF) would not be the best way to do it.

What is ethical animal research? A scientist and veterinarian explain

By Lana Ruvolo Grasser, National Institutes of Health & Rachelle Stammen, Emory University The Conversation

Aproposed measure in sw itzerland would have made that country the first to ban medical and scientific experimentation on animals. It failed to pass in February 2022, with only 21 percent of voters in favor. Yet globally, including in the United st ates, there is concern about whether animal research is ethical.

We are scientists who support ethical animal research that re duces suffering of humans and animals alike by helping research ers discover the causes of disease and how to treat it. One of us is a neuroscientist who studies behav ioral treatments and medications for people with post-traumatic stress disorder—treatments made possible by research with dogs and rodents. The other is a veterinarian who cares for labora tory animals in research studies and trains researchers on how to interact with their subjects.

We both place high impor tance on ensuring that animal research is conducted ethically and humanely. But what counts as “ethical” animal research in the first place?

The 4 R’s of animal research There is no single standard defi nition of ethical animal research. ho wever, it broadly means the hu

mane care of research animals— from their acquisition and hous ing to the study experience itself.

Federal research agencies fol low guiding principles in evaluat ing the use and care of animals in research. One is that the research must increase knowledge and, ei ther directly or indirectly, have the potential to benefit the health and welfare of humans and other animals. Another is that only the minimum number of animals required to obtain valid results should be included. r e search ers must use procedures that minimize pain and distress and maximize the animals’ welfare. They are also asked to consider whether they could use nonani mal alternatives instead, such as mathematical models or computer simulations.

These principles are summa rized by the “3 r ’s” of animal research: reduction, refinement and replacement. The 3 r ’ s en

courage scientists to develop new techniques that allow them to re place animals with appropriate alternatives.

Since these guidelines were first disseminated in the early 1960s, new tools have helped to significantly decrease animal re search. In fact, since 1985, the number of animals in research has been reduced by half.

A fourth “ r ” w as formalized in the late 1990s: rehabilitation, referring to care for animals after their role in research is complete.

These guidelines are designed to ensure that researchers and regulators consider the costs and benefits of using animals in re search, focused on the good it could provide for many more an imals and humans. These guide lines also ensure protection of a group—animals—that cannot consent to its own participation in research. There are a number of human groups that cannot con sent to research, either, such as infants and young children, but for whom regulated research is still permitted, so that they can gain the potential benefits from discoveries.

Enforcing ethics

Spec I FI c g uidelines for ethi cal animal research are typically established by national govern ments. Independent organiza tions also provide research stan dards.

In the US, the Animal Welfare Act protects all warmblooded ani mals except rats, mice and birds bred for research. r a ts, mice and birds are protected—along with fish, reptiles and all other ver tebrates—by the p u blic h e alth Service po licy.

e a ch institution that conducts animal research has an entity called the Institutional Animal c a re and Use c o mmittee, or IA

c U c . T he IAc U c is composed of veterinarians, scientists, nonsci entists and members of the pub lic. Before researchers are allowed to start their studies, the IA c U c r eviews their research protocols to ensure they follow national standards. The IAc U c also over sees studies after approval to con tinually enforce ethical research practices and animal care. It, along with the US Department of Ag riculture, accreditation agencies and funding entities, may conduct unannounced inspections.

Laboratories that violate stan dards may be fined, forced to stop their studies, excluded from re search funding, ordered to cease and desist, and have their licenses suspended or revoked. Allegations of misconduct are also investi gated by the National Institutes of h e alth’s Office of Laboratory Animal Welfare.

Above and beyond the basic national standards for humane treatment, research institutions across 47 countries, including the US, may seek voluntary ac creditation by a nonprofit called the Association for Assessment and Accreditation of Laboratory Animal c a re, or AAALA c Inter national. AAALAc a ccreditation recognizes the maintenance of high standards of animal care and use. It can also help recruit scientists to accredited institutes, promote scientific validity and demonstrate accountability.

Principles in practice

S O w hat impact do these guide lines actually have on research and animals?

First, they have made sure that scientists create protocols that describe the purpose of their re search and why animals are nec essary to answer a meaningful question that could benefit health or medical care. While computer

models and cell cultures can play an important role in some re search, others studies, like those on Alzheimer’s disease, need ani mal models to better capture the complexities of living organisms. The protocol must outline how animals will be housed and cared for, and who will care for and work with the animals, to ensure that they are trained to treat animals humanely.

During continual study over sight, inspectors look for whether animals are provided with housing specifically designed for their spe cies’ behavioral and social needs. For example, mice are given nest ing materials to create a comfort able environment for living and raising pups. When animals don’t have environmental stimulation, it can alter their brain function— harming not only the animal, but also the science.

Monitoring agencies also con sider animals’ distress. If some thing is known to be painful in humans, it is assumed to be pain ful in animals as well. Sedation, painkillers or anesthesia must be provided when animals expe rience more than momentary or slight pain.

For some research that requires assessing organs and tissues, such as the study of heart disease, ani mals must be euthanized. Vet erinary professionals perform or oversee the euthanasia process. Methods must be in compliance with guidelines from the Ameri can Veterinary Medical Associa tion, which requires rapid and painless techniques in distressfree conditions.

Fortunately, following their time in research, some animals can be adopted into loving homes, and others may be retired to ha vens and sanctuaries equipped with veterinary care, nutrition and enrichment.

Continuing the conversation

A N IMAL r esearch benefits both humans and animals. Numerous medical advances exist because they were initially studied in ani mals—from treatments for cancer and neurodegenerative disease to new techniques for surgery, organ transplants and noninvasive im aging and diagnostics. These advances also benefit zoo animals, wildlife and endan gered species. Animal research has allowed for the eradication of certain diseases in cattle, for example, leading not only to re duced farm cattle deaths and hu man famine, but also to improved health for wild cattle. h e alth care advances for pets—including can cer treatments, effective vaccines, nutritional prescription diets and flea and tick treatments—are also available thanks to animal research.

p e ople who work with ani mals in research have attempt ed to increase public awareness of research standards and the positive effects animal research has had on daily life. h o wever, some have faced harassment and violence from anti-animal research activists. Some of our own colleagues have received death threats.

Those who work in animal re search share a deep appreciation for the creatures who make this work possible. For future strides in biomedical care to be possible, we believe that research using ani mals must be protected, and that animal health and safety must always remain the top priority.

This article is republished from The Conversation under a Creative Commons license. Read the original article here: https://theconversa tion.com/what-is-ethical-animalresearch-a-scientist-and-veteri narian-explain-190876.

Chernetskaya Dreamstime. C o m

The coronavirus chronicles: Five shoppers redeFining reTail in asia Today

WITH Christmas, just 20 days ahead, ‘tis definitely the time to go shop ping for all those on your list, as well as yourself and the traditional Christmas dinner.

Many retailers are happily on the rebound after two years of Covid lockdowns, and looking for ward to what they term the holy grail of 2019 sales.

By Millie F. Dizon

But have customers changed over the past two years? Defi nitely, as retail experts the Blue bell Group discovered in a survey earlier this year. For this, they interviewed 2,100 Asian shop pers—aged 18 to 45 years old— across several different markets. To participate, respondents had to have registered a EUR 1,200 (US 1221) minimum spend on lifestyle products in the previous 12 months.

Here’s what they found out:

n Asian consumers remain increasingly interested in niche brands that fewer people know about, but offer great style and quality.

n Second-hand products are also slowly winning over with con sumer openness across all markets

n Demand for brand experi ences—through events, tech, en tertainment, and gaming contin ues to grow n Points of difference in Asia were seen in the interest in home entertainment and home-spa products

n Interest in products associ ated with a healthy and active lifestyle is down overall in Asia Summing all these up, Vinny Halo invites us to Meet the Five Asian Consumer Types Redefin ing Retail in 2022 in an article in Retail in Asia, which is also part of the Bluebell group.

It will be good for brands and retailers to keep these in mind as they strategize and plan their programs. But as Christmas grows nearer, do enjoy your shopping.

n the e xperientialist E X PERIENTIALISTS w ant a full immersion experience from

easy for SMEs to build their presence in and out of social media by giving them the ad vantage of working with one of the best teams of creatives that offers a vast range of spe cializations.

brands when it comes to shopping. From culture to entertainment and content, experientialists want to feel part of a brand’s universe, whether it be through events, technology, and entertainment and gaming elements.

The interest in experiential re tail is strong in Asia with 87 per cent of shoppers saying they would choose a new premium or lifestyle brand that offers immersive expe riences in retail.

However, not all brand experi ences in Asia are seem as equal. Attitudes are divided when it comes wanting to feel a brand’s universe, including subscriptions to a brand’s newsletter, Insta gram, or WeChat account, which offer consumer personalization through these channels.

n the neophilist T HE s earch for originality is in creasingly on the rise across Asia, as maturing consumers take more “risks” in their consumer choices. And that is seeing a rise in the Neophilist: those shoppers drawn to originality, including niche brands, mix and matched styling, and the pre-owned market when shopping for luxury.

It also seems Asia shoppers across the board are more inter ested in second-hand luxury than

last year.

n the traditionalist U NL I k E t he neophilist or niche perception of luxury, traditional consumers look for classic items and experiences when it comes to big names, in-store customer service, and increased status from purchases.

This year, some 84 percent of Asian consumers say the reputa tion of a premium or lifestyle brand is key with China leading the way. According to Bluebell, in-store shopping for luxury remains popular, with 80 percent of Asian shoppers enjoying the human ex perience by luxury sales associ ates. Across the board, shoppers believe that categories like jew elry and watches require in-store shopping compared to shopping for beauty which is more likely to be done online.

n the idealist I DEALISTS a re all about attaining the ideal when it comes to shop ping. They want to feel good about their purchases and seek brands that offer responsibly sourced products, in addition to promot ing good ethics and values.

According to Bluebell, over 80 percent of Asian consumers in all markets (except Japan at just 62

percent) agree that they will make sure a brand’s products are respon sibly sourced.

However, as Halo points out, the majority of consumers—83 percent in Taiwan, 81 percent in China, and 79 percent in South k ore a—believe that the lifestyle promises a brand offers are more important than if their products are natural or sustainable.

Moreover, over two-thirds of consumers said that sustain ability would not be in their top 3 decision making factors when purchasing premium brands, with Taiwan and Hong k on g caring the least about sustainability, the re port showed.

n the comfort-me-ist C O MFORT M E I STS p ay atten tion to clean and natural options when shopping, which Halo says is a bid to feel healthier and more comfortable in a post-Covid world.

From the house to the body, some 84 percent of Asian shoppers surveyed said they want to spend more on products that let them enjoy a healthier and more active lifestyle with Chinese shoppers leading the way.

Interestingly, all markets sur veyed except for Southeast Asia and Hong k o ng registered less interest in healthier lifestyle al

ternative in 2022, compared to the same markets surveyed by Bluebell in 2021. The interest in home spa essentials, except Japan and China, registering a drop in the desire to spend time at home and relax.

However, Halo notes, respon dents are increasingly interested in “natural choice” brands, be it in ingredients or fabric with China at the forefront.

Gourmet food, and in particular premium chocolates, also emerged a high point of interest among respondents among Asia, mostly for self-consumption—although respondents from Hong k o ng and Taiwan focused more of gifting, the survey says.

PR Matters is a roundtable col umn by members of the local chap ter of the United Kingdom-based International Public Relations As sociation (Ipra), the world’s premier association for senior professionals around the world. Millie Dizon, the senior vice president for Marketing and Communications of SM, is the former local chairman.

We are devoting a special column each month to answer the reader’s questions about public relations. Please send your comments and ques tions to askipraphil@gmail.com.

MANILA, PHILIPPINES—

Starting a new business en deavor can be an exciting yet challenging process. How ever, with the right partners, small and medium enterpris es (SMEs) can open the right doors and unlock tremendous opportunities for growth and success.

As a former start-up, XS Multimedia (XSM) understood how tough it can be to break barriers and achieve one’s busi ness goals. Through #brutal lycreative work, XS Multime dia has grown into one of the leading advertising and multi media agencies in the Philip pines and Asia Pacific. Now, XS Multimedia has returned to its roots and opened its doors to SMEs.

XS Multimedia has made it

XSM provides clients with complete services, including brainstorming for innovative ideas, creative execution, to post-production. The artistry is crafted in a way that speaks on both ends, where brand ing meets style and innova tion found through next-level results.

XSM has worked with some of the most prestigious brands in the Philippines and across Asia. The agency’s clien tele includes Amazon, Globe, Loacker, Rebisco, and Rim mel London. Now, SMEs can take advantage of the agency’s services to take their market ing and branding efforts to the next level.

For SMEs, specifically, XSM now offers data-driven social media packages: Get Seen, Get Noticed and Get Attention. The Get Seen package includes content creation, community management, XSM marketing,

and social media marketing. Meanwhile, the Get Noticed package includes all this, plus product photography. Get At tention, on the other hand, has extra inclusions like videogra phy, TikTok content creation, and PR. These offerings are tailored to the needs of busi nesses with a limited budget but big dreams.

n g lobe’S 917Venture S, ayala co rp. to bring g ogoro’S l eading ‘S M ar t S cooter’ and battery-S wapping technology in phl MANILA, PHILIPPINES— Globe’s 917Ventures and Ayala Corporation have announced a partnership to bring global two-wheel electric vehicle and battery-swapping technology leader Gogoro to the Philip pines.

Piloting in Metro Manila in Q1 2023, Gogoro’s Smart scooters will serve as an ecofriendly alternative to fossil fuel-powered vehicles currently used by the logistics and lastmile delivery industry. Gogoro Smartscooters are powered by Gogoro’s battery-swapping

platform through conveniently located swap stations, where users can quickly swap deplet ed batteries for fully-charged ones in seconds.

Vince Yamat, 917Ventures managing director, said the partnership seeks to reduce the use of fossil fuel by the coun try’s logistics industry which is known to release significantly more emissions per vehicle per day than consumer riding.

“We are committed to help ing address the climate crisis by introducing Gogoro to logis tics businesses, helping them in their sustainability efforts. In addition, because of the Swap & Go technology that enables riders to be fully charged in just seconds, we hope Gogoro will also help address hesita tions surrounding charging electric vehicles and even find ing parking slots. Hopefully, this technology will encourage more Filipinos to switch to EV,” Vince said.

Jaime Alfonso Zobel de Ayala, Ayala Corporation’s head of business development and innovation, meanwhile, said, “Ayala supports the De partment of Energy’s thrust

to transition towards cleaner technologies. We are excited to contribute to a high-quality consortium focused on enhanc ing mobility through sustain able solutions, which aligns with our broader decarboniza tion and digital transformation ambitions.”

Patrick Aquino, director of the Department of Energy’s Energy Utilization Manage ment Bureau, said Taiwan has an incredibly high scooter den sity compared to the rest of the world, and it’s very encourag ing to see its positive response to the Gogoro Network.

“More than 25% of their quick commerce deliveries and almost all of their electric de liveries are powered by batteryswapping technology, and we see this solution will be most beneficial to a densely popu lated region like Metro Ma nila, which is also the hub of business districts. The success of this pilot will pave the way for a new sustainable business model in other cities in the country as well,” he said, add ing that the Philippines can learn from Taiwan’s experience.

Meanwhile, Department

of Trade and Industry Under secretary Rafaelita Aldaba noted how the project aligns with the government’s devel opment agenda by supporting both digitalization and climate action. “Our country needs innovative tech-led projects that support climate action. I commend 917Ventures, Globe, and the Ayala Corporation for always being at the forefront of change-making initiatives that aim to improve the lives of Fili pinos while helping protect the environment,” said the Under secretary.

Chuan-Neng Lin, vice minis ter of the Ministry of Economic Affairs in Taiwan, also added, “Gogoro’s leadership in battery swapping, vehicle design, and innovation has transformed two-wheel mobility in Taiwan and fostered a new smart mo bility industry of eco-friendly businesses and end-users. We look forward to businesses and riders in the Philippines experiencing the benefits of Gogoro’s smart mobility like we have in Taiwan. Together with Gogoro, we can all reach our net-zero carbon emissions goals.”

PR Matters

Republic Cement sweeps 68th Presidential Mineral Industry Environmental Awards

Solaya Lipa dazzles Lipa City as it kickstarts Christmas celebration with tree lighting ceremony

ADDING yet another gem to the progressive Batangas, Solaya Lipa kickstarted the holiday season with its first ever Christmas Tree Lighting ceremony.

A 25-foot Christmas tree dots the sky of the area while its thousands of silver twinkling lights cascade beautifully to its grounds. This grand celebration is a steady progression to the new normal way of going about our holidays—with caution but with the undeniable Filipino warmth.

The number 25 holds a special significance as Taft Properties, the real estate developer behind the high-end, iconic and forward-thinking residential condominiums in Cebu, celebrates its silver anniversary with multiple grand Christmas tree lighting ceremonies across the country.

This event is also one of the highlights of Barangay Tangway’s festivities. The area welcomed Solaya Lipa earlier this year. The developing gated community offers twostorey residential homes with lot sizes ranging from 100 to 200 sq.m. for the discerning homeseekers who like to get away from the buzz of the city. Its living spaces are expandable so homeowners can make their home their own piece of paradise everyday.

The solihiya—a rattan weaving technique—architectural accent makes these homes truly distinctive. While the color palette and overall look hail back to traditional Filipino design, it also has a new normal home feature like sanitation bench where homeowners can disinfect their items before fully entering their family’s living area. This is just one of Taft Properties’ signature brand of purposeful home ideas, what they call Crafted Comforts. Through many years, they have fashioned these little features that make up more than the sum of all its parts. These

enable Taft Properties to give more value to the living experience of its homeowners. This come in the form of lower light switches and toddler handrails for the convenience of kids and people with limited mobility, door closer and lever-type door handles for easier and quieter access, and other toilet and bath features that are oftentimes overlooked or scrimped on.

The homes are also instinctively designed to welcome light and the cool Lipa climate for a naturally relaxing vibe. Lipa City boasts of cooler climate because of its elevation of a little over 1,000 feet above sea level—that puts it behind Tagaytay City and Baguio City. The mountains Maculot and Malarayat shield the city from natural disasters. This makes Lipa City one of the best home options outside of Metro Manila.

This three-hectare project offers a quiet, low-density neighborhood with open spaces and tree-lined roads where one can soak up the sun and experience an elevated home life—just as the name of the community suggests. Solaya is a combination of the words sol or sun in Spanish, and ilaya or northern/upper part in Batangueño.

Taft Properties is one with the Filipinos in securing homes that truly feel like theirs. They deliver Filipino homeseekers the Total Taft Quality hallmarks of world-class architecture and engineering; zero-defect home handover; and delightful customer journey from start to finish. From Cebu to Luzon, for its 25th anniversary, homeseekers have a host of payment options and promos that can make the goal of owning a home achievable. Taft Properties is the real estate development arm of VicSal Group of Companies of the retail giant Gaisano family. For inquiries on Solaya Lipa, contact 0939.914.8501 or visit taftproperties.com.ph.

REPUBLIC Cement bagged major honors, taking home a total of seven awards at the prestigious 68th Presidential Mineral Industry Environmental Awards (PMIEA) held last November 18, 2022, at the CAP-John Hay Trade and Cultural Center in Baguio City.

Hosted by the Department of Environment and Natural ResourcesMines and Geosciences Bureau (DENR - MGB), the awards ceremony recognized companies that performed admirably in terms of environmental preservation and safety excellence. This year’s theme was “Resilience, Reset, Recovery,” highlighting the important role that the mining industry plays in economic development and safeguarding the environment through responsible mining.

At this year’s awards, Republic Cement dominated the Quarry Operations (NonMetallic) Category, winning the Presidential

Further to these achievements, the proudly local cement manufacturer’s Batangas Plant was recognized for having the Safest Mine (Non-Metallic). For Best Mining Forest (Non-metallic), Republic’s Bulacan Plant won the top prize with its Iligan Plant winning second runner-up for the same category.

“The awards we have received this evening serve not only as recognition for our practices and commitments towards our communities and sustainable development, but also as a challenge to do even more in promoting the responsible management of environmental and natural resources,” Republic Cement & Building Materials President Lloyd

Founded in 1955, Republic Cement celebrates 67 years of being a partner for Philippine transformation as a building materials company and key contributor to nation building. Republic Cement proudly supplies quality cement, with brands including REPUBLIC, FORTUNE, RapidSET, Kapit-Balay, MINDANAO, and wallMASTER, manufactured at seven strategically located sites across the Philippines.

“Throughout our 67 years of service towards building the nation, Republic Cement has always been deeply and wholly committed to responsible mining,” said Republic Cement CEO Roman Menz. “It is through responsible mining and our daily commitment to safety and sustainability that we are able to support robust communities and a thriving environment, towards a greener and Stronger Republic.”

Global provider Sitel Group® receives prestigious award for leadership, sustainability efforts in Asia-Pacific Region

SITEL Group®, one of the largest global providers of customer experience (CX) products and solutions, was recently recognized at the Asia Corporate Excellence & Sustainability (ACES) Awards with not just one but two honors.

Sitel® Philippines was among the Top Workplaces in Asia this year for its sustainability program while Chief Operating Officer for Asia Pacific, Ravi Iyengar, was named one of the Outstanding Leaders in the region.

Positioned as the most prestigious award-giving body in Asia, the ACES Awards recognize inspiring individuals and companies in the domain of leadership and corporate and social responsibility efforts. They cast a spotlight on the valuable contribution of businesses — large and small, national, and international — to their communities and the world.

At the helm of driving business growth, Iyengar had faced tough challenges, particularly during the height of the Covid-19 pandemic and the acquisition of Sykes Enterprises, Inc., but was able to double the manpower of Sitel® Philippines from 20,000 to 40,000. Under his leadership, Sitel® Philippines continues to adapt and thrive in the new normal, all the more boosting the global company's presence in the region.

Since launching in the Philippines in 2000, Sitel Group® has seen exceptional growth and expansion, currently operating in 17 sites across the country. Anchored on its employee value proposition of Learn, Lead & Grow, Sitel® Philippines believes that its success is built on talents. It continues to invest in its people’s growth via internal talent programs and support growth initiatives via track training, coaching and mentoring.

According to Pam Donato, Vice President for HR - Philippines & China, being recognized as one of the Top Workplaces in Asia for 2022 validates the company's efforts

in ensuring Filipinos have a workplace that nurtures inclusivity, diversity, growth and engagement.

“The recognition inspires us to double our efforts in creating a working environment where opinions are respected and everyone celebrates each other's differences,” Donato said.

Sitel® Philippines is currently looking at establishing an Employee Resource Group for associates with disabilities, as well as a more robust Diversity, Equity, and Inclusion program for its employees. The company is also strengthening its Environmental, Social & Governance (ESG) program

The ACES awards came at the heels of two milestones for Sitel® Philippines. In the 2022 Asia CEO Awards, Sitel Group® took the highest honor as a Circle of Excellence Awardee in the Top Employer of the Year section. In addition, the company also earned its employees’ thumbs up with an impressive employee net promoter score in a recent engagement survey conducted. The results recorded more than 38 percent increase from its 2021 score with over 90 percent of its 40,000 workforce participating in the said survey. These further underscore that Sitel Group® demonstrates impressive results in the areas of management, workplace enhancement and engagement, talent development and social commitment.

wellness, including healthy skin.

This fitness activation took place in four different boutique fitness studios: Electric Studio for that cardio fix, ONELIFE Private Studio to elongate the body, Polecats to learn how to move confidently, and now Rebel to lean in and discover that well of inner strength. Each event was met with excitement from present content creators and members of the media, especially those who hadn’t done the chosen activities before. Because there were four different studios, each with different exercises, Cetaphil was able to provide a variety of experiences.

Cetaphil encouraged everyone to get fit in the name of holistic health, after which a full wash with Cetaphil Ultra Protect was encouraged because Cetaphil knows that the skin is the first line of defense against germs; hence it is necessary to make it as fit as the body.

Bodies were sweating in full force, muscles were pushed to the limit, and endorphins reached an all-time high, all

in time to try Cetaphil Ultra Protect and to see the importance of having a clean, moisturized body.

Cetaphil Ultra Protect is a cleansing bar that combines the benefits of wider germ protection with gentle yet intense skin hydration.

There are no compromises with its 3D Derma-Mimic Technology that cleanses the skin at an antimicrobial level with a dermatological tried-and-tested formulation, which repairs the skin barrier’s defense against water loss.

It washes away 99.9 percent of germs and is specifically designed for frequent daily use, preventing and soothing skin irritation. The skin is now instantly protected and hydrated.

As the holidays are coming up and it is once more time to see friends and family, now more than ever, it is time to #BeUltraProtected with Cetaphil Ultra Protect.

The new Cetaphil Ultra Protect Antimicrobial Cleansing Bar is available at the official Cetaphil Philippines stores in Lazada and Shopee. You can also find Cetaphil products at Mercury Drug, Watsons’ stores, and supermarkets nationwide.

CETAPHIL celebrated the launch of Cetaphil Ultra Protect with the LevelUp Series to advocate the importance of whole-body

Level up the importance of whole body wellness, healthy skin with the new Cetaphil Ultra Protect

Mineral Industry Environmental Awards for its Batangas, Iligan, and Teresa Plants. The Platinum Achievement Award for the same category was also awarded to Republic Cement Bulacan Plant.

Vicente shared in his acceptance speech.

THE Republic Cement Team stands proudly at the recently held 2022 Annual National Mine Safety and Environment Conference. The team shows off its seven awards, including the Presidential Mineral Industry Environmental Awards (PMIEA) for Quarry Operations for its Batangas, Teresa, and Iligan Plants, the highest honor for excellence in responsible mining conferred by the Department of Environmental & Natural Resources (DENR).

From left, Sitel Group® VP for HR – Philippines & China Pam Donato, and VP for Operations Eden Gutierrez received the Top Workplace and Outstanding Leader awards on behalf of Sitel Group® and COO for APAC Ravi Iyengar on November 18 at Kuala Lumpur, Malaysia

Filipino Barong x Wastra Indonesia: Interwoven Threads

‘NOT JUST A fASHION Br ANd THAT dOES HOME ITEMS’: fENdI CASA OPENS BGC SHOwrOOM

By Jt Nisay

STRAIgHT from a flight and sharp in his suit, Fendi Casa CEO Alberto Da Passano made one thing clear during the recent media launch of the brand’s showroom in Bonifacio global City in Taguig.

“We don’t want to be known as a fashion brand with a few pieces of home collection and accessories,” said the executive of the home line of high-end Italian fashion house Fendi. “We are set up as a player in the furniture business.”

It’s a statement that Da Passano delivered not just to the Filipino market, but to the European brand’s wider audience in this side of the world. Fendi Casa’s newly launched 220-square-meter space at Twenty-Four Seven McKinley in BgC counts as its first showroom in Asia and only its third alongside the ones in Milan and Miami.

Crediting the Filipino’s deepening affection for luxury fashion and interior design as the reason behind their location selection, the Fendi Casa CEO added that their new space aims to unite fashion, architecture, craftsmanship and design in a masterful and immersive experience.

Housed in the Fendi Casa showroom are seven rooms that present iconic pieces of the new collection. Every showcased piece is designed by a community of established international designers and architects, selected by the brand’s creative director Silvia Venturini Fendi.

Among the featured items in the new showroom are atelier oï’s Fun FENDI seating system, Marcel Wanders Studio’s Five sofa and armchairs, Toan Nguyen’s Marrakesh coffee tables and Sandia sofa and armchairs. There’s also the Ford dining table and Doyle chairs, both designed by FENDI Casa Design Studio, and Thierry Lemaire’s Parsifal sofa and armchairs.

The opening of Fendi Casa’s showroom in the Philippines, through the exclusive distribution by home lifestyle retailer Focus global Inc., aligns with the global vision from the partnership formed last year between Design Holding and FENDI, which formed Fashion Furniture Design (FF Design).

The Fendi Casa Manila showroom is located at the 10th floor of Twenty-Four Seven McKinley Building, 24th Street Corner 7th Avenue at McKinley Parkway in Bonifacio global City, Taguig. More information is available via 8705-9999 or www.fendicasa.com/en.

TO cherish the friendship and value the kinship through cultural awareness and appreciation between the Philippines and Indonesia, the two neighboring nations held a high-fashion event at the Metropolitan Theater on November 21. Called

Threads and Patterns of Kinship by the National Commission for Culture and the Arts (NCCA) and the Indonesian Embassy in Manila, in partnership with The Met.

The event featured two of the best designers from each country. Indigenous and spiritual art-wear master Steve de Leon presented his unique, sculptural renditions of local textiles.

Indonesian Didi Budiardjo of Indonesia, who is renowned for his handcrafted couture creations, showed his witty interpretations of the Maria Clara and the baro’t saya.

Batik Chic, the brand of Indonesian designer Novita Yunus, and Barong Batik, the brainchild of Filipino expat Freddy Mercado, which applies the ageold customary process of Indonesian Batik technique to Philippine “jusi,” as well as ready-to-wear Barong brand Onesimus, also showcased their collections.

“The program is the first activity under the Memorandum of Understanding on Cultural Cooperation between the Philippines and Indonesia signed last September 5, 2022 [in Jakarta, Indonesia].

It is interesting that this maiden offering is a fashion show, featuring the most esteemed among the costumes of our countries: the barong for the Philippines, and the Wastra Indonesia,” says NCCA chairman Dr. Rene R. Escalante in his welcome speech.

Both countries uphold a long tradition of preserving their indigenous tradition in textiles and fashions. In the Philippine case, chairman Escalante noted as an example the earliest surviving depiction of native costume can be found in the famous Boxer Codex, a nearly 500-year-old manuscript which

illustrated the ethno-linguistic groups in the country, as well as of our Pacific neighbors.

The signing of the MOU set the tone on how both countries should strengthen the bridge that connects their people and leverage cultural diversity. It also coincides with the 73rd anniversary of IndonesiaPhilippines Diplomatic Relations, which falls on November 24.

“Understanding one’s culture promotes respect and tolerance that can sort out cultural differences. Thereby, harmonious co-existence is at hand. This show wants to reflect that special bond between two nations just like the interwoven threads that were beautifully and securely fastened. We hope that Indonesia and the Philippines can withstand the test of time,” H.E. Ambassador Agus Widjojo of Indonesia noted in his response.

“Clothing is one of the cultural expressions. Fashion has always been derived from culture. The

clothes we wear tell stories of our culture and our heritage. That’s how clothes strongly communicate. Tradition also plays an important role in the creation of these cloths in the sense that the materials, the motifs, the process are all culture-based,” added Ambassador Widjojo.

Filipino Barong—Wastra Indonesia: Threads and Patterns of Kinship, directed by Cata Figueroa Jr., is the first fashion show at The Met since it reopened its doors. It also showcased musical performances from Indonesia’s Al Azhar Junior High School Angklung Ensemble and Male Ensemble Philippines.

“I hope that, given the mutual importance we give to our clothing and textile heritage, the Barong and the Wastra Indonesia will also serve as a symbol of our common race, our common history, and our common aspirations—indeed, the ties that bring together our two kindred countries, the Philippines and Indonesia,” expressed chairman Escalante. n

Practical holiday gifts for beauty enthusiasts

CNd Solar oil aNd ReSCuerxx daily keRAtin tReAtment

I HAVE been using these two products for months and I can tell you how nourishing they are. One of my pet peeves is seeing my ragged cuticles and the Solar Oil really helps with that. I am also very prone to hang nails so I apply these two nail products twice day to prevent those.

I AM always asked by people about what beauty gifts they can give family members and friends for the holidays and I often suggest that, depending on their budget, they can always create a box that would include a number of products. For instance, if the recipient is someone who loves lipsticks, the giver can include mini lipsticks in the box. That way, the person can try several shades and finishes.

So here are some of my beauty gift suggestions:

The BeauTy ediTed VaulT Vol. 9

THE Beauty Edit is a beauty resource and community created by former magazine editor Nicole Morales, who curates boxes that include some of her favorite beauty, health and wellness products. Volume 9 includes products from The Beauty Edit Honor Roll 2022 valued at over P20,000.

You can get the Vault, which comes in beautiful pink bag and includes a magazine edited by Nicole, for P5,895. Shiseido, Cle de Peau Beaute, Make Up For Ever, Puressentiel, Happy Skin, Parlon, Sunnies Face, Gucci and MCM are only some of the brands whose products you can get from the Vault, which you can buy at bit.ly/3Burnen.

AvedA holidAy collection

SOME of the best holiday gifts I received in 2021 were items from Aveda’s Holiday Collection. Aveda is a vegan hair care brand. The collection included the comb and turban from the brand’s collaboration with 3.1 Phillip Lim.

The Aveda x 3.1 Phillip Lim 2022 holiday collection includes four limited-edition accessories—a hair scarf, shower cap, cosmetic bag and mini paddle

brush—as well as special-edition gift packaging, all featuring striking prints exclusively designed for the Aveda x 3.1 Phillip Lim holiday collection inspired by a mutual love of nature.

The luxurious yet sustainability-minded gift boxes were created to enhance gift-giving, and don’t require additional wrapping paper. I already have the paddle brush from last year’s collection but the new mini one and the scarf are my favorites from this year. You can find Aveda’s products in an assortment of sets. I love the nutriplenish light moisture treatment duo and hair scarf (P3,600), which includes the nutriplenish leave-in conditioner, nutriplenish treatment masque: light, and Aveda x 3.1 Phillip Lim hair scarf. You can get Aveda from their SM Mall of Asia store and their LazMall Flagship Store (bit.ly/3XW7ztA).

nARS PoweRmAtte liPStick NOT to be mistaken with the NARS Powermatte Lip

Pigment, which is a liquid, the Powermatte Lipstick promises to stay on for 10 hours (it does) without drying your lips excessively. I have this in the shades Too Hot To Hold (a maple red) and American Woman (a dusty rose). This glides on smoothly and dries to a lightweight finish, which really stays on for hours.

A second layer will emphasize the texture of your lips, which is understandable because it is a matter lipstick. It’s slightly drying, which is expected, but the dryness isn’t uncomfortable at all. It doesn’t transfer and it won’t stain your teeth. Since the pandemic, I have avoided matte formulations in favor of something more hydrating lipsticks but the NARS Powermatte Lipstick is an exception.

Next, I want to try Dragon Girl (a vivid red that was made popular by Taylor Swift) and Mogador (a brick red). You can get this from Rustan’s and the NARS LazMall Flagship Store (s.lazada.com.ph/s.gVZUY ) for P1,650.

So I went to Boracay recently and I didn’t bring the Solar Oil (I use this at night) and RescueRxx Daily Keratin Treatment (for day). When I came back, my cuticles were horrible when I came back. The RescueRxx Daily Keratin Treatment has jojoba oil and keratin protein to help damaged nails, while the Solar Oil has light oils and jojoba oil to protect skin and nails. You can get both products here (bit.ly/3iu0IaJ ).

FRezydeRm SuN SCReeN Color VelVeT SeCoNd SkiN TeChNology SPF From SheenA’S choice

I WAS sent this TikTok viral product last month and I really love it. On good-skin days, I can go out with just this and lipstick on my face. Sheena’s Choice is a selection of products curated by beauty specialist Dr. Sheena Joyce Bautista Angeles, a certified aesthetic physician and CEO of Sheena’s Choice Skincare and Beauty. Sheena’s Choice was born during the pandemic with Angeles using social media to market her products as clinics were not allowed to open because of the lockdowns. I also tried the Sheena’s Choice Azelaic + Niacinamide Cream, which I loved. Sheena’s Choice Skincare and Beauty offers home service to its clients.

Angeles also invested in various machines, which can be brought to the homes of patients. She also caters to those living outside Metro Manila. One of the treatments she offers is Ultherapy, a nonsurgical ultrasound technology used to kickstart collagen production and tighten skin.

“Ultherapy is the gold standard for non-invasive skin lifting and tightening,” said Dr. Stephen Claudio, the medical affairs manager of Merz Aesthetics. It would be nice to gift a loved one with a pampering session at home. More information is available at www.sheenaschoiceofficial.myshopify.com or www.facebook. com/sheenaschoiceofc.

BY JULIANA MAXINE VASQUEZ

curated by Dr. Sheena Angeles

DIDI BUDIARDJO PHOTOS BY PAUL SUGANO STEVE DE LEON

SANDIA seating system by Toan Nguyen

HIDILYN DIAZ-NARANJO has adjusted to the cold weather and thin Colombia air four days before she goes for her first world weightlifting championships gold medal.

Team HD arrived Friday (Manila time) in the capital Bogota, which sits on the Andes Mountain Range more than 8,000 feet in elevation with temperature in the vicinity of 10 degrees Celsius.

“ It’s quite difficult to train here because of the high altitude, the air is thin, we gasp for breath during lifting and training,” the Tokyo Olympics gold medalist told BusinessMirror via voice message Sunday. “But we already adjusted so far.”

D iaz-Naranjo flew in from a more than two-week training camp at the Grace Performance Gym in Georgia in the US with Team HD—husband and coach Julius Naranjo, assistant trainer Rowell Garcia, sports psychologist Dr. Karen Trinidad and sports nutritionist Jeaneth Aro.

She’s back as the No. 2 seed in the women’s 55 kgs—the same division where she won the Olympic gold— despite the sudden withdrawal of Kazakhstan’s Zulfiya Chinshalo, the bronze winner in Tokyo.

D iaz-Naranjo submitted an entry weight of 210 kgs, the same weight of new No. 1 seed Rosalba Estela Morales del Aguila of host Colombia submitted for the 55-kg event set on Thursday (Manila time).

“I haven’t seen the start list but I expect a lot of competitive weightlift ers especially from Mexico, but we will be ready,” said Diaz-Naranjo, who has won in the Olympics, Asian Games and Southeast Asian games but never in the world championships.

R io de Janeiro Olympian Nestor Co lonia (55 kgs), John Febuar Ceniza (61 kgs), Dave Lloyd Pacaldo (67 kgs), Asian champion Vanessa Sarno and Kristel Macrohon (71 kgs), Rosegie Ramos and Lovely Inan (49 kgs) and Elreen Ann Ando (59 kgs) and coaches Richard Pep Agosto and Ramon Solis are also in Bogota, the first of six qualifiers for weightlifting in the Paris 2024 Olym pics. Josef Ramos

Arcilla books double in Brookside tourney

JOHNNY ARCILLA

rode a pair of fiery starts to overwhelm Charles Kinaad man, 6-2, 6-4, and capture the singles crown in the Brookside Open National Tennis Championships at the Brookside Hills courts in Cainta, Rizal, late Saturday.

The Davis Cup veteran broke Kinaadman in the opening game of each set, cruising to victory in the first then thwarting his 24-year-old rival in the next to fashion out the straight-set win in a big follow-up to his title exploits in Puerto Princesa and San Carlos (Negros Occidental).

Teaming up with Ronard Joven, Arcilla completed a sweep in the weeklong event, sponsored by Palawan Pawnshop-Palawan Express Pera Pada la (PPS-PEPP), Rep. Jack Duavit, BHTC president Allan del Castillo, Ret. PNP Dir. Gen. Oscar Calderon, Ret. Gen. Louizo Ticman and Selective Security Services, claiming the doubles crown on a 6-4, 6-0 victory over Kinaadman and Jose Maria Pague last Friday.

The durable Arcilla, who foiled No. 3 Vicente Anasta, 6-1, 1-6, 6-2, in the semis, also broke Kinaadman in the seventh game of the first set in shutout fashion while holding serve four times to seize control of the title clash in the event presented by Dunlop.

AL RAYYAN, Qatar— Lionel Messi was pushed into the middle of a joyous post-match huddle as Argentina’s players jumped up and down to celebrate reaching the World Cup quarterfinals.

Messi delivered again for his country, marking the 1,000th game of his era-defining career with his first goal in the knockout stage of a World Cup to lead Argentina to a 2-1 win over Australia on Saturday.

Th is was not the walkover most were expecting against the unheralded Australians, though.

At the final whistle, Argentina was just as grateful for its goalkeeper as the No. 10 with magic in his boots.

Emi Martinez came up with a sprawling save in the last seconds of an increasingly anxious match to prevent the need for extra time and the potential of another shock in a World Cup full of them.

That is the World Cup for you,” Messi said. “All the matches are difficult and what’s important is that you win.”

W ith a flourish of his famous left foot in the 35th minute, Messi put Argentina ahead with his third goal at this year’s tournament and ninth in total at the World Cup—one more than Diego Maradona.

Wow, he’s just remarkable,” Australia coach Graham Arnold said.

Julián Álvarez pounced on a heavy touch by Australia goalkeeper Mathew Ryan to tap into an empty net for the second goal, but this was no cruise to a quarterfinal meeting with the Netherlands.

A ustralia’s fightback in the final 20 minutes was as stirring as it was unexpected. Craig Goodwin’s shot deflected into the net off Argentina midfielder Enzo Fernandez in the 77th. Then, amid a late aerial bombardment from the Australians, Garang Kuol had a dramatic chance

MESSI WITH A FLOURISH

when he was left free at the far post. Shooting on the turn, his effort was smothered by Martinez and two Argentina players fell on top of their goalkeeper in relief as much as happiness.

Before we came here, people were saying we were the worst team at the World Cup and the worst Socceroos team ever,” Arnold said. “That’s gone now.”

O n the only other occasion Australia reached the last 16—in 2006—the team lost to eventual champion Italy.

Maybe it’s an omen for Argentina, which has fully recovered from its shocking loss to Saudi Arabia in its opening group match and won three straight games.

A s for Messi, he now has 789 goals in a career that might yet reach a crescendo on December 18 by winning soccer’s biggest trophy in his fifth and likely last World Cup.

T he dream is still alive for the seven-time world player of the year and the tens of thousands of Argentina fans who dominated the Ahmad Bin Ali Stadium, massively outnumbering the small pockets of green-and-gold-clad Australia supporters to make it feel like a match in Buenos Aires or Rosario.

A rgentina’s players linked arms and formed a long line to celebrate in front of their scarf-waving fans

at one of end of the stadium after the game.

“ The whole of Argentina would like to be here, but it’s not possible,” Messi said. “This bond, this union we have, it’s beautiful.”

Messi had been quiet before his goal, crowded out by a compact and defensively solid Australia team. He’s never quiet for long, though.

He sent a pass inside to the edge of the area and kept running, eventually receiving a lay-off from Nicolas Otamendi to take one touch and stroke his finish through the long legs of Australia defender Harry Souttar—the tallest outfield player at the World Cup.

W hen Alvarez added the second to score in successive games, Australia looked out of it and Messi began to put on a show.

O ne 40-meter dribble wowed the crowd as he slalomed past three defenders and was tackled just as he was about to shoot.

MESSI! MESSI!” came the chant. Messi used his control and vision to set up two opportunities in the frantic finale—one being curled over the crossbar by Martinez—before Australia came on strong after putting Souttar up front in stoppage time for his aerial threat.

We gave it everything,” Australia striker Jackson Irvine said through tears, “but it wasn’t enough.” AP

6 teams lead hunt in Fil-Am regular tilt

SIX teams teeming with equal talent and skills joined the Fil-Championship division to add excitement to the chase for the premier title in the 72nd Fil-Am Men’s Invitational’s at the Baguio Country Club and Camp John Hay Golf Club courses in Baguio City Manila Southwoods will parade a formidable cast of national team members Carl Corpuz, Kristoffer Arevalo and Aidric Chan and, together with Gabriel Manotoc and Jeff Jung, the Carmona (Cavite)based squad is the clear favorite to defend the crown.

Foreign teams start arriving for beach pro tour  in Subic

ATWO-ATHLETE squad from Latvia arrived on Sunday and joined Team Singapore as early birds for the Volleyball World Beach Pro Tour Futures which opens with the qualification round on Thursday at the Subic Bay Sand Court.

M artins Plavins and Mihails Samoilovs set foot in Subic and

were expected to try the Subic courts later in the day with the Singaporeans also beefing up their preparations for exhibition matches against the Philippine teams on Monday.

Two teams each from Japan and Australia and one from the Czech Republic are due on Monday, as well

“ Speed of thought and the importance of being tactically aware” was reinforced much later in my adult life while covering the Ateneo men’s football team under its former coach Ompong Merida.

Watching the United States bundled out by a clinical Netherlands Sunday morning in the round of 16 of the FIFA World Cup in Qatar, I recalled that lesson.

For the Dutch’s first goal, forward Cody Gakpo raced up the middle of the field with midfielder Denzel Dumfries racing up to the final third. Gakpo found Dumfries who immediately lashed the ball into the just close to the edge of the box where Memphis Depay raced in—unmarked I should point out—from side footed it home.

Painful lesson in tactical awareness

AS I grew older playing football, one of the things that was hardwired into my brain by my first coach—the late Spanish Basque Bro. Jesus Oscariz—was to think and not just kick the ball.

D uring my grade school days at the Ateneo, I was a free kick specialist with long bombs that would find the back of the net. He taught me to make reads on how players liked to move or pass the ball. Or where they positioned themselves.

The US had five defenders inside the box—Antonee Robinson who was marking Dumfries, midfielder Weston McKennie who was close to Gakpo, defender Tim ream and Walker Zimmerman who covered Davy Klassen deep inside the box, and Sergiño Dest and Yunus Musah who doubledteamed Marten de Roon.

M idfielder Tyler Adams was not running back with any sense of urgency and he was right behind Depay. He should have covered Depay and it led to the first goal by the Netherlands.

For the Dutch’s second goal, it was Klassen, just outside the right side of the box, who once more found Dumfries who was confronted by Adams. Dumfries found a cutting Daley Blind who came from behind Dest and he struck it home.

as technical officials from the Asian Volleyball Confederation (AVC) and International Volleyball Federation led by technical delegate Barry Wedmaier of Australia.

Twelve athletes each from Thailand and Japan are expected on Tuesday for the Futures tournament supported by the Philippine Sports

The Januarius Team may be a newcomer but Raymund Sangil, Marco Olives, RJ Rizada, Terence Macatangay and Kirby Lachica have had numerous FilAm experiences making the squad, captained by Paolo Cagalingan, a strong contender.

Forest Hills is another team with potential with its mix of young and veteran golfers including Edison Tabalin and long-hitteer Joshua Buenaventura, as well as Gus Pachieco, Iñigo Raymundo and Jose Rodelio Mangulabnan.

A fter leading Southwoods to the Seniors title, Jun Jun Plana is playing again in the regular tournament for Time Cargo Logistics, the defending Am-Championship titlist.

Commission, PLDT Home and Rebisco and also backed by Akari, F2 Logistics, Asics, Subic Bay Metropolitan Authority, Philippine Olympic Committee, Smart Giga Play, Cignal Play, OneSports, OneSports+, Senoh and Mikasa.

It will be a busy start of the week as the teams arriving in bulk,” said Ramon “Tats” Suzara, president of the organizing Philippine National Volleyball Federation.

The third goal saw Blind cross the ball to an unmarked Dumfries who just knocked the ball in. Blind knew where to place the ball. Dumfries raised his right arm to signify that he was unmarked.

I n my opinion, Robinson should have marked Dumfries. Instead, he packed the front of the goal with Ream and Zimmerman.

Th at kind of abysmal defending is not going to help.

O n defense, a defender prioritizes his space or zone. One should really be aware of who is around them so they can make those decisions. Granted the game is played at a fast pace, hence, making good reads.

I n my opinion, Dest and Robinson were not aware of the danger lurking behind them. And now, they have paid the price.

They are going home.

Football is all about exploiting mistakes. Australian defender Aziz Behich playing a bit to the wings made a back pass to defender Kye Rowles who was being harassed by Julian Alvarez. So Ryan sent the ball to keeper Mathew Ryan. The problem was Argentine Rodrigo de Paul was lurking nearby.

Ryan’s first touch was poor and now under duress, he lost the ball and Alvarez, who joined the trap, scored the goal that sent Argentina to the quarterfinals.

T here was nothing Australia could do when a genius like Lionel Messi nutmegs Mitchell Duke (a forward

By Josef Ramos

FINA withdrew its recognition of officers and board members of the Philippine Swimming Inc. (PSI) and created a stabilization committee that run the association’s day-to-day operations on the way to amending its by-laws and conducting new elections.

FINA (Federation Internationale de Natation) directive dated December 3 was signed by it’s executive director Brent Nowicki and was e-mailed to PSI president Ma. Lailani “Lani” Velasco and sent copies to the Philippine Olympic Committee (POC) and the Philippine Sports Commission furnished with e-mailed copies.

The directive is effective immediately.

The FINA Bureau discussed various complaints received by the FINA Office concerning matters of inter alia poor governance principles within your National Federation,” the FINA memo said.

“For this reason, and as a matter of last resort, the FINA Bureau has confirmed the implementation of a Stabilization Committee, as set out in C 10.6 of the FINA Constitution.”

Article C 10.6 of the FINA Constitution states that “The Bureau may under exceptional circumstances appoint a stabilization committee to the extent the executive body of a member fails to adhere to practices of good governance, transparency, financial accountability and stability, participation in FINA events, or puts at risk the organi[s]ation and development of Aquatics in their country.”

F INA named POC legal head Atty. Wharton Chan and deputy secretary general Valeriano “Bones” Floro and Bases Conversion and Development Authority senior vice president Arrey Perez as members of the stabilization committee.

The FINA decision stemmed from various complaints it received from stakeholders in Philippine swimming, including one from a parent whose swimmer-daughter won gold at the Hanoi Southeast Asian Games last May but was excluded from the national team to the Budapest world championships last June.

T he PSI has already agreed to a FINA directive in 2018 to amend its by-laws but didn’t heed the international federation (IF). The IF reiterated the same directive after the PSI conducted its elections last April but got the same negative response.

helping out on defense) for the first goal. But remember, Australia equalized following an own goal by Enzo Fernandez. So that error was a killer.

B ehich should have played the ball to a teammate who was in the middle of the pitch. Instead, a poor decision in the back pass led to the goal.

I a m not a fan of excessive back passing. I think that invites trouble. It should be tactical. But watching the World Cup, you see a lot of needless back passing when they should go forward and send the defense on the back pedal.

Players should be aware of everything in front and to the back. At all times too.

I remember being privileged to watch a silent drill by Fabio Capello with Real Madrid where the players moved as one upfield and downfield looking at where the ball was going on defense and offense. There was no speaking, only hand signals and eye contact. Capello’s reasoning was during games, you cannot hear your teammates so being tactically aware, hand signals and eye contact was the means of communication.

Football may sound like a simple sport but really, there are so many nuances that make it interesting and challenging. Not to mention fraught with danger.

L et’s see how the rest of the World Cup goes.

T he 2022 FIFA Qatar World Cup can be viewed on World Cup TV on Skycable as well as the TapGo TV streaming application.

OLYMPIC champion Hidilyn Diaz-Naranjo (third from left) with (from left) husband and coach Julius Naranjo, assistant trainer Rowell Garcia, sports psychologist Dr. Karen Trinidad and sports nutritionist Jeaneth Aro.

THE Januarius Team prides itself as one of the favorites in the regular tournament. Its Team A is composed of RJ Rizada, Paolo Cagalingan, Ray Sangil, Kirby Lachica, Terence Macatangay, and Ivan Avena, while its Team B is made up of Blair Carabuena, Jake Ong, Jett Manuel, Noel Estrella, Jens Knuttle, and JJ Atencio. Coaches are Gerald Rosales and Kevin Lachica. The teams are powered by Januarius Holdings, GolfX, Greyson Golf and STATS Apparel.

THE dream is still alive for the seven-time world player of the year Lionel Messi. AP

FINA withdraws recognition of PSI board, establishes stabilization body

ARCILLA